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Oil giants rush in to help Italy's Meloni reduce energy costs by introducing fuel price caps
Kuwait's energy firm,?Q8, will cap the price of Italian petrol at the pump for a month beginning October 1. This follows similar commitments by Italy's Eni as well as?Azerbaijan SOCAR. Market analysts have interpreted the moves as an attempt to curry favor with Rome's government and discourage it from imposing windfall taxes on energy company profits. This was something that Economy Minister Giancarlo Giorgetti, and other prominent politicians had proposed. Giorgia Melons is scrambling for resources to help families, firms and businesses cope with the rising energy costs. She's preparing to present her government's budget 2027 in October. It will be her last presentation before an upcoming election next year. Q8. Italy said in a press release that its cap would generate "tangible" benefits for motorists but didn't specify the price. Meloni, in a press release, said: "I'd like to thank Kuwait as well as the group operating the Q8 stations that operate in Italy for listening to the Italian government's request to energy companies about capping fuel prices." SOCAR and Eni have capped diesel prices at EUR2.19 ($2.48) a litre since Monday, while petrol is priced at EUR1.99 per litre. Equita and Intermonte, two brokers who provide brokerage services to energy companies and their clients, wrote in client reports that this initiative would reduce the risk of new taxation on windfall profits. Germany, Spain Portugal, Italy and Poland are calling for a windfall tax to be imposed on energy companies across the EU. They warn that oil prices are rising at a rapid rate, fueling voter unrest over the cost of living. Giorgetti is not ruling out the introduction of a domestic windfall-tax rather than waiting on a joint initiative. The National?Consumers' Union of Italy welcomed Q8's decision, stating that about half of Italy’s network of fuel stations will now be imposing price caps. The consumer group stated that the challenge is to "prevent the abuse" of dominant market positions, and to ensure that independent fuel stations are not squeezed out or forced to shut down. According to data from the industry ministry, price caps have had little impact on lowering fuel prices. The self-service price for petrol was EUR2.126 per 1 litre, down from EUR2.159 the previous day. Diesel prices were also slightly lower, at EUR2.335, compared to EUR2.377. The price of petrol on the motorway network was EUR2.180 and diesel EUR2.383.
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TSA officers are not allowed to sit down during ID checks in US airports
The US Transportation Security Administration and a major US airport union announced on Tuesday that officers of the US Transportation Security Administration will not be able to'sit while checking IDs' at uS airport checkpoints. The TSA has removed chairs from checkpoints. According to the American Federation of Government Employees TSA Council 100 which represents workers, the removal is "a disregard for workers' safety and rights" and the chairs are "basic ergonomic and safety support to officers who stand and walk all day on hard surfaces." TSA announced the decision and said: "This welcome shift reinforces our security posture as well as?our commitment towards hospitality by keeping these officers alert and on their toes." To perform their vital role in national security, all officers must meet the fitness for duty requirements. In April, President Donald Trump proposed cutting 9,400 employees and just over $1.5 billion or about 20% from the budget of the TSA, which has 60,000 employees. Trump has also proposed that smaller airports use private security. This would reduce the TSA's payroll by over 4,500 jobs, and is a step towards privatizing the agency, which was created in the wake of the September 11, 2001 attacks. Since years, about 20 airports have used private security screening, including those located in San Francisco and Kansas City, as well as Sarasota (Florida) and San Francisco. The US Senate voted in August to 'confirm' David Cummins as the new head of TSA. Cummins is a senior Vice President at Serco, an international company based in UK that provides public services to governments. Trump fired TSA chief David Pekoske in 2025 on his first day in office and didn't nominate a successor for 16 months. The government shutdown forced 50,000 TSA workers to work without pay for six weeks. This caused major disruptions including four-hour or longer airport security lines. CNN announced the new security procedures on Tuesday.
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Pentagon: Boeing has won the contract for next-generation US Navy fighters.
The Pentagon announced on Tuesday that Boeing had been selected to build the US Navy’s next-generation stealth fighter. This is Boeing’s second consecutive major victory in fighter jets, and it caps months of delays over a program which is crucial to countering China’s presence in the Pacific. Boeing won the $20 billion contract for test aircraft from Northrop Grumman Corp. Over the course of its life, the program's cost could reach hundreds of billions as production ramps-up and international customers place orders. Boeing won a contract to build the Air Force’s stealthy F-47 fighter in March of last year, making it its second major sixth-generation aircraft contract in consecutive years. Boeing's long-standing history of building carrier-based fighters, such as the F/A-18E/F Super Hornet it is replacing, made the company a strong competitor throughout the competition. This pedigree was a factor in overcoming concerns raised by officials about Boeing's ability to field enough engineers and vendors to build both the F-47 fighter and Navy fighter at the same time. Boeing shares rose?2.25% on Tuesday in extended trading, while Northrop stocks fell 3.5%. ST. LOUIS BUSINESS BOOST This contract represents a significant boost for Boeing's fighter-production operations in St. Louis (Missouri), which are closing down the F/A-18E/F Super Hornet, and EA-18G Growler, production lines. Steve Parker, Boeing Defense, Space & Security's president and chief executive, stated in a press release that the company had made "investments in new facilities uniquely suited for building multiple products with next generation capabilities. Our dedicated and talented team are ready to execute this crucial program." The new jet, currently designated "F/A-XX", will be at the heart of the Navy’s Next Generation Air Dominance system family. Michael Duffey said that the jet was "a critical, non-negotiable, investment in America's long-term air combat capabilities and national security." Delays and Congressional Intervention Despite this, the program has faced delays and funding disputes over many years. Pentagon officials wanted to delay the program by three years, citing concerns about engineering and supply chain capacity. Congress intervened and allocated $750 million in the 2025 tax cut?and spending bill and $1.4 billion in fiscal 2026. Lockheed Martin Corp. was eliminated from competition in March 2025, after Navy officials determined that its design did not meet required criteria. Boeing and Northrop were the two finalists. China is rapidly developing advanced combat aircraft including what Beijing calls sixth-generation designs. The Navy was under pressure to move quickly or risk not having a modern fighter carrier in the 2030s. The new jet will feature improved stealth capabilities and range, as well as the ability to integrate with the Navy's carrier-based systems for air defense. The Navy plans to purchase?more then 270 Lockheed Martin F-35C aircraft for its carrier fleet. These will fly along with the F/A-XX when it is in service. The first production F/A-XX aircraft are expected in 2030s. Meanwhile, the Super Hornets in service since 1990s will continue to fly until 2040.
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Smoke in the cabin causes emergency landing of a Boston bound Delta flight in Portugal
Delta Airlines reported that a flight from Barcelona to Boston made an emergency landing in Porto, Portugal on Sunday afternoon. The company reported that Flight DL251 had been diverted from Barcelona to Porto due to a mechanical problem and landed safely there. Flightradar24, a tracking service, indicated that the plane left Barcelona at 3:15 pm (1315 GMT), and landed in Porto at 5 p.m. (1645 GMT). A spokesperson for Portugal's emergency and civil protection authority said that eight passengers who were on board the Airbus A330 were treated at the Francisco Sa Carneiro Airport, while three others were transported to hospital. The Portuguese spokesperson said that the forced landing was due to "smoke" in the cabin.
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Increased security at US Fairford Air Base in England
A witness said that security measures at an 'US airbase in southwest England have increased significantly in the last few days, with roadblocks and armed police blocking access, as well as emergency vehicles parked near. A spokesperson from the US Air Force confirmed that they are aware of the current reports but will not discuss specific measures to protect forces. The spokesperson stated that "the 501st combat support wing and our UK-based Wings will remain vigilant and take appropriate actions to ensure safety and security for?our US servicemen, civilians and contractors, as well as their families." "We continually assess a number of factors to determine which measures we implement?or change in order to protect our installations and our people, as well as their families." Britain declared?in July that its armed forces were ready to protect the country against any attack, after Iran's Revolutionary Guards warned not to allow US bombers fly out of Fairford. Fairford in Gloucestershire was used to launch operations against Iran during the Middle East Conflict.
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Boeing flags 737 MAX Software Bug Affecting Landing Navigation Feature, WSJ Reports
The Wall Street Journal, citing documents from the company, reported that Boeing has discovered a previously unknown software bug in its 737 MAX aircraft. This glitch could cause an automated navigation 'feature' to fail on landing. Report said that the issue was caused by a software update in the cockpit and could occur when crews change their flight plan after a missed landing. Boeing, when asked for comment, said that it had informed 'all 737 operators' last month of the software problem under which pilots could not?have access to automated flight guidance in a certain landing scenario. Our engineers are working on a software update to 'permanently address the issue. Boeing stated in an email that engineers were working on a permanent software update. The Federal Aviation Administration (FAA) said that it was aware of a possible issue with a software update to the flight computers in certain Boeing 737 MAX aircrafts, and worked closely with Boeing as well as the airlines. The FAA issued a statement saying that it would convene a Corrective Action Review Board if a safety concern was identified. Boeing has come under heavy regulatory and safety scrutiny over the past few years, following two 'fatal 737 MAX crash incidents in 2018 and 2019, which led to a 'worldwide grounding of the aircraft. Also after a cabin panel blew out mid-air on a brand new Alaska Airlines MAX 9 in 2018. Southwest Airlines and 'United Airlines' have requested that Boeing not deliver new 737 MAX aircraft with the affected software, and instead request an earlier version. The report stated that it was not immediately clear how many aircraft were operating with the flawed software. Boeing, airlines, and regulators are evaluating the issue to determine if it poses a safety concern for flight, according to the report.
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Russia claims it has struck Ukrainian defence industry vessels and facilities
On Friday, the Russian Defence Ministry said that 'its forces' had carried out drone strikes overnight on Ukrainian defence industry installations, logistic centres and vessels used in Ukraine by its armed forces. The 'Ministry' said that the strikes targeted a 'drone assembly and storage site, in the Kyiv region; logistics hubs in Odesa and port infrastructure in Reni along the Danube River. It was also reported that Russian forces had struck a cargo vessel carrying dual-use and military goods bound for the port of Odesa. Later, on Friday, the ministry announced that its forces had hit another cargo ship?in Odesa that was delivering a?logistics centre?to the port Chornomorsk. This centre is used by Ukraine's armed forces and security forces. It also houses a data center for the?processing of intelligence data and the transmission of it. Could not independently verify statements.
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Volkswagen recalls 4 million cars, Handelsblatt reports
The Handelsblatt reported that Volkswagen, the German automaker, will recall 4 million vehicles from four different brands. This is the largest recall since the Dieselgate scandal. According to the German KBA, there will be a recall of 2.16 million VW and 700,000 Audi vehicles. The Handelsblatt reported that Volkswagen's Czech?brand Skoda, and Seat in Spain would also be affected by the action. Seat confirmed that the number. Skoda has not yet commented on the report. Volkswagen stated in an earlier press release that customers were asked to bring their vehicles to be repaired due to a?risk of corrosion associated with a screw within the steering system. If left unchecked this could affect the steering system's function in the long run. The company said that the recall is a precautionary measure, and that replacing the screw will take less than an hour. Volkswagen refused to comment on the cost estimate of the recalls.
The fear of an Iranian oil calamity in Hormuz is more than just a myth.
Fears of Middle East oil disruption after US strikes on Iran
Iran has attempted to blockade the Strait of Hormuz in the past.
US Navy is likely to respond quickly in the event of disruptions
Ron Bousso
LONDON, 22 June - The U.S. strikes against several Iranian nuclear sites are a significant escalation in the Middle East conflict. This could cause Tehran to disrupt essential exports of gas and oil from the region, causing a spike in energy prices. History tells us, however, that any disruption will likely be brief.
Since Israel launched surprise airstrikes on Iran on June 13 investors and energy markets were on high alert, fearing disruption of oil and natural gas flows from the Middle East. This was especially true for the Strait of Hormuz - a chokepoint that connects Iran with Oman, and through which 20% of global demand for oil and natural gas passes.
Since June 13, Brent crude oil prices have increased by over 10%, to more than $77 per barrel.
Although Israel and Iran have both targeted their respective energy infrastructures, there has not been a significant disruption of maritime activity in the area so far.
The decision of President Donald Trump to bomb three of Iran's nuclear sites early Sunday morning, along with Israel, could change Tehran's calculations. Iran has few options and could respond by attacking U.S. targets in the region or disrupting oil flow.
Although such a move is almost certain to lead to an abrupt spike in energy prices worldwide, the history of the market and its current dynamics suggests that any move will likely be less harmful than investors fear.
Can they do it?
First, we need to know if Iran has the capability of blocking or seriously disrupting the Strait of Hormuz.
Answer: Probably yes. Iran could try to place mines in the Strait which measures 34 km wide (21 miles at its narrowest). The Iranian army or paramilitary Islamic Revolutionary Guard Corps could also strike or seize ships in the Gulf. This is a tactic they have used in recent years.
Hormuz was never completely blocked but it has been interrupted several times.
During the Iran-Iraq War of the 1980s, both sides were involved in what was called the "Tanker Wars", which took place in the Gulf. Iraq attacked Iranian ships and Iran attacked commercial vessels, including Saudi, Kuwaiti, and U.S. Navy ships.
Ronald Reagan, the then-President of the United States, deployed his navy in 1987 and 1988 after Kuwait appealed to him. This was called Operation Earnest Will. The operation ended shortly after an American navy ship shot down Air Iran Flight 655 killing all 290 of its passengers.
At the end of 2007, tensions in the Strait erupted again in a series skirmishes involving the Iranian and U.S. Navy. One incident involved Iranian speedboats approaching U.S. battleships. No shots were fired. In the Gulf of Oman, Iranian troops captured the Advantage Sweet crude oil tanker chartered by Chevron in April 2023. The vessel was freed more than a full year later.
The U.S. Navy would respond to any Iranian attempt at disrupting maritime traffic in the Gulf with a swift, forceful response, thus limiting the possibility of a long-lasting supply shock.
HISTORY LESSON
History has shown that major disruptions in global oil supply have been short-lived.
Brent crude doubled to $40 per barrel in mid-October 1990 after Iraq invaded Kuwait. By January 1991, prices had returned to pre-invasion levels after a U.S. led coalition launched Operation Desert Storm. Kuwait was liberated the following month.
Even less impactful was the start of the second Gulf War between March and may 2003. The 46% rise in stock prices between November 2002 to March 2003, which was the period leading up to the war, was reversed quickly in the days before the U.S. led military campaign.
In February 2022, Russia invaded Ukraine, causing oil prices to spike to $130 per barrel. However, prices fell back to $95 in mid-August, their levels before the invasion.
The rapid rise in oil prices curbed the demand at the time, and this was a major factor for the relatively quick turnaround of the oil price spikes, according to Tamas Varga an analyst with oil brokerage PVM.
The global oil market was also shook by the Arab embargo of 1973 and the Iranian revolution of 1979, when attacks on oilfields in the country severely disrupted the production. These attacks did not include the blockade of Hormuz, and they were not met by a direct military response from the United States.
There is certainly spare capacity on the current global oil markets. OPEC+ is an alliance of oil producing nations that holds around 5.7 millions barrels of excess capacity per day. Saudi Arabia and United Arab Emirates have 4.2 million bpd.
Today, the Strait of Hormuz is the main route through which oil is transported from Saudi Arabia and UAE.
However, the two Gulf countries could bypass this strait via oil pipelines. Saudi Arabia is the top oil exporter in the world, with around 9 million barrels per day. It has a crude oil pipeline that runs between the Abqaiq Oilfield in the Gulf Coast in the east and the Red Sea port of Yanbu in west. The pipeline can handle 5 million barrels per day and has been temporarily expanded by 2 million barrels per day in 2019.
The UAE produced 3.3 millions bpd of oil in April. A 1.5 million bpd oil pipeline links its oilfields on the coast to the Fujairah terminal, east of the Strait of Hormuz.
This western route is also vulnerable to the attacks of the Houthis, who are backed by Iran and have disrupted the Suez Canal shipping in recent years. Iraq, Kuwait, and Qatar have no other alternative to the Suez Canal.
Iran may decide not to block the Strait, in part, because it would disrupt its oil exports. Tehran may also see any further escalation as futile in light of U.S. intervention and instead downplay the importance and return to nuclear negotiations.
Fearing a further escalation of the situation, the energy markets are likely to react to the U.S. strike with a dramatic increase in crude oil prices. Even in the worst-case scenario, where the Strait of Hormuz was blocked, historical evidence suggests that markets shouldn't expect a persistent supply shock.
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(source: Reuters)