Oman says it's mediated a ceasefire between the U.S. and Houthis

Summary

Marketplace Morning Report Episode: Oman Says It's Mediated a Ceasefire Between the U.S. and Houthis
Release Date: May 7, 2025

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1. Oman's Mediation Secures Ceasefire in the Red Sea

Background and Mediation Efforts:
The ongoing conflict stemming from Israel's October 2023 offensive against Hamas in Gaza has expanded beyond the immediate region. Iran-backed Houthi rebels in Yemen have been actively supporting Hamas, launching missiles and drones targeting Israeli and commercial vessels in the Red Sea. This escalation has significantly disrupted global maritime trade, as approximately 15% of world shipping transits through this vital waterway.

Ceasefire Agreement:
In a groundbreaking development, Oman has successfully mediated a ceasefire between the United States and the Houthi rebels. The Omani Foreign Minister, Syed Badr bin Hamad Al Bou Saidi, announced the deal via a post on X (formerly Twitter). According to al Bou Saidi, the agreement ensures the cessation of all attacks on commercial shipping in the Red Sea in exchange for the U.S. halting its strikes on Houthi positions in Yemen.

Syed Badr bin Hamad Al Bou Saidi (Omani Foreign Minister) [01:59]:
"Efforts have resulted in a ceasefire agreement between the two sides. In the future, neither side will target the other, including American vessels in the Red Sea and Bab el Mandeb Strait, ensuring freedom of navigation and the smooth flow of international commercial shipping."

Exclusions and Future Implications:
Notably, the ceasefire agreement does not encompass Israel. The Houthi rebels have indicated that their attacks on Israeli interests may persist despite the truce with the U.S., creating potential flashpoints in the region.

Hugo Bochega (BBC Correspondent) [02:48]:
"The Houthis have also been attacking Israel, and there has been some reaction from a senior Houthi official indicating that these attacks by the Houthis on Israel are likely to continue."

2. Global Market Movements and Economic Insights

Stock Market Fluctuations:
Pakistan's stock index experienced a decline of 2% following a series of strikes by India on Pakistan and the Pakistan-administered Kashmir region. In contrast, the pharmaceutical sector showed resilience as Novo Nordisk surpassed its sales forecasts for its obesity drug, Wegovy, leading to a 6% increase in its share price despite initial setbacks.

Automotive Industry Warning:
German automaker BMW reported a significant 25% drop in pre-tax earnings. The company cautioned that imposed tariffs are expected to adversely affect its business in the upcoming second quarter.

US-China Trade Talks:
A pivotal meeting between China and the United States is scheduled to take place in Switzerland. This marks the first high-level interaction since President Trump implemented extensive tariffs on Chinese goods.

Scott Besant (US Treasury Secretary) [03:36]:
"This meeting will be the first high-level interaction between the two superpowers since the Chinese Vice President attended Mr. Trump's inauguration in January. I look forward to rebalancing the international economic system to better serve the interests of the US."

China's Strategic Engagement:
Beijing has opted to engage with the U.S. after thorough consideration of global expectations, national interests, and appeals from American businesses, signaling a potential shift towards more cooperative economic relations.

3. Colombia Joins China's Belt and Road Initiative

In a strategic move, Colombia plans to become part of China's Belt and Road Initiative (BRI) this week. Analysts suggest that this decision may strain Colombia's already tenuous relationship with Washington, its primary trade partner. The alignment with China’s expansive infrastructure and investment project underscores the shifting dynamics in global trade alliances.

Laura Bicker (BBC Correspondent in Beijing) [04:10]:
"Colombia's decision to join the Belt and Road Initiative is poised to impact its trade relations with the United States significantly."

4. Former President Joe Biden's Exclusive Interview

Economic Achievements:
In his first interview since leaving office, former President Joe Biden highlighted his administration's accomplishments, emphasizing job creation and economic growth.

Joe Biden [04:44]:
"When I left office, we had created more jobs than any president in the history of the United States in one term. Our economy was roaring, the stock market was way up, and we were expanding our influence around the world in a positive way."

Defense of Presidential Performance:
Biden addressed comparisons with former President Trump’s first hundred days in office, defending his own record and expressing skepticism about Trump's achievements during the same period.

Joe Biden [05:35]:
"I'll let history judge that. I don't see anything that was triumphant."

The full interview is available on the BBC News website for listeners seeking more in-depth insights.

5. Spain's Power Outage Management

Last week, Spain and Portugal experienced a significant power outage. Spanish Prime Minister Pedro Sanchez provided an update, asserting that the blackout was not due to an overreliance on renewable energy sources or a deficiency in nuclear power.

Pedro Sanchez [06:05]:
"The good behavior of the police and the municipal authorities and the drivers and everybody all allowed us to manage the lack of energy supply without major incidents on that very day."

Sanchez commended the population's response, noting a 24% reduction in accidents compared to the previous week.

6. Ant Smuggling Case in Kenya

A Nairobi court has sentenced four men to pay fines nearing $8,000 each or face 12 months in jail for attempting to smuggle thousands of rare ants out of Kenya. The Kenya Wildlife Service accused the individuals of biopiracy, intending to sell the exotic insects to collectors in Europe and Asia, where they reportedly command high prices. The defendants admitted possession of the ants but denied any trafficking intentions.

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Conclusion:
The Marketplace Morning Report for May 7, 2025, delivered a comprehensive overview of significant geopolitical developments, economic indicators, and unique local stories. From Oman's diplomatic efforts to secure maritime peace in the Red Sea to Colombia's strategic alignment with China's Belt and Road Initiative, the episode underscored the intricate interplay of international relations and economic strategies shaping the global landscape.

Transcript

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[Liana Byrne]

Have the shipping Water has been calmed in the Red Sea. Hello, you're listening to the Marketplace Morning report from the BBC World Service. I'm Liana Byrne. Good morning. So for this story we need to go back to October 2023, when Israel launched its war against Hamas in Gaza following attacks from Hamas in Israel. In Yemen, Iran backed Houthi rebels got involved in support of Hamas and have been firing missiles and drones at Israeli and merchant ships in the Red Sea over the last 18 months. And that's caused a lot of disruption to global trade. You see, that waterway is a global choke point. Roughly 15% of world maritime trade moves through the Red Sea and the Suez Canal. It's the fastest sea lane between Asia and Europe. To protect shipping, the US and its allies have been striking Houthi targets. President Trump has said this would now stop as the Houthis have agreed to stand down the Gulf state. Oman says it has negotiated a ceasefire in return for the safe passage of commercial shipping in the Red Sea. The Omani foreign minister, Syed Badr bin Hamad Al Bou Saidi, announced the deal in a post on X. We have voiced part of his statement.

[Hugo Bochega]

Efforts have resulted in a ceasefire agreement between the two sides. In the future, neither side will target the other, including American vessels in the Red Sea and Bab el Mandeb Strait, ensuring freedom of navigation and and the smooth flow of international commercial shipping.

[Liana Byrne]

But the arrangement doesn't include Israel itself. As the BBC's Hugo Pachega explains from Jerusalem.

[Omani Foreign Minister]

This was a surprise announcement that was made by the president and there has been confirmation of what he announced by Oman, saying that he had acted as mediator in these talks between the Americans and the Houthis. So the Houthis would stop its attacks on vessels in the Red Sea and in return the the US Would halt its attacks on Houthi positions in Yemen. But what is very important here is that there has been no mention of Israel in these statements by Oman, by President Trump. The Houthis have also been attacking Israel and there has been some reaction from a senior Houthi officials indicating that these attacks by the Houthis on Israel are likely to continue.

[Liana Byrne]

Hugo Bochega there. Now let's do the numbers. Pakistan's stock index is down 2% after India launched a series series of strikes on Pakistan and Pakistan administered Kashmir. The obesity drug maker Novo Nordisk has caught its sales forecasts for the first time since its launch at waste loss drug WeGovy four years ago. But that didn't stop its share price jumping by about 6%. And the German automaker BMW posted pre tax earnings down 25% and warned that tariffs will have a notable second quarter impact on its business. China and the US are set to hold trade talks in Switzerland on Friday. It'll be their first since President Trump brought in sweeping tariffs. The BBC's Laura Bicker reports from Beijing.

[Scott Besant]

This meeting will be the first high level interaction between the two superpowers since the Chinese Vice President han Zhong attended Mr. Trump's inauguration in January. The US Treasury Secretary Scott Besant said he looked forward to rebalancing the international national economic system to better serve the interests of the US Chinese state media reported that Beijing had decided to engage with the US after fully considering global expectations, the country's interests and appeals from American businesses.

[Liana Byrne]

Laura Bicker reporting. Meanwhile, Colombia plans to sign up to join China's global infrastructure finance project, the Belt and Road Initiative, this week. Analysts say the move is bound to damage Bogota's already frayed relations at Washington, which is its key trade partner. Now the former US President Joe Biden has sat down with the BBC for an exclusive interview, his first since leaving the White House. In it, he discussed a wide range of topics, including defense, fears for the future US Europe relationship, and he defended his record on the economy.

[Joe Biden]

Let me tell you, when I left office, we had created more jobs than any president. History of the United States in one term, our economy was roaring. We were moving in a direction where the stock market was way up. We're in a situation where we were expanding our influence around the world in a positive way, increasing trade. We were in a situation where there was growth opportunity. And for example, they told me, remember Trump had this plan. He was going to rebuild America, increase our infrastructure. We had infrastructure week for four years. Another was built. I was able to convince the Congress and the American people to accept $1.3 trillion in economic growth.

[Liana Byrne]

So he says his hundred days is a triumph. What does President Biden say about Trump's first hundred days?

[Joe Biden]

I'll Let history judge that. I don't see anything that was triumphant.

[Liana Byrne]

And you can watch that full interview on the BBC news website. So remember, there was a massive power cut across Spain and Portugal last week. Well, the Spanish prime minister, Pedro Sanchez, has been delivering an update and says there's no evidence so far that it was caused by an excess of renewable energy or a lack of nuclear power. Mr. Sanchez also praised the population's response. His words are voiced by a translator in the street.

[Pedro Sanchez]

The good behavior of the police and the municipal authorities and the drivers and everybody all allowed us to manage the lack of energy supply without major incidents on that very day. What we found is that there were actually 24% fewer accidents than there had been the week before.

[Liana Byrne]

Spain's Prime Minister, Pedro Sanchez. And finally, regular listeners might remember thus this unusual story of ant smugglers in Kenya. Now, a court in Nairobi has ordered four men to each pay nearly $8,000 or face 12 months in jail for trying to smuggle thousands of rare ants out of the country, allegedly for trade in Europe and Asia. Kenya's Wildlife Service accused the group of biopiracy, saying they were planning to sell the ants to collectors in Europe and Asia, where exotic insects can fetch big money. The men admitted to having the ants, which are native to East Africa, but insisted they weren't trying to traffic them. And that's it from the Marketplace Morning Report from the BBC World Service. I'm Liana Byrne. Have a great day. Thanks for listening.

[Marketplace Investor Representative]

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