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Ukraine renews its attacks on Russian energy sites. What has been struck?
In recent months, Ukraine has intensified its attacks on Russian energy installations as the peace talks failed to progress. Here is a brief summary of the recent attacks and their impact. Two industry sources have confirmed that Rosneft’s Syzran refinery, owned by Rosneft, has suspended oil refining following drone attacks on 18 April which damaged processing equipment. The Syzran refinery can process around 170,000 barrels of oil per day, or 8.5 million tons per annum. According to industry sources, it processed 4.3 millions tons of crude oil in 2024 and produced 800,000 tonnes of gasoline, 1,5 million?tons diesel, and 700,000 tonnes of fuel oil. Two industry sources confirmed that the *NOVOKUIBYSHEVSK primary?oil?processing has been stopped at Rosneft's Novokuibyshevsk refining facility since April 18, following a Ukrainian drone strike. Industry sources claim that in 2024, the refinery will process 5.74 million metric tonnes of crude oil and 1,10 million tons each of motor gasoline, diesel fuel, and fuel oil. *TUAPSE The Russian Tuapse refinery has halted its operations after a drone attack in Ukraine on April 16. The refinery has a production capacity of 12 million metric tonnes per year or about 240,000 barrels a day. It produces fuel oil, naphtha and vacuum gasoil. NORSI NORSI - Russia's fourth largest oil refinery, owned by Lukoil, halted operations on 5 April following an attack by a Ukrainian drone, according to two industry sources. NORSI is Russia's second largest producer of gasoline and can process up to 16 million metric tonnes of oil each year. That's around 320,000 barrels of fuel per day. Sources say that Kirishi, a Russian oil refinery, may resume some production in a month. The refinery halted its processing at the end March after Ukrainian drone attacks caused fires. Sources claim that three of the four primary unit are expected to return to operation, which would equal around 60% of nominal primary capacity. Kirishi produced 6.1 million tonnes of fuel oil, 6.1 millions tons of diesel and 600,000 tones of bitumen last year. UST-LUGA PLANT FOR PROCESSING Russian energy company Novatek'suspended the processing of gas condensate and exporting naphtha at its Ust-Luga facility after drone attacks resulted in an fire, according to three sources. Three processing units of the Ust-Luga Complex, each with 3 million tons per year capacity, refine stable condensate to light and heavy naphthas, jet fuels, ship fuel oils, and gasoils. According to company data, in 2025 the complex will have processed 8.0 millions tons of gas condensate. UFA Ukraine’s military has said that it has struck Russia’s Bashneft Novoil oil refinery over 1,400 km from the Ukrainian border. The plant can process up to 7 million tonnes of oil per annum. SARATOV REFINERY According to sources, the Saratov refinery controlled by Rosneft was attacked by a drone in March and since then, its crude distillation unit is no longer operational. The refinery will process 5.8 million tons of oil in 2024, which is 2.2% of the total Russian oil refining. ILSKY REFINERY On February 17, a fire broke out in the Ilsky oil refining plant, located in southern Russia. The fire was caused by drone attacks. According to officials in the region, the fire was completely extinguished on February 18. Exports are the main focus of Ilsky's refinery. It has a processing capacity of 6 million tons of crude oil per year. VOLGOGRAD RIFINERY According to sources, the Volgograd refinery owned by Lukoil was closed on 11 February as a result drone attacks. Drones targeted, amongst other facilities, CDU-1, the primary oil processing unit, whose daily capacity of 18,600 tonnes represents around 40% of refinery total. The Volgograd refinery will process 13.7 million tons?oil in 2024. UKHTA RIFINERY According to officials in the region, a drone attack caused a fire at the Ukhta Refinery owned by Lukoil on February 12. Sources claim that the CDU-1 primary oil processing unit caught fire. The unit's capacity is approximately 6,000 tons per a day or one third of the refinery. The?Ukhta Refinery in northern Russia will process around 3,000,000 tons of oil by 2025. AFIPSKY REFINERY According to officials in the region, a fire broke out at the Afipsky Refinery on January 21, as a result of drone attacks. Exports are the main focus of the refinery. In 2024, it will process 7.2 million tons of crude oil or 144,000 barrels a day. A SBU official from Ukraine confirmed that Ukrainian drones had struck an oil pumping and dispatch facility located in Russia's Samara Region overnight. Kazakhstan reported early in April that?CPC oil exported via the Black Sea was stable after Russia announced an attack. Chevron, a U.S. oil major, said that crude oil exports were uninterrupted from the Tengiz vast field. Ukrainian drones started a fire in Russia's Sheskharis terminal at the beginning of April. Alexander Drozdenko, the local governor, said that a Ukrainian drone attacked in Primorsk on Russia's Baltic Sea coast early this month damaged a portion of piping for oil. Primorsk is one of Russia's biggest export ports, capable of handling 1 million barrels of oil per day. Last month, Ukrainian drones destroyed at least 40% its storage facilities. Barbara Lewis (Reporting and editing)
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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 aviation industry around the world. Airlines have been forced to increase fares and revise 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 as much as a quarter of its operating costs. Here is an alphabetical list of the ways airlines are responding to this issue: AEGEAN AIRLINES The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs, will have "a significant impact" on their first-quarter earnings. AIRASIA Malaysian Airlines executives announced that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%. AIR CANADA The Canadian largest airline plans to reduce four of its daily flights to New York because of higher fuel prices. From June 1, 2026, the four flights to JFK International Airport to be cut will no longer operate. AIR FRANCE-KLM The airline group?said that it planned to raise long-haul ticket price to address rising fuel costs. Cabin fares are set to increase by 50 euros ($59). The Dutch arm of the group,?KLM, announced on April 16 that it would cancel 160 flights across Europe in the next month due to rising fuel prices. AIR INDIA The Indian airline said that it will change its fuel surcharge system from a flat surcharge for domestic flights to one based on distance. The Indian carrier said that surcharges for international routes do not compensate the steep rise in fuel costs. AIR NEW ZEALAND On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict erupted. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets. 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. ALASKA AIR The airline retracted its profit forecast for the full year and warned that margins would be severely impacted by the sharp increase in fuel prices. It has also reduced capacity in certain markets. AMERICAN AIRLINES The U.S. carrier announced that it would increase the fees for checked baggage by $10 for each of the first two bags, and $150 for the third bag on short-haul and domestic flights. The airline also reduced certain benefits for passengers in economy class. ASIANA AIRLINES Newsis reported that the?South Korean airline would cut 22 flights from April to July due fuel price increases. CATHAY PACIFIC A term sheet reviewed on April 22 showed that the airline group intends to issue Hong Kong dollar fixed rate notes of three years' maturity with an initial price guide in the area of 4.1%. 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. CHINA EASTERN EXPRESS AIRLINES Air China said that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800 km will be charged a surcharge of 60 yuan, and flights above 800 km will be charged a surcharge 120 yuan. DELTA AIR LINES Delta announced that it would reduce capacity by 3.5 percentage points compared to its original plan, and increase fees for checked baggage?to offset the rising costs of jet fuel. The increase will be $10 for first and second bags and $50 on third bags. The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations. EASYJET EasyJet has warned that it will suffer a larger half-year loss before tax of between 540 and 560 millions pounds ($730 and $757million), which includes 25 million pounds of extra fuel costs for March. FRONTIER AÉRIENS Fuel prices have risen'significantly' since the airline issued its outlook. GREATER BAY Airlines The Hong Kong-based firm said that it will increase fuel surcharges for most routes on April 1, but keep them the same on routes to mainland China and Japan. HONG KONG Airlines Air China said that it will increase fuel surcharges up to 35% on flights between Hong Kong, the Maldives, Bangladesh and Nepal. The most dramatic increases are expected to occur for flights between Hong Kong, the Maldives and Nepal where the charges will rise from HK$284 to HK$384 (49 dollars). British Airways' owner IAG stated in March that it did not intend to increase ticket price immediately as it had hedged a large amount of fuel for the short to medium term. INDIGO India's largest airline announced that it will introduce fuel charges for domestic and international flights starting March 14. The charge for flights into the Middle East is 900 rupees and for flights into Europe, 2,300 rupees. JETBLUE Aiways Joanna Geraghty is the CEO of this low-cost airline based in the United States. She told her employees, via a memo, that she would not be considering bankruptcy for the year 2012, despite the fact that rising jet fuel prices threaten the financial recovery. According to a SEC filing, the company has entered into a debt financing agreement worth $500 million. Sources with knowledge on the subject have confirmed that KOREAN will be entering emergency management mode in April as oil prices continue to rise. LUFTHANSA The airline group announced that 20,000 short-haul flight would be removed from the schedule until October. This is equivalent to 40,000 metric tonnes of jet fuel. The German company had previously announced that it would be grounding 27 aircraft servicing its CityLine short-haul subsidiary earlier than expected. PAKISTAN INTERNATIONAL FLIGHTS Fuel surcharges are cited as the reason for raising domestic flight prices by $20, and international flights by up to $100. QANTAS AIRWAYS Qantas, Australia's national airline, has delayed a planned A$150m ($107m) buyback. It also increased its fuel estimate for the second half 2026 from A$2.5bn to A$3.1bn-A$3.3bn. Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "couples of hundred" flights. SPIRIT AIRLINES Air Current reported that people familiar with the situation said the U.S. low cost carrier requested hundreds of millions in emergency funding from the Trump administration to offset the rising fuel prices and prevent a potential liquidation. SPRING AIRLINES Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced in due course. SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES The American carrier announced that it would increase checked baggage fees for the first and second bags by $10 each, or $45 for first bag and $55 second. The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues. THAI AIRWAYS The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices. The European airline, tour operator and travel agency?cut their full-year profit forecast and suspended revenue guidance. They said they had incurred an additional cost of?about forty million euros due to the March war, including repatriation and operational disruptions. TURKISH AIRLINES LUFTHANSA SunExpress is a joint venture of Turkish Airlines and Lufthansa. It announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and the Middle East, starting May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1. Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead choosing to keep earnings and preserve cash. T'WAY AIR As part of the measures taken to combat the effects of war, the South Korean low-cost airline said that it would furlough cabin crew in May and/or June without pay. UNITED AIRLINES UNITED AIRLINES forecast second-quarter profits and a full-year profit below Wall Street expectations. The airline said that it would recover only 40-50% through fares and revenue measures during the second quarter. This figure was expected to improve to 70-80% by the third quarter and up to 85-100% in the fourth. Chicago-based airline United Airlines announced previously that it would cut unprofitable flights in the coming quarters, and increase the first and second checked baggage fees by $10. This applies to customers traveling within the U.S.A., Mexico Canada, and Latin America. VIETJET Vietnamese budget airline has said that it has adjusted flight frequencies on certain routes due to possible fuel shortages. VIETNAM Airline Vietnam's Aviation Authority announced that the carrier will cancel 23 flights per week on domestic routes starting in April after it requested assistance from the government to remove an environment tax on jet fuel. VIRGIN ATLANTIC Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability. VIRGIN AUSTRALIA Virgin Australia has said that it expects an increase of jet fuel costs of between A$30 and A$40 million in the second half of the fiscal year. It also anticipates a 1% decrease in capacity for the fourth quarter. VOLOTEA The Spanish low cost airline has introduced a new pricing strategy that links ticket prices with fuel costs. This could add an additional surcharge after purchase of up to fourteen euros per passenger per flight. The Globe and Mail reported that WESTJET, a Canadian airline, has reduced its seat capacity in June. The Canadian Press reported previously that the airline would add C$60 ($44.50) to certain bookings, and combine flights due to rising costs.
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The flagship Mayan tourist trains in Mexico leaves a trail of broken promises
In the Maya jungle of Mexico, a series of brilliant white lights are blazing in the darkness. It is a depot for a multi-billion dollar train line. Just beyond the perimeter fence, a village off-grid is in complete darkness. Mexico's Mayan train, a rail project of approximately 1,500 km (1,000 miles) in length, was designed to improve infrastructure and increase tourism to the impoverished southern part of the country. Two years after its launch, the project is still struggling. Tickets sales only cover a small fraction of the operating costs, and most hotels along the route are empty. Local communities say that despite government promises they have not seen any benefits. Census data and interviews with residents of towns near the line revealed that poverty is entrenched, and good-paying employment is hard to come by. Residents in Vida y Esperanza – "Life and Hope", as it is known in English – just steps away from a railway maintenance depot had hoped that the train would bring about change. Mary Sandra Peraza is a 30-year old mother of four. The power lines for the train are almost directly above her home. She relies on a solar panel and generator that she rents to meet her family's needs. She said, "There is no real benefit to us." Peraza prepares breakfast in the small outdoor kitchen on a propane-powered hotplate before dawn. The village's only primary school is located a few meters from the depot, but it lacks grid electricity to power fans, computers, or even stable light. Lidia Patricia Chan US, known to her 35 students simply as "Maestra Pati", has been trying for years to connect power. The authorities have informed her that electricity cannot be installed before the land under the school has official titles. Red tape is common for rural plots such as this one, but the woman had hoped it would change with the arrival a mega-project that was supposed to spur progress and development. Chan Us stated that "at first, when the project was introduced, we were very happy." She said that some residents sold food for construction workers. This was beneficial to the community. "But as soon as the construction was over, the food disappeared." According to official statistics, in the state of Quintana Roo where Vida y Esperanza resides, the number of homes with electricity fell slightly over the construction period of the railway line, despite the fact that new substations to power the line were constructed. The Mexican public education ministry and the defense ministry that oversee the operation of the state-owned company via which the train is operated did not respond when asked for comments. MAYA HAS LONG LIVED WITH POVERTY Former President Andres Manuel Lopez Obrador pushed the Mayan Train route, which connects cities and archeological sites in the Yucatan Peninsula. This was a way for him to help indigenous Maya communities develop and to spread tourism outside of?beach resorts such as Cancun. Government data indicates that this development has yet to take place. Quintana-Roo's economic growth grew by 13.2% in 2023 as a result of federal spending on the Mayan Train. However, this was a temporary boost due to construction. According to the latest statistics from the INEGI, the state's economy contracted by 9.7% in the first nine month of 2025. Quintana Roo has reduced unemployment and increased formal hiring. However, about 60% of Yucatan workers are still in informal employment without any legal or social protection. Mayas in Mexico's south-east have been marginalized for centuries. They face high poverty rates, and they are unable to access services. Many community activists claim that while governments have for decades promised development, their forests have been fragmented. Their communal lands have also been eroded. The government has pushed forward the project under the national security exemptions, despite legal challenges from environmental groups and Indigenous Communities. The land is a sacred inheritance for many Maya. It is central to their identities and links them with their ancestors. "I am outraged at the way they acted, because they did not take us into consideration," said Eliseo ek, 45, a Quintana Roo Indigenous activist who lives in the community of Nicolas Bravo. EMPTY WORDS AND EMPTY TAPS Nicolas Moreno Jimenez is a 50 year old beekeeper/farmer who lives in a modest concrete house near a train line. The tap in his modest concrete home does not work. Lopez Obrador said that the chronic water shortages in the town would be addressed by the Adolfo Lopez Mateos Xpujil aqueduct he will inaugurate in January 2024. How can we build such a large project as the Mayan Train without bringing in water? Lopez Obrador spoke at the event. Moreno stated that the taps were still dry. Moreno called the promises of the former President "empty words". He brings water from another community by car every week so that his son, an university student, may bathe, wash the dishes, and flush toilets. Data shows that 70% of Campeche's population has access to running water. EMPTY SEATS and EMPTY Rooms The train has also struggled to draw the desired interest. Legal challenges, environmental rerouting, and land restrictions forced key segments to the interior and many stations were far from airports and city centers, making this a less viable option for tourists. In November 2025 I visited three stations, all of which were largely empty. On a weekday trip between Bacalar and Chetumal, fewer than 40 seats out of 230 were occupied. Lopez Obrador had projected that the train would carry 3 million passengers a year when it was finished. That number has since been reduced to 1.2 millions. The project budget has risen from $7 billion to over $25 billion. Revenue last year covered less than 13% operating costs. Six Tren Maya Hotels have also been built along the train route. The Calakmul Reserve, which is surrounded by jungle and has two pools, offers modern amenities. One night in November the hotel was only 20% full, according to a staff member at the reception. According to government data, these properties had an average monthly occupancy rate of between 5% and 24 % for most of the last year. The agency of the defense ministry that operates the hotels did not respond to a comment request. Claudia Sheinbaum, the current Mexican president, has refuted claims of a problem with 'the train' and called it a successful project. She regularly highlighted tourist packages in her daily press conferences and suggested that railway lines could be used to transport freight. The hotels have been a particular blow to Moreno. His family was displaced by the government decades ago, when it created the Calakmul Reserve. This UNESCO World Heritage Site is intended to protect the ruins and biodiversity of the once mighty Mayan Empire. Moreno said, "We've been here since 1980." "They removed us 1993." Now they are building hotels in places where we cannot even stay. Moreno said, "In press conferences, they always say that the poor are first." "But they take our rights." Reporting by Cassandra Garrison, Additional reporting by Daniel Becerril, Paola Chiomante and Daniel Wallis; Editing by Rosalba Brien and Daniel Wallis
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Norway suspends new industrial power grid access to the Arctic region due to surging demand
Norway announced on Wednesday that it will halt the 'allocation of power grid connections' to major industrial plants located in its Arctic region due to a 'capacity constraint caused by a burgeoning plan for new consumption from industries like data centres. Statnett, the national transmission grid operator, said that the temporary stop on processing new requests over a threshold of 5 megawatts (MW) applies to the area north of Svartisen near the city Bodoe. Statnett's Head of System Planning, Gunnar Lovaas said that "the electricity demand from Svartisen to the north will grow so rapidly in the coming years, the system may not be able to meet it." Statnett stated that the consumption for the affected region is currently 1,500 megawatts. There are also reservations to connect 1,150 MW new consumption, and 1,100 MW capacity in waiting. Grid operator says that existing reservations will be honored, but projects on the waiting list will not progress. The availability of cheap electricity from renewable sources, such as wind and hydropower, has made the north of Norway a favorite destination for companies that plan to build data centres with high power requirements or produce hydrogen and ammonia. Over a 10-year period, the consumption of electricity in the area north of Svartisen will?increase?by approximately 60%. Statnett stated that without a comparable increase in power generation, the region will need to import more electricity and face grid bottlenecks. It added that limiting large grid applications would allow for continued growth by smaller and medium-sized companies who are seeking access below a threshold called normal consumption of up to five megawatts, which is handled by local grid operators. (Reporting and editing by Terje Solsvik, Nora Buli)
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Gulf crisis affects Australian and New Zealand companies, from airlines to banks
As fuel prices rise, they are causing inflation and affecting consumer confidence, while also weighing on the earnings of Australian and New Zealand companies. Some of the companies from Australia and New Zealand have reported an impact on their business due to the Middle East conflict. Air New Zealand, New Zealand's flag airline, announced that it would be raising fares in response to the volatility of jet fuel prices. It was one of the first airlines to do so. The airline announced on April 7 that it would cut flights by 4% and 1%, respectively. Auckland International Airport, New Zealand: Auckland International Airport reported that flights to the Middle East from Auckland were affected. In March, the number of passengers on Middle Eastern routes dropped by 81% and seat capacity fell by 73% compared to a year earlier, according to airport operator. New Zealand-based a2 Milk has cut its profit forecast for fiscal 2026 as higher freight costs and supply chain disruptions due to conflict have affected the availability of the China-label infant formula product on its largest market. Cleanaway Waste Management - The company has slashed their full-year operating profit forecast by approximately A$20million ($14.17million), due to higher costs, lower activity and differences in timing of cost recovery. Cochlear: Cochlear, an Australian manufacturer of hearing implants, has lowered its profit forecast for 2026 due to weaker trading on developed markets. The company cited slower surgical volumes, lower hearing-aid referrals, and softer consumer confidence. The company stated that the Middle East War?has increased risks of order cancellations and delivery delays, as well as higher receivables. This has worsened margin pressure, and restructuring costs. Fletcher Building Fletcher Building in New Zealand said that it is indirectly affected by the Middle East conflict through supply chains, freight lines, energy costs and a broader economic impact on the construction demand throughout Australasia. Construction materials manufacturer expects to increase prices in all divisions as a result of passing on costs to its customers. The company will increase prices by up to 36 percent in plastics, where it says they are most vulnerable. Other divisions can expect a 1%-5% price hike. Fonterra New Zealand, the dairy producer, said that the conflict could impact its supply chain and increase its inventory and costs in second half of year while also contributing volatility in global commodities prices. National Australia Bank: National Australia Bank expects to incur credit-related impairment charges in the amount of?A$706 ($504.44 millions) during the first half fiscal 2026. NAB stated that the volatility of interest rates in the second quarter, the weaker New Zealand Dollar and the increase in provisioning would result in a reduction of the common equity tier one capital ratio for the group by approximately 20 basis points on March 31. The company also plans to apply a discount of 1.5% to its dividend reinvestment program for the first half to raise A$1.8 billion and help strengthen its balance sheet. Orora Packaging Company: Orora has lowered its earnings forecasts for its French division Saverglass, and canceled its share-buyback program. The company cited the impact of war. Due to the closures of shipping routes, the company also stopped bottle production in its glass production plant at Ras al-Khaimah (United Arab Emirates). Qantas Airways: Qantas Airways is Australia's national carrier. It has raised its fuel costs outlook for the second half of this year by as much as A$800,000,000 and announced that it had not yet begun its planned A$150,000,000 share buyback, citing volatile and sharply increased jet fuel prices. Qantas has increased fares to offset the rising cost of its flights and shifted them towards stronger routes, such as Paris and Rome where demand is strong. They have also reduced domestic capacity by 5 percentage points during the second quarter. Qube Holdings : Qube anticipates that the Middle East conflict will have an impact on its EBITA of between A$10 and A$20 million in fiscal 2026. The logistics company said, however, that recent events could encourage an increase in investment in alternative energy projects. This could be beneficial for the firm. Virgin Australia: Virgin Australia expects a fuel cost increase of A$30 to A$40 Million ($21.39 to $28.52 millions) in the second half of fiscal year 2026. In mid-March, the airlines announced that they were adjusting their fares due to rising costs in the aviation industry "exacerbated" by the Middle East situation. Westpac: Westpac, Australia's no. Westpac, Australia's no. Westpac's net margin for its Treasury and Markets division has been?weaker due to interest rate volatility related to the conflict. A weaker outlook is already leading credit provisioning. Westpac's provisioning of potential bad debt has reached its highest level since the COVID-19 pandemic. Worley: Worley estimates that the negative impact of the Middle East Conflict on its underlying EBITA in fiscal 2026 will be between A$30 and A$40 Million. The Australian engineering company warned that it would not be able to grow its underlying EBITA by more than 5% in fiscal 2026 but continued to aim for higher revenue growth than fiscal 2025.
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TUI reduces full-year operating profit forecast on Iran war
German tourism group TUI cut its full-year operating profit (EBIT), and suspended their revenue guidance on Wednesday, citing the uncertainty caused by the ongoing Iran War. It expects its underlying EBIT to be in the range of 1.1-1.4 billion euros for its fiscal year that ends September 2026 ($1.3-$1.6billion). It had previously expected an increase of 7-10% from the 1.4 billion euros in the previous year. The group stated that the conflict in the Middle East, and the uncertainty about its duration, continue to limit consumer confidence in the near term. The 'group's Markets + Airline & Hotels & Resorts has suffered from a partial shift of customer demand - away from Eastern to Western mediterranean destination in the wake if the Middle East conflic. Customers are exhibiting a heightened level of caution and booking nearer to departure dates. ($1 = 0.8511 Euros) (Reporting and Editing by Miranda Murray, Linda Pasquini)
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Gulf markets mixed after Hormuz ceasefire dampens optimism
The major stock markets in the Gulf were?mixed? on Wednesday as caution?over?the continued closure of?the Strait?of?Hormuz offset?U.S. Trump's decision to extend the ceasefire indefinitely with Iran was a major factor. Trump announced on Tuesday that he will extend the ceasefire in order to facilitate further peace talks with the aim of ending the war, which has claimed thousands of lives and shaken the global economy. The U.S. Navy maintained its blockade on Iran's coastline and ports, which Tehran called an act of warfare. The Strait of Hormuz, which is responsible for around 20% of global oil and gas supplies, was largely a standstill Tuesday. Only three ships had passed the waterway in the past 24 hours, according to shipping data. Dubai's main stock index rose 0.3% thanks to a rise of 1.7% in Emirates Integrated Telecommunications. Air Arabia, however, fell 2.1%. In Abu Dhabi, the index increased by 0.2%. Saudi Arabia's benchmark Index fell 0.2% due to a 0.5% drop in Al Rajhi Bank. However, ?oil major Saudi Aramco rose 0.2%. Brent crude futures were flat at $98.47 per barrel, despite a swing between gains and losses. The Qatari Index fell by 0.1% and the Qatar Islamic Bank lost 0.7%. (Reporting by Ateeq Shariff in Bengaluru. Mark Potter edited the article.
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The ministry has stated that no Kazakh crude will be able to reach Germany's PCK Refinery after May.
Germany's economy ministry said on Wednesday that it has been informed by the country's oil company that no crude oil from Kazakhstan will be able to reach the PCK Schwedt Refinery in the northeastern part of the country after May. It added that the production and sale of petroleum products would not be affected. On Tuesday, three industry sources told us that Russia will stop oil exports from Kazakhstan via the Druzhba Pipeline starting May 1. This would affect PCK directly as it is one of Germany's largest refineries and also supplies Berlin. The Ministry, which controls Schwedt through a?trusteeship, stated that Schwedt’s?majority-owner Rosneft informed it of the move, and added that the Russian Government had not confirmed this yet. The German Economy Ministry issued a statement saying that Rosneft Deutschland was assessing the situation and would adapt to "any new situation". "Rosneft Deutschland understands its responsibility and will fulfill its obligations." аке, the existing options will also be used to ensure "security of supply" in Germany. The ministry said that the lack of Kazakh oil deliveries at the refinery did not "ultimately compromise the security of supply of petroleum products in Germany". Rosneft Germany was not immediately available to comment. (Reporting and editing by Matthias Williams, Thomas Seythal, and Christoph Steitz)
S&P PE may look cheap, but oil prices are still a concern
Wall Street is roaring back to record-highs despite the uncertainty surrounding the conflict in Iran. This risk has been highlighted by the'steady drumbeat' of CEOs warning about the economic impact of prolonged high oil prices.
Why? Stocks look cheap. S&P 500 is trading at 20.8 times the expected earnings of its constituents over the next year. This price-earnings is at its lowest level in a year. It suggests that U.S. stock are better to buy than they were at the beginning of 2026 when the benchmark was trading at more than 22 times earnings.
Investors and market participants expect the war against Iran to be over relatively soon, so they discount the long-term impact of this war. Oliver Pursche is a senior vice president with Wealthspire Advisors, based in Westport, Connecticut. He said that the U.S. economy and consumer continue to do well. The Strait of Hormuz is largely closed for oil tankers until a ceasefire of two weeks expires. Washington and Tehran are still far apart in their efforts to resolve this conflict.
According to an analysis of transcripts, about two-thirds (or 67%) of S&P companies who have announced quarterly results since April began have expressed some level of concern over energy prices in their analyst conference call. Comparatively, 17% of S&P companies that reported results between January-March expressed concern about energy prices. GE Aerospace CEO Larry Culp said on Tuesday that the company would not have increased its?forecast if it weren't for the current uncertainties, citing a positive first quarter with a good outlook into the second. The Ohio-based firm said that its outlook assumes an even more cautious second half. This includes the possibility that airlines will reduce maintenance, delay engine deliveries and cut expenditure if activity weakens. GE shares fell 6%.
GREAT EXPECTATIONS FOR WALL STREET
Analysts and portfolio managers claim that despite the caution expressed by GE, stock buyers are comforted by the cheapness of the market, largely because they expect earnings to surge this year.
Investors will test the valuation over the coming weeks to see if rising profit expectations can withstand concerns about high energy costs. The greatest risk is the outcome of the Iran war, especially if higher energy prices or higher prices in general start to sap consumer expenditure, said Rick Meckler.
He said that disruptions in the supply chain could affect earnings.
The modest P/E ratio of the market is not due to falling stock prices. Analysts have increased their earnings estimates, mostly because of optimism regarding artificial intelligence. If companies fail to meet these high-bar expectations, it could make U.S. stock prices look expensive and undermine a major support for recent rally.
Key Risks to a Sharp Rally
LSEG data shows that while the S&P 500 is up about 4% this year, earnings expectations for 2026 have jumped from 16% to nearly 20% in just one week. The majority of this increase is attributed to technology companies, followed by energy and materials firms.
In recent days, several?companies? have already warned that high energy costs could affect their costs, the demand for their product and the overall economy. Tesla, Intel, Procter & Gamble, and American Express are also big players reporting results this week.
Delta Air Lines cited high jet fuel prices earlier this month as the reason for pulling all planned capacity increases for the current quarter. The company also forecast profits below Wall Street expectations. Some companies have noted the risks of 'high energy prices, but say it is not a major issue. PepsiCo stated that it hedges its energy costs for 6-12 months.
The PE of the benchmark has risen from as low a 19.4 in April but remains very close to its average over the past 10 years, which is about 19. Last year, the S&P 500 was at these levels after global markets fell following U.S. president Donald Trump's Liberation Day Tariff announcements.
Another key risk for the recent market rally is that Wall Street's AI giants could fail to meet investors' increasing expectations. PHLX's chip index has risen by over 25% since April, due to the expectation of a continued high demand for AI data centers. If there is any indication that AI may not be as strong as anticipated, this could lead to a reversal of gains.
(source: Reuters)