e-crow The European Union is weighing a temporary freeze on its price cap for Russian oil as the Iran war continues into a fourth month, Bloomberg News reported, citing people familiar with the matter. The price cap is set every six months at 15% lower than the average market rate for Russian Urals crude. Under the cap, European companies are banned from providing services involving oil sold above...
e-crow The European Union is weighing a temporary freeze on its price cap for Russian oil as the Iran war continues into a fourth month, Bloomberg News reported, citing people familiar with the matter. The price cap is set every six months at 15% lower than the average market rate for Russian Urals crude. Under the cap, European companies are banned from providing services involving oil sold above the threshold. If the EU decided on a freeze, the price cap would be maintained at the current rate of $44.10 per barrel The price cap is due for review in July, after which it could go up to at least $65, sources said. That would be higher than the G7's Russian oil price cap of $60/bbl. Other options being considered include suspending price cap increases until the end of the year as oil prices soar due to the Iran war or capping any hike to $60/bbl in line with the G7. The move would be part of the EU's latest sanctions on Russia, which the bloc aims to finalize and formally propose in early June. Sanctions require the backing of all EU members before being adopted, and plans could change before that. Other measures discussed include targeting more banks, oil traders, refineries and cryptocurrency operators in third countries used by Russia to bypass the EU's restrictions. Sanctions on oil tankers in Russia's shadow fleet and trade restrictions on critical minerals used in its defense sector are also being discussed. The EU is considering export controls on over 20 companies, including those in China, India, Turkey and Central Asia, that are allegedly supplying Russia with restricted goods found in weapons or needed to make them. More on crude oil Iran War May Push Oil To New Highs If Peace Doesn't Come Fast I Think Oil Is About To Go Vertical SCO: Excellent On Its Day, But Timing Is Everything Trump says Iran 'really wants to make a deal' as peace talks enter new month Oil slides to six-week low as traders bet U.S.-Iran framework deal is near
mesh cube/iStock via Getty Images By Min Joo Kang , Senior Economist, South Korea and Japan Widening trade surplus signals firm growth in 2Q26 South Korea’s exports increased a greater-than-expected 53.2% year-on-year in May (vs. 48.0% in April, 49.3% market consensus, 52% ING). Despite the ongoing conflict in the Middle East, export growth accelerated, with working day-adjusted shipments jumping ...
mesh cube/iStock via Getty Images By Min Joo Kang , Senior Economist, South Korea and Japan Widening trade surplus signals firm growth in 2Q26 South Korea’s exports increased a greater-than-expected 53.2% year-on-year in May (vs. 48.0% in April, 49.3% market consensus, 52% ING). Despite the ongoing conflict in the Middle East, export growth accelerated, with working day-adjusted shipments jumping 60.7%. Exports for the first five months rose 43.4%, compared to 40.9% year-to-date in April. Semiconductor exports surged by 169.4%, driven by strong global investment in the AI sector. It accounts for 42.3% of total exports. Other AI-related products - computers (290.7%), wireless equipment (12.6%), and displays (9.4%) - all gained. The growth momentum will likely accelerate throughout 2026 as the structural supply shortage of chips continues. Exports should benefit not only from rising US investment in AI, but also from the surge in Chinese AI spending - both engines are set to lift demand for Korea’s goods. By destination, shipments to the US increased by 59.1%, with chip and computer exports rising 651% and 675%, respectively. Exports to China rose by an even steeper 80.9%, with semiconductor exports (243%) accounting for the majority of this growth. For other major exports, car exports fell 5.9% due to US tariffs and logistics disruptions caused by the war in the Middle East, while ship exports increased by 16.7%. Energy supply shocks had mixed effects on Korean exports as petroleum product exports increased in value (46.6%) but decreased in volume (-23.8%). The government has imposed an export ban on oil and petrochemical products. This should continue to weigh on these exports. Export performance is proving strong not only in the chip sector but also in other sectors (Source: CEIC) Imports up firmly amid higher energy prices and capital goods imports Imports rose 20.8% in May (16.7% in April, 21.5% market consensus; 25% ING), mostly driven by higher energy prices. E...