British airstrikes on Yemen

Britain has launched air strikes against Yemen for the first time since Donald Trump re-entered the White House. Royal Air Force (RAF) Typhoon fighter jets, working with the US military, hit a "cluster of buildings".  The US and Britain have been attacking Yemen in response to strikes carried out on shipping in the Red Sea since November 2023. Yemen warned, Britain should "anticipate the consequences of its aggression".

These are the first RAF air strikes on Yemeni targets approved by British government and the first direct participation in US-led strikes since President Donald Trump came to power.

Defence Secretary John Healy said the strikes were successful and carried out to protect British and international shipping.

"A 55% drop in shipping through the Red Sea has already cost billions, fuelling regional instability and risking economic security for families in the UK," Healy said in a statement.

The MoD said the strikes were conducted after it identified a drone production facility located around 15 miles south of Yemeni capital Saana.

It said the attacks were carried out using "precision-guided bombs" after "very careful planning" to hit targets "with minimal risk to civilians or non-military infrastructure".

The strikes were carried out at night "when the likelihood of any civilians being in the area was reduced yet further", the MoD added.

The US military has been carrying out hundreds of attacks on Yemen in recent weeks - claiming to have killed thousands of fighters, as well as leaders of the group and commanders overseeing drone and missile production.

On Monday, Yemen reported at least 68 African migrants were killed in a US air strike in north-western Yemen.

Since November 2023, Houthis have targeted dozens of merchant vessels with missiles, drones and small boat attacks in the Red Sea and the Gulf of Aden. They have sunk two vessels, seized a third, and killed four crew members.

The Houthis are acting in support of the Palestinians in the war between Israel and Hamas in Gaza, and have claimed that they are targeting ships only linked to Israel, the US and Britain.

The Houthis were not deterred by the deployment of Western warships in the Red Sea and Gulf of Aden to protect merchant vessels last year, or by multiple rounds of US strikes on military targets ordered by former President Joe Biden.

In response to the most recent strikes, the Houthi authorities said the UK-US attacks were in "support Israel's war and genocide in Gaza".

It added, "no matter the challenges" the group will resist the "trio of evil" — the US, Britain and Israel — and their allies.

In March, President Donald Trump ordered an intensification of the US bombing campaign last month in response to Houthi attacks on Red Sea shipping and Israel linked to the Gaza war.

The Trump administration says it is stepping up its attacks on the Houthis. The US now has two aircraft carriers in the region.

US Defence Secretary Pete Hegseth recently criticized European countries' response to Houthi attacks.

In a recent leaked Signal chat with other senior officials, and giving details of planned US strikes, Hegseth referred to Europe as "freeloaders" and called their response "pathetic".

Trump’s First 100 Days: Good, Bad, and Ugly

I posted my review of first 100 says of Donald Trump as President of United States. Many may have ignored it knowing that I am not a US citizen. Today, I am sharing excerpts from an article by *Christopher Calton. He has talked about Trump’s early actions on trade, education, immigration, and more, offering a clear-eyed analysis of what Americans can expect in the years ahead.

On the first day of his second term, Trump issued a record-breaking 26 executive orders, and in the weeks that followed, he added more than 100 additional orders alongside other memorandums and proclamations. Some have been entirely positive, while others have been downright eyeroll-inducing, such as renaming the Gulf of Mexico and declaring the day the order was signed a national holiday.

The trillion-dollar military budget seems consistent with Trump’s hawkish foreign policy. Both of Trump’s electoral victories reflected a mandate to finally stop subsidizing foreign conflicts and end America’s forever wars. Trump has, at least, withheld funding for Ukraine, though his approach seems more an effort to cater to Putin than to achieve peace.

Elsewhere, the president has doubled down on America’s support for Israel’s destruction of Gaza, has threatened war with Iran, and has commenced a horrible bombing campaign against Yemen. Just as in his first term, when he neglected to fulfill his promise to withdraw troops from Afghanistan, Trump is again proving to be a war-happy commander in chief.

President Trump’s second term threatens to be even more of a disaster than his first in many arenas, particularly trade and foreign policy. His immigration measures are consistent with his campaign promises, but his lack of concern for due process and rule of law should be concerning to even the most ardent supporters of border security.

Trump’s approach to spending seems an improvement over his first term, but is nonetheless disappointing after what appeared to be a promising start with DOGE.

The silver lining to Trump’s first 100 days is that he is providing a positive counterweight to the left’s growing radicalism in the culture wars, as demonstrated by his education policies. 

*Christopher J. Calton is the Research Fellow in Housing and Homelessness at the Independent Institute.

 

Humanitarian obligations to Palestinians

The UN's highest court, International Court of Justice (ICJ) has begun a week of hearings into Israel's obligation to "ensure and facilitate" humanitarian assistance to Palestinian civilians in the occupied territories and particularly in Gaza, reports Euronews.

The hearings come in response to a resolution passed last year by the UN General Assembly asking the ICJ to weigh in on Israel's legal responsibilities after the country blocked UNRWA, the UN agency for Palestinian refugees, from operating on its territory.

The hearings opened as the humanitarian aid system in Gaza is nearing collapse. The UN legal team was the first to address the court on Monday, followed by Palestinian representatives.

The World Food Program said last week its food stocks in Gaza have run out, ending a main source of sustenance for hundreds of thousands of Palestinians.

Israel, which denies deliberately targeting civilians and aid staff as part of its war with Hamas, has blocked the entry of food, fuel, medicine and other supplies since 02 March, and renewed its military campaign on March 18, saying it aims to push Hamas to release more hostages.

The Palestinian Ambassador to the Netherlands Ammar Hijazi told the ICJ in The Hague, “Israel is starving, killing and displacing Palestinians while also targeting and blocking humanitarian organizations trying to save their lives", accusing it of breaching international law.

No Israeli representatives attended the hearing, which Foreign Minister Gideon Saar decried as part of a “systematic persecution and delegitimization” of his country. "It is abusing the international legal system and politicizing it," he added.

Israel's ban on UNRWA, which came into effect in January, stems from claims that the group has been infiltrated by Hamas. Israel presented its case against UNRWA on Monday, accusing it of failing to act before the war against evidence that Hamas had used its facilities.

Amir Weissbrod, a Foreign Ministry official, said UNRWA employed 1,400 Palestinians with militant ties, adding that some of those employees also took part in Hamas’ 07 October 2023 attacks. UNRWA said it fired nine staffers after an internal UN investigation.

In total, 40 states and four international organizations are scheduled to participate in the ICJ case. The US, which voted against the UN resolution, is scheduled to speak on Wednesday.

The court will likely take months to rule. But experts say that while any decision will not be legally binding, the outcome could profoundly impact international jurisprudence, international aid to Israel and public opinion.

Whether any ruling will have an effect on Israel is another matter. The Israeli government has long accused the UN of being unfairly biased against it and has ignored a 2004 advisory ruling by the ICJ that found its West Bank separation barrier illegal.

It also ignored last year's advisory ruling calling Israel to stop settlement activity in Jerusalem and the occupied West Bank, with Israeli Prime Minister Benjamin Netanyahu calling it a "decision of lies".

 

First 100 days of Donald Trump as US President

In the first 100 days of his second term (January 20–April 29, 2025), Donald Trump as President of the United States has implemented sweeping changes across domestic and foreign policy, marking a significant shift in US governance. This period is marked by aggressive executive action, political polarization, and early challenges in advancing his legislative agenda. He focused on fulfilling campaign promises, particularly on immigration, deregulation, and trade, but faced setbacks in healthcare reform and legislative coordination. Here's a brief review:

Domestic Policy

Government Overhaul
Trump established the Department of Government Efficiency (DOGE), led by Elon Musk, to streamline federal operations. This initiative led to substantial staff reductions and a freeze on new regulations and hiring, excluding the military.

Immigration Policies
The administration intensified immigration policies by invoking the Alien Enemies Act for mass deportations and signing the Laken Riley Act, which mandates detention of undocumented immigrants accused of certain crimes. Additionally, plans were set to expand the Guantanamo Bay Migrant Operations Center to detain up to 30,000 individuals.

Pardons and Clemency
Approximately 1,500 individuals convicted in connection with the January 06 Capitol attack received pardons, including leaders of groups like the Proud Boys and Oath Keepers. Ross Ulbricht, founder of the Silk Road darknet market, was also granted clemency.

Education and Social Policies
Federal funding was cut for institutions promoting diversity, equity, and inclusion (DEI) initiatives. Trump also challenged birthright citizenship and reinstated bans on transgender individuals serving in the military and participating in women's sports.

Energy and Environmental
Trump declared a National Energy Emergency, rescinded numerous environmental regulations, and withdrew the US from the Paris Climate Agreement for the second time. He also halted new federal leases for wind energy projects.

Foreign Policy

International Relations and Aid
Executive Order 14169 initiated a 90-day pause on foreign development aid, excluding emergency food assistance and military aid to Egypt and Israel. The administration also reinstated Cuba's designation as a state sponsor of terrorism and withdrew from the World Health Organization.

Conflict Resolution
Efforts to swiftly end the wars in Ukraine and Gaza faced setbacks. While initial diplomatic engagements showed promise, renewed hostilities impeded progress. A Kremlin-declared ceasefire in Ukraine offered some hope, but the Gaza ceasefire collapsed in March, exacerbating humanitarian concerns.

Trade and Alliances
Trump's aggressive tariff policies disrupted global markets and strained relationships with traditional allies. His administration's unilateral actions challenged longstanding international alliances and norms.

Domestic and Global Response

Domestically, public approval waned, with only 11% of Americans feeling better off since Trump's inauguration and 44% rating his performance as poor. Internationally, Amnesty International reported that Trump's policies contributed to a global decline in human rights, citing increased repression and erosion of international law.

Iran proposes meeting with Europeans

Iran has proposed meeting the European parties to a 2015 nuclear deal possibly in Rome this Friday if talks resume with the United States, reports Reuters.

Iran is looking to build on the momentum of nuclear negotiations with the United States that resumed in Oman on Saturday, after talks with Russia and China.

Omani officials have said a new round of US-Iran talks could be held on May 03 in Europe. No formal decision has been taken as yet.

Iran's reach out to Britain, France and Germany, known as the E3, suggests Tehran is keeping its options open and also wants to assess where the Europeans stand on the possible re-imposition of UN sanctions before October, when a resolution ratifying the 2015 accord expires.

Iran had communicated after last Saturday's talks with the United States a proposal to meet possibly in Rome on Friday. Should that not be possible, the Iranians also suggested discussions in Tehran before that date.

The second round of negotiations between Washington and Tehran took place in Rome with Iran saying serious differences remained.

The European and Western diplomats said the E3 were assessing whether it was in their interest to meet Iran now or wait to see how talks with Washington developed, but ruled out a meeting in Tehran.

"It is important to remain on the same page with all parties to the 2015 deal. Therefore, meeting the E3 countries this week ahead of the next round of talks with Americans would be useful," said the Iranian official.

 

BYD takes delivery of world largest car carrier

Constructed by China Merchants Jinling Shipyard, the LNG dual-fuel car carrier, BYD Shenzhen, which is 219 meters long and 37.7 meters wide, has a loading capacity of 9,200 ceu (car equivalent units). The ship's capacity takes the car carrier size crown from Höegh Autoliners' 9,100 ceu Aurora class.

Featuring green technologies including boil-off gas recondenser and drag-reducing anti-fouling hull coatings, hybrid battery system and shore power capability, the vessel has improved energy efficiency, ensuring that it meets the latest environmental standards set by IMO, the company said.

"The delivery of BYD Shenzhen represents a crucial step in BYD's globalization strategy. It is more than just a transport ship, but serves as a 'maritime bridge' connecting Chinese innovation with the global market," said Wang Junbao, general manager of BYD.

After a naming ceremony in Jiangsu province on April 22, the ship was set to complete loading operations before setting off to Brazil

BYD now operates three ro-ro ships, as the latest addition joins BYD Explorer No1, BYD Changzhou and BYD Hefei. Four vessels sharing BYD Shenzhen's design were ordered in 2022; sister ship BYD Xi'an is already on the water and soon to enter operation for the vehicle manufacturer.

In the first quarter of 2025, BYD said its ro-ro fleet has transported over 25,000 units of new energy automobiles to destinations all over the world.

In 2022, BYD announced an eight-ship, CNY5bn round of car carrier orders, two at Guangzhou Shipyard International Company and six at at CIMC Raffles, including ships ordered by Zodiac Maritime for charter to BYD and operation by Zodiac Maritime.

Courtesy: Seatrade Maritime  News

Iran: Operations resume at Shahid Rajaee Port

Iranian Customs Administration announced that customs clearance procedures for direct transport, foreign transit, exports, and imports have resumed at Shahid Rajaee Port.

According to the Islamic Republic of Iran Customs Administration (IRICA), a special meeting of the technical and support team was held on Sunday at the import exit gate of Shahid Rajaee Customs.

Following an on-site review of infrastructure and confirmation of operational readiness, the head of Iranian Customs Administration ordered the resumption of direct customs clearance for essential goods and shipments for production units.

In a separate statement, the administration noted that customs clearance procedures for foreign transit, exports, and imports at Shahid Rajaee Customs in Bandar Abbas have officially resumed.

Iranian Customs Administration is expected to formally announce the full resumption of customs clearance procedures across all operations later today.

A huge explosion occurred on Saturday at Shahid Rajaee Port in southern Hormozgan Province, leaving at least 25 dead and 750 injured, according to the provincial judiciary department.

The incident caused temporary disruptions in customs and transit operations. This affected the seamless flow of goods through the port, which is a crucial gateway for both imports and exports.

Shahid Rajaee Port, located in the southern city of Bandar Abbas, plays a key role in the country's trade and is vital for regional transit, particularly for goods traveling through the International North-South Transit Corridor (INSTC).

 

Kashmir conflict after Pahalgam attack

The most recent conflict between India and Pakistan in the Kashmir region has once again brought the area to the brink of a deep crisis, especially since both nations are armed with nuclear weapons.

India has upped the ante by blaming Pakistan for the tragedy, without providing credible evidence of this country’s alleged involvement in the brutal slaying of tourists.

The recent terrorist attack in Pahalgam in the Indian-administered Kashmir, which resulted in the tragic demise of numerous tourists, has not only intensified India's animosity towards Pakistan but has also garnered global scrutiny regarding the prospects of an extensive military conflict.

Since gaining independence in 1947, Kashmir has been split between India and Pakistan, with each country asserting ownership over the entire region while controlling distinct areas. This division has resulted in ongoing tensions that have escalated into conflict over time.

On Tuesday, at least 26 people were killed by suspected rebels at a resort in Pahalgam, making this the deadliest such attack in a quarter-century in Kashmir. A statement issued in the name of The Resistance Front (TRF), which is said to be part of the Lashkar-e-Taiba armed group, based in Pakistan, claimed responsibility.

The aftermath has prompted notable diplomatic pushback. India has declared its exit from the Indus Waters Treaty, an important water-sharing pact established by the World Bank in 1960, while Pakistan countered by suspending a significant canal irrigation initiative and prohibiting Indian flights from its airspace. 

Pakistani officials have dismissed India's allegations, with Defense Minister Khawaja Asif asserting that "blaming Pakistan won’t address" the issue of Kashmir’s disputed status. 

The Indian government has admitted failing to protect tourists at Pahalgam, Mallikarjum Kharge, president of the All India Congress Committee, said during a speech.

He added that the government confirmed during an all-party meeting on Thursday that a security lapse allowed the attack to happen.

Kharge, who heads the opposition in the upper house of India’s parliament, said a three-phase security plan was in place but ultimately failed.

Amid this volatile situation, Iran has taken on the role of a mediator, understanding the complex geopolitics of the subcontinent and choosing not to take sides.

Iran’s diplomatic initiative is underscored by its historical balancing act between India and Pakistan, maintaining strong ties with both while advocating for regional stability. 

On Friday, Iranian Foreign Minister Abbas Araghchi wrote on his X social account, “India and Pakistan are brotherly neighbors of Iran, enjoying relations rooted in centuries-old cultural and civilizational ties,” adding that “Tehran stands ready to use its good offices in Islamabad and New Delhi to forge greater understanding at this difficult time”.

Given the nuclear-armed status of both India and Pakistan, Iran’s mediation effort represents a crucial attempt to de-escalate tensions and prevent further destabilization in South Asia.

Tehran’s stance reflects its broader regional strategy to promote peace through dialogue and resist external powers’ divisive influences in the Kashmir dispute.

Pakistan said on Saturday it is “fully prepared to cooperate with any neutral investigators” following the Pahalgam attack.

In an editorial published on Saturday, Pakistan’s Dawn news outlet said, “It is time again to give diplomacy a chance as neither Pakistan nor India can afford war.”

The editorial added, “These are dangerous times in the subcontinent, and there is a need for both Pakistan and India to show restraint, and handle the post-Pahalgam developments with sense.

 

Trump strengthening US hegemony in MENA

There is no denying to the fact that the economy of the United States has been marred by rising borrowing, weakening greenback and above all being an Israeli accomplice in genocide in Gaza. The US has attained the status of the largest oil producers, but remains uncompetitive in the global markets. Many countries want to bid farewell to trading in Greenback are busy in developing alternative currency and settlement infrastructure.

Trump’s efforts to strengthen US hegemony in the Middle East and North Africa (MENA) were a major part of his foreign policy between 2017 and 2021. Here's a quick breakdown of how he tried to do it:

Maximum Pressure on Iran
Trump pulled the US out of the 2015 Iran nuclear deal (JCPOA) and re-imposed heavy sanctions on Iran. The goal was to weaken Iran economically and politically, cutting its influence across Iraq, Syria, Lebanon, and Yemen — areas where Iran was building a lot of regional clout.

Strengthening Ties with Traditional Allies
Trump doubled down on relationships with countries like Saudi Arabia, Israel, and the UAE. His administration sold billions of dollars in arms to Saudi Arabia and the UAE and strongly supported Israel's position on issues like Jerusalem. He went to the extent of recognizing Jerusalem as Israel’s capital.

Abraham Accords
This was one of the biggest moves, brokering normalization agreements between Israel and several Arab countries (UAE, Bahrain, Sudan, and Morocco). These deals were meant to realign regional dynamics, isolate Iran further, and show that US-brokered deals could reshape alliances.

Troop Realignment
While Trump talked a lot about "ending endless wars," he didn’t fully withdraw US military presence from the region. Instead, he shifted troops around. He reduced forces in Iraq and Syria but sent more to Saudi Arabia after the 2019 attacks on its oil facilities.

Economic Leverage
Trump used sanctions and financial pressure as weapons — not just against Iran, but also on groups like Hezbollah and even countries like Turkey when disagreements happened.

Counterterrorism Operations
His administration continued (and sometimes escalated) drone strikes and Special Forces raids against ISIS and al-Qaeda targets, claiming to keep US "dominance" over counterterrorism in MENA.

In short, Trump tried to reassert US dominance not by large new military invasions but through economic warfare, diplomacy favoring allies, selective military moves, and isolating adversaries. It was more of transactional and short-term approach to strengthen US hegemony rather than a big ideological one.

 

Iran: Blast at Bandar Abbas kills 18 people

A huge blast probably caused by the explosion of chemical materials killed at least 18 people and injured more than 700 on Saturday at Iran's biggest port, Bandar Abbas, Iranian state media reported.

The explosion, which hit the Shahid Rajaee section of the port, occurred as Iran began a third round of nuclear talks with the United States in Oman.

Hossein Zafari, a spokesperson for Iran's crisis management organization, appeared to blame the explosion on poor storage of chemicals in containers at Shahid Rajaee.

"The cause of the explosion was the chemicals inside the containers," he told Iran's ILNA news agency.

"Previously, the Director General of Crisis Management had given warnings to this port during their visits and had pointed out the possibility of danger," Zafari said.

However, an Iranian government spokesperson said that although chemicals had likely caused the blast, it was not yet possible to determine the exact reason.

President Masoud Pezeshkian ordered an investigation of the incident and sent to the site his interior minister, who said efforts were continuing to extinguish the fire and prevent it from spreading to other areas.

Iran's official news channels aired footage of a vast black and orange cloud of smoke billowing up above the port in the aftermath of the blast.

Located near the strategic Strait of Hormoz, Shahid Rajaee port is Iran’s biggest container hub, handling a majority of the country’s container goods.

The blast was heard in Qeshm, an island 16 miles south of the port.

State TV earlier reported that poor handling of flammable materials was a "contributing factor" to the explosion.

A local crisis management official told state TV that the blast took place after several containers stored at the port exploded.

 

 

PSX witnesses volatility due to rising tension between India and Pakistan

Pakistan Stock Exchange (PSX) remained volatile throughout the week ended Friday 25, 2025, as escalating geopolitical tensions post the Pahalgam attack in Indian Occupied Kashmir and India’s subsequent threats to revoke the Indus Water Treaty with Pakistan further undermined investor sentiment. The KSE-100 index closed the week at 115,469 points, losing 1,846 points, down 1.57%WoW.

Positive news stemmed from the IMF's World Economic Outlook for April 2025, lowering Pakistan's inflation forecast for FY25 to 5.1%YoY and 7.7%YoY for FY26. On the flip side, growth projection for FY25 was revised slightly downward to 2.7%, from 2.8% previously.

The news reports indicate that authorities have reached a preliminary agreement with two foreign commercial banks for a US$1 billion loan facility, at interest rate of 7.6%.

Finance Minister met with representatives from credit rating agency Moody's in an effort to improve Pakistan's credit rating, following a recent upgrade by Fitch.

PKR depreciated 0.09%WoW against the greenback.

Foreign exchange reserves held by State Bank of Pakistan (SBP) decreased by US$367 million to US$10.2 billion as of April 18, 2025.

Other major news flow during the week included: 1) Finance Minister met with IMF chief, 2) Government urged to fully deregulate wheat supply chain, 3) Cabinet recommended to abolish FED on property transfer, 4) Kuwait announced to join Pakistan offshore bids and 5) Pakistan missed wheat production target.

Vanaspati & Allied Industries, Synthetic & Rayon, and Textile Spinning were amongst the top performers, while Refinery, Jute, and Transport were amongst the laggards.

Major selling was recorded by Banks/ DFI with a net sell of US$4.0 million. Organizations and Foreigners absorbed most of the selling with a net buy of US$6.9.

Top performing scrips of the week were: NATF, FCEPL, MUREB, ATLH, and SNGP, while laggards included: BOP, PIBTL, EPCL, AGL, and HUMNL.

According to Pakistan’s leading brokerage house, AKD Securities lower oil prices and favorable standing among exporting peers amid reciprocal tariffs will support Pakistan’s economy and strengthen the outlook for a return to single-digit interest rates in CY25.

The benchmark index is anticipated to sustain its upward trajectory, primarily driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability. Top pick of the brokerage house includes, OGDC, PPL, PSO, FFC, ENGROH, MEBL, MCB, HBL, FCCL, INDU, ILP and SYS.

Iran-US to resume talks in Oman on Saturday

Negotiations between Iran and the United States over Tehran's rapidly advancing nuclear program are set to resume on Saturday in the Omani capital Muscat, where technical experts from both sides will attempt to iron out the details of a potential agreement, reports Euronews.

The discussions aim to curb Iran's nuclear activities in exchange for lifting economic sanctions the US has imposed on the country over nearly half a century.

US President Donald Trump has repeatedly warned he may order airstrikes against Iran's nuclear facilities if a deal is not achieved, while Iranian officials increasingly hint they could pursue nuclear weapons capability with their growing stockpile of near-weapons-grade uranium.

Last weekend's talks in Rome provided a neutral ground for Iranian Foreign Minister Abbas Araghchi and US Middle East envoy Steve Witkoff.

However, Rome's period of mourning following the death on Monday of Pope Francis, whose funeral will take place Saturday, and Iranian complaints about media attention in Italy may have influenced the change of venue.

"As you can see, unlike the first round of talks where the presence of journalists was limited...this time in Rome, Italy, that kind of control hasn't been applied," said Iranian state television journalist Hosnieh Sadat Shobeiri.

The talks in Muscat come as Iran shores up support from China and Russia. Araghchi met with officials in Moscow last week and in Beijing earlier this week.

On Thursday, representatives from China, Russia and Iran met with the head of the International Atomic Energy Agency (IAEA), the UN nuclear watchdog.

Although the IAEA did not release details, China's Xinhua news agency reported the three nations believe the IAEA has "the necessary potential and expertise" to contribute to the process, while emphasizing the need for diplomatic solutions.

China reaffirmed Iran's "right to the peaceful use of nuclear energy."

The Trump administration has kept European powers France, Germany and the United Kingdom — co-signatories to the 2015 nuclear deal — out of its direct talks with Iran, mirroring its strategy in negotiations with Russia over the Ukraine conflict.

Meanwhile, Araghchi suggested further discussions with the European nations, writing on X, "The ball is now in the E3's court...How we act at this critical junction is likely to define the foreseeable future."

Two Iranian diplomats, Majid Takht-e Ravanchi and Kazem Gharibabadi, will reportedly lead Tehran's technical team. The American delegation will be headed by Michael Anton, a political strategist and strong Trump supporter, although he lacks direct nuclear policy experience.

US Secretary of State Marco Rubio reiterated in a recent podcast that Iran must halt uranium enrichment entirely if it wants a civil nuclear program.

"If Iran wants a civil nuclear program, they can have one just like many other countries can have one, and that is they import enriched material," Rubio said.

While Witkoff initially suggested Tehran could enrich uranium to 3.67%, he later aligned with Rubio's position, insisting all enrichment must stop. Iran remains adamant that domestic enrichment is non-negotiable.

Complicating matters further is Israel's stance. Israel, which has targeted Iranian nuclear facilities in the past, has not ruled out future strikes. Israeli forces this week conducted drills preparing for possible Iranian missile attacks, according to broadcaster KAN.

"Our security services are on high alert given past instances of attempted sabotage and assassination operations designed to provoke a legitimate response," Araghchi posted on X on Wednesday.

 

 

Prince Faisal talks to Indian and Pakistani counterparts

Saudi Minister of Foreign Affairs Prince Faisal bin Farhan held separate phone calls with his counterparts in Pakistan and India on Friday. He discussed bilateral relations and the evolving regional situation amid rising tensions between the two South Asian nations, reports Saudi Gazette.

The diplomatic outreach followed a deadly militant attack on Tuesday near Pahalgam in the Indian-administered part of Kashmir’s scenic Pesarang Valley.

The assault claimed the lives of at least 26 people and triggered a wave of accusations and retaliatory measures from both sides.

Indian Foreign Minister Subrahmanyam Jaishankar said in a post on social media that he discussed the Pahalgam attack and its cross-border connections with Prince Faisal.

Pakistani Foreign Minister Ishaq Dar also posted on X, stating that the two ministers agreed to maintain consultations and coordination on the unfolding regional developments.

The Kashmir attack, which India has blamed on Pakistan-based militants, has sharply escalated tensions between the two nuclear-armed neighbors. In response, India suspended a key water-sharing treaty, closed a major land border crossing, and halted airspace and trade agreements with Pakistan.

Islamabad, in turn, warned of potential military action, further raising fears of a broader conflict.

Trump to sell Saudi Arabia US$100 billion arms

According to Reuters, US President Donald Trump is poised to offer Saudi Arabia an arms package worth well over US$100 billion. This will be formally announced during his visit to the kingdom in May.

The offered package comes after the administration of former president Joe Biden unsuccessfully tried to finalize a defence pact with Riyadh, as part of a broad deal that envisioned Saudi Arabia normalizing ties with Israel.

The Biden proposal offered access to more advanced US weaponry, in return for halting Chinese arms purchases and restricting Beijing's investment in the country. Reuters could not establish if the Trump administration's proposal includes similar requirements.

A US Defense official said, "Our defence relationship with the Kingdom of Saudi Arabia is stronger than ever under President Trump's leadership. Maintaining our security cooperation remains an important component of this partnership, and we will continue to work with Saudi Arabia to address their defence needs".

In his first term, Trump celebrated weapons sales to Saudi Arabia as good for US jobs.

Lockheed Martin Corp could supply a range of advanced weapons systems, including C-130 transport aircraft. Lockheed would also supply missiles and radars.

RTX Corp, formerly known as Raytheon Technologies, is also expected to play a significant role in the package, which will include supplies from other major US defence contractors, such as Boeing, Northrop Grumman Corp, and General Atomics.

The kingdom first requested information about General Atomics' drones in 2018, they said. Over the past 12 months, a deal for US$20 billion of General Atomics' MQ-9B SeaGuardian-style drones and other aircraft came into focus.

Several executives from defence companies are considering travelling to the region, as a part of the delegation.

The US has long supplied Saudi Arabia with weapons. In 2017, Trump proposed approximately US$110 billion of sales to the kingdom.

As of 2018, only US$14.5 billion of sales had been initiated and Congress began to question the deals, in light of the murder of Saudi journalist Jamal Khashoggi.

In 2021, under Biden, Congress imposed a ban on sales of offensive weapons to Saudi Arabia over the Khashoggi killing, and to pressure the kingdom to wind down its Yemen war, which had inflicted heavy civilian casualties.

Under US law, major international weapons deals must be reviewed by members of Congress before they are finalized.

The Biden administration began to soften its stance on Saudi Arabia in 2022, after Russia's invasion of Ukraine impacted global oil supplies.

The ban on offensive weapons sales was lifted in 2024, as Washington worked more closely with Riyadh in the aftermath of Hamas' October 07 attack, to devise a plan for post-war Gaza.

A potential deal for Lockheed's F-35 jets, which the kingdom has been reportedly interested in for years, is expected to be discussed, three of the sources said, while downplaying the chances for an F-35 deal being signed during the trip.

The United States guarantees that its close ally Israel receives more advanced American weapons than Arab states, giving it what is labeled a "qualitative military edge" (QME) over its neighbors.

 

 

India threatens to terminate Indus Water Treaty

India has announced to take a series of retaliatory measures, including its intent to terminate the Indus Waters Treaty. This significant development is likely to heighten geopolitical risks in the region.

The Treaty signed in 1960 between India and Pakistan under the mediation of the World Bank, governs the sharing of the waters of the Indus River and its tributaries. The treaty allocates the three eastern rivers (Ravi, Beas, and Sutlej) to India, and the three western rivers (Indus, Jhelum, and Chenab) to Pakistan, with limited rights for India to use the western rivers for non-consumptive purposes such as hydroelectric power generation.

The treaty has survived multiple conflicts and is considered one of the most successful examples of water-sharing agreements in the world.

If India were to unilaterally withdraw from the treaty, it would likely violate international law, as such agreements are generally considered binding and cannot be terminated unilaterally without consequences.

For Pakistan, any disruption to the flow of the western rivers could have severe implications for agriculture, which is the backbone of its economy, as well as for water availability in key regions. 

 

Iran condemns Kashmir terror attack

Esmail Baqaei, spokesperson for Iran’s Foreign Ministry has condemned Tuesday’s terrorist attack in Pahalgam, Kashmir, which killed and wounded dozens of civilians, including foreign nationals.

Describing the assault as a “severe crime violating all international legal norms and human rights principles,” Baqaei expressed Tehran’s solidarity with New Delhi in an official statement, offering condolences to victims’ families and wishing injured survivors a speedy recovery.

The spokesperson reiterated Iran’s unwavering opposition to terrorism in all its forms, stressing the necessity for strengthened regional and global coordination to eradicate this scourge and hold perpetrators accountable.

He emphasized that Iran, as a steadfast advocate for multilateral anti-terror frameworks, urges immediate action to prosecute those behind the attack.

The attack in South Kashmir's Pahalgam Baisaran Valley, a popular tourist destination, has been described as the deadliest strike on civilians in the subcontinental area since 2019.

Preliminary reports indicate at least 30 deaths and dozens more injuries. 

Jammu and Kashmir Chief Minister Omar Abdullah called the incident “unprecedented in scale” compared to recent civilian-targeted violence, while authorities continue to verify the final casualty figures.

Indian Prime Minister Narendra Modi condemned the attack on X and wrote, “Those behind this heinous act will be brought to justice.”

 

 

India downgrades ties with Pakistan

According to Reuters, India has announced a raft of measures to downgrade its ties with Pakistan on Wednesday, a day after suspected militants killed 26 men at a tourist destination in Kashmir in the worst attack on civilians in the country in nearly two decades.

Diplomatic ties between the nuclear-armed South Asian neighbours were weak even before the latest measures were announced as Pakistan had expelled India's envoy and not posted its own ambassador in New Delhi after India revoked the special status of Kashmir in 2019.

Pakistan had also halted its main train service to India and banned Indian films, seeking to exert diplomatic pressure.

Tuesday's attack is seen as a setback to what Indian Prime Minister Narendra Modi and his Hindu nationalist Bharatiya Janata Party have projected as a major achievement in revoking the semi-autonomous status Jammu and Kashmir enjoyed and bringing peace and development to the long-troubled Muslim-majority region.

On Wednesday, Indian Foreign Secretary Vikram Misri told a media briefing that the cross-border involvement in the Kashmir attack was underscored at a special security cabinet meeting, prompting it to act against Pakistan.

He said New Delhi would immediately suspend the 1960 Indus Waters Treaty "until Pakistan credibly and irrevocably abjures its support for cross-border terrorism."

The treaty, mediated by the World Bank, split the Indus River and its tributaries between the neighbours and regulated the sharing of water. It had so far withstood even wars between the neighbours.

Pakistan is heavily dependent on water flowing downstream from this river system from Indian Kashmir for its hydropower and irrigation needs. Suspending the treaty would allow India to deny Pakistan its share of the waters.

India also closed the only open land border crossing point between the two countries and said that those who have crossed into India can return through the point before May 01, 2025.

With no direct flights operating between the two countries, the move severs all transport links between them.

 

Cases dropped against Inauguration donors

A new analysis released on Monday, following the latest Federal Election Commission (FEC) filings, reveals that the Trump administration has dropped or paused federal enforcement actions against at least 17 corporations that contributed to the president’s inaugural fund.

The findings suggest that corporate donations to President Donald Trump’s second inauguration are yielding favorable outcomes for the companies involved.

Corporations facing federal lawsuits and investigations aren't giving millions to Trump's inauguration out of the kindness of their hearts. They're buying goodwill.

The watchdog group Public Citizen cross-referenced FEC data published on Sunday with its Corporate Enforcement Tracker, which monitors companies embroiled in federal legal actions.

According to the report, corporations under federal investigation or enforcement lawsuits contributed a total of US$50 million to Trump’s inaugural committee. Trump raised a record-setting US$239 million for his second inauguration, the filings show.

“Corporations facing federal lawsuits and investigations aren't donating millions out of goodwill,” said Rick Claypool, a researcher with Public Citizen. “They're attempting to buy influence. When a company is under investigation or prosecution, that influence can mean having cases dropped, settlements withdrawn, or even pardons granted.”

Notable companies whose federal enforcement cases were dismissed after donating to Trump’s inauguration include Bank of America, Capital One, Coinbase, DuPont, and JPMorgan Chase.

The report also highlights potential benefits for Google, which donated US$1 million. During an ongoing antitrust case, the Trump Justice Department abandoned a proposed breakup plan that would have required Google to divest its artificial intelligence assets. Sundar Pichai, CEO of Google’s parent company, Alphabet, was among several prominent corporate leaders given high-profile roles during the January ceremony.

Other inauguration donors have reaped different rewards. For instance, after Intuit, the tax preparation giant, donated US$1 million, the Trump administration moved to dismantle the IRS’s free Direct File program—a move that critics say serves Intuit’s interests.

Former US Labor Secretary Robert Reich drew attention to the pattern on social media noted, Apple donated US$1 million. Trump exempted most of Apple's imports from tariffs.

Coinbase donated US$1 million. Trump's SEC dropped a major lawsuit against them.

Observers have raised growing concerns about apparent pay-to-play corruption in the early months of Trump’s second term. Critics argue the administration has effectively put a “For Sale” sign on the White House.

Further blurring the lines between governance and corporate influence, CBS News reported that this year’s White House Easter Egg Roll was largely sponsored by private companies—a departure from the traditional support of the American Egg Board. Sponsors included Amazon, YouTube, and Meta, which funded various stations at the event.

“Nothing says Happy Easter in Trump 2.0 like corporate sponsorships at the White House Egg Roll,” Public Citizen commented. “They never miss an opportunity for a little old-fashioned corporate bribery.”

Gold record run gains further traction

Gold remarkable run higher is reaching new heights, with the market touching US$3,500 per ounce as confidence in the US economy further erodes after President Donald Trump's renewed attack on the Federal Reserve chair. Spot gold was trading around US$3,428 per ounce by 1417 GMT, after hitting a record US$3,500.05 earlier in the session, reports Reuters.

Trump said on Monday the US economy could slow down unless interest rates are lowered immediately, repeating his criticism of Fed Chair Jerome Powell as being slow to act and calling him a "major loser".

That was followed by a furious flight from US assets which undermined Wall Street and the dollar, while concerns about the independence of the Federal Reserve piled fresh pressure on Treasuries.

"Gold is recalibrating to reflect what can only be described as epic changes in the global financial system. And those changes are a widespread and fundamental shift in confidence in the world’s reserve currency and its bond markets," said independent analyst Ross Norman.

Bullion, renowned as a hedge against uncertainties and a highly liquid asset, has surged more than US$800 since the start of the year. It surpassed US$3,300 last Wednesday, and its strong momentum pushed it up by nearly US$200 in just a few days.

Adrian Ash, director of research at BullionVault, said central bank demand is very likely chasing gold's move higher, because Trump 2.0’s chaos only hardens gold’s appeal as a geopolitical asset".

In the final quarter of 2024, when Trump won the US election, central bank purchases accelerated 54% year-on-year to 333 tons, according to an estimate from the World Gold Council.

Data showed that China's central bank added gold to its reserves in March for the fifth straight month. China is considering setting up overseas warehouses to aid international settlement of specific products on the Shanghai Gold Exchange, its central bank said.

ANZ last week also raised its year-end gold price forecast to US$3,600.

Asked about a pause in the rally, analysts and experts said any correction is likely to be short-lived, and greater gains are most likely on the horizon if instability persists.

"It is hard just now to see a scenario where gold could correct sharply lower as a physical floor of Johnny-come-lately buyers would support or cushion the decline," said Norman.

Julius Baer analyst Carsten Menke said a major road block for gold would be a less confrontative President Trump, either on the side of trade or on the side of monetary policy - both of which seem rather unlikely at the moment.

Spot gold has hit 28 record highs so far in 2025, of which 16 are above the US$3,000/ oz milestone. Prices are up 31% so far this year, after ending 2024 with a 27% annual rise.

Pros and cons of importing US oil for Pakistan

Pakistan is considering importing crude oil from the United States to offset a trade imbalance that triggered higher US tariffs. However, many analysts question the economic viability of the proposal. Let us explore prose and cons of the proposal.

Pakistan imported 137,000 barrels per day of crude in 2024, mostly light grades from the Middle East, with Saudi Arabia and the United Arab Emirates among its top suppliers. Oil imports amounted over US$5 billion in 2024.

In February 2025, Saudi Arabia, through the Saudi Fund for Development (SFD), extended a US$1.2 billion financing facility to Pakistan for the import of oil products for a year. The SFD has provided approximately US$7 billion to Islamabad for oil products since 2019.

While the Government seems adamant at importing crude oil from the United States, experts have to find credible replies in favor of the move.

​Importing crude oil from the US could be a strategically viable option for Pakistan, but it involves several economic, logistical, and technical considerations.​

Potential Benefits

Reducing Trade Imbalance and Tariffs
Pakistan is exploring the import of US crude oil to address a US$3 billion trade surplus with the US, which has led to a 29% tariff on Pakistani exports. By purchasing approximately US$1 billion worth of US crude, Pakistan aims to mitigate these tariffs and improve trade relations.

Diversification of Energy Sources
Currently, Pakistan relies heavily on Middle Eastern countries for its crude oil imports, with Saudi Arabia and the UAE accounting for over 95% of its supply. Introducing US crude into the mix could enhance energy security by diversifying supply sources.

Challenges and Constraints

Refinery Compatibility
Pakistani refineries are primarily configured to process Middle Eastern light crude. While the exact compatibility with US crude grades varies, historical challenges with processing non-Middle Eastern crude, such as Russian oil, suggest potential technical limitations.

Higher Transportation Costs
Transporting crude oil from the United States involves longer distances as compared to Middle Eastern sources, leading to increased shipping costs and logistical complexities.

Dependence on Existing Financial Support
Saudi Arabia provides significant financial assistance to Pakistan for oil imports, shifting a portion of imports to the US might affect these favorable financing arrangements.

 Infrastructure Considerations

Pakistan's current oil import infrastructure includes ports like Karachi and specialized facilities such as Cnergyico's Single Point Mooring (SPM), capable of handling large crude carriers. While these facilities can accommodate increased imports, the overall capacity and efficiency of the supply chain would need assessment to handle US crude effectively.

Importing crude oil from the United States presents an opportunity to Pakistan to diversify its energy sources and address trade imbalances. However, it requires careful consideration of refinery capabilities, transportation logistics, and existing financial dependencies.

 

Threat to Powell tanks markets

According to Bloomberg, President Donald Trump sent the US stock market plummeting again, this time with social media snark and derisive playground nicknames aimed at the Chair of the US Federal Reserve.

The president, under increasing pressure for singlehandedly destabilizing global markets with his trade war, has turned his attention to interest rates in a bid to avoid what economists increasingly fear is a recession dead ahead.

Trump’s public mulling over whether he can legally fire Powell have market watchers eyeing a potential broad-based loss of confidence in the US economy if he were to try it.

The 78-year-old Republican’s taunts came before he met with executives of major retailers at the White House—those whose businesses are set to bear the brunt of tariffs the White House has temporarily suspended. The Monday meeting was said to have included representatives from Walmart, Home Depot, Lowe’s and Target. 

By the time markets closed, the S&P 500 and other major US stock indices had dropped around 2.5%, The gauge of the dollar weakened to a 15-month low. The benchmark 10-year Treasury fell with the yield reaching 4.4%.

As investors turned away from US securities, haven assets climbed. Gold jumped to another record, above US$3,400 an ounce, while the Swiss franc gained around 1% against the dollar. 

United States being labelled untrustworthy

Donald Trump, after assuming charge of president of United States has issued many administrative orders. Though, many of these have been suspended for a predefined period, the super power and the largest democracy is being labelled "untrustworthy". It is also being said that the perception can vary depending on who is saying it, their political stance, and the context. Here are some of the narratives, it is left at the reader to have his/ her own view.

Shifting Foreign Policy

The US has had a tendency to change its foreign policy dramatically between administrations. What one president supports, another might reverse. For allies and international partners, this unpredictability creates a sense of instability and mistrust. The example often cited is that of the US joining and then withdrawing from the Iran nuclear deal, Paris Climate Agreement, and even the Trans-Pacific Partnership.

Military Interventions

The US has a long history of military involvement in other countries—some could be justified, but many remains controversial i.e. Iraq, Afghanistan, Libya. These interventions often came with promises of democracy or stability but often result in prolonged conflict or power vacuums. This forces the people in those regions, and globally, to question US intentions.

Economic Sanctions and Trade Wars

The US commonly uses economic sanctions as a foreign policy tool, which annoys people of these as well as other countries. Though US says, sanctions target governments, but people are the ultimate sufferers. The recent trade war with China and even allies cements the perceptions of unpredictability and economic aggression.

Domestic Issues Tarnish Global Reputation

Events like the Capitol riot, racial tensions, mass shootings, and political polarization have impacted how other countries view the governance and values of the US administration. Not only the image of US administration is tarnished, but its moral authority to dictate other countries is questioned.

Intelligence and Surveillance Concerns

Revelations like the Snowden leaks showed that the US was spying not just on adversaries but on allies also, even leaders of friendly nations like Germany. That definitely dents the trust.

Broken Promises/ Inconsistent Support

Countries/ groups that relied on US support—like the Kurds in Syria or Afghan have often felt abandoned when political priorities changed. That history leads others to question whether American support will endure when it is needed the most.

Way Forward

It must be kept in mind that despite all these broken promises, last minute ditches and sudden and abrupt change in policies, many people still see the United States a global leader in innovation, freedom, and human rights. The “untrustworthy” label is becoming universal and once an alternative currency to the Greenback becomes a reality the United States would be left alone.

 

 

 

 

PSX benchmark index up 2.14%WoW

Pakistan Stock Exchange (PSX) regained momentum amid easing concerns over tariff tensions and stability in global crude oil prices. This recovery was further supported by improved corporate earnings. The KSE-100 index closed the week on Friday April 18, 2025 at 117,315 points, marking a gain of 2,462 points, up 2.14%WoW.

Average daily traded volume remained low, down by 18.2%WoW, to 455.8 million shares as compared to 557.3 million shares traded a week ago. Commercial banks were key contributors to the market’s rally, driven by stronger-than-expected earnings from UBL.

Moreover, Fitch upgraded Pakistan’s rating to ‘B-’ from ‘CCC+’, amid expectations that continuation of stable economic policies will persist in supporting accumulation of foreign exchange reserves and contain external funding needs.

Alongside, news that the government and commercial banks have signed a term sheet for PKR1.2 trillion, as part of efforts to eliminate circular debt.

On the macroeconomic front, remittances by overseas Pakistanis for March 2025 touched a record high of US$4.1 billion, taking the current account surplus to US$1.2 billion —the highest monthly surplus on record.

Power generation in March 2025 was reported at 8,411GWh, up 5%YoY.

Other major news flow during the week included: 1) Pak-IMF technical-level talks to commence next week, 2) Budget to offer relief for salaried class, 3) IT exports surge to US$2.8 billion in 9MFY25, 4) Kuwait extends oil credit facility for two years, and 5) Urea and DAP sales drop by 54%YoY each during March 2025.

Vanaspati & Allied Industries, Leasing Companies, and Jute were amongst the top performing sectors, while, Woollen, Synthetic & Rayon, and Tobacco were amongst the laggards.

Major selling was recorded by Insurance Companies with a net sell of US$35.9 million. Individuals and Other Organizations absorbed most of the selling with a net buy of US$30.9 million.

Top performing scrips of the week were: PGLC, UBL, ATLH, SAZEW, and KTML, while laggards included EPCL, AGL, BNWM, IBFL, and HALEON.

Lower oil prices and favorable standing among exporting peers amid reciprocal tariffs are likely to support the economy and strengthen the outlook for a return to single-digit interest rates in CY25.

According to AKD Securities, the KSE-100 index is anticipated to sustain its upward trajectory, with a target of over 165,000 points by end December 2025. This expectation is primarily based of strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and structural reforms.

Top picks of the brokerage house include, OGDC, PPL, PSO, FFC, ENGROH, MEBL, MCB, HBL, FCCL, INDU, ILP and SYS.

 

 

Iran India to expand agricultural trade

Iran and India are poised to enhance their agricultural trade volume beyond the current US$1.0 billion, it was announced by Iran’s Agriculture Minister Gholamreza Nouri Ghezeljeh following a meeting with India's Agriculture Minister Shivraj Singh Chouhan during the BRICS agriculture ministers’ summit in Brazil.

The ministers reviewed previous agreements and reaffirmed their countries’ longstanding cultural, historical, and economic ties. Nouri Ghezeljeh expressed appreciation for India’s support in facilitating Iran’s membership in BRICS and noted that bilateral cooperation is entering a new phase.​

In addition to these developments, Iran and India have agreed to establish a joint agricultural cooperation committee within the next three months. This committee aims to facilitate exports of agricultural products and address issues such as quarantine requirements and customs barriers. The agreement was reached during a meeting between Iran's Deputy Agriculture Minister Mohammad Mehdi Borumandi and Secretary of India's Agriculture and Farmers Welfare Ministry Manoj Ahuja in New Delhi. The officials also agreed to hold the first joint working group on agricultural cooperation between the two countries in the near future. ​

Furthermore, Iran's Deputy Minister of Agriculture Alireza Mohajer has voiced the country's readiness to cooperate with BRICS member countries in the agricultural sector. Speaking at the 14th meeting of the BRICS ministers of agriculture in Russia, Mohajer highlighted Iran's strategic geographical position, being situated at the intersection of the North-South and East-West transit corridors. He noted that Iran can help expand regional and international trade networks in agriculture and is an effective partner in bilateral and multilateral cooperation. ​

These initiatives are expected to streamline future collaborations through BRICS mechanisms, particularly financial instruments designed to bypass conventional barriers and facilitate smoother transactions among member states. Both ministers expressed optimism that deeper engagement between Iran and India—within the BRICS framework and bilaterally—will lead to meaningful developments in agricultural and economic relations.

 

Can US sanctions on Iran and OPEC production cuts save oil prices from falling?

According to Reuters, oil prices extended gains on Thursday on the prospect of tighter supply after Washington imposed further sanctions to curb Iranian oil trade and as some OPEC producers pledged more output cuts to compensate for pumping above agreed quotas.

Brent crude futures rose to US$66.40 a barrel by 0321 GMT, and WTI traded at US$63.13 a barrel. Both benchmarks settled 2% higher on Wednesday at their highest levels since April 3 and are on track for their first weekly rise in three. Thursday is the last settlement day of the week ahead of the Good Friday and Easter holidays

"I think the rally has a couple of factors behind it - shorts covering, the weaker Greenback which makes crude oil cheaper to buy, and the US pressure on Iran," IG market analyst Tony Sycamore said.

He added that WTI could rise back to US$67 a barrel but may struggle with further gains.

"If we assume that US growth is going to be flat at best for the next two quarters and Chinese GDP is set to slow to somewhere between the 3%-4% band, it's not good for crude oil," Sycamore said.

President Donald Trump's administration issued new sanctions targeting Iran's oil exports on Wednesday, including against a China-based "teapot" oil refinery, ramping up pressure on Tehran amid talks on the country's escalating nuclear program.

Adding to supply concerns, the Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday it had received updated plans for Iraq, Kazakhstan and other countries to make further output cuts to compensate for pumping above quotas.

"These factors certainly could have affected sentiment – would argue that Iranian production (is) not significant and that OPEC quotas more often breached than observed, but both factors fed into the more bullish tone," said Michael McCarthy, CEO of online investment platform Moomoo.

Big draws on US gasoline and distillates stocks and a smaller-than-expected gain in weekly crude inventories also bolstered markets, he said.

"Much of the recent selling pressure in global crude markets related to fears of an imminent flood of US oil, but the drop in refining suggests that bottlenecks to supply may be emerging," McCarthy said.

Still, OPEC, the International Energy Agency and several banks, including Goldman Sachs and JP Morgan, cut forecasts on oil prices and demand growth this week as US tariffs and retaliation from other countries threw global trade into disarray.

 

China urges Vietnam to resist bullying

Chinese President Xi Jinping has called on Vietnam to oppose "unilateral bullying" to upkeep a global system of free trade — though he stopped short of naming the United States, reports Saudi Gazette.

It comes as Xi is on a so-called "charm offensive" trip across South East Asia, which will also see him visit Malaysia and Cambodia.

Though, the trip was long-planned, it has taken on heightened significance in the wake of a mounting trade war between the US and China. Vietnam was facing US tariffs of up to 46% before the Trump administration issued a 90-day pause last week.

US President Donald Trump called Xi's meeting with Vietnamese leaders a ploy to figure out how to "screw the United States of America".

According to state media outlet Xinhua, Xi told Vietnam's Communist Party Secretary-General To Lam to "jointly oppose unilateral bullying".

"We must strengthen strategic resolve... and uphold the stability of the global free trade system as well as industrial and supply chains," he said.

Stephen Olson, a former US trade negotiator, said Xi's comments were "a very shrewd tactical move".

"While Trump seems determined to blow up the trade system, Xi is positioning China as the defender of rules-based trade, while painting the US as a reckless rogue nation," he added.

Speaking to reporters in the Oval office on Monday, Trump said he does not "blame" China or Vietnam but alleged that they were focused on how to harm the US.

"That's a lovely meeting. Meeting like, trying to figure out, how do we screw the United States of America?" said Trump.

The world's two largest economies are locked in an escalating trade battle, with the Trump administration putting tariffs of 145% on most Chinese imports earlier this month. Beijing later responded with its own 125% tariffs on American products coming into China.

On Saturday, a US customs notice revealed smartphones, computers and some other electronic devices would be excluded from the 125% tariff on goods entering the country from China. But Trump later chimed in on social media saying there was no exemption for these products and called such reports about this notice false. Instead, he said that "they are just moving to a different tariff 'bucket'".

Xi arrived in Hanoi on Monday, where he was welcomed by well wishes waving Chinese and Vietnamese flags. He then met top Vietnamese officials including the country's Secretary-General and Prime Minister Pham Minh Chinh.

Earlier on Tuesday, Xi visited the Ho Chi Minh Mausoleum to take part in a wreath laying ceremony at the resting place of the former Vietnamese founder and Communist leader.

Despite Xi's visit, Vietnam will be careful to "manage the perception that it is colluding with China against the United States, as the US is too important a partner to put aside," said Susannah Patton, Director of the Southeast Asia Program at the Lowy Institute think-tank.

"In many ways, China is an economic competitor as well as an economic partner for South East Asian economies," she added.

Xi arrived in Malaysia on Tuesday. He is expected to meet the country's King, as well as its Prime Minister Anwar Ibrahim.

It comes as Malaysian mobile data service company, U Mobile said it will roll out the country's second 5G network by using infrastructure technology from China's Huawei and ZTE.

Ms Patton expects Xi to continue portraying the US as "a partner which is unreliable and protectionist".

Meanwhile, he is likely to "portray China in stark contrast as a partner that is there", she added.

"Now is really a golden opportunity for China to score that narrative win. I think this is how Xi's visit to Vietnam, Cambodia and Malaysia will be seen."