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Sources say that Chinese buyers are seeking alternatives to Middle East oil as they increase their purchases of Russian ESPO crude.
Four traders reported that the premiums for Russia’s Far East ESPO blend crude for delivery in November to China have risen to record levels as Chinese refiners increase their purchases amid shrinking Middle East and Iranian supplies. ESPO cargoes due to be delivered at the end October and November trade at a premium of over $7 a barr to ICE Brent. According to traders, offers have been heard up to a record-breaking plus $10 a barron on a shipped basis to China. Trading firms said that Sinopec, the state-owned Chinese refiner, was at the forefront of this buying spree, which reflects a strong demand for alternative crude oil supplies, as traders continue to express concerns about disruptions in shipments across Strait of Hormuz. As tensions in the Middle East threaten regional oil supplies, Chinese refiners are increasingly turning to Russian grades. Early trade on Wednesday saw oil prices rise by nearly 1%, after the United States & Iran exchanged strikes overnight. This fueled fears of more supply disruptions & reduced expectations of a near-term ease in tensions. Traders said that the strong Chinese demand for ESPO had already led to most of November's cargoes selling well ahead schedule. IRANIAN CRUDE IS NOW AVAILABLE AT A LOWER PRICE The traders reported that November ESPO cargoes started trading this week. Premiums for deliveries to China's independent re-finers (known as teapots) have risen to $10 per barrel delivered. The rally is a dramatic turnaround from the early?summer when ESPO blend cargoes were trading at discounts to ICE Brent. As demand has increased, October cargoes are now back in premium territory. The latest increase in crude oil prices was attributed to a decrease in the availability of Iranian crude. This has traditionally been the main source for teapot refiners from China. After the U.S. resumed its naval blockade mid-July it forced buyers to look for replacement barrels. ESPO blend, a product highly prized by Chinese refiners due to its proximity?and short shipping time, is now one of the biggest beneficiaries?of this shift in crude purchasing patterns. Participants in the market said that premiums will likely remain high as long as there is uncertainty about Middle Eastern supplies and Iranian imports.
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Iran's website shows that more ships are blacklisted for trying to pass through the Hormuz Strait.
According to a government website, Iran has added new ships that it considers non-compliant and subject to fines or confiscation if they try to sail through Strait of Hormuz. Tehran announced on August 24 that it had blacklisted 45 tankers for violating its rules to navigate the Strait of Hormuz and that any vessel transferring cargo would be subjected to action. This comes six months after the U.S.-Israeli war began. Updated on the website of the Persian Gulf Strait Authority, a body created by Iran to'manage the strait', eleven more ships have been added. The total number of blacklisted vessels is now '56. Sources in the shipping industry said that the update took place within the last 24 hours. Iranian officials have not responded to a comment request. This list is restricted to very large crude carriers, liquefied petroleum gas, liquefied natural?gas, and other clean product vessels. The PGSA website states that "any vessel cooperating (via STS oil transfer, transshipment), will be added to this list." To request removal from the area, vessels must submit an official application with reasons." ADNOC Logistics and Shipping of the United Arab Emirates, ADNOC subsidiary Navig8 tankers and Saudi Arabian national shipping carrier Bahri are among the owners of some of the previously named ships. Sources with direct knowledge told late August that after the announcement of the 'blacklisted' tankers, three Indian oil refiners, and one global energy'major, planned to stop using the vessels because of security concerns. The restrictions are likely to further restrict efforts to export oil through the strait. Traffic in this area, which handled 20% of all global oil and LNG shipments before World War II but has since been reduced to a trickle, is expected to continue to decline. The U.S. imposed sanctions?? on the PGSA? in May. This complicates any engagement with this body, which could result in the U.S. Treasury freezing assets if any fees or transactions are paid.
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Trump will meet with the CEOs of the travel industry to discuss tourism.
U.S. President Donald Trump will be meeting with executives from major travel companies on Wednesday, including American Airlines, Marriott, MGM Resorts, and Carnival, amid a drop in international visitors. The FIFA World Cup in this summer gave U.S. Tourism a "big boost". The U.S. tourism industry got a?a?big boost from the FIFA World Cup this summer. International arrivals in the U.S. dropped?5.5% in 2025. Travel officials cited a number factors, including long visa interview waiting times, higher airfare prices, stricter immigration policy, tariffs and U.S. restrictions on travel for certain countries. Commerce Department reported that overseas visitors have fallen another?4.7% from July 2026. The tensions in the United States and Canada have affected the number of visitors from Canada. Las Vegas, and border states are popular tourist destinations. The number of Las Vegas tourists is expected to drop by 7.5% in 2025. Trump will meet with members of U.S. Travel Association. Transportation Secretary Sean Duffy will also attend. Caesars Entertainment, Hard Rock International and IHG Hotels & Resorts are also participating, as well as Venetian, Raffles & Fairmont, Venetian, Raffles & Fairmont, Venetian, Raffles & Fairmont, Venetian, Raffels & Fairmont, Raffles & Fairmont, Venetian, Raffles & Fairmont, Raffles & Fairmont, Venetian, Raffles & Fairmont, Raffles Taylor Rogers, a White House spokesperson, said Trump will meet with travel companies to "celebrate the achievements that produced an historic summer travel season" and gave a boost to local economies and small business. The White House stated that it had made airport screenings easier by allowing passengers to leave their shoes on and adding "family screening lanes" at certain airports. The White House also wants to create biometric fast lanes to help returning U.S. Citizens and to make international flights more accessible. Over the past year, airport security lines and flight delays were slowed down by partial government shutdowns. U.S. Homeland Security Secretary Markwayne Mullin threatened in May to stop border processing at Newark, and possibly other airports in "sanctuary" cities. Travel groups warned it could cause chaos, leave thousands of tourists and Americans stranded, and stop vital cargo shipments.
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Southwest launches first airport lounges in order to expand premium appeal
Southwest Airlines announced plans on Wednesday to open the first airport lounges in its history. The carrier is stepping up efforts to attract higher-spending premium passengers and diversify revenue sources. The airline has announced that it will partner with JPMorgan Chase in order to launch the first airport lounges. It is working hard to shed its low-cost reputation and boost revenue by introducing assigned seating, extra legroom seats, and other product improvements. Airport lounges are a popular attraction for travelers. They offer a place to relax or work in peace, as well as complimentary drinks and food. They help airlines retain customers, drive premium fares, and increase spending on co-branded credit card. Southwest?will launch a co-branded Chase credit card by 2027, giving customers access to the?airport lounges. It plans to initially open four lounges, in Austin, Baltimore?, Honolulu?, and Nashville. The lounges are expected to open in late 2027. Fuel prices have risen sharply due to the U.S./Israeli war on Iran. This has squeezed already thin airline margins. Carriers that offer a strong suite of premium services are better placed to withstand the pressure, as they can attract travelers who will pay more for high-margin features such as lounge access and premium seating. Southwest Airlines has restructured its business in order to "better compete" with the network carriers, following pressures from Elliott Investment Management as well as lower profit margins due to the pandemic and activist investor Elliott Investment Management. In May, Southwest CEO Bob Jordan said that Southwest would be able to offer more cabin options including "true First Class" and will likely in the future expand into international long-haul flying. He said, however, that these were "still ideas". Jordan acknowledged previously that the carrier lost customers to competitors because it did not offer premium amenities such as airport lounges or serve destinations like London.
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Uber leaves Nigeria after 12 years in operation
Uber Technologies, a ride-hailing service, will stop?operations on 'September 2' in Nigeria. This marks the end of its 12-year presence in Africa's largest country. Uber announced that it would be closing its Nigerian operations after reviewing the business. It did not provide any further details on the decision. The competition in Nigeria's ride hailing?market has increased in recent years. Operators are facing challenges such as rising fuel prices, currency volatility, and inflation. These have led to higher operating costs and pressure on drivers and platforms. In a message to users, the company stated that "after a thorough review of our business we have taken the difficult decision to wind up our operations in Nigeria with effect from 2 September 2026." In 2014, the San Francisco-based firm launched in Lagos before expanding into other cities to meet the growing demand for app based transportation. Uber announced that its help centre will remain open until September 23 for users to resolve outstanding account issues. Uber didn't say how many drivers or riders would be affected or if any assets would sold.
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Ukraine asks aviation watchdog back ban on flights into Russian airspace
?Ukraine has urged ICAO to ask its member countries to ban all operations in russian airspace. This comes a day after the President Volodymyr?Zelenskiy?warned he it was "becoming totally unsafe". Top Ukrainian officials announced on Tuesday that the country will intensify its retaliation for Russia's increased strikes against Kyiv. The city has been on continuous alert since seven days, and it has also suffered attacks on civilian infrastructure. Ukraine will only target Russian military installations and not threaten civil aircraft,?Zelenskiy said, but he stressed that "the growing number of Ukrainian drones" in Russian skies should be taken into consideration. Mykola Kalashnyk, Ukraine's Infrastructure Minister, wrote to ICAO Chairman Juan Carlos Salazar in a letter that was exclusively shared with him. He said Kyiv believes the risk of tragedies should be minimized. Ukraine asked ICAO for encouragement to aviation authorities and airlines in order to protect civil aviation. "Including by facilitating full prohibition of civil aircraft operations by ICAO members states within the Russian Federation's airspace". Vladimir Putin, the Russian President, said that Zelenskiy’s remarks amounted "state terrorism". Moscow pledged on Wednesday to prevent any disruptions to civil aviation. In 2024, a?Azerbaijan Airlines?plane?headed to Russia's Grozny crashed-landed in Kazakhstan when it diverted from its course. Putin said that two 'Russian missiles' were detonated after Ukrainian drones invaded the airspace. When Russia began its full-scale invasion in February 2022 and launched missile barrages without warning civilian aircraft, Ukraine shut down its airspace. Since then, Ukraine has been without an airport. SkyUp, the only airline that is still operating, operates out of Moldova.
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Sources: Ethiopian Airlines is close to ordering Boeing cargo planes
Ethiopian Airlines has reached a 'deal to purchase up to 10 Boeing long-haul freighters, as it moves forward with plans to build a new African hub to compete with Gulf carriers. Sources said that the deal will likely include two Boeing 777F aircraft of the current generation, which would help the U.S. planemaker to bridge the gap until the new 777-8F model is ready. This is expected to be the remainder of the order. A source stated that the order will include eight to 10 aircraft, if there are no last-minute changes. Boeing refused to comment on speculation. Ethiopian Airlines had ?no immediate comment. Boeing will cease production of the widely-used 777F by the end of 2027 under international emission rules. This will close a profitable chapter after sales of over 400 units. Boeing has been under pressure to continue making the current 777F to avoid its supply chain going cold due to delays in developing the successor of the 777 jets, the 777X. This includes the new 777-8F freight model. Boeing requested a waiver from the Federal Aviation Administration in December to allow it to deliver 35 more 777F cargo aircraft, citing a strong demand for the planes and a delayed certification of 777X. The FAA stated on Tuesday that the waiver request was still pending, and that no decision had been made. Boeing's request will allow them to meet some demand up until the new 777-8F enters service. Boeing was confident that the exemption would be approved. According to a FAA filing, Boeing builds two 777F Freighters per month.
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Europe could accelerate satellite launches to meet demand
The European Space Agency is looking at increasing the launch schedules for Ariane 6 & Vega C rockets over the next few years to overcome a possible bottleneck in satellite launches. Aschbacher, the Director General of the DG, told reporters that an immediate decision was needed if projections were correct and a surge in demand would peak by 2030. Arianespace's latest?projection? calls for nine or ten launches of Ariane-6 rockets per year starting in 2027. Aschbacher, a member of the AJPAE aerospace association, said that based on Europe's scientific missions and other missions as well as... possible further interest from Amazon or other commercial activity there is... more?demand? than planned capacity. Amazon has already ordered 18 launches. "Ofcourse, the question is: Can we satisfy all of these launches?" Aschbacher stated that this is exactly what we are doing at the moment. "We are investigating the costs and benefits... You can imagine that this is not trivial," said he. "We have already made some progress in these estimates. But it is also?clear... that if you want to meet?launch requirements by 2030, we will need to take a quick decision to?build the capacity needed." Arianespace, the subsidiary of Airbus and Safran rocket venture ArianeGroup declined to comment before a scheduled regular press briefing on September 7.
Gulf crisis affects Australian and New Zealand companies, from airlines to banks
The U.S. and Israel war on Iran is causing financial stress for companies in Australia and New Zealand. Higher fuel prices are a major factor, as they increase inflation, erode consumer and business confidence, and reduce corporate earnings.
Below are some companies in Australia and New Zealand who have reported an impact of the Middle East conflict.
Air New Zealand, New Zealand's national carrier, suspended its full-year earning outlook in early March and announced that it had increased fares because of volatility on the jet fuel market. It was one of the first carriers who announced price increases.
On April 7, the airline announced that it would cut flights by 4% in May and June. This will affect around 1% of passengers and 4% of flights.
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 has slashed their full-year operating profit forecast by approximately A$20million ($14.17million), due largely to higher costs, reduced activity and timing differences when it comes to cost recovery.
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 referrals for hearing aids, and a softer consumer attitude. The company stated that the Middle East War has increased risks such as order cancellations, delays in delivery, and a higher exposure to receivables. It also said that restructuring costs and margin pressure have been worsened by the Middle East conflict.
Endeavour Group: Pub-operator Endeavour warned of fuel and freight inflation due to the war in Iran, which would increase their supply chain costs by A$6-A$8 million.
The company said that it was experiencing price pressure in its entire supply chain because of?higher fuel prices linked to the Middle East Conflict.
Owner of liquor chain Dan Murphy's, has launched a three-year drive to improve efficiency. The goal is to save A$100,000,000 by 2027, by reducing the number of support offices and optimising store layouts, among other things.
Fletcher Building, New Zealand: Fletcher Building, New Zealand, said that it is 'indirectly exposed to the Middle East conflict through supply chains, freight lines, energy costs and the wider economic impact on the construction demand in Australasia.
Construction materials manufacturer expects to increase prices in all divisions. Plastics will be affected by price increases of up to 36%. Other divisions will only see a 1%-5% increase.
Fonterra New Zealand, a dairy producer, said the conflict could impact its supply chain and increase its inventory and costs in second half of year. It also contributed to volatility in global commodities prices.
National Australia Bank: National Australia Bank said that it expects credit impairment charges of A$706 ($504.44 millions) in the first fiscal half 2026.
NAB stated that the volatility of interest rates in the second quarter, the weakening 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 cancelled the 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: Australia's flag-carrier, Qantas Airways has raised its fuel costs outlook for the second half year by as much as A$800,000,000 and announced that it had not yet started its planned A$150,000,000 share buyback, citing the sharply increased and volatile jet fuel price.
Qantas has raised fares to offset the rising cost of its flights and shifted them towards stronger routes, such as Paris or Rome, where the demand is still strong. They have also reduced their domestic capacity in June by approximately 5 percentage points.
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 that the recent events may support a rapid acceleration of investment in alternative energy projects which could be beneficial for the firm.
Virgin Australia: Virgin Australia expects fuel costs to increase by around A$30 to A$40 million ($21.39 to $28.52 millions) in the second half fiscal 2026.
In mid-March, the airlines announced that they were adjusting their fares due to the rising costs in the aviation industry.
Westpac: Westpac, Australia's no. Westpac, Australia's no.
Westpac's net margin for its Treasury and Markets division has been weakened amid the interest rate volatility caused by the conflict. A weaker outlook had already led to higher credit provisioning.
Westpac has increased its provision for bad debts since the COVID-19 pandemic.
Woolworths Woolworths is the largest Australian supermarket. It said that the Middle East conflict had created uncertainty for both customers and suppliers. This has exacerbated the already severe cost of living pressures.
The company also warned that the domestic food segment's earnings growth would not reach the top end of the range in fiscal 2026 due to fuel price pressures, and customer retention investments.
Woolworths has also announced that it will freeze the prices of 300 household staples from May 1 for three months, as cost pressures imposed by conflict on Australian suppliers are driving up prices across all supermarkets.
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 still aimed to increase revenue in fiscal 2026.
(source: Reuters)