Nd Middle East tensions hit inflation goals

            to reach its in昀氀ation target this year.             agencies and localities to closely fol     in order to continue its 昀氀exible mon etary policy, and to both boost eco nomic growth and control in昀氀ation.

Meanwhile, the Ministry of In dustry and Trade (MoIT) has been ordered to ensure suf昀椀cient electricity  business activities. There must be no shortages of electricity or disruption of fuel supplies under any circum stances, the ministry added.

    lowed increasingly complicated      landscape, in particular the escalat ing Middle East con昀氀ict.

The International Monetary Fund has warned that growing con昀氀ict in the region risks higher oil prices, a reversal of the recent fall in in昀氀ation,       mood in 昀椀nancial markets. It is close ly monitoring events in the region,  bility of a war between Iran and Israel could lead to higher interest rates.

Iranian leaders have reportedly         Hormuz if deemed necessary. The

        Sea. According to the US Energy In formation Administration (EIA), it is  point because about one-昀椀fth of the         a daily basis.

In the 昀椀rst half of 2023, its oil昀氀ow averaged 21 million barrels per day, or about 21 per cent of global pe troleum liquid consumption.

Although Israel is not a ma jor oil producer, its geopolitical signi昀椀cance and the potential for       focal point in the global oil market. The potential con昀氀ict has not only         cerns about supply disruptions, but     

economic indicators.

According to the EIA, per-bar rel prices of WTI and Brent Crude reached $86.21 and $90.84 as of late last week – up from $80 and $85 lev els, respectively, recorded on March 20. Analysts forecast that if the con昀氀ict is expanded, the average oil price may soar past $100 a barrel.

The MoIT reported that in Q1 of 2024, the world’s oil market was strongly impacted by political ten       cy of the Organization of the Petro leum Exporting Countries as well as non-members of the organisation, which pushed up oil prices.

In the Vietnamese market, the昀椀rst three months of this year saw the average fuel price increase by an average of 10.5-10.8 per cent. Last week, the petrol price exceed ed VND25,000 ($1.04) per litre. The

MoIT and the Ministry of Finance   sia-Ukraine con昀氀ict.

Vietnam, being heavily contin gent on oil imports, faces increased challenges. If global oil prices spike,      country will face prolonged high prices. This could potentially cause a ripple effect on the economy, raising the costs of transportation, goods, and services, thereby fuelling in昀氀ation.

Nguyen Hoai Nam, deputy gen eral secretary of the Vietnam Associ       ducers, said that the 昀椀shery industry is facing massive dif昀椀culties includ  fuel prices, and this has been burden ing enterprises.

      ting pressures on shipowners. Each trip offshore to 昀椀sh would need about VND300 million (over $13,000) for a ship,” Nam said. “Each time the fuel price is increased, the ship’s opera tional costs will escalate by 20-30 per  fuel, ice to freeze 昀椀sh, drinking water, and foodstuffs, among many others.”

Also, the augmentation in fuel prices have also caused a 15-20 per       for automobiles domestically.

Vietnam’s in昀氀ation grew 3.77 per cent on-year in Q1 2024, and the       the rate at below 4.5 per cent for the whole year. The MoIT has ordered                      and selling prices.

      sons. No shortages of petrol and no disruptions of petrol supply chains are allowed to happen in any local ity,” said Deputy of Industry and Trade Phan Thi Thang.

According to the MoIT, assorted      domestic sources in Q1 2024 reached 6.5 million cubic metres. The minis try cited both Nghi Son Re昀椀nery and Petrochemical LLC and Binh Son Re昀椀ning and Petrochemical JSC as reporting that in Q1, they produced an estimated volume of 3.7 million tonnes of assorted fuel. It is estimated  hit about six million cu.m.n

