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Business Standard
14 hours ago
- Business
- Business Standard
Strait of Hormuz closure risk may push Brent crude to $90, warns Citigroup
A potential shutdown of the Strait of Hormuz amid rising Gulf tensions could trigger a sharp but brief surge in crude prices, according to Citigroup analysts tracking energy markets New Delhi Brent crude prices could surge to nearly $90 a barrel if the Strait of Hormuz were to be closed, Bloomberg reported citing Citigroup Inc. Analysts at the bank, including Anthony Yuen and Eric Lee, said such a scenario would trigger a sharp but likely short-lived price spike. 'Any closure of the Strait could lead to a sharp price spike,' the analysts wrote in a recent note, referring to the bank's bullish case. 'But we think the duration should be short, as all efforts would focus on a reopening, so that it should not be a multi-month closure.' Strategic waterway moves 20% of oil The world depends heavily on oil, and a big part of that supply moves through the Strait of Hormuz. As tensions grow between Iran and Israel, this narrow waterway in West Asia is once again at the centre of global concern. Just 33 kilometres wide at its narrowest point, the Strait of Hormuz is one of the most important oil routes in the world. Its role is especially critical for energy-importing countries like India. The Strait of Hormuz, a critical chokepoint at the entrance to the Persian Gulf, sees the transit of nearly 20 per cent of the world's daily oil output. Crude shipments from key OPEC members like Saudi Arabia and Iraq pass through the narrow channel, making it vital to global energy markets. Citigroup's scenario assumes that up to three million barrels per day could be disrupted over a period of several months if the strait were blocked, the news report said. Muted impact on crude prices While tensions in the region also raise concerns about Iranian oil supply, Citigroup believes any interruption to Iran's crude exports would likely have a muted effect on prices. The bank noted that Iran's shipments have already been declining, with Chinese refineries — key buyers — reducing their purchases. Any move to block the Strait of Hormuz would raise serious concerns around the world, as it could affect a large part of the global oil supply. As of now, Brent futures are trading at around $77 per barrel. The possibility of a geopolitical escalation in the Gulf region continues to be a key factor to watch for energy markets. Israel-Iran conflict A missile fired from Iran struck the main hospital in southern Israel early Thursday, wounding several people and causing significant damage. While the injuries were not life-threatening, the facility reported extensive destruction. Israeli media broadcast visuals showing shattered windows and thick black smoke billowing from the site, the Associated Press reported. Additional Iranian missiles struck a high-rise apartment complex in Tel Aviv and other locations in central Israel. According to Israel's Health Ministry, at least 240 people were injured in the attacks, including four who are in serious condition. Israel targets Khamenei, nuclear site Israeli Defence Minister Israel Katz held Iran's Supreme Leader Ayatollah Ali Khamenei responsible for the assault. 'The military has been instructed and knows that in order to achieve all of its goals, this man absolutely should not continue to exist,' Katz said. In retaliation, Israel launched an airstrike on Iran's Arak heavy water reactor, a key site in the country's nuclear programme. Iranian state television reported no radiation threat from the attack, noting that the facility had been evacuated beforehand. 'Decision on Iran strike in two weeks' In Washington, the White House said President Donald Trump will decide within two weeks whether to launch a military strike on Iran. The administration stressed that diplomacy is still on the table. 'Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future. I will make my decision whether or not to go within the next two weeks,' White House Press Secretary Karoline Leavitt quoted Trump as saying. [With agency inputs]
Mint
4 days ago
- Business
- Mint
Iron Ore Extends Drop as Demand Concerns Rise, Citi Cuts Targets
(Bloomberg) -- Iron ore headed for the lowest close since September on a seasonal slowdown in demand and signs Chinese mills are curbing steel output. Futures fell for a fourth day in Singapore, sinking below $93 a ton. The rainy season in southern China, as well as high temperatures in the north, have persisted, slowing construction, Shanghai Metals Market said in a note. On Monday, figures from China — the top iron ore importer — showed nationwide steel output in May was below April's total on a daily basis, and almost 7% less than a year ago. It was the weakest showing for the month since 2018. The steel-making staple has been under pressure in recent weeks as traders eye a slower pace of construction into the summer, as well as a push by authorities in China to curb steel output to combat a glut. Futures are coming off the back of a four-week losing run that was the longest since January. 'Steel demand in China is likely to remain weak over the coming months over the upcoming seasonal lull,' Citigroup Inc. said in a note, cutting iron ore forecasts. China's property market weakness is showing no signs of a turnaround, and manufacturing faces increased trade headwinds, they said. The bank's prompt-to-three month price forecast was reduced to $90 a ton from $100, while the six-to-twelve month target was scaled back to $85 from $90. On the supply side, miners in Brazil — the largest shipper after Australia — have been ramping up flows. Exports totaled 35.077 million tons in May, narrowly setting a record for that month. Iron ore futures fell as much as 1.2% to $92.90 a ton a ton in Singapore, before trading at $93 at 11:44 a.m. Steel futures in China also declined. Copper and other industrial metals were lower as investors monitored the Israel-Iran conflict and appetite for risk assets. US President Donald Trump called for the evacuation of Tehran, in comments that contrasted with earlier optimism the situation wouldn't escalate into a wider conflict. Copper fell 0.3% to $9,674.50 a ton on the London Metal Exchange, while aluminum declined 0.2% to $2,508.50. More stories like this are available on
Globe and Mail
4 days ago
- Business
- Globe and Mail
Citigroup Announces $650 Million Redemption of Floating Rate Notes Due 2026
Citigroup Inc. is announcing the redemption, in whole, constituting $650,000,000 of its Floating Rate Notes due 2026 (the 'notes') (ISIN: US172967MB43). The redemption date for the notes is July 1, 2025 (the 'redemption date'). The cash redemption price for the notes payable on the redemption date will equal par plus accrued and unpaid interest, to but excluding, the redemption date. The redemption announced today is consistent with Citigroup's liability management strategy and reflects its ongoing efforts to enhance the efficiency of its funding and capital structure. Citigroup will continue to consider opportunities to redeem or repurchase securities, based on several factors, including without limitation, the economic value, regulatory changes, potential impact on Citigroup's net interest margin and borrowing costs, the overall remaining tenor of Citigroup's debt portfolio, capital impact, as well as overall market conditions. Beginning on the redemption date, interest will no longer accrue on the notes. Citibank, N.A. is the paying agent for the notes. For further information on the notes, please see the related prospectus supplement at the following web address: About Citi Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
National Post
4 days ago
- Business
- National Post
Citigroup Announces $650 Million Redemption of Floating Rate Notes Due 2026
Article content Article content NEW YORK — Citigroup Inc. is announcing the redemption, in whole, constituting $650,000,000 of its Floating Rate Notes due 2026 (the 'notes') (ISIN: US172967MB43). Article content The redemption date for the notes is July 1, 2025 (the 'redemption date'). The cash redemption price for the notes payable on the redemption date will equal par plus accrued and unpaid interest, to but excluding, the redemption date. Article content The redemption announced today is consistent with Citigroup's liability management strategy and reflects its ongoing efforts to enhance the efficiency of its funding and capital structure. Citigroup will continue to consider opportunities to redeem or repurchase securities, based on several factors, including without limitation, the economic value, regulatory changes, potential impact on Citigroup's net interest margin and borrowing costs, the overall remaining tenor of Citigroup's debt portfolio, capital impact, as well as overall market conditions. Article content Beginning on the redemption date, interest will no longer accrue on the notes. Article content Citibank, N.A. is the paying agent for the notes. For further information on the notes, please see the related prospectus supplement at the following web address: About Citi Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services. Article content Article content Article content Contacts
Time of India
13-06-2025
- Business
- Time of India
Chinese exports flood Southeast Asia on US tariffs, Citi says
Vietnam, Thailand and Indonesia are among Asian countries seeing the sharpest surge in Chinese imports as higher US tariffs upend regional trade, according to Citigroup Inc. China's export push in Southeast Asia may be a sign of trade diversion, as direct exports to the US have fallen sharply in recent months, Citi's head of emerging-markets economic research Johanna Chua wrote in a report Tuesday. Bloomberg A flood of — often cheaper — Chinese goods could pose challenges to recipient countries and their local enterprises, Citi said. Indonesia, for one, saw textile imports from China recently reach a new monthly high, adding pressure to a struggling garments sector that's already laid off thousands of workers. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses Vietnam (Prices May Surprise You) Container House | Search ads Search Now Chinese overall export prices and the price of textile shipments have been falling since early 2023. Exports to the US meanwhile plunged by just over a third in May, the most since 2020, with both countries locked in a heated trade dispute. The record shipments to Southeast Asia could likewise be a sign of transshipment, or China directing goods through other countries to avoid the impact of higher US levies, Citi said. The report noted a 'significant increase in correlation' between Southeast Asian countries' increased Chinese imports and their exports to the US. Live Events Transshipment has been a focal point in Washington's tariff negotiations with Southeast Asian nations such as Vietnam and Thailand, both of whom have pledged to tighten rules on issuing certificates of origin. As the US clamps down on transshipment, 'China may be shifting more of its downstream production to third markets in lieu of US tariff risk, while maintaining its dominance in the supply chain for intermediate goods,' Citi said.
