Middle East war: Global economic fallout

Japan to release oil reserves 

Japan will release another part of its strategic oil reserves and tap into joint stockpiles held by producing nations in the country, Prime Minister Sanae Takaichi said Tuesday.

Japan -- which depends on the Middle East for 95 percent of its oil imports -- announced this month that it was starting to release its strategic oil reserves, which are among the world's largest.

Energy prices have surged since the United States and Israel's war against Iran triggered Tehran's retaliation that disrupted oil deliveries through the Strait of Hormuz.

Philippines leans on coal

The Philippines will "temporarily" be forced to lean even more heavily on coal-fired power plants given the soaring costs of liquified natural gas (LNG), energy secretary Sharon Garin said Tuesday.

"We talked to the generation companies, the coal-powered plants, to check how much they can increase their generation," Garin said, calling it a "temporary measure" that could start as early as April 1.

Asian stocks rise

Asian markets enjoyed a positive start on Tuesday after US President Donald Trump delayed strikes on Iranian energy sites and hailed "very good" talks with Tehran.

Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Taipei and Manila were all up, though the gains were pared as the morning wore on.

Wall Street stocks had closed higher Monday following Trump's hailing of the talks with an unidentified Iranian official.

But Oil prices edged back up after Iranian media said there had been no talks between Tehran and Washington.

Ukraine eyeing diesel supply

Ukrainian President Volodymyr Zelensky on Monday ordered the government to ensure stable diesel supplies, as the war in the Middle East sends oil prices spiralling.

Russia has battered Ukraine's refining capacity since invading in 2022, making Kyiv heavily dependent on fuel imports.

Diesel prices in Ukraine have surged almost 25 percent since the outbreak of the US-Israeli war against Iran, with analysts warning that supply prospects for April remained unclear.

Oil disruption 'temporary'

US Energy Secretary Chris Wright said oil market disruptions were "temporary," speaking at a conference in Houston.

But Mike Wirth, chief executive of the US energy giant Chevron, warned that oil prices had yet to fully factor in fallout from the blockade.

"In particular, Asia is facing some real concerns about supply," Wirth said, citing government measures to conserve stocks.

TotalEnergies chief Patrick Pouyanne meanwhile said he expected "very high" liquefied natural gas prices by the summer if the Strait of Hormuz is not reopened.

IEA chief issues warnings

International Energy Agency chief Fatih Birol warned that the global economy was under "major threat" from the energy crisis caused by the Middle East war, adding that "no country will be immune".

At least 40 energy assets across nine Middle East countries were "severely" damaged due to the war, Birol added.

China limits fuel prices

China has limited the amount by which the country's retail fuel costs can rise, the government announced.

China's state planner, the National Development and Reform Commission, said it increased the maximum retail prices for gasoline and diesel by 1,160 yuan ($168) and 1,115 yuan per metric ton respectively, starting from midnight.