Nuclear enrichment is none of US business

Leader of the Islamic Revolution on Wednesday resoundingly dismissed US proposals that Iran should stop all uranium enrichment activities, saying enrichment is the key to Iran’s nuclear industry.

“The core demand of the US. is that Iran should not have a nuclear industry and should remain dependent on them. Our response to America’s nonsense is clear, they can’t do a damn thing about it.”

Ayatollah Ali Khamenei made the remarks as Iran is marking the 36th anniversary of the passing of Imam Khomeini, the founder of the Islamic Republic.

“The first word of the US is that Iran should not have a nuclear industry and should rely on the United States,” Ayatollah Khamenei said in the mausoleum of Imam Khomeini.

“Our response to America’s nonsense is clear, they cannot do a damn thing in this matter,” the Leader said, asking, “Why do you interfere that Iran have enrichment or not. It is not your business.”

The Leader’s remarks came in response to President Donald Trump administration’s proposals that Iran should not be allowed "any enrichment of uranium."

Highlighting the importance of nuclear industry, the Leader said, thanks to considerable efforts, Iran has achieved a “complete nuclear fuel cycle”.

Noting that the nuclear industry is not limited to energy production, he said it is a “foundational industry” that various scientific fields are influenced by it.

The Leader said the foes wish to deprive Iran of this significant industry.

“Uranium enrichment is the key issue in the nuclear matter, and that’s exactly what our adversaries have focused on.”

The United States has been claiming that Iran can import nuclear fuel for its reactors. However, the Leader said the United States is not trustworthy, saying the US refused to sell 20-percent enriched uranium to Iran to power its medical reactor in the 2000s.

“In the 2000s, we experienced firsthand how unreliable the US was when it came to supplying 20% enriched fuel,” Ayatollah Khamenei pointed out, indirectly referring to Iran's need to nuclear fuel to power its Tehran medical reactor.

 

PSX benchmark index up 1.6%WoW

Pakistan Stock Exchange (PSX) continued its bullish momentum throughout the week, driven primarily by investor confidence ahead of the upcoming budget.

This optimism was reflected by the benchmark Index surging by 1,950 points or 1.6%WoW to close the week at 121,641 points on Thursday, the last trading day before commencement of Eid-ul Adha holidays.

Market participation was lean as average daily trading declined to 660 million, down from 662 million shares a week ago.

Overall, opinion on the street remains that a stable fiscal environment to continue, with no significant shift in existing tax structures for individuals and businesses alike in the forthcoming Federal Budget (FY26).

On the macroeconomic front, trade deficit was reported at US$2.6 billion for May 2025.

Cement saless for May 2025 were reported at 4.65 million tons, up 9%YoY, driven by higher domestic offtakes. Analysts project domestic cement sales to grow by 6%YoY in FY26, mainly due to the revival in construction activity supported by a declining interest rate and lower inflationary environment.

OMC industry sales remained on upward trajectory, rising to 1.53 million tons, up 10%YoY.

PKR remained under pressure, depreciated by 0.05%WoW against the greenback.

Other major news flow during the week included: 1) Pakistani officials scheduled to meet US authorities next week for the trade talks, 2) IMF and Pakistan arrived near consensus on cut in tax rates for salaried class, 3) suggestion to hike interest rate by 2% on income from bank deposits, 4) GoP eyes 4.2%YoY growth in FY26 and 5) ADB approves US$800 million to boost Pakistan’s public finance.

Power Generation & Distribution, Textile Weaving, Modarbas, Leasing Companies and Inv.Banks/ Inv.cos/ Securities.cos were amongst the top performing sectors, while Vanaspati & Allied Industries, Synthetic Rayon, Transport, Cable & Electrical Goods and Paper & Board were amongst the laggards.

Major selling was recorded by Foreigners and Mutual funds with a net sell of US$26.01 million, Companies absorbed most of the selling with a net buy of US$8.6 million.

Top performing scrips of the week were: PKGP, FABL, NATF, NBP and KEL, while top laggards included: POML, IBFL, SYS, APL and KTML.

According to AKD Securities, budget-related developments are expected to drive short-term market sentiment, with the possibility of single-digit interest rates contributing to a positive outlook over time, as its forecast for FY26 inflation stands at 7.0%.

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

 

 

Zodiac car carrier on fire

Managers Zodiac Maritime said that smoke was detected onboard the Liberian-flagged, 2006-built, Pure Car and Truck Carrier (PCTC), on June 03 in the Pacific Ocean. The USCG Alaska Division said it received a distress call on June03 reporting a fire on the vessel.

The Morning Midas was carrying 3,000 vehicles of which around 800 were electric and Zodiac and smoke was first seen emanating from a deck carrying electric vehicles.

“The crew immediately initiated emergency firefighting procedures using the vessel’s onboard fire suppression systems. However, despite their efforts, the situation could not be brought under control,” a statement from the manager said.

With the crew unable to bring the fire under control, in consultation with the US Coast Guard the decision was taken to evacuate all 22 seafarers to a nearby vessel.

The USCG said in a statement that the crew evacuated first to a liferaft and then to the vessel Cosco Hellas. According to Zodiac there were no injuries to the crew.

The USCG said in a statement that the current status of the fire was unknown but smoke was still emanating from the vessel.

“As the search and rescue portion of our response concludes, our crews are working closely with the vessel’s parent company, Zodiac Maritime, to determine the disposition of the vessel,” said Rear Admiral Megan Dean, commander of the Coast Guard’s Seventeenth District.

“We are grateful for the selfless actions of the three nearby vessels who assisted in the response and the crew of motor vessel Cosco Hellas, who helped save 22 lives.”

Zodiac said earlier, “The relevant authorities have been notified, and we are working closely with emergency responders with a tug being deployed to support salvage and firefighting operations. Our priorities are to ensure the continued safety of the crew and protect the marine environment."

The USCG Alaska district reported that the incident took place 300 miles southwest of Adak Island. Watchstanders diverted the crew of US Coast Guard Cutter Munro (WMSL 755) to the area, directed the launch of a C-130J Super Hercules aircrew from Coast Guard Air Station Kodiak, and positioned an MH-60T Jayhawk helicopter aircrew in Adak.

The Morning Midas was enroute to Lázaro Cárdenas, Mexico at the time of the incident.

Fires on car carriers and containerships from lithium ion batteries are growing concern to the industry and insurers due to the difficulty in bringing them under control.

 

US vetoes demand for Gaza ceasefire

The United States on Wednesday vetoed a draft UN Security Council resolution that demanded an "immediate, unconditional and permanent ceasefire" between Israel and Hamas militants in Gaza and unhindered aid access across the war-torn enclave, reports Reuters.

The other 14 countries on the council voted in favor of the draft as a humanitarian crisis grips the enclave of more than 2 million people, where famine looms and aid has only trickled in since Israel lifted an 11-week blockade last month.

"The United States has been clear, we would not support any measure that fails to condemn Hamas and does not call for Hamas to disarm and leave Gaza," Acting US Ambassador to the UN Dorothy Shea told the council before the vote, arguing that it would also undermine US-led efforts to broker a ceasefire.

Washington is Israel's biggest ally and arms supplier.

The Security Council vote came as Israel pushes ahead with an offensive in Gaza after ending a two-month truce in March. Gaza health authorities said Israeli strikes killed 45 people on Wednesday, while Israel said a soldier died in fighting.

Britain's UN Ambassador Barbara Woodward criticized the Israeli government's decisions to expand its military operations in Gaza and severely restrict humanitarian aid as "unjustifiable, disproportionate and counterproductive."

Israel has rejected calls for an unconditional or permanent ceasefire, saying Hamas cannot stay in Gaza. Israel's UN Ambassador Danny Danon told the council members who voted in favor of the draft: "You chose appeasement and submission. You chose a road that does not lead to peace. Only to more terror."

Hamas condemned the US veto, describing it as showing the US administration's blind bias" towards Israel. The draft Security Council resolution had also demanded the immediate and unconditional release of all hostages held by Hamas and others.

 

Pressure on Netanyahu to dissolve parliament

A member of Israel's right-wing coalition threatened to quit the cabinet on Wednesday and support an opposition motion to dissolve parliament tabled for next week, piling pressure on Israeli Prime Minister Benjamin Netanyahu, reports Reuters.

Netanyahu's coalition of secular right-wing and ultra-Orthodox parties holds an 8-seat majority in parliament. United Torah Judaism has 7 seats while its ally, Shas, the other ultra-Orthodox party, has 11.

Latest opinion polls suggest that Netanyahu's coalition would lose power if an election was held today, with many voters unhappy over the continued war in Gaza since October 2023.

United Torah Judaism, one of two ultra-Orthodox parties in the coalition, said it would withdraw from the government unless it secured last-minute concessions formalizing an exemption for ultra-Orthodox men from military service.

The opposition party Yesh Atid, led by former Prime Minister Yair Lapid, put forward a parliamentary vote for next week to topple the government, even as the Israeli army continues battling Hamas in the Gaza Strip. It would require the support of 61 out of the 120 members of the parliament to succeed.

"This Knesset (parliament) is finished. It has nowhere to go," Lapid said.

Netanyahu, Israel's longest-serving prime minister, has remained silent on the looming crisis.

A spokesperson for United Torah Judaism leader Yitzhak Goldknopf told Reuters the party would vote in favour of dissolving parliament unless exemption legislation was passed.

With a week until the vote, Netanyahu and his allies still have time to negotiate over an issue that has dogged the coalition for months.

 

Oil prices slip on rising OPEC Plus output

Oil prices slipped in Asian trade on Wednesday on rising concerns of increasing OPEC Plus output and tariff tension that threatens the global economic outlook, though worries about Canadian supply provided a floor, reports Reuters

Brent crude futures dipped 0.4% to US$65.40 a barrel by 0318 GMT, while US West Texas Intermediate crude was also down 0.4% to US$63.16 a barrel.

Both benchmarks had climbed about 2% on Tuesday to a two-week high, driven by worries over supply disruption from Canadian wildfires and expectations that Iran would reject a US nuclear deal proposal key to easing sanctions on the major oil producer.

"Despite fears over Canadian supply and stalled Iran-US nuclear talks, oil markets are struggling to extend gains," said Tsuyoshi Ueno, senior economist at NLI Research Institute, adding that the OPEC Plus increases were capping the upside.

Ueno said hopes for progress in US-China trade talks were overshadowed by profit-taking, as investors stayed cautious over the broader economic fallout from tariffs.

US President Donald Trump and Chinese leader Xi Jinping are likely to speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating a deal to roll back tariffs and trade curbs.

On Tuesday, the Organisation for Economic Co-operation and Development (OECD) cut its global growth forecast as the fallout from Trump's trade war takes a bigger toll of the US economy.

"The current backwardation in the front of the crude oil futures curve is a result of low inventory balances observed since the beginning of the year," BofA analysts told clients in a note.

Some analysts expect the loss in Canadian supply to offset more than half the increases next month planned by OPEC Plus.

"Estimates suggest around 350,000 barrels per day have been affected and shut in," said SEB analyst Ole Hvalbye, referring to the impact of the wildfires.

"To put this in context, the disruption exceeds three-quarters of the volume OPEC Plus agreed to add to the market in July."

 

 

Panama removes over 650 ships from registry

Panama's Maritime Authority has removed from its registry more than 650 vessels since 2019 as part of an effort to fulfill US sanctions and enforce stricter rules for the ships it flags, reports Reuters.

A total of 214 vessels have been withdrawn from Panama's registry, among the world's largest with more than 8,500 ships, since it began implementing measures last year allowing it to act faster to help enforce sanctions, the authority added.

Ships cannot sail under Panama's flag once they are removed from its registry.

Panama responded to criticism by non-governmental organization United Against Nuclear Iran (UANI), which last week said Panama had not taken sufficient action against sanction violators and asked it to "immediately cease facilitating Iran's illicit oil trade" and withdraw its flag from all tankers carrying Iranian oil.

According to UANI, nearly one in five vessels suspected of transporting Iranian oil sails under Panama's flag. "This is not just a failure of Panama's registry. It's a direct threat to global sanctions compliance and regional and U.S. security," it said.

Panama in 2019 signed an agreement with other flag countries including Liberia and Marshall Islands to exchange information about vessels whose registrations were canceled or rejected due to potential sanction violations. It also began implementing measures against ships that deliberately turn off their transponders to avoid tracking.

In May, the authority said it would reinforce controls for ship-to-ship operations by Panama-flagged vessels, following an increase in the use of "dark-fleet" tankers to skirt sanctions or evade environmental requirements.

The US has increased pressure on countries with large vessel registries to help enforce sanctions. US President Donald Trump has criticized the expansion of a dark fleet of tankers moving sanctioned oil and threatened to take over the Panama Canal.