Latest news with #geopoliticalTensions
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
French Inflation Ticks Higher for First Time in 2025
French inflation crept up for the first time this year in June, as concerns grow over the effect of geopolitical tensions on prices. Consumer prices were 0.8% higher than the same month last year, up from 0.6% in May, according to European Union-harmonized data from France's statistics agency Insee. Economists polled by The Wall Street Journal anticipated a cooler 0.7%. Annual inflation has fallen or been the same since late last year.
Malay Mail
3 days ago
- Politics
- Malay Mail
Navigating the Strait of Hormuz: Can Iran say no? — Mohd Hazmi Mohd Rusli
JUNE 26 — The Strait of Hormuz is a critical maritime chokepoint that links the Persian Gulf to the Arabian Sea and beyond to the high seas. It borders two coastal states, Iran and Oman. An estimated 20 percent of the world's crude oil supply is transported through this narrow waterway daily. It is therefore unsurprising that the Strait has become the focus of global geopolitical tensions. A key question that continues to arise is whether Iran may legally close the Strait of Hormuz to foreign vessels, particularly in times of heightened regional conflict. Transit passage and the law of the sea Under the 1982 United Nations Convention on the Law of the Sea (UNCLOS), the Strait of Hormuz is classified as a strait used for international navigation. As such, it is subject to the regime of transit passage under Articles 38 and 44 of the Convention. This regime grants all ships and aircraft, including warships, the right to transit continuously and expeditiously through the strait without requiring prior authorisation from the coastal states, provided that passage does not threaten their peace or security. Most importantly, this right of transit passage may not be suspended even during times of conflict. This is clearly stated in Article 44 of UNCLOS. This matter does not apply to Iran alone, but also applies to countries such as Malaysia and Indonesia which possess sovereignty and sovereign rights over the Strait of Malacca, and Malaysia, Indonesia and Singapore which possess sovereignty over the Strait of Singapore. These littora States also cannot unilaterally close these straits to international navigation, as the Straits of Malacca and Singapore are subjected to the same principle. A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. — Reuters pic Iran and UNCLOS Although both Iran and Oman are coastal states bordering the Strait of Hormuz, only Oman is a party to UNCLOS. Iran has not ratified the Convention. Nevertheless, the principle of transit passage is widely recognised as part of customary international law. This means that Iran remains bound by this principle, despite not being a State-member to UNCLOS. When can Iran lawfully act Iran may only restrict navigation through the Strait of Hormuz if it is engaged in a legally recognised international armed conflict, for example, if it is officially at war. In such circumstances, international humanitarian law applies. This permits coastal states to take defensive military actions against enemy vessels, including interception. However, these actions must not be directed at vessels belonging to neutral states. As of now, Iran has not officially declared war against any country, although military tensions have escalated involving Israel and United States military bases in Qatar. Any unilateral move by Iran to close the Strait would be a violation of international law and could provoke military retaliation or economic sanctions from major world powers. Conclusion From the standpoint of international law, Iran does not possess the absolute right to unilaterally close the Strait of Hormuz to foreign shipping. Such action would not only breach the legal framework governing transit passage but could also threaten global maritime security and regional stability. Ultimately, the situation in the Strait of Hormuz is not merely a legal issue. It highlights the ongoing intersection between sovereignty, geopolitics and the law of the sea that continues to shape global affairs today. Assoc Prof Dr Mohd Hazmi Mohd Rusli is the Head Researcher at the International Law Unit, Universiti Sains Islam Malaysia and a Research Fellow at the Asian Institute of International Affairs and Diplomacy, Universiti Utara Malaysia. *Assoc Prof Dr Mohd Hazmi Mohd Rusli is the Head Researcher at the International Law Unit, Universiti Sains Islam Malaysia and a Research Fellow at the Asian Institute of International Affairs and Diplomacy, Universiti Utara Malaysia. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Asharq Al-Awsat
4 days ago
- Business
- Asharq Al-Awsat
Morocco's Central Bank Keeps Interest Rate Steady at 2.25%
Morocco's Central Bank (Bank Al-Maghrib) has maintained its benchmark interest rate unchanged at 2.25%, stating that current borrowing cost levels remain consistent with inflation expectations. In a statement issued following the quarterly meeting of its board of directors on Monday, the bank explained that the average inflation rate is expected to reach 1% in 2025, supported by a decline in food prices, before gradually rising to 1.8% in 2026. The statement noted that the outlook for the national economy remains surrounded by a high degree of uncertainty, due to ongoing geopolitical tensions, fluctuations in global trade policies, and the volatile performance of the domestic agricultural sector. Domestically, according to annual national accounts data released by the High Commission for Planning, the Moroccan economy grew by 3.8% in 2024, a much faster pace than indicated by the quarterly data for the same year. According to Bank Al-Maghrib's forecasts, economic growth is expected to accelerate to 4.6% in 2025, before stabilizing at 4.4% in 2026. The agricultural sector's value-added is projected to rise by 5% in 2025, driven by an estimated cereal harvest of 44 million quintals, according to the Ministry of Agriculture, and by 3.2% in 2026, based on an assumed average output of 50 million quintals. As for non-agricultural sectors, supported by ongoing investment in infrastructure, they are expected to grow by approximately 4.5% in both 2025 and 2026. Regarding external accounts, trade exchanges are expected to improve gradually over the medium term, with the direct impact of US tariffs remaining limited. Export growth is estimated at around 5.1% in 2025 and 9% in 2026, driven particularly by increased exports of phosphate and its derivatives, which are projected to reach 106.7 billion dirhams by 2026.
Zawya
6 days ago
- Business
- Zawya
Shipping rates up 20-30% due to rising geopolitical tensions: Report
Shipping rates have surged by 20 percent to 30 percent amid escalating geopolitical tensions, according to Jakob Larsen, chief safety and security officer at BIMCO, one of the largest shipowners' associations. Insurance premiums for vessels transiting the Strait of Hormuz have increased over a seven-day period due to heightened concerns about geopolitical tensions, he told CNBC Arabia. While shipping operations through the Strait remain largely unaffected for now, Larsen warned that vessel traffic could decline if the conflict escalates. The daily shipping cost per vessel currently stands at $25,000, the report stated. Larsen expects insurance premiums to rise tenfold compared to the total value of the vessel based on past geopolitical crisis scenarios. Many ship operators have opted to limit the number of voyages through the region and are taking precautionary measures to safeguard their vessels against potential attacks, he added. (Writing by P Deol; Editing by Anoop Menon) (
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
Bursa slips in early trade amid rising geopolitical risk
KUALA LUMPUR : Bursa Malaysia trended lower in early trade today as investors turned wary amid heightened geopolitical tensions in the Middle East, an analyst said. At 9.07am, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 13.03 points, or 0.87% to 1,489.71 from Friday's close of 1,502.74. The benchmark index opened 9.55 points lower at 1,493.19. The broader market was negative, with 479 decliners thumping 72 gainers, 217 counters were unchanged, while 1,664 were untraded and 39 suspended. Turnover stood at 246.13 million shares worth RM128 million. Rakuten Trade Sdn Bhd's equity research vice-president Thong Pak Leng said Wall Street closed mixed on Friday due to uncertainty over interest rate cuts. At the same time, further escalation in the Middle East may weigh on market sentiment in the near term. 'With the US involvement in the war against Iran last Saturday, it would be interesting to see the market's reaction today. 'Given the possible heightened volatility, we expect the index to hover within the 1,480-1,500 range today and would be buyers of blue chips at the 1,480 level,' he noted. Among heavyweights, Maybank dropped seven sen to RM9.59, Public Bank fell three sen to RM4.18, CIMB and CelcomDigi were each four sen lower at RM6.61 and RM3.75, respectively, while Tenaga Nasional and IHH were flat at RM14.22 and RM6.85, respectively. Among the most active stocks, Hubline, SFP Tech and Malayan United all lost half-a-sen to four sen, 20.5 sen and five sen, respectively. MYEG slipped 1.5 sen to 89 sen, while Hibiscus Petroleum gained 10 sen to RM1.81. On the index board, the FBM Emas Index shaved 114.56 points to 11,114.43, the FBMT 100 Index shrank 112.98 points to 10,902.47, and the FBM Emas Shariah Index declined 122.67 points to 11,078.67. The FBM 70 Index dipped 242.17 points to 15,875.58 and the FBM ACE Index dropped 52.87 points to 4,347.98. By sector, the Financial Services Index shed 105.37 points to 17,363.01, the Industrial Products and Services Index eased 1.62 points to 145.65, and the Plantation Index narrowed 45.92 points to 7,174.60. However, the Energy Index rose 13.33 points to 749.04.
