Syria's Deir Az Zor is rich in oil. But the eastern province has been devastated by years of civil war. After nearly 14 years of civil war, Syria's economy is in tatters. Its infrastructure is in ruins. The nation's new leadership faces the daunting challenge of rebuilding it. The government is betting heavily on foreign investment to jump-start growth. And some of the Western sanctions are eased.
Crude oil prices were volatile and retreated following a sanctions-driven surge on Tuesday. The market could remain sensitive to the possibility of fresh US sanctions and is assessing the measures targeting vessels involved in Iran's oil shipping network. Traders could also remain cautious ahead of Sunday's OPEC+ meeting on September 7th. The consensus anticipates that the eight members participating in voluntary cuts to maintain current levels, putting a pause to their production increases and potentially anchoring prices within the established range.
Belgium's deputy prime minister Maxime Prevot announced the move during the night after complex negotiations within the governing five-party coalition. He also announced 12 sanctions measures against Israel, including a ban on the import of products from occupied territories and restrictions on consular aid to Belgians living in those areas. The Belgian government will also declare persona non grata (not welcome on Belgian soil) two far-right Israeli ministers, Itamar Ben Gvir and Bezalel Smotrich, as well as several violent Israeli settlers and Hamas leaders.
"I don't think there's a big wall of oil coming from Russia if peace breaks out," said energy forecaster Dan Pickering. "My expectation is there's a more significant impact on sentiment-'Here come the Russians'-than there would be on actual barrels."
U.S. Secretary of State Marco Rubio stated that sanctions were imposed on officials abetting Cuba's coercive labor export scheme, which enriches the Cuban regime and deprives its people of medical care.