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Grid operator in US Central States warns of rolling blackouts
The regional grid operator for 14 central states in the U.S. warned on?Monday evening that he?could _order rolling blackouts because of a potential electricity shortage due to record demand. The regional?U.S. A heat wave has caused several power plants to unexpectedly go offline. This leaves reserve margins razor thin. The pool called the Southwest Power Pool (SPP)?issued an energy alert level three, which means that the grid operator utilized some or all its operating reserves to meet demand. Grid operator claimed it had not been forced to order rolling blackouts, despite the high risk. SPP sent out a level three alert for its western region at about 6 p.m. Grid operators will occasionally order controlled blackouts to prevent power outages from spreading across a larger area.
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Saudi Arabia condemns Houthi threat of blockade; group warns escalation
Saudi Arabia condemned Monday what it called allegations made by Yemen's Iran aligned?Houthis, that the kingdom is besieging Yemeni citizens. This was after the group announced?it would impose?a??maritime?blockade?on Saudi Arabia. The Houthis announced on Monday that they would impose an naval blockade against Saudi Arabia. This could open a new front in the war between the United States and Iran, and raise the threat of global energy and trade beyond the Gulf. The Houthis' military forces declared in their statement that they would declare "a maritime embargo against the criminal Saudi enemy based on the formula of "an eye for an ear",?effective immediately", as a response to the "unjust and oppressive siege" the Saudis imposed on the?Yemen. Saudi Arabia's foreign ministry has condemned the Houthi military spokeswoman for her claims that the Kingdom is imposing a blockade on Yemen and besieging it. The ministry announced that it would take "all measures necessary" to protect Saudi's ships. Yemen has been engulfed in civil war since more than 10 years ago when the Houthis took?the capital Sanaa. This prompted a Saudi-led intervention in 2015 to?support the internationally recognised government. Since then, the conflict has evolved into one the world's worst humanitarian crises. The country is now divided between a Saudi-backed administration in Aden and the Houthi government in Sanaa. Shipping data shows that cargo ships and other vessels have been regularly arriving at the port of Houthi controlled Hodeidah in recent weeks to deliver food fuel and other items. Menna Alaa, Ahmed Tolba, and Enas Asalashray report; Lincoln Feast edits.
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Experts say that Air Force One’s Qatari aircraft needs to be upgraded for security, but they wonder if one month is sufficient.
Experts said that the newly announced grounding by President Donald Trump of his Qatari-gifted 'Air Force One' jet was likely due to security upgrades, but questioned whether one month would be enough time to improve the aircraft's defences. Trump announced on Sunday that the Boeing 747 that began flying him in July would be "maxed-out" with new capabilities. He said this process would take around a month. Trump's decision to switch to an older Air Force One on his flight from Turkey to the United Kingdom in July?8 as tensions between the United States and Iran grew brought the plane's readiness for security under new scrutiny. The Boeing 747 with the red, white and dark blue livery selected by Trump is a Boeing gifted to the United States last year by Qatar and refitted L3Harris Technologies LHX.N. The plane was intended to be a temporary replacement for the Air Force Ones that Boeing?BA.N has been struggling to deliver. Douglas Birkey is the executive director of the Mitchell Institute for Aerospace Studies. He said that the standard Air Force One fleet has a suite of sophisticated protections including anti-missile system. However, the White House seems to have "accepted" a lower level of protection for this Qatari jet to get it up and running quickly. Birkey?said that the aircraft is likely configured for "neutral" or low-level threat environments, and officials are working on adding additional defenses. He said that any work completed in a month will likely be limited to non-kinetic defenses such as electronic jammers and "dazzlers" designed to confuse heat seeking missiles. Birkey stated that infrared guided missiles are a growing concern for military planners. They are more difficult to detect than traditional radar-guided weapons and can "come out of nowhere." The Air Force declined to comment. The new Air Force One will be upgraded and enhanced in the fall, which will take about a month. During this time, President Obama will be flying on the older?Air Force One", White?House spokesperson Karoline Leavitt stated on Monday. Mark Cancian is a senior advisor at the Center for Strategic and International Studies. He said that there's not much they can accomplish in a month. He agreed that the work could be limited to software updates, or adding flares or chaff. Cancian stated that 'the decision to change aircraft in Turkey was likely based on updated intelligence about threats from Iran. This led officials to conclude that the threat level was greater than what the Qatari Jet could handle. Democrats have questioned the speed at which the aircraft was brought into service. They argue that more time is needed to complete the security upgrades. Senator Jeanne Shaheen stated at the Farnborough Airshow, that Congress must examine the safety of the plane. We knew that there were security issues with the plane. "We've known this from the beginning." (Reporting and editing by Chris Sanders, Sanjeev Mirlani and Chris Sanders in Washington. Additional reporting by David Shepardson and Trevor Hunnicutt from Washington and Farnborough.
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IndiGo and CFM sign major jet engine repair shop deal
IndiGo, India’s largest airline, has signed a preliminary deal with?CFM International to purchase over 1,000 LEAP-1A engine. This is a record order for this French-U.S. engine maker, which is currently battling a repair backlog. The Memorandum of Understanding at the Farnborough Airshow will provide engines for the same airline’s massive order to purchase 500 Airbus A320neo family aircraft by 2023, at the Paris Airshow. Paris alternates with Farnborough each year as the industry’s annual showcase. This deal includes plans to have the airline open a maintenance, repair, and overhaul center as well as an agreement for parts. CFM is the largest engine manufacturer in the world by the number of engines sold. It makes engines for the Airbus A320neo and competes with Pratt & Whitney. It is co-owned by GE Aerospace, France's Safran and CFM. Long maintenance 'waiting' times and shortages in spare parts have caused the engine industry to be?disrupted for many years. This has forced airlines to temporarily keep their planes idle. CFM announced at the weekend that it has reduced the number planes grounded due to LEAP engines related issues to "near zero". Pratt & Whitney has also seen improvements. The rival company, which was the main cause of groundings, due to a?shortage of maintenance capacity, and metal contamination problems, has reported similar results. Sources in the industry said that two of the largest budget airlines in the world decided to build repair shops partly to protect themselves from a'scarce capacity for repair. Both airlines will only use their own engines and not outsource their internal resources to others. Even though engine manufacturers are gradually easing the delays, a sharp increase?in planes being constructed means that access to repairs will become a strategic issue for airlines in the future. Boeing warned last week that a lack of skilled?technicians, repair times and supply chain problems would put engine services under strain for the rest of this decade. The U.S. aircraft manufacturer predicted that the total annual MRO market would grow by 88% to $215 billion in 2045. (Editing by Tomasz Janowski and Deepa Babington).
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A northern city lost trains to London on the day Andy Burnham became UK PM
The day Andy Burnham was elected prime minister, the region suffered a blow when a major train operator cut off many direct trains to London. Burnham, former Greater Manchester Mayor, has pledged to take greater control over key privatised services, such as trains, in order to boost connectivity and productivity and improve living conditions. East Midlands Railway's reduced timetable?took place on Monday and disrupted services from Sheffield, Nottingham, to London. The company did not specify a date by which services would resume. Cutbacks are an example of the frustration Burnham promised to address. Britain struggles to build and operate infrastructure in a reliable manner, and many services are provided by companies that are not accountable to local politicians. Oliver Coppard is the mayor of South Yorkshire Mayoral Combined Authority, which oversees Sheffield and the surrounding towns. He said it was a test case to see if Burnham's promise that the regions would be empowered could fix these problems. Coppard stated that he was now reduced to saying to private companies, "Do better". It's not enough. "I want to bring back the power and control in South Yorkshire so that we can make these decisions and change these systems, so they work well for people." EMR stated that the reduced timetable was due to delays in the rollout new Hitachi trains. EMR data showed that on a weekly basis, one out of five scheduled services between Sheffield or Nottingham to London would be either cut or run using fewer carriages. EMR's spokesperson stated that "this temporary?timetable" will be reviewed regularly and services will be increased as soon as they are confident of their ability to do so. A spokesperson for the Department of Transport said that it had asked EMR do everything they could to minimize the impact of timetable changes. Sheffield is a city of nearly 600,000 people, and it's known for its steel industry. Boeing and McLaren Automotive are major employers. Henri Murison is the head of the Northern Powerhouse Partnership. This business-backed group lobbies to attract investment in Northern England. He was worried that the news would permanently damage the attractiveness. (Reporting and editing by Hugh Lawson; Reporting by Andy Bruce)
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Ten bodies found after ferry capsizes near Guyana coastline
Guyana's government announced on Monday that 10 bodies were recovered from a ferry capsized over the weekend off the coast with 133 passengers on board. The ship flipped late Saturday night. Authorities have suggested that an incorrect 'passenger manifest' and drug use by the crew could have been a contributing factor to this?disaster. The MV Barima capsized as it traveled from the capital, 'Georgetown' to the village of Port Kaituma in the northwest. Although 67 survivors, including 15 children, were rescued Sunday morning, dozens of people remain unaccounted for. Search teams expanded their area of search to 1,040 sq km (401 sq miles) with the help of private energy sector vessels and divers. Officials said that the vessel's captain, and at least one other crewmember are in police custody after testing positive for marijuana. Mark Phillips, Prime Minister of Canada, has ordered an investigation into possible institutional failures. Phillips promised that anyone found guilty will be prosecuted. Reporting by Kemol King
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Red Sea war insurance rates rise after Houthi Blockade, say sources
Insurance industry sources say that the cost of insurance for shipping goods through the Red Sea increased 'on Monday, after Yemeni Houthis, who are Iran-aligned, announced a naval blockade against Saudi Arabia. This increased risks to merchant shipping. The Houthis' move opens up a new front in the war against Iran waged by the United States and increases the danger to energy supplies and global trade outside the Gulf. Sources who declined to identify themselves due to the sensitive nature of the issue said that the indicative war risk premiums increased to around 0.75%, up from 0.3%, the day before the Houthi announcement. A seven-day trip can cost hundreds of thousands more dollars for even a minor change. It is unclear how the Houthis will 'carry out' a naval blockade against Saudi Arabia, their northern neighbour along the Red Sea coast, or if it would include a return of attacks on shipping. Since the U.S. and Israel's conflict with Iran started on February 28, Saudi Aramco has increased its use of the Yanbu Terminal in the Red Sea. Ambrey, a British maritime security firm, said that vessels flying the Saudi Arabian flag, those owned or operated by Saudi Arabia, and vessels on their way to or from Saudi Arabia, as well as vessels in Saudi Arabian ports or en route, were all deemed 'at high risk' of being attacked by Houthis. The Houthis committed a mistake during the Red Sea Crisis of 2024 by targeting ships with outdated affiliations to firms. Ambrey stated that it is possible for vessels to be targeted because of a mistaken identity. Saudi oil exports could be halted to Asia if the Bab el-Mandeb strait is closed. This would also reduce the global supply of oil by 7%. Red 'Sea traffic is still not back to normal since Houthi attacks on Yemeni coasts began in November 2023, in what they called a'solidarity war with Palestinians. The Gaza ceasefire of October 2013 was the only time that all Houthi attacks ceased. In recent months, there have been more suspected Somali piratery and hijackings of ships in the Gulf of Aden. This has increased the dangers to shipping. (Reporting and editing by Susan Fenton; Jonathan Saul)
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Senators from the US at an airshow reassure foreign defense companies and urge tariff-free trading
Nine?U.S. senators from both parties have formed a bipartisan group. Senators sought on Monday to reassure defense contractors of?American allies about the growing demand for their product and asked?the Trump Administration not to impose tariffs on aerospace products. At the Farnborough Airshow, Republican Senator Jerry Moran said: "Our message is to encourage them to improve their capability to send a message that the signal of demand is real." "We're doing things in Congress to suggest that demand will only grow." Moran said, "We must increase the demand for our country's protection." He added that the event would allow lawmakers to talk with Europeans, "to'reiterate and commit ourselves to the United States wanting to participate in global economy and national security. Senator Jeanne Shaheen, a Democrat from the United States, said that the senators represented a wide swath in the country where aerospace was important. She said that the U.S. was exhibiting at Farnborough in its largest ever presence. She pointed out that last year China was more visible at the Paris airshow. Shaheen stated that "the fact?that America has such a large?presence is important, not only for America's industry, but also the partnerships we need around the globe to improve not only our economic security, but our national safety." Shaheen stated that the U.S., European Union and other countries need to collaborate in order to meet the?needs of defense and the backlog. The U.S. Commerce Department announced earlier this month that it had finished a probe of imported commercial aircrafts, jet engines, and parts. It found foreign goods raised U.S. National Security concerns, but the Trump Administration is not?immediately seeking new tariffs. After a brief tariff on aviation in 2018, the Trump administration bowed to pressure from the U.S. Aviation sector and agreed to exempt aircrafts and parts as part of trade deals. Moran, Shaheen, and others oppose tariffs. Eric Fanning CEO of the Aerospace Industries Association noted that the U.S. Aerospace and Defense industry saw a 25% increase in exports over the past?year, with more than two million U.S. employees. Fanning stated that "we are by far the world leaders." Airplanes, parts and accessories have been exempt from tariffs since 1979 under the Civil Aircraft Agreement. The U.S. sector has enjoyed an annual surplus of $75 billion. (Reporting and editing by Alexandra Hudson; Reporting by David Shepardson)
How the Houthi blockade of the Red Sea strengthens Iran's grip over global energy supplies
Houthis, who are allied with Iran, in Yemen, will blockade Saudi Arabia's maritime traffic, they announced on Monday. This would further restrict a global market for energy, which is already severely restricted due to Iran's closing of the Strait?of Hormuz.
Why it matters, and what it means to the Iran War and the global energy crises:
How big is the risk to global energy markets?
It's not clear what the Houthis will do to blockade Saudi Arabia along the Red Sea Coast, their northern neighbor. Or if they would return to attacking shipping.
Yemen is located on the strait of?Bab el-Mandeb - the southern entrance to the Red Sea - so closing it would create a 'new front' in the conflict between Iran and the U.S. and the energy crisis.
The Red Sea is now a vital alternative outlet for Gulf Oil and other products, with Hormuz disrupted. If both major Middle East oil export routes were closed simultaneously, a serious disruption would be the result.
The partial blockade of Iran's Strait of Hormuz by Israel and the U.S. after their attack on it on 28 February disrupted the majority of oil and other Gulf exports, causing prices to rise and a global energy crisis.
Saudi Arabia responded to this by redirecting more than 70% its daily crude oil exports to Yanbu, a port on the Red Sea. Ships bound for Europe leave Yanbu via the Suez Canal. Those headed to Asia pass through Bab el-Mandeb.
According to Kpler's and Signal Ocean's data, Yanbu has shipped an average of 4 million barrels per day over the past few weeks. This is up from 973,000 bpd one year ago.
According to Kpler, the total petroleum volume transiting Bab el-Mandeb in June was 7.4 million bpd, which is about 7% global oil production. This represents an increase from 4.2 million bpd a year ago.
This has helped to stabilize the global oil price by stabilizing the energy market. Last week, it was reported that Saudi Arabia is looking at expanding its crude oil pipeline along the Red Sea Coast.
Gulf oil exports flowed freely when the Houthis attacked?Red Sea Shipping in November 2023.
Who are the HOUTHIS and do they close RED SEA ENERGY routes on behalf of Iran?
In the 1990s the Houthis were a military, religious and political movement that fought guerrilla warfare against the Sanaa government.
Since more than a century, they have waged a civil war with the internationally recognized, Saudi-backed government and attacked Gulf neighbours using missiles and drones.
The truce of 2022 between Yemen's warring parties largely held up until last week when Yemen's internationally recognised government claimed it had attacked Sanaa Airport to prevent an Iranian plane from landing.
The Houthis claimed that Saudi Arabia was to blame and, in response, fired missiles into Abha Airport in the mountainous southwest of the Kingdom.
In an interview with Press TV, a senior Houthi, politburo-member Mohammad al-Farah warned that if things continued to escalate, Bab el-Mandeb could be closed.
Iran supports the Houthis in its regional "Axis of Resistance", including Lebanon's Hezbollah, and Iraqi Shiite militias. However, its ties to the Yemeni movement is less clear than those with these other groups.
Houthis don't recognise Iran's supreme ruler as their ultimate authority religiously in the same manner that Hezbollah or Iraqi groups do. They are motivated primarily by domestic issues, even though they share Iran's ideology.
Hezbollah is said to have helped Iran arm, fund and train the Houthis. The Houthis claim to be independent and do not accept that they are Iranian proxies. It is not clear to what extent the Houthis' stance on Bab el-Mandeb, the Red Sea and their own strategic priorities are influenced by Iran.
What happened when the HOUTHIS attacked RED SEA SHIPS before?
The Houthis started firing on Israel and ships in the Red Sea after the Hamas attack of October 7, 2023 and Israel's devastating Gaza campaign. They said they were doing this in support for Palestinians.
The attacks caused a major disruption in global shipping. Maersk and Hapag-Lloyd, among other large companies, diverted around Africa, a route that was much longer and more expensive.
Suez Canal Authority data show that the Red Sea traffic is still not recovering. The traffic through the Suez Canal in 2025 will be 52% lower than in 2023 and its lowest level in 50 years.
The U.S. led mission to restore freedom of navigation in the Red Sea included repeated strikes against Houthi targets, and a defensive offensive that destroyed hundreds of drones.
Some Houthi attacks continued until last summer. They only ended completely after the Gaza ceasefire.
The Houthis announced last month that they would ban all ships from the Red Sea linked to Israel after Israel re-launched military attacks on Iran.
Maersk announced this month that the threat never materialized and that Hapag-Lloyd and Maersk are now resuming certain Red Sea routes they abandoned last year during Houthi attacks.
WHAT HAS THEIR ACTION BEEN DURING THE LATEST IRAN WAR?
Hezbollah, the Iraqi groups and even the U.S. military joined the war with rocket and drone attacks after the initial U.S.-Israeli strikes against Iran. The Houthis were relatively quiet.
Abdul Malik al-Houthi, the leader of the group, said on March 5, "Our fingers are ready to fire at any time if circumstances warrant it".
Iranian commanders warned repeatedly that the Houthis might join the war. In late March and earlyApril, the Houthis launched some missiles and drones attacks against Israel.
Esmaeil Quds Force Commander Esmaeil Quaani of the Revolutionary Guards Quds Force said on June 1, they could choke off Red Sea.
It may have changed now with their announcement on Monday of the blockade against what they called "criminal" Saudi Arabia as retaliation to what they said the kingdom was sieging its ports and airports including last week's strikes. (Compiled and edited by William Maclean, Jason Neely and Angus McDowall)
(source: Reuters)