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Sources say that Chinese buyers are seeking alternatives to Middle East oil as they increase their purchases of Russian ESPO crude.
Four traders reported that the premiums for Russia’s Far East ESPO blend crude for delivery in November to China have risen to record levels as Chinese refiners increase their purchases amid shrinking Middle East and Iranian supplies. ESPO cargoes due to be delivered at the end October and November trade at a premium of over $7 a barr to ICE Brent. According to traders, offers have been heard up to a record-breaking plus $10 a barron on a shipped basis to China. Trading firms said that Sinopec, the state-owned Chinese refiner, was at the forefront of this buying spree, which reflects a strong demand for alternative crude oil supplies, as traders continue to express concerns about disruptions in shipments across Strait of Hormuz. As tensions in the Middle East threaten regional oil supplies, Chinese refiners are increasingly turning to Russian grades. Early trade on Wednesday saw oil prices rise by nearly 1%, after the United States & Iran exchanged strikes overnight. This fueled fears of more supply disruptions & reduced expectations of a near-term ease in tensions. Traders said that the strong Chinese demand for ESPO had already led to most of November's cargoes selling well ahead schedule. IRANIAN CRUDE IS NOW AVAILABLE AT A LOWER PRICE The traders reported that November ESPO cargoes started trading this week. Premiums for deliveries to China's independent re-finers (known as teapots) have risen to $10 per barrel delivered. The rally is a dramatic turnaround from the early?summer when ESPO blend cargoes were trading at discounts to ICE Brent. As demand has increased, October cargoes are now back in premium territory. The latest increase in crude oil prices was attributed to a decrease in the availability of Iranian crude. This has traditionally been the main source for teapot refiners from China. After the U.S. resumed its naval blockade mid-July it forced buyers to look for replacement barrels. ESPO blend, a product highly prized by Chinese refiners due to its proximity?and short shipping time, is now one of the biggest beneficiaries?of this shift in crude purchasing patterns. Participants in the market said that premiums will likely remain high as long as there is uncertainty about Middle Eastern supplies and Iranian imports.
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Iran's website shows that more ships are blacklisted for trying to pass through the Hormuz Strait.
According to a government website, Iran has added new ships that it considers non-compliant and subject to fines or confiscation if they try to sail through Strait of Hormuz. Tehran announced on August 24 that it had blacklisted 45 tankers for violating its rules to navigate the Strait of Hormuz and that any vessel transferring cargo would be subjected to action. This comes six months after the U.S.-Israeli war began. Updated on the website of the Persian Gulf Strait Authority, a body created by Iran to'manage the strait', eleven more ships have been added. The total number of blacklisted vessels is now '56. Sources in the shipping industry said that the update took place within the last 24 hours. Iranian officials have not responded to a comment request. This list is restricted to very large crude carriers, liquefied petroleum gas, liquefied natural?gas, and other clean product vessels. The PGSA website states that "any vessel cooperating (via STS oil transfer, transshipment), will be added to this list." To request removal from the area, vessels must submit an official application with reasons." ADNOC Logistics and Shipping of the United Arab Emirates, ADNOC subsidiary Navig8 tankers and Saudi Arabian national shipping carrier Bahri are among the owners of some of the previously named ships. Sources with direct knowledge told late August that after the announcement of the 'blacklisted' tankers, three Indian oil refiners, and one global energy'major, planned to stop using the vessels because of security concerns. The restrictions are likely to further restrict efforts to export oil through the strait. Traffic in this area, which handled 20% of all global oil and LNG shipments before World War II but has since been reduced to a trickle, is expected to continue to decline. The U.S. imposed sanctions?? on the PGSA? in May. This complicates any engagement with this body, which could result in the U.S. Treasury freezing assets if any fees or transactions are paid.
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Trump will meet with the CEOs of the travel industry to discuss tourism.
U.S. President Donald Trump will be meeting with executives from major travel companies on Wednesday, including American Airlines, Marriott, MGM Resorts, and Carnival, amid a drop in international visitors. The FIFA World Cup in this summer gave U.S. Tourism a "big boost". The U.S. tourism industry got a?a?big boost from the FIFA World Cup this summer. International arrivals in the U.S. dropped?5.5% in 2025. Travel officials cited a number factors, including long visa interview waiting times, higher airfare prices, stricter immigration policy, tariffs and U.S. restrictions on travel for certain countries. Commerce Department reported that overseas visitors have fallen another?4.7% from July 2026. The tensions in the United States and Canada have affected the number of visitors from Canada. Las Vegas, and border states are popular tourist destinations. The number of Las Vegas tourists is expected to drop by 7.5% in 2025. Trump will meet with members of U.S. Travel Association. Transportation Secretary Sean Duffy will also attend. Caesars Entertainment, Hard Rock International and IHG Hotels & Resorts are also participating, as well as Venetian, Raffles & Fairmont, Venetian, Raffles & Fairmont, Venetian, Raffles & Fairmont, Venetian, Raffels & Fairmont, Raffles & Fairmont, Venetian, Raffles & Fairmont, Raffles & Fairmont, Venetian, Raffles & Fairmont, Raffles Taylor Rogers, a White House spokesperson, said Trump will meet with travel companies to "celebrate the achievements that produced an historic summer travel season" and gave a boost to local economies and small business. The White House stated that it had made airport screenings easier by allowing passengers to leave their shoes on and adding "family screening lanes" at certain airports. The White House also wants to create biometric fast lanes to help returning U.S. Citizens and to make international flights more accessible. Over the past year, airport security lines and flight delays were slowed down by partial government shutdowns. U.S. Homeland Security Secretary Markwayne Mullin threatened in May to stop border processing at Newark, and possibly other airports in "sanctuary" cities. Travel groups warned it could cause chaos, leave thousands of tourists and Americans stranded, and stop vital cargo shipments.
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Southwest launches first airport lounges in order to expand premium appeal
Southwest Airlines announced plans on Wednesday to open the first airport lounges in its history. The carrier is stepping up efforts to attract higher-spending premium passengers and diversify revenue sources. The airline has announced that it will partner with JPMorgan Chase in order to launch the first airport lounges. It is working hard to shed its low-cost reputation and boost revenue by introducing assigned seating, extra legroom seats, and other product improvements. Airport lounges are a popular attraction for travelers. They offer a place to relax or work in peace, as well as complimentary drinks and food. They help airlines retain customers, drive premium fares, and increase spending on co-branded credit card. Southwest?will launch a co-branded Chase credit card by 2027, giving customers access to the?airport lounges. It plans to initially open four lounges, in Austin, Baltimore?, Honolulu?, and Nashville. The lounges are expected to open in late 2027. Fuel prices have risen sharply due to the U.S./Israeli war on Iran. This has squeezed already thin airline margins. Carriers that offer a strong suite of premium services are better placed to withstand the pressure, as they can attract travelers who will pay more for high-margin features such as lounge access and premium seating. Southwest Airlines has restructured its business in order to "better compete" with the network carriers, following pressures from Elliott Investment Management as well as lower profit margins due to the pandemic and activist investor Elliott Investment Management. In May, Southwest CEO Bob Jordan said that Southwest would be able to offer more cabin options including "true First Class" and will likely in the future expand into international long-haul flying. He said, however, that these were "still ideas". Jordan acknowledged previously that the carrier lost customers to competitors because it did not offer premium amenities such as airport lounges or serve destinations like London.
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Uber leaves Nigeria after 12 years in operation
Uber Technologies, a ride-hailing service, will stop?operations on 'September 2' in Nigeria. This marks the end of its 12-year presence in Africa's largest country. Uber announced that it would be closing its Nigerian operations after reviewing the business. It did not provide any further details on the decision. The competition in Nigeria's ride hailing?market has increased in recent years. Operators are facing challenges such as rising fuel prices, currency volatility, and inflation. These have led to higher operating costs and pressure on drivers and platforms. In a message to users, the company stated that "after a thorough review of our business we have taken the difficult decision to wind up our operations in Nigeria with effect from 2 September 2026." In 2014, the San Francisco-based firm launched in Lagos before expanding into other cities to meet the growing demand for app based transportation. Uber announced that its help centre will remain open until September 23 for users to resolve outstanding account issues. Uber didn't say how many drivers or riders would be affected or if any assets would sold.
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Ukraine asks aviation watchdog back ban on flights into Russian airspace
?Ukraine has urged ICAO to ask its member countries to ban all operations in russian airspace. This comes a day after the President Volodymyr?Zelenskiy?warned he it was "becoming totally unsafe". Top Ukrainian officials announced on Tuesday that the country will intensify its retaliation for Russia's increased strikes against Kyiv. The city has been on continuous alert since seven days, and it has also suffered attacks on civilian infrastructure. Ukraine will only target Russian military installations and not threaten civil aircraft,?Zelenskiy said, but he stressed that "the growing number of Ukrainian drones" in Russian skies should be taken into consideration. Mykola Kalashnyk, Ukraine's Infrastructure Minister, wrote to ICAO Chairman Juan Carlos Salazar in a letter that was exclusively shared with him. He said Kyiv believes the risk of tragedies should be minimized. Ukraine asked ICAO for encouragement to aviation authorities and airlines in order to protect civil aviation. "Including by facilitating full prohibition of civil aircraft operations by ICAO members states within the Russian Federation's airspace". Vladimir Putin, the Russian President, said that Zelenskiy’s remarks amounted "state terrorism". Moscow pledged on Wednesday to prevent any disruptions to civil aviation. In 2024, a?Azerbaijan Airlines?plane?headed to Russia's Grozny crashed-landed in Kazakhstan when it diverted from its course. Putin said that two 'Russian missiles' were detonated after Ukrainian drones invaded the airspace. When Russia began its full-scale invasion in February 2022 and launched missile barrages without warning civilian aircraft, Ukraine shut down its airspace. Since then, Ukraine has been without an airport. SkyUp, the only airline that is still operating, operates out of Moldova.
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Sources: Ethiopian Airlines is close to ordering Boeing cargo planes
Ethiopian Airlines has reached a 'deal to purchase up to 10 Boeing long-haul freighters, as it moves forward with plans to build a new African hub to compete with Gulf carriers. Sources said that the deal will likely include two Boeing 777F aircraft of the current generation, which would help the U.S. planemaker to bridge the gap until the new 777-8F model is ready. This is expected to be the remainder of the order. A source stated that the order will include eight to 10 aircraft, if there are no last-minute changes. Boeing refused to comment on speculation. Ethiopian Airlines had ?no immediate comment. Boeing will cease production of the widely-used 777F by the end of 2027 under international emission rules. This will close a profitable chapter after sales of over 400 units. Boeing has been under pressure to continue making the current 777F to avoid its supply chain going cold due to delays in developing the successor of the 777 jets, the 777X. This includes the new 777-8F freight model. Boeing requested a waiver from the Federal Aviation Administration in December to allow it to deliver 35 more 777F cargo aircraft, citing a strong demand for the planes and a delayed certification of 777X. The FAA stated on Tuesday that the waiver request was still pending, and that no decision had been made. Boeing's request will allow them to meet some demand up until the new 777-8F enters service. Boeing was confident that the exemption would be approved. According to a FAA filing, Boeing builds two 777F Freighters per month.
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Europe could accelerate satellite launches to meet demand
The European Space Agency is looking at increasing the launch schedules for Ariane 6 & Vega C rockets over the next few years to overcome a possible bottleneck in satellite launches. Aschbacher, the Director General of the DG, told reporters that an immediate decision was needed if projections were correct and a surge in demand would peak by 2030. Arianespace's latest?projection? calls for nine or ten launches of Ariane-6 rockets per year starting in 2027. Aschbacher, a member of the AJPAE aerospace association, said that based on Europe's scientific missions and other missions as well as... possible further interest from Amazon or other commercial activity there is... more?demand? than planned capacity. Amazon has already ordered 18 launches. "Ofcourse, the question is: Can we satisfy all of these launches?" Aschbacher stated that this is exactly what we are doing at the moment. "We are investigating the costs and benefits... You can imagine that this is not trivial," said he. "We have already made some progress in these estimates. But it is also?clear... that if you want to meet?launch requirements by 2030, we will need to take a quick decision to?build the capacity needed." Arianespace, the subsidiary of Airbus and Safran rocket venture ArianeGroup declined to comment before a scheduled regular press briefing on September 7.
China maps the ocean floor to prepare for a submarine war with the U.S.
China has been conducting an extensive undersea mapping operation and monitoring across the Pacific Ocean, Indian Ocean and Arctic Oceans. This vast operation is aimed at gaining detailed knowledge about marine conditions, which naval experts believe will be vital for the conduct of submarine warfare against America and its allies.
Ship-tracking data shows that, for example, in 2024 and 2025, the Dong Fang Hong 3?a research ship operated by Ocean University of China sailed back and forth between the seas around Taiwan, Guam and strategic stretches of Indian Ocean. Ocean University reports that in October 2024 it tested a series of powerful Chinese ocean sensors able to identify undersea items near Japan. It returned to the same area last May. In March 2025 it covered the approaches to the Malacca Strait - a crucial chokepoint for maritime trade - by crisscrossing the waters between Sri Lanka, Indonesia and the Malacca Strait.
According to the university the ship carried out climate research and mud surveys. A scientific paper written by Ocean University academics reveals that the ship has also carried out extensive deep-sea maps. According to U.S. Navy officials and naval-warfare specialists, the Dong Fang Hong 3's deep-sea mapping and sensor placement gives China an idea of what conditions are under the sea so it can better deploy its subs and track down its enemies.
The Dong Fang Hong 3 doesn't operate alone. The Dong Fang Hong 3 is part of an ocean mapping and monitoring effort involving hundreds of sensors and dozens of research ships. This effort was traced by examining Chinese government records and university publications, as well as journal articles and scientific papers, and analyzing more than five years' worth of movement data from 42 research vessels operating in the Pacific Ocean, Indian Ocean, or Arctic Ocean using a ship tracking platform developed by New Zealand-based Starboard Maritime Intelligence.
Nine naval warfare experts who reviewed the findings said that while the research is primarily civilian - for example, some areas are being surveyed to determine fishing grounds and mineral deposits - there are also military purposes.
In order to gather information on the underwater terrain, researchers map the seafloor by traveling in tight lines. This type of movement is shown in the tracking data of vessels that have been tracked over large areas of the Pacific Ocean, Indian Ocean and Arctic Ocean.
According to an analysis of Chinese state-run media, descriptions of vessels published by Chinese universities and press releases from government organizations, at least eight of those tracked vessels have performed seabed mapping. Another 10 of them have carried mapping equipment.
Peter Scott, former chief of Australia’s submarine force, stated that the survey data from the vessels "would potentially be invaluable in preparing for the battlespace" of Chinese submarines. "Any submariner who is worth his salt will spend a lot of time and effort to understand the environment in which he operates."
Ship-tracking data shows that China's seabed surveying effort is concentrated in part around militarily-important waters near Guam, Hawaii, the Philippines and China. Wake atoll is a military base in the north Pacific.
Jennifer Parker, adjunct professor of Defense and Security at the University of Western Australia (and former Australian antisubmarine warfare officers), said that "the scale of their actions is more than just about resources." If you take a look at its sheer size, it is clear that the Australians intend to build a blue-water navy that includes submarine operations.
Parker and other experts also added that, even when data are gathered for scientific reasons, the integration between civilian scientific research, and military?technology has become a major focus of the Chinese Government under President Xi Jinping. Beijing calls this "civil-military" fusion.
The Chinese ministries of foreign affairs, defense and natural resources did not respond to inquiries about ocean monitoring and seabed mapping.
The U.S. Defense Department did not respond to any questions.
Rear Admiral Mike Brookes of the U.S. Office of Naval Intelligence testified to a congressional committee this month that China has dramatically increased its surveying activities, providing data "that enable submarine navigation, concealment and positioning of seabed weapons or sensors." Brookes also said that the "potential collection of military intelligence" by Chinese research vessels "represents an important strategic concern." The United States has recently reorganized its efforts to map the ocean and monitor it, but they do so using military vessels which are permitted to disable the civilian tracking software. China's civilian survey vessels also disable tracking at times, so its campaign could go further than we can determine. It is the first report on the extent of China’s mapping and monitoring efforts across the Pacific Ocean, Indian Ocean and Arctic Ocean. In previous reporting, a small portion of China's mapping and monitoring effort was revealed around Guam and Taiwan and in some parts of the Indian Ocean.
Ryan Martinson, a U.S. associate professor who specializes in Chinese maritime strategies, said: "It's truly astonishing to see the immense scale of Chinese marine science research." Naval War College.
Martinson added, "For decades the U.S. Navy was able to assume an asymmetrical advantage due to its knowledge of ocean battlespace." China's efforts "threaten that advantage." This is obviously very concerning.
"PARANOID about being boxed in"
According to naval experts, the data collected by Chinese research vessels about seabeds and water conditions are crucial for submarine operations and antisubmarine warfare. According to Australian defense scholar Parker: Commanders need information about the underwater terrain in order to avoid collisions, and conceal their vessels.
This data is essential to detect submarines that operate within a few hundred metres of the surface. Submarines can be identified by the sound they make or echoes of signals from sonar systems. Tom Shugart is a former U.S. sub commander and adjunct senior fellow with the Center for a New American Security. He said that the sound waves move differently depending on the underwater terrain.
Water temperature, salinity, and currents also affect sound waves and submerged movements.
The vessels in question belong to Chinese state entities such as the Ministry of Natural Resources, or to state-affiliated institutions of higher learning like Ocean University. In 2021, its president publicly celebrated "close ties with China's Navy" and "commitment to building a maritime force and national defense." The university did not respond to a comment request.
China's most extensive ocean surveying has been done east of the Philippines. The Philippines is located along the First Island Chain. This chain of territories, largely controlled and governed by America, runs from the Japanese Islands in the north, through Taiwan, to Borneo, in the south. The chain is a natural barrier that separates China's coast seas from the Pacific.
Peter Leavy, former Australian naval attache in the U.S. who is now the president of the Australian Naval Institute, said that the First Island Chain was a source of paranoia for the Australians. China's mapping is "an indication of a desire to better understand the maritime domain in order to break out."
China's tracking data also shows that it covers the waters around Guam, where American nuclear submarines have been stationed.
Chinese vessels also mapped the waters surrounding Hawaii, another of America's regional military hubs. They examined an underwater ridge to the north of a base in Papua New Guinea, where the U.S. gained access recently. And they scouted Christmas Island, a territory of Australia on a route connecting the South China Sea with a crucial Australian submarine base. China's efforts go beyond the South China Sea. China has also mapped vast?swathes of the Indian Ocean. This is a crucial route for Chinese imports from the Middle East, Africa and the Middle East.
Parker, a former anti-submarine war officer, said that China has "some key vulnerabilities" when it comes its dependence on maritime trade. Surveying indicates that "they will likely conduct more submarine operations in Indian Ocean".
China's ships have also mapped seabeds west and north from Alaska, a vital sea route to the Arctic. Beijing has declared the Arctic a strategic frontier, and its ambition is to become a great polar power by 2030.
Shugart said that the extensive surveying, and Beijing's increasing undersea capabilities are "symptomatic" of China's rising as a leading maritime power.
A 'TRANSSPARENT OCEAN'
Wu Lixin proposed an ambitious project to create a transparent ocean in 2014 by deploying sensors to give China a complete view of the water conditions and its movement. This was according to a report published by the Chinese Academy of Sciences, which is affiliated with state. According to Shandong officials, the Shandong government quickly backed this proposal with at least $85 millions.
Ocean University has announced that it began the project in the South China Sea where they have built an observation system covering the deep-sea area.
Brookes Brookes, director of the U.S. Office of Naval Intelligence told the Congressional?commission China was building underwater surveillance networks to "gather hydrographic information - water temperatures, salinity and currents – in order to optimize sonar performances and enable persistent surveillance of subs transiting crucial waterways such as the South China Sea."
Chinese scientists have expanded the project transparent ocean to include the Pacific and Indian Oceans after surveying the South China Sea. Records from the Chinese Ministry of Natural Resources and Shandong Government show that China deployed hundreds of sensors and buoys in the Pacific to detect changes like temperature and salinity.
Documents from the Ministry of Natural Resources and the Chinese Academy of Sciences describe an array of sensors ringing India, Sri Lanka and the Ninety East Ridge, a mountain range under the Indian Ocean. Starboard data shows that Chinese vessels also explored the ridge, which is one of the longest underwater mountain ranges in the world. It sits on the approach to Malacca Strait - through which a large part of China's oil supplies passes.
Ocean University and Institute of Oceanology of the Chinese Academy of Sciences have stated that the larger network of sensors provides China with data in real time about the water conditions and movements of subsea.
Experts in naval warfare cautioned against this claim due to the technical difficulties of real-time data transmission from under water. Parker stated that even delayed data could be valuable as it can help China detect U.S. sub operations. Many sensors are located in sensitive areas. Recently, the media reported that the U.S. was fortifying a crucial strait connecting Taiwan and the Philippines in order to block Chinese access to Pacific. Ocean University reports that China has installed?advanced sensor systems in areas of the strait where U.S. subs could move through to reach the South China Sea.
Chinese scientists claim that these sensors monitor changes in ocean and climate conditions. In 2017, Shandong officials said that the transparent ocean project aimed to "ensure maritime security and defense" and compared it with the U.S. military's effort?to create an American ocean sensor network.
The Chinese Academy of Sciences, Shandong Government and Institute of Oceanology did not respond to comments.
According to the website of the Naval Submarine Academy in China, the founder of the Mapping-Program, Wu, now oversees the Network through the Qingdao National Laboratory for Marine Science and Technology. Wu did not respond to any questions.
'NEW TYPES OF COMBAT CAPABILITIES'
China's mapping system and monitoring tools give it the sophisticated tools needed to detect and destroy rival submarines in some of world's most volatile waters.
Collin Koh is a senior fellow at Singapore's RSIS Institute of Defence and Strategic Studies. He said that this was a manifestation of China’s vast sea reach. "They have a fairly good idea of the maritime domain that they want to operate in either in peacetime, or during war."
Chinese researchers also see the strategic value of their work. Zhou Chun is a researcher at Ocean University who supervises the Indian Ocean sensor arrays and Pacific Ocean sensor arrays. He was quoted in a press release from Ocean University last year as saying that he had seen "the rapid growth of my country's military and maritime capabilities." He did not respond to any questions.
Zhou promised to "transform our military's most advanced technological and scientific achievements into new combat capabilities at sea."
(source: Reuters)