International News 04 March 2026
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Global Energy Majors Face Rising Middle East Exposure Amid US–Israel–Iran Conflict
Exxon Mobil, TotalEnergies, and Shell are seen as among the most vulnerable global energy firms to oil and gas supply disruptions following the escalating conflict between the United States, Israel, and Iran. The attacks that reportedly killed Iran’s Supreme Leader Ali Khamenei have rattled global energy markets, forcing the shutdown of several oil and gas fields in the region and effectively halting shipments through the Strait of Hormuz—a critical corridor for crude oil, refined fuels, and LNG exports from key Middle Eastern producers. According to analysts at Jefferies, roughly 29% of TotalEnergies’ output is tied to the Middle East, while the region accounts for about 20% of production for both Exxon and Shell. LNG exposure is particularly sensitive: around 60% of Exxon’s LNG portfolio is concentrated in the Middle East, with all three companies partnering with QatarEnergy, which temporarily halted LNG production after drone strikes on its facilities. Qatar supplies about 20% of global LNG. Despite operational risks, surging prices have provided a cushion—Brent crude futures jumped roughly 7% to $77.74 per barrel, while European benchmark gas prices soared about 40%. Exxon may also gain support from the startup of its Golden Pass LNG project in Texas, partially offsetting regional disruptions.
Japan’s Capital Expenditure Rises 6.5% in Q4 2025, Supporting Fragile Growth
Japan’s corporate capital expenditure (capex) increased 6.5% year-on-year in the fourth quarter of 2025, according to data released by the Ministry of Finance on March 3, 2026. The figure marks an acceleration from the previous quarter’s 2.9% growth and signals resilient investment demand despite modest economic expansion. On a seasonally adjusted quarterly basis, capex rose 3.5% from July–September. Corporate sales edged up 0.7% YoY, while recurring profits climbed 4.7%. The data will feed into the revised GDP figures due on March 10, after preliminary estimates showed the economy grew just 0.2% annually in Q4 amid inflationary pressure and limited export gains from tariff agreements with the United States. Capital spending remains a key pillar of domestic demand, supported by companies upgrading outdated equipment, addressing labor shortages caused by demographic decline, and accelerating investment as Japan gradually exits deflation. The government has also stepped up targeted public spending in strategic sectors deemed critical to economic security. Analysts note that policy tools such as capital injections, subsidies, and tax incentives could meaningfully bolster investment. Mizuho Research & Technologies estimates these measures may lift capex by around 1%, offsetting higher interest rate pressures, and projects real capex growth of 2.7% in fiscal 2026 and 2.5% in fiscal 2027.
South Korea’s Manufacturing Expands for Third Straight Month on Semiconductor Boom
South Korea’s manufacturing activity expanded for a third consecutive month in February, driven by the fastest production growth in one and a half years amid robust semiconductor demand. The manufacturing Purchasing Managers’ Index (PMI) released by S&P Global stood at 51.1 in February, slightly easing from 51.2 in January—the highest level since August 2024—but remaining above the 50 threshold that separates expansion from contraction. Output rose at its quickest pace since August 2024, while new orders increased for a third straight month, supported by strong demand from the United States and China, particularly in the semiconductor sector. Trade data showed exports extended their growth streak to nine consecutive months in February, beating market expectations as chip shipments remained strong despite lingering U.S. tariff uncertainties. Reflecting the export-driven momentum, the Bank of Korea recently revised up its 2026 growth forecast to 2.0% from 1.8% and kept interest rates unchanged, signaling policy stability over the next six months. Additional indicators also pointed to firmer demand, with raw material purchases rising at the fastest pace since July 2021, backlogs increasing at a 13-month high, and finished goods inventories climbing for the first time since December 2024 as firms built up stock to meet stronger orders.