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Shell declares force majeure for clients who purchase Qatari LNG. Sources say
Three sources said that Shell, the largest LNG trader in the world, declared force majeure for all LNG cargoes purchased from QatarEnergy, and sold to clients around the globe. Qatar, the second largest LNG exporter in the world, declared force majeure last week on LNG shipments and announced a halt to production at its 77-million-ton per annum (mtpa). Shell refused to comment. Two sources confirmed that other Qatari LNG buyers including TotalEnergies, some Asian companies and others have received force majeure notifications from Qatar. These notices state that they will not sell Qatari LNG to their customers as long as the facilities are closed. Sources close to TotalEnergies have said that the French oil and gas giant has not declared force majeure. This is a term used to describe circumstances beyond a company's ability to control, like a natural catastrophe, which releases them from contractual obligations without penalty. Shell and TotalEnergies are partners with QatarEnergy in their massive North Field expansion, which is aimed at increasing capacity by 2027. Analysts estimate that Shell takes 6,8 mtpa Qatari LNG while TotalEnergies only takes 5.2?mtpa. Qatari Energy Minister Saad Al-Kaabi said to the Financial Times that even if war ended today, it would still take "weeks or months" for normal deliveries to resume. QatarEnergy declared a force majeure for LNG shipments Wednesday. Last week, sources told us that the force majeure notifications sent to clients stated that LNG deliveries for March would not be affected. The impact will only be felt in April. (Reporting and editing by Nina Chestney, Alexander Smith, America Hernandez. Additional reporting by Marwa Rashed.
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Spain withdraws its ambassador permanently as the rift with Israel grows
Spain permanently 'withdrew' its ambassador from Israel on tuesday, as a diplomatic standoff between the two countries grew worse over Spain's stance on the U.S. and Israeli attacks on Iran. The ambassador was summoned to Spain in September last year amid a diplomatic dispute over Spanish measures that banned aircraft and ships from Spain's ports or airspace carrying weapons to Israel due to Israel's military offensive in Gaza. Israeli Foreign Minister Gideon Sa'ar called the Spanish measure antisemitic. Spain announced in its official journal on Tuesday that the ambassador's post had been "terminated". Spain's foreign ministry?said that its embassy in Tel Aviv would be headed by a charge-d'affaires at least for the near future. The move is the latest in a series of escalations in the diplomatic relations between Israel and the United States, which have been strained ever since Israel's assault on Gaza Strip in October 2023. Israel's embassy is also run by a charge-d'affaires. The country summoned their ambassador in May last year to protest Spain's decision to recognise a Palestinian State. Since the U.S. and Israel?strikes against Iran, tensions have increased. Sa'ar accused Spain of "standing with dictators" in early March for opposing this war. (Reporting and editing by Emma Pinedo, Victoria Waldersee and William Maclean).
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Dubai drags Gulf market down as Iran war fears weigh
Investors remained cautious about inflation and growth risk stemming from the U.S./Israeli war on?Iran. According to the Pentagon and Iranian sources, the U.S. launched the most intense airstrikes in the war. Global markets were still betting that Donald Trump would try to end the conflict soon. The Strait of Hormuz has been effectively closed by the war. It is a major route used for approximately one-fifth of all global oil and gas shipments. Producers have had to stop production as their storage tanks fill up, and energy prices are now higher. Dubai's main stock index fell 2.4%. Blue-chip developer Emaar Properties, which has fallen 4.7% in value, and top lender Emirates NBD have both declined 4.9%. Air Arabia, however, ended the day 0.7% higher. Budget airline Air Arabia was poised to end a five-session slide, after losing more than 20% over the previous five trading days. On Wednesday, two drones were shot down near Dubai's airport. Bahrain also evacuated aircraft as the attacks on Gulf infrastructure continued to disrupt air traffic. Tens of thousands of flights have been cancelled, rerouted, and changed schedules as a result of the fighting. Drones and missiles are also threatening to shut down much of Middle East's airspace including Qatar. In Abu Dhabi the index dropped 0.3%. Investors will continue to be highly sensitive to new headlines and regional development, and swings in oil price and logistical disruptions could continue to pose risk for certain markets, according to Daniel Takieddine. Saudi Arabia's benchmark stock index rose 0.1% thanks to a rise of 1% in the oil major Saudi Aramco. The oil prices rose on Wednesday, reflecting doubts about the International Energy Agency’s reported plan to release record amounts of oil reserves in order to mitigate possible war-related supply disruptions. According to Ahmad Assiri of Pepperstone Research, the Saudi Market remains relatively stable. Supported by oil prices over $87 per barrel, and export flows through Yanbu, on the Red Sea, this puts the Saudi Market in a stronger position than its neighbors. Saleh Abdulaziz al Rashed and Sons Company, a Saudi miner, surged by more than 14 percent. This was the first time the Gulf region had seen a market debut since the beginning of the war. The Qatari Index fell 0.9%. This was due to a 2.1% drop in the Qatar National Bank. It is the Gulf's largest lender by assets. Shell, TotalEnergies and some Asian companies, among others, who buy LNG from QatarEnergy as either portfolio players or offtakers, have declared force majeure. Oman's index fell 0.5% elsewhere, but it is still up 31% on the year. Assiri reported that the Muscat market experienced selective buying which allowed the index to break through resistance and remain above 7,700. Kuwait's benchmark rose 0.5% and Bahrain's by 0.1%. (Reporting by Ateeq Shariff in Bengaluru Editing by Tomasz Janowski) Reporting by Ateeq Sharif in Bengaluru Editing and proofreading by Tomaszjanowski
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US resumes Global Entry Program under Pressure from Industry
The Trump administration reinstated the Global Entry program on Wednesday, which speeds up?U.S. A U.S. travel organization said that pre-approved low-risk travellers entering the United States would be granted a streamlined customs and immigration clearance. Department of Homeland Security suspended the PreCheck program on February 22. However, it reversed its original?plan of suspending the Transportation Security Administration PreCheck program. The DHS stated that the move was necessary to "preserve funds and personnel during a partial shutdown". The Trump administration was urged by airlines and travel groups to restart the program. Travelers?entering?the United States have faced a wait of up to three hours at some airports due to the suspension of the Global?Entry?program. TSA staff absences in recent days have led to long security lines at certain U.S. airports. (Reporting and editing by Andrew Heavens; David Shepardson)
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FlySafair in South Africa adds temporary surcharge as fuel prices rise
FlySafair is a leading domestic South African low cost airline. The company announced on Wednesday that it would implement a temporary fuel surcharge in order to cope with the sharply increased global jet fuel costs as a result?of?the Middle East crisis. South Africa is a net consumer of refined petroleum products including jet A1 and closely monitors developments in the Middle East. Since the U.S. & Israel bombed Iran and triggered a series of attacks, crude oil prices have reached two-year highs above $100 per barrel. Kirby Gordon said, "Instead of increasing fares or hiding costs, FlySafair has chosen to introduce a 'clearly labeled, temporary surcharge. "This gives customers complete visibility into what they're paying for and allows us?to remove the surcharge once prices stabilize," he said. Gordon stated that the Jet A1 fuel price at South African coast airports has risen by 70% in a week. With no sign of a slowdown, FlySafair decided to increase the cost in order to sustain their business. The surcharge will be effective from March 12 and only apply to flights departing on or before May 12, 2026. South African Airways responded late on Tuesday to concerns about possible shortages and rising fuel costs. It said it was closely monitoring the Middle East's situation, but that there were enough fuel supplies to support their flight schedule. A spokesperson for SAA said that the rise in fuel prices "has an impact on many factors, such as operations costs which affect profitability and customers." According to the African Airlines Association?fuel costs are typically 30% to 40% of the total operating expenses for African airlines, which is significantly higher than global averages of 20 to 25. Reporting by Wendell Roelf, Nairobi; editing by Chizu nomiyama.
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Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The global aviation industry has been thrown into chaos by a surge in jet fuel costs, which is attributed to the ongoing U.S./Israeli war against Iran. Airlines have raised fares and revised their financial forecasts. In recent days, jet fuel prices have increased from $85 to $90 per barrel to $150 to $200 per barrel for an industry where fuel accounts for as much as a quarter or more of the operating costs. Here is an alphabetical list of the ways airlines are responding to this issue: AIR NEW ZEALAND On March 10, the airline was one of the first airlines to announce a broad increase in ticket prices. It also suspended its fiscal year 2026 earnings projection due to unprecedented volatility on global jet fuel markets. Price increases for one-way economy tickets are NZ$10 ($6) domestically, NZ$20 on short-haul services internationally, and NZ$90 on long-haul flights. Further price, schedule, network, and fuel cost changes may be possible, if jet-fuel costs continue to rise. CATHAY PACIFIC AIRWAYS Hong Kong Airlines announced on March 10 that it would be adding additional flights in March to London and Zurich to accommodate disrupted travel routes. The airline stated that it reviews fuel surcharges on flights every month and kept them at $72.90 last?month for flights between Hong Kong?and Europe?or North America. HONG KONG Airlines Local carrier announced that it will increase fuel surcharges up to 35.2% starting March 12. The biggest increases are on flights between Hong Kong, Bangladesh and Nepal. Charges for these flights will go from 284 Hong Kong Dollars to 384 Hong Kong Dollars ($49). British Airways' owner IAG announced on March 10, that it did not plan to increase ticket prices immediately as it had hedged a large portion of its fuel costs for the short to mid-term. QANTAS AIRWAYS The Australian airline announced on Tuesday that it would increase fares for its international routes during the week of the 9th March and was looking at adding capacity to?its existing Europe routes in the next few months. SAS (Scandinavian Airlines), On March 10, the dominant airline of the Nordic countries announced that it had made a temporary adjustment to its prices due to rising jet fuel costs. THAI AIRWAYS The Thailand-based airline said on March 11, it would raise fares between 10% and 15% in order to combat rising fuel prices. UNITED AIRLINES Scott Kirby, the airline's CEO, said on 6 March that he expected a "meaningful hit" to the carrier's results for the first quarter due to the rising fuel prices. VIETNAM Airlines Local officials claim that the Vietnam-based airline has requested assistance from the government to remove an environment tax on jet fuel. Operating costs for Vietnamese airlines are up by 70% as a result of rising jet fuel prices. (Reporting and editing by Matt Scuffham; Marleen Kaesebier, Mireia.
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Vice-minister: Hungary sent Druzhba fact finding mission to Ukraine
Officials said that Hungary sent a fact finding?mission to Ukraine on Wednesday to investigate the Druzhba?pipeline?outage. Budapest is looking to restart the?flows?of oil amid rising global prices linked to the Middle East war. Since January, when oil flow stopped in the Druzhba Pipeline, Budapest and Kyiv have been locked in a diplomatic conflict. Viktor Orban has given a prominent place to his anti-Ukrainian rhetoric in his campaign for an April 12 election. Hungary blocked a new EU sanction against Russia, as well as a large loan to Ukraine due to the dispute. In a recorded Facebook statement, Gabor Czepek, the Hungarian Deputy Minister of Energy said: "The Government has created the delegation which is expected to conduct a fact-finding?mission?on the Druzhba Pipeline." "Our task is to assess the state of the pipeline and set up conditions for its restart." Hungary and Slovakia, which are the only European Union nations still importing Russian crude oil, have accused Ukraine for deliberately delaying the return of oil flow from political reasons. Ukraine claims that a Russian drone attacked the pipeline, causing it to be damaged and unable to be repaired. Czepek stated that Slovakia will also "take part" in the fact-finding missions, which has four member. He said that the Middle East crisis has raised the stakes and led the Hungarian Government to use strategic reserves and introduce prices protected. Orban announced the cap on fuel prices after an emergency meeting of the government on Monday. He also urged EU to suspend sanctions against Russian energy. Robert Fico, Slovakia's prime minister, said on Tuesday that after meeting EU chief Ursula von der Leyen they had agreed to resume oil transit via the Druzhba pipe via Ukraine.
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Shell, TotalEnergies, and others declare FM for their clients who purchase LNG from Qatar sources
Shell and TotalEnergies are long-term partners with QatarEnergy * Qatar halted ?production at 77 mtpa LNG ?facility By Marwa Rashad LONDON, 11th March - Three sources confirmed that several 'companies who buy LNG from QatarEnergy as portfolio players or offtakers, including Shell, TotalEnergies, and some Asian firms, have declared force majeure for the customers they supply. Qatar, the?second largest LNG exporter in the world, declared force majeure on LNG shipments last week. Shell, the largest LNG trader in the world, has declined to comment. TotalEnergies didn't immediately respond to a request for comment. Both companies have long-term partnerships with QatarEnergy, and they are both partners in the massive North Field expansion project of QatarEnergy that aims to increase capacity by 2027. Shell sells 5.2 million tonnes per annum of Qatari LNG to TotalEnergies, while analysts estimate Shell purchases 6.8 mtpa. Qatari Energy Minister,?Saad Al-Kaabi, told the Financial Times a week ago that it would take "weeks or months" for normal deliveries to resume even if today's war ended. The company declared force-majeure on LNG shipments Wednesday. Last week, sources told us that the 'FM notices' sent to clients stated that LNG deliveries for March would not be affected. The impact will only be felt in April.
Drone strikes near Dubai airport deepen Gulf aviation chaos
On Wednesday, two drones were spotted near the main airport in Dubai and Bahrain evacuated some planes as attacks on infrastructure in the Gulf continued disrupting air traffic. The war against Iran is now entering its 12th day.
U.S. and Israel's war on Iran has resulted in tens or thousands of cancellations, reroutings, and schedule changes around the world. This has shut down much of Middle?East airspace, including Qatar, due to drone and missile threats.
The aviation industry is in its worst crisis since the pandemic. Dubai International Airport (DXB), which is the busiest hub of global passengers, along with other regional airports, are crucial transit points for long distance travel.
As a result of the conflict, a major oil export corridor has been disrupted, causing a surge in jet fuel prices. This has led to higher fares on certain routes, and a growing concern about a wider impact?on travel demand. Air cargo that was time-sensitive was also severely affected.
TWO DRONES FALL NEAR DUBAI Aiport
Bahrain's Civil Aviation Affairs announced on Wednesday that several Gulf Air aircraft without passengers and cargo planes were moved to alternative airports in order to "ensure continuity and efficiency" of air operations during the crisis.
The company did not give any further details. Gulf Air did not respond to a request for comment.
FlightRadar24's tracking data showed that several passenger jets were moving towards Saudi Arabia in the last 24 hours.
Dubai's media office confirmed that two drones had fallen near Dubai Airport, but said air traffic was running as usual. There was no damage visible to the airport, according to witnesses.
The attack was a new 'threat' after DXB Airport, Abu Dhabi International Airport and Kuwait's airports were damaged on the first day.
Qatar Airways and regional carriers such as Etihad in Abu Dhabi, Emirates in Dubai, and Emirates in Dubai have resumed certain flights, but they are still operating at a much lower capacity.
Authorities reported that four people were injured in the attack.
(source: Reuters)