International News 21 March 2025
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Trump administration lifts ban, Alaska ready for new oil fields
US Secretary of the Interior Doug Burgum has announced plans to open up more land for oil and gas leasing, as well as lift restrictions on the construction of LNG pipelines and mining roads in Alaska. This initiative is part of President Donald Trump's executive order to remove barriers to energy development in Alaska. The administration plans to reopen 82% of Alaska's National Petroleum Reserve for leasing, as well as 1.56 million acres in the Arctic National Wildlife Refuge for oil and gas drilling. Restrictions along the Trans-Alaska Pipeline Corridor and the Dalton Highway will also be lifted, with the land being turned over to the State of Alaska. These measures are designed to streamline the development of the Ambler Road project and the Alaska Liquefied Natural Gas Pipeline. The objective is to leverage Alaska's substantial resources for the benefit of the state and its residents.
US imposes new sanctions on Iranian oil, China's ‘teapot’ refineries are the casualties
The United States (US) has announced new sanctions related to Iran, specifically targeting a 'teapot' refinery in China, as well as ships supplying crude oil to the facility. This constitutes the fourth round of US sanctions on Iranian oil exports since President Donald Trump's declaration in February to reduce Iran's oil exports to zero as part of a 'maximum pressure' campaign. The objective of these measures is to prevent Tehran from acquiring nuclear weapons and funding militant groups. The US Department of the Treasury has sanctioned Shandong Shouguang Luqing Petrochemical Co., Ltd, the China-based refinery. China, the largest importer of Iranian oil, has rejected the US sanctions and established a trade system with Iran using the Chinese yuan and a network of intermediaries to bypass US regulators.
Fed FOMC Results Statement 19 March 2025
The Federal Reserve Committee has stated that the economy is growing steadily, with a stable unemployment rate at a low level. However, inflation remains somewhat high. The Committee's long-term goals are to achieve maximum employment and an inflation rate of 2 per cent. The economic outlook is uncertain, and the Committee is aware of risks within its mandate. To support its objectives, the Committee has decided to maintain the federal funds rate target range at 4.25-4.25%. Further adjustments to this range will be evaluated based on incoming data, the evolving outlook, and the balance of risks. The Committee will also reduce its holdings of government and agency debt securities, and agency-guaranteed mortgage securities. From April, the monthly redemption limit for government debt securities will decrease from $25 billion to $5 billion. The Committee remains committed to achieving maximum employment and returning inflation to its target of 2 per cent.