Latest News
-
Why is it so simple for Iran to close the Strait of Hormuz?
Iran, following through on a long-standing threat, has closed the Strait of Hormuz in retaliation to U.S. and Israeli strikes. This waterway is vital, as it carries a fifth of all global oil supplies. The United States has said that it could consider escorting ships through the Strait of Hormuz, which would be very difficult to secure, as the Houthis from Yemen proved last year when they disrupted Red Sea shipping. According to United Nations data, about a fifth of global oil and LNG normally passes through the Strait. Traffic has decreased by 97% since February 28 when the U.S./Israeli war on Iran began. Why has Iran cut off the Strait now? The threat of cutting off the Strait was made before, when a commander from Iran's Islamic Revolutionary Guard Corps said in 2011 that it would be "easier to drink a glass water". The Guards warned that they would close the border in the past, especially during tensions about sanctions and Iran's nuke programme in 2016-2018, and also during Israeli and U.S. attacks in June of last year. Analysts have viewed the closing of the Strait of Hormuz as a last resort due to the strategic changes that it could cause among Iran's adversaries and the possibility of retaliation by its own energy sector. This equation has been changed by the attack on Iran that began on 28 February with the death of its supreme leader. Iranian officials have described the war as a existential one, with the Guards taking over the strategy. What is at stake? Kuwait, Iran Iraq, Qatar, and the United Arab Emirates are oil and gas producing countries. The only sea exit is the narrow passage of water that connects the Gulf of Oman with the Gulf of Iran. On Monday, oil prices briefly rose to their highest levels since 2022. According to the United Nations, high oil prices may trigger another cost of living crisis like what happened in 2022 after Russia invaded Ukraine. A prolonged conflict may also lead to a fertilizer shortage, putting the global food supply at risk. According to Kpler, about 33% of all fertilisers in the world, including ammonia and sulphur, travel through the Strait. A prolonged war could cause fears of an economic crisis in the world similar to the ones that followed the Middle East oil shocks of the 1970s. Why is it so difficult to secure the streit? According to shipping broker SSY Global, the shipping lanes are only two nautical miles wide. Ships must turn around and face Iranian islands as well as a mountainous coastline that offers cover for Iranian forces. Tom Sharpe said that although the conventional navy of Iran has been largely destroyed, there are still many options available to the Guards. These include fast attack craft and mini submarines. They also have mines as well as jetskis with explosives. According to the Centre for Information Resilience (a non-profit group of researchers), Tehran is able to produce 10,000 drones per month. Sharpe stated that it would be possible to protect three or four vessels a day in the strait using seven or eight destroyers as air cover. However, this would only be feasible for a short time, depending on the reduction of the mini-submarine threat. To sustainably do so over months, however, would require additional resources. Adel Bakawan of the European Institute for Middle East & North African Studies said that even if Iran were to lose its ability to deploy ballistic rockets, drones, and floating mines, there would still be a danger from suicide attacks. Kevin Rowlands, Editor of the RUSI journal at the Royal United Services Institute, explained that if the war continues for several weeks, an escort would be formed. He said that "the world needs oil flowing through the Gulf and there are plans in place to put protective measures in place." What have the US and other countries promised? On March 3, President Donald Trump stated that the U.S. will provide protection for oil tankers through the Strait of Hormuz, but attacks have already occurred and very little has gotten through. He said that he also ordered the United States Development Finance Corporation (USDFC) to provide insurance and guarantee for shipping companies. Emmanuel Macron, the French president, said that several European countries as well as India and?other Asian nations were planning a mission to 'provide protection. He said that such a mission could only be carried out once the conflict is over. France has deployed a dozen navy vessels, including an aircraft carrier strike group to the Red Sea, the Eastern Mediterranean and possibly the Strait of Hormuz. A spokesperson for the British government said that British Prime Minister Keir starmer had spoken with the German and Italian leaders on options to support commercial shipping through the Strait. "We are looking at various options," General Caine said to reporters on Tuesday at the Pentagon without giving any details. WHAT HAPPENED AT OTHER SHIPMENT CHOKEPOINTS? Yemen's Houthis - a group allied to Tehran, but with a much smaller arsenal than Iran - managed to close down the majority of traffic through the Red Sea, Bab al-Mandab strait, and on the way to the Suez Canal, for over?two years despite the protection provided by U.S.-led forces. The majority of shipping companies still use a much longer route via southern tip Africa. Danish shipping company Maersk announced that it would return to the Suez Route in phases starting January. The EU-led force that countered piracy off the coast of Somalia has had more success than Iran's Revolutionary Guards, but they were fighting against forces much less well-equipped. AREN'T THERE OTHER WAYS TO USE THE STRAIT? The UAE and Saudi Arabia are looking for ways to bypass this strait. They have built more oil pipelines. These alternatives are also not operational at the moment. An attack by Houthi militants on a Saudi east-west pipeline in 2019 proved that they were vulnerable. (Additional reporting by Rene Maltezou, Kate Holton and Charlie Devereux, Writing by Angus McDowall and Timothy Heritage, Editing by Timothy Heritage).
-
Sources: Colombian ministers are now in Caracas following the postponement of a presidential meeting.
Two sources familiar with the matter said that?Colombia’s foreign and defence ministers traveled to Caracas, Venezuela, on Friday after a postponement of the meeting between a?Colombian president Gustavo Petro and a?acting president Delcy Rodriquez. This was the first bilateral meeting at the presidential level that Rodriguez had since taking power after her predecessor was ousted by the United States. The meeting is likely to focus on bilateral trade which Petro will close at the end of August. They are also expected to discuss energy cooperation, such as an agreement reached this week for the repair of a damaged portion of a binational gas pipeline, allowing Bogota import natural gas from its neighbor. Since the January raid in which President Nicolas Maduro was captured, the administration of U.S. president Donald Trump has supported the efforts of Rodriguez, the former vice president, in attracting investors to the oil and mining sector and stabilizing the country. Trump has repeatedly praised Rodriguez for her cooperation. Rodriguez has also welcomed U.S. secretary of interior and energy as well as potential investors to Caracas. The two countries have now formally restored diplomatic relations. The Trump administration has quietly built a legal case against Rodriguez despite her outward cooperation. This is to increase its leverage with Caracas. Petro, who enjoyed a good relationship with Maduro before, has repeatedly fought with Trump. The two men, however, were both positive following a face to face meeting in Washington, last month, and they had a friendly phone call on Thursday. They discussed the economy near the Venezuelan-Colombian borders. Trump has repeatedly asked Colombia for more cooperation in the fight against drugs trafficking. He has also accused Petro of being a "illegal drug leader" without any evidence. Petro, meanwhile claims that record drug seizures occurred during his tenure. He also says that deadly strikes against alleged drug ships amount to war crime. Colombia and Venezuela share a deep history?and culture, particularly in border regions where many families are bilingual. Colombia had a surplus of $973.4 millions in trade with Venezuela in 2025 after?exporting $1.07 billion worth of goods such as food, tobacco and chemicals. Imports of iron and steel, paper and fertilizer totaled $98,3 million. The two leaders were scheduled to meet at a border crossing between the Colombian city of Villa del Rosario, and the Venezuelan village Tienditas. However, the meeting was postponed late Thursday night due to "force majeure," which is a term that means extraordinary or unforeseeable events. The countries did not give any details, but said they would reschedule the meeting soon. The Colombian energy ministry announced Thursday that the Venezuelan state oil firm?PDVSA would repair the Antonio Ricaurte pipeline which has been inactive since years. The pipeline is 225 km (140 mi) long and can transport 500 million cubic feet. (Reporting and writing by Julia Symmes Cobb, with additional reporting by Nelson Bocanegra)
-
Sources say that the net loss of Germany's Deutsche Bahn railways has increased to $2.6 billion.
Sources told Friday that the net loss of Germany's Deutsche Bahn, which is battling with chronic delays & outdated infrastructure, grew to 2.3 billion euros ($2.6 billion) in last year due?to problems within its long-distance unit. Sources familiar with the figures who spoke under condition of anonymity as they are still confidential said that the division was forced to reduce its value 'by 1.4 billion euro' due to the persistent delays affecting the white ICE trains. A spokesperson for Deutsche Bahn declined to comment, pointing to a 'press conference on the company's results scheduled for?March 27,' The sources claimed that the operating profit (EBIT), or earnings before interest and taxes, was 300 million euros. The company's loss in 2024 was around 1.8 billion euro. Deutsche Bahn is undertaking a multi-billion euro project to upgrade its aging main line, which often involves closing entire sections of the lines for several months. Renovations in 'its infrastructure division' have affected a subsidiary of 'the -train company, as the company is now liable to compensate passengers for?late trains. It is also expected that the subsidiary's growth will be slower, as fewer people are willing to travel by train. Instead, they prefer to use their cars or planes to avoid delays.
-
Air China to resume weekly flights between Beijing and Pyongyang: tour operator's founder
Air China will resume weekly flight services from Beijing to Pyongyang, the capital of North Korea, from 'March 30th onwards. When the COVID-19 outbreak broke out in 2020, cross-border flights and trains between China and North Korea had to be halted. Rowan Beard of Young Pioneer Tours, which has done business in North Korea, said that the return of Air China and the Beijing-Pyongyang International Train is a sign that tourism will be returning sooner than expected. He cited his company's communications with the airliner. Air China didn't immediately respond to an?request for a comment outside of?business hours. Young Pioneer Tours, a specialist tour operator, is one of only a few operators who are allowed to organize group tours from Beijing for Western tourists visiting North Korea. North Korea does not allow independent tourism. China and North Korea resumed two-way passenger trains between the two countries on Thursday, with the first train departing Beijing for Pyongyang arriving at North Korea's capital?on Friday afternoon. Beijing-Pyongyang is operated four times per week, while a shorter route between the northeastern Chinese city Dandong and Pyongyang runs daily in both directions. Travel agencies organising trips in the country say that North Korea is mostly closed to foreign tourism. There are a few exceptions - mainly for Russian tour groups with restricted arrangements. Beijing considers the two countries as "friendly neighbours", and the revival of the train link will facilitate people-to-people interactions, trade and economic collaboration between them. Reporting by Beijing Newsroom; Editing by Louise Heavens
-
Trump is considering loosening Jones Act rules for shipping
U.S. President Donald Trump told Fox News that he is 'looking into'?loosening the?shipping regulations under the Jones Act. He said in an interview aired Friday that he will 'look at it, but he did not give any...other details. Trump stated in an interview with Fox News Radio’s "The Brian Kilmeade show" recorded on Thursday evening, "We'll look, we'll look at everything and it's going to work out." Trump talked about military plans for 45 minutes, claiming that the U.S. The military has not yet targeted Iran's infrastructure, or its uranium stockpile. When asked about U.S. plans to take Iran's Kharg Island, Trump replied that it was not a priority but he might change his mind. (Reporting and writing by Susan Heavey, Caitlin Malone, Caitlin Webber)
-
Sources: China relaxes BHP iron-ore ban for one weeks
Sources said that China will lift a ban on BHP's Jimblebar Fines, an Iron Ore?product until the next week, only a day after Beijing increased restrictions against its third largest supplier. China Mineral Resources Group (the state-run buyer of iron ore) told domestic steelmills they could take delivery of Jimblebar fins already in ports for about a week. Three sources familiar with the situation, who spoke on condition of anonymity because the issue was sensitive, confirmed this. Steelmakers are the only ones who will be affected by this exception, and not traders. CMRG banned steelmakers and traders from buying Jimblebar fins in September. It has gradually expanded these restrictions, including this week as it negotiates BHP's supply contract for 2026. Iron ore prices reached a two-month high on Friday as traders feared further bans could limit the iron ore supply at ports. The temporary reprieve highlights CMRG's?challenge? in its mission to reduce prices, when its primary tool?to date is to remove supply from the market. One of the sources said that "the move is to reinin iron ore price rally." CMRG and BHPB did not respond immediately to requests for comments outside of normal working hours. Louise Heavens, News (Reporting)
-
Before sanctions eased, Russian oil exports were slowed by thick ice and drone attacks in Ukraine.
Data released on Friday showed that a barrage of Ukrainian drone strikes against Russia's Black Sea oil export facilities as well as severe storms and ice conditions in Baltic Sea affected Russian oil exports. The United States issued a waiver on Thursday for countries to purchase sanctioned Russian crude oil and petroleum products that were stranded in the sea. This was done to stabilize global energy markets, which had been roiled by war with Iran. The easing of U.S. sanctions may not have a major impact on Russia's oil production due to the drone attacks and the bad weather. The Russian oil supply through the Druzhba pipe via Ukraine, to Hungary and Slovakia remains halted after what Kyiv claims was an attack on the pipeline by Moscow?on January 27, According to LSEG's?ship-tracking?data, Russia's total crude oil exports between March 1-12 decreased by 14% compared to the same period last year to 3.6 millions barrels per day. The data revealed that exports from Russia’s Far East increased by a quarter over the period, to around 770,000 bpd. According to three sources, the Black Sea port Novorossiysk was running 10 days behind schedule due to persistent'storms' and a 'drone attack. One of these attacks forced a suspension in loadings at the beginning of this month. After a drone attack on the Sheskharis Terminal on March 2, Novorossiysk re-started oil transshipment on?tankers. The pace of loading is slow, however, because the port is often forced to stop operations and move the tankers from the berths, due to the threat drone attacks. (Reporting and editing by Susan Fenton; reporting by Nerijus Adomiaitis)
-
Saudi Arabia reduces oil production by 20% to 8,000,000 bpd amid Iran War, sources claim
Two sources have told 'that the top oil exporter Saudi Arabia cut its oil production by 2 million barrels a day, to 8 million bpd. This was after it reduced output from two major offshore fields in response to the 'Iran -war. Middle East Gulf oil companies have been forced to stop large volumes of production because of the blockage of the Strait of Hormuz - a narrow waterway that connects Iran with Oman - since U.S. airstrikes against Iran began on February 28. Iran said that the world must prepare for oil price?at $200 per barrel. One source, who declined to be identified, said that Saudi Arabia was routing more oil towards Yanbu, on the coast of the Red Sea, to avoid the Strait. However, the production has dropped to 8 million bpd since the offshore fields Safaniya and Zuluf were closed. One source reported that Saudi Arabia's production had dropped to less than 8 million bpd. The two offshore fields produce more than 2 million bpd, mainly of heavy and medium-heavy crudes. Meanwhile, the pipeline to Yanbu takes mainly light crude. Saudi Aramco, the state oil company, declined to comment. Saudi Arabia's production has dropped from 10.882 to 8.8 million barrels per day, a significant drop compared to February when it produced 10.882 and supplied?10.111 to the market. The February production boost was a contingency measure in case a U.S. attack on Iran disrupted Middle East supply, sources said at the time. In a report published on Thursday, the International Energy Agency said that Middle East Gulf nations including Iraq, Qatar and Kuwait, as well as the United Arab Emirates (UAE)?and Saudi Arabia had cut?total production of oil by at least 10 million bpd. It added that these losses would continue to grow if shipping flow was not quickly restarted.
Kenyan meat exporters hit by Middle East conflict as Ramadan shipments slump
Kenyan meat exports to the Middle East have been reduced by a massive increase in air freight prices, which has caused shipments to be halted.
Nicholas Ngahu is the chief executive of Kenya Meat and Livestock Exporters Industry Council. He said that the Middle East was Kenya's primary market for meat exports. The United Arab Emirates account for 40-60% of all shipments.
Exports of fresh chilled meat, such as beef, lamb, mutton, and goat, are only allowed to reach Abu Dhabi and Dubai in limited quantities.
Ngahu stated that "we are doing below 15 percent of our normal exports and now, with Ramadan approaching, we are doing much less than 5 percent of what we should be doing."
AIR FREIGHT CHARGES SURGE
Kenya sends approximately $2.3 million worth meat and animal products every week to the Middle East.
Dennis Muraya (Director of Konza Clearing Agency) said that most airlines in the region have cut back on operations. This has forced exporters to use expensive cargo charters for flights into the UAE.
Muraya explained that "we usually pay $1.50 to $1.50 per kilogram." "At the moment, we are paying as much as $3.50 to $3.50 for a kilo."
He said that airlines had linked the increase in prices to increased insurance costs related to the conflict.
Ngahu stated that the industry normally shipped around 200 metric tonnes of?meat per day during the holy months, but the volume had dropped to approximately 5 to 15 tons each day.
Ngahu stated that exports were expected to reach a total of?amillion kilograms since Sunday, March 8. "We haven't done even 50,000."
Muraya reported that a consignment of 20 tons, on its way to Sharjah, was sent back to Konza after the airspace was closed. Konza had to pay $5,000 for handling, cold room and storage charges.
RIPPLE EFFECT
Exporters say the ripple effect is felt throughout the supply chain - from freight forwarders to?slaughterhouses, and even farmers and livestock traders.
Due to delayed shipments, slaughterhouses cannot clear meat fast enough to make space for new stock. Some exporters are forced to divert their meat to the local market at lower prices. Ngahu reported that some?abattoirs have cut casual labor by up to 80%.
Muraya warned that if the conflict continues beyond Ramadan demand may weaken even further, causing freight costs to become unsustainable.
He said, "If this conflict continues, we will not be in business." (Reporting and editing by Ammu Kanampilly and Kirsten Donovan; reporting by Vincent Mumo Nzilani)
(source: Reuters)