Main developments
Donald Trump said he was considering “winding down” the US’s war against Iran as the American military is “getting very close” to meeting its objectives. He also said he did not want a ceasefire between the US, Israel and Iran.
The Pentagon ordered the deployment of thousands more troops on three warships to the Middle East, as it continued to build up its forces for the war against Iran.
The US will allow countries to buy Iranian oil stranded at sea in an effort to tame spiralling energy prices
The S&P 500 closed 1.5 per cent lower on Friday and fell for a fourth straight week as signs of escalation in the Gulf, rising oil prices and the prospect of higher interest rates spooked investors.
Brent crude settled 3.3 per cent higher at $112.19 per barrel on Friday for its fifth weekly gain in a row.
The Iran war has caused the gravest energy shock of all time, the head of the International Energy Agency warned, adding that it could take six months or more to fully restore oil and gas flows.
Airline industry hit by biggest crisis since pandemic
The airline industry is in the grip of its worst crisis since the pandemic, as the Middle East war has grounded flights and raised the spectre of fuel shortages.
Executives have sounded the alarm on the repercussions for an industry exposed to a prolonged increase in oil prices, disruption to the Gulf’s hub airports and a potential hit to global demand.
Passengers are set to face a steep increase in ticket prices. Jet fuel, which accounts for a third of airlines’ costs, has doubled and is still rising.
The 20 largest publicly listed airlines have lost about $53bn in market capitalisation since the war began, according to FT calculations.
US eases some Iranian oil sanctions to ease energy supply pressures
The US will allow countries to buy Iranian oil stranded at sea in an effort to tame energy prices, which have leapt since the start of the war against Iran.
The temporary waiver would quickly bring about 140mn barrels of oil to global markets, US Treasury secretary Scott Bessent said.
Iranian oil was “being hoarded by China on the cheap”, he said, and “temporarily unlocking this existing supply” would expand the volumes available to the international community.
“In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” Bessent said in a statement on Friday evening.
The authorisation was limited to oil already in transit and does not allow new purchases or production, Bessent confirmed.
Brent crude, the global oil benchmark, soared to $119 a barrel on Thursday.