Latest News
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German Finance Minister: Market intervention is needed to combat energy crisis.
The German Vice-Chancellor and Finance Minister Lars 'Klingbeil said on Saturday that government action was the best way to reduce soaring fuel and diesel prices. This exacerbated a rift within the coalition about how to tackle the current energy crises. The Iran War has disrupted the global energy supply, causing Europe's biggest economy to face higher gas and oil prices at a time of tepid economic growth. "Intervening on the market is the most effective approach." In other European countries, we see this," Klingbeil said to Sueddeutsche Zeitung during an interview. This put him at odds with Economy Minister Katherina Reiche. "And I think we should also have this courage." Klingbeil reiterated his plans to impose a windfall on the profits of energy companies, given the high petrol prices. He added that this would enable Germany to "skim crisis profits and?use them for real relief for its citizens". It should be accompanied by a reduction of?energy tax as well as price cap for petrol and diesel similar to that in other European countries. "I cannot explain to anyone how in countries like?Belgium or Luxembourg, neither of which are communist, the government caps prices while here, they skyrocket," said?Klingbeil. Reiche of the Christian Democrats branded Klingbeil’s proposals as "expensive" and "ineffective". He added that coalition leaders will continue to discuss possible solutions this weekend. (Reporting and editing by Chizu Nomiyama)
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FAA and Pentagon sign agreement to deploy anti-drone Laser System near Mexico
The Federal Aviation Administration and Pentagon announced on Friday that they had signed an agreement to allow the government to use a high-energy laser counter-drone along the southern border of the United States with Mexico. After the FAA tested the laser system in New Mexico used by the Pentagon, Homeland Security Department, and verified that the proper safety controls were in place and did not pose any undue risk to passenger aircraft. Two previous incidents raised serious concerns. The U.S. Military accidentally shot down a drone using the laser-based systems on?February 25. This led the FAA (Federal Aviation Administration) to extend the area where flights around Fort Hancock, Texas are prohibited. This incident occurred after the FAA halted all flights at the El Paso Airport for 10 days on February 18, due to the use of a 'Pentagon Laser System' by Homeland Security without completing a safety review by the FAA. After the White House intervened, the FAA lifted the shutdown order for El Paso after eight hours. After a thorough and data-driven Safety Risk Assessment we concluded that these systems did not pose an increased risk for the flying public," FAA Administrator Bryan Bedford stated on Friday. Pentagon officials have confirmed that more than 1,000 drones are used along the U.S. - Mexico border each month. U.S. officials are increasingly concerned about Mexican cartels using drones to deliver drugs or monitor trafficking routes. Media outlets reported that drones were spotted last month over Fort McNair, Washington, where Secretary of State Marco Rubio and Defense Secretary Pete Hegseth reside. The Pentagon has not announced any plans to deploy the Laser at the base which is located near the Reagan Washington National Airport. Last month, Democratic Senator Tammy Duckworth called for federal watchdogs review the decision making process that led to the use and decision by the FAA to close airspace. (Reporting and Editing by Franklin Paul & Rod Nickel, Rod Nickel, David Shepardson)
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A crash involving a bus full of British tourists in La Gomera, Spain has left one dead and 27 injured
Emergency services reported that at least one person died and 27 others were injured after a bus carrying British tourists crashed into a ravine in La Gomera. Local emergency services posted on social media that the injured, among them three people in a serious condition, were airlifted from the Nuestra Senora de Guadalupe Hospital. The local emergency services said that 27 British citizens and the driver were among the injured. The accident happened when the vehicle came 'off the GM-2 highway?in La Gomera. This island is popular with northern European visitors. The British Foreign Ministry said that they were in contact with the local authorities, and would be happy to assist British nationals. The bus was operated locally by Gomera?Tours. A spokesman for the company said that it would not comment when contacted. The Spanish police have launched an investigation, but the cause of this crash has yet to be determined. In a traffic crash on the same road last year, 10 people were injured and?one woman was killed?
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Sources say that India allows Reliance to dock Iranian oil tankers
Three industry sources confirmed that the Indian shipping ministry had granted Reliance Industries' request to allow?four vessels carrying Iranian crude oil to dock at Sikka in western India. India, which is the?third largest?oil consumer and importer in the world, hasn't received a shipment from Tehran since May 2019, following U.S. pressuring it not to purchase Iranian crude. The U.S. temporarily lifted sanctions last month on the purchase at sea of Iranian oil to lower oil prices. The waiver will expire on April 19, 2019. Reliance, the Indian oil ministry and the?shipping minister did not respond when asked for comments. Iranian oil is frequently transported by a "shadow fleet" of vessels, which lack international insurance and safety certifications. This is not possible as Indian law requires that ships be berthed under special conditions. EXEMPTION ONE TIME ONLY According to one source, the Shipping Ministry has granted an 'exceptional'?one-time exception for vessels requested by Reliance, the operator of the largest refining complex in the world, because of?the emergency created by the?closure of the Strait of Hormuz. A second source confirmed that, in addition to the aframax Kaviz, which is flagged by Comoros, and Lenore (a very large crude carrier, or VLCC), which is registered under Curacao, Felicity and Hedy are VLCCs flying the Iranian flag. The four vessels sanctioned by the United States are all older than 20 years. Each VLCC can carry up to 2 million barrels. India requires that tankers older than 20 years have a seaworthiness certificate from either a member of industry's leading organization, the International Association of Classification Societies or?an entity authorized by India's maritime administration. According to United Against Nuclear Iran's analysis, the Hedy was positioned in Chabahar Port since April 1, and the Felicity has been spotted there since April 3. The group monitors Iran related tanker traffic via ship and satellite tracking. Charlie Brown, UANI's senior adviser and UANI representative, said that the Kaviz left the Gulf on Friday while the Lenore loaded crude oil from Iran's Kharg Island in March 20. Another source stated that despite being granted a?permission, Reliance was not sure if it would process Iranian oil. It wants to make'sure transactions are compliant with Indian laws and sanctions. Ship tracking data indicates that Indian Oil Corp., the nation's largest refiner, purchased Iranian oil transported in the tanker Jaya. (Reporting and editing by David Holmes and Rod Nickel; Nidhi verma)
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Middle East War Highlights Florida's Fuel Supply Vulnerability
Analysts say that Florida residents are paying significantly more for gasoline and diesel than the national average in recent weeks due to the U.S. - Israeli war with Iran, which forces the Sunshine State into competition?with Europe and Asia over fuel produced by 'Texas' and other U.S. States. The high-end, rare premiums show how Iran's blockade of Strait of Hormuz exposed vulnerabilities to oil and fuel supply chain around the world. Florida is not a refinery state, due to its hurricane-prone nature. There are also no pipelines that deliver fuel from U.S. Gulf Coast refining plants. Fuel delivered by the Colonial Pipeline to Georgia is transported into Florida via trucks. However, the bulk of Florida's fuel requirements are met with barges from the U.S. Gulf Coast. Export margins have improved for fuel producers as they have prioritised?exports from the U.S. to Europe and Asia, since international markets were hit the hardest by the Strait of Hormuz closing. Tom Kloza is the chief energy advisor at Gulf Oil. He said that "ships that would normally transport product from lower Mississippi ports or Houston to Florida port are mostly headed elsewhere." GasBuddy data showed that Florida residents paid as much as 15 cents per gallon for gasoline this month, which is nearly 4% higher than the national average. For diesel, they paid as much as 35 cents or 6% more, according to GasBuddy. Prices in Florida are typically lower than the national average. The data revealed that Floridians paid the highest premiums for gasoline since 2013 and for diesel ever. California and Hawaii continue to pay the highest fuel prices. Gasoline in Florida was back below the national average on Friday, at $4.06 per gallon. A ceasefire agreement with Iran helped ease supply worries. Diesel prices, however, were still?about six cents above the national standard at $5.77 per gallon. As they prepare for the midterm elections in November, President Donald Trump and the Republican Party are concerned about high gasoline and diesel costs. The president and other Republicans, such as outgoing Florida Governor Ron DeSantis have repeatedly attacked Democrats over high fuel prices in states like California. Patrick De Haan is the head of Petroleum Analysis at GasBuddy. He said that Florida is unique in its vulnerability to this problem because most of the fuel is imported via barges, with the exception of the panhandle. Gulf Oil's Kloza stated that high freight rates have added another layer of complexity for Florida. The barges still bringing in fuel were doing so at "almost nonsensical" freight rates. The Strait of Hormuz Blockade has caused freight rates to increase globally, and in particular, on the U.S. Gulf Coast. GasBuddy's De Haan stated that Florida's dependence on barge supplies from the U.S. Gulf Coast is a growing concern due to the?rapid growth of the population, which has led to a higher demand. The U.S. Energy Information Administration reported that the total gasoline consumption in Florida reached 224 million barrels by 2023. This is a 32-million barrel increase compared to 2011, and represents the largest jump in this period in the U.S., except for Texas. (Reporting from Shariq Khan, New York; editing by Nia Williams.)
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Ireland faces a'very serious' situation because of protestor fuel blockades.
On Friday, protesters in Ireland demanded government action over surging fuel prices. They used tractors and truck to block a port, fuel depot and oil refinery. The prime minister was forced to warn that the country might have to turn fuel deliveries away. Micheal Martin, who spoke on Friday, said that the blockades of Irish oil pipelines, which were triggered by the more than 20 percent increase in diesel prices following the U.S./Iran war, will cause serious economic damage. Fuels for Ireland, an industry?group, said that more than 100 petrol?stations had run out of fuel. "The situation is extremely severe right now." In an interview with RTE, Martin said that he didn't believe people were aware of the severity of the situation. He said that "we are on the brink of turning oil from the country," citing a problem with a tanker at Galway Port, and the halting of refining operations at the Whitegate Oil Refinery near Cork. It is unconscionable. It is illogical. It is hard to understand. Martin stated that the police and the army were ready to assist in clearing the protests, if needed. He also said "clearly the law will be enforced." Martin called for dialogue in order to resolve the issue. DPD, a delivery firm, said that it would suspend services in Ireland due to protests on Saturday. Last month, the government announced a package worth 250 million euros ($293.2 millions) to temporarily reduce taxes on petrol and diesel in order to offset the cost of the Middle East war. However, protesters are calling for more drastic measures, such as a price ceiling.
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Tel Aviv stocks reach record highs as truce hopes spur Tel Aviv's shares to hit a 1995 peak against the dollar.
Tel Aviv's share indexes reached all-time peaks - and the Israeli shekel rose - to a 30-year high - against the dollar on Friday, on the apparent hope that the U.S.-Iran talks scheduled for Saturday would maintain a ceasefire. The blue-chip Tel Aviv index and the broader TA-125 closed higher by 1.9%, extending to over 6% gains since the U.S. and Israel led air war began in February '28. The?shekel rose 0.7% against the dollar, reaching a rate 3.031 - its highest level since October 1995. Israel and Hezbollah traded fire in Lebanon, and the Strait of Hormuz was closed. The U.S. and Iran will meet in Islamabad on Saturday to try to reach a deal, including the reopening of the strait.
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Airports warn that Europe could be facing a jet fuel shortage within weeks
The European airport industry has warned of a possible systemic shortage of jet fuel in just three weeks, if the Strait of Hormuz does not open up. They have called for urgent EU-wide actions to secure supplies ahead the summer peak travel season. Airports Council International Europe, in a letter dated April 9 to the European Commission (ACI), said that a fuel shortage would "significantly hurt the European economy" and compound the macroeconomic effects of the rising oil prices caused by the Middle East conflict. Financial Times was the first publication to cover this letter. The Commission didn't immediately respond to an?ask for comment. According to ACI's study, data from up until 2019 shows that air connectivity is responsible for 851 billion euro ($997.03billion) of gross domestic product in Europe. Airports also handle 26% of Europe’s exports. ACI's Olivier Jankovec, the director general of ACI, wrote in a letter that despite a meeting held by the European Commission oil coordination group last week, there is currently no EU-wide mapping or assessment of jet fuel availability and production. The Commission was asked to map jet fuel availability and demand, to identify alternative sources of import, to assess the threats to intra-EU fuel flow, and to evaluate commercial and strategic reserve levels. In recent weeks, jet fuel prices have doubled from $150 to $200 a barrel. This is a major financial blow to an industry where fuel can account for as much as a quarter or more of its operating costs. The letter also called for a series of immediate policies interventions, such as the lifting of temporary import restrictions on jet-fuel, specifically those imposed by the new EU methane regulation that will be in force from January 2027. Jankovec said that the rules have already discouraged third-country sellers of fuel from signing contracts this summer. The group also suggested that the EU purchase 'jet fuel collectively and impose refinery obligations on specific refineries to safeguard production. It also recommended including airports, airlines, and ground handlers as recipients of state aids.
Cathay Pacific will cut flights between mid-May and end-June due to rising jet fuel prices
Cathay Pacific Airlines announced on Saturday that it would cut some flights from mid-May until the end of June, citing the rising costs of jet fuel caused by the Middle East conflict.
It was reported that the airline would cancel about 2% scheduled passenger flights between May '16 and June 30, 2026. Meanwhile, its budget arm HK Express would cut around 6% starting May 11.
The airline said that the suspension of passenger services between Dubai and Riyadh will remain in effect until June 30.
Cathay's CEO Ronald Lam announced last month that the Hong Kong-based carrier would expand its passenger capacity this year by 10%, citing a strong demand for flights to North America and Europe, as well as Australia, after the Iran War cut off traffic in the Middle East.
Cathay?Pacific said that it plans to continue operating all scheduled passenger flights beyond June.
Executives said that the two-week?ceasefire? between President Donald Trump and Iran will not bring immediate relief to the aviation industry.
Officials in the industry have warned that jet fuel supplies will be tight and expensive for several months even if Iran were to reopen the Strait of Hormuz. (Reporting and editing by Anusha in Bengaluru)
(source: Reuters)