Symbolic imageG20 ministers flag yield and currency worries as Iran war keeps energy costly
G20 and G7 finance ministers met in Bangkok while the Iran war's energy shock feeds into bond yields and fuel supply. The IMF names a prolonged war as the biggest risk for the Middle East.
Japanese Finance Minister Satsuki Katayama said on Thursday, 15 October, that Japan raised concerns about market volatility at the G20 and G7 meetings in Bangkok, as long-term interest rates climb and currencies fluctuate. Reuters reports that the IMF sees a prolonged war and renewed disruptions as the biggest risk to the region, while Bloomberg says the Fund finds Saudi buffers and energy backup have blunted the blow there. Reuters and the Wall Street Journal also report that TotalEnergies expects a profit surge from the conflict.
Germany's gas bill
Wholesale gas has reached 87 euros per megawatt hour, almost triple the pre-war level, the FAZ reports. Berlin again subsidises fuel until the end of December, although many economists call it costly and poorly targeted, and a draft paper foresees a levy for strategic gas reserves.
Frankfurt kerosene squeeze
Low Rhine water and pipeline repairs have tightened jet fuel supply at Frankfurt airport. Lufthansa has jets carry extra fuel as a precaution and expects no cancellations, and operator Fraport expects no impact on operations.