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Middle East war: global economic fallout

Here are the latest economic events in the Middle East war:

- Crude back up -

Crude prices were flat to higher on Friday, while stocks slid lower.

Around 1430 GMT Brent crude was flat at $108.70 a barrel while West Texas Intermediate rose 0.4 percent to $95.95.

- Kuwait refinery ablaze -

Firefighters battled a blaze at a giant oil refinery in Kuwait after a fresh drone attack, as Iran kept up a wave of strikes on its neighbours and vowed there was "no concern" about its missile production.

Oil and gas markets have reeled with the war in the Middle East

Hong Kong to see oil shocks and volatility from Middle East war

HONG KONG, March 17 (Reuters) - Hong Kong's leader John Lee said he was "very concerned" about the rise in oil prices due to the U.S.-Israeli war on Iran and that the financial hub, along with the rest of Asia, would see shocks and volatility due to the disruption of supply and oil prices.

Lee, speaking at a press conference on Tuesday, said the government was working to ensure stable energy supplies and would increase transparency of information related to supply and energy prices.

Chief Executive of Hong Kong John Lee speaks during a press conference in Beijing, China December 16, 2025. REUTERS/Tingshu Wang

Trump was warned of likely Iranian retaliation on Gulf allies, sources say

By Jonathan Landay, Phil Stewart and Erin Banco

WASHINGTON, March 16 (Reuters) - President Donald Trump was warned that attacking Iran could trigger retaliation against U.S. Gulf allies despite his claims on Monday that Tehran's reaction came as a surprise, said a U.S. official and two sources familiar with U.S. intelligence reports.

Pre-war intelligence assessments did not say that Iran’s response was "a guarantee, but it certainly was on the list of potential outcomes," said one source, who like the other two requested anonymity to discuss the issue.

U.S. President Donald Trump listens to a question from a reporter during an event to sign an executive order creating an anti‑fraud task force headed by U.S. Vice President JD Vance in the Oval Office at the White House in Washington, D.C., U.S., March 16, 2026. REUTERS/Jonathan Ernst

Iran soccer players who claimed asylum in Australia train with local club

SYDNEY, March 17 (Reuters) - The two players from the Iranian women's soccer squad who chose to remain in Australia after seeking asylum have been pictured training with a local A-League club as they begin their new lives in the country.

Midfielder Fatemeh Pasandideh and defender Atefeh Ramezanizadeh were among seven members of Iran's delegation granted humanitarian visas amid fears of possible persecution if they returned home after competing in the women’s Asian Cup in Australia.

Supporters of the Iranian women's soccer team gather at Sydney Airport, after five of the players were granted asylum, in Sydney, Australia, March 10, 2026. REUTERS/Jeremy Piper/File Photo

Panic as Israel army urges residents to evacuate south Lebanon's Tyre area

Israel's army issued an evacuation order late Tuesday for south Lebanon's Tyre city and surrounding areas as it said it struck Hezbollah targets in the country and the militants claimed a wave of attacks.

Three Lebanese soldiers were killed in Israeli strikes earlier Tuesday, the Lebanese army said, as Israel carried out raids and again ordered residents of vast parts of southern Lebanon to evacuate.

More than a million Lebanese have been displaced by Israeli bombing and evacuation warnings

Drones, rockets fired at US embassy in Baghdad, security sources say

BAGHDAD, March 17 (Reuters) - Rockets and at least five drones were launched at the U.S. embassy in Baghdad early on Tuesday from areas around the city, Iraqi security sources said, describing the attack as the most intense since the start of the U.S.-Israel war with Iran.

A Reuters witness saw at least three drones heading in the direction of the embassy. The C-RAM air defence system shot down two of them while a third struck inside the embassy compound, from which fire and smoke could be seen rising, the witness said.

Smoke and fire rise during reported drone and rocket strikes at the U.S. embassy, according to Iraqi security sources, in Baghdad, Iraq, in this still image obtained from a social media video released on March 17, 2026. Social Media via REUTERS

Taiwan says it has received no information from US on delay of second arms sale

TAIPEI, March 17 (Reuters) - Taiwan Defence Minister Wellington Koo on Tuesday said he believed the U.S.' internal review process for the sale of a second package of arms to the island is proceeding on schedule.

A major U.S. arms package for Taiwan worth about $14 billion that includes advanced interceptor missiles is ready for President Donald Trump's approval and could be signed after his upcoming trip to China, Reuters reported last week, citing sources briefed on the discussion.

Taiwan's Defence Minister Wellington Koo reacts during the annual Han Kuang military exercise in Kaohsiung, Taiwan July 14, 2025. REUTERS/Ann Wang

US federal jury convicts Assad-era Syrian official of torture

By Kanishka Singh and Mike Scarcella

WASHINGTON, March 16 (Reuters) - A federal jury in Los Angeles convicted a former Syrian government official, who headed the Damascus Central Prison under the government of ousted Syrian President Bashar al-Assad, of torture, the U.S. Justice Department said on Monday.

Samir Ousman Alsheikh, 73, was convicted on one count of conspiracy to commit torture and three counts of torture for his involvement in the torture of prisoners at Adra Prison as it is colloquially known, in Damascus,the Justice Department said in a statement.

Officers keep watch outside the Department of Justice building in Washington, D.C., U.S., September 23, 2025. REUTERS/Kevin Lamarque

Afghan Taliban says 400 killed, 250 injured in Pakistan air strike on Kabul hospital

KABUL, March 17 (Reuters) - At least 400 people were killed and 250 injured in an air strike by Pakistan on a drug users rehabilitation hospital in the Afghan capital of Kabul, the deputy spokesman of the Afghan Taliban government said on Tuesday.

Pakistan rejected the claim as false and misleading and said it "precisely targeted military installations and terrorist support infrastructure" on Monday night.

(Reporting by Mohammad Yunus Yawar; Writing by YP Rajesh; Editing by Christopher Cushing)

Smoke rises after an explosion in what the Taliban said was a Pakistani air strike in Kabul, Afghanistan, March 16, 2026. REUTERS/Sayed Hassib

Trump faces coalition of the unwilling on Iran

President Donald Trump spent his first year back in power disparaging US allies. Now he wants them to help America in the Iran war -- and they are none too enthusiastic.

From tariffs to insults and threatening to invade Greenland, Trump has rarely missed an opportunity in recent months to criticize America's partners.

Yet now the 79-year-old Republican has said he expects the same allies to help reopen the Strait of Hormuz to oil traffic and reacted angrily when they rebuffed him.

US President Donald Trump has urged allies to help reopen the Strait of Hormuz