Little Progress In Resolving Global Conflicts

Geopolitical tensions in global hot spots continue with attacks on Houthi sites, remembering the anniversary of Russia’s invasion of Ukraine and Gaza ceasefire talks continuing on the weekend. Currently these conflicts seem no closer to a resolution though. Oil prices remain very sensitive to developments with the Middle East and Russia large energy producers.

• The US and UK hit 18 Houthi sites in Yemen on Saturday to reduce capabilities to strike Red Sea shipping. Over a third of firms surveyed by the British Chamber of Commerce (BCC) said they have been impacted by the Red Sea attacks with over half of exporters affected. The BCC warned that the issue could add to UK inflation from higher shipping costs and delays to supplies.
• Israeli negotiators went to Paris for ceasefire talks where some progress has apparently been made over the weekend. They will go to Qatar this week for further negotiations. Yesterday US national security adviser Sullivan said that there were “basic contours” of a hostage release and temporary ceasefire deal.
• The two-year anniversary of Russia’s invasion of Ukraine was marked on the weekend with the EU, UK and US reiterating their support for the nation. Estonia’s PM Kajas warned that leaders risk disregarding the “lessons from the 1930s and 1940s” if support for Ukraine isn’t maintained. She also urged NATO to increase its defence spending.
• Ukraine said it has shot down a second Russian spy plane over Russian airspace.
• The US placed new sanctions on Russia with Europe likely to follow. There was no further pressure placed on the energy sector though.