Drones blamed for explosions at Egyptian Mediterranean port in possible spread of war

Related News

• Martin Vladimirov: The race for economic security is driving Europe's energy transformation.

  Europe is less vulnerable to disruptions in energy supplies since the Russia crisis of 2022, but the region still faces a new threat: high energy costs that are destroying the industrial base on the continent. Europe has fared relatively well so far in the global energy crunch caused by the Iran War that began on 28 February. This is largely due to massive investments made in LNG terminals, mandatory storage, and an increased reliance on U.S. Liquefied Natural Gas. The price of?gas in Europe has risen but the region is not yet in crisis mode, like it was after Russia invaded Ukraine. The conflict in Iran has shown that Europe is vulnerable to geopolitical instability, shipping disruptions and the competition from Asian LNG buyers. Since imported fossil fuels are the main factor in determining electricity prices, any external shock could lead to higher costs for European consumers and industry. By the end of 2025, European electricity and natural gas prices had fallen by 34% and 14 %, respectively, compared to their averages in 2022. But they were still about 50% and 38% higher than pre-war prices. The impact of higher energy prices on the European economy has already been significant. Between 2019 and 2023, the continent lost over one million industrial jobs. According to Handelsblatt, Germany, which was once considered "Europe's growth motor", will lose another 143,000 jobs in 2025. The reasons for this include pandemic-related disruptions and higher inflation, as well as increased competition in advanced manufacturing from China. However, the high energy prices played a significant role because they made it harder for European manufacturers compete. If electricity is not affordable, Europe risks a faster deindustrialisation. AFFORDABILITY CRISIS The Center for the Study of Democracy's 2026 Energy and Climate Security Risk Index shows that affordability is now the biggest source of energy security risks for most European economies. The affordability risk fell 13% on an annual basis in 2025, but was still much higher than it was in 2021. Over the long term, countries that are most dependent on fossil energy sources, such as Poland, Bulgaria and Romania, will face higher energy costs, and a lower level of industrial competitiveness. Sweden, Finland and France are among the most resilient energy-producing countries in Europe. These countries combine low-carbon energy, such as nuclear and hydropower with rapidly growing solar and wind power and high levels of electrification. According to Electricity Maps, when the Iran War disrupted LNG flow through the Strait of Hormuz, in March, the average wholesale electricity price in Germany was higher than that in Finland, Sweden, and France, by EUR61 per megawatt-hour, EUR33 per megawatt-hour, and EUR35 for each, respectively. Gas is rarely the main factor in setting power prices for these highly electrified systems. In Finland and Sweden electricity already makes up around 30% of the final energy consumption, which is far higher than in most of Europe. France's electric system receives over 70% of it from nuclear power. The long-standing debate in Europe over nuclear energy versus renewables may not be the right one. Combining both produces the best-performing electricity system. GROWING PAINS Unfortunately, Europe lacks the necessary institutional framework to quickly and reliably deploy a more efficient energy system across the continent. It is true that Europe's electric system is changing with unprecedented speed. According to Eurostat, the installed solar capacity of several Central and Eastern European nations almost quadrupled from 2021-2025. The EU battery storage also increased by 10 times. The rapid growth of renewables that are intermittent puts increasing pressure on the electricity grids and storage systems. Last year's Iberian Blackout highlighted these vulnerabilities. Countries that combine renewables with reliable, low-carbon generation, stronger interconnections and greater investment ?in grid infrastructure appear to be significantly more resilient than their more fossil-fuel-dependent peers. The new nuclear project is also plagued by fragmented regulations, long permitting processes, financial constraints, and supply-chain bottlenecks, which drive up construction costs and cause delays. What can you do? Instead of treating each project as an individual national undertaking, the EU should develop common deployment programs based on standard procedures and commercially viable funding models, which would allow for successful designs and delivery methods to be quickly replicated across multiple countries. Keep up in the?AI Race This race for energy security is being accelerated by the race to create a competitive AI eco-system. AI data centres and advanced semi-conductor manufacturing require huge quantities of reliable low-carbon energy. Also, they rely on a secure supply chain for raw materials such as batteries, semiconductors, and advanced grid equipment. These are areas in which Europe is heavily dependent on Chinese manufacturers. If Europe does not diversify these supply chains, then it runs the risk of replacing one strategic dependence with another. Energy security in the AI era is not just about supplying energy. It is about whether or not the continent has enough clean, affordable and reliable electricity to maintain industrial competitiveness, technology leadership, and economic sovereignty. The countries who understand this shift will define Europe's future decade. Those who do not understand this shift will be left behind. You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. (By Martin Vladimirov, Edited by Margueritachoy and Anna Szymanski).

• Erdogan: Turkey wants to sign an energy deal with Iraq

  After he met with Iraqi Prime Minister Ali al-Zaidi, President Tayyip 'Erdogan' said on Tuesday that Turkey wanted to sign a comprehensive deal for energy cooperation as soon as possible. Erdogan, speaking at a press conference held after a signing event that was expected to include a deal keeping the Kirkuk-Ceyhan oil pipeline open 'for another year', said the state-owned Turkish oil and gas firm TPAO - would operate the Kirkuk oilfield currently used by BP. The deal to extend a decades-old agreement that governs the exports via the?pipeline, and which officially expired on Monday, was not signed by the sides. After signing three agreements?on collaboration in various fields?,?Erdogan stated that more agreements would be expected. However, his ministers abruptly briefed him on stage, and the two leaders then proceeded to their remarks, without any further signatures. The Iraq-Turkey crude petroleum pipeline agreement came to an end yesterday. Erdogan stated that the goal was to sign an energy agreement which would benefit both parties as soon as possible. In a press release on X, Turkish?Energy?Minister?Alparslan Bayraktar stated that TPAO acquired a 15 percent stake in BP Energy Company of Kirkuk?Limited. He added that this would enable the Turkish?company? to operate in the area. Bayraktar stated that "it will work with BPECKL to bring the 3 billion barrel reserve potential into production." BP has confirmed the agreement and welcomed the partnership between TPAO and BP.

• Sources say that three Russian Black Sea terminals have restricted grain shipments by truck due to shipping risks.

  Five industry sources have confirmed that three major Russian Black Sea grain terminals have limited grain deliveries via?truck due to increased shipping risks and the increased flow of grain following restrictions on the Sea of Azov. This month, Russia, the largest exporter of wheat in the world, has restricted shipping on the Sea of Azov after Ukrainian drones targeted several Russian grain ships along the route. The route accounts for about a quarter of Russia's grain exports. The authorities redirected grain that was previously shipped by rail and truck through the Sea of Azov from the fertile south to terminals at the Black Sea. Attacks on ports in the Black Sea have also increased. One source said, "Risks have increased and people are less willing to take reckless, bold risks." TERMINALS SHIP MORE THEN 20 MILLION TONES OF GRAIN Sources said that the three terminals in Novorossiysk -- NZT, KSK and ZTKT -- had limited deliveries by road. They can ship a total of more than 20 million tons of grains annually. The total annual Russian seaborne grains exports is around 50 million tonnes. One source said that the two terminals at Novorossiysk are able to accept grain by rail. However, these deliveries can only come from the southern Russian regions. ZTKT only accepts grain by truck. About a third is transported by truck. The terminals are a major supplier of grain to Russia, including Egypt and Turkey. The terminal owners, Delo Group and Demetra, have not responded to requests for comment. Sources said that the port of Kavkaz was shut almost immediately following restrictions imposed by the?Sea of Azov?on 10 July. A week ago, Russia banned vessel movements into and out of Novorossiysk port at night due to drone attacks. Another source confirmed that the ban is still in place. BALTIC PORTS ARE SEEN AS SAFEST ALTERNATIVE? Sources say that Russia is looking to diversify its exports. The Baltic region will be the priority in the future, as it's the most safe alternative route. Sources said that the Caspian Sea route was also an option. However, it's mainly used to ship goods to Iran. The risks are increasing due the the Middle East war and the recent attack by the Ukrainians on an Iranian vessel. Sources claim that shipments via the Caspian haven't increased since mid-July. (Reporting and Editing by Jan Harvey).

• Iran claims it still controls the Strait and is not interested in talks after Trump's halt to bombing

  Iran announced on Monday that it still controlled the Strait of Hormuz, and was not interested in restarting peace talks with the United States after President Donald Trump stopped a two week bombing campaign?that his top brass had told him ran its course. Trump ended the bombing campaign on the weekend after a '13 consecutive nights of intensifying bombardment that provoked Tehran into firing at U.S. base in retaliation. Iran has said that it will halt its attacks as long as there is a pause in the U.S. bombing. Trump's decision was based on advice from his top brass, who believed that the bombing campaign, which was aimed at breaking Iran’s grip on the Strait, had reached its limits. This is according to reports in the U.S. press and a U.S. government official. Officials in the U.S. told reporters that military commanders informed President Obama that they had run out of targets. The official stated that General Dan Caine (chairman of the Joint Chiefs of Staff) had expressed his concern about the depletion of weapons used for air defence to protect the?U.S. The region has bases. The New York Times and CNN carried similar reports over the weekend that indicated civilian and military advisers had told Trump to stop the campaign. Mike Waltz said that Trump had stopped his campaign on Sunday to give room for negotiation. Esmail Baghaei said, in a televised news conference, that Iran has not requested to resume "peace talks" with the United States. Oil prices fell after the U.S. ended its bombing campaign in hopes that global supplies would resume. Brent crude, the price of which briefly surpassed $100 per barrel for the first since May last week, dropped around 7.8% to just below $90 by Monday morning. Tehran's attempt to show that the U.S. attack had not achieved its goal was a way for it to indicate that they still controlled the most important waterway in the world for the energy markets. IRAN STATE MEDIA SAID SIX SHIPS ARE?TURNED BACKWARD IN STREET The same report was carried by several Iranian state media outlets, citing a "informed" source who said that Iran had stopped six "offending vessels" that attempted to cross its strait on Monday without permission. The source claimed that one of the ships had been involved in "an accident". The source said: "As announced previously, the traffic routes in the Strait of Hormuz are the ones specified by Iran. Other routes are contaminated, and there is no way out." Iranian state media reported this. Trump has launched a new bombing campaign against Iran, after Tehran fired at ships sailing through the strait on a route that the United States has promoted. The United States has instructed vessels to sail near the coast of Oman. Iran claims that ships can only?pass through a channel closer to its coast which it controls, and where it plans to impose a transit fee. In the two weeks that followed, U.S. airstrikes killed dozens of Iranians. They also destroyed military targets and bridges in the south. Iran returned fire against U.S. bases located in neighboring Arab countries, killing four U.S. soldiers. Iran also targeted civilian infrastructure in Gulf states in what it claimed was retaliation against U.S. attacks on civilian targets. Last week,?Iran’s Houthi allies announced a blockade on Saudi Arabia’s oil industry at the Red Sea. This pushed oil prices higher. Trump's goal to break Iran's hold on the Strait is not clear from the U.S.'s halt of the renewed bombing campaign. Washington and Tehran agreed in June to a framework of talks to be held by the end of August, to address major issues like Iran's nuclear program. The sides disagree on the meaning of the language in the memorandum about the Strait of Hormuz. Washington says that Tehran must allow free travel, while Iran claims it gives it the authority to?supervise transit. Iran wants to formalise control of the strait through an agreement with Oman which controls the other side. Over the weekend, a senior Omani delegation was in Tehran to discuss the future of the Strait. According to reports published on Monday by the state media of Qatar, United Arab Emirates, and Saudi Arabia, the foreign ministers from each country had phone conversations to discuss the strait, including with Oman's Badr Albusaidi. Benjamin Netanyahu will meet Trump at the beginning of this week in Washington. Netanyahu launched the war with Trump in February, but hasn't participated in the U.S. and Iranian negotiations to end the conflict.

• Bousso: ROI-Europe is in for a long and cold winter, as fuel buffers are dwindling.

  Europe faces a winter of alarming fragility in its energy supply as conflicts in the Middle East, Russia and the United States tighten the global markets for heating oil and liquefied gas. According to official statistics, heating oil and natural gas are the two main fuels used in Europe for residential heating. Gas accounts for approximately 30% of heating demand, while oil is responsible for 10%. Both fuel markets are under extreme strain after years of energy shocks. Gas vulnerability in the region is largely a result of the dramatic change in its energy mix that has occurred since Russia's "full-scale invasion" of Ukraine in 2022. Europe quickly replaced Russian pipeline fuel with LNG and became one of the largest importers in the world of super-chilled fuel. This shift increased Europe's security of energy by reducing its reliance on Russia. However, it also complicated the energy dynamics in the region. Instead of relying solely on long-term flows, Europe competes with Asia and the other regions in an LNG global market where supply disruptions are almost instantaneous. In recent months, this vulnerability has become more apparent. MIDEAST LNG Crunch Europe is falling behind in replenishing its LNG inventory before winter. According to LSEG, underground gas storage facilities are around 55% full at the moment, which is their lowest level since 2021. Since the start of the Iran War, LNG imports to Europe have been a sharp decline. According to Kpler, imports will total just 6.3 metric tons this July, the lowest level since September 2024. Asia is a major factor. According to Kpler, LNG demand in the region has risen in recent months. A record 4 million tonnes of U.S. supplies were delivered in June and in July. These purchases diverted cargoes from Europe that would have otherwise been shipped. Many hoped, when the Strait of Hormuz opened briefly following the U.S./Iran interim agreement in April, that Qatar - which accounted around a fifth of the global LNG supply prior to the conflict - would quickly resume exports. The renewed blockade in recent weeks due to escalating tensions between the U.S. and Iran has dashed those hopes. The European market has become increasingly concerned by the combination low inventories, weak imports, and a deteriorating outlook for supply. Last week, benchmark European gas prices climbed above EUR60 per Megawatt Hour. They surpassed their previous peak during the Iran War to reach their highest level since 2023. Prices will eventually rise, attracting more?LNG to Europe. Even if imports improve in the coming months, it is likely that the region will enter winter with gas stocks well below the targeted 80% level. THE DIESEL DEVIL Europe is facing similar challenges with diesel, which has become one of this year's most pressing energy issues. Diesel imports are a major part of the region's economy. The fuel is used to power transportation, industry, and heating oil. During the summer, consumers and fuel distributors build up their inventories to prepare for winter. Inventory levels have actually decreased. The Iran War has caused a disruption in Middle Eastern supply routes, resulting in a reduction of diesel exports. Losing those barrels forced consumers to reduce their stock, pushing them to multi-year lows. The European diesel inventory is at its lowest level since 2022. According to the U.S. Energy Information Administration, US diesel stocks fell to a 23-year-low in May before rising by 10% the week ending on July 17. Two of the largest fuel exporters in the world have made policy decisions that have exacerbated this situation. China has limited fuel exports in an effort to conserve its supplies since the start of the Iran War. It is unclear how it will manage its production and future exports. In July, Russia, the second largest diesel exporter by 2025, banned diesel exports after Ukraine drone attacks severely damaged its refinery facilities and reduced fuel availability at home. Before the recent escalation of the war in Ukraine, Russia was shipping almost 1 million barrels per day or around 12 percent of the global diesel exports. The ban has led to a dramatic increase in the refining margins. Recent European diesel crack spreads reached a record high of almost $65 per barrel. These high prices have a tendency to reduce demand. According to the International Energy Agency, diesel demand in Europe fell by more than 6% to 5,53 million bpd in April. The decline in diesel demand may be due to the shift towards gasoline and electric vehicles. However, the persistently high prices have also forced consumers and businesses into reducing their consumption. Even if tensions ease in the Middle East quickly, damage has been done to inventories. The global LNG and diesel market is likely to be undersupplied for several months, as countries build up stocks and compete over limited supplies. This leaves Europe more?dependent upon a factor that it cannot control, the weather. A mild winter might?provide breathing space to avoid a full blown crisis. A prolonged cold snap that increases heating demand would reveal how little room for error there is in Europe's system. The continent is now one winter away from an energy crisis after years of shocks. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.

• Iran announces it will cease its strikes so long as the US bombing pause continues

  Iran will cease its attacks as long the United States also does,?a senior Iranian official said on Sunday. The United States has paused its bombing campaign after President Donald Trump's advisors informed him that they had run out of targets. They also expressed concern about the depletion of the U.S. weapons arsenal. The Pentagon ended the airstrikes against Iran after 13 nights. No U.S. strikes were reported for Saturday or Sunday. Iran has held off its attacks on the neighbouring countries of U.S. bases for two days. It had followed each night's U.S. airstrikes with its own strikes. An anonymous Iranian official said that Tehran would "continue to 'attack back'" if the U.S. attacks stopped. This message has been sent to the United States." Mike Waltz, the U.S. Ambassador to the United Nations told Fox News Sunday and other U.S. Media that Trump had decided to pause U.S. Attacks to allow for more time to be spent on diplomacy. Waltz did not provide any further details. "He is giving the talks some room, he gives it a bit of space," Waltz said. One anonymous U.S. official stated that U.S. officials have warned that the bombings in the Strait of Hormuz, a narrow waterway which has become a flashpoint in this war, had exhausted the pre-selected targets. The option of resuming major operations is still available, but the chairman of the Joint Chiefs of Staff General Dan Caine warned Trump privately that it would be risky due to the impact on munitions stocks. The official said that this includes the interceptors used in U.S. air defences in the Middle East. Caine's Office and U.S. Central Command refused to comment. U.S. officials have historically refused to discuss their private advice given to an American president in Congress, or even during testimony. Waltz told NBC's 'Meet the Press' that the U.S. Military "has everything it needs" but that Pete Hegseth, the Defense Secretary under the Trump Administration, "inherited a situation that was depleted." A senior Iranian source who spoke under condition of anonymity said that Tehran didn't hold much hope that Trump’s decision to pause the strikes would represent a major change in U.S. negotiation position. "There's more skepticism than optimism regarding the stoppage of attacks." It is generally believed that the pause in attacks is a tactical one and not genuine. Iran has had enough of what it perceives as 'U.S. deception,' the source stated. "STUCK IN LIMBO" For the last two weeks, U.S. troops have been attacking Iran every night in what Washington claimed was a retaliation to Iranian attacks against shipping in?"the Strait of Hormuz". Iranian forces responded to U.S. strikes by striking water desalination facilities in Gulf Arab countries nearby. Iran claims it wants to keep control of the Strait through which, before the war, a fifth?of global oil flowed. The U.S. renewed military campaign has effectively destroyed last month's interim deal aimed at ending war. Trump's decision to pause strikes was based on what media outlets have described as a Friday meeting where Caine, other senior military and policy advisers and Trump raised their concerns. CNN reported Vice President JDVance expressed reservations. Axios reported 'the commander of U.S. Forces in the Middle East Admiral Brad Cooper had recommended halting U.S. Bombing Campaign because it has'reached its limits of effectiveness. Residents of Iran are still apprehensive. Nader, a 49-year-old import/export businessman in Tehran, doubted that any strike pause would last. He told him by phone that "everyone in the country was stuck in limbo". Trump is playing with Iran. He does not end the war, leave the region or strike decisively. It's exhausting."

• Iran claims that a Ukrainian vessel attacked in the Caspian Sea has killed a sailor

  Iran's Foreign Ministry condemned on Saturday an attack by Ukraine on a commercial Iranian vessel in the Caspian Sea. It said that a resulting explosion killed one sailor and injured another. Throughout the Ukraine war, Kyiv had to combat drones designed by Iran that were deployed by Moscow. Kyiv offers its drone intercepting expertise to Middle East countries that have been hit by?Iran. Tehran called the attack on the Iranian vessel an act of aggression, and said it would defend national security and interests. It also accused Kyiv of trying to escalate the conflict in Ukraine. The Iranian denial coincided with the comments of Ukrainian President Volodymyr Zelenskiy, who said that Kyiv noted Russia's passing on of its'satellite observation in?the Middle East' to Iran in order to allow it to direct attacks in the region. Zelenskiy said earlier that Ukraine's military forces had struck a Russian ship and vessels transporting military cargo with ties to Iran in the Caspian Sea. In a series of?remarks on X, the Ukrainian president said that Kyiv has been recording since July 1 "active Russian satellite monitoring of the gulf states and U.S. Military facilities there." These images then appear in Iran." Zelenskiy stated that "there is a correlation between the Russian satellite imagery of the sites and the Iranian strikes - both before they were launched, as a 'preparation,' and afterwards, when assessing the damage done." He claimed that on July 19 and 20, he had observed four air bases, two in Bahrain, Jordan, and Kuwait. Reporting by Enas Alashray in Cairo, Editing by Ron Popeski and Rod Nickel

• Houthis attack Saudi oil sites, but no US strikes on Iran for the first time in two-weeks

  Yemen's Houthi militants, who are aligned with Iran, fired on Saudi oil facilities in two ports along the Red Sea Coast on Saturday. However, the U.S. did not launch air strikes against Iran for the first time in two weeks. Washington did not explain why it abruptly stopped a 13-night streak of escalating attacks in retaliation of Iranian attacks on ships in the Strait of Hormuz after an interim agreement to end hostilities failed. Hossein Kirmanpour, spokesperson for the Health Ministry, said on X: "It appears that our dear Iran enjoyed a peaceful sleep last night." No reports were made on Saturday about attacks by Iran against its Gulf neighbours like the ones that have been reported daily as a response to U.S. strikes. Axios cited two unidentified people familiar with the issue to report that Donald Trump had instructed the military on Friday not to launch any new attacks against Iran. The Pentagon and White House didn't?return any messages seeking comments on the pause of air strikes or the Axios Report. Trump stated on Friday that the U.S. was in talks with Iran to end their conflict but reiterated that Tehran wasn't ready to make a deal. The Gulf is quiet, but the fighting between Iran's Houthi and Saudi Arabia could indicate that the conflict, which has already disrupted the energy supply through the Strait Of Hormuz and Yemen's civil war, will spread to another major shipping route. WAR THREATENS SPREADING TO YEMEN Yahya Saree, the Houthi's military spokesperson, said that the group had struck successfully sites owned by Saudi Aramco at Jizan and Yanbu. A video shared on social media, and confirmed by, showed a column of smoke rising in the direction of Aramco's refinery in Jizan. Two Asia-based sources reported that they were informed of "potential damage" to the fuel and oil storage facilities at Jizan. Aramco has not responded to requests for comments. According to Greek security sources, in Yanbu, two missiles fired at oil installations by the Greek army were intercepted using a Patriot battery made by the U.S. military and operated by it in Saudi Arabia under an agreement signed with Riyadh. Yanbu, Saudi Arabia's Red Sea port, is where millions of barrels of oil are loaded every day. It has also become the main route for Saudi oil to bypass the Strait of Hormuz which Iran has blocked. Jizan is a Red Sea refinery that can produce 400,000 barrels of oil per day. It's located near the Yemeni border. Yemeni officials reported that the air force of Saudi-backed and internationally recognised government in Yemen, which has been fighting the Houthis since more than a century, had?struck Houthi launch sites for missiles and drones and weapons depots' in the Marib ad al-Jawf Provinces. The Saudi-led alliance had earlier claimed that it bombed Houthi positions in the Red Sea Port of Hodeidah on Friday. Officials in Yemen said that both sides of the civil war in Yemen are mobilising their forces on the front. SAUDI?COALITION ATTACKS HODEIDAH Saudi Arabia has been leading an Arab coalition fighting against the Houthis since more than a century, when the fighters aligned with Iran captured Yemen's capital Sanaa. Since 2022, the Yemeni civil war has been on hold. During this time, hundreds of thousands of people have died in fighting and from famine. This truce ended this month when the Houthis joined the larger war that their Iranian allies are waging since they were attacked by Israel and the U.S. Houthis have declared a naval blocade against Saudi Arabia in the last week. Abdul Malik al-Houthi, Houthi leader, said that all Saudi oil installations could be targeted. Brent crude oil prices rose above $100 per barrel this week for the first since May. Trump said on Friday that he would "impose major military punishment" against Tehran and the Houthis, after they attacked two Saudi tankers at the Red Sea. Two weeks ago, an interim truce intended to end the war collapsed when U.S. forces struck targets in southern Iran as a response to Iranian disruption of the shipping in the Strait of Hormuz. Trump has recently threatened to expand the list of targets, including Iran's bridges and energy plants, to send ground forces into its oil hub, Kharg Island. He also said he would bomb Pickaxe Mountain, a nuclear-linked deep-underground site. Trump, however, said on Friday that he hadn't yet decided whether to launch any major new strikes.

• Saudi Arabia and Houthis fire at each other as air defences intercept an attack on a refinery

  Greek security sources said that air defence systems in Saudi Arabia intercepted on Saturday two ballistic missiles fired from Yemen, which were aimed at oil refineries in Yanbu. This was as Saudi Arabia and the Iran-aligned Houthis traded fire in the new front of the Iran War. The coalition led by Saudi Arabia in Yemen announced late on Friday that it had hit Houthi military bases in the port of Hodeidah in connection with attacks against shipping by the group. This group has declared a maritime blockade on Saudi Arabia. Abdul Malik al-Houthi, the leader of the Houthi group, said that if Riyadh intensified its involvement in this conflict then all Saudi oil facilities and other important infrastructures would be targeted by the group’s drones and missiles. Saudi Civil Defense (the state's emergency service) had issued warnings for Yanbu on the Red Sea and later announced that the danger was over. Civil Defense issued an alert for Jizan port city, which is home to a 400,000 barrels per day oil refinery. Aramco, the Saudi state oil company, did not comment on these incidents. A video was shared on social media that showed a column of smoke rising in the direction of Jizan's Saudi Aramco Refinery. Two Asia-based traders said they were informed about some damage on the site. In the years prior to 2022, the Houthis attacked both Yanbu & Jizan before striking a U.N. mediated ceasefire with Saudi Arabia that held until this month. In 2019, they claimed responsibility for the attacks on two Saudi oil installations that temporarily shut down more than half of Saudi Arabia's crude production. GREEK-OPERATED AERIAL DEFENCES Sources said that Greek military personnel operated the defence system which intercepted missiles on the morning of Saturday. Greece has been deploying a Patriot air defence system, made by the United States, in Saudi Arabia under an agreement since 2021 to protect the energy infrastructure of the kingdom. Donald Trump, the U.S. president, promised "major military sanctions" against Iran and its Houthi partners in Yemen on Friday after the Houthis claimed they had attacked two Saudi oil tankers on Thursday in the Red Sea. The Houthi blockade of the Strait of Hormuz threatens to disrupt the flow of millions of barrels of crude oil per day that Iran blocks almost completely. The Saudi-led alliance said that it would take the necessary steps to protect its ships and Saudi Arabian interests and would react "uncompromisingly", if Houthis continue hostile actions. Yemen's Houthi foreign ministry claimed that the strikes on Hodeidah were the "start of an escalation phase" and blamed Saudi Arabia for any developments. Al Masirah TV, a Houthi-affiliated channel, said that Saudi airstrikes hit state-owned telecommunications facilities in Hodeidah. The broadcaster?also claimed that Saudi forces attacked Kamaran Island off Yemen's west coast. Saudi Arabia waged a seven-year conflict in Yemen that began?in 2015. The Houthi movement had seized the capital city and driven the internationally recognized government from power. In 2022, a truce halted the majority of major fighting that had killed hundreds of thousands?of people through violence and hunger. The Houthi's targeting of an airport in Saudi Arabia on July 13, and the naval blockade, have undermined the truce. The Houthis claimed that the airport attack was in response to an attack by Saudi Arabia on an airport they controlled and that the blockade of the navy was a reaction to the Saudi siege against Yemen, something Saudi Arabia denies.

• Trump warns China and Russia against involvement in Iran War

  Donald Trump, the U.S. president, said on Friday that he doesn't believe China or Russia is "participating." He warned them however that it would be "very bad" for them if they got involved. He wrote: "President Xi told me at our meeting in Beijing that he wouldn't, under any?circumstances?, sell or give weapons to the Islamic Republic of Iran -?and that statement included Chinese Companies" on Truth?Social. Trump claimed that Putin told him he wouldn't sell weapons to Iran, and that he thought Russia and China weren't involved in the Iran conflict. Trump wrote: "If they did it, that would be bad for them - certainly not in their best interest." Since February of this year, the United States and Iran are at war. This is because Israel and the U.S. launched attacks that killed senior Iranian officials including Iran's supreme leader. U.S. Intelligence sources told four people that the CIA's earlier Gulf War strikes on Iranian targets had prompted the U.S. Intelligence is investigating whether Russia has been assisting Iran in the use of drones or targeting information. The Kremlin declined to comment on Thursday's?report. The United States has sanctioned Russian and Chinese individuals and companies for helping Iran purchase weapons. Jasper Ward, Washington reporter; Michelle Nichols, editor

• Tanker switches Asia voyage via Suez amid Houthi warnings, owner says

  Torm, the owner of the Danish flagged oil products tanker Torm Innovation, announced on Friday that the vessel will be sailing to Asia via the Suez Canal with its cargo after Houthi threats against shipping in the southern Red Sea. Yemen's Houthis, who are aligned with Iran, declared a naval blockade on Saudi Arabia?on?Monday. This could open a new front in the Iran War against the U.S. and expand the threat of global energy and trade outside the Gulf. The vessel will sail via the Suez Canal and around Cape Town to Asia, due to the current security situation on the southern Red Sea. The cautious approach we take to the safety of our crew is our top priority, according to a spokesperson for?Torm. Torm has suspended transits in the southern Red Sea region since January 2024. "Only after careful case-by-case analysis did we have a few ships transiting this summer", said the spokesperson. We will continue to closely monitor the situation as it evolves. According to shipping and trade data, the?Torm Innovation?loaded a cargo of approximately 500,000 barrels naphtha in the Saudi port of Yanbu on the Red Sea, with Japan as its final destination. On Friday, the vessel was sailing northwards through the Red Sea with the Suez Canal listed as its destination. If the Bab el-Mandeb 'gateway' in the southern Red Sea that leads to the Gulf of Aden is not available, it will add 30 more days to the journey for critical fuel shipments from Asia to Asia. Closed Bab el-Mandeb is a major alternative for Saudi Arabia to the Strait?Hormuz and could increase fears about shortages. The Red Sea hasn't?fully recovered from the Houthi attacks off Yemen's coastline that began in November 2023, in solidarity with Palestinians during the Gaza War. The attacks by the?group on merchant ships ended only with the Gaza ceasefire in October last year. The Houthis have claimed responsibility for at least one Saudi oil tanker that was attacked off the southern Saudi Port of Jizan near Yemen. Suez Canal Authority figures show that the 'earlier Houthi attacks' on Red Sea shipping has caused volumes to drop by more than half since 2023. Last year, they reached their lowest level in at least fifty years. Reporting by Jonathan Saul, Ahmad Ghaddar and Helen Popper; Editing by Elly Hardcastle and Helen Popper

• Owner Torm claims that oil products tankers rerouted their voyage to Asia via Suez in response to Houthi warnings

  The owner of the Danish flagged oil products tanker, Torm Innovation, announced on Friday that the vessel will sail to Asia via the Suez Canal with its cargo due to the current security situation in southern Red Sea. The Iran-aligned Houthis declared a naval blocade on 'Monday against Saudi Arabia, opening up a new front in the war between the United States and Iran. This could threaten global energy supplies and trade beyond the Gulf. The vessel will sail via the Suez Canal and around Cape Horn to Asia, due to the current security situation on the southern Red Sea. Torm's spokesperson stated that this reflects the 'prudent approach we take to crew safety which is?our top priority. According to shipping data, the tanker?loaded a cargo of naphtha? at the Saudi Red Sea Port of?Yanbu?, with Japan?as a destination. (Reporting and editing by Jonathan Saul, Ahmad Ghaddar)