Day 32: Overnight Iranian strikes hit UAE; report indicates Trump willing to end war

South Korea to start crude oil swap with local refiners, ministry says

South Korea will introduce a policy allowing oil refiners to swap crude supply from its national reserve, a spokesperson from the industry ministry said on Tuesday.

The policy enables refiners to borrow crude oil from the national reserve and return the same volume once crude shipments secured abroad arrive, the ministry said.

South Korea's Yonhap News Agency first reported the swap.

The industry ministry also said authorities expect no disruption to supplies of crude oil in the country before June, according to a separate report from broadcaster YTN.

South Korea's local refiners have secured more than 20 million barrels of crude, which will be delivered by the end of June, YTN cited a senior Industry Ministry official as saying.

Japan PM says to work closely with Indonesia on energy security

 Japan and Indonesia will coordinate closely on energy security as the US-Israeli war with Iran squeezes oil and gas supplies from the Middle East, Japan's Prime Minister Sanae Takaichi said on Tuesday.

Takaichi made the comment after meeting Indonesia's President Prabowo Subianto in Tokyo.

UAE ambassador to India says Emirates will defend itself

UAE Ambassador to India Abdulnasser Alshaali said the Emirates has exercised "deliberate, calibrated, and strategic" restraint throughout the regional conflict, in an interview with IANS.

While Iran has launched missiles and drones toward civilian infrastructure, the situation within the UAE remains stable and under control despite "flagrant aggression," Alshaali added. The country's armed forces have defended the country's airspace and territory with precision, he said.

Oil slips, stocks rise

Oil prices sank and most stocks rose Tuesday, following a report that indicated Trump was willing to end the Iran war even if the key Strait of Hormuz remained closed.

But investors remain wary as the Wall Street Journal story came on the same day the US president threatened to destroy Iran's key oil export hub and desalination plants unless it accepts a deal, while also suggesting diplomacy was making headway.

The news comes as governments around the world scramble to implement measures to ease the burden of surging fuel prices while also looking to conserve energy, with one-fifth of global crude and gas passing through the waterway.

Both main oil contracts fell Tuesday, though West Texas Intermediate and Brent were still sitting well above $100 a barrel.

And most equity markets rose. Hong Kong, Shanghai, Sydney, Singapore, Wellington and Jakarta were all up, while Tokyo fluctuated. Seoul, Taipei and Manila fell.

South Korea proposes $17.3-billion extra budget

South Korea proposed on Tuesday a supplementary government budget of $17.3 billion to support consumers and companies hit by an escalating Middle East war.

A surge in oil prices sparked by the US-Israeli war on Iran has raised growth and inflation risks for Asia's fourth-largest economy, which is also the world's fourth-largest importer of oil, with 70 per cent of its purchases coming from the Middle East.

It is the second extra budget in less than a year under the administration of President Lee Jae Myung, who has vowed to pursue an expansionary fiscal policy to spur economic growth since taking office last June.

Israel military says four soldiers killed in south Lebanon

The Israeli military said on Tuesday four soldiers had been killed in combat in southern Lebanon where its forces are clashing with Hezbollah.

A military statement named three soldiers from the same battalion who "fell during combat" and a separate statement said another soldier, who had not yet been publicly named, had died in the same incident.

Another soldier was severely wounded and a reservist moderately wounded, according to the second statement.

Trump willing to end war even if Strait of Hormuz remains closed: WSJ

A report indicated US President Donald Trump was willing to end the Iran war even if the key Strait of Hormuz remained closed.

The Wall Street Journal, citing administration officials, said Trump and his aides had come to the conclusion that a mission to reopen the waterway would extend the length of the mission past his four- to six-week timeline.

It added that he had decided to focus on battering Iran's missiles and navy, before looking to pressure Iran diplomatically to reopen the Strait.

Explosions heard in Tehran: Local media

Explosions were heard in Tehran and power cuts hit some parts of the capital, Iranian media reported on Tuesday.

"Power outages in parts of Tehran after multiple explosions heard," Fars news agency reported.

Tasnim news agency also reported some residents in eastern Tehran were without electricity and that authorities were working to restore power.

Day 32 of war

With the war now beginning its second month, overnight Iranian strikes took place in two emirates. Sharjah's Thuraya Telecommunications Company was targeted by Iranian drones; no injuries were recorded.

Meanwhile in Dubai waters, a fire broke out on the Kuwaiti crude oil tanker Al Salmi, sustaining damage to its hull. Kuwait Petroleum Corporation (KPC) reported that the vessel was targeted by Iranian drones.

The fire was extinguished, all 24 crew members were secured, and no injuries were reported.

In a separate incident in Dubai's Al Badaa, a fire broke out in an abandoned house due to debris following an air defence interception; four minor injuries were reported among individuals in the vicinity.

On the global front, a Wall Street Journal report indicated Donald Trump was willing to end the Iran war even if the key Strait of Hormuz remained closed.