International News 16 June 2025
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Oil prices rise, Israel-Iran tensions spark supply disruption fears
Following the recent attack by Israel and Iran, there is a growing concern that oil prices in Asian markets may be subject to disruption due to potential export issues in the Middle East. Brent crude oil futures increased by 2.3% to reach US$75.93 per barrel, while West Texas Intermediate (WTI) crude oil rose by 2.2% to US$74.60 per barrel. The conflict resulted in a sharp rise in oil prices, with both benchmarks closing up by around 7%, reaching the highest level since January. The latest confrontation between Israel and Iran has resulted in civilian casualties and the potential for a broader regional conflict. Concerns about the market have also been expressed in relation to the Strait of Hormuz, a vital shipping lane through which a significant portion of global oil consumption passes daily. US President Donald Trump has expressed his desire for ceasefire negotiations to take place, while also acknowledging the possibility of further escalation.
The economy of the United Arab Emirates is now predominantly supported by non-oil sectors.
In 2024, the real gross domestic product (GDP) of the United Arab Emirates (UAE) totalled 1,776 billion dirhams, marking a 4% growth from the previous year. The non-oil sector demonstrated notable growth, reaching 1,342 billion dirhams, marking a 5% increase, while the oil-related sector contributed 434 billion dirhams. The UAE Minister of Economy, His Excellency Abdulla bin Touq Al Marri, has emphasised the success of the UAE's economic diversification strategy, with the non-oil sector now contributing to 75.5% of the total GDP. The trade sector contributed the most to the GDP, at 16.8%, followed by manufacturing at 13.5% and finance at 13.2%. Abdulla expressed that this progress reflects the UAE's transition towards an innovative and sustainable economy, bringing the country closer to achieving its GDP goal of 3 trillion dirhams in the next decade.
https://internasional.kontan.co.id/news/ekonomi-uni-emirat-arab-kini-ditopang-dari-non-migas
Nippon Steel to acquire 100% stake in US Steel with Trump's blessing
Following a challenging 18-month process involving union opposition and national security reviews, US President Donald Trump has approved Nippon Steel's $14.9 billion acquisition of US Steel. Trump's executive order permits the merger on the condition that the companies address national security concerns with the US Treasury Department. Both companies swiftly signed the agreement, committing to meet conditions and proceed with the merger. The aim is to revitalise the American steel and manufacturing sectors with $11 billion in new investments by 2028. Nippon Steel will acquire all of US Steel's shares without the US government being granted any "golden shares". This development bodes well for the merger, with the companies indicating their intention to drive growth in the steel and manufacturing industries.