Good afternoon, friends. It’s another restless day in the press — both at home and abroad — as the regional war escalates. In today’s issue, we take a look at how the war is being depicted in Western media, recommend your next timely listen, and more.

So, when do we eat? Maghrib prayers are at 5:59pm in the capital, and you’ll have until 4:45am tomorrow to hydrate and caffeinate ahead of fajr.

THE BIG STORY TODAY-

📍 Hedging against the crisis: The EGP neared the 53 per USD mark during midday trading today. Meanwhile, the Finance Ministry entered negotiations to secure new hedging contracts for wheat and other strategic commodities, alongside renewing existing oil hedges, to shield the upcoming budget from escalating regional volatility, a government source tells EnterpriseAM.

Why hedging matters: While the draft budget originally estimated wheat at USD 270 per ton, officials warn that petroleum and grain will be the “most affected” if the crisis persists, prompting the push to renew oil hedges and lock in commodity costs.

Double pressure on FX: The greenback changed hands at EGP 52.85 (buy) and EGP 52.95 (sell) at major banks, as interbank activity climbed past USD 700 mn before the close. This was fueled by a combination of secondary debt market sell-offs and a rush by importers to open letters of credit early amid global shipping disruptions. Banking sources emphasized that while portfolio outflows are a factor, the accelerated demand for FX from importers has added significant pressure to the exchange rate over the last 48 hours, leaving the interbank floor dominated by “the possibility of further increases” as regional tensions show no sign of abating.

^^ We’ll have more on this story in tomorrow’s edition of EnterpriseAM.

THE BIG STORY ABROAD-

🌐 Still leading the front pages this afternoon is the appointment of Iran’s new supreme leader, Mojtaba Khamenei, the son of the late Ali Khamenei. The news has been met with fears of prolonged regional conflict and a continuing spike in oil prices — crude is currently trading over a record USD 119 per barrel.

Following the oil price surge, G7 finance ministers are reportedly set to engage in talks over a possible release of emergency oil reserves in a meeting later today coordinated by the International Energy Agency and its 32 members. US officials believe a joint release of 300-400 mn barrels — 25-30% of the reserve — would be suitable.

^^Read more on Reuters, The Guardian, and the Financial Times.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • The state will allocate the entire USD 3.5 bn from the Alam El Roum Development to ease pressures on the state treasury’s FX needs. The move marks a departure from the previous policy that saw the Finance Ministry only take half of asset sale and investment proceeds to pay down debt;
  • Industry Minister Khaled Hashem approved a new leasing mechanism for industrial zones. By scrapping the three-year lock-up period on industrial land, the ministry is creating a secondary market for industrial assets;
  • Global supply chain issues are forcing Egyptian exporters to make some tough calls. With freight and container ins. costs suddenly jumping by USD 2.5k-3k per shipment, many companies have simply paused sending goods to the Gulf and East Asia.

☀️ TOMORROW’S WEATHER- It’s another breezy day in the capital, with the mercury set to peak at a high of just 22°C, with a low of 11°C, according to our favorite weather app.

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