Facebook Instagram Linkedin X Youtube
Home Blog Page 125

Iran threatens to retaliate against Gulf energy and water after Trump ultimatum

Smoke rises after reported Iranian missile attacks, following strikes by the United States and Israel against Iran, in Manama, Bahrain, February 28, 2026. — REUTERS/STRINGER TPX IMAGES OF THE DAY

TEL AVIV/JERUSALEM/WASHINGTON — Iran warned it would strike energy and water infrastructure across the Gulf if US President Donald J. Trump follows through on his threat to attack its electricity grid, raising fears of mass disruption in a region heavily dependent on desalination for drinking water.

Mr. Trump set a Monday deadline of around 7:45 p.m. EDT (2345 GMT), warning late on Saturday that the United States would strike Iran’s power plants unless Tehran fully reopened the Strait of Hormuz within 48 hours.

The prospect of tit-for-tat strikes on civilian infrastructure further unsettled oil markets, with prices opening choppy in Asia trading.

After more than three weeks of heavy US and Israeli bombardment that officials say has sharply reduced Iran’s missile capabilities, Tehran has continued to demonstrate its ability to strike back.

Air raid sirens sounded across parts of northern and central Israel, including in Tel Aviv, and the occupied West Bank overnight on Sunday, warning of incoming missiles from Iran.

The Israeli military said early on Monday it had begun a wide-scale wave of strikes targeting Iranian infrastructure in Tehran.

Iranian news agencies said at least one child was killed and several people were injured in the bombing of a residential area in western Khorramabad city.

A residential neighborhood in the northwestern city of Urmia was damaged by an airstrike, Iranian news agencies reported. Iranian Red Crescent rescuers were shown in a video searching for survivors. There were no immediate reports of casualties.

Mr. Trump’s warning came less than a day after he signaled the United States might be considering winding down the conflict, even as US Marines and heavy landing craft were heading to the region.

“If Iran’s fuel and energy infrastructure is attacked by the enemy, all energy infrastructure, as well as information technology…and water desalination facilities, belonging to the US and the regime in the region will be targeted pursuant to previous warnings,” Iranian military spokesman Ebrahim Zolfaqari said, according to state media.

While attacks on electricity could hurt Iran, they could be catastrophic for its Gulf neighbors, which consume around five times as much power per capita.

Electricity makes their gleaming desert cities habitable, in part by powering the desalination plants that produce 100% of the water consumed in Bahrain and Qatar. Such plants use seawater to meet more than 80% of drinking water needs in the United Arab Emirates, and 50% of the water supply in Saudi Arabia.

Iran’s Parliament Speaker Mohammad Baqer Qalibaf doubled down, writing on X that critical infrastructure and energy facilities in the Middle East could be “irreversibly destroyed” should Iranian power plants be attacked.

Iran’s powerful Revolutionary Guards said it would also mean the shipping lane where a fifth of global oil and liquefied natural gas normally transits along Iran’s southern coast would remain shut.

“The Strait of Hormuz will be completely closed and will not be opened until our destroyed power plants are rebuilt,” the Guards said in a statement.

The Saudi defense ministry said early on Monday two ballistic missiles had been launched towards Riyadh. One missile was intercepted while the other fell into an uninhabited area.

On Sunday, Iranian strikes on two southern Israeli towns injured dozens in what an Israeli hospital described as a major casualty event. The towns were located close to Israel’s secretive nuclear reactor and a number of military installations, including Nevatim Air Base, one of the country’s largest.

More than 2,000 people have been killed during the war the US and Israel launched on Feb. 28, which has upended markets, spiked fuel costs, fueled global inflation fears and convulsed the postwar Western alliance.

‘TICKING TIME BOMB OF ELEVATED UNCERTAINTY’
“President Trump’s threat has now placed a 48-hour ticking time bomb of elevated uncertainty over markets,” said IG market analyst Tony Sycamore, who expects stock markets to fall when they reopen on Monday.

Iranian attacks have effectively closed the Strait of Hormuz, causing the worst oil crisis since the 1970s. Its near-closure sent European gas prices surging as much as 35% last week.

“If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!” Mr. Trump posted on social media around 7:45 p.m. EDT (2345 GMT) on Saturday.

Iranian media quoted the country’s representative to the International Maritime Organization as saying the Strait remains open to all shipping except vessels linked to “Iran’s enemies.”

Ali Mousavi said passage through the waterway was possible by coordinating security and safety arrangements with Tehran.

Ship-tracking data show some vessels, such as Indian-flagged ships and a Pakistani oil tanker, have negotiated safe passage through the strait.

‘WEEKS MORE FIGHTING’
The war has been taking place alongside a confrontation on a separate front between Israel and Lebanon’s Hezbollah, backed by Iran.

Israel said on Sunday its troops had raided a number of the armed group’s sites in southern Lebanon.

Israeli military spokesperson Brigadier General Effie Defrin told reporters Israel expects “weeks more of fighting against Iran and Hezbollah.”

Hezbollah said it had attacked several border areas in northern Israel. Israeli emergency services said one person was killed in a kibbutz near the border. Israel later said it was checking whether the death was caused by Israeli fire.

Hezbollah has fired hundreds of rockets at Israel since it entered the regional war on March 2, prompting an Israeli offensive that has killed more than 1,000 people in Lebanon. — Reuters

IEA discussing further oil stock releases, chief Birol says

Tankers sail in the Gulf, near the Strait of Hormuz, as seen from northern Ras al-Khaimah, near the border with Oman’s Musandam governance, amid the US-Israeli conflict with Iran, in United Arab Emirates, March 11, 2026. — REUTERS

PERTH/SYDNEY — The International Energy Agency (IEA) is consulting with governments in Asia and Europe on the release of more stockpiled oil “if necessary” due to the Iran war, Executive Director Fatih Birol said on Monday.

“If it is necessary, of course, we will do it. We look at the conditions, we will analyze, assess the markets and discuss with our member countries,” Mr. Birol told the National Press Club in Canberra, at the start of a world tour.

IEA member nations agreed on March 11 to release a record of 400 million barrels of oil from strategic stockpiles to combat the spike in global crude prices. The drawdown represented 20% of overall stocks.

There would not be a specific crude price level to trigger another release, Mr. Birol said.

“A stock release will help to comfort the markets, but this is not the solution. It will only help to reduce the pain in the economy.”

The IEA chief began his world tour in Canberra as the Asia-Pacific is at the forefront of the oil crisis, he said, given its reliance on oil and other crucial products like fertilizer and helium transiting the Strait of Hormuz.

After meeting Australian Prime Minister Anthony Albanese, Mr. Birol will travel to Japan later this week before a Group of Seven meeting.

He described the crisis in the Middle East as “very severe” and worse than the two oil shocks of the 1970s, as well as the impact of the Russia-Ukraine war on gas, put together.

The war on Iran had taken 11 million barrels of oil per day from global supply, more than the two prior oil shocks combined.

“The single most important solution to this problem is opening the Hormuz Strait,” he said.

“The depth of the problem was not well appreciated by the decision makers around the world,” he said of his decision to begin speaking publicly three weeks into the war.

Stockpile drawdowns are only a portion of what the IEA could do, he said.

Measures outlined by the IEA, such as lowering speed limits or implementing work from home measures, had reduced energy use when implemented in Europe in 2022, but each nation would need to decide how best to enact fuel savings, Mr. Birol said.

He said that while Australia’s liquid fuel holdings were lower than IEA regulations, the current government had done much to improve them and that 30 days of diesel was a “solid number.” — Reuters

North Korea’s Kim Jong Un reappointed as president of state affairs, KCNA says

KCNA VIA REUTERS

SEOUL — North Korean leader Kim Jong Un was reappointed as president of state affairs, state media KCNA reported on Monday, after the isolated nation convened the first session of its Supreme People’s Assembly a day earlier.

The meeting in Pyongyang will discuss amendments and supplements to the socialist constitution, as well as the election of the chairman of the State Affairs Commission and other state leadership bodies.

The assembly, North Korea’s rubber stamp legislature that formally approves state policy, typically meets following a ruling Workers’ Party Congress to turn party decisions into law.

The meeting will also review the country’s economic five-year plan announced at the ninth party congress held in February, KCNA said.

Attention has been focused on whether Pyongyang will revise its constitution to formalize leader Mr. Kim’s “two hostile states” policy toward South Korea.

In recent years, Mr. Kim has abandoned Pyongyang’s longstanding goal of peaceful reunification and redefined the South as a hostile state.

Mr. Kim’s powerful sister, Kim Yo Jong, was notably absent from KCNA’s list of members of the State Affairs Commission, the country’s highest leadership body, on which she had served since 2021.

South Korea’s unification ministry said it was looking into why she was no longer listed, but analysts said the move did not necessarily signal a loss of influence.

“Her absence suggests not a decline in status but a strategic division of roles,” said Lim Eul-chul, a professor at Kyungnam University, adding that the younger Ms. Kim continues to wield real power as a department director in the ruling Workers’ Party, where she may play a higher-level, party-centered role coordinating policy. — Reuters

Vietnam Communist Party meets, with new state leaders set to be nominated

MATT W NEWMAN-UNSPLASH

HANOI — Vietnam’s ruling Communist Party started a week-long meeting on Monday that is set to make key state and government personnel decisions, the government said.

The plenum is widely expected to nominate the country’s top leadership posts for the next five years, including prime minister, state president and National Assembly chair. Party chief To Lam is widely expected to be nominated as state president, holding two posts.

“The plenum will review personnel matters for leadership positions in state agencies for the 2026–2031 term,” Mr. Lam said in his opening speech, according to a government statement.

It is unclear if the party will announce the nominees by the end of the meeting, which is scheduled to last until Friday. Parliament will need to confirm the nominees at a plenary session that starts on April 6.

The party’s anti-corruption drive and Vietnam’s socio-economic development plans for the 2026–2031 period will also be discussed at the meeting, the statement said.

“These issues are particularly important and of fundamental significance… as they directly relate to the quality of leadership and governance, as well as the country’s fast and sustainable development,” Mr. Lam said.

Vietnam targets economic growth of over 10% a year during the 2026-2030 period, and Mr. Lam said the urgent tasks for the country were to cope with the impacts of wars and conflicts and a possible global economic crisis.

“The global and regional situation continues to change very rapidly, very strongly, and is very difficult to predict,” Mr. Lam said.

Strategic competition among major powers is becoming increasingly fierce, he added, while conflicts over geopolitics, geoeconomics, technology, energy, supply chains, data, and markets are profoundly changing the development environment of nations.

Vietnam has faced surging fuel prices since the US-Israel war on Iran, with gasoline prices up 50% and diesel prices rising 70%. — Reuters

London Jewish community ambulances set ablaze in suspected hate crime, police say

REUTERS

LONDON — Four ambulances belonging to a Jewish community organization in north London were set ablaze overnight in a suspected antisemitic hate crime, police said on Monday,

“An investigation has been launched after four ambulances belonging to the Jewish Community Ambulance service were set on fire in Golders Green,” Metropolitan Police said in a statement.

“Officers remain on scene and the arson attack is being treated as an antisemitic hate crime,” it said, adding that no injuries had been reported.

The ambulances belonged to Hatzola, a not-for-profit volunteer organization that responds to medical emergencies.

The London Fire Brigade said it had sent six fire engines and 40 firefighters to the scene. Calls from residents were recorded at 0140 GMT.

“Multiple cylinders on the vehicles exploded and caused windows to break in an adjacent block of flats. No injuries are reported.”

The London Fire Brigade said the fire was under control by 0306 GMT.

Health Secretary Wes Streeting called the attack “sickening” in a post on X, adding that “we must stand together against antisemitic hatred.”

Attacks against Jews and Jewish targets have risen worldwide since the October 2023 Hamas attacks in Israel that triggered the Gaza war.

Mark Gardner, chief executive of the Community Security Trust, which advises Britain’s estimated 290,000 Jews on security matters, said there was an “obvious parallel to similar recent anti-Jewish arson attacks in Liege, Rotterdam, and Amsterdam.”

Since the conflict, Britain has recorded significantly higher levels of antisemitic hate.

The most severe antisemitic incident in Britain last year was the Manchester attack that killed two Jewish worshippers during Yom Kippur, the holiest day in the Jewish calendar. — Reuters

Pilot, co-pilot killed after passenger jet hits ground fire truck at New York’s LaGuardia airport

STOCK PHOTO | Image by skipp604 from Pixabay

NEW YORK — The pilot and co-pilot of an Air Canada Express regional jet were killed after it collided with a fire truck while landing at New York’s LaGuardia airport late on Sunday, in an incident that closed the airport, authorities and US media said.

NBC News, which reported the deaths, said dozens others were injured in the incident.

The news channel said that the fire truck was manned by police officers, citing sources. It had earlier said a sergeant and an officer had broken limbs and were in stable condition at a hospital.

The Air Canada Express CRJ-900 plane, operated by its partner Jazz Aviation, was carrying 72 passengers and four crew members from Montreal, based on a preliminary passenger list that remained subject to confirmation. Jazz is owned by Chorus Aviation.

The aircraft struck the fire vehicle at a speed of about 39 kilometers per hour  (24 miles per hour), said flight tracking website Flightradar24, which last recorded data at 11:37 p.m. ET (0337 GMT).

Photos taken by Reuters after the accident showed visible damage to the nose of the plane, which was tilted upward.

Authorities and emergency agencies did not offer any immediate comments on deaths or injuries.

The US Federal Aviation Administration (FAA) said the airport was expected to remain shut until 2 p.m. ET on Monday (1800 GMT). Flightradar24 said 18 flights had been diverted to other airports, mostly in the New York area, or returned to their point of origin.

Air Canada referred Reuters to Jazz’s statement and said it was aware of the incident. The National Transportation Safety Board and the FAA did not immediately respond to requests for comment.

The Port Authority of New York and New Jersey said the firefighting vehicle was responding to a separate incident when it was struck by the aircraft at the airport’s Runway 4.

New York City’s emergency notification system said people could expect cancellations, road closures, traffic delays, and emergency personnel near the airport.

LaGuardia served over 30 million annual passengers in 2025, according to the Port Authority of New York and New Jersey, and a wide range of US airlines operate at the airport. — Reuters

On Filipinos’ changing attitudes about retirement

AI-GENERATED IMAGE VIA MICROSOFT COPILOT

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor, BusinessWorld

For many Filipinos, retirement planning is shaped less by financial products and more by social expectations. The country’s strong family culture has traditionally meant that aging parents could rely on their children or extended relatives for support in later life.

Formal retirement planning often takes a secondary role, with many workers depending primarily on state pensions such as those provided by the Social Security System (SSS) and the Government Service Insurance System (GSIS), supplemented by whatever personal savings they could set aside during their working years.

“Traditionally, many Filipinos expect their children or extended family to support them in old age, reflecting strong family-oriented culture,” said Trust Officers Association of the Philippines (TOAP) Investor Relations & Education Director Patricia Lei S. Alvarillo, who is also First Vice-President and Head of the Retail Accounts Department at BDO Unibank’s Trust and Investments Group.

But that model is gradually shifting. Rising living costs, longer life expectancies, and economic shocks in recent years have pushed more Filipinos to reconsider how they prepare for retirement. Increasingly, workers—particularly among the middle class and younger generations—are seeking their own paths toward financial independence.

“More Filipinos now want financial independence in retirement to avoid becoming a burden to their children.  This represents a cultural shift toward individual financial responsibility, especially among middle-class and younger workers,” Ms. Alvarillo noted.

Indeed, a growing number of Filipinos today are showing growing confidence in saving and making early financial decisions, in part due to the rise in accessibility of digital banks in the country.

According to a survey by the Digital Bank Association of the Philippines (DiBA PH), the country rose to 62 this year from 56 in 2024 on the Financial Health Index, which measures the four key areas of financial wellness—that is, financial proficiency, behavior, security, and freedom. This has moved the country into the “good” range of the index, from a previous “low”.

Pressfoto | FREEPIK

Financial confidence among Filipinos has risen along with it, as more Filipinos now report having emergency savings, with 73% saying they have money set aside. Most respondents, however, said their savings would last only up to one month.

Sun Life Asia’s latest Financial Resilience Index echoed similar results, showing increased short-term confidence among Filipinos, despite persistent challenges in long-term planning and resilience. The study found that 66% of Filipinos feel financially secure at present, jumping from the previously recorded 45%. Furthermore, confidence in managing monthly finances also rose from 57% to 69%, suggesting improved short-term financial resilience.

Looking long-term, however, confidence dipped, with only 64% feeling capable of meeting future goals, down from 72%. According to the survey, one in three Filipinos say that, in case of income loss or illness, they would not be able to sustain themselves for more than three months without external support. This vulnerability is more pronounced in younger respondents based in rural areas, as the demographic has limited emergency savings and lower access to financial tools.

Security seems to be the main issue on Filipinos’ minds. A separate survey conducted by Metropolitan Bank & Trust Co. found that 21% of 1,200 respondents save mainly to build an emergency fund or prepare for future needs. In Metro Manila, 23% of Filipinos say financial stability is their top concern.

Ms. Alvarillo attributed this behavioral shift to significant shocks like the pandemic, which reshaped how many Filipinos thought about money, savings, and retirement.

“It acted as a financial ‘wake-up call’ changing behavior in both short-term survival decisions and long-term financial planning.  Some Filipinos realized that they need to keep some liquid assets for emergency purposes,” she said.

Filipino Gen Z in particular are approaching money differently from their elders, with habits reshaped by technology, rising living costs, and exposure to global financial trends.

Organizations such as TOAP are playing an increasingly visible role in strengthening retirement planning in the country. Trust officers and fiduciaries serve as professional stewards of client assets, managing pension funds, investment portfolios, and retirement accounts in accordance with strict fiduciary standards.

Their work often involves designing diversified portfolios that combine traditional bank deposits with investment instruments such as bonds, equities, and managed funds, calibrated to a client’s time horizon and risk tolerance.

These services are especially important in a context where many workers are recognizing that state pension systems like the SSS and the GSIS may not be sufficient on their own to sustain retirement needs, as Ms. Alvarillo points out.

“Many Filipinos still hold misconceptions about retirement planning, which often leads to insufficient preparation for old age.  These misconceptions are usually shaped by culture, optimism about future income, or lack of financial planning,” she said.

Trust entities work closely with the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission to strengthen governance frameworks while modernizing financial services. These efforts include improving digital onboarding and administration for retirement products such as the Personal Equity and Retirement Account (PERA), which allows Filipinos to build tax-advantaged retirement savings through professionally managed investment options.

“The financial literacy provided by various trust entities and the BSP is actually helpful in addressing these gaps,” Ms. Alvarillo noted.

As Filipinos increasingly seek financial independence in later life, the trust industry’s role as both asset manager and financial educator is becoming central to building a more resilient retirement landscape.

This article appears on the latest BusinessWorld In-Depth’s special edition with the Trust Officers Association of the Philippines for Trust Consciousness Week. To get your free copy, go to https://bworld-x.com/product/free-beyond-today-a-modern-strategy-for-retirement-planning/.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

PAGASA declares end of Amihan, marks starts of dry season

REUTERS

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) on Monday announced the end of the northeast monsoon, locally known as Amihan, signaling the start of the warm and dry season.

“The shift in wind direction from northeasterly to easterly, caused by the formation of a High Pressure Area (HPA) over the northwestern Pacific, signifies the end of the northeast monsoon and the beginning of the warm and dry season,” PAGASA said in an official statement.

However, PAGASA noted that some areas in Northern Luzon may still experience occasional northeasterly winds.

“With these developments, the day-to-day weather across the country will generally be fair and gradually warmer, although isolated thunderstorms may still occur,” it added.

The state weather bureau said it will continue to closely monitor the country’s weather and climate conditions and their potential impacts. — Edg Adrian A. Eva

Staff absences soar at some US airports as ICE agents prepare to screen travelers

Masked law enforcement officers, including Immigration and Customs Enforcement agents, walk into an immigration court in Phoenix, Arizona, US, May 21, 2025. — REUTERS/CAITLIN O’HARA

Absences among transportation security workers this weekend reached their highest since a partial government shutdown began five weeks ago, the Department of Homeland Security said on Sunday, as immigration enforcement agents prepared to fill in for them at some of the busiest US airports.

Nationwide, about 11.5% of Transportation Security Administration staff were absent on Saturday, DHS said, but that figure soared to 42.4% at George Bush Intercontinental Airport in Houston, 33.4% at John F. Kennedy International Airport in New York and 33.6% at Hartsfield-Jackson Atlanta International Airport.

Overall, more than 9% of TSA employees have been absent from work over the past seven days, leading to lengthy lines for passengers trying to get to their gates, according to DHS.

To help fill the staffing gaps, hundreds of Immigration and Customs Enforcement (ICE) agents will deploy to airports starting on Monday, officials have said.

DHS said on Sunday it would not publicly share details about the ICE deployment, in order to preserve operational security. Sources briefed on the matter said the current plan calls for deploying ICE agents to 14 locations, although that figure may change.

Tens of thousands of airport security personnel have been working without pay for weeks while congressional Democrats and Republicans argue over a budget for DHS.

WORKERS WITHOUT PAY FOR WEEKS
“Many TSA officers cannot pay their rent, buy food, or afford to put gas in their cars — forcing them to call out sick from work,” a DHS spokesperson said on Sunday.

Mr. Trump announced on Saturday that ICE agents would be sent to airports unless Democratic lawmakers agree to fund DHS. Democrats have criticized the department’s immigration operations, which have killed US citizens and sparked public outrage, and are demanding a change in rules.

For now, ICE agents will not be deployed in areas behind security checkpoints because they lack the specific clearance needed, the sources said.

Border czar Tom Homan said on Sunday that sending out immigration agents to bolster short-staffed TSA teams will speed up airport lines, but the union for TSA workers said that does not solve what they see as the underlying problem of pay.

HOMAN, DUFFY DEFEND ICE AIRPORT DEPLOYMENT
In appearances on Sunday news shows, Homan and Transportation Secretary Sean Duffy argued that ICE personnel can help with airport security screening, starting on Monday, even though they have not been specifically trained for it.

“When we deploy tomorrow, we’ll have a well thought-out plan to execute,” Mr. Homan said on CNN’s “State of the Union” program.

Hundreds of TSA agents have simply resigned, according to their labor union and TSA.

“ICE will do the job far better than ever done before!” Mr. Trump wrote in a Sunday morning social media post.

Details of how ICE agents would help with the lines were scant, although Mr. Homan told CNN a plan would be in place by the end of the day “to move those lines along.”

Mr. Homan and Mr. Duffy, in separate interviews, had different ideas about how the ICE agents might be deployed. Mr. Homan said he doubted ICE agents would operate X-ray baggage and passenger screening machines because they did not have experience. Mr. Duffy, in contrast, said ICE agents “know how to pat people down, they know how to run the X-ray machines.”

TSA WORKERS’ UNION OBJECTS TO REPLACEMENT PLAN
The labor union representing TSA workers criticized Mr. Trump’s decision, saying their members spend months in training learning to detect explosives and weapons.

“Our members at TSA have been showing up every day, without a paycheck, because they believe in the mission of keeping the flying public safe,” Everett Kelley, National President of the American Federation of Government Employees, said in a statement. “They deserve to be paid, not replaced by untrained, armed agents who have shown how dangerous they can be.”

Unlike TSA employees, ICE agents have continued to get paid by the government through a separate funding provision while lawmakers debate whether ICE funding should be tied to new rules and procedures.

Democrats have said new rules are needed after masked ICE agents fatally shot two US citizens in the streets of Minneapolis earlier this year. The two had come out to protest or observe Mr. Trump’s unprecedented deportation surge in Minnesota.

Hakeem Jeffries, a New York Democrat and the minority leader in the US House of Representatives, told CNN that his caucus is open to a separate funding agreement for TSA employees while lawmakers debate measures to “get ICE under control.” But there has been little movement on an actual deal so far, especially in the Senate.

“We have an obligation to not fund an agency that is acting this lawlessly,” Senator Chris Murphy, a Connecticut Democrat, told NBC’s “Meet the Press” program. — Reuters

French far right’s mixed local elections results offer mainstream rivals hope

FRENCH PRESIDENT EMMANUEL MACRON — REUTERS

PARIS/MARSEILLE — France’s far-right National Rally (RN) failed to win the cities of Marseille and Toulon which they had hoped to claim in Sunday’s municipal votes, a setback that gave hope to embattled mainstream parties ahead of next year’s presidential election.

In another key battleground, Socialist Party candidate Emmanuel Gregoire won Paris’ mayoral race, beating conservative former minister Rachida Dati and ensuring the French capital remains left-wing.

The municipal elections were closely watched across France for clues ahead of the 2027 presidential election, which opinion polls have shown the anti-immigration, euroskeptic RN could win.

The thousands of separate municipal ballots are often focused on very local issues and their outcome does not forecast who will succeed centrist President Emmanuel Macron.

But they show trends in popularity and in the type of alliances that can be struck in an increasingly fragmented political landscape, and senior politicians from all parties were quick to claim Sunday’s outcomewas good news for them.

NEXT STEP: THE PRESIDENTIAL ELECTION
Senior RN officials rejected suggestions the party’s defeat in Toulon showed it had hit a “glass ceiling” ahead of the presidential election, saying it had won dozens of local constituencies where it previously had no presence.

“The National Rally and its candidates have achieved tonight, in this municipal election, the biggest breakthrough in its entire history,” RN chief Jordan Bardella said.

His anti-immigration party won re-election in the southern city of Perpignan in the first round, and won smaller cities, too. Eric Ciotti, a former mainstream conservative who is now an ally of the RN, won in Nice on Sunday, bringing France’s fifth-biggest city under far-right control.

But the RN’s failure to win several other larger cities, and in particular in Marseille, its most coveted prize, may show limits to its growing popularity.

Meanwhile, with wins projected in France’s two biggest cities, the Socialist Party, long weakened nationally, saw reasons for hope.

“Paris will be the heart of the resistance” to any union of the mainstream right and far-right, Socialist winner Gregoire said after he crossed Paris on a bicycle – a nod to the left’s green policies in the French capital.

Senior politicians on the mainstream right said the municipal elections showed they needed to be united to win – especially in next year’s presidential election.

Former Prime Minister Edouard Philippe said he was re-elected mayor in his northern city of Le Havre, in a boost to his hopes of running for president in 2027.

Mr. Philippe, a center-right politician who served as prime minister under the centrist Mr. Macron, said “there were reasons to be hopeful” in the values of France and that the extremes can be beaten.

MARSEILLE, PARIS
In the second-biggest city Marseille, the incumbent, Socialist Mayor Benoit Payan, was re-elected with just under 54% of the votes, according to an Elabe poll for BFM TV. Other polls also showed him winning. He had been neck-and-neck with the RN in the first round, and was boosted after his hard-left rival pulled out of the run-off to prevent a far-right victory.

“This city, which some believed lost, showed its most beautiful face, showed that it was capable of resisting,” said Mr. Payan.

The Socialist Party said it had also beaten Francois Bayrou, a center-right former prime minister of Mr. Macron, in the city of Pau.

The hard-left France Unbowed (LFI) looked set to win in Roubaix, a city of nearly 100,000 in northern France, an Ifop-Fiducial poll for TF1, LCI, and Sud Radio showed, in good news for a party that had so far not focused much on local elections.

“Traditional parties are losing ground,” Manuel Bompard, of LFI, said. — Reuters

BSP may pause in April — Moody’s

BW FILE PHOTO

By Katherine K. Chan, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) may pause at its next meeting rather than immediately reverse its easing cycle amid oil price spikes and the peso’s depreciation, Moody’s Analytics said.   

“I think it is unlikely for the BSP to immediately shift back to a tightening cycle while it is still on an easing path, but the risk of a prudent and prolonged pause has clearly increased,” Moody’s Analytics Assistant Director and Economist Sarah Tan told BusinessWorld in an e-mail.

Ms. Tan noted that the central bank can tolerate temporary oil price spikes, but a sustained uptrend in oil prices potentially driving transport and electricity costs higher would raise the odds of monetary policy tightening. 

“The key issue is whether the rise in oil prices proves temporary or sustained,” she said.

“A short-lived spike is something the BSP can usually look through, but persistently elevated oil prices that push the inflation outlook materially above the BSP’s 2%-4% target range would likely lead to a longer pause, and eventually raise the possibility of a hike if second-round effects begin to appear in transport fares, electricity rates, and inflation expectations.”

This month, the Manila Electric Co. (Meralco) hiked electricity rates by 64.27 centavos per kilowatt-hour (kWh) to P13.8161 per kWh from P13.1734 per kWh in February. This means households consuming an average of 200 kWh monthly will pay about P129 more in their electricity bill.

Meralco said electricity rates may surge further in April as soaring global fuel costs risk pushing coal and gas prices up, which the company uses for its power supply.

BSP Governor Eli M. Remolona, Jr. earlier said they could be forced to hike rates once oil price hits $100 per barrel as it could bring inflation past 4% or the upper end of their target range.

The Monetary Board may consider tightening as early as its April meeting if oil prices stay elevated for long, Finance Secretary Frederick D. Go also said last week.

If realized, the central bank would be raising its policy rate for the first time since October 2023.

The BSP has followed an easing path since August 2024, delivering a cumulative 225-basis-point cut which brought the key interest rate down to an over three-year low of 4.25%.

The threat of Iran’s attacks has kept most ships from getting through the Strait of Hormuz, a vital oil transit point.

On Friday, the price of international benchmark Brent crude climbed 3.26% or $3.54 to a near  four-year high of $112.19 a barrel, Reuters reported.

In a separate report, Nomura Global Markets Research said the ongoing oil crisis could lead to a fuel shortage and eventually weigh on local consumer prices. 

“Headline inflation could surge well above BSP’s 2-4% target and household purchasing power could be further eroded, hurting consumption spending,” Nomura analysts said.

“The country does not maintain strategic oil reserves, so a prolonged conflict could lead to energy supply shortages, which may also be exacerbated by export bans in other sources, particularly China, which accounts for 25% of the Philippines’ refined petroleum imports,” they added. 

The Philippines imports over 90% of its oil supply from the Middle East, making it vulnerable to current energy price and supply shocks.

Nomura said the BSP will likely hike the policy rate aligned with its price stability mandate, but it may opt to hold if the oil-driven inflation uptick ends up short-lived.

“BSP remains orthodox in its inflation-targeting mandate and will hike the policy rate aggressively, adding to growth headwinds,” it said.

“In the positive scenario, we see only a temporary breach of the inflation target, which BSP will likely look through, especially when the output gap remains negative, allowing it to maintain policy settings,” it added.

In an e-mailed response to questions from BusinessWorld, an International Monetary Fund spokesperson said they are currently “assessing the potential impact on the global economy and the region, including the Philippines” of the ongoing oil crisis from the Middle East conflict.

PESO SLUMP
Meanwhile, the peso’s recent slump amid the US-Israeli war on Iran could also push the BSP to stand pat at its April 23 meeting, Moody’s Ms. Tan noted.

“Aside from the inflation risks stemming from the Middle East conflict, which could justify a prudent pause, the peso’s depreciation and the Fed’s decision to stay on hold also support a cautious stance at the next BSP meeting,” she said.

Uncertainties surrounding the war in Iran ignited safe-haven demand for the US dollar, reversing the peso’s short-lived recovery in February as it sank to new record-lows this month.

On Thursday, the peso closed at a new all-time low of P60.10 against the greenback, falling by 58 centavos from its P59.52 finish on Wednesday, Bankers Association of the Philippines data showed.

The BSP has affirmed that it remains present in the foreign exchange (FX) market to prevent sharp movements that could impact inflation, a stance Nomura analysts said the central bank will likely maintain.

“On FX policy, we think BSP has relatively high reserve adequacy and will therefore likely maintain active interventions to stem FX volatility,” Nomura said.

NO STAGFLATION
Meanwhile, Ms. Tan ruled out potential stagflation as inflation is unlikely to remain high for long on expectations of a short-lived oil crisis.

“As for stagflation, this is not our baseline,” she said. “We expect the impact of the Middle East conflict on oil prices to be temporary and do not see it causing a sustained rise in inflation.”

“However, a prolonged supply shock would raise production costs, weaken demand, and push inflation higher. For the Philippines, which imports more than half of its energy requirements, higher global commodity prices remain a significant risk to both growth and price stability,” Ms. Tan added.

Inflation averaged 2.2% as of February, with the monthly figure settling within the central bank’s target band for two straight months.

The Philippine Statistics Authority will release the March inflation report on April 7.

DoE clears limited rollout of Euro II fuels

A barge is seen along the Pasig River in Manila, March 1, 2026. — PHILIPPINE STAR/RYAN BALDEMOR

THE DEPARTMENT of Energy (DoE) is allowing the temporary rollout of Euro II, or fuels that meet an older emission standard with higher sulfur content, for select transport and industrial uses to augment fuel supply.

In a statement on Sunday, the DoE said it has issued a department circular authorizing the “temporary and controlled” introduction of Euro II petroleum products in response to the ongoing conflict in the Middle East, which continue to strain global petroleum markets.

The measure aims to help keep adequate fuel supply, while allowing limited flexibility for sectors that may be affected, the department said.

The DoE said that the rollout is “interim, narrowly targeted, and strictly regulated.”

Under the circular, only in-use vehicle models from 2015 and earlier, traditional jeepneys, industrial applications such as power plants and generators, and the marine and shipping industry are allowed to temporarily use Euro II fuels.

To avoid misuse and ensure product integrity, downstream oil industry players are required to keep Euro II and Euro IV fuels fully segregated across storage, transport, and retail systems.

Fuel companies intending to offer Euro II fuels must also notify the DoE, through the Oil Industry Management Bureau, and identify the retail outlets where such products will be made available.

The DoE said it will conduct random product sampling and testing across downstream oil facilities to ensure compliance.

To keep consumers informed, the circular requires the posting of clear and prominent advisories at fuel stations and other retail outlets offering Euro II products.

The DoE said the measure was adopted following consultations with the oil and automotive industries from March 16-18 to ensure that the policy is technically feasible and operationally manageable.

It clarified that the rollout does not replace the country’s Euro IV fuel standards, which remain in force under existing laws and regulations.

“We are adopting a prudent and temporary measure to help ensure an adequate and accessible fuel supply for sectors that may require limited flexibility during this period,” Energy Secretary Sharon S. Garin said.

Ms. Garin said this measure is subject to strict quality controls, clear notification requirements, and appropriate consumer protection measures.

“Our objective is to uphold fuel supply security while remaining guided by safety, regulatory discipline, and the broader public interest,” she said.

Since 2015, the Philippines has limited the motoring industry to the use of Euro IV fuels, a globally accepted standard that has a significantly lower sulfur content.

The ongoing US-Israeli war against Iran continues to raise supply concerns, which continues to drive prices to historic levels.

Last week, several oil companies implemented another round of double-digit increases in pump prices, pushing diesel costs above P100 per liter.

An industry source earlier said that initial estimates point to another fuel hike this week, extending the recent sharp increases as the war continues to fuel volatility in global energy markets. — Sheldeen Joy Talavera

1...124125126...14,238Page 125 of 14,238
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube