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US crude oil prices drop by more than 1% as traders assess supply risks
U.S. crude oil prices fell more than 1% on Tuesday, as investors weighed up the impact of?Iranian?attacks?on ships in the 'Strait of Hormuz? and the news that Maersk operated a U.S. flagged ship which had passed through the strait with U.S. Military. U.S. West Texas Intermediate traded at $104.88 per barrel by 2236 GMT, a drop of $1.54 or 1.5%. Maersk announced that the Alliance Fairfax - a U.S. flagged vehicle carrier operated by Farrell Lines - left the Gulf on Monday accompanied by U.S. Military assets, alleviating immediate fears of a supply disruption. U.S. Central Command, Centcom, said on X Monday that American forces are actively assisting efforts to restore commercial ship traffic through the Strait of Hormuz. The oil prices jumped by more than 6 percent on Monday, after U.S. president Donald Trump launched a new effort to reopen Hormuz for shipping. This prompted Iran to retaliate to keep its grip on the vital energy transit route. Several commercial ships were reportedly hit, and a UAE oil terminal was set ablaze 'after an Iranian attack' as Trump's attempts to use the U.S. 'Navy' to free up'shipping' provoked the biggest 'escalation' in the war since a ceasefire declaration four weeks ago. (Reporting and editing by Nia William and Himani Sarkar; Anushree mukherjee, Bengaluru)
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American Pilots Union Chief says United CEO's idea of a merger showed 'boldness'
The head of American Airlines pilots' union told members that United Airlines CEO Scott Kirby's merger proposal showed "the bold vision" that the carrier needed, but the union did not endorse a tie-up. Nick Silva, President of the Allied Pilots Association, said in an email sent to pilots Monday that Kirby's vision was "transformative" and could benefit passengers, communities, and American Airlines pilots. Silva, who did not support the merger of United-American, used Kirby's email as an occasion to criticize American's leadership. The unions are putting pressure on them because they have been underperforming financially. American didn't immediately respond to an inquiry for comment. Last month, United announced that it had ended its pursuit for a merger with American. The rival carrier refused to engage after an initial approach. American said that a merger between United and American would be bad for the competition?and consumers. UNION PRESSURE BUILDINGS The email suggests that, despite the fact that American rejected the merger proposal due to major regulatory obstacles, it has caused a new source of pressure within the airline. For APA it is part of a broader argument stating that American must adopt a more aggressive strategy in order to compete with its stronger rivals. "(Kirby's) bold vision for air travel could be transformative to our passengers, communities we serve and, most importantly, you, our American employees that our C suite has chosen not to respect: You," wrote Silva. Silva said Kirby’s vision might only be an "aspirational" one for the moment, but that its ambition showed?how far American has fallen behind domestic and international rivals. The unions that represent American's flight attendants and pilots have criticised the company's financial performance and its failure to match Delta Air Lines or United. Silva said APA’s message focused on the lack of a strategy for the long term, the "unacceptable state" of the airline and the union’s openness to "any way forward" which would allow pilots to work for an airline who?values and respects them, and that "not only competes, but leads the industry." Silva wrote: "It is clear that bold ideas and leadership will be required to restore American Airlines to its rightful place as a global airline." (Reporting and editing by Edmund Klamann; Rajesh Kumar Singh)
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American Pilots Union Chief says United CEO's idea of a merger showed 'boldness'
The head of American Airlines’?pilots' union,?Scott?Kirby, told his members that the "bold vision'' of United Airlines CEO Scott Kirby's merger 'idea was exactly what the carrier needed. However the union did not endorse a tie-up of the two airlines. Nick Silva, president of the Allied Pilots Association, said in an email sent to pilots on 'Monday that Kirby’s vision can be "transformative" both for passengers and communities, as well as American Airlines pilots. Silva, who was criticized by American's unions for the carrier's poor financial performance, used Kirby’s proposal to criticize the leadership of the company. American didn't immediately respond to an?request for comments on the issue. United announced 'last month that it had ended its pursuit for a merger with American after the rival carrier declined to engage in a first approach. American has said that a merger with United would be bad for the competition and consumers. (Reporting and editing by Edmund Klamann; Rajesh Kumar Singh)
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Chevron CEO: Shortages in oil supply to begin appearing
Mike Wirth, Chairman and CEO of Chevron, said on Monday physical'shortages' in oil supply will begin to appear around the world due to the closure of the Strait of Hormuz. Through this strait 20% of the global crude supply passes. Wirth, a Milken Institute-sponsored discussion participant, said that economies will shrink first in Asia as the demand for goods and services adjusts to the reduced supply. The strait is still closed due to the U.S./Israeli war against Iran. Wirth noted that "we will begin to see physical shortages" as surplus supply on commercial markets, tankers operating in shadow fleets, avoiding sanctions and national strategic reserve were being consumed. He said that "Demand must move in order to meet supply." "Economies will have to slow down." Wirth says that Asia is most dependent on the Gulf's oil refineries and production, while Europe will likely be next. Wirth said that although the United States is a net oil exporter, the effects would eventually be felt in the United States. He noted that the last scheduled oil shipment from the Gulf was being unloaded at the Port Long Beach, which supplies Los Angeles and Southern California. Wirth stated that the overall impact of the Hormuz shutdown is "potentially" as large as in the 1970s. In the 1970s, two major disruptions to?supply shook economies all over the world. Fuel rationing was common and there were long lines at retail fuel pumps. Due to the closure of the Hormuz port, Spirit Airlines went out of business at the weekend due to a surge in jet fuel prices and a shortage of supplies.
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Maersk's US flagged ship is accompanied by US Military to transit Hormuz
Maersk reported that the Alliance 'Fairfax', a U.S. flagged vehicle carrier operated by Farrell Lines, left the Gulf on Monday accompanied by U.S. Military assets. U.S. Central Command, or Centcom, said Monday that American forces were actively assisting efforts to restore commercial ship traffic through the Strait?Hormuz. Before the U.S.-Israeli war with Iran, 20% of world oil was transported through this vital maritime chokepoint. Centcom announced Monday that two merchant ships flying the flag of the United States successfully passed through the Strait of Hormuz. The U.S. Navy is operating guided-missile destroyers in?the Gulf as part of a project called Project Freedom. Maersk stated that the transit of the alliance Fairfax was completed without incident, and that the crew were safe. Maersk purchased Virginia-based Farrell Lines, the U.S. operator of vehicle carriers? said. The Alliance Fairfax is one of hundreds of ships that were stranded on the Gulf in early March due to the virtual closing of the Strait of Hormuz. There is still at least one more vessel with a U.S. flag in the Gulf. (Reporting and editing by Franklin Paul, Sonali Paul and Franklin Paul; Jonathan Saul and Lisa Baertlein)
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S&P 500 drops from record high due to Middle East concerns
Wall Street closed lower on Monday as the S&P 500 fell from its record highs. This was after a South Korean vessel was struck by an explosion 'in the Strait of Hormuz, and Tehran showed 'its grip on Middle East Oil, dampening expectations of'strong - first-quarter earnings. After reports of the latest clashes, energy stocks rose. After U.S. president Donald Trump announced that the U.S. Navy was opening the strait, an explosion aboard a South Korean ship may have convinced commercial shippers it is still dangerous. Tehran claimed it had forced a U.S. ship to turn around after it tried to enter the strait. Meanwhile, the United Arab Emirates said that an Iranian drone had attacked an oil facility in the United Arab Emirates. The renewed nervousness about the Middle East conflict comes after the S&P 500 and Nasdaq hit record highs last Friday amid a stronger-than-expected quarterly earnings season. Ross Mayfield is an investment strategist with Baird Private Wealth Management. According to LSEG, the S&P 500 companies are expected to achieve earnings growth of 28 percent year/year in the first quarter. This is double what was anticipated at the beginning of April. Wall Street's AI heavyweights are responsible for much of this optimism. Berkshire Hathaway announced on Saturday that the company was a net stock seller for the fourteenth consecutive quarter. Investors pay close attention to the conglomerate because it is often seen as a bellwether for the U.S. economic situation. GameStop shares fell 10%, while eBay's rose 5%. This was after GameStop announced a proposal for a cash and stock deal to purchase the online marketplace. GameStop has a stock market worth of about $11 billion. The S&P 500 declined by 0.41%, closing the session at 7,200.75. The Dow Jones Industrial Average fell 1.13%, or 25,941.90 points, to 48,941.90. The S&P 500 indexes fell in ten of 11 sectors. Materials, which dropped by 1.57%, was followed by industrials, who lost 1.17%. Energy index increased by 0.85%. FedEx, a delivery firm, dropped 9.1% and United Parcel Service, 10.5% after Amazon.com announced it would be rolling out "Amazon Supply Chain Services" to open up its logistics network to other businesses. FedEx and UPS declined, dragging the Dow Jones Transportation Index down to its lowest point in almost a month. Palantir rose 1.4% after the bell, ahead of its quarterly report on data analytics and defense software. Norwegian Cruise Lines fell 8.6% following a re-evaluation of its annual forecast because of higher fuel prices related to the Middle East conflict. The S&P 500 saw a ratio of 2.2:1 between declining stocks and rising stocks. The S&P 500 recorded 26 new highs, and?22 lows. The Nasdaq registered 126 highs, and 87 lows. The volume on the U.S. exchanges is relatively low, with 16,3 billion shares trading, compared to an average of 17,7 billion over the last 20 sessions.
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S&P 500 drops from record high due to Middle East concerns
Wall Street closed lower on Monday. The S&P 500 fell from record highs after an explosion hit a South Korean ship in the 'Strait of Hormuz. Tehran also demonstrated its control over Middle East oil. This dampened optimism for strong earnings reports for the first quarter. After reports of the latest clashes, energy stocks rose. The explosion aboard a South Korean ship may have convinced commercial shippers that the strait is still dangerous after U.S. president Donald Trump announced the U.S. Navy will open it. Tehran claimed it forced a U.S. ship to turn back when it tried to enter the strait. Meanwhile, the United Arab Emirates reported that an Iranian drone had attacked an oil facility in the United Arab Emirates. The renewed nervousness about the Middle East conflict comes after the S&P 500 and Nasdaq hit record highs last ?Friday amid a stronger-than-expected quarterly earnings season. Ross Mayfield is an investment strategist with Baird Private Wealth Management. According to LSEG, the S&P 500 is expected to grow its earnings by 28% in the first quarter compared to the 14% that was anticipated at the beginning of April. Wall Street's AI giants are responsible for much of this optimism. Berkshire Hathaway announced on Saturday that they were a net seller for the 14th quarter in a row. Investors are closely watching the conglomerate which is often viewed as an indicator of the U.S. economic situation. They want to get a better understanding of market valuations and conditions. After the video game retailer announced a proposal to purchase?the online market for $56 billion, in cash and stock, shares of GameStop fell while eBay rose. GameStop has a stock market worth of about $11 billion. According to preliminary data, according to the S&P 500, it lost 28.37, or 0.39, points to finish at 7,201.75, and the Nasdaq Composite dropped 43.78, or 0.17, points to 25,070.67. The Dow Jones Industrial Average fell 549.79 or 1.12% to 48,946.86. FedEx and United Parcel Service dropped after Amazon.com?said that it would be rolling out "Amazon Supply Chain Services" to open up its logistics network to other businesses. Palantir has surpassed the data analytics and defence software company's quarterly report. The Dow Jones Transportation Average index fell to its lowest point in almost a month due to the declines of FedEx and UPS. Norwegian Cruise Lines dropped after cutting its annual forecast because of higher fuel prices related to the Middle East Conflict.
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S&P 500 drops from record high due to Middle East concerns
Wall Street fell?from its record highs Monday, after a South Korean vessel was struck by an explosion on the 'Strait of Hormuz' and Tehran exhibited its grip on Middle East Oil. This dampened optimism about a strong first-quarter earning report. The energy stocks increased after reports of the latest clashes. The explosion aboard a South Korean ship may have convinced commercial shippers that the Strait is still dangerous after U.S. president Donald Trump announced the U.S. Navy will open it. Tehran claimed it had forced a U.S. ship to turn around after it tried to enter the strait. The UAE also reported an oil installation fire following an Iranian drone strike. Uncertainty related to the Middle East conflict weighed on U.S. stocks after the S&P 500 hit ?a record high last Friday amid a stronger-than-expected quarterly earnings season. Ross Mayfield is an investment strategist with Baird Private Wealth Management. According to LSEG, the S&P 500 is expected to post aggregate earnings growth of 28 percent year/year in the first quarter. This is double what was anticipated at the beginning of April. Wall Street's AI giants are responsible for much of this optimism. Berkshire Hathaway announced on Saturday that the company was a net stock seller for the fourteenth consecutive quarter. Investors pay close attention to the conglomerate because it is often seen as a bellwether for the U.S. economic situation. It also provides valuable insight into market valuations. GameStop shares fell 8.5%, while eBay's rose 5.4%. This was after the video game retailer announced a proposal for a cash and stock deal to purchase the online marketplace. GameStop has a stock market worth of about $11 billion. The S&P500 was down by 0.33% to 7,206.53. The Nasdaq fell 0.12%, to 25,083.19, while the Dow Jones Industrial Average dropped 0.91%, to 49,050.99. Materials, which fell 1.37% and industrials, which lost 0.89%, were the two worst performing S&P 500 sector indexes. FedEx and United Parcel Service both fell by about 9% after Amazon.com announced that it would be rolling out "Amazon Supply Chain Services," which will open up its logistics network to other businesses. FedEx and UPS declined, dragging the Dow Jones Transportation Average down 4.3%. It was its lowest level for nearly a week. Norwegian Cruise Lines fell about 8% after reducing its annual forecast because of higher fuel costs due to the Middle East conflict. The S&P 500's declining stocks outnumbered the rising ones by a ratio of 2.1 to one. The S&P 500 recorded 26 new highs, and 22 new lowers. The Nasdaq registered 115 highs, and 70 lows.
Southwest considers hiring Spirit Airlines mechanics in advance of the Boeing MAX 7 arrival
Southwest Airlines is interested in hiring aircraft mechanics from the now-defunct Spirit Airlines. A union official announced this on Monday, as Southwest Airlines prepares to receive Boeing's 737 MAX 7 jets early next year.
The U.S. airline is hiring mechanics to support its red-eye flights, and in anticipation of the arrival of the MAX 7 jet early in 2027. This will be pending certification by the Federal Aviation Administration this year.
Bret Oestreich is the president of Aircraft Mechanics Fraternal Association. He has talked to executives at Texas based Southwest about hiring mechanics who were employed by Spirit when it ceased operations on Saturday morning. Both airlines have members of the union.
Oestreich added that Southwest was also replacing retiring mechanics.
Spirit landing slots, engines, and aircraft will be in high demand, as the airline industry struggles to find new planes and spare parts and is battling congestion at U.S. airports. American Airlines, too, is reportedly interested in Spirit mechanics.
Southwest has informed its pilots that it plans to hire 1,072 new pilots this year. This is 200 more than was expected, according to a source with knowledge of the situation.
A second source warned that the number may be lower if jet-fuel prices continue to remain high.
Southwest did not comment on hiring targets but stated that it "continually evaluates new talent".
Surging jet fuel costs due to the U.S./Israeli war against Iran are squeezing airline margins and pushing some airlines to the edge.
Airlines are also trying to introduce more fuel-efficient planes, like the MAX, into their fleets in order to cut operating costs and?ground older planes which consume more fuel.
Southwest Airlines will be the first airline to receive a MAX 7 aircraft. CEO Bob Jordan has stated that he anticipates the plane to be certified in August 2026. Boeing CEO Kelly Ortberg stated in April that the U.S. aircraft manufacturer expects certification to take place this year, with deliveries starting in 2027.
(source: Reuters)