April 8: US-Iran War's Impact on International Economy, Financial Markets, and Livelihoods

US President Donald Trump announced on the 7th that he has agreed to a two-week pause in bombing Iran after accepting a mediator's proposal for a 14-day ceasefire, causing oil prices to plummet by nearly 18%. Trump stated he spoke with Pakistani leaders, who have been mediating between Washington and Tehran and sought a two-week ceasefire. Following Trump's announcement of a two-week delay in large-scale strikes against Iran, West Texas Intermediate (WTI) crude oil prices plunged 17.84% to $92.80 per barrel around 7:28 AM Taipei time this morning.

Delta Air Lines and Southwest Airlines will increase checked baggage fees to offset cost pressures from surging jet fuel prices due to escalating tensions in the Middle East. Both airlines stated that the first and second checked baggage fees for new bookings will each increase by $10, raising the first bag fee to $45 and the second to $55. Delta plans to apply these adjustments to US domestic and some short-haul international routes, and the third checked baggage fee will increase by $50 to $200. Delta's increases apply to bookings on or after the 8th; Southwest's changes take effect for bookings on or after the 9th.

The Middle East war has led to soaring oil prices and exchange rates, putting the aviation industry in crisis. The Korea Aviation Association held a seminar on the 7th, stating plans to request a shorter reflection period for fuel surcharges and exemption from domestic airline jet fuel tariffs. The association noted that jet fuel prices, which account for over 30% of airline operating costs, have surged by about 147% since the Middle East war. Simultaneously, rising exchange rates have made the burden of paying maintenance costs in US dollars heavier for airlines. Therefore, the association requested exemption from domestic airline jet fuel tariffs and oil import surcharges until fuel prices stabilize to pre-Middle East war levels.

Czech Finance Minister Alena Schillerová announced on the 7th that maximum daily fuel prices would be set. Starting on the 8th, the maximum price for diesel at Czech gas stations will be 49.59 koruna per liter (approximately NT$74.98), and gasoline will be 43.15 koruna (approximately NT$65.24). Gas stations exceeding government-regulated prices could face fines of up to 5 million koruna.

Thai Prime Minister Anutin Charnvirakul stated on the 7th that the government is developing fuel-saving measures to secure domestic oil supply, including restricting gas station operating hours. Anutin said in a speech at the Ministry of Interior that the government might implement a night sales ban for gas stations as early as April 20, but emphasized it would not affect public travel during the April 11-15 Songkran festival. He expects gas stations to be prohibited from operating at night, specifically from 10 PM to 5 AM, after the Songkran holiday ends.

Madagascar announced a nationwide energy emergency for two weeks on the 7th. Authorities stated that the Middle East war has disrupted fuel supplies, affecting the operation of national public services. The Malagasy government stated in a declaration that due to fuel supply disruptions affecting daily life, the economy, and public services, the cabinet decided in a special meeting to declare a state of emergency. (Edited by Hung Pei-ying) 1150408