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Three vessels struck by projectiles on Strait of Hormuz
Sources and maritime security agencies said that three vessels were struck by unknown 'projectiles' in the Strait of Hormuz on Wednesday. One of the strikes caused a fire to break out?onboard? a ship, forcing the crew of the vessel to leave. Two maritime security sources confirmed that the bulk carrier Mayuree Naree, registered in Thailand, was damaged and targeted approximately 11 nautical mile north of Oman. UKMTO (United Kingdom Maritime Trade Operations) later stated, in reference to the incident, the fire was 'extinguished' and there were no environmental impacts. The necessary crew remained aboard the vessel. Two maritime security sources reported that the container ship One Majesty, flying the flag of Japan, had suffered minor damage earlier from an unknown projectile, located?25 nautical mile (46 km), northwest of Ras Al Khaimah, in the United Arab Emirates. The sources said that the crew is safe, and the ship is heading towards a secure anchorage. According to maritime security firms, an unidentified projectile also struck a third vessel, a bul carrier, approximately 50 miles north-west of Dubai. Vanguard, a maritime risk management company, said that the projectile damaged the hull on the Marshall Islands flagged Star Gwyneth. The crew was'safe,' Vanguard added. Since the Iran conflict began on February 28, traffic through the Strait of Hormuz has decreased rapidly. This is a major artery that accounts for 20% of global oil & gas supply. Since the beginning of the conflict, at least 14 ships have been attacked.
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Some ships are struggling to fuel up as bunker prices in Asia reach record levels
Industry sources claim that some ships struggle to refuel in Asia's key ports as bunker prices soar. In anticipation of a tightening supply triggered by the conflict in the Middle East, bunker prices have reached record levels. The longer waits for fuel could cause congestion in Asian ports like Singapore, Shanghai, and Ningbo/Zhoushan, China. This is because the Iran War will reduce traffic through the Strait of Hormuz causing delays or diversions. Prices for marine fuel are up sharply, despite the fact that there are still daily offers on the market. This is because the Middle East conflict has curtailed fuel oil shipments. Spot prices for bunkers in Singapore have doubled since Israel and the U.S. began their war against Iran on February 28. This includes high-sulfur fuels, marine gasoils, and low-sulfur fuels. Market participants reported that the cost of refueling with low-sulfur fuel is now more than $1,000 a metric ton. The premiums, which are usually measured by fuel oil cargo prices, reached record highs Tuesday. They ranged widely and were well over $200. A trader based in China said that some ships are unable to refuel at the Singapore port because of the soaring prices for oil, which is being supported by the Iran War. He declined to give his name as he wasn't authorised to talk to the media. SELLERS Prefer Spot Offers Sources said that due to the high premiums on the spot market, most sellers are now offering their products as spot contracts. The executive declined to name the vessel because of commercial concerns. "There are some vessels that have been reluctant to fix bunkers in the past and are now looking for prompt supply," he said. They have no other choice than to wait and see if there are any available slots. Several?marine-fuel suppliers in Zhoushan, China's biggest bunker port, have also reduced their prices after the Chinese government asked companies to halt signing new contracts for refined fuel exports. Sources familiar with the situation said that although the restrictions don't apply to bunker sales bonded, the suppliers are rationing supply to prepare for further market tightness. Linerlytica's maritime analytics firm, Linerlytica has reported that the queue-to berth ratios at ports in Singapore and Zhoushan have increased. The ratio compares how many ships are waiting at an anchorage to the number that are currently at a berth. A higher ratio indicates congestion. Shanghai and Ningbo in China saw the ratio of queue to berth increase from 1.0 on 28 February to 1.4 by 7 March. Singapore's ratio remained at 0.6 for the same time period. (Reporting from Jeslyn Leh in Singapore and Ella Cao, Beijing; Additional reporting and editing by Sam Li and Tony Munroe)
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Shares of Balfour Beatty are expected to peak in 2026, as the company projects a profit growth of 20% on UK power orders.
The British construction company Balfour Beatty forecast a high-single digit increase in profit from operations by 2026, thanks to a record orderbook dominated by UK power projects including nuclear power. Balfour announced a 200 million pound share buyback and a 12% rise in its dividend for the full year to 14 pence. Early trading saw shares rise 12%, to a new record high. The company, which provides services for public and private sector clients in power, transportation, and defence sectors in the U.S., UK and Canada, stated that U.S. Tariffs would have a'relatively low impact on their business in 2025, and they were able to recover most of this through existing contract terms. The contractor's underlying profit from operations from earnings based businesses increased 16% to 293 million pounds (393.56 millions) in 2025, as strong U.S. construction construction offset cost âoverrunsâ at its?highways projects in Texas.
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Two drones crash near Dubai Airport as the Iran crisis continues to escalate
Four people were injured by two drones that crashed?near Dubai International Airport (DXB), according to the media office of Dubai. The attacks on infrastructure in the Gulf have continued for the 12th consecutive day, as the Iran Crisis has disrupted global air traffic. The media office of X posted that "Authorities confirmed that two drones were found a few minutes ago?in the vicinity (DXB) of Dubai International Airport." They added that air traffic was?operating normally. Two Ghanaians and one 'Bangladeshi' national were injured in the attack, while a?Indian national was moderately injured. Flight cancellations, rescheduling, and rerouting have been caused by the U.S. and Israel war on Iran. Most airspaces across the Middle East remain closed due to?missiles and drones concerns. The war has caused an energy crisis, which has led to a rise in fuel prices. UAE airlines such as 'Dubai's Emirates' and Abu Dhabi's Etihad' have resumed a few flights since the start of the crisis on February 28, but they're still operating below capacity. The attack on Wednesday marks a new 'hit' to DXB - the world's busiest airport in terms of international passengers, which handled almost 100 million last year.
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Dubai's recovery has boosted the opening of most Gulf stocks, but war risks are keeping investors cautious.
Investors remain wary about inflationary?and economic growth risks associated with the U.S./Israeli war against Iran. Pentagon and Iranian sources described the U.S.-Israel airstrikes as "the most intense" of the war. Global markets were betting that Donald Trump would try to end the conflict soon. The Strait of Hormuz has been effectively closed by the war -- a major route for approximately one-fifth of all global oil and gas flows. Producers have had to stop production as their storage tanks fill up, and energy prices are now soaring. Air Arabia's 5.6% rise in the index led to a 0.9% increase for Dubai's main index. Budget airline Air Arabia was about to end a five-session slide, after losing more than 20% over the previous five trading days. Emaar Properties, a blue-chip developer, rose by 1.2%. Abu Dhabi Commercial Bank, a 1% increase, grew 0.6%. After a series of declines, investors began to buy dips in the UAE markets. Emaar and Aviation stocks led the recovery, showing improved sentiments and a renewed willingness for risk following recent panic selling. Ahmad Assiri is a research strategist at Pepperstone. Abu Dhabi also showed a similar pattern. Saudi Arabia's benchmark stock index rose 0.4%. Al Rajhi Bank gained 0.9%, and Saudi Aramco added 0.6%. The International Energy Agency, a body that is responsible for releasing oil reserves, has proposed the biggest?release in history of its oil reserves due to possible supply disruptions. Assiri claims that the Saudi market is relatively stable. This is due to oil prices over $87 a barrel, and the exports through Yanbu, on the Red Sea. At a time when the Strait of Hormuz supplies are being strained. The Saudi market is in a much better position than that of its neighbours. The Qatari Index, which bucked the trend, fell more than 1%. This was due to a 3% decline in the Qatar National Bank, the Gulf's largest lender based on assets. The index in?Oman rose 0.2% and has risen over 32% this year. Assiri reported that the Muscat market experienced selective buying which allowed the index to overcome resistance and remain above 7,700. (Reporting and editing by Tomaszjanowski in Bengaluru)
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Avolta, a duty-free retailer, reports a lower annual revenue than expected
Avolta, a Swiss duty-free retailer, reported on Wednesday a?slightly?lower than expected annual turnover in a difficult environment. Avolta, which operates shops in airports, cruise liners, seaports, and other tourist destinations worldwide, reported a core revenue of 13.72 billion Swiss Francs ($17.63 billion) for 2025. This is up from 13.47 a year ago, but below analysts' expectations of 13.81 billion Swiss Francs according to a Vara Research?poll. In a press release, Chief Executive Officer Xavier Rossinyol stated that "even in a complex 'external' environment, such as the recent conflict affecting certain parts of Middle East, our size, diversification, and clear strategic directions give us confidence." The escalating 'Middle East conflict' has sent the global markets into a tailspin. It has also significantly dampened investors' economic optimism, as they fear that it will cause an oil price shock and raise inflation. The company confirmed its medium-term goals. It said it would propose a dividend?of 1.15 Swiss Francs per share for 2025. This is up from 1.00 Swiss francs an year ago.
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Analysts see a smooth transition after IndiGo's CEO quits
IndiGo shares rose Wednesday after the resignation of CEO Pieter Elbers. Analysts expected a smooth transition, despite the crisis last year. After a 21.4% decline since early December, when it cancelled thousands flights, the?stock increased as much as 3.0% on that day to reach 4,512.90. In a recent note, Jefferies stated that leadership transitions are usually smooth and backed by founder oversight. The brokerage cited operational stability amid the Middle East Crisis, clarity about summer schedules, and progress in?CEO successions as key factors for the near future. HSBC stated that the airline 'is not expected to change its strategy in a major way,? with Bhatia likely focusing on operational efficiency and boosting the airline's reputation. IndiGo, the company that controls about 65% of the market in India, one of the fastest growing aviation markets in world, was forced to cancel 4,500 flight in December because it failed to properly plan for "pilot rest and duty" rules. This left tens thousands of passengers stranded. Elbers was reprimanded by regulators later for "inadequate oversight of flight operations and crisis-management." Bhatia, in an internal memo describing his new role, referred to the December cancellations as the worst crisis in the 20-year history of the budget carrier. On Tuesday, the global airline stocks stabilised after U.S. president Donald?Trump stated that the war could be "over soon". Fuel is typically between 20-25% of airline operating costs. (Reporting and editing by Sumana Naandy in Bengaluru. Urvi Dugar is reporting from Bengaluru.
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New York Times Business News - March 11, 2019
These are the top stories from the business pages of the New York Times. ? The?story has not been?verified and the?report does not guarantee their accuracy. Boeing has said it will delay delivery of certain 737 Max jets while it fixes a wiring problem, but that the delay won't prevent it from meeting its sales goal for 2026 of 500?Max planes. YouTube has added a tool that allows government officials, candidates for political office and journalists to report videos where artificial intelligence is used to display their likeness. - 'USA Today has named Jamie Stockwell as the new leader of its Newsroom. She is a former editor for The Washington Post and The New York Times. (Compiled by Bengaluru newsroom; Editing by Sonia Cheema) - On Wednesday, the Trump administration plans to resume?the Global Entry Program. This comes just a few weeks after the program was paused because of a partial shutdown of the Department of Homeland Security. (Compiled by Bengaluru Newsroom; Editing done by Sonia Cheema).
The conflict in the Middle East may accelerate Europe's gas separation from Russia, says Vladimirov
The Iran war's natural gas price shock could accelerate Europe's decoupling with Russian energy while pushing the continent further into U.S. arms. Last week, an Iranian attack forced QatarEnergy to stop production, forcing the second largest liquefied gas exporter in the world. European benchmark gas prices soared by almost 50%. The European benchmark gas prices soared by nearly 50% as a result of the Iranian attack that forced?QatarEnergy, the world's second-largest liquefied natural gas exporter, to halt production last week. Qatar will only supply 4% of the gas imported by the European Union in 2025 according to the European Council. However, with this volume no longer available, the U.S. is now the largest gas exporter and producer. The U.S. could then use this leverage to force Europe to decouple from Russian gas. Since the Russian invasion of Ukraine, Western leaders have been trying to achieve this through sanctions.
This trajectory should not be altered by any temporary relaxation of U.S. oil sanctions during the war. The threat by Russian President Vladimir Putin to stop Russia's gas exports to Europe last week will also provide additional impetus to reduce this dependence. Russian gas accounts for about 10% of EU imports. The EU mandates that all Russian imports end by September 2027. However, legal ambiguities or loopholes may prolong the dependence on Russian Gas beyond 2028.
RUSSIA'S LONG-LASTING GRIP IN EASTERN EUROPE
Gazprom, a state-controlled Russian company, is the largest supplier of super-chilled fuels in Central and Eastern Europe and Southeastern Europe. The TurkStream pipeline system, which connects Russia and Turkey, is the main route for the Russian gas that flows into Europe. Central and Southern Europe remain structurally vulnerable, unlike Northern Europe which has rapidly diversified its energy operations through new LNG terminals. Russian pipeline gas is more commercially attractive due to limited storage, fragmented tariffs for transmission and poorly integrated markets.
The Americans had a very clear message at the Transatlantic Gas Security Summit in Washington, held just a few days before the start of the conflict, which was to accelerate the flow U.S. LNG in Europe's most vulnerable market.
NEW ENERGY FRAMEWORK To accomplish this, senior U.S. and European officials are focused on the new flagship project, the Vertical Gas Corridor, which links Greek LNG terminals to Bulgaria, Romania Moldova and Ukraine.
The Vertical Gas Corridor would fundamentally reorient Central European and Southern European trade flows towards Atlantic supply chains. This would lock in long-term LNG supplies and make the Balkans a frontier market for exporters. In order to support this initiative, U.S. gas exporters such as Cheniere and Venture Global agreed to supply 8 billion cubic meters (bcms) of gas per year through 20-year contracts signed with traders and governments from Central and Eastern Europe. This is roughly equal to 10% of U.S. exports of LNG to the EU by 2025.
These buyers, in turn, have signed non-binding deals with European intermediaries for the purpose of supporting the flow LNG through these areas. The willingness of European leaders to sign long-term contracts for gas after over a decade of talking about the need to cut fossil fuel consumption highlights Europe’s new reality. Energy security concerns are more important than decarbonisation.
The success of a Vertical Gas Corridor in the United States is not guaranteed. Tariffs across the border between Central and Southern European nations remain prohibitively expensive. Regional operators propose a new, "super-bundled", agreement which would allow suppliers the opportunity to reserve an entire corridor under a single contract.
There are also infrastructure bottlenecks. In order to accommodate large flows, underground storage facilities in Bulgaria and Ukraine will need to be upgraded. In addition, without EU financial support to cover the additional costs required for transmission system operators upgrade the grid, Russian Gas delivered via existing pipelines would remain cheaper and undermine diversification efforts. For the Vertical Gas Corridor?to function at scale, LNG from Turkey must flow north. According to my calculations based on data from Argus and Argus, the country has a large amount of underutilised regasification capability, which totals 58 bcm per year. This is enough to increase U.S. LNG supplies to Europe by approximately 70%. Around half of this capacity could be used to ship volumes through the Corridor towards Ukraine and Central Europe. However, in 'practice, Russian gas continues to occupy a large share of Turkish transit capacities through TurkStream. In a geopolitical environment that is becoming increasingly fractured, Turkey might not want to align itself with the interests?Europe or the U.S.
The U.S. has stated that its LNG exports are essential to Europe's industrial growth, economic security and its emerging infrastructure needs. And the conflict in Iran shows that this is likely correct.
Some might question whether it is wise to deepen this dependence, given the fact that the US has decided to continue the war in Iran even though they knew the possible disruptions to the global energy systems.
Europe has few options. It may be worth it to reduce Moscow's influence on the EU economies that are most vulnerable to economic and political pressure.
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(source: Reuters)