Good morning, all. It seems that most of us working from home yesterday did little to stem the flow of business news as we’ve got another unusually packed issue for you this morning.

Leading today’s issue: The non-oil private sector hit a two-year low in March, as the war in the Gulf pushed output and new orders to multi-year lows. Startups, too, are feeling the impact of the war, with funding coming to an abrupt stop last month, which sources reassured us isn’t a sign of a “fundamental shift” but rather “a flight to quality.”

We also have a one-on-one interview with CIB CEO Hisham Ezz Al Arab, who let us in on the lender’s plans to launch a digital bank, the forecast for the country’s banking sector, and much more.

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WISH THIS MORNING’S ISSUE was a podcast? We’ve got you. Tap or click here to listen to Morning Drive, a 10-minute version of today’s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or while stomping around the house wondering where the [redacted] you left your [redacted] reading glasses.***

Watch this space

ENERGY — Flows from Israel’s Leviathan and Tamar gas fields to Egypt have returned to pre-war levels, with around 1.1 bcf/d passing through the East Mediterranean Gas pipeline, a government official tells EnterpriseAM. The restart of sizable exports to Egypt and Jordan comes just two days after Israel resumed production in the Leviathan gas field.

Why this matters: With global energy prices rising and LNG shipments in short supply — as Qatari flows remain blocked by the Hormuz Strait closure — imports from Israel at comparatively lower prices give the government a little bit of breathing room, we were told.

However, the additional pipeline supplies aren’t enough to eliminate the need for additional LNG cargoes. The Madbouly government is on track to order 20 LNG cargoes for April to bridge the gap between supply and demand and front-run expected higher prices ahead of increased summer demand, when seasonal demand is expected to come in about 7% higher than last year. Supply from Qatar, meanwhile, remains offline.

Despite the squeeze, industrial users and power plants have still been getting their full quotas, the official tells us. Coordination between the oil and electricity ministries, the presence of sufficient floating regasification units, and a strong existing relationship with foreign suppliers have helped the country support spot cargoes quickly, they add.

ENERGY — EXIM has made it easier for us to import US LNG: The Export-Import Bank of the US (EXIM) approved over USD 2 bn in export credit ins. to support US LNG shipments to Egypt through 2027, according to a statement out last week. The agreement backs contracts between the Egyptian General Petroleum Corporation and Hartree Partners.

The government has been angling to secure USD 11 bn in LNG across 130 shipments starting this June, two government sources told EnterpriseAM earlier this year. A government source in the oil sector had previously confirmed that Hartree Partners is among the players with whom the state plans to renew supply agreements.

FX RESERVES- Egypt’s net foreign reserves stood at USD 52.8 bn at the end of March, up USD 85 mn from the month before and marking an increase of USD 5.1 bn over a 12-month period, according to the data (pdf) from the Central Bank of Egypt. The month-on-month uptick came despite bns of USD worth of outflows of hot money last month during the global risk-off. EFG Hermes has estimated that there are another USD 18-20 bn worth of carry-trade holdings still parked here.

A USD 2.4 bn increase in FX holdings supported the increase, bringing total holdings to USD 33.1 bn. This helped balance out a USD 2.3 bn fall in gold holdings to USD 19.2 bn and USD 8 mn drop in SDRs to USD 548 mn.

EDUCATION — The Education Ministry partnered with the Financial Regulatory Authority to integrate financial literacy into the national school curriculum, according to a statement from the ministry. The proposed additions to the curriculum would cover stock trading and the importance of saving and investing.

What’s next? The ministry and the authority say they will reveal the specific rollout timeline and technical details in the near future.

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PSA-

WEATHER- It’s another warm and sunny day in Cairo today, with a high of 26°C and a low of 16°C, according to our favorite weather app.

It’s a fair bit cooler in Alexandria, with partly cloudy skies, a high of 21°C, and a low of 12°C.

The big story abroad

It’s a pretty quiet morning in the global front pages, with the latest threats from Trump getting top billing.

US President Donald Trump has once again threatened to destroy Iran’s power infrastructure. Should Tehran keep the Strait of Hormuz shut, Trump has vowed to target civilian infrastructure — power plants and bridges — in a TruthSocial post leading to some critics pointing out that this would constitute a war crime.

Oil jumped following the President’s ultimatum. Brent futures rose 1.6% to USD 110.74 a barrel earlier today, while US West Texas Intermediate futures gained 0.6% to trade at USD 112.25.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We take a look at how the Education Ministry is asserting itself as the sole body in the country responsible for accrediting international school certificates and doing away with USD-denominated fees.

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