President Trump said on Tuesday that the U.S. was considering offering financial support to the United Arab Emirates, an oil-rich ally that has been contending with economic fallout from the war in Iran, the New York Times reported. The war has damaged oil and gas infrastructure throughout the Middle East, dealing a blow to economies that rely on the Strait of Hormuz to transport crude around the world. The U.A.E. is an unlikely recipient of economic support, and the fact that it has inquired about assistance demonstrates the cascading effects of the conflict.
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The International Monetary Fund and Lebanon are discussing options for providing fast-track assistance to help the country absorb the effect of the Middle East war, Bloomberg News reported. The conversations are focused on some type of financing instrument that would give Lebanon access to between $800 million and $1 billion, money that would be earmarked for budget support and humanitarian response.
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Central banks may need to inflict much more economic pain to control inflation fueled by a long Middle East war than they did to control the spike in prices after the pandemic, the International Monetary Fund's chief economist said, Reuters reported. When Russia's invasion of Ukraine in 2022 drove oil prices above $100 a barrel, an already overheated post-COVID economy meant small increases in interest rates went a long way to cool demand, IMF Chief Economist Pierre-Olivier Gourinchas said in an interview on Tuesday.
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Iran’s demand that oil tankers pay transit tolls in cryptocurrency for passing through the Strait of Hormuz has cast a new light on the country’s $7.8 billion crypto economy and the role digital currencies play for regimes operating outside the mainstream financial system, the Wall Street Journal reported.
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The Iran war is darkening the outlook for the world economy — whether or not a fragile ceasefire holds, the head of the International Monetary Fund warned on Thursday, the Associated Press reported. Managing Director Kristalina Georgieva said that the fund will downgrade its forecast for the world economy next week. “Had it not been for this shock, we would have been upgrading global growth,” Georgieva said in remarks before next week's IMF-World Bank spring meetings.
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Iran told mediators it would limit the number of ships crossing the Strait of Hormuz to around a dozen a day and charge tolls under the cease-fire struck by President Trump, showing Tehran plans to tighten its grip on the world’s most important energy-shipping lane, the Wall Street Journal reported. Ships that pass will have to coordinate with the Islamic Revolutionary Guard Corps, the powerful paramilitary group that has been labeled a terrorist organization by the U.S. and the European Union, Arab mediators said.
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U.S. President Donald Trump said on Wednesday that imports from countries supplying Iran with military weapons will face immediate 50 per cent tariffs with no exemptions, announcing the threatened duty in a social media post just hours after agreeing to a two-week ceasefire with Tehran, Reuters reported.
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Egypt's non-oil private sector deteriorated at its sharpest pace in almost two years in March, as the Middle East wardrove up costs and dampened client demand, a closely watched business survey showed on Sunday, Reuters reported. The headline S&P Global Egypt Purchasing Managers' Index fell for a fourth consecutive month, dropping to 48.0 in March from 48.9 in February — its lowest reading since April 2024. The figure remained below the 50.0 threshold that separates growth from contraction, though it was broadly in line with the survey's long-run average of 48.2.
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