The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which entered into force on Monday, eliminates tariffs on most Indian exports to Oman, covering about 99% of the value of India’s shipments to the Gulf state. The agreement comes at a time when India is seeking to safeguard critical supply chains amid ongoing turmoil in the Middle East following U.S.-Israeli attacks on Iran on Feb. 28.

Indian officials and trade experts say the pact assumes added significance as the closure of the Strait of Hormuz threatens one of the world’s most important energy and shipping routes. Despite efforts to diversify sourcing and transport networks, India remains dependent on the corridor for roughly 30% of its crude oil imports and about 90% of its liquefied petroleum gas imports.

In a statement, India’s Ministry of Commerce and Industry said Oman’s ports of Sohar, Duqm and Salalah would provide Indian exporters with enhanced access to Gulf and East African markets, helping establish what it described as a new trade gateway for Indian businesses.

Anil Wadhwa, a former Indian ambassador to Oman and a distinguished fellow at the Vivekananda International Foundation, said the agreement had acquired immediate strategic relevance because of the regional crisis.

“The coming into force of the CEPA between India and Oman has immediately gained significance due to the crisis in the Middle East and the closure of the Strait of Hormuz,” Wadhwa said, adding that the pact offered India alternative logistics channels, transshipment facilities and stronger commercial linkages at a time of growing uncertainty in global supply chains.

He said the agreement would not fully shield India from the broader economic consequences of a prolonged regional conflict but could help mitigate disruptions by preserving access to key trade corridors.

The CEPA is India’s second bilateral trade agreement with a member of the Gulf Cooperation Council after a similar pact with the United Arab Emirates signed in 2022. For Oman, the deal is its second bilateral free trade agreement after its accord with the United States in 2006.

Oman is India’s second-largest trading partner in the Gulf region, with bilateral trade exceeding $11 billion in the 2025-26 fiscal year.

Industry groups view the agreement as a mechanism to strengthen India’s manufacturing exports while reducing logistical dependence on routes affected by the Hormuz crisis.

Manish Mohan, senior director at the Confederation of Indian Industry, said the prolonged disruption of shipping through the strait had heightened concerns over fuel imports, fertilizer supplies and freight costs.

India, the world’s second-largest fertilizer consumer after China, uses more than 60 million tonnes of fertilizer annually. The conflict involving Iran has affected fertilizer supply chains, with Gulf producers accounting for about one-third of India’s imports of urea and phosphate-based fertilizers.

Mohan said Oman’s location outside the Strait of Hormuz increased its value as a commercial hub and alternative entry point for Indian imports if regional instability persists.

The agreement is also expected to support investment flows and deepen economic ties between the two countries, while providing Indian exporters with improved access to markets across the Gulf and eastern Africa through Omani ports and logistics infrastructure.

Preliminary results released by Malta’s Electoral Commission showed Labour securing 52% of the vote, ahead of the opposition Nationalist Party (PN) on 45%, confirming the party’s continued dominance of the Mediterranean island nation’s political landscape.

Abela, 48, sought a fresh mandate a year before the scheduled election, arguing that Malta needed political stability to navigate potential economic fallout from tensions in the Middle East. The island’s economy expanded by 4.0% last year, but policymakers have expressed concern that higher aviation fuel costs could affect tourism, a key pillar of the economy, while also contributing to inflationary pressures.

Speaking to supporters gathered outside Labour headquarters, Abela hailed the result as a historic achievement for the party. Celebrations broke out across Malta, with supporters setting off fireworks and gathering in the streets after preliminary results confirmed Labour’s victory.

The election pitted Abela against Nationalist Party leader Alex Borg, a 30-year-old lawyer who campaigned on a platform of political change. Despite the opposition’s efforts, economic stability remained the dominant issue during the campaign.

Abela has led Malta since 2020, when he succeeded his predecessor following a political crisis linked to the 2017 assassination of investigative journalist Daphne Caruana Galizia. Concerns over governance and corruption persisted in the background of the campaign, with a 2025 Council of Europe report stating that Malta remained significantly behind in tackling corruption, although the issue featured less prominently in the election debate.

Malta, the European Union’s smallest member state, has experienced rapid economic growth driven by tourism, financial services and online gaming. The country has also undergone a sharp population increase over the past decade, largely due to immigration, fueling construction activity while placing pressure on infrastructure and public services.

The island remains heavily dependent on imports and vulnerable to external economic shocks. Labour has pledged to maintain subsidies on household energy bills, a policy that has helped shield consumers from higher energy costs.

Environmental groups have raised concerns about extensive development and its impact on heritage sites and natural resources, while climate-related risks including drought and desertification received limited attention from the major parties during the campaign.

Klingbeil is due to travel to Paris for a meeting of G7 finance ministers and central bank governors scheduled for Monday and Tuesday, where the Iran conflict and its economic implications are expected to feature prominently on the agenda.

“The G7 is the right place to discuss how we can help bring about a lasting end to the war in Iran,” Klingbeil said in remarks released before the meeting. He added that Germany and its European partners remained committed to cooperation, open trade and rules-based international partnerships.

The minister said recent geopolitical and economic shocks had reinforced the need for Germany and Europe to strengthen resilience in critical sectors including raw materials, energy supplies and industrial supply chains.

The conflict has heightened concerns over shipping through the Strait of Hormuz, one of the world’s most strategically important oil transit routes. Any prolonged disruption could affect global energy markets and trade flows.

Klingbeil also said finance ministers from Brazil, India, South Korea and Kenya would participate in discussions in Paris as part of a broader effort to deepen international economic partnerships beyond the G7 bloc.

He said Germany would continue supporting Ukraine despite mounting tensions in the Middle East and would not allow the Iran crisis to divert attention from Russia’s war in Ukraine.

Klingbeil is expected to sign a double taxation agreement with Ukrainian Finance Minister Sergii Marchenko during the Paris meetings, a step he said would strengthen economic cooperation and provide greater legal certainty for businesses operating between the two countries.

Trump indicated the pause was intended to create diplomatic space for negotiations, signaling a possible shift toward a negotiated resolution in the strategically vital waterway, a key global oil transit route.

The decision comes amid heightened tensions linked to the ongoing Iran conflict, which has disrupted shipping flows and contributed to increased energy costs. Despite the pause in operational activity, the continued enforcement of the blockade suggests that pressure on the situation will be maintained while talks proceed.

The Strait of Hormuz, through which a significant share of the world’s oil supply passes, has remained at the center of geopolitical and economic concerns, with recent incidents underscoring the risks to commercial shipping and global energy markets.

US officials have not disclosed details of the proposed agreement or the parties involved, and no timeline has been provided for the duration of the pause.

“The ceasefire is not over,” Hegseth told reporters during a briefing at the Pentagon, adding that U.S. forces would continue to defend maritime traffic while avoiding escalation. He said any determination of a ceasefire breach would rest with President Donald Trump.

The comments came as tensions mounted following reported exchanges of fire between U.S. and Iranian forces, underscoring the fragility of a truce reached after hostilities erupted earlier this year. The confrontation has centered on control and access to the Strait of Hormuz, a vital conduit for global energy shipments.

Trump on Monday announced the launch of “Project Freedom,” a military operation aimed at protecting commercial vessels transiting the waterway. Hegseth described the initiative as “defensive in nature, focused in scope and temporary in duration,” with the sole objective of shielding shipping from what he termed Iranian aggression.

“Iran does not control the strait,” Hegseth said, adding that U.S. forces would not need to enter Iranian territorial waters or airspace to carry out the mission. “We’re not looking for a fight.”Iran had effectively disrupted traffic through the strait after the conflict began on February 28, following the involvement of U.S. and Israeli forces, raising concerns over global supply chains and energy markets.

Hegseth cautioned Tehran to act prudently, reiterating Washington’s position that it seeks to prevent escalation while maintaining freedom of navigation through one of the world’s most strategically sensitive maritime corridors.

According to an official statement, the exchange focused on developments in the region amid heightened geopolitical tensions, though no further details were provided on specific issues or outcomes of the discussion.

The call comes as countries across the region intensify diplomatic engagement in response to evolving security dynamics linked to the ongoing crisis involving Iran and its broader regional implications.

The warning came as Israeli authorities issued new displacement orders for 16 areas south of the Litani River, instructing residents to move toward the nearby city of Saida, adding further pressure on already strained communities and humanitarian operations.

U.N. spokesperson Stephane Dujarric said civilians continued to bear the brunt of the hostilities, with women and children disproportionately affected by displacement, overcrowded shelters and worsening living conditions.

He said reports indicated rising levels of psychological distress, family separation and increased risks of gender-based violence, particularly in temporary shelters where access to protection services remains limited.

“We and our partners are responding to the mounting needs where access allows,” Dujarric told reporters, while noting that humanitarian operations remain constrained by insecurity and restricted access in several affected areas.

A new joint analysis by the U.N. Food and Agriculture Organization and the World Food Programme found that a sharp escalation in violence had reversed earlier food-security improvements and pushed Lebanon back into a crisis phase.

According to the latest Integrated Food Security Phase Classification assessment, around 1.24 million people nearly one in four of those surveyed — are projected to face IPC Phase 3, or crisis-level, food insecurity or worse during the April-to-August period.

At that level, households are typically forced to adopt severe coping strategies such as skipping meals, reducing food quality or selling essential assets to afford basic supplies.

Lebanon has been grappling with overlapping economic, political and security crises for years, with inflation, currency collapse and weakened state institutions already undermining access to food and public services before the latest surge in violence.

Humanitarian agencies also warned that funding shortfalls were limiting relief efforts. The Lebanon Flash Appeal has received just over $117 million so far, only 38% of the $308 million required to meet urgent needs, according to U.N. figures.

Dujarric said that without immediate additional funding and improved humanitarian access, conditions were likely to deteriorate further, leaving more families exposed to hunger, displacement and prolonged hardship.

The attack targeted a unit serving with the United Nations Interim Force in Lebanon as it was traveling to an outpost isolated by ongoing hostilities between Israeli forces and Hezbollah, according to UN officials.

In a statement, Security Council members denounced the assault “in the strongest terms” and reaffirmed their full support for UNIFIL operations in the region. The council did not assign responsibility, though France has blamed Hezbollah for the attack.

The incident occurred on Saturday amid heightened tensions along the Lebanon-Israel border, where clashes have intensified in recent weeks. UNIFIL peacekeepers are mandated to monitor hostilities and support stability in southern Lebanon.

French authorities have not released further operational details about the ambush, while the United Nations has called for accountability and the protection of peacekeeping personnel under international law.

The attack underscores growing risks faced by UN forces operating in volatile regions conflict zones, as diplomatic efforts continue to prevent further escalation in Lebanon.

IEA Executive Director Fatih Birol said that while March deliveries largely reflected cargoes loaded before the crisis escalated, the situation has shifted significantly. “During the month of April, nothing has been loaded,” he told reporters following meetings at the International Monetary Fund, adding that prolonged disruption would intensify market pressures.

Birol said the agency is tracking damage to energy infrastructure across the region, noting that more than a third of over 80 affected facilities have sustained severe damage. He described the situation as a major energy security challenge with global implications, warning that no country would be insulated from the fallout.

IMF Managing Director Kristalina Georgieva said there is an urgent need to assess the scale of economic impact stemming from infrastructure losses tied to the conflict.World Bank President Ajay Banga said the institution is preparing for multiple scenarios depending on the duration and intensity of hostilities, including expanded financial support.

The IMF has indicated it can make up to $50 billion available, while the World Bank has outlined potential financing of up to $25 billion, with the possibility of increasing total support to $60 billion over six months if conditions worsen.

The conflict, triggered by U.S.-Israeli strikes on Iran beginning February 28, has disrupted flows through the Strait of Hormuz, a critical artery for global oil shipments. Iran’s actions to impede maritime traffic, followed by a U.S. naval blockade, have heightened concerns over supply constraints and price volatility.

Although a two-week ceasefire was agreed last week to enable negotiations, talks in Islamabad failed to produce a breakthrough, raising uncertainty over whether the truce will hold.

International mediators, including Pakistan and Qatar, have urged both sides to maintain the ceasefire, while UN Secretary-General Antonio Guterres called for the restoration of freedom of navigation in the region.

In a telephone conversation, Merz also voiced “grave concern” over developments in the Palestinian territories and stressed that there must be no “de facto partial annexation” of the West Bank, according to a government spokesperson.

The call comes amid escalating tensions following the conflict launched on February 28 by Israel and the United States against Iran, which has increasingly threatened to expand into a broader regional war. German officials said Merz reiterated Berlin’s support for diplomatic efforts aimed at securing an understanding between Washington and Tehran.

Merz, who had initially backed the U.S.-Israeli military action, has shifted his stance as economic risks and security concerns intensify, including Iranian retaliatory strikes and disruptions to global energy flows.

He also indicated that Germany could contribute to ensuring maritime security in the Strait of Hormuz, a key global oil transit route, but only after hostilities cease and necessary conditions are in place.Shipping through the strait, which previously accounted for roughly one-fifth of global oil supplies, has been significantly disrupted amid Iranian threats targeting commercial vessels.

The situation has been further complicated by a partial naval blockade declared by U.S. President Donald Trump following stalled negotiations with Iran.