Latest News
-
Why is the Strait of Hormuz so important to oil?
Iranian TV reported on Sunday that the top security authority in Iran must decide whether or not to close the Strait of Hormuz. The measure was reportedly approved by parliament as a response to U.S. attacks on Tehran's nuclear facilities. Iran has threatened to close the Strait in the past, but never taken action. This would have restricted trade and affected global oil prices. Here are some details on the Strait. What is the STRAIT of HORMUZ? The Strait is located between Oman, Iran and the Gulf of Oman. It connects the Gulf of Oman in the north with the Arabian Sea to the south. The shipping lane is only 2 miles (3km) wide either way. Why does it matter? Around a fifth (or 450 million barrels) of all oil consumed in the world passes through this strait. Data from analytics firm Vortexa shows that between 2022 and the end of last month, 17.8 to 20.8 million barrels per day of crude oil, condensate, and fuels passed through the strait. Saudi Arabia, Iran and the United Arab Emirates export the majority of their crude oil via the strait. This is mainly for Asia. Saudi Arabia and the UAE have tried to find alternative routes to bypass this strait. The U.S. Energy Information Administration stated in June of last year that there could be unused capacity of about 2.6 million barrels a day (bpd), from existing UAE pipelines and Saudi pipelines, to bypass Hormuz. Qatar, one of the largest LNG exporters in the world, ships almost all its LNG through this strait. Fifth Fleet of the United States, based out of Bahrain, has been tasked to protect commercial shipping in this area. History of Tensions In 1973, Arab producers, led by Saudi Arabia and the United Arab Emirates (UAE), imposed an oil embargo against Western supporters of Israel during its war with Egypt. OPEC crude is now mainly purchased by Asia, not the West. In the past two decades, the U.S. has more than doubled the amount of oil liquids it produces. It is now one of the largest oil exporters in the world. In the Tanker War that lasted from 1980-1988, both sides tried to disrupt the other's exports. A U.S. Warship shot down a Iranian airliner in July 1988. Washington claimed it was an accident, while Tehran said that the attack was deliberate. In response to U.S. sanctions and European ones, Iran threatened in January 2012 to close the Strait. In May 2019, four vessels, including two Saudi oil tanks, were attacked near the UAE coast outside the Strait of Hormuz. Iran seized three vessels in 2023, one in 2024 and two in 2023, near or at the Strait of Hormuz. Some of these seizures were made after the U.S. seized tankers associated with Iran.
-
Bangladesh receives offers for 50,000 T of wheat purchased through tender, traders claim
European traders reported that the lowest price offered by Bangladesh's state grain buyer in a tender to buy and import 50,000 tons of wheat which ended on Sunday was $275 per ton CIF. Traders said that traders believed the offer to be from Cereal Crops. They added that other offers are being considered, and no purchase yet has been made. The other companies who participated in the tender, with their price offers for a ton CIF liner, were: Agrocorp, Aston, JK International, Louis Dreyfus, Orexim Trading, Arista Trading, and JK International. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. Bangladesh does not usually make decisions immediately about the purchase of wheat. It can take some confirmation. CIF terms cover ocean shipping costs and ship unloading. The contract is signed 40 days later. The wheat can come from anywhere in the world except Israel, and will be shipped to two ports: Chittagong & Mongla. (Reporting and editing by Helen Popper; Michael Hogan)
-
Minister says Turkey hopes to hold 5G auction in August
The Turkish transport and infrastructure ministry said that it hoped to conduct a 5G network tender in August. It also stated that mobile communication services were expected to begin next year. In an Istanbul press briefing, Minister Abdulkadir Uraloglu said: "I believe we will conduct this tender in August, if there aren't any issues." He added: "Instead covering the whole country in the first phase, I believe we will cover the densely-populated provinces (first), and roll out this gradual process within the program, as was the case with 4.5G." Uraloglu, when asked about the impact of the conflict between Israel and Iran on the aviation industry, said that Turkish airlines currently have seven civilian aircraft in Iran and four more in Iraq because of the closure of airspace. We are monitoring this through our Foreign Ministry and MIT (intelligence service). "We and the other countries concerned could not take this risk, given that air traffic in this area is extremely intense," Uraloglu stated. He added: "At our first opportunity, we will bring them home." The planes, he explained, belonged to Turkish Airlines as well as its subsidiaries AJet, Pegasus Airlines, and Tailwind Airlines. (Writing Tuvan Gumrukcu, Editing Hugh Lawson).
-
FedEx CEO informs staff that Frederick Smith, founder and executive Chairman of FedEx, has passed away.
FedEx Corp.'s former CEO Frederick Smith has passed away, according to a memo posted by the CEO Raj Subramaniam on the company website. Smith founded the global delivery conglomerate in the 1970s with more than 12 planes. Smith, born in 1944, was the executive chairman of FedEx until recently. He focused on issues of global significance, such as sustainability, innovation, and public policy. Subramaniam succeeded Smith as FedEx CEO in 2022. Subramaniam was the operations chief at that time. "Fred was much more than the founder of a great company and a pioneer in an industry. Subramaniam wrote in a memo to employees that "Fred was more than just the founder of our great company and an industry pioneer." Smith, a former officer of the U.S. Marine Corps who served in Vietnam, launched Federal Express with 389 team-members and 14 small aircraft that flew 186 parcels from Memphis to 25 U.S. city. According to its website, FedEx's operations include 705 aircraft and more than 200,000 vehicles. It also has about 5,000 operational facilities. FedEx employs more than 500,000 people worldwide who handle 17 million shipments per day. (Reporting and editing by William Mallard, Jamie Freed, and KanjyikGhosh)
-
After the US attack on Iran, airlines continue to avoid Middle East airspace
FlightRadar24 reports that airlines continued to avoid the Middle East after the U.S. strike on Iranian nuclear sites on Sunday. Traffic in the area was already skirting the airspace due to recent missile interchanges. FlightRadar24 posted on the social media platform X that "Following US strikes on Iranian nuclear sites, commercial traffic is operating in the region as it has been since new airspace restriction were put in place last week," The website of the company showed that airlines did not fly in airspace above Iran, Iraq and Syria. The airlines have chosen to fly via other routes, such as the north via the Caspian Sea and south via Egypt and Saudi Arabia. This is despite higher fuel costs and crew costs. A growing number of conflict zones around the world are a threat to air traffic. Since Israel's strikes on Iran began on June 13, airlines have suspended flights for destinations in those countries. However, there have been some flights that evacuated Israelis from the country and others that brought them home. El Al Israel Airlines, the largest carrier in Israel, and Arkia announced on Sunday that they would suspend rescue flights, which allow people to return to Israel, until further notice. Israel's airports authorities said that the airspace of Israel was closed to all flights. However, land crossings between Egypt and Jordan were still open. The Japanese Foreign Ministry announced on Sunday that it had evacuated overland 21 people from Iran to Azerbaijan, including 16 Japanese citizens. The ministry said that this was the second evacuation of this kind since Thursday, and it will continue to do so if needed. New Zealand's Government said on Sunday that it would be sending a Hercules transport plane to the Middle East to be ready to evacuate New Zealanders. In a press release, it said that government personnel along with a C-130J Hercules plane would depart Auckland on Monday. It said that the plane would need a few days to arrive in the region. It added that the government is also in discussions with commercial airlines about how they can help. (Reporting from Sydney by Jamie Freed; Additional reporting in Jerusalem by Steven Scheer, Tim Kelly and Sam McKeith; Editing by SonaliPaul)
-
After the US attack on Iran, airlines continue to avoid Middle East airspace
FlightRadar24 reports that airlines continued to avoid the Middle East after the U.S. strike on Iranian nuclear sites on Sunday. Traffic in the area was already avoiding the airspace due to recent missile attacks. FlightRadar24 posted on the social media platform X that "following US attacks on Iranian nucleonic facilities, commercial traffic is operating in the same way as before new airspace restrictions took place last week," The website of the company showed that airlines did not fly in the airspace above Iran, Iraq and Syria. The airlines have chosen to fly via other routes, such as the north via the Caspian Sea and south via Egypt and Saudi Arabia. This is despite higher fuel costs and crew costs. A growing number of conflict zones around the world are prone to missile and drone barrages, which pose a serious risk to air traffic. Since Israel's strikes on Iran began on June 13, airlines have suspended flights for destinations in those countries. However, there have been some flights that evacuated Israelis and others that brought them home. The Japanese Foreign Ministry announced on Sunday that it had evacuated overland 21 people from Iran to Azerbaijan, including 16 Japanese citizens. The ministry said that this was the second evacuation of this kind since Thursday, and it will continue to do so if needed. New Zealand's Government said on Sunday that it would be sending a Hercules transport plane to the Middle East to be ready to evacuate New Zealanders. In a press release, it said that government personnel along with a C-130J Hercules plane would depart Auckland on Monday. It said that the plane would need a few days to arrive in the region. It added that the government was in discussions with commercial airlines about how they could help. (Reporting from Sydney by Jamie Freed; Additional reporting in Tokyo by Tim Kelly and Sam McKeith; Editing by SonaliPaul)
-
US B-2 Bombers, Bunker-Busters and Alternatives
On Saturday, the U.S. Air Force used stealth bombers B-2 Spirit to attack Iran's nuclear facilities. Donald Trump announced on Saturday that three Iranian nuclear sites had been struck by a "very effective attack". He added that Fordow, the crown jewel of Tehran’s nuclear program, was no longer there. The B-2 is America's most sophisticated strategic weapon platform, capable of entering sophisticated defenses and delivering precise strikes against hardened targets like Iran's network of buried nuclear research facilities. B-2 SPIRIT Specifications: The U.S. B-2 is the most expensive aircraft in history, costing $2.1 billion per unit. The bomber was made by Northrop Grumman and featured cutting-edge stealth technologies. Production began in the late 80s, but the fall of the Soviet Union curtailed its progress. After the Pentagon's planned program for acquisition was cut short, only 21 bombers were produced. With a range of 11,112 km (over 6,000 nautical miles), the bomber can strike anywhere in the world from U.S. continental bases. The B-2 is able to reach almost any target in the world with aerial refueling. This has been demonstrated on missions from Missouri, Afghanistan, Libya, and now Iran. The aircraft's payload of over 40,000 pounds (18.144 kg) allows it to carry both conventional and nuclear weapons. The internal weapons bays of the bomber are designed to keep stealth while allowing for large ordnance, which may include two GBU57A/B (Massive Ordnance Penetrator), as well as a precision-guided 30,000-pound "bunker-buster" bomb. According to reports, six bunker-buster bombs have been used at Iran's Fordow Research Site. Advanced automation systems allow the B-2 to operate with a two-pilot crew, reducing personnel requirements and maintaining operational effectiveness. Stealth technology on the B-2 includes radar-absorbing materials, as well as angular design elements that reduce detection by enemy air defence systems. The radar cross-section of the B-2 is said to be similar to that of a small avian, making it virtually invisible to conventional radar. MASSIVE ORDNANCE PENETRATOR (MOP), The MOP, which weighs 30,000 pounds, is the largest conventional bomb in U.S. military arsenal and was specifically designed to destroy hardened underground bunkers. The B-2 can only carry one or two MOPs on a mission due to its massive size. However, it has an unmatched ability to penetrate bunkers. Its length of 20.5 feet (6.25 m) and precision targeting system, which uses GPS guidance, allow for precise strikes on specific underground installations. The weapon's ability to penetrate concrete up to 200 feet makes it an effective weapon against even the most secure underground installations. ...............? Joint Direct Attack Munitions, or JDAMs, provide precision conventional strike capabilities to the B-2 against fixed targets. The GPS-guided weapons are able to be used in large quantities, and the bomber is capable of engaging multiple targets simultaneously with high accuracy. Joint Standoff Weapons (JSOWs) increase the engagement range of aircraft while maintaining stealth during approach. The B-2 can use glide bombs to attack targets outside of heavily protected airspace boundaries. Joint Air-to-Surface Standoff Missiles offer precision long-range strike capabilities with their stealth features. The JASSM-ER extended-range variant allows for strikes against targets more than 500 miles (805 kilometers) away. NUCLEAR PAYLOAD CAPACITIES The B-2 Spirit is a crucial component of America's nuclear triad. It can deliver strategic nuclear weapons with stealth, precision and accuracy. The aircraft is capable of carrying up to 16 nuclear bombs B83. (Reporting and editing by Margueritachoy and SonaliPaul)
-
Eight people killed in hot-air balloon crash on Brazilian coast
State officials reported that eight people died after a hot air balloon crashed in the state of Santa Catarina on Saturday. The balloon was carrying 21 passengers including the pilot. According to the state fire department, the tourism balloon caught on fire in the early morning hours and crashed in a forest in the city Praia Grand. In Brazil, the city is one of the most popular places for tourists to go on balloon rides. Santa Catarina estimates that between 25 and 30 hot air balloons leave daily from Praia Grande during peak season. Most of these balloons can transport up to 25 passengers. According to the fire department, thirteen survivors were transported to hospitals nearby. According to a spokesperson for the fire department, CNN Brasil reported that none of these survivors' lives were in danger. In a message on X, Brazilian president Luiz Inacio Lula Da Silva expressed his solidarity with the families who lost loved ones, and said that the federal government was available to the local and state authorities involved in the case. (Reporting and editing by Diane Craft, Franklin Paul and Andre Romani)
What global business leaders have met with Chinese President Xi Jinping?
On Friday, the Chinese president Xi Jinping met with some of the biggest business leaders in the world.
The Chinese leader has met with chairmen, CEOs, and company presidents from major international firms that operate in China for the second consecutive year after the China Development Forum (an annual business conference) held over the weekend.
The meeting last year was focused on the executives of U.S. businesses doing business in China. This year, there were more than 40 participants from around the world.
RAY DALIO BRIDGEWATER ASSOC.
Billionaire Dalio is the head of one of the largest hedge funds in history. He's considered an expert on China investing.
BILL WINTERS is the CEO of STANDARD CHARTERED
When China lifted the foreign ownership cap in 2020, the bank was the very first to establish a securities firm that was owned by foreigners.
STEVE SCHWARZMAN is the CEO of BLACKSTONE GROUP
Schwarzman, who was to meet with Xi before the meeting, said Blackstone, which is the largest alternative asset manager in the world, would "play a proactive role" in promoting U.S. China economic and trade collaboration.
PAUL HUDSON is the CEO of SANOFI
The French drugmaker announced in December last year its largest investment to date in China, a base for insulin production in Beijing worth 1 billion euros ($1.1 billion).
AMIN NASSER PRESIDENT AND CEO SAUDI ARAMCO
Saudi Aramco announced two joint ventures in the refining, petrochemical and state oil industries of China. Middle Eastern energy company has recently increased cooperation with Chinese private companies.
CRISTIANO aMON, PRESIDENT and CEO of QUALCOMM
Qualcomm, a chip-making giant, derived 46% its revenue from its latest fiscal year's customers with headquarters in China.
RAJESH SUBRAMANIAM, PRESIDENT & CEO, FEDEX INC.
FedEx celebrated its 40th anniversary in China last year, where it employs nearly 11,000 people and facilitates international shipping to Chinese customers.
PASCAL SORIT, CEO of ASTRAZENECA
AstraZeneca is AstraZeneca’s second largest market. Last week, the company announced that it would spend $2.5 billion to build a second research and development center in Beijing.
MIGUEL ANGEL BORREGO is the CEO of THYSSENKRUPP.
Decarbon Technologies, a segment of the German industrial giant, has expressed its intention to continue investing in China’s green energy transformation.
BELEN GARIJO is the CEO of MERCK
The company, which makes drugs, lab equipment, and semiconductor chemicals, had a large presence in China. Its annual sales accounted for approximately 3 billion euros.
OLA KALLENIUS, CEO, MERCEDES-BENZ
Mercedes' biggest market is China, and it also has one of the largest manufacturing facilities. In recent years, local EV makers have put pressure on the German automaker. The company says it will continue to invest heavily in China to protect and grow their market share in the coming years.
OLIVER ZIPSE is the CEO of BMW
BMW's share is also under pressure in China, a key market, as local automakers gain market share with cheaper EVs. This forces their European competitors to slash price.
GEORGES ELHEDERY is the CEO of HSBC HOLDINGS
Elhedery, a former finance chief at HSBC, was promoted last year to CEO. He became the bank's first Mandarin speaker.
TOSHIAKI HIGASHIHARA, EXECUTIVE CHAIRMAN, HITACHI LTD.
Hitachi Ltd. is concerned about the pressure on its prices to drop in China, as economic growth slows.
AKIO TOYODA - CHAIRMAN TOYOTA MOTORS
Last month, Toyota announced that it would establish a company owned by the Lexus brand in Shanghai for the development and production of EVs.
KWAK Noh-Jung, CEO of SK HYNIX
Memory chip manufacturer has significant manufacturing facilities in China. These include Wuxi, Dalian and Chongqing.
KLAUS ROSENFELD, THE SCHAEFFLER GROUP
Schaeffler Greater China is an important business partner and supplier to the automotive and industrial sector in the second largest economy of the world.
HUBERTUS BAUMBACH is the CEO of BOEHRINGER INGELHEIM
Boehringer Ingelheim China employs about 4,000 people and focuses on biopharmaceutical manufacturing, animal health, and human pharmaceuticals.
DAVID A. RICKS is the CEO of ELI LILLY
Eli Lilly has received approval for the weight-loss drug, tirzepatide, in China. The company will expand its Suzhou manufacturing facility to produce this in-demand drug along with other pipeline drugs.
JON ABRAHAMSSON, RING, CEO of INTER IKEA GROUP
IKEA China serves 90 million customers each year. The company has stated that it sees plenty of room for growth in a market with over 1.4 billion consumers.
VINCENT CLERC is the CEO of AP MOLLER – MAERSK
In 1924, the Danish shipping giant called in at Shanghai for the first time. Today it has over 18,000 employees working in China.
ROLAND BUSCH PRESIDENT AND CEO of SIEMENS
Siemens, a German industrial conglomerate, recently reported a tepid demand on its main market in China. This was coupled with an increase in competitive pressures.
ALBERT BOURLA is the CEO of PFIZER
Pfizer invested more than $1.5 billion into its Chinese operations. The company is focusing on oncology drugs, vaccines and rare diseases.
EMMA WALMSLEY is the CEO of GSK
After repairing its relationship with local officials after a corruption scandal a decade ago, the global biopharma company is increasing its dealmaking activities in China.
JAY Y. LEE, CHAIRMAN SAMSUNG ELECTRONICS
In 2024, China will surpass the United States in terms of the firm's largest market thanks to the strong sales made by memory chips. (Reporting and editing by Mark Potter. Casey Hall)
(source: Reuters)