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Iran-Israel tensions: Oil prices fall after Iranian attack escalates tensions

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Oil prices dropped in early Asian trading following Iran’s retaliatory strike on Israel over the weekend.

Brent crude, a significant gauge for global oil prices, dipped but remained close to $90 per barrel on Monday morning. Prices had surged in anticipation of Iran’s actions, with Brent crude reaching nearly a six-month high last week.

Israeli Defence Minister Yoav Gallant emphasized that the conflict with Iran is ongoing. “The oil market currently seems unconcerned about any additional threat to supply,” noted energy analyst Vandana Hari.

While Brent crude might dip below $90, a substantial decrease is unlikely as traders continue to monitor the risks stemming from conflicts in Gaza and Ukraine, Hari added.

Analysts highlighted Israel’s response to the attack as crucial for global markets in the coming days and weeks. Peter McGuire of trading platform XM.com anticipated volatility in the energy market and suggested that oil prices would soar if Israel responded forcefully to Iran’s actions.

In the Asia-Pacific region, share markets declined on Monday as investors assessed the impact of the attack. The Hang Seng in Hong Kong, Japan’s Nikkei 225, and South Korea’s Kospi all saw decreases, while China’s Shanghai Stock Exchange Composite rose by more than 1%.

Economy

CPC Seeks Investors As Natural Gas Confirmed in Mannar Basin

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The Ceylon Petroleum Corporation says the process of calling for proposals to select an appropriate investor to extract and utilize the natural gas resources in the Mannar Basin will begin this month.

Managing Director of CPC, Dr. Mayura Neththikumara, said the presence of natural gas in the Mannar Basin has been scientifically confirmed by the Sri Lanka Petroleum Development Authority.

The relevant process will be carried out with the approval of the Procurement Committee, and investors will be given approximately five months to submit their applications.

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Economy

Battery storage systems to join national grid in September

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Commercial-scale battery energy storage systems being installed at 16 electricity transmission substations across Sri Lanka are expected to be connected to the national grid in early September.

The systems, which were brought into Sri Lanka through the Colombo Port in three stages during May and June, are currently in the final stages of construction.

The project being implemented by WindForce PLC near the Anuradhapura substation is now around 85% complete.

The battery systems will store excess electricity generated by solar power plants during the daytime and release the stored electricity to the national grid at night when required.

Officials said the system would help maintain the stability of the national grid while reducing the need to generate electricity from diesel power plants during nighttime hours.

Each battery energy storage project will have a capacity of 10 MW. The National System Operator Ltd. (NSO), operating under the Ministry of Energy, will be responsible for managing and controlling the systems, while their maintenance will be handled by the respective companies.

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Delft Island to become Sri Lanka’s first zero emission eco‑tourism destination

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The Government of Sri Lanka has unveiled plans to transform Delft Island into the country’s first Zero Emission eco‑tourism destination, with a strong emphasis on sustainability, environmental conservation, and the preservation of its unique natural and cultural heritage.

A special site inspection and stakeholder discussion on the proposed development was held under the leadership of Deputy Minister of Tourism Ruwan Ranasinghe recently. 

The island, renowned for its Dutch‑era ruins, numerous archaeological landmarks, and iconic wild horses, is seen as possessing exceptional tourism potential.

Deputy Minister Ranasinghe told participants that Delft Island should be experienced not only by international visitors but also by domestic tourists. Despite its extraordinary attractions, he noted, the island has so far made only a limited contribution to Sri Lanka’s tourism industry. 

He emphasized the Government’s commitment to unlocking Delft’s full potential through sustainable and environmentally responsible development. 

Discussions focused on identifying priority infrastructure to position Delft Island as a premier tourism destination, with key areas including water supply, road infrastructure, transportation and accessibility. Strengthening community participation was also highlighted, with plans to enhance the knowledge and hospitality skills of local residents to enable them to benefit directly from tourism development.

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