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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.
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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)
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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).
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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)
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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)
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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)
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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)
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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)
Royal Mail faces UK probe after missing delivery targets
The British regulator Ofcom announced on Friday that it will investigate whether Royal Mail's service obligations for 2024/25 have been met.
Royal Mail, the postal watchdog that oversees services, said that only 76.5% first-class mail was delivered in one working day and 92.2% second-class mail within three days. These are both well below the standards set by the watchdog.
Royal Mail Chief Operating Officer Alistair Cochrane stated in a press release that "we are actively modernising Royal Mail and while this effort is beginning to yield results, we still know there is more to be done."
Royal Mail was fined after it missed its delivery targets for 2023/24, 2022/23 and 2022/23.
The firm, which has been in business for over 500 years, has proposed reforms to the national single-price service obligation that applies to first- and second class services and also suggested the introduction of additional reliability targets.
Last year, the parent company of Royal Mail International Distribution Services, International Distribution Services, agreed to be acquired by Czech billionaire Daniel Kretinsky. The deal was delayed earlier this year, but is now expected to be completed in the second quarter 2025. (Reporting by DhanushVignesh Babu and Yadarisa Shabong in Bengaluru; Editing by Shailesh Kuber)
(source: Reuters)