China has emerged as the sole winner in Asia from the strait of Hormuz crisis, according to a report published on Tuesday. The report by the Asia Group thinktank concluded that China had weathered the storm of the global commodities crisis resulting from the closure of the Middle Eastern waterway, and also stood to gain from the economic and geopolitical trends sparked by the wider conflict. Iran virtually closed the strait, a vital waterway through which much of the world’s oil and gas flows, after the US and Israel launched…
Tag: Commodities
Petrol prices in Australia are now lower than before the Iran war began. Is the oil crisis over and what happens next?
Australians were warned soon after the Middle East conflict started that the country could run short on fuel, with prices rising to record levels owing to disrupted oil supplies. Now, amid an uneasy peace deal and continued supply disruptions, petrol prices are lower than they were before the conflict began and official warnings over fuel usage have largely disappeared. Why haven’t we run out of fuel? Why were we told to cut back? And what will happen now? How did refiners keep getting oil? The US-Israel war on Iran closed…
The World Is Draining Oil Reserves, Raising Pressure for a Peace Deal
The world is quickly depleting its stores of oil, putting more pressure on President Trump to reach a deal with Iran that would quickly get more fuel flowing out of the Persian Gulf. Vast stockpiles of oil, gasoline and other fuels have helped fill the hole in global energy supplies created by the U.S.-Israeli war with Iran. But those reserves, which companies and governments stash in giant steel storage tanks and underground salt caverns, are running low in some places. This week, U.S. government stockpiles were poised to hit their…
Revealed: the internal BHP memo that slammed the brakes on world’s biggest miner’s climate push
In the middle of 2019, London was sweltering through a heatwave. Temperature records tumbled. Frail, ill and elderly people died in their hundreds. In a city not built for heat, trains were brought to a halt. Railway lines threatened to buckle and sagging power lines caused spot fires along the tracks. Across the channel, Belgium, the Netherlands and Germany also hit record temperatures. During the hottest week in late July, the then global chief executive of one of the world’s worst polluters was preparing to take the stage at a…
BHP quietly scrapped plan to build Pilbara plant that would have drastically cut emissions
BHP quietly dumped plans for an iron ore processing facility that would have cut emissions drastically, despite internally rating it as having “excellent social value” and being “well-aligned” to its shareholder-endorsed climate plan and decarbonisation targets. In 2025 the mining giant was well advanced in its plans to build a beneficiation plant near its Jimblebar open-cut mine in the Pilbara, which would greatly improve the purity and quality of its iron ore. BHP knew higher quality iron ore was desired by steelmakers across the globe, including in China, where government…
The Guardian view on India’s Iran shock: Asia’s neoliberal era starts to fracture | Editorial
The Indian prime minister’s call for sacrifice last week marks a fundamental shift. He urged the country’s 1.4 billion people to consume less fuel and fertiliser, buy less gold and curb foreign travel as global energy prices surge because of the war in Iran. The message, redolent of the Covid-era restrictions, suggests something larger: a retreat from neoliberal globalisation in Asia and the return of strategic economic management. The Hindu nationalist Narendra Modi waited for key regional elections to finish before pressing for the austerity measures. He was following other Asian…
The great energy pivot: US oil and Chinese solar are the winners in Trump’s war on Iran
In the open seas, an armada of empty tankers has quietly turned west. A record number of super-sized vessels are now heading to the US, where oil drillers and refineries are preparing to profit from Donald Trump’s war in the Middle East. Almost 30 of these vessels, each able to hold 2m barrels of oil, are contracted to load US crude, destined for a global market facing the biggest supply crisis in history. It is just over five years since the shale revolution made the US a net energy exporter…
A day in the life of Asia’s fuel crisis
4.30am Kaipara, New ZealandJames Brady, farmer We’ve got a small dairy farm, north of Auckland. We milk 200 cows and have a small amount of beef cattle and young stock. We start about 4.30am in the morning – checking cows, feeding, milking and then we do it again in the afternoon. Most of the day is spent tending to stock, moving animals, and we’re busy renewing pastures at the moment. Diesel is our main fuel – we run two tractors and machinery. We have quad bikes that run on petrol.…
The Guardian view on China and Iran: the war poses bigger questions for Beijing than where to get its oil | Editorial
For years, official Chinese rhetoric on Iran invoked their shared historical status as grand civilisations that have struggled against western aggression. Bilateral ties date back more than half a century. In 2021, they signed a comprehensive strategic agreement pledging $400bn of Chinese investment. And China’s economy is already flagging; it has just set its lowest growth target since 1991, underlining the importance of stability for Beijing. So its muted response since the US and Israel launched their war is striking. Beijing condemned the attack, but it was Washington that postponed…
China has been preparing for a global energy crisis for years. It is paying off now
Xi Jinping has been preparing for a crisis like this for years. China must secure its energy supply “in its own hands”, its president was reported to have said during a visit to one of its vast oilfields in 2021. The US-Israel war on Iran plunged the Middle East into a deep conflict, with the strait of Hormuz – one of the most important waterways in global trade – all but closed and key energy facilities across the region under attack. Oil exports from the Middle East have tumbled 61%…