'Attacks on Saudi Arabia’s oil facilities have global consequences'

Agencies
September 18, 2019

Washington, Sept 18: The attacks on Saudi Arabia's oil facilities have global consequences and the UN must play its part to address threats to international peace, a senior Trump administration official has said, as US Secretary of State Mike Pompeo left for Jeddah for talks with the top Saudi leadership.

Saudi Arabia, a key American ally, leads a military coalition that has been battling the Iran-aligned Huthi rebels in Yemen since 2015.

The Huthis claimed responsibility for Saturday's two attacks on Saudi Arabian facilities, which halved oil output in Saudi Arabia, the world's top crude exporter.

After the attacks, US President Donald Trump said the White House believed it knew the culprit of the strikes, and the US military was "locked and loaded" to take action.

"Saudi Arabia has been attacked, which has global consequences. The UN Security Council was created to address threats to international peace and security, and this attack meets that criteria," the senior administration official said as Pompeo headed to Saudi Arabia and Abu Dhabi in the UAE.

Pompeo will begin his trip in Jeddah, arriving September 18.

"He will meet with Saudi Crown Prince Mohammed bin Salman to discuss the recent attack on the Kingdom's oil facilities and coordinate efforts to counter Iranian aggression in the region," State Department Spokesperson Morgan Ortagus said.

The Secretary will then travel to Abu Dhabi to meet with UAE Prince Mohammed bin Zayed to discuss regional and bilateral issues, she said in a statement.

Some media reports said that the Trump administration was planning a retaliatory action against Iran, as tension escalate in the Middle East in the aftermath of the massive damage to the Saudi oil facilities.

According to the official, the US sees a role for the UN Security Council.

"We do see a role for the UN Security Council to play. Saudi was attacked and it would be appropriate for them to call upon the Council. But we first need to gather the releasable information," said the official who spoke on condition of anonymity.

"Iran has a long history of testing its strength. But they never climb too high up the escalation ladder. At a certain point, when the world says enough, they come back down," the official said in response to a question.

US Defense Secretary Mark Esper said Iran continues to violate international norms and has chosen to promote instability and danger throughout the region.

The NBC News reported that the Trump administration was weighing a range of options for a retaliatory action against Iran, including a cyberattack or physical strike on Iranian oil facilities or Revolutionary Guard assets.

In a national security meeting on Monday, US military leaders provided Trump with a menu of possible actions against Iran.

"But the president, seeking a narrowly focused response that wouldn't draw the US into broader military conflict with Iran, asked for more options," the report said, quoting people who were briefed on the meeting.

In an interaction with reporters, White House Deputy Press Secretary Hogan Gidley said the president felt as though Iran was likely the culprit of the attack.

"I mean, it was an attack on the global economy. The president is dealing with all of our partners and allies in the region. We want to make sure that the evidence and the information clearly points to a culprit here.

"In all likelihood, as the president said, it was Iran. But, when we have a definitive answer on that, we'll let you know," he said, adding that no option is off the table.

Gidley said Trump has been very clear that the US is not going to begin to have conversations with Iran until they change the behaviour that they've been a part of for more than 40 years.

"When you're the world's largest state sponsor of terror, you're going to have to change behaviour if the president of the United States is going to have a conversation with you," he said.

"The president wants to make a deal with Iran. He sees great potential in the country. But, for the better part of 40 years, this kind of behaviour has been well documented, well known across the globe. The president wants to see that kind of behaviour change.

"We've been tougher on Iran than any administration in history with the sanctions we've put on them up to and including yesterday from the briefing room," he said.

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News Network
March 6,2020

New Delhi, Mar 6: As panicky depositors rushed to withdraw money from Yes Bank whose control was seized by the RBI in a dramatic late-night move, Finance Minister Nirmala Sitharaman on Friday assured depositors that their money is safe and said the central bank was working for an early resolution of the crisis.

The Reserve Bank of India (RBI) on Thursday evening capped withdrawals at Rs 50,000 for the next one month and imposed strict limits on operations at the country's fourth-largest private lender that faced "regular outflow of liquidity" after an effort to raise new capital failed.

"I am in continuous interaction with the RBI. The RBI is fully seized of the matter and has assured they will give a quick resolution," Sitharaman said here.

She said no depositor will lose his or her money and insisted that the immediate priority is to ensure Yes Bank customers are able to withdraw money within the stipulated cap.

"I want to assure every depositor that their money shall be safe. Their monies are safe," she said. "I am constantly in contact with the RBI and the steps that are taken are taken in the interest of depositors, banks and economy. We are fully seized of the development."

She was talking to reporters after meeting State Bank of India (SBI) Chairman Rajnish Kumar. On Thursday, the SBI board gave its "in-principle" approval to exploring investment opportunities in Yes Bank.

"So I repeat, the depositors can be assured that their money is safe," she said.

Soon after the RBI takeover, depositors thronged Yes Bank ATMs to withdraw money and police had to be deployed in some places to control the crowds.

Yes Bank has 1,000 branches across the country.

Refusing to elaborate on her meeting with the SBI chairman, the minister said that "was on a completely different matter".

"RBI governor has given me assurance that there will be an appropriate resolution soon. No depositor will lose (money)," she said. "Reserve Bank has taken cognizance of the problem."

The central bank, she said, has gone through the "process over and over again to find out an amicable solution".

"And that has been over the last couple of months. So it is not as if they have come in suddenly now. We have been monitoring the situation," she said adding the RBI has appointed an administrator who previously was with the SBI.

"Both the RBI and the government are looking at this with all the details before them, not just today. I have personally monitored the situation over the last couple of months with the RBI. Therefore we have taken a course which will be in everybody's interest," she added.

Yes Bank had been seeking new capital since last year to bolster its ratios and quell questions about its stability due to its exposure to the non-banking finance industry entangled in a prolonged crunch in the local credit market.

The SBI chairman said the resolution to the Yes Bank crisis will come "very shortly".

"This is not a sectoral problem. It is a bank-specific problem," he said. "The RBI will take all steps to ensure financial stability."

On SBI picking up a stake in Yes Bank, he said the lender already has an in-principle approval for doing so.

"If SBI has to pick up a stake in Yes Bank, we have an in-principle approval for that," he said.

Commenting on the crisis at Yes Bank, Alka Anbarasu, Vice President – Senior Credit Officer, Financial Institutions, Moody's Investors Service, said: "RBI's moratorium on Yes Bank is credit negative as it affects timely repayment of bank depositors and creditors."

"While Moody's expects Indian authorities will take steps to prevent the weakness in the bank's viability from significantly impacting its depositors and senior creditors, the lack of a coordinated and timely action highlights continued uncertainty around bank resolutions in India," she said.

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News Network
February 2,2020

Mount Maunganui, Feb 2: India registered a rare 5-0 whitewash against New Zealand after notching up a seven-run win in the fifth and final T20 International at Bay Oval here on Sunday.

Electing to bat, India posted 163 for three, riding on Rohit Sharma's 60 off 41 balls and a 33-ball 45 from K L Rahul.

The visitors then restricted the hosts to 156 for nine with Jasprit Bumrah claiming three wickets for 12 runs.

Chasing the target, the Black Caps were tottering at 17 for three in 3.2 overs.

Tim Seifert (50) and Ross Taylor (53) then added 99 runs for the fourth wicket as New Zealand recovered to 116.

Seifert clobbered a 30-ball 50 studded with five fours and three sixes, while Ross Taylor hit two sixes and five fours in his 47-ball 53-run innings.

However, once Seifert was dismissed in the 13th over, the hosts suffered a collapse, losing five wickets, including Taylor, for 25 runs to loss the plot in the end.

Brief Score:

India: 163 for 3 in 20 overs (Rohit Sharma 60; S Kuggeleijn 2/25)    

New Zealand: 156 for 9 in 20 overs (Ross Taylor 53, Tim Seifert 50; Jasprit Bumrah 3/12).

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Agencies
June 21,2020

New Delhi, June 21: Diesel prices rise to record high after 60 paise hike in rates, petrol up 35 paise; rates up by Rs 8.88 and Rs 7.97 in 15 days.

Petrol price in Delhi was hiked to Rs 79.23 per litre from Rs 78.88, while diesel rates were increased to Rs 78.27 a litre from Rs 77.67, according to a price notification of state oil marketing companies. 

In Bengaluru, petrol will be costlier by 37 paise at Rs 81.81 per litre, while diesel will cost 57 paise more per litre at Rs 74.43.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

The 15th daily increase in rates since oil companies on June 7 restarted revising prices in line with costs after ending an 82-day hiatus in rate revision, has taken diesel prices to a new high. The petrol price too is at a two-year high.

Over 63 per cent of the retail selling price of diesel is taxes. Out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT. 

Petrol in Mumbai costs Rs 86.04 per litre and diesel is priced at Rs 76.69.

Prior to the current rally, the peak diesel rates had touched was on October 16, 2018 when prices had climbed to Rs 75.69 per litre in Delhi. The highest-ever petrol price was on October 4, 2018 when rates soared to Rs 84 a litre in Delhi.

When rates had peaked in October 2018, the government had cut excise duty on petrol and diesel by Rs 1.50 per litre each. State-owned oil companies were asked to absorb another Re 1 a litre to help cut retail rates by Rs 2.50 a litre.

Oil companies had quickly recouped the Re 1 and the government in July 2019 raised excise duty by Rs 2 a litre.

The government on March 14 hiked excise duty on petrol and diesel by Rs 3 per litre each and then again on May 5 by a record Rs 10 per litre in case of petrol and Rs 13 on diesel. The two hikes gave the government Rs 2 lakh crore in additional tax revenues.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), instead of passing on the excise duty hikes to customers, adjusted them against the fall in the retail rates that was warranted because of a decline in international oil prices to two-decade lows.

International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them.

In 15 days of hike, petrol price has gone up by Rs 7.97 per litre and diesel by Rs 8.88 a litre.

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