The Iran war seemed to be at a tipping point this time last week and recent developments provide, in the words of China’s foreign minister, “a glimmer of hope” that things are moving towards de-escalation. Even so, all the signs point to a growing hit to non-hydrocarbon activity in the Gulf. Elsewhere, Egypt has taken steps to curb local energy demand which threaten to disrupt activity. But the energy shock has at least forced the government to take steps to raise investment in Egypt’s own hydrocarbons sector, which has flagged in recent years and is a key reason why the country is now a large net energy importer.
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