2025-06-21 07:56
NEW DELHI, June 21 (Reuters) - India will never restore the Indus Waters Treaty with Islamabad, and the water flowing to Pakistan will be diverted for internal use, Home Minister Amit Shah said in an interview with Times of India on Saturday. India put into "abeyance" its participation in the 1960 treaty, which governs the usage of the Indus river system, after 26 civilians in Indian Kashmir were killed in what Delhi described as an act of terror. The treaty had guaranteed water access for 80% of Pakistan's farms through three rivers originating in India. Sign up here. Pakistan has denied involvement in the incident, but the accord remains dormant despite a ceasefire agreed upon by the two nuclear-armed neighbours last month following their worst fighting in decades. "No, it will never be restored," Shah told the daily. "We will take water that was flowing to Pakistan to Rajasthan by constructing a canal. Pakistan will be starved of water that it has been getting unjustifiably," Shah said, referring to the northwestern Indian state. The latest comments from Shah, the most powerful cabinet minister in Prime Minister Narendra Modi's cabinet, have dimmed Islamabad's hopes for negotiations on the treaty in the near term. Last month, Reuters reported that India plans to dramatically increase the water it draws from a major river that feeds Pakistani farms downstream, as part of retaliatory action. Pakistan's foreign ministry did not immediately respond to Reuters' request for comments. But it has said in the past that the treaty has no provision for one side to unilaterally pull back and that any blocking of river water flowing to Pakistan will be considered "an act of war". Islamabad is also exploring a legal challenge to India's decision to hold the treaty in abeyance under international law. ($1 = 86.5600 Indian rupees) https://www.reuters.com/world/asia-pacific/india-says-it-will-never-restore-indus-water-treaty-with-pakistan-2025-06-21/
2025-06-21 07:40
MOSCOW, June 21 (Reuters) - Russia has repeatedly told Israel that there is no evidence Iran is aiming to get nuclear weapons, Sky News Arabia on Saturday quoted Russian President Vladimir Putin as saying in an interview. "Russia, as well as the IAEA (International Atomic Energy Agency), has never had any evidence that Iran is preparing to obtain nuclear weapons, as we have repeatedly put the Israeli leadership on notice," Sky News Arabia quoted Putin as saying. Sign up here. Russia is ready to support Iran in developing a peaceful nuclear programme, Putin was quoted as saying, adding that Iran has the right to do so. Speaking at an economic forum in St. Petersburg on Friday, Putin said Russia was sharing its ideas on how to stop the bloodshed in the Iran-Israel conflict with both sides. He did not give details of those ideas. https://www.reuters.com/world/middle-east/putin-says-russia-has-told-israel-theres-no-evidence-iran-wants-nuclear-weapons-2025-06-21/
2025-06-21 05:01
Investors wait for Iran response as Trump claims military success Higher oil prices could boost inflation, sap consumer confidence US dollar could see near-term strength from safe-haven demand NEW YORK, June 22 (Reuters) - A U.S. attack on Iranian nuclear sites could push oil prices even higher and trigger a knee-jerk rush to safety, investors said, as they assessed how the latest escalation of tensions would ripple through the global economy. The reaction in Middle East stock markets, which trade on Sunday, suggested investors were assuming a benign outcome, even as Iran intensified its missile attacks on Israel in response to the sudden, deep U.S. involvement in the conflict. Sign up here. U.S. President Donald Trump called the attack "a spectacular military success" in a televised address to the nation and said Iran's "key nuclear enrichment facilities have been completely and totally obliterated". He said the U.S. military could go after other targets in Iran if the country did not agree to peace. Iran said it reserves all options to defend itself, and warned of "everlasting consequences". Speaking in Istanbul, Iran's Foreign Minister Abbas Araqchi said Tehran was weighing its options for retaliation and would consider diplomacy only after carrying out its response. Investors said they expected U.S. involvement would cause a stock market selloff and a possible bid for the dollar and other safe-haven assets when major markets reopen, but also said much uncertainty remained. "I think the markets are going to be initially alarmed, and I think oil will open higher," said Mark Spindel, chief investment officer at Potomac River Capital. "We don't have any damage assessment and that will take some time. Even though (Trump) has described this as 'done', we're engaged," Spindel said. "I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It's going to raise uncertainty and volatility, particularly in oil," he added. One indicator of how markets will react in the coming week was the price of ether, the second-largest cryptocurrency and a gauge of retail investor sentiment. Ether was down 8.5% on Sunday, taking losses since the first Israeli strikes on Iran on June 13 to 13%. Most Gulf stock markets, however, seemed unconcerned by the early morning attacks, with the main indexes in Qatar (.QSI) , opens new tab, Saudi Arabia (.TASI) , opens new tab and Kuwait (.BKP) , opens new tab up slightly or flat. Israel's Tel Aviv main index (.TA125) , opens new tab was at an all-time high. OIL PRICES, INFLATION A key concern for markets centers around the potential impact of Middle East developments on oil prices and thus on inflation. Rising inflation could dampen consumer confidence and lessen the chance of near-term interest rate cuts. Saul Kavonic, a senior energy analyst at equity research firm MST Marquee in Sydney, said Iran could respond by targeting American interests in the Middle East, including Gulf oil infrastructure in places such as Iraq or harassing ship passages through the Strait of Hormuz. The Strait of Hormuz lies between Oman and Iran and is the primary export route for oil producers such as Saudi Arabia, the United Arab Emirates, Iraq and Kuwait. "Much depends on how Iran responds in the coming hours and days, but this could set us on a path towards $100 oil if Iran respond as they have previously threatened to," Kavonic said. While global benchmark Brent crude futures have risen as much as 18% since June 10, hitting a near five-month high of $79.04 on Thursday, the S&P 500 (.SPX) , opens new tab has been little changed, following an initial drop when Israel launched its attacks on Iran on June 13. Jamie Cox, managing partner at Harris Financial Group, said oil prices would likely spike before leveling off in a few days as the attacks could lead Iran to seek a peace deal with Israel and the United States. "With this demonstration of force and total annihilation of its nuclear capabilities, they’ve lost all of their leverage and will likely hit the escape button to a peace deal," Cox said. Economists warn that a dramatic rise in oil prices could damage a global economy already strained by Trump's tariffs. Still, any pullback in equities might be fleeting, history suggests. During past eruptions of Middle East tensions, including the 2003 Iraq invasion and the 2019 attacks on Saudi oil facilities, stocks initially languished but soon recovered to trade higher in the months ahead. On average, the S&P 500 slipped 0.3% in the three weeks following the start of conflict, but was 2.3% higher on average two months following the conflict, according to data from Wedbush Securities and CapIQ Pro. DOLLAR WOES An escalation in the conflict could have mixed implications for the U.S. dollar, which has tumbled this year amid worries over diminished U.S. exceptionalism. In the event of U.S. direct engagement in the Iran-Israel war, the dollar could initially benefit from a safety bid, analysts said. "Do we see a flight to safety? That would signal yields going lower and the dollar getting stronger," said Steve Sosnick, chief market strategist at IBKR in Greenwich, Connecticut. "It’s hard to imagine stocks not reacting negatively and the question is how much." Jack McIntyre, portfolio manager for global fixed income at Brandywine Global Investment Management in Philadelphia, said it was uncertain whether U.S. Treasuries would rally after the U.S. attack, largely due to the market's hypersensitivity to inflation. "This could lead to regime change (which) ultimately could have a much bigger impact on the global economy if Iran shifts towards a more friendly, open economic regime," said McIntyre. https://www.reuters.com/business/energy/middle-east-tensions-put-investors-alert-weighing-worst-case-scenarios-2025-06-21/
2025-06-21 04:16
TAIPEI, June 21 (Reuters) - Taiwan's central bank governor warned on Saturday that rapidly rising U.S. debt could be "unfavourable" to the outlook for U.S. Treasuries and that U.S. President Donald Trump's trade policies have made investors cautious. Taiwan's $593 billion in foreign exchange reserves are more than 80% made up of U.S. Treasury bonds, according to the central bank, which said earlier this month that Treasuries were "sound" and still favoured by investors. It added there were no worries about the dollar's position as the leading international reserve currency. Sign up here. Governor Yang Chin-long, in a speech posted on the central bank's website, said Trump's repeated criticisms of the U.S. Federal Reserve's monetary policy have caused concerns about its independence. "In addition, Trump 2.0's trade policy has made investors hesitant about holding U.S. Treasury bonds; Trump's budget, the 'One Big Beautiful Bill Act,' may cause U.S. debt to expand too quickly, which is unfavourable to the outlook for U.S. sovereign debt," he said. "All of these have had a significant impact on the international monetary system centred on the U.S. dollar and based on U.S. creditworthiness." Trump's sweeping tax-cut and spending bill is the centerpiece of his domestic agenda. The bill would lead to a larger-than-expected $2.8 trillion increase in the federal deficit over the decade, despite a boost to U.S. economic output, the nonpartisan Congressional Budget Office projected on Tuesday. Trump, in his first few weeks in office, also announced sweeping tariffs on a broad swathe of countries and trading partners, including Taiwan, only to pause them for 90 days in April to allow for talks to take place. Yang said Trump had been hoping the tariffs could resolve the U.S. trade deficit. "However, the tariff policy not only fails to solve the structural problems, it will also impact the U.S. economy, and threaten to further affect the outlook for global trade and the economy." https://www.reuters.com/world/asia-pacific/taiwan-central-bank-says-us-debt-rising-too-fast-may-impact-trust-treasuries-2025-06-21/
2025-06-21 04:13
KUALA LUMPUR, June 21 (Reuters) - Malaysia said on Saturday it would maintain anti-dumping duties on imports of Chinese and Japanese cold rolled coils of iron and non-alloy steel more than 1,300 mm wide. But the trade ministry said in a statement it would terminate anti-dumping duties on imports from South Korea and Vietnam on Monday. Sign up here. The duties, to be in effect for five years, will exclude imports from all four countries of tin mill black plate and merchandise imported for automotive purposes, and finwall for transformer use. Three Chinese producers face duty rates of 4.82%, 4.76% and 8.74% while other Chinese producers and exporters face 26.38% duties. Japanese exporters will be subjected to a 26.39% duty. https://www.reuters.com/markets/commodities/malaysia-keeps-anti-dumping-duties-some-chinese-japanese-iron-steel-2025-06-21/
2025-06-21 02:57
SINGAPORE, June 21 (Reuters) - UK explorer EnQuest (ENQ.L) , opens new tab expects to complete the acquisition of Harbour Energy's (HBR.L) , opens new tab business in Vietnam in the next month or two and plans to drill new wells to increase oil production there, CEO Amjad Bseisu said. The $84 million acquisition is part of the North Sea-focused company's expansion outside its home market. Sign up here. EnQuest will acquire just over a 53% equity interest in the Chim Sao and Dua production fields in Vietnam. "We were excited about the asset there as we see development opportunities, and we also see some in-fill opportunities," Bseisu told Reuters earlier this week. "So we'll be looking, once we take over, to investing in the field and trying to increase its productivity." In offshore Peninsular Malaysia, the company is on track to start producing non-associated gas from the Seligi field next year, Bseisu said. Daily gas production will be increased from 14,000-15,000 barrels of oil equivalent to 25,000 boe, he added. The company, along with energy majors, is investing in gas exploration and production in Southeast Asia to meet rising power demand from growing populations and a proliferation of data centres in the region. "Asia is our biggest growth engine now for gas," Bseisu said. In Indonesia, EnQuest is part of a consortium awarded in April the production and sharing for Gaea and Gaea II blocks, which are near the BP-operated (BP.L) , opens new tab Tangguh LNG plant. Bseisu said EnQuest's strategy in Indonesia is to try and find gas close to existing plants. He added that domestic gas production is more attractive than liquefied natural gas (LNG) for governments as it creates revenue, jobs and expands the industry. https://www.reuters.com/business/energy/enquest-finalise-84-million-vietnam-oilfield-acquisition-soon-ceo-says-2025-06-21/
