U.S. Envoys Cancel Pakistan Trip Amid Iran Conflict as Oil Prices Fall

U.S. envoys to cancel their planned trip to Pakistan for talks intended to resolve the nearly two-month conflict with Iran. -Saudi ceasefire with Iran last week paused most of the fighting.

The announcement sent oil market prices tumbling. S. S.

And Iranian officials. Iranian diplomat Araghchi left Pakistan’s capital late Saturday but returned to Islamabad before continuing on to Moscow, Fortune reported. S.

Channels, FARS reported. S. and Israeli attacks on Iran began. American forces have used thousands of missiles in attacking Iran, Semafor reported.

U.S. imposed a blockade on Iranian vessels. The Strait of Hormuz, a key shipping lane carrying a fifth of global oil and gas, has been closed since the attacks began. com reported.

The closure of the Strait of Hormuz has squeezed global oil supply. The Breakwave Tanker Shipping ETF (BWET) has surged more than 600% since the beginning of the year, CNBC reported. One estimate puts the damage to energy infrastructure at $58 billion, with the brunt felt in Iran, where the damage has been extensive, and in Qatar, where it was more precisely targeted at the massive Ras Laffan Liquefied Natural Gas export facility.

It could take four years for specialized suppliers to deliver key components like massive gas turbines required for compression and liquefaction at Ras Laffan. Saudi Finance Minister Mohammed al-Jadaan stated at a Debate on the Global Economy held at the spring meetings of the International Monetary Fund on Thursday that markets were taking too optimistic a picture.

Al-Jadaan stated that a resumption of seaborne trade crossing the Strait of Hormuz at prewar levels might not happen until the end of June in a best-case scenario.

“'I think our best guess is eight-plus months from the point of resolution that you’ll see economic impacts coming through the system.' — Darren Jones, U.K. chief secretary to the prime minister It can take 20 days for cargoes from Hormuz to reach Singapore and up to 40 days to reach the Pacific Islands, IMF Managing Director Kristalina Georgieva pointed out at the same event. International Energy Agency chief Fatih Birol said the Iran war has permanently changed the fossil fuel industry and will accelerate a shift toward renewables, nuclear power, and electrification at the expense of oil demand. Birol told The Guardian that the damage to confidence in fossil fuel security is permanent. The war in the Middle East and the halt of oil shipments from the Strait of Hormuz threaten to push back projects across Japan, the Japan Times reported. Turkish Foreign Minister Hakan Fidan said Turkey could consider taking part in demining operations in the Strait of Hormuz following a possible peace agreement between Iran and the United States. Fidan spoke to reporters in London on Friday evening and said a technical team was expected to carry out mine-clearing work in the strait after any agreement. The U.K. faces higher prices for food and fuel for at least eight months after the war in Iran ends, U.K. chief secretary to the prime minister Darren Jones said. Jones told the BBC’s Sunday with Laura Kuenssberg programme that prices would go up a bit as a consequence of what President Donald Trump has done in the Middle East. Jones suggested higher prices might remain around eight months after the Strait of Hormuz was unblocked and a de-escalation of the conflict had taken place. The U.K. government urged motorists to fill up their cars as usual amid higher prices at the pumps and urged air travellers not to change their plans over potential jet fuel shortages. The U.K. government is looking to secure stocks of carbon dioxide used in the food industry, by breweries, for defence purposes, and medical uses such as MRI scanning. Jones said he was seeking to ensure an adequate supply of beer for fans watching the men’s football World Cup which starts on 11 June. The Liberal Democrats have called for a bill to be included in the next king’s speech in May to put food security at the top of the government’s agenda. California's jet fuel stockpile has hit a two-year low, the Los Angeles Times reported. President Donald Trump claimed that his intervention helped save eight women arrested in Iran from the death penalty. Iran responded that none of the eight women mentioned by Trump were facing execution and accused Trump of fake reports. The BBC's Chief International Correspondent Lyse Doucet is reporting from Tehran on condition that none of her material is used on the BBC's Persian Service. These restrictions apply to all international media organisations operating in Iran.”