Live Iran threatens to retaliate against Gulf energy and water systems after Trump ultimatum
10:00
Opinion: Despite decades of energy diversification, China still can’t quit Iranian oil
China already began 2026 with the lowest growth target since 1991. The looming energy crisis arising from the Iran war threatens to jeopardise even that, says Bernard Aw, chief economist for the Asia-Pacific at risk management firm Coface.
It could shave off 0.2 percentage points from economic growth if crude oil stays at US$100.
Despite years of energy diversification and the electrification of the transport system, China remains the world’s largest oil importer and depends on the Middle East for about half of its crude supplies, he explains in his Opinion piece today.
Its oil import strategy has also long relied on purchasing heavily discounted crude under international sanctions - from Russia, Venezuela and Iran - and analysts widely believe that much of its Malaysian crude originates in Iran, relabelled or transferred through ship-to-ship methods to avoid detection.
Beijing’s response on March 5 – ordering refiners to halt all fuel exports including petrol, diesel and aviation fuel to ensure domestic supply – signals the seriousness of the threat, he adds. This is a precautionary measure that prioritises domestic stability over commercial revenue, a decision taken only when supply risks are deemed significant.
China is certainly better prepared compared to a decade ago and able to activate multiple policy levers - releasing strategic reserves, mandating refinery run cuts and strict energy rationing.
But the Iran conflict exposes persistent vulnerabilities for China and 2026 may be the year Beijing decides to accelerate its transition to clean energy.
09:02
Saudi pipeline from 1980s offers relief to global oil supply pressure
With the closure of the Hormuz strait, Saudi Arabia rolled out a contingency plan to keep its oil flowing. Its cornerstone is a pipeline measuring 1,200km, built in the 1980s, which spans the Arabian Peninsula from massive oil fields in eastern Saudi Arabia.
State-owned oil giant Saudi Aramco now faces the test of how quickly and sustainably it can ramp up flows through the new route.
Crude exports from port Yanbu on the Red Sea - where the pipeline empties out - hit a five-day rolling average of 3.66 million barrels on March 20, according to ship-tracking data compiled by Bloomberg. This is about half of Saudi Arabia’s prewar total.
But March 18 loadings were briefly halted after an Iranian attack, a reminder that flows can be uneven in such a volatile environment.
Still, the pipeline route offers a vital release valve to the pressure building on global oil supplies.
PHOTO: REUTERS
08:00
Civilian livelihoods in jeopardy after Iran, US exchange threats over energy, water infrastructure
As the war enters its fourth week, Iran and the US exchanged threats over energy targets and other key infrastructure such as water.
The prospect of tit-for-tat strikes on civilian infrastructure could further rattle global markets when they reopen on Monday morning, and threaten the livelihoods of millions of people in the region who rely almost exclusively in some cases on desalination plants for water.
07:00
The situation so far
Iran on Sunday vowed to “irreversibly” destroy key infrastructure across the Middle East if US President Donald Trump acts on threats to knock out the Islamic republic’s power plants unless the Strait of Hormuz was swiftly reopened.
Tehran also vowed to close the sea lane completely if Mr Trump follows through on the ultimatum, choking off what little traffic has continued to transit the vital shipping lane for oil and gas.
The tit-for-tat threats came as the war that has seen drone and missile strikes across the Middle East, has sent energy prices soaring and has triggered fears for the world economy entered its fourth week.
Here's a recap:
- Lebanese Prime Minister Nawaf Salam said on Sunday that members of Iran’s Revolutionary Guards are commanding Hezbollah’s operations in the group’s ongoing war against Israel.
- Israeli Prime Minister Benjamin Netanyahu vowed to target leaders of Iran’s Revolutionary Guards “personally”, during a visit to one of the towns struck by Iran on Saturday.
- Iran’s representative to the UN maritime agency said ships that are not linked to “Iran’s enemies” can pass the strait by coordinating security and safety arrangements with Tehran.
- The war has reached a “perilous stage” with strikes around nuclear sites in Iran and Israel, the World Health Organization warned on Sunday, as it called for maximum restraint.
- Sri Lanka has raised fuel prices by 25 per cent, while the Philippines will temporarily allow the use of dirtier fuels amid an oil crisis that is reducing power supply to a town in Quezon province.
