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Marsh, an insurance broker, meets with US officials to discuss restoring Gulf maritime commerce amid the Iran War
Insurance broker Marsh announced on Wednesday that it met with U.S. officials in order to discuss solutions for restoring the maritime trade amid the escalating conflict in 'the Middle East. This waterway is a crucial chokepoint between Iran & Oman and transports about a fifth (or a fifth of the global trade in crude oil & liquefied gas). The shipping through the Strait has been slowed down significantly after Iranian attacks on commercial vessels. This raises concerns about a prolonged disruption of global energy supplies. Marsh, who helped establish an international insurance facility for Ukrainian commerce in 2023, welcomed a directive issued by the U.S. International Development Finance Corporation, to provide financial guarantees and political risk insurance for maritime trade in the Gulf. Bloomberg News reported that Aon, an insurance broker, is in discussions with the U.S. Government about a plan for insuring?tankers traversing the Strait. Aon has not responded to the request for comment about the report. Although the U.S. did not declare war on Iran in a formal declaration, military tensions between the two countries have increased. Donald Trump stated on Tuesday that the U.S. Navy would be able to escort?oil tanks through the Strait of Hormuz, if needed. He also said he had instructed the DFC mobilize support for the affected trade. The move is one of the most aggressive measures taken by the administration to 'contain rising energy prices' amid the conflict in the Gulf which has increased risks for shipping along key waterways. Iran has long threatened to close the Strait of Hormuz in response to perceived "hostilities". Although it hasn't completely blocked the waterway yet, drones and missiles have been used to attack shipping. This has prompted insurance companies to re-evaluate risk. According to Gallagher, marine insurers on the 'London market' continue to provide a?war-risk coverage for vessels transiting this region. However, premiums are rising, and rates vary by vessel type, cargo and route. (Reporting by Manya Saini in Bengaluru; Editing by Tasim Zahid)
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Australia expects more flights to Middle East, but situation is volatile
Three more commercial flights are scheduled to leave?the United Arab Emirates Thursday, as the first group of Australians who were stranded for a few days in the Middle East have returned home. Commercial air traffic was?largely absent? across the Middle East, as major Gulf hubs, including Dubai, the busiest international airport in the world, remained closed for the fifth consecutive day. This is the largest travel disruption since COVID-19. Penny Wong, Australian Foreign Minister, said that she hoped three scheduled flights would go ahead but warned of a volatile situation after NATO's air defences destroyed a ballistic missile fired by Iran towards Turkey. Wong, speaking to ABC News on Friday, said that "this could happen very quickly" if there is a further military operation which makes flying unsafe. "We are operating in an environment that is highly unpredictable." Television footage showed that about 200 Australians returned from Dubai in an Emirates flight on Wednesday night. Families embraced their returning travellers including school-age children, and there were emotional scenes at the arrival gates. Sam Brown told ABC News that she and her family, including a four-year old daughter, had just moved from Dubai to the United Arab Emirates. The family was "totally shocked" by the circumstances, but they were relieved to be back home. We couldn't believe that we were able to get on the flight. We're ?so grateful. "We felt nervous, but very safe in the hands of our trusted staff." According to airport information an Emirates flight from Dubai to Sydney is scheduled to depart at 9 a.m. (2220 GMT Wednesday), and another flight to Melbourne has been set for 5 pm (0600 GMT). Etihad Airways' flight from Abu Dhabi to Sydney scheduled for Thursday was?delayed. Around 115,000 Australians are still in the Middle East. Of these, 24,000 live in the United Arab Emirates. Officials in Australia believe that commercial flights are the best option for stranded travelers to return home.
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U.S., Australia can do little to replace lost Qatari LNG cargoes
According to industry analysts and calculations, the United States and Australia are two of the largest global producers of liquefied gas. They have limited spare capacity to compensate for the loss in supply after Qatar stopped production and declared force majeure due to the conflict in the Middle East. Qatar, which supplies 20% of all LNG in the world, has stopped its production because it cannot send super-chilled LNG through the Strait of Hormuz. Iran has threatened to fire at any vessel attempting to cross the Strait of Hormuz. A vessel was damaged on Wednesday by a projectile as it approached the shipping chokepoint near the Middle East Gulf. The U.S. has the largest LNG production in the world, but it is running at near-full speed and its cargoes are locked into long term contracts. The new U.S. LNG production that is expected to come online in the near future will likely not exceed 2 billion cubic foot per day. This would be far below the gap of 10 bcfd left by Qatar, which would equal to about 80 million tonnes per year. Alex Munton is the director of Global Gas and LNG for Rapidan Energy Group. The Dutch TTF benchmark dropped to $16.72 per milliBtu, after reaching a high of nearly $19 per milliBtu in the past three years on Tuesday. VENTURE FLEXIBILITY Venture Global, the second-largest U.S. manufacturer, has the greatest flexibility in helping in the short term. It can sell the cargoes it produces on the spot markets as it brings online a Louisiana plant. Venture Global sells 2 million metric tonnes per month on the spot market in Louisiana from its Plaquemines facility. This 'gives us more space to redirect cargoes', CEO Mike Sabel said on Monday during a earnings call. Plaquemines awaits final approval from the U.S. Department of Energy to expand beyond its current approved volume of 27,2 million tons per annum. Venture Global's output could increase by up to 7 million tons annually if the Department of Energy approves it quickly. However, this would only be a fraction compared to what Qatar has lost. Poten & Partners, a shipping firm, said Tuesday that Venture Global accounted more than half of 80 LNG cargoes sent from the U.S. into the Middle East in the past year. Venture Global declines to comment further. Golden Pass LNG, a joint venture of QatarEnergy and Exxon Mobil, is another new U.S. source. Initial production at a train capable of producing 6 million tons annually should begin this month. Golden Pass did not immediately answer a question on whether Qatar could use this to make up for its shortfalls. Last week, leading U.S. energy exporter Cheniere Energy began production at Corpus Christi from?Train 5. It is expected that the unit, which has a capacity of 1.5 million tons annually, will take approximately a month to reach full production. The majority of this volume has already been contracted. Cheniere said it would monitor developments in the Middle East, and deliver on its customer commitments. US, AUSTRALIA, AND QATAR ARE LEADERS IN GLOBAL GAS Energy analysts estimate that the global gas consumption is 400 billion cubic feet per day. According to the International Gas Union, approximately 55 bcfd is traded as LNG. The U.S.A., Australia, and Qatar account for about 60% of the global output. The majority of this LNG is sold on long-term contracts. Qatar sold LNG to Europe and Asia before it halted production. Australia, which ships 11 bcfd of LNG, has a limited number of spot cargoes that can?plug the gap in Asia's supply. There is little if any?room for a further increase in LNG production from Australia, as the plants are running at full capacity. Saul Kavonic, analyst at MST Marquee, said that some LNG plant maintenance could possibly be delayed to squeeze out three million tons of LNG over the next six month. The flow capacity of smaller producers is also limited. LSEG data show that LNG Canada is capable of producing up to 2 bcfd but currently produces about 1.5 bcfd.
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USDOT approves American Airlines flight to Venezuela
On Wednesday, the U.S. Transportation Department announced that it had approved American Airlines' request to operate flights from Miami to?Caracas and Maracaibo?in Venezuela. Envoy, its wholly-owned regional airline in Miami, will operate flights from Miami to?Caracas? and Maracaibo?in Venezuela. Sean Duffy, the U.S. Transportation secretary, rescinded a January 2019?order that prohibited U.S. Airlines from flying to Venezuela. President Donald Trump prompted him to do so. American Airlines is planning to resume services? The first flights to Venezuela in over six years. The?U.S. Transportation Security Administration was at Caracas last weekend to review airport security protocols, according to sources. This step is needed to resume flights. The USDOT order is valid for two years. American did not respond immediately to a question about resuming service. The company announced its plans to resume services a few weeks after the U.S. Military seized Nicolas Maduro, the leader of Venezuela. After a meeting with Delcy Rodriguez, the acting president of Mexico, Trump asked USDOT in January to lift the restrictions that currently prohibit U.S. flights. After the U.S. ban, American suspended its service to Venezuela in 2019. The airline said that the daily flights would allow for a variety of travel options, including business, leisure, and humanitarian. Before the suspension, it was the largest U.S. carrier in the country. The State Department has added Venezuela to its list of "Do not travel" destinations for Americans since?December. The safety of air operations in Venezuela has been seriously impacted by military operations near the country. Reporting by David Shepardson
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US Postal Service hires restructuring advisers because it may run out of funds in 2027
The U.S. Postmaster General David Steiner said in an interview that the Postal Service will hire restructuring advisers to address its mounting financial problems. In December, we reported that Steiner believed the Postal Service would run out of cash as soon as 2027. USPS reported net losses of approximately $120 billion between 2007 and now as the volume of first-class mail has dropped to its lowest level since late 1960s. Steiner stated that USPS engaged consulting firm Alvarez & Marsal to assist with planning for any scenario. Steiner said on Thursday that if we don't change anything, "we will run out of money in 12 months." Steiner said, "I don't want to find myself in a situation where we are six weeks away from running out of money and say, Oh hell, what will we do?" Steiner will speak before the U.S. House of Representatives about the financial state of the Postal Service on?March 17. He will warn that if improvements are not made, there may be no Valentine's Day Cards delivered in February 2027. Steiner stated that USPS mail volumes have dropped 110 billion pieces per year since the peak 15 years ago, translating into $86 billion of revenue at current prices. USPS announced a net loss of $1.25bn for the quarter ending last month. USPS has urged policymakers to reform Postal Service Civil Service Retirement System, give USPS greater flexibility in pricing, and increase the $15 billion debt limit that it reached years ago. Steiner stated that "if we cannot get help from outside, either from our regulator or Congress regarding the debt limit - everything has to be put on the table." Steiner is hoping to be able to increase the price of first-class postage over the current 78c. He believes that Americans are willing to pay 90c or 95c per letter when most other countries charge $2 or more. USPS launched a platform for online bidding in January to accept proposals to access its last-mile delivery network. This opened up more than 18,000 local processing centers and?destination units across the country to a wider range of customers who could raise much needed funds. USPS delivers more than 170 millions U.S. addresses six days a weeks, and the last mile is the most expensive part. Companies like FedEx UPS, and Amazon.com also pay a lot for the last mile. Congress will provide about $50 billion over the next decade in financial assistance to its future retirees and require them to enroll in government health insurance plans. USPS no longer had to prefund retiree health benefits for both current and retired employees. This was a requirement that no other business or federal entity faced. Steiner's predecessor Louis DeJoy told Congress that the postal service would be in a "death-spiral" if it didn't reform. Reporting by David Shepardson, Washington; Aishwarya JAIN, Bengaluru. Editing by Sahal Muhammad and David Gregorio.
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Gallagher: London marine insurers continue to offer coverage for the Middle East despite rising war risks rates
Angus Blayney, Marine Division Director at Gallagher, said that marine insurers 'in the London market' continue to offer cover in the Middle East despite the rising war-risk premiums resulting from the escalating conflict around the Gulf. Blayney stated that rates have increased based on the vessel type, cargo, and route, as U.S., Israeli, and Iranian forces continue to attack Iran around-the-clock, and Tehran continues its retaliatory drone and missile strikes. The Strait of Hormuz is a crucial oil export chokepoint that links Gulf producers like Saudi Arabia, Iran and Iraq to the Gulf of Oman, the Arabian Sea and the United Arab Emirates. It remains the focal point of the conflict's impact on the commercial world. Iran controls this narrow waterway. Blayney stated that "given the challenging maritime security environment, rates are higher than what owners and charterers have come to expect." Marine insurers continue to offer coverage and help to ensure that vital maritime commerce continues without interruption with adequate protection in place. Gallagher stated that Lloyd's of London has capacity available for clients who are looking for cover and that it has recently secured marine war risks solutions 'for many existing and new customers. MarineTraffic estimates that at least 200 ships including cargo vessels and oil tankers, as well as liquefied gas and LNG tankers, are anchored in the open water off the coasts major Gulf producers, such as Iraq, Saudi Arabia, and Qatar. Donald Trump, the U.S. president, said that the U.S. Navy would be able to begin escorting oil tankers through Strait of Hormuz in the event of a need. He said he had ordered the U.S. International Development Finance Corporation (IDFC) to provide financial guarantees and political risk insurance for maritime trade within the Gulf.
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Technical fault causes Iraq power grid blackout
Iraq's?electricity?ministry announced on Wednesday that all provinces were experiencing a blackout. The?government attributed the power outage to a?technical?fault. Since the government's electricity is only available intermittently, many?Iraqis have been relying on private generators to provide power. Others have used solar power to cover their electricity needs. The Ministry of Electricity spokesperson said that the sudden drop in gas supply to the Rumaila Gas-fired Power Plant in Basra Province was the cause of the power system shutdown. The spokesperson added that the power was being restored gradually. According to a senior source familiarized with power operations who requested anonymity on the matter, electricity would be restored within hours. A sudden shutdown at the Hamidiya Power Plant in western Anbar province in August 2025 caused a fault in the transmission network. Iraq, one of the largest oil producing countries in the world, has struggled since 2003 to supply its citizens with energy. Under-investment and mismanagement led to the grid being unable meet demand. Reporting by Menna Alaa Al-Din, Muhammad Al Gebaly, and Muayad Haeed. Mark Potter is the editor.
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The Foreign Minister of Hungary has announced that Russia will release two ethnic Hungarian prisoner of war
Peter Szijjarto, Hungary's foreign minister, said in a statement issued after he met with Russian President Vladimir Putin?in Moscow on Wednesday that two ethnic -Hungarian prisoners of... war would be released by.... Russia. Szijjarto traveled to Moscow one day after Hungary's prime minister Viktor Orban had a telephone call with Putin. They discussed the Middle East situation, Ukraine and whether there was enough crude oil and gas available for Hungary. Orban's Government has made Russia's War on Ukraine a major topic in his election campaign for the 12th April parliamentary elections, increasing tensions between Budapest & Kyiv. Szijjarto stated?earlier Wednesday on his Facebook page, that two ethnic Hungarian prisoner of war?have recently requested help from Hungary. Szijjarto stated, "I hope after our 'talks that more people will fly home on the plane as opposed to those who came this way." Ukraine is home for around 150,000 ethnic Hungarians. Most of them live in Transcarpathia. Orban's government has been at odds with Kyiv over the language rights of ethnic Hungarians for many years. Orban's government also accused Kyiv of conscripting ethnic Hungarians who Budapest claimed should not have been called into service. Last Friday, the Foreign Minister summoned Kyiv’s?ambassador in Budapest to protest against the conscription. Orban, the Hungarian prime minister,'maintained a warm relationship with Moscow after the beginning of the conflict in Ukraine and is unwilling to give up its purchases from Russia of oil and gas,' which has caused tensions with Europe. Hungary announced last month that it would 'block' the next EU package of sanctions against Russia, as well as a 90-billion euro (105-billion dollar) EU loan to Ukraine for its defense against Russia until the Druzhba Pipeline resumes shipments.
Marsh, an insurance broker, meets with US officials to discuss restoring Gulf maritime commerce amid the Iran War
Marsh McLennan, an insurance broker, said that it had met with U.S. government officials on Wednesday to "explore" solutions for restoring maritime traffic amid the escalating fighting in the Middle East. The?region?is under threat from 'attacks' which threaten energy shipments across the Strait of Hormuz.
This waterway is a crucial chokepoint between Iran & Oman and transports about a fifth (or a fifth of the global trade in crude oil & liquefied gas).
The shipping through the Strait has been slowed down significantly after Iranian strikes on commercial vessels. This raises concerns about a prolonged disruption of global energy supplies.
Marsh, which helped establish an international facility for Ukrainian trade by 2023, welcomed the recent directive of the U.S. International Development Finance Corporation, to provide financial guarantees and political risk insurance for maritime commerce within the Gulf.
The?U.S. Although the?U.S. has not declared war on Iran formally, military tensions are increasing. Donald Trump announced on Tuesday that the U.S. Navy would be able to escort oil tankers across the Strait of Hormuz, if needed. He also said he had instructed the DFC mobilize support for affected trade.
The administration has taken one of its most aggressive measures yet to control soaring energy costs?amid an escalating conflict that is affecting shipping through important waterways.
Iran has been threatening to close the Strait of Hormuz for years in response to perceived hostilities. Although it hasn't completely blocked the waterway yet, drone and missile attacks have caused insurers to reconsider their risk assessment.
(Reporting by Manya Saini in Bengaluru; Editing by Tasim Zahid) Marine insurers continue to offer coverage for war risks on vessels transiting the region. However, premiums are rising, with rates depending on vessel type, cargo and routing. (Reporting by Manya Saini in Bengaluru; Editing by Tasim Zahid)
(source: Reuters)