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2025-06-16 12:04

VIENNA, June 16 (Reuters) - U.N. nuclear watchdog chief Rafael Grossi provided an update on Monday on the situation at Iran's nuclear facilities after Israel launched military strikes and said there was no sign of further damage at the Natanz or Fordow enrichment sites. Grossi and the International Atomic Energy Agency he heads had previously reported that the smallest of Iran's three enrichment plants, an above-ground pilot plant at the sprawling Natanz nuclear complex, had been destroyed. Sign up here. While there was no sign of a physical attack on the bigger underground enrichment plant at Natanz, its power supply was destroyed, which may have damaged the uranium-enriching centrifuges there. No damage was seen at the Fordow plant dug into a mountain. "There has been no additional damage at the Natanz Fuel Enrichment Plant site since the Friday attack, which destroyed the above-ground part of the Pilot Fuel Enrichment Plant," Grossi said in a statement to an exceptional meeting of his agency's 35-nation Board of Governors. Having said over the weekend that Israeli strikes damaged four buildings at the Isfahan nuclear facilities including the uranium conversion facility that processes "yellowcake" uranium into uranium hexafluoride, the feedstock for centrifuges, so it can be enriched, he elaborated on the damage there. "At the Esfahan nuclear site, four buildings were damaged in Friday's attack: the central chemical laboratory, a uranium conversion plant, the Tehran reactor fuel manufacturing plant, and the UF4 (uranium tetrafluoride) to EU metal processing facility, which was under construction," he said. "The (International Atomic Energy) Agency is and will remain present in Iran. Safeguards inspections in Iran will continue as soon as safety conditions allow, as is required under Iran's NPT (Non-Proliferation Treaty) safeguards obligations," he added. https://www.reuters.com/world/china/iaea-chief-says-no-further-damage-iranian-enrichment-facilities-2025-06-16/

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2025-06-16 12:02

BEIJING, June 16 (Reuters) - China's market regulator has granted conditional approval for global agribusiness Bunge Global SA's (BG.N) , opens new tab merger with Glencore-backed grain handler Viterra, it said on Monday, clearing the final hurdle for the $34 billion mega-deal announced two years ago. Confirmation came after Bunge announced it had received regulatory approval from China last Friday. Sign up here. The regulator said the merged company's increased market share and control could potentially reduce competition in China's imported soybean, barley, and rapeseed markets, and thus approved the deal with conditions. Under these conditions, Bunge and Viterra committed to five obligations, including a requirement to report quarterly sales volumes to Chinese customers within 30 days after each quarter’s end. They must also maintain a "timely, stable, reliable, and sufficient" supply of soybeans, rapeseed, and other agricultural products, "making every effort" to uphold this during global crop shortages. China's approval was the last regulatory green light Bunge needed after conditional approvals from Canada, the European Union, and other markets in recent months. The deal will create a global crop trading and processing giant rivaling Archer-Daniels-Midland (ADM.N) , opens new tab and Cargill, though competition concerns and regulatory scrutiny delayed the closing by nearly a year. https://www.reuters.com/markets/commodities/china-grants-conditional-approval-bunges-merger-with-viterra-2025-06-16/

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2025-06-16 11:44

HOUSTON, June 16 (Reuters) - A U.S. court-organized auction of shares in the parent company of Venezuela-owned Citgo Petroleum has entered its final stages, with bidders submitting improved offers for the U.S. refiner and creditors hoping to recover a portion of the proceeds. The auction stems from an eight-year-old case that Canadian miner Crystallex initiated in Delaware against Venezuela. The court found Citgo's parent, PDV Holding, liable for Venezuela's debts and expropriations, paving the way for over a dozen other creditors to pursue compensation of nearly $19 billion. Sign up here. Despite delays, the auction has progressed, especially since last year, through two bidding rounds. A $3.7 billion offer by Contrarian Funds' affiliate, Red Tree Investment, was selected in March as a starting bid and is now being challenged by rivals. Besides Red Tree, companies competing with improved bids include trading house Vitol, and a consortium including an affiliate of Gold Reserve (GRZ.V) , opens new tab, Rusoro Mining (RML.V) , opens new tab, and Koch. Elliott Investment Management's affiliate Amber Energy is also considering whether to submit a bid, following a separate court decision favoring a possible offer, according to a source familiar with the matter. A court officer overseeing the auction, who last month said new bidders could emerge right before a June 18 deadline to submit offers, must recommend the auction's winner by July 2. The judge and parties in the case are expected to attend a final hearing on August 18. If Venezuela, which owns 100% of the refiner and its U.S.-based parent companies, fails to retain some equity, it would lose its most significant overseas asset. The country, with foreign debt reaching $150 billion, has already lost other assets in Europe and Asia to creditors. Delaware Judge Leonard Stark has left open a possibility for parties representing Venezuela to submit an offer. But boards supervising the seventh-largest U.S. refiner would need to secure backing from politicians in both Caracas and Washington, a challenge given U.S. sanctions on the OPEC nation and otherwise strained ties. Prior to the sanctions, Citgo's 807,000-barrel-per-day refining network was a primary processor of Venezuela's heavy sour crudes. Since Citgo cut ties with its ultimate parent, Caracas-based PDVSA, in 2019, Venezuela has struggled to find new markets for its oil, while the Houston-based refiner has sourced crude from other suppliers. Venezuela's opposition has worked for years to retain Citgo, including funding legal defenses and lobbying in Washington. The U.S. Treasury Department, which has shielded Citgo from creditors in recent years, must approve the auction's eventual winner. Opponents of Venezuelan President Nicolas Maduro have stated Citgo could aid the nation's economic recovery if democracy is restored. Maduro's officials have rejected U.S. sanctions and called the auction the "robbery" of a sovereign asset. Yes. Many creditors including ConocoPhillips (COP.N) , opens new tab, which holds the largest claims for almost $12 billion, and Gold Reserve, have pursued legal action outside of the U.S. to seize Venezuela-owned assets, such as bank accounts, tankers and PDVSA-controlled storage facilities. The creditors, who rejected the outcome of a bidding round last year due to conditions imposed by the selected winner, can submit objections if dissatisfied with its results. They can also continue parallel cases in other U.S. courts. Accumulating legal costs and uncertain recovery prospects led three of the 18 creditors originally cleared by the court to withdraw. Others, including an owner of artifacts that belonged to Venezuelan independence hero Simon Bolivar, did not fulfill all court requirements to participate. Unlikely. While Citgo was valued between $11 billion and $13 billion as part of the Delaware case, expectations are that the auction will yield no more than $8 billion, factoring in potential side agreements with key creditors, like bondholders. Citgo's recent weak performance, including a profit that plummeted to $305 million last year from $2 billion in 2023, is also expected to affect its valuation. These factors suggest that more than half of the 15 registered creditors, collectively claiming $18.9 billion, may not receive distributions from the auction. https://www.reuters.com/business/energy/qa-is-venezuela-about-lose-citgo-its-most-prized-foreign-asset-2025-06-16/

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2025-06-16 11:43

LAGOS, June 16 (Reuters) - The Dangote Oil Refinery will in August begin directly begin supplying fuel to retail stations, manufacturers, telecoms firms, and other large users, a move that could enhance supply but puts it in direct competition with local fuel traders. Africa's biggest refinery with 650,000 bpd capacity began processing gasoline for the local market last year and has allowed local fuel traders lift products from its refinery. Now it seeks to take on distribution. To facilitate the undertaking, the refinery said in a statement on Sunday that it had procured 4,000 new Compressed Natural Gas (CNG)-powered trucks, and will build over 100 CNG refuelling stations across the country. The refinery said it will also offer a credit facility, allowing purchases of 500,000 liters to access an additional 500,000 liters on credit for two weeks under bank guarantee. Dangote's planned deployment of 4,000 trucks is more than double the number of trucks currently in operation and this is unsettling local fuel traders. "In one fell swoop, he's trying to wipe us out," said Billy Gillis Harry, head of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN). The group comprising over 6,700 members said introducing cheaper CNG trucks poses a threat to the livelihood of truckers and will erode the businesses of traders supplying the telecom companies, retail stations and industries. Sign up here. https://www.reuters.com/business/energy/nigerias-dangote-refinery-supply-fuel-directly-challenging-local-traders-2025-06-16/

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2025-06-16 11:36

LONDON, June 16 (Reuters) - What matters in U.S. and global markets today I'm excited to announce that I'm now part of Reuters Open Interest (ROI) , opens new tab, an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Sign up here. World markets were calm on Monday, even in the face of this weekend's escalation of the Israel-Iran conflict, as volatile oil prices fell slightly from Friday's 4-month peak. I'll discuss all of today's market-moving news below. Today's Market Minute * Iranian missiles struck Israel's Tel Aviv and the port city of Haifa before dawn on Monday, killing at least eight people and destroying homes, prompting Israel's defense minister to warn that Tehran residents would "pay the price and soon". * Iran has told mediators Qatar and Oman that it is not open to negotiating a ceasefire while it is under Israeli attack, an official briefed on the communications told Reuters on Sunday, as the two foes launched fresh attacks and raised fears of a wider conflict. * A two-day manhunt ended on Sunday with the arrest of a 57-year-old man for allegedly killing a Minnesota Democratic state lawmaker and her husband while posing as a police officer, Governor Tim Walz said. * U.S. President Donald Trump's administration is considering significantly expanding its travel restrictions by potentially banning citizens of 36 additional countries from entering the United States, according to an internal State Department cable seen by Reuters. * When watching energy markets during times of heightened Middle East tensions, it can be helpful to look more at what is not happening, rather than fixating on the dramatic headlines. Read the latest from ROI columnist Clyde Russell. Markets calm despite Israel and Iran exchanging fire Israel began its military strikes with a surprise attack on Friday that targeted the top echelon of Iran's military command and damaged its nuclear sites. The move occurred after the United Nations nuclear watchdog declared for the first time in 20 years that Iran was in breach of its non-proliferation obligations. Iran has vowed retaliation and reiterating Tehran's official stance against developing nuclear weapons. Iran has always said its nuclear program is peaceful, although the Board of Governors of the U.N. International Atomic Energy Agency declared last week that Tehran was in violation of its non-proliferation obligations. Iran's foreign ministry and atomic energy organization said the findings were politically motivated and lacked technical or legal foundation. The attacks from both sides were far more extensive than the more limited exchanges between the two in recent years, but oil production and export facilities have largely been unaffected so far. Oil prices fell back after jumping about 7% to 4-month peaks on Friday, with U.S. crude slipping to $72.40 per barrel from last week's high of $77.62. Gold also retreated, having failed to breach April's record last week. U.S. Treasury yields held Friday's gains, but remain largely stuck in recent ranges as the Federal Reserve meets this week and prepares to release its quarterly economic forecasts. A 20-year bond auction will occur later today. Wall Street stock futures recovered some of Friday's losses before today's bell, and stocks in Asia and Europe rallied. Middle East bourses, however, continue to fall. Even as oil analysts and brokers put forward $100-plus forecasts on "worst-case" scenarios, crude remains down 8% year-on-year and still subdued historically, a critical factor for investors focused on the inflationary impact of any new oil shock. The last time crude topped $100 per barrel was after Russia's full-scale invasion of Ukraine in 2022, but it sustained those heights for less than four months. Prior to that, you have to go back over a decade to see crude hit triple digits. A key question is whether the conflict will lead to disruptions in the Strait of Hormuz. About a fifth of the world's total oil consumption, or some 18 to 19 million barrels per day of oil, condensate and fuel, passes through the strait. The possibility of further escalation looms over a meeting of the Group of Seven leaders in Canada, with U.S. President Donald Trump expressing hope on Sunday that a deal could be done. But there is no sign of the fighting abating as we enter the fourth day of war. As an indication of how far the situation could spiral, two U.S. officials told Reuters that Trump had vetoed an Israeli plan to kill Iran's Supreme Leader Ayatollah Ali Khamenei. While the G7 talks will likely center on the Middle East conflict, leaders will also discuss lowering the Russian oil cap, with European nations and some others expected to go ahead with the move and further sanctions on Moscow even if Trump objects. Beyond geopolitics, it's a week jammed with central bank meetings. There is the Fed, of course, which is not expected to move rates lower until September. The Bank of Japan started its two-day policy meeting today. The trade and geopolitical uncertainties are widely expected to keep the BOJ on hold too. Likewise, the Bank of England is expected to stand pat until August. Perhaps the most notable central bank meeting of this week will involve the Swiss National Bank, which is widely expected to move policy rates back to zero. The likelihood of a cut into negative territory has also risen amid fresh franc strength and domestic price deflation. The franc flirted with its strongest level in more than 10 years against the dollar last week, but held steady on Monday. Chart of the day China's new home prices fell in May, extending two years of stagnation, official data showed on Monday, highlighting challenges in the sector despite several rounds of policy support measures. New home prices fell 0.2% month-on-month in May after showing no growth the previous month. From a year earlier, prices fell 3.5% in May. The market entered a prolonged slump in 2021, with debt-laden developers struggling to deliver homes that buyers had already paid for, further denting consumer confidence and hitting the wider economy. Monetary and fiscal supports have been extensive. But even though major cities had shown tentative signs of recovery in recent months, they saw a relapse as well in May, snapping a streak of five consecutive monthly gains. Today's events to watch * New York Federal Reserve June manufacturing survey * G7 summit in Kananaskis, Alberta * European Central Bank board member Piero Cipollone and Bundesbank President Joachim Nagel speak * U.S. Treasury sells $13 billion of 20-year bonds * U.S. corporate earnings: Lennar Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. https://www.reuters.com/business/finance/americas-markets-calm-israel-iran-war-rages-2025-06-16/

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2025-06-16 11:30

June 16 (Reuters) - Canada's main stock index closed up on Monday, led by information technology stocks, with investors shaking off concerns around escalating Middle East tensions and instead focusing on the Group of Seven summit. The S&P/TSX composite index (.GSPTSE) , opens new tab closed up 0.24% at 26,568.61. The commodity-heavy benchmark index fell 0.4% on Friday after a record-setting run last week, buoyed by rising commodity prices, lower-than-expected U.S. inflation data and optimism around the U.S.-China trade deal. Sign up here. Shortly after the open, the exchange touched an all-time high of 26,670.69 points. On TSX, the information and technology sector (.SPTTTK) , opens new tab was the top performer, closing up 1.36%, as the shares rebounded from Friday's sharp losses. Consumer discretionary <.GSPTTCD> closed up 0.3% and the heavy-weight financials (.SPTTFS) , opens new tab also gained ground, closing up 0.72%. On the downside, the energy sector (.SPTTEN) , opens new tab fell the most, closing down 0.5%, tracking oil prices. Metal mining (.GSPTTMT) , opens new tab shares also fell 0.04% as gold prices also slipped after hitting nearly an eight-week high. Among top gainers, uranium miner Denison Mines Corp (DML.TO) , opens new tab gained 12%, Ivanhoe Mines (IVN.TO) , opens new tab 8.6% and Algoma Steel (ASTL.TO) , opens new tab 6.89%, which made these stocks the three top performers of Monday's trade. Market optimism following a G7 draft statement on stability diminished after President Donald Trumpsaid it was a mistake to remove Russia from the group over a decade ago. The discussions are also expected to center on advancing trade deals, with investors closely watching prospects of Canada moving closer to a trade agreement with the U.S. Meanwhile, geopolitical tensions continued to dominate headlines as the conflict between Israel and Iran showed no signs of cooling, but oil prices edged lower after a 7% surge on Friday. "Investors are starting to price in that the conflict in the Middle East will be contained," said Ian Chong, portfolio manager at First Avenue Investment Counsel. This week's Fed monetary policy decision presents the next major challenge for markets. While the U.S. central bank is widely expected to keep interest rates unchanged on Wednesday, investors will watch for hints about potential rate cuts in the coming months. "(The) Fed will probably be on hold, especially with the Middle Eastern tension potentially driving oil prices higher, which is inflationary and I don't think the rhetoric will necessarily change coming out of the Fed," Chong added. https://www.reuters.com/markets/europe/tsx-futures-rebound-focus-shifts-g7-us-fed-meeting-2025-06-16/

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