Russian Deputy Prime Minister Alexander Novak said in an interview with the Russian Vesti channel that Europe will not be able to fill the gas supply deficit without Russian supplies, in light of the closure of the Strait of Hormuz and the cessation of work at a Qatari gas facility after it was exposed to attacks.
Novak added on Sunday: “We are confident that there is currently no way to fill the deficit, in light of the closure of the Strait of Hormuz and the shutdown of a Qatari gas facility as a result of attacks that occurred last March.” For this reason, I believe that European politicians are harming themselves if they impose an embargo on supplies, including supplies coming from Russia,” according to what the Russian “TASS” news agency reported.
Novak pointed out that European consumers will be the ones who will bear the consequences of these decisions.
“Accordingly, there will be a shortage of supplies,” Novak added. The decision to impose a ban on liquefied natural gas supplies, scheduled to take effect on January 1, raises great astonishment. Because the European gas market is currently suffering from an imbalance. As we know, the deficit is large, and stored gas reserves are much less; “I believe it is 10 percent less than the average inventories recorded during the same period in previous years.”
The Saudi stock market began trading on Sunday with an increase, after declining for two consecutive sessions, with investors awaiting the results of companies’ operations for the third quarter, and evaluating the repercussions of the military escalation in the region and the rise in oil prices on the profits of listed companies, while the rest of the Gulf markets declined by less than half a percent.
The main market index, TASI, rose by 0.6 percent to 10,170 points in early trading, supported by gains in leading stocks, after ending last week in decline for the seventh week in a row.
Saudi Aramco shares rose by 2 percent to 25.80 riyals, while most sectors of the market rose.
The market performance came in conjunction with the rise of Brent crude oil to about $110 per barrel for the first time since May, after it rose by 3.7 percent in the Friday session, with the diminishing chances of an imminent breakthrough in supply disruptions from the region, in conjunction with the continuation of mutual attacks between Russia and Ukraine on energy facilities.
Data from the South Korean Central Bank showed, on Sunday, that the South Korean currency, the won, gained strength against the dollar in light of the increase in the supply of the dollar due to the recovery in exports.
The South Korean Yonhap News Agency reported that the won currency recorded an average of 1,342.6 won against the dollar during the first 12 trading sessions this October, which is the lowest level since September 2024, when the average exchange rate of the won against the dollar reached 1,332.8 won, according to data from the Economic Statistics System of the Central Bank of Korea.
The average monthly exchange rate rose to 1,492.5 won last March following the outbreak of war in the Middle East, and recorded 1,528 won last June in light of the rise in crude oil prices.
The South Korean currency has gained strength since then, with exporters selling dollars in the market, with the average monthly exchange rate falling to 1,488.9 won last July, 1,404.4 won last August, and 1,358.8 won last September.
Experts said that South Korea's trade surplus and the abundance of the dollar currency supported the rise in the value of the won.
The International Monetary Fund had raised its forecast for South Korea's economic growth to 3.3 percent in 2026, attributing this to strong semiconductor exports that mitigated the impact of the war in the Middle East.
Interest rate
The results of a poll on Sunday showed that economists expect the South Korean Central Bank to keep interest rates unchanged during its next meeting scheduled for later this week.
A survey of six economists, conducted by the South Korean Yonhap Agency, concluded that all economists expected the bank’s monetary policy council to keep the interest rate at 3 percent during the meeting scheduled for next Thursday.
Economists said the central bank needed time to assess market conditions after raising interest rates twice in a row last July and August.
“Raising the interest rate three times in a row could represent a huge burden on local families and companies,” said Joo Won, a researcher at the Hyundai Research Institute.
He added: “It is highly likely that the central bank will stop raising interest rates this time to evaluate the repercussions of raising interest rates previously.”
It is noteworthy that during a parliamentary scrutiny session last week, Central Bank Governor Shin Hyun-sung indicated a possible pause in raising the interest rate, and said: “When we set monetary policy, we always evaluate the amount of time that economic officials need to evaluate their ability to do so.”
