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Zelenskiy: Ukraine uses strikes to pressurize Russia after oil sanctions have eased
Volodymyr Zelenskiy, the president of Ukraine, said that Ukraine uses long-range attacks on energy infrastructure in order to'maintain the pressure' on Russia following the easing of international oil sanctions against Moscow this month as a result the Iran War. Washington granted a 30-day exemption to countries this month to purchase sanctioned Russian crude oil and petroleum products that were stranded on the sea. The waiver was issued to stabilize the global energy markets, which had been roiled by conflict in the Middle East. Ukraine's European Allies who want to continue?pressure on Russia for it to end its four-year old war have criticised Washington's move. Zelenskiy, when asked about the recent escalation of Ukrainian attacks against Russian energy infrastructure in Zelenskiy's interview, noted that international sanctions policies are changing: "The pressure in the world on Russia is decreasing." In an interview late Wednesday, he said that Ukraine, unlike many other countries, has its own sanctions, namely its long-range capability. Zelenskiy said that despite the recent heavy Russian missile and drone strikes on Ukrainian cities, pressure must be maintained on Moscow: "If Ukraine doesn't respond to their attacks then Russia will continue to fight without even thinking about pauses." RUSSIAN EXPORTS DISRUPTED Sources said that on Wednesday, Russia’s Baltic ports, Ust-Luga, and Primorsk, suspended crude oil and petroleum products loadings after Ukrainian drone strikes sparked blazes. Smoke was visible as far away as Finland. Primorsk resumed fuel and oil?loadings Thursday, but at a lower capacity due to damage to the infrastructure. Ukraine's SBU said in a Wednesday statement that its long-range drones flew over 900km (560 miles) to strike the Ust-Luga Terminal from their Alpha Special Operations Centre. Calculations based on data from the market showed that on Wednesday, at least 40% of Russia’s oil export capability had been stopped. It is the worst oil supply disruption that Russia has ever experienced in modern times. Russia is the world's 2nd largest oil exporter. The shutdown has hit Moscow at a time when oil prices have risen above $100 per barrel as a result of the Iran War. Interfax reported that Russia's Transneft, the monopoly oil pipeline company in Russia, will attempt to redirect oil exports away from Baltic Sea ports damaged due to drone attacks. Reporting by Daniel Flynn, Olena Hartmash and Andrei Khalip
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Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the global aviation industry. Airlines have been forced to increase fares and revise their financial forecasts. In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for a quarter or more of its operating costs. Here is an alphabetical list of the ways airlines are responding to this issue: AEGEAN AIRLINES The Greek airline is expecting a significant impact on its first quarter results from the suspension of Middle East flights as well as a spike in fuel prices. AIR FRANCE-KLM The airline group announced that it would be increasing the price of long-haul tickets to offset rising fuel costs. Cabin fares will increase by 50 euros ($57). AIR NEW ZEALAND On March 10, the airline was among the first to announce a large increase in ticket prices. The airline also suspended its earnings projections for the full year due to volatile fuel markets. Price increases are NZ$10 on domestic flights, NZ$20 for short-haul international flights and NZ$90 for long-haul flights. Further price, schedule and network changes may be made if fuel prices continue to rise. AKASA AIR Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights. AMERICAN AIRLINES Fuel prices are on the rise, and U.S. carriers expect to see a $400-million increase in their first quarter expenses. CATHAY PACIFIC Hong Kong Airlines announced that it will increase fuel surcharges for all routes starting March 18. The airline cited a doubled in jet fuel prices from the beginning of the month. Last month, the carrier, which reviews fuel charges monthly, kept them at $72.90 per flight between Hong Kong and Europe, or North America. CEBU AIR The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review pricing and network strategies and try to minimize the impact. EASYJET EasyJet CEO Kenton Jarvis told European consumers to expect higher ticket costs towards the end summer when fuel hedges end. FRONTIER AÉRIENS Fuel prices have risen significantly since the airline's last forecast, and it is now reviewing its full-year outlook. HONG KONG Airlines The airline announced that it would 'raise fuel surcharges up to 35% starting March 12th, with the biggest increase occurring on flights between Hong Kong, Bangladesh, and Nepal where the charges will rise from HK$284 to HK$384 (US$49). British Airways' owner IAG stated on March 10 that it does not intend to increase ticket price?immediately?, since it has hedged a large amount of fuel for the short to medium term. INDIGO India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for fuel tax reductions by the Indian government. PAKISTAN INTERNATIONAL FLIGHTS Fuel surcharges are cited as the reason for raising domestic flight prices by $20, and international flight rates by up to $100. PHILIPPINE AERLINES The airline stated that it had enough fuel to support its scheduled operations but didn't have a forecast beyond June or May. The company president Richard Nuttall said CNBC that the Philippines may eventually look at measures like rationing fuel purchases, as some countries have already done. QANTAS AIRWAYS On March 26, the Australian airline, which had already announced that it would increase international fares, announced it would be adding flights to Rome Paris and Singapore. The airline said that it would be monitoring fuel prices, demand and fuel security. It could also make other changes. Scandinavian Airlines announced that it would cancel 1000 flights in April due to high jet fuel and oil prices. In March, the airline said that it had canceled "a couple hundred" flights. SAS, which has already raised flight prices, stated that the surge in fuel costs would be a "blow" to the aviation industry, even if they tried to absorb them. SPRING AIRLINES Budget Chinese airline said that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced later. THAI AIRWAYS The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices. TURKISH AIRLINES LUFTHANSA SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would "impose a temporary fuel charge of 10 euros per passenger on routes between Turkey, Europe and Asia from 1 May." Bookings made after April 1 for departures after May 1 will be subject to the surcharge. UNITED AIRLINES Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027. Chief Commercial Officer Andrew Nocella stated that United was able to increase fares without affecting bookings. VIETJET Due to possible fuel shortages, the Vietnamese budget airline has adjusted flight frequencies on certain routes. VIETNAM Airline Vietnam's Aviation Authority announced that the carrier will cancel 23 flights a week on domestic routes starting in April after it requested assistance from the government to remove an environment tax on jet fuel. VIRGIN AUSTRALIA Virgin Australia announced that it would be adjusting its fares in order to reflect the rising costs across the aviation industry, which were said to have been significantly exacerbated due the Middle East situation.
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The Iran War complicates WHO emergency medical supply routes
Officials from the World Health Organization said that they are finding alternative 'routes' to transport emergency medical supplies via their Dubai hub, to?crises like Lebanon, by long overland trips. However, rising fuel prices could hinder shipments in the event of a prolonged Iran war. Aid shipments by the global health organization from the United Arab Emirates had been completely halted due to restrictions on air, sea, and land routes caused by 'the Iran conflict', which began February 28th with U.S. - Israeli air strikes. Iran responded by firing "drones and rockets" at energy and other facilities across the Gulf while militant group Hezbollah brought Lebanon into a regional war by shooting on Israel to support its patron Iran. The WHO official said that the UAE has provided funding for the transportation of supplies such as insulin and emergency kits from Saudi Arabia to Lebanon, a country where over 3,000 people were injured. They have also funded charter flights to other hotspots, like Kabul in Afghanistan. Paul Molinaro, WHO's head of Operations, Support and Logistics, said on Thursday that the cost and lead times will increase as we find workarounds. A UAE official confirmed that the UAE was supporting its partners. Molinaro, however, said that the Dubai backlog had not been cleared completely. He cited smaller medical shipments "that remain stranded". Two shipping companies waived the insurance surcharges, he said. The International Federation of Red Cross and Red Crescent Societies (IFRC) said that it was planning to transport ambulances from Dubai overland to Lebanon, but road costs were higher by around 30%. There were also delays at the border. Molinaro, when asked about the?risk of drug shortages', said that he was most concerned about the oil price increases leading to a depletion of fuel stocks in poorer nations and aid stowaways. He said that "serious problems could arise six to eight weeks from now." "I believe we'll feel it quicker than shortages in drugs, plastics, and equipment." (Reporting and editing by William Maclean, Emma Farge)
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Air China's losses will increase in 2025 due to fare pressure and the risks of an Iran war.
Air China reported a loss of $1.77 billion ($256.17 millions) on Thursday, reversing signs that the carrier was recovering. The?country's flag carrier?was hurt by market competition. The company estimated a loss for the full year of 1.3 to 1.9 billion yuan, but it was significantly higher than its 2024 net loss of 233 millions yuan under IFRS standards. The airline posted a profit of 3,64 billion yuan during the 'fourth quarter, after a profitable third quarter fueled by the 'peak summer season. Air China's annual report stated that it will be focusing on efficiency and profitability this year. It also warned of external risks, such as those arising from fluctuations in jet fuel prices and exchange rates. Air China has lost money every year since 2020. The state-owned carrier is still struggling to make a profit after the pandemic despite the fact that the global industry returned to profitability in 2023. The factors that have contributed to this are the downward pressure on ticket prices, the reduced demand for international travel and the competition between its domestic competitors as well as China's expanding high-speed rail network. Airline also faces challenges resulting from the U.S. and Israeli war on Iran. This has disrupted aviation operations around the world, increased jet fuel costs, and caused some airlines to increase fares & boost fuel surcharges. China's state-owned airlines do not hedge against an increase in oil prices. The shares of Hong Kong listed?Air China fell more than 30% in the last month, compared with a 5.8% drop on the wider market.
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Sources say that the damaged Ust-Luga terminal could force Russian refineries reduce their production.
Two market sources say that the closure of Russia's Baltic Port of Ust-Luga after a drone strike?on Wednesday may force major refineries in Europe to reduce crude oil runs because of shipping restrictions. Sources and social media reports claim that the strike caused damage to a rail deloading rack at the Ust-Luga Terminal. The Ust-Luga bottleneck threatens oil processing in four of the largest refineries in 'the European part of Russia - Kirishi Yaroslavl Moscow and Ryazan. According to traders, they process around 55 million metric tonnes of crude oil each year (400,000 barrels a day). On Wednesday, the?Ust-Luga Oil Terminal stopped releasing rail cargoes including supplies from these big refineries. RUN CUTTING EXPECTED IN DAYS "Ust-Luga ceased?taking fuel oil and gasoline on Wednesday. We will need to reduce runs to the minimum within days and then possibly shut down units," said a refinery expert. All sources spoke under condition of anonymity, as they were not authorized to speak publicly about the matter. Traders estimate that Ust-Luga is one of Russia's main export hubs of refined products and handles 18 million tonnes of fuel oil per year. Sources said that disruptions in fuel oil export shipments are a major challenge for refiners. Fuel oil is not as popular in the home market, but it can still be purchased. The domestic market accounts for between 18% and 35% of all crude oil runs at the affected refineries. Reduced runs to curb fuel oil production would also reduce gasoline production during a season of increased demand. Refiners consider emergency measures Fuel oil is the bottleneck. "We are looking at ways to reduce dark yields, divert to bitumen and bunker fuel, as well as other ports. We will also cut runs, load secondary units maximally (fuel oil utilisation)," a refinery said. When operations will resume at Ust-Luga is unclear. On Wednesday, Kirishi Refinery was also hit by a drone and could reduce processing. This would ease the shortage of transshipment capacity, as fuel oil production will decrease. Barbara Lewis edited the report by Barbara Lewis.
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Investors fear a further Middle East escalated as oil prices rise by 5%
On Thursday, oil prices increased 5%, reversing the previous session’s decline, amid fears that a long-term conflict in the Middle East could disrupt supply. Brent?futures rose $5.26 or 5.2% to $107.48 per barrel at 10:57 am?EDT (1450 GMT), near the session high of $107,84. U.S. West Texas Intermediate Crude Futures rose $3.53 or 4% to $93.85 per barrel after reaching as high as $94.84. Both benchmarks fell more than 2% Wednesday. Iran has reviewed a U.S. plan to end this war but does not intend to hold talks, said Iran's Foreign Minister on Wednesday. U.S. president Donald Trump warned Iran to "get serious," on Thursday, about a deal that would end almost four weeks of fighting. A day earlier, White House press secretary Karoline leavitt had said the U.S. would hit Iran harder if Tehran refused to accept the fact that it has "been defeated militarily." "There is confusion and frustration over the veracity?of stories coming out of Iran and the United States." Timothy Snyder, Matador Economics' chief economist, said that investors are again moving into safer assets to conserve capital. Sources have confirmed that the Pentagon plans to send thousands more airborne troops into the Gulf in order to give Trump a wider range of options for a possible ground assault. This will be added to two Marine contingents currently en route. A Houthi leader said that the Iran-aligned Houthi Movement in Yemen is ready to strike again the Red Sea waterway as a show of solidarity with Tehran. Soojin Kim, MUFG analyst, said that "ongoing military escalation" - including troop deployments, fresh strikes and limited tanker movements under strict Iranian conditions - continues to strain the global energy markets. TRUMP'S FIVE-POINT PLAN According to three Israeli cabinet members familiar with the plan, Trump's five-point proposal would eliminate Iran's highly enriched uranium stocks, stop enrichment, curtail its ballistic missile programme, and cut funding to regional allies. Conflict has almost stopped shipments through Strait of Hormuz which typically transports about a fifth of world crude oil and LNG. The International Energy Agency called it the "biggest disruption of oil supply ever". Iraq's oil output has dropped, and storage tanks are at critical levels. Three Iraqi energy officials confirmed this on Wednesday. According to data from the U.S. Energy?Administration, Iraq will be the second largest crude producer in OPEC in 2025 behind Saudi Arabia. Sanae Takaichi, the Japanese prime minister, asked Fatih Birol, chief of the IEA on Wednesday for a coordinated release of additional oil stocks as Tokyo sought to protect itself against a prolonged conflict. According to calculations based upon market data, the Russian oil export capacity has been halted by at least 40% following Ukrainian drone strikes and the seizure or tankers. On Thursday, ?Russia's Kirishinefteorgsintez oil refinery, one of the largest in the country, halted processing on Thursday following Ukrainian drone attacks that ?caused fires in some parts of the plant, two industry sources said. Interfax reported Thursday that the head of Russia's oil-pipeline monopoly Transneft would try to redirect oil from Baltic Sea ports damaged by storms. Turkey's transport minister stated on Thursday that a marine drone had struck a Turkish crude tanker leaving?Russia and caused an explosion in the Bosphorus Strait near Istanbul. U.S. crude oil inventories increased by 6.9m barrels, to 456.2m barrels for the week ending March 20. This is the highest level of the last six years and exceeds analyst expectations. (Reporting from Siddharth Cavale in New York, with additional reporting by Ahmad Ghaddar, Yuka Obaashi, in Tokyo, and Siyi Lu in Singapore, and editing by Bernadette B. Baum, Ros Russell, and Paul Simao.
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Mexico announces its support for the motor transport industry
The?Mexican?government announced on Thursday measures to support the motor transport industry in Mexico, particularly heavy vehicle manufacturers and owners. At a recent press conference, Economy Minister Marcelo Ebrard said that the program includes tax incentives for local manufacturers and also aims to promote 'Mexico’s motor transport industry by protecting it against imports. He added that the initial budget for the project was 2 billion pesos ($112,41 million) in tax deductibles and 250 millions pesos of direct investment. The program will "support Mexico's heavy vehicles sector by providing incentives for the purchase of vehicles. The President Claudia Sheinbaum stated that the "measures" will boost the production and use of commercial vehicles. She also said that the "modernization of heavy duty vehicles" would help to reduce pollution levels in the country, as well as improve the conditions of freight transport.
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Italian tax police search multiple office in IT contract probe
Two sources who have direct knowledge of this matter confirmed that the Italian tax police had searched the offices of several state-linked organizations and 'companies as well as an executive's office in Rome, as part of an investigation into the public IT procurement contracts. Sources said that the investigation is an extension of the 2024 probe, which was launched into Sogei (the Treasury's IT firm) in order to investigate a alleged scheme of rigging IT procurement contracts by creating slush fund. The company, Polo Strategico Nazionale, manages cloud infrastructures for the public sector. Sources said that police had also entered a building of the defence ministry and a Telecom Italia executive's office in Rome. The Defence Ministry?said that it would provide its full cooperation and support to the judiciary authorities. Terna, TIM, PSN (which is owned by TIM), Leonardo, CDP Equity, and Sogei were not available to comment. Sources say that Rome prosecutors are 'investigating allegations of corruption and money laundering' linked to certain contracts awarded by the companies searched as well as the environment ministry. Sources confirmed that 26 people are under investigation. (Reporting and editing by Crispio Balmer, Alex Richardson and Crispio Parodi)
Sources: Russia resumes loading oil at Primorsk, but not to full capacity
Three sources confirmed that the Primorsk port in Russia, located on the Baltic Sea, resumed fuel and oil loadings on Thursday, following an incident caused by drone strikes on Sunday. However, it was at a lower capacity than usual due to damage done to its infrastructure.
Sources said that the port, which is capable of loading up to 1 million barrels of crude oil per day, has started to load oil onto tanker Anlan. The sources said that another tanker, Minerva Georgia was also expected to start loading oil later Thursday.
Sources claim that the port has also resumed diesel loadings, but at a slower pace. The sources stated that it was unclear when the port could resume normal operations with full capacity.
Ust-Luga, Russia's second major Baltic oil port, remained closed after Wednesday's?drone attack. Transneft, the Russian oil pipeline monopoly, will attempt to redirect oil exports away from the Baltic Sea ports that were damaged, the?Interfax?news agency reported Thursday.
According to calculations, recent drone 'attacks' have caused a 'worst oil export shortfall ever in Russian history. This is due to the fact that?some 40 percent of the state?s?oil-export capacity has been cut. Reporting by
(source: Reuters)