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Oil, stocks fall as traders weigh outlook after Trump extends truce

Druzhba oil pipeline

Oil prices fell along with stocks on Wednesday as investors assess the chances of US-Iran peace talks after Donald Trump extended his ceasefire at the eleventh hour but kept his blockade of the Strait of Hormuz in place.

With the two-week truce in its final hours, the US president said he would push the deadline back indefinitely following a request from mediator Pakistan and stressing the need to give Tehran’s “fractured” leadership time to form a proposal.

He had previously indicated he would not extend the truce and warned he would resume bombing the Islamic republic when it expired.

“I have…directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their (Iran´s) proposal is submitted,” Trump wrote on social media.

The decision not to carry out fresh attacks on Iran but continue to prevent its ships from passing through the Strait — a major sticking point between the rivals — left traders awaiting clearer developments.

The fate of peace talks in Islamabad was hanging in the balance, with a White House official saying Vice President JD Vance would not travel Tuesday as previously planned, pending the submission of an Iranian proposal.

Tehran has said it will not attend because of what it said were unreasonable US demands, while the semi-official Tasnim news agency said there was no prospect of officials going at present.

Christopher Wong, a strategist at Oversea-Chinese Banking Corp, said: “The US and Iran may be trying to shore up leverage and playing a game of who blinks first.

“Whatever the outcome, the suspense in the interim may see risk appetite being curtailed but when either side blinks, risk proxies could rally.”

Both main oil contracts edged down, though they fluctuated in early trade, having risen around 3% Tuesday.

Equities were mostly in the red following another down day on Wall Street.

Hong Kong, Sydney, Singapore, Seoul and Wellington dropped, with Shanghai flat. Tokyo, Taipei and Wellington rose.

Traders have been struggling to find direction this week after Tehran said Friday it would allow ships through the Strait of Hormuz — which it had effectively closed since war began on February 28 —before pulling back a day later, citing the US blockade and seizure of a ship.

Donald Trump has similarly accused Tehran of violating the ceasefire by harassing vessels in the waterway, the transit passage for about one-fifth of global oil.

The developments sent crude swinging wildly, though they have held below $100, while equity markets have been less volatile on lingering optimism the two sides will eventually reach a deal to end the seven-week conflict that has hit the global economy.

“With markets surging amid optimism that the war is soon going to end, and the Hormuz Strait to open, markets are now more cautious,” wrote Fawad Razaqzada, an analyst at FOREX.com.

“If there’s no deal, I would imagine that oil prices could climb back above $100, which would likely invite pressure on equities.”

Investors are also keeping tabs on the confirmation hearing by senators of Kevin Warsh, Trump’s pick to replace Federal Reserve boss Jerome Powell, whose term ends next month.

Warsh insisted he would not be controlled by the president as he fielded questions on his assets and central bank independence during his confirmation hearing.

The former Fed governor emphasised his commitment to “ensuring that the conduct of monetary policy remains strictly independent”, adding he would “absolutely not” be Trump’s puppet.

Trump, since his return to office last year, has severely criticised Powell for not slashing rates more aggressively, and told CNBC on Tuesday he would be disappointed if the new chair did not swiftly lower borrowing costs.

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Severe heatwave likely to grip Karachi, other parts of country until May 5: NDMA

heatwave

ISLAMABAD: The National Disaster Management Authority (NDMA) has issued a comprehensive weather alert warning of an intense heatwave across multiple regions, including Karachi, till May 5.

The NDMA, through its National Emergencies Operation Centre (NEOC), on Thursday urged authorities to activate emergency plans and citizens to adopt precautionary measures to mitigate health and environmental risks.

The Met Office also forecast rain with windstorms and thunderstorms in parts of the country between April 24 and 29.

According to the NDMA, the prevailing weather pattern aligns with its seasonal outlook issued three to four months earlier, indicating a period of climatic extremes.

The authority has also released a detailed assessment of expected weather conditions from April to June.

The alert highlights that Sindh, southern Punjab and parts of Balochistan are likely to experience severe heatwave conditions, with major urban centres including Karachi, Hyderabad, Sukkur, Larkana, Jacobabad, Bahawalpur, Rahim Yar Khan, Multan and Turbat expected to remain in the grip of extreme temperatures.

Central Punjab and certain parts of Khyber Pakhtunkhwa are also likely to witness a significant rise in temperature.

Meanwhile, a separate weather system is expected to bring dust storms, gusty winds and rain to upper and central districts on April 24, 25 and 29.

Areas including Murree, Islamabad, Rawalpindi, Attock, Chakwal, Jhelum, Mianwali, Sargodha, Gujrat, Gujranwala, Faisalabad, Lahore, Dera Ghazi Khan and Multan may receive rainfall during this period.

In Balochistan, northern districts such as Quetta, Ziarat, Kalat and Khuzdar are forecast to experience rain accompanied by strong winds between April 24–25 and April 27–29. Coastal regions, including Gwadar, are expected to remain hot and dry with a gradual increase in temperatures.

Sindh is likely to continue experiencing hot and dry conditions, with a steady rise in temperatures across the province.

However, Hyderabad, Badin and Mithi may receive light rain and strong winds on April 24.

KP is also expected to see intermittent rainfall and gusty winds in districts including Chitral, Dir, Swat, Malakand, Kohistan, Mansehra, Abbottabad, Peshawar, Mardan, Swabi, Charsadda, Nowshera, Kohat and Kurram during April 24–25 and April 27–29.

Gilgit-Baltistan and Azad Jammu and Kashmir are likely to experience intermittent rain with thunderstorms from April 24 to 29.

The NDMA warned that the ongoing heatwave could lead to an increased risk of heatstroke, dehydration and other health complications.

Citizens have been advised to avoid unnecessary exposure to direct sunlight, increase water intake and take preventive precautions.

The Authority has directed all relevant institutions to activate heatwave response plans, establish cooling centres and ensure hospitals remain on high alert.

Provincial and district administrations have also been instructed to stay vigilant and prepared to respond to any emergency arising from the evolving weather situation.

PM orders inquiry into inactive EWS in GB

Separately, Prime Minister Shehbaz Sharif has ordered a high-level inquiry into the non-functional early warning system installed in Gilgit-Baltistan for protection against glacial lake outburst floods (GLOFs) and directed all relevant institutions to accelerate coordinated preparations ahead of the upcoming monsoon season.

Chairing a review meeting on pre-monsoon preparedness and climate-related risks, the prime minister expressed strong displeasure over the continued inactivity of the early warning system despite clear directives issued last year.

He warned that negligence and weak institutional performance would not be tolerated and emphasized that safeguarding citizens from environmental hazards remains a core responsibility of all departments.

The premier instructed federal ministries and provincial governments to remove bottlenecks hindering policy implementation and ensure full operationalisation of digital monitoring infrastructure for early warning systems.

He stressed that Pakistan ranks among the countries most vulnerable to climate change impacts and called for emergency-level efforts to mitigate associated risks.

The PM also highlighted lessons from last year’s monsoon season, and noted that illegal encroachments along river routes and flood channels had contributed significantly to damages.

He directed authorities to adopt an effective preventive strategy this year to address the issue before the onset of heavy rains.

He further instructed all institutions to enhance operational capacity and mobilize resources beyond routine limits to protect lives and property during potential flooding.

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Timely energy conservation steps averted crisis in Pakistan amid Mideast conflict: PM

pm-meeting

Islamabad: Prime Minister Shehbaz Sharif on Thursday called energy security a vital part of the country’s future planning, saying that the government’s timely measures regarding energy conservation in the current regional situation averted a crisis.

The prime minister, chairing a high-level meeting regarding energy security, said that work was underway on a plan to maintain strategic reserves of crude oil in the country, keeping in view future energy needs.

Besides, he said that for energy conservation and sustainable development, means of transportation should be gradually transitioned to eco-friendly electric vehicles (EVs).

The prime minister directed the purchase of only electric buses and motorcycles for government use in the future and accelerate the establishment of charging stations for EVs.

Calling for a strategy to facilitate the acquisition of batteries for the storage of surplus solar electricity, he said that local manufacturing of high-quality storage batteries should also be encouraged.

During the briefing, the participants of the meeting were told that the National Coordination and Management Council (NCMC) was reviewing the energy situation on a daily basis.

It was informed that sufficient stocks of petroleum products were available, and the food security situation in the country was also stable.

The participants were told that through the continuous efforts of oil and gas companies, local production of gas and oil was increasing and a PC-I was being prepared for two pilot projects for battery storage at the grid level.

Besides, the domestic consumers generating solar energy were being encouraged to install battery storage.

Federal ministers Musadik Masood Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Sardar Awais Leghari, Attaullah Tarar, Ali Pervez Malik, Ahsan Iqbal, Advisor to the Prime Minister on Privatisation Muhammad Ali, Minister of State Bilal Azhar Kayani, Special Assistant Haroon Akhtar, and relevant senior government officials attended the meeting.

Last month, PM Shehbaz announced a range of measures to conserve fuel as Pakistan moves to mitigate the fallout from the ongoing war in the Middle East.

The wide-ranging austerity and fuel conservation plan includes a four-day workweek, early closure of markets, a cut in fuel allowance and a 20% reduction in all government departments’ expenditures. Citing impacts of disruptions to the global oil supply chain, Pakistan also jacked up the prices of petroleum products.

The measures come as Pakistan moves to mitigate the impact of rising global fuel and energy costs, triggered by the ongoing war in the Middle East.

The turmoil in the Gulf region has led to a spike in global oil and energy prices, with countries around the world rushing to ration fuel and energy.

The more than month-old conflict erupted after the United States and Israel launched joint attacks on Iran on February 28.

In its response, Tehran targeted US bases across the Gulf region and effectively blocked the Strait of Hormuz, a key route for oil and energy shipping.

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Gold drops by Rs5,200 per tola as global prices tumble

gold

Islamabad: Gold prices extended their decline on Thursday in Pakistan as the price of gold per tola dropped by Rs5,200 after the international market saw a dip of $52 per ounce to $4,714.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), in the local market, the price of gold per tola after the drop reached Rs493,762. Similarly, the price of 10 grams of gold decreased by Rs4,458 to Rs423,321.

Silver prices also recorded a decline. The price per tola of silver fell by Rs225 to Rs8,099, while the price of 10 grams decreased by Rs193 to Rs6,943.

In the international market, silver fell 1.9% to $76.22 per ounce, platinum lost 1.8% to $2,037.18, and palladium was down 2.1% at $1,512.86.

The latest drop follows Wednesday’s decline, when the price of gold per tola fell by Rs1,200 to settle at Rs498,962, according to the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10 grams of gold decreased by Rs1,029 to Rs427,779.

Silver prices also followed a downward trajectory, falling by Rs34 to Rs8,324 per tola. Market sentiment globally was supported by a decline in benchmark 10-year US Treasury yields, which slipped by 0.2%, making non-yielding assets like gold relatively more attractive.

Meanwhile, on Wednesday, the Pakistani rupee appreciated by 0.01%, gaining Rs0.03 to settle at 278.87 against the US dollar in the inter-bank market after closing at 278.90 on Tuesday.

Also on Tuesday, gold and silver prices declined in both international and domestic markets. In the international bullion market, gold fell by $10 per ounce to $4,778. Locally, gold per tola dropped by Rs1,000 to Rs500,162, while 10 grams fell by Rs857 to Rs428,808.

Silver also declined, with the per tola rate down Rs59 to Rs8,358 and 10 grams falling Rs51 to Rs7,165.

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