Latest News
-
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.
-
Italy is preparing new measures to combat the spike in fuel prices amid fiscal worries
Officials said that the Italian cabinet would adopt new measures to reduce soaring fuel prices on Monday, amid growing concerns about their?fiscal impact. The increase in?energy prices and consumer costs due to the Middle East war has caused major problems for the Italian Government, which is trying its best to protect the purchasing power of households and energy-intensive industries. Officials who didn't want to be named said that the Italian cabinet would meet on Thursday, August 4, at 1530 GMT, to discuss a "new set of measures" focusing on diesel pricing. In March, Italy reduced the ad valorem tax on petrol and diesel in response to a sudden energy crisis triggered by Israel-Iran war. The measure was repeatedly extended and then?progressively reduced, until its expiration on July 3 at a cost of almost EUR2 billion (2.28 billion dollars). The European Commission and the IMF both criticised the reduction in excise duties, saying that Italy should have taken more targeted measures to protect the most vulnerable households. In a Monday statement, the industry ministry said that, on average, fuel prices at self-service stations on 'Italy’s road network are EUR1.982 for a litre of petrol and EUR2.185 per litre of diesel. This is up from EUR1.803 for petrol and EUR1.882 for diesel on July 3.
-
Official: Russians attack Ukraine's Mykolaiv Region and kill one person, damage vessels.
A local official reported that Russian drone attacks on port infrastructure were carried out in Ukraine's southern Mykolaiv region early on Sunday and Monday, killing one person. They also damaged three civilian vessels. Heorhii Reshetilov, acting regional governor, said via Telegram that a 48-year-old male had been killed in an attack on port infrastructure Monday morning. In a subsequent?statement, Ukraine's Seaports Authority said that the vessels were blockaded in the port since Russia's full scale invasion?in 2022. They have not been?carrying on commercial voyages. The authority for seaports said that one person died and other people were injured during the overnight strikes. However, it did not give the number of injured. The number of vessels that were attacked was not disclosed. The Russian Defence Ministry announced on Monday that Moscow had struck two ships carrying military cargoes in Mykolaiv. Russia has been bombarding the port infrastructure of southern Ukraine with drones and missiles over the past few weeks, including in Odesa. Ukraine has also increased its attacks on vessels in the Sea of Azov and Black Sea, mainly carrying fuel. This is part of an expanded?campaign to isolate Russia-occupied Crimea while undermining Moscow’s main revenue sources. (Reporting and editing by Tom Hogue, David Holmes and Anna Pruchnicka)
-
Document shows that India's MRPL is seeking crude through a tender, avoiding the Red Sea and Hormuz.
A tender document released on Monday showed that India's state-owned company Mangalore Refinery & Petrochemicals Ltd is looking to import oil through a spot tender. For the first time, the tender asked suppliers to avoid the Red Sea and Strait of Hormuz. The Houthis of Iran, who want to stop Saudi exports and expand the U.S./Iran conflict, have been disrupting Red Sea traffic off the coast of Yemen for the past week. In a bid document, MRPL stated that "Crude loading/transit through the Red?Sea or SoH must be avoided." The tender sought?upto 1 million barrels on a delivered basis between?August 25, 2016 and September 6, 2016. This is the first Indian refiner that has included such a clause when it comes to its spot crude import bids. The company had not awarded its previous oil tender. MRPL didn't immediately respond to a comment request. MRPL is taking a "precautionary approach" to avoid a possible?supply interruption along two of the most important maritime?oil trade /routes in the world, according to a source with knowledge of the situation. Source: The new clause will continue to be included in future import tenders, if the situation in the Middle East doesn't improve. MRPL is a'subsidiary' of the state-run explorer Oil and Natural Gas Corp. It operates a refinery that produces 300,000 barrels of oil per day in Karnataka, a southern Indian state.
-
Gdynia is Poland's modernist port city from the interwar period that has been granted UNESCO heritage status
Gdynia's centre, built almost entirely from scratch between World War I and World War II, has been added to UNESCO World Heritage List as the city celebrates a centenary. Gdynia, located north of Gdansk and Sopot (the seaside resort), was long considered a poor relation of those places. However, the UNESCO Award adds Gdynia to a list of 1,273 other sites, ranging from Australia’s Great Barrier Reef in Athens to the Acropolis. The UNESCO Award is given to a landmark, or an area that has been legally protected for its special cultural?or environmental value. Gdynia, a city in Poland that gained its independence from Russia, Prussia, and Austria-Hungary after 123 years partitioning between them is one of their most recognizable symbols. FISHING VILLAGE TURNS INTO GATEWAY TO WORLD "This 'is an honor for a?city that didn't look back but instead boldly looked forward -- a?city built of dreams and courage, a belief in Poland being able to create extraordinary things," Culture minister Marta Cienkowska said on X, a social media platform. Gdynia reflects also the challenges faced by the new state. It was created with a small stretch of Baltic coast and without a major port of its own. In order to gain access to the sea and the new world, Poland chose Gdynia as the location of its new gateway. The village had only 1,200 inhabitants in 1920. By 1939 the population of Gdynia had risen 100-fold as people from all over the country sought a new start and opportunity in the city. Gdynia is often compared to other cities shaped in interwar modernism. Gdynia, on the other hand, was built almost entirely from scratch, around a "new seaport", giving it a unique architectural character. It is also one of Europe's best examples of a city modernist constructed in just a single generation. The city centre is characterized by buildings that are streamlined with flat roofs and corners, horizontal windows, and balconies similar to ocean liners. This reflects the maritime identity of the city and its faith in progress and technology. The World Heritage Committee of UNESCO is made up of representatives from 21 countries. The D-Day Landings in Normandy are among the other sites that have been added to UNESCO's Heritage list. Reporting by Anna Lubowicka and Kuba Stezycki; Editing by David Holmes
-
Irish Continental's London share price jumps on $1.37 billion buyout by management
The?London?shares of?Irish Continental Group soared by more than?26%?Monday after the Dublin-listed maritime transportation group agreed on Friday to a EUR1.2billion ($1.37billion) management buyout that would essentially take it private. Bluefin Bidco is owned by four senior ICG management members: Eamonn Rothwell, David Ledwidge and Declan Freeman. They collectively own about 23,7% of ICG stock. According to the terms of the offer, ICG shareholders would receive EUR8 per share, which is a premium of 28.2% over the closing price for the stock on Friday. John B. ICG, Chair of the Independent 'ICG' Board, said: "The Independent ICG Board has conducted a thorough review of this acquisition and unanimously agrees that it provides compelling value to ICG shareholders." McGuckian stated in a statement.
-
Officials say Ukraine wants to have a prototype European missile defense system in place by the middle of 2027.
A senior official stated that the prototype of a European antiballistic system, codenamed Freyja, should be ready in the first half of next year. Kyiv is pushing its allies to "help deliver" a weapon that can down Russian missiles. Davyd Aloian is the deputy secretary for Ukraine's National Defence and Security Council, which oversees the Freyja Project. He said that an international steering comittee whose task it was to estimate the?research-and-development costs would be convening soon. Two weeks ago, leaders from ten European countries, including Ukrainian president Volodymyr Zelenskiy, and around a dozen defense manufacturers met in Paris to launch the antiballistic coalition. Aloian stated that "since we are working in such a short time frame, we have a very ambitious goal. We want to have a MVP (minimum-viable product) ready for the first half next year." "This is a prototype which can already show its first practical results." Ukraine's air defence system is made by the United States. It is the only weapon it has that can reliably shoot down Russian ballistic missiles which travel faster than sound. The political volatility, low stock and the long production cycle have all affected Patriots' supplies. Russia increased its ballistic attacks on Kyiv, the capital, and Odesa, a southern port city, this month. They launched dozens of missiles that Ukraine could not intercept due to a lack of interceptors. Ukraine is prepared to provide the Freyja Project with a launcher and an interceptor missile. Zelenskiy said this month that it was just a matter of testing. According to the Ukrainian leader, he hoped that the system would be operational within one year. Kyiv is expecting its allies, including the United States, to provide technology such as advanced radars and sensors and technical expertise in missile guidance and control. Eurosam, which makes the SAMP T interceptor system, as well as Leonardo Thales and Saab are among the defence companies who have so far joined the effort. Fire Point, the Ukrainian drone and missile manufacturer that developed the Flamingo missile, will be the leading industrial partner in the project. Last month, it announced a deal to supply radars for the project with German defence company Hensoldt. OPEN SYSTEM?ARCHITECTURE Freyja aims to be a cheaper alternative to Patriot, on which?many European countries rely. Other air defence systems such as the Franco-Italian SAMP/T or German IRIS-T have yet to prove their ability to down ballistic missiles. Zelenskiy likened the Freyja alliance to Lego, assembling pieces of equipment by leading defence industry leaders. Aloian explained that manufacturers were tasked with creating a framework of a system consisting of interchangeable components. He said that the overall logic of this system was an open architecture. "If Denmark wants the Freyja radar with a Danish-made Freyja system, that's no problem. It's fine if Sweden wants the Saab radar system. Aloian stated that he is considering the idea of creating a special entity, perhaps a fund, to channel all contributions, and ensure stable funding for the project. He hopes that the direct involvement of businesses in the project along with governments will also help reduce redtape. The coalition should not be political but practical. (Reporting and editing by Daniel Flynn, Alexandra Hudson and Yuliia dysa)
-
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.
Bousso: ROI-Europe is in for a long and cold winter, as fuel buffers are dwindling.
The energy supply in Europe is alarmingly vulnerable as conflicts in the Middle East, Russia and the Middle East tighten the global markets for heating oil and liquefied gas. This has pushed inventories down to dangerously low levels.
According to official statistics, natural gas and heating oil make up the majority of Europe's residential heating. Gas accounts for approximately 30% of heating demand, while heating oil makes up roughly 10%. Both fuel markets are likely to be under extreme strain in Europe after years of energy shocks.
Gas vulnerability in the region is largely a result of a dramatic?transformation in its energy mix following Russia's full scale invasion of Ukraine in 2020. Europe quickly replaced Russian pipeline gas 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 also slowed dramatically. Kpler reports that imports will be at 6.3 million tons in July. This is the lowest level since September 2024. Asia is a major factor. According to Kpler, LNG demand in the region has increased in recent months. A record 4 million tons from the U.S. was supplied in June and in July. These purchases diverted cargoes from Europe that would have otherwise been shipped. Many hoped that Qatar, which accounted for a quarter of the global LNG supply prior to the conflict when the Strait of Hormuz was briefly opened in April following the U.S./Iran interim agreement on peace, would soon resume exports. The renewed blockade in recent weeks due to escalating tensions between the U.S. and Iran has dashed those hopes.
Low inventories, weak imports, and a deteriorating outlook for?supply' are all contributing to a growing level of concern on the European market. Last week, benchmark European gas prices climbed above EUR60 per megawatt-hour. They surpassed their previous Iran War peak and reached their highest level since the beginning of 2023.
Prices will eventually rise, bringing more LNG to Europe. Even if imports improve in the next few 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, causing inventories to reach multi-year lows.
The European diesel inventory is at its lowest level since 2022. Stocks in the United States, which is the largest diesel exporter in the world, also fell to a 23 year low in May before?recovering around 10% in week ending July 17 according to the U.S. Energy Information Administration.
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 still a huge unknown how it will manage its production and future exports.
In July, Russia, the second largest diesel exporter by 2025 in the world, banned diesel exports after constant drone attacks from Ukraine 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 a day, or about 12% 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 are forcing consumers and business to reduce 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 on a factor that it cannot control, the weather.
A mild winter might provide "enough breathing space" to prevent a full-blown crise. A prolonged cold snap that increases heating demand would expose 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? 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.
(source: Reuters)