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Gulf oil tanker prices nearly double as Middle East producers increase exports
Shipping data and sources indicate that oil tanker operators have made record profits this week after almost doubling the cost of hiring vessels to travel through the Strait of Hormuz or the wider Gulf region. This is due to the increasing demand for the waterway as it slowly begins to pick up. The strait's traffic has been relatively low since Iran lifted the effective blockade after agreeing on a 60-day truce with the U.S. last week. Meanwhile, talks are continuing to reach a permanent agreement to end the war. The number of vessels passing through Hormuz has dropped to a fraction of what it was before the conflict started on February 28. According to market estimates, up to 100 tankers are still stuck in the Gulf with their cargoes, adding to an already tight supply of vessels, as Middle Eastern producers increase exports. According to ship brokers, and other industry sources, the rates for hiring a vessel outside of the Strait?Hormuz are now $190,500 per day, up from $106,500 one week earlier. The prices also increased outside the Gulf area. According to ship brokers and industry sources, the average daily earnings of very large crude carriers have increased by over $50,000 in the last week for cargoes that need to pass through Hormuz. Ship broker Clarksons stated that "tanker owners were preparing for a surge in Middle East crude cargoes over the next few weeks. They are encouraged by the fact spot TCEs, or earnings (averaged more than $100,000/day) despite the drop in cargo volume following the U.S. Iran hostilities." In a statement, it stated: "This shows that the supply of (tankers) is extremely tight. A reopening of Hormuz will further tighten capacity." FLURRY OF TENDERS FROM MIDDLE-EAST PRODUCERS Middle Eastern producers have been offering crude in a frenzy of tenders, especially Abu Dhabi National Oil Company. They are encouraging buyers to load from within the Gulf and this is boosting demand for tankers. Sinokor, one of the largest operators of supertankers in the world, did not reply to a comment request. The group's Belgium B supertanker, the last vessel to enter the Gulf and load cargoes for the group on Monday, was heading towards terminals in Iraq. Ship tracking data from MarineTraffic revealed this on Tuesday. Insurance industry sources say that while tanker rates are up, war risk insurance costs have fallen in the last five days, to about 3% of a ship's value, from around 5% a week earlier, excluding discounts. It would be a reduction of hundreds of thousands in insurance costs for ships. After months of supply disruptions, buyers in India, such as the country's largest refiner Reliance have sought crude from this region. Reliance has not responded to a comment request.
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Europe Inc. adapts to the heatwave with cool boxes and dawn starts
Companies are trying to protect their workers and keep operations running as temperatures in Europe reach above 40 degrees Celsius. They also want to take advantage of the soaring demand that could be a relief. DHL, the German logistics giant, has provided its delivery staff in Germany with "cool boxes", which contain reusable cooling towel, water-activated arm coolers, and UV-protective collar guards. Construction firms have shifted their working hours so that they start earlier and end before the hotter part of the day. Retailers are struggling to meet the demand for portable air conditioners and fans. DHL stated that "extremely high temperatures pose a special strain when physically demanding work", adding that workers should drink lots of fluids, wear sunscreen, and seek shade wherever possible. In France, 40 people have drowned recently as a weather system brought hot air from the Sahara northwards. The people were trying to avoid temperatures above 41 degrees Celsius in Bordeaux and Poitiers. In the north, some schools have closed or altered their timetables. Scientists have linked the most dramatic increase in temperatures to climate change on Europe. According to Climate Monitor, it was the continent that had temperatures Monday far above their?historic norm. Where to escape the heat? Coping strategies have become a part of everyday work for many workers. "I keep drinking water to hydrate myself because the heat is unbearable," said 58-year-old Madrid electrician Vladimir Yepes. Even when we're not in the sun, temperatures continue to rise. The 60-year-old accountant Juan Antonio Casas said that the temperature in his air-conditioned office was bearable but it would be "horrible" to go outside. The Central Association of the Construction Industry in Germany said that road construction crews and outdoor employees are most at risk from extreme heat. Heribert Joris is the head of the association's social and collective negotiation policy. France's association for farm cooperatives reported that some silos are organizing night shifts in order to receive grain, because local authorities have prohibited afternoon harvesting due to the increased risk of fire. SALE OPPORTUNITY for SOME Heat has produced winners and losers. Currys, a British electrical retailer, said that sales of fans increased nearly 3,000% in comparison to the previous weekend before the heatwave. Air-conditioning units also increased 330%. AO World Finance chief Mark Higgins stated that the heat in Britain - which experienced record temperatures also in May - had boosted demand sooner than normal. Higgins stated that the UK had experienced a spike in hot weather through May. This is earlier than what we normally experience during the year. When it's hot, air conditioners and fans are in high demand. This surge is indicative of a wider shift on a continent that has historically been less dependent on air conditioners than other regions, such as North America. Climate change is causing more frequent droughts, heatwaves, and floods. This will increase the economic costs for most people. In a study conducted by the University of Mannheim in collaboration with economists at the European Central Bank, it was found that extreme weather could cost the European Union EUR126 billion (USD143.46 billion). Southern Europe is particularly vulnerable, and the public authorities are forced to respond. Madrid has increased the number of "climate refuges" to provide respite for vulnerable residents. Some have paid a high price to cool their homes. Yandri is a 28-year old plumber from the Spanish capital who said that he sleeps in the air conditioning all night. You will see the bill. He said, "It's going to be a big bill."
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Oman and Iran continue talks to manage navigation in Strait of Hormuz
Oman and Iran agreed?on?Tuesday to continue discussions regarding the?future management of navigation?in?the Strait of?Hormuz.?Including maritime services and costs associated with it. In a statement released after the talks in Muscat the two countries announced that a working group comprising their respective foreign ministries will be formed to continue the discussion and they will consult with other littoral states and relevant parties. This move seems to be a fulfillment of a memorandum of understanding that was signed last week, which calls on Iran to have talks with Oman and the other Gulf coastal states about the future management of maritime services and navigation in the strait. The strait is a vital waterway to global oil supply. The agreement was announced after a visit from Iranian Speaker of the Parliament Mohammad Baqer Qalibaf, and Iranian Foreign Minister Abbas Araqchi. They met Oman Sultan Haitham bin Tariq, and spoke with Omani Foreign Minister Sayyid Albusaidi. Oman and Iran have reaffirmed in a joint statement their commitment to ensuring safe passage along the waterway, while maintaining sovereignty over their own territorial waters. Since the U.S. and Israeli war began against Iran in February, the Strait has been closed to commercial shipping. After Iran began blocking the strait, the United States blocked Iranian ports. Oman and Iran have reaffirmed that they are committed to making the Strait of Hormuz a safe and open route for international traffic and to promoting maritime security, freedom and stability in the region. (Reporting and editing by Aidan Lewis, Timothy Heritage and Jana Choukeir)
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There are some flights to the Middle East that have resumed but there is still disruption.
Some airlines have resumed flights to certain parts of the Middle East, as diplomatic efforts intensify to resolve the conflict following the U.S. and Israeli strikes against Iran. However, many carriers continue to suspend flights, causing global travel disruptions. The following is an alphabetical update of the flight status for airlines: AEGEAN AIRLINES Thessaloniki-Tel Aviv flights have been cancelled by Greece's biggest carrier until 26th June. Dubai flights are cancelled up until August 31 and Erbil and Baghdad flights until September 30. AIRBALTIC AirBaltic, a Latvian airline, has cancelled all flights to Tel Aviv and Dubai until the 28th of June. AIR CANADA Canadian Airlines has cancelled all flights to Tel Aviv, Dubai and Abu Dhabi until October 24. AIR EUROPA Spanish Airlines has canceled flights to Tel Aviv from June 28 until now. Air France-KLM Air France suspends its Tel Aviv, Beirut and Dubai flights until July 5, and until June 30, respectively. KLM has suspended flights from Riyadh to Dammam, Dubai and Dammam until August 9. CATHAY PACIFIC Hong Kong Airlines has suspended flights to Dubai and Riyadh through August 31. The U.S. carrier suspended service for the Atlanta-Tel Aviv routes through December 18. The airline plans to resume New York JFK to Tel Aviv flights on September 6 while Boston-Tel Aviv, which was scheduled to launch in late October, will now be delayed. FINNAIR Finnair has canceled its Doha flights up until October 2 while continuing to avoid the airspace over Iraq, Iran Syria and Israel. The airline will resume its Dubai flights in October, which are only operated during the winter. British Airways, owned by IAG, delayed the resumption its flights to?Doha and Riyadh to August 8th. Flights from Amman, Bahrain, Amman, Tel Aviv and Dubai will be paused for the summer season, and resumed on October 25. When it resumes, the airline plans to reduce its services to Dubai and Doha to just one flight per day, while dropping Jeddah from the list of destinations. JAPAN AIRLINES Japan Airlines has suspended its scheduled Tokyo-Doha and Doha-Tokyo flight until August 31, and Doha-Tokyo until September 1. Polish Airlines has cancelled all flights to Riyadh and Beirut until 30 June. LOT will begin operating its winter route from Dubai in October. LUFTHANSA GROUP Lufthansa has announced that it will resume Tel Aviv flights as soon as July 1, whereas ITA Airways has confirmed they will resume them on July 1. SWISS delayed?the resume of flights until August, and Brussels Airlines suspended its operations until October 24. The suspension of Dubai flights by SWISS and Lufthansa will continue until September 13th. Lufthansa and SWISS have suspended flights until October 24 to Abu Dhabi, Amman Beirut Dammam Riyadh Erbil Muscat and Tehran. Eurowings, a low-cost airline, has suspended flights from Tel Aviv to Beirut until July 9, Erbil and Beirut until June 30, and Dubai, Abu Dhabi and Amman until October 24. ITA Airways also extended its suspension of flights to Riyadh and Dubai until July 31. MALAYSIA AIRLINES From July 2, the Malaysian airline will resume limited service to Doha. NORWEGIAN AIR Low-cost carrier has delayed the launch of Tel Aviv and Beirut indefinitely and no new start date has been set. ROYAL MAROC Moroccan airline announced that flights to Doha have been cancelled until 30 June. SINGAPORE Airlines In response to increased demand, the carrier has extended the suspension of its Singapore-Dubai flights until August 2. It also added services on Singapore-London Gatwick and Singapore-Melbourne routes between late March and October 24. TURKISH AIRLINES SunExpress, Turkish Airlines joint venture with Lufthansa has?cancelled' flights to Dubai, Bahrain, Beirut, and Erbil, until July 14. WIZZ AIR Low-cost airlines have suspended flights from Europe to Dubai, Abu Dhabi, and Amman until mid-September. (Compiled by Josephine Mason and Jamie Freed. Elviira Lioma, Tiago Branao, Agnieszka Olesska, Bernadette HOG, Alexander Klyve Gudbrandsen, Romolo TOSIANI, Boleslaw LaSocki). Matt Scuffham and Alexander Smith edited by Susan Fenton, Milla Nissi-Prussak Jonathan Ananda Joe Bavier, Louise Heavens, Louise Heavens, Louise Heavens, Louise Heavens, Louise Heavens, Louise Heavens, Louise Heaven, Bernadette Hogg, Romolo Tosiani.
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Trump insists Iran agreed to nuclear inspections
Donald Trump, the U.S. president, insisted Tuesday that Iran has agreed to allow nuclear inspectors for a long time into the future despite Iran's?statements that it has not. "Iran is fully and completely agreeing to the highest level Nuclear Inspections for as long as possible (Infinity!!! In a post on social media, he said: "Iran has fully and completely agreed to highest level Nuclear inspections long into the future (Infinity!!! This will ensure 'Nuclear Honesty' "If they didn't agree to this, no more negotiations!" Iran denied that it had started discussions about its nuclear program, or agreed to welcome?International Atomic Energy Agency (IAEA) inspectors to the country. Trump said the United States would also leave ships in the Strait o f?Hormuz if it became necessary to reimpose the blockade on Iranian ports. He said this was "at this stage, highly unlikely." He also said that 19,000,000 barrels of crude oil flowed through the Hormuz Strait Monday. After the first round of talks in a?so-called peace agreement, the United States has?waived Iran sanctions for 60 days. Trump said on Tuesday that the?funds?that the U.S. Treasury will release funds that will be placed in escrow and under U.S. management. The money will then be used to buy medical and food supplies exclusively from the United States. "These are items that Iran desperately needs." Trump wrote: "This is a humanitarian crisis, and I believe it's necessary to help NOW, before its too late." (Reporting and editing by Susan Heavey; Doina chiacu)
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Fuel shortages in Russia and restrictions on sales
Russian regions are restricting fuel sales due to a lack of certain grades of gasoline and diesel and long lines at the filling stations. This is because Ukrainian attacks on oil refining facilities have disrupted supply. The following are statements by Russian regional authorities and companies on the current situation: CENTRAL RUSSIA Surgutneftegaz, Tatneft and the authorities in Tver announced on the 20th of June that temporary restrictions were introduced for individuals at the Surgutneftegaz & Tatneft gasoline stations because of increased demand. Igor Artamonov, the Governor of Lipetsk, said that several filling stations in the region, including?the cities?of Lipetsk, and Yelets were suffering from shortages of certain grades. Kommersant reported that Tambov Governor Evgeniy Pryshov had imposed restrictions on the sale of cans and other containers in order to reduce panic buying. Regional media reported that authorities in the Vladimir region stated on June 21, "temporary logistics difficulties" caused long queues at fuel stations. Sales were limited to 30-60 litres of gas per vehicle. Alexander Avdeev, the Governor of Vladimir region, urged residents to limit their travel and not stockpile fuel. A regional ministry reported on June 19 that increased demand in the Kaluga region led to long queues at gas stations. It said that reserves were available and volumes are being replenished to ensure Ai-95 and Ai-92 for two weeks as well as diesel and Ai-92 for three weeks. The Kommersant newspaper reported that private gas stations in parts of Tula region were running out of certain grades of fuel, but the major networks did not have any supply problems, according to Governor Dmitry Milyayev. SOUTH AND WESTERN RUSSIA Anna Kasyanenko, the regional agriculture minister, told local media that some Rostov-region filling stations ran out of gasoline because major refineries had cut production. Local media reported that some stations in?Makhachkala have restricted gasoline sales to a maximum of 20 litres for each vehicle. Diesel is also limited to a maximum of 50 litres. CRIMEA AND SEVASTOPOL The Crimean government has suspended summer camps for children and tourist activities until September, citing fuel shortages as well as security concerns. From June 21, fuel stations in Crimea stopped all sales of fuel to businesses and individuals. Sevastopol has also imposed restrictions on fuel sales, public transport and cafes. VOLGA REGION Local media report that Tatneft stations in Udmurtia have stopped selling Ai-95. Rustam Minikhanov, the Tatarstan leader, held a meeting in June after lines formed at certain stations. Authorities have announced temporary limits to prevent panic-buying. From June 23 to 30, the Saratov Region Governor Roman Busargin has announced a temporary limit of 30 litres for each vehicle. On June 15, Governor Vyacheslav Federishchev announced that a regional network has introduced restrictions on the sale of fuel at its filling stations in?the Samara Region. SIBERIA Marina Kozharina said that on June 16th, the Irkutsk Region Minister of Agriculture was concerned about the fuel situation in the region. Irkutsk, according to Governor Igor Kobzev, had switched over to a manual system of distribution by June 22. The new system prioritizes emergency services, transportation, municipal utilities, and agriculture. On June 23, Governor Andrey Travnikov of Novosibirsk announced that there would be restrictions at filling stations. Vitaly Khotsenko, the Omsk governor, said on June 22 that similar measures will be implemented to prevent panic buying and speculation. FAR EAST Amur.life reported that authorities in the region announced restrictions on petrol sales at stations to avoid what they called "artificial panic" among the local population. Dmitry Demeshin, the Khabarovsk governor, said that on June 16, gasoline sales were restricted in Sovetskaya gavan and Vanino due to a shortage of supplies. (Reporting and editing by Milla Nissi-Prussak).
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Court rules that UK approval of Gatwick airport expansion is legal
The?High Court of London ruled that Britain's approval for Gatwick Airport expansion was legal. This allows the country's 2nd busiest hub to proceed with its plan to add millions more passengers by 2030. Last year, the government approved the?opening? of a?second runway? at Gatwick Airport, located 30 miles (48km) south-east of London. However, two environmental groups brought a lawsuit over noise and air pollution. Both the Gatwick Area Conservation Campaign and Communities Against Gatwick Noise and Emissions said that they would appeal Tuesday's decision. GOVERNMENT HAS BACKED NEW RUNWAY The government said that the increased use of sustainable aviation fuel does not conflict with the net-zero goals. It has also backed the construction of a new airport runway at Heathrow. Keir Starmer has announced that he will step down from his position as Prime Minister after less than 2 years. He has supported infrastructure projects such as airport expansion to grow Britain's stagnant economic growth. In the case against Gatwick Airport, Judge Tim Mold dismissed two claims for a judicial review, saying that the reasons given by the government to approve the expansion were "rational, and supported by adequate, proper and understandable reasons". Mould rejected the argument about the environmental impact of the development, saying that it was not in contradiction for the government to claim it wouldn't affect its ability meet carbon reduction targets. A spokesperson for the Department for Transport said: "We are pleased that the High Court has upheld our approval for expansion at Gatwick Airport." This project will bring 14,000 new jobs for local residents and PS1 billion per year to all corners of the UK. NEW RUNWAY 'COULD BE ?OPEN BY END OF ?DECADE' After the ruling, a spokesperson for Gatwick stated: "We look forward to bringing our plans to life and will announce more details in due time." Gatwick is owned by VINCI Airports & Global Infrastructure Partners. The new runway will be open by the end decade. It could provide a PS1billion boost to the UK economy through trade and tourism, and create 14,000 jobs. Andy Burnham, Starmer's most likely successor, could still sabotage the expansion of London?s two largest airports, which are both operating at near capacity. He has warned in the past that the expansion of Heathrow airport could deprive the north of England the investment they need. (Reporting and editing by Michael Holden, Jan Harvey, and Sarah Young)
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The PM has announced that Poland will be adding a second LNG vessel to the Gdansk floating terminal.
The Prime Minister Donald Tusk announced on Tuesday that Poland will build a floating LNG terminal in Gdansk with a second regasification vessel. This is due to the overwhelming interest of shippers. "The commercial interest is large enough for the project to not require budget involvement," Tusk told reporters before a cabinet meeting in Warsaw. The two terminals in the Baltic, along with a portfolio of LNG contracts, will allow Poland to become a hub of fuel deliveries from the U.S. Gaz-System, the Polish gas pipeline operator, will be able to move forward with the project due to the interest from the market. According to 'the company plans', the second floating storage and regasification?unit (FSRU) will have a technical capability to regasify a?additional 4.5 bcm (bcm ) of gaseous?fuel per year. Gaz-System has begun construction of an LNG terminal in Gdansk, with a capacity of 6.1 billion cubic meters of gas a year. (Reporting by Marek Strzelecki, Anna Wlodarczak-Semczuk and Pawel Florkiewicz)
Gulf crisis affects Australian and New Zealand companies, from airlines to banks
The U.S. and Israel war against Iran is causing financial stress for companies in Australia and New Zealand. Higher fuel prices are causing inflation, affecting consumer and business confidence and weighing on corporate earnings.
Some of the companies in Australia and New Zealand have reported an impact on their business from the Middle East conflict.
Air New Zealand
New Zealand's Flag carrier predicted its largest annual pre-tax loss in four years two months after withdrawing their earlier 2026 forecast, as the Iran War pushed up jet oil prices, increasing costs and adding pressure from weak demand, fleet constraints, and increased costs.
Air New Zealand forecasts its annual pre-tax losses between NZ$340 and NZ$390 ($201.8 million-$231.5 millions), a change from last year's NZ$189million profit.
Air NZ announced a price increase in March after suspending its 'earnings forecast for the full year.
Auckland International Airport
Auckland International Airport in New Zealand said 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.
a2 Milk:
New Zealand's A2 Milk has cut its profit forecast for fiscal 2026 as higher freight costs resulting from the conflict, and temporary disruptions in the supply chain have affected the availability of the infant formula under the China label on its largest market.
Cleanaway Waste Management:
The company's full-year earnings forecast was cut by A$20,000,000 ($14.17million), due mainly to higher costs, reduced activity and timing differences of cost recovery.
Cochlear:
Cochlear, an Australian manufacturer of hearing implants, has lowered its profit forecast for 2026 due to a?weaker trade in developed markets'. The company cited slower surgical volumes and consumer sentiment as reasons.
The Middle East War has increased the risk of order cancellations and delivery delays, as well as a higher exposure to receivables. This will also worsen margin pressures and increase restructuring costs.
Fletcher Building
Fletcher Building in 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 of construction demand throughout Australasia.
Construction materials manufacturer expects to increase prices in all divisions. Plastics, where the company claims immediate exposure is present, will experience price increases of up to 36%. Other divisions can expect a 1%-5% increase.
Flight Centre Travel:
Flight Centre Travel, an Australian corporate travel manager, said that hostilities in Middle East temporarily disrupted international travel patterns. It estimated a profit impact of A$10,000,000 on its leisure segment in April.
The firm expects foreign exchange headwinds to occur in the fourth quarter due to the translation of overseas profits, given the strength the Australian dollar. Its cost margin also fell from 9.2% during the third quarter, as it implemented measures such as freezing support roles.
Fonterra:
Fonterra, the New Zealand dairy company, said that the conflict could impact its supply chain and increase its inventory and costs during the second half of the year. It also contributed to the volatility in global commodity price.
National Australia Bank
National Australia Bank expects to incur a credit impairment charge of A$706 ($504.44 millions) in the first fiscal half of 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:
Orora, a packaging company, has lowered its earnings forecasts for its French subsidiary Saverglass. It also cancelled its share-buyback program citing war impacts.
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:
Qantas Airways is Australia's national carrier. It has raised its fuel costs outlook for the second part of the year by up to A$800m. However, it says that its planned A$150m share buyback program has yet to begin, citing the volatile and sharply increased jet fuel prices.
Qantas has raised fares to offset the rising cost of its flights and shifted them towards stronger routes, such as Paris or Rome, where demand is still strong. They have also reduced their domestic capacity in the second quarter by approximately 5 percentage points.
Qube Holdings
Qube estimates that the Middle East conflict will have an impact on its EBITA of between A$10 and A$20 million for fiscal 2026.
The logistics firm stated that recent events could encourage an increase in investment in alternative energy projects which would be beneficial to the company.
Virgin Australia
Virgin Australia expects a rise in fuel costs of between A$30 and A$40million ($21.39 to $28.52million) during the second half fiscal 2026.
In mid-March, the airline announced that it would be adjusting its fares due to the rising costs in the aviation industry.
Westpac:
Westpac, Australia’s second largest bank by assets, has said that energy market shocks were causing profit pressures in the first half the financial year ending March 31. This led the lender to increase its credit provisions.
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 up.
Westpac has increased its provision for bad debts since the COVID-19 pandemic.
Woolworths:
Woolworths, Australia's largest grocery store, has said that the Middle East conflict is creating significant uncertainty for both customers and suppliers. This will increase the already high cost of living.
Fuel price pressures, customer retention investments and fuel price increases will all affect the firm's forecasted growth in the domestic food segment for fiscal 2026.
Woolworths has also announced that it will freeze the prices of 300 household staples from May 1 for a period of three months. This is due to cost pressures imposed by Australian suppliers as a result conflict.
Worley:
Worley estimated 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 it continued to aim for higher revenue growth than fiscal 2025.
(source: Reuters)