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Causeway Capital, an activist investor, raises its stake in Wizz Air
Causeway Capital Management increased its stake in Wizz Air from 4.98% to 5.04%. A regulatory filing was filed on Friday. This puts the activist investor among the top investors of the European budget airline. According to the filing, the investor had increased its stake in Wizz Air from 2.04% to a total of 5.16% on Wednesday. The 'carrier' warned Wednesday that the Middle East conflict would likely reduce its net profit by 50 million euros for fiscal year 2026. This is on top of pressures due to engine groundings, and a softening in demand. Since the conflict began, its shares have fallen steadily. They hit a new record low on Friday of 915 pence. Causeway, a Los Angeles-based company, did not respond immediately to a comment request. Causeway, Britain's largest shareholder, backed WH 'Smith's decision earlier this year to appoint Leo Quinn, former Balfour Beatty CEO, as executive 'chair' in a leadership revamp. In 2021 the investor had urged Rolls-Royce, as one of its largest shareholders, to restructure the board. Wizz Air announced a separate?on? Friday that it had received permits for flights to the U.S.A. from the UK. This?opened the door to offering charter 'flights? to European football teams and fans attending soccer World Cup. Reporting by Nithyashree R B in Bengaluru and Raechel Thankam Job; editing by Shilpi Magumdar
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Russian Urals oil prices top Brent for the first time on Indian market, traders claim
The price of Russian Urals oil in Indian ports is higher than the Brent benchmark for the first ever time, fueled by the increased demand due to the Iran War, traders reported on Friday. The U.S. and Israeli war against Iran?which started a week back has?choked Strait of Hormuz - the'main route for oil in the world. Since the beginning of the conflict in Ukraine, in 2022, Russian oil has traded in Indian ports at a discount by several U.S. Dollars per barrel compared to Brent. This is because Russia diverted its oil sales to Asia following the EU's embargo against Russian sales. In recent years, Indian refiners used Russian oil to make their feedstock. The Kremlin announced on Friday that the war in Iran had fueled a significant increase in demand for Russian gas and oil. Reports on Thursday said that traders are selling Russian Urals at a premium to Brent of $4 to $5 per barrel upon delivery at Indian ports between March and April. This is after the United States granted Indian refiners waivers to resume buying Russian oil. Calculations showed that the grade's discount on Brent at the Russian Baltic Sea Port of Primorsk has narrowed by?about $5 per barrel, to?around $ 20 per barrel on a FOB basis (free on board), on Friday. The price of Russian Urals oil has risen by 50% in the last week, from $45.7 to $68.6 per barrel FOB Primorsk. According to LSEG, Urals oil has now surpassed the G7 price limit of $60 per barrel in the port of loading. It is also above the new EU price cap at $44.10 per barrel. The G7 and EU price cap were both imposed after Russia's invasion in Ukraine. This means that sellers of Russian oil who are above these caps cannot use Western shipping services and insurance. INCREASING COSTS CAN IMPACT PROFIT Two traders say that the rising costs of freight will reduce profits for Russian oil sellers. It costs $15 million to charter an Aframax vessel with a deadweight around 100,000 metric tonnage to transport oil from Russian Baltic ports to India. This is an increase of around $10-$12 millions in February. The cost of cargoes loaded from the Russian Black Sea port Novorossiysk - which resumed loadings on Friday following recent drone damage - is lower than at Baltic ports, at $13million, traders reported. Calculations show that the discount for Russian Urals loaded from Novorossiysk FOB for India has risen to $14 per barrel against dated Brent. This is up $10 per barrel from previous estimates. Reporting by Elaine Hardcastle; Editing by Susan Fenton and Elaine Hardcastle
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MOL Hungary says that capacity tests will begin on the Adria pipeline next week
Hungary's Oil and Gas Company?MOL announced on Friday that capacity testing on the Adria oil pipeline will begin on March 11, and last for 10 months. The company is attempting to find alternative routes as Russian crude oil supplies are set to cease at the end 2027. MOL, the operator of refineries in Hungary, Slovakia and Romania, has expressed concerns about whether or not the Adria Pipeline can meet their needs. JANAF, a Croatian operator, dismissed these concerns. Hungary and Slovakia want to continue receiving supplies from Russia, and are exempted?from the current European Union sanctions. Adria is a viable alternative to the EU's plan to ban all Russian oil imports in response to Moscow's invasion into Ukraine. MOL stated on Friday that it was in everyone's best interest to let the facts speak for themselves after contradictory testing and a wide range of public statements. The report said that although Croatia's annual capacity was estimated between 11-15 million metric tons, only 2.2 millions tons of crude were ever transported through this pipeline section. A series of tests with a team of international and independent monitors will be conducted in various weather conditions, using different types and grades crude. MOL stated that they would "see what it takes to make the?Adria Pipeline a fully-fledged route". DRUZHBA ERROR RAISES ADRIA RELIABILITY MOL is already relying more on 'Adria, with the Druzhba Pipeline - which transports Russian crude oil and runs through Ukraine - being out of operation since the end January following what Ukraine claimed was a Russian Attack. Hungarians and Slovaks have accused Kyiv for delaying the restoration. Ukraine has stated that repairs will take some time. MOL asked JANAF during the outage to deliver Russian crude oil via 'the Adria route. But Croatia is assessing if it can do this 'legally because of sanctions. MOL has said that, under EU sanctions exemptions for Hungary and Slovakia, they can source Russian crude by maritime routes in the event of an inoperative Druzhba Pipeline. (Reporting from Anita Komuves & Jason Hovet. Mark Potter edited the article.
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As flights to the Middle East cease, governments plan repatriation
Commercial flights have been grounded in some parts of the Middle East due to an escalating conflict after U.S. and Israeli attacks on Iran. This has left foreigners stranded and prompted governments to plan for repatriation. In alphabetical order, here is what government officials and representatives have said about the repatriation plan: AUSTRIA Austria's Foreign Ministry said that it has helped 117 citizens leave the UAE via Israel and neighbouring countries. It is planning to launch a charter flight for 170 passengers from Muscat, on 4 March. BULGARIA GullivAir and Bulgaria Air, as well as 'the State Aviation Operator', returned Bulgarians from Dubai, Abu Dhabi, and Oman on March 4 and 5. This included a GullivAir flight with 326 seats from Dubai, an Bulgaria Air Boeing 747 rotation via Oman, and 90-seat aircraft for the government from Abu Dhabi. CZECH REPUBLIC According to the CTK news agency, government officials and Czech government officials, three flights have been organised so far from Oman, Jordan, and Egypt in order to evacuate 175 people who were stranded. ESTONIA On March 4, the Estonian foreign ministry announced that it had organized a flight from Muscat to Oman on March 5. This would be open to Estonian citizens living in Oman or the United Arab Emirates. EUROPEAN UNION The European Commission announced that it is now coordinating the repatriation of citizens under the EU Civil Protection Mechanism, as more and more member countries request assistance to evacuate their citizens from the Middle East. Austria, Belgium Bulgaria, Cyprus Czech Republic, France Italy Luxembourg, Romania, Slovakia, and Slovakia are the countries that have activated this mechanism. A spokesperson for the EU said that ten flights with over 1,000 EU citizens had already landed in Europe. FINLAND The Finnish foreign ministry announced that Finland would?organise' a single flight of about 160 seats to bring home the approximately 3,000 Finns currently living in the United Arab Emirates. The flight will leave Muscat, Oman on March 7th and 8th. FRANCE According to the French Foreign Minister, several flights of repatriation for French nationals in the region (around 400,000) are planned for March 4. France has deployed consular teams to Israel's border with Egypt and Jordan in order to facilitate the land exit so that people can continue their journey by air. A similar mechanism has been implemented in the UAE, at the borders with Oman, Saudi Arabia and Oman, where airspace remains open. GERMANY After the first flight landed in Frankfurt on March 5, German Foreign Minister Johoann Wadephul announced that two more flights, each carrying about 250 passengers, are scheduled to depart from the Gulf on March 5 and 6. He said that commercial air traffic was increasing and Germany is looking at how it can provide further assistance. GREECE Greece announced on 6 March that it had repatriated 315 nationals who were in Abu Dhabi, Dubai and Jerusalem on 5 March. 162 people had already returned to the Middle East this week. HUNGARY In a press release, the?foreign minister of Hungary said that 87 people had been repatriated from Amman in Jordan on March 4, and another flight with 88 passengers was scheduled for March 5. On?March 6, a flight will depart from Sharm es Sheik in Egypt. Hungary signed a deal with Flydubai to rent a plane on March 5 and 6 for Hungarians returning from Dubai. On March 7 and 8, Hungary will be departing from Riyadh in Saudi Arabia with two flights. The Italian Foreign Ministry said that about 2,500 Italians had returned from Abu Dhabi and Riyadh on commercial flights organized by the ministry. The consulate has increased its staffing levels in Oman and in the UAE, and it is also coordinating the return of large groups from the UAE, and other transiting via land through Qatar Kuwait Bahrain and Saudi Arabia. Additional Italians living in Oman, Israel and Thailand, as well as the Maldives, are receiving assistance or being given priority for transport. Netherlands The Dutch Ministry of Foreign Affairs announced that repatriation from the Middle East would resume on 6 March. Flights include a KLM flight to the Omani capital Muscat and a TUI service from Sharm el-Sheikh in Egypt. POLAND Operational Command of the Polish Armed Forces reported that the first group of Polish nationals?evacuated by military airlifts from the Middle East landed in Poland early on the morning of March 6, 2019. PORTUGAL The foreign ministry of Portugal said that a charter TAP flight carrying 140 Portuguese and eight foreigners would land at Lisbon at 11 am local time on March 6th. ROMANIA The Romanian Foreign Ministry announced on 4 March that FlyDubai had scheduled two flights from Dubai to Bucharest for March 4 and 5. The ministry has received over 3,000 requests for repatriation and there are around 16,000 Romanians in the region. SERBIA Air Serbia's flight from Sharm el-Sheikh landed at Belgrade in the early hours of March 4 with 67 passengers. All were?evacuees from Israel. SLOVAKIA The Slovak Foreign Ministry reported that two evacuation flights from Jordan, organised by Slovakia, landed on 3 March, carrying 127 people in total, mainly Slovaks. There are more flights planned. SLOVENIA The prime minister's statement said that Slovenia organized four buses, escorted with police, on March 3 to transport Slovenian citizens, families and children from Dubai airport to Muscat Airport in Oman. Two more flights are scheduled for the afternoon and evening of March 4. Jose Manuel Albares, the Foreign Minister of Spain, announced on March 3 that Spain had begun to evacuate its citizens from the Middle East. On March 3, evening, more than 175 Spanish citizens arrived via Abu Dhabi. Further flights are expected to arrive from the UAE via Istanbul. Albares said that Spain would also reinforce its embassies located in the UAE and Saudi Arabia to support and facilitate future repatriations. SWEDEN Sweden will charter an aircraft to return 180 Swedes who are?identified vulnerable. The flight is scheduled to leave Dubai on March 7. THAILAND Thailand will evacuate its citizens from Iran to Turkey by land on March 7th and 10th. Others stranded are returning to Iraq, Qatar and Bahrain. UNITED ARAB EMIRATES State news agency WAM reports that the UAE Civil Aviation Authority will start operating "special flight" across all airports in the country to assist some of the tens and thousands of passengers stuck in the region. UNITED KINGDOM The British Foreign Office announced that British chartered flight will leave Oman on 5 March after technical delays on 4 March, prioritising vulnerable UK citizens who want to depart the region.
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CNBC reports that United Airlines is suffering from the fuel price spike caused by the conflict in Iran.
CNBC reported that United Airlines CEO Scott Kirby expects to see a "meaningful impact" on the carrier's results in its first quarter due to the soaring fuel prices following a deterioration of the?war? in Iran. However, travel demand is still strong, CNBC said. The report stated that if the conflict continues, the airline may also see an impact on the second quarter. Kirby said this at a Thursday event held by a university. The price of jet fuel has risen 15% over the last week. This is adding pressure to an airline industry that's already been hit hard by the conflict. According to TD Cowen's estimates, United's adjusted profit per share for the first quarter could range from 5?cents up to 22 cents. These calculations take into account?current jet-fuel prices. The estimate is a far cry from the airline's forecast in January of $1 to $1.50 a share. In premarket trading, shares of the airline dropped 3.6% on Friday. As of Thursday's closing, they are down around 10% since the conflict began. United Airlines did not respond immediately to our request for comment. (Reporting and editing by Sriraj Kalluvila; Apratim Sarkar)
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As the Iran conflict intensifies, maritime insurance premiums are on the rise
As the Gulf conflict intensifies, premiums on maritime insurance for war coverage have risen -- some by as much as 1000%. This has led to a dramatic increase in the cost of transporting energy along a crucial maritime corridor. The conflict sparked Saturday by Israeli and U.S. airstrikes against Tehran has 'paralyzed' traffic through the Strait of Hormuz - a major shipping chokepoint. Iran said on Monday that it would shoot at any ship trying?to pass' and nine vessels have been damaged in the area ever since the conflict started. Ship owners can claim for any damage their vessel or cargo may suffer due to conflict or terrorism. Most policies are annual. However, some may cover one-off trips through dangerous waters, such as war zones. Analysts are concerned that the continuing conflict, which is not showing signs of ending, could fuel inflation. The hull war market has responded more quickly due to the possibility of large losses, if multiple vessels were hit in one area. Stephen Rudman is the head of marine for Asia at global insurance broker Aon. He added that, if the situation escalates, a further rate adjustment would be likely. He said that the premiums charged to vessels transiting high-risk waters were rising rapidly and could continue to do so in the near future. He said that the premiums for war risks on cargo are also rising, and quotes are being reviewed voyage by voyage, especially in energy and bulk commodity trading. Jefferies analysts estimated that the potential losses to industry from seven damaged vessels at the time their note was published, on March 5, could be up to $1.75 Billion. The brokerage said that most tankers are valued between $200 and $300 million. This new rate of 3% would mean a premium for hull war risks of $7.5 million. Before the conflict, this was around 0.25% or $625,000. Angus Blayney is the marine divisional director of Gallagher, a large insurance broker. He said that rates are increasing and changing daily, depending on vessel type and circumstances. However, he didn't provide any specific figures. He also said that coverage is still available. Dylan Mortimer is the marine hull UK War Leader at Marsh. He estimated that ratings were roughly between 1% to 1.5% of vessel values, with slight variations both upwards and downwards depending on risk factors. Mortimer stated that the rate spectrum depends on a wide range of factors, such as whether a vessel is located east or west of Hormuz's chokepoint. AREA OF CONCENTRATED RISK Data from analytics company Vortexa revealed that, on average, more than 20 million barrels per day of crude oil, condensate, and fuels were transported through the Strait in 2017. A fifth of all oil consumed in the world passes through the Strait. Sheila Cameron, CEO of the Lloyd's Market Association, said that there are still?approximately 1,00 vessels in the Persian/Arabian Gulf, approximately half of them oil and gas tanks, with a combined hull value in excess $25 billion. Cameron said that "currently, insurance remains in place" for the vast majority. On Wednesday, it was reported that at least 200 ships were still anchored in the open seas off of the coasts of major Gulf producers. Morningstar DBRS stated in a report earlier this'month that reinsurers could respond by increasing the loss level where their liability kicks-in, or reducing capacities, "leaving underwriters to retain more risk and possibly pressure solvency levels." The report added that "supply chains will be stressed if goods are rerouted through the Cape of Good Hope, or via overland routes. This will increase transit times and costs." ADMINISTRATION SEEKS SOLUTIONS The Trump administration is looking for ways to lower oil prices through reactivating shipping routes. On Tuesday, Donald Trump stated that the U.S. Navy could begin escorting tankers through Strait of Hormuz. He also said he had directed the U.S. International Development Finance Corporation (IDFC) to provide financial guarantees and political risk insurance for maritime trade within the Gulf. The?company's statement on Wednesday said that U.S. officials met with Marsh also to discuss the issue. Lloyd's also stated that the company was working with Development Finance Corporation, as well as other stakeholders, to find a solution. Analysts said that it is unclear as to how the administration plans to intervene, and if any scheme will apply to all ships and cargo. They expect that, in the absence of a viable alternative, many shipowners will reinstate their old cover at a much higher rate and absorb any costs. It's like insurance a burning building, Dr Michel Leonard, Chief economist and data scientist of Insurance Information Institute said.
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Sources say that despite the war, crude and gas tankers are still sailing from Iranian ports with their cargoes.
According to traders and ship trackers, at least five crude oil-laden tankers have left Iranian ports since the U.S. airstrikes began on February 28. Liquid petroleum gas supplies were also on their way on Friday. Since the start of the conflict, the Strait of Hormuz has been closed to international shipping. At least nine vessels have been damaged. The Iranian supplies were moving, but at a slower rate. According to the United Against Nuclear Iran (UANI), which monitors Iran-related tanker activity through satellite and ship tracking, at least five crude oil tankers left Iran's Kharg Island major oil terminal between February 28th and March 2nd. These numbers were backed up by other data. According to a separate analysis by TankerTrackers.com?a maritime intelligence firm that specialises on tracking the shadow fleet?at least four crude oil tankers have left Iran since 28 February. According to sources in the maritime industry and analyses from?Lloyd's List Intelligence, and MarineTraffic, two liquefied gas tankers, Fortune Gas, and Danuta, left?Iran after loading their cargos on Friday. Ship tracking data revealed that Iranian dry bulk'vessels' were trying to transport their cargoes to export markets for the first time since the U.S. &?Israel attacked Iran last weekend. (Reporting and editing by Tomaszjanowski, Trixie Yap, Marianna Pararaga)
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As the conflict in the Gulf with Iran intensifies, private jets are emerging as an alternative means of escape.
Samuel Lait, who launched his pet-travel private flight firm in Dubai on Saturday, expected to receive inquiries from pet owners wanting to travel between the glitzy Gulf hub of Dubai and the United Kingdom. PetX Jets is flooded with requests from passengers of all ages - from pregnant couples to young adults - who want to leave the United Arab Emirates. Conflict has engulfed the region, forcing many countries to shut down their airspace, leaving tens or thousands stranded. U.S. and Israeli campaign against Iran entered the seventh day of its seven-day run on Friday. It threatens to escalate outside the Middle East and has led to a spike in private jet rental prices. The original plan was to move pets and their owners primarily between the UK, and Dubai. Lait stated that the situation has changed dramatically since Saturday. In recent years, private pet travel has become increasingly popular in Dubai. This is due to a influx of high-net-worth individuals into the Gulf business hub. These firms offer solutions for the problems posed by commercial flight, including pet size and breed limitations, as well as stress caused by cargo transport. The global pet travel market is expected to reach $4.6 billion in 2032. Asia-Pacific will see the most growth. Recent reports suggest that more than 40% middle-aged travellers and nearly 25% of seniors now take their pets on vacations. Lait explained that although the company originally planned to launch its first charter service by June, it may now be able to do so sooner. The UAE's airports, which are among the busiest in the world, have been gradually resuming flight operations, but they still operate at only a fraction of their capacity. This has led many residents and tourists to look for alternative methods to leave the area, such as crossing into Oman or Saudi Arabia, and flying there. "Since tensions have escalated in the Middle East, we've seen an increase in bookings... we get requests every 10 minutes, and every 20 minutes. "I mean, this request is extremely important right now," said Altay Kula. He's the CEO and founder at France-based Jet-VIP which operates in Middle East. Kula stated that the current airspace closures are making it difficult for people to leave the Middle East and, in particular, Dubai and Qatar. Many people, therefore, are looking for flights to Riyadh or Muscat to "leave the Middle East". While the opportunity exists, there are still challenges for both potential customers and operators. Lait and Kula both said that prices of charter flights to Dubai have risen dramatically since the start of the conflict, making it difficult for some clients?to afford the trip. Jet-VIP flights between Dubai and Istanbul cost an average of $50,000 for a jet that can carry six people, and $110,000 for larger aircraft capable of carrying up to 15 passengers. These fares are now $100,000 and $200,000. "We were initially offered a lot of flights out of Oman. Lait complained about the high cost of aircraft use. "The prices were still astronomical," he said. Lait said that he was "trying to reason" with brokers and aircraft providers in order to get his company to begin operations. Kula cited the lack of slots in Oman’s Muscat as well as in Riyadh, as a challenge. He said that it could take up to 24 hours to get the authorization to fly to Oman and pick up passengers. The company is trying to operate out of Dubai but the airspace restrictions there make it difficult to find slots. Lait's PetX Jets are currently in a wait-and-see phase. Lait stated that "our aim is to try and hold on until the Dubai airspace opening and those aircraft become in line with the price we've seen leading up to the Saturday." Reporting by Abir al Ahmar and Federico Maccioni, Editing by Hugh Lawson
Maersk suspends 2 shipping services in Middle East due to crisis
Maersk, a container shipping group that is one of the largest in the world, announced on Friday the temporary suspension of 'two services' linking the Middle East to Asia and Europe, as the Iran crisis continues to disrupt supply chains worldwide.
In a press release, the Danish group announced that it would "halt" its FM1 service, which connects the Far East with the Middle East as well as its ME11 service connecting 'the Middle East with Europe.
Maersk informed customers that the decision was taken to ensure'safety for our personnel and vessels, while minimising operational disruptions across our network.
The tensions in the Middle East are rising sharply after the United States and Israel launched the most ambitious attack on Iran in decades, on Saturday.
According to Xeneta, 147 'container ships' are sheltering in the Gulf. This has caused port congestion, and increased freight rates that are affecting global supply chains from Asia -to Europe. Essi Lehto reports, Stine Jacobsen edits and Terje Solsvik writes.
(source: Reuters)