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Which firms will clean-up after the Iran War is over? Maguire
After the U.S. and Israeli air strikes on?Iran are over, a new competition is likely to begin: the race for contracts to repair damaged oil and gasoline infrastructure and to restore?shipping routes - and influence – across the Middle East. The destruction does not stop in Iran. Fatih Birol, head of the International Energy Agency, warned that at least 40 energy assets in nine Middle Eastern countries have been "severely" or "very severely" damaged. Oil and gas fields, refineries, and pipelines will all take time to be repaired, he said. The crisis is worse than both oil shocks in the 1970s and the combined impact of the Russia/Ukraine gas war, according to Birol. Engineering specialists are lining up for the rebuilding of pipelines that have been destroyed, while logistics companies can repair ports and terminals that have been bombed out. A select group of businesses is ready to turn the end to the conflict into a lucrative business boom. Here are some of the sectors and companies that could be competing for the many energy and port reconstructions projects that will likely emerge in the Middle East after the war ends and the cleanup begins. ENGINEERING CONGLOMERATES Once the fighting has stopped, multinational engineering giants are among the first companies to be called into Iran to assess the damage caused and to draw up plans for reconstruction. Companies with experience in the repair and construction of oil rigs and refineries, pipelines, and natural gas liquefaction will play an important role in Iran's recovery, and in restoring revenues to the country. The ultimate winners will be determined by political affiliations. Both the Iranian and U.S. government are expected to have strong opinions on the way contracts are divided up. After a few weeks of constant bombing, there will still be plenty of work. SLB (formerly Schlumberger), Halliburton and Baker Hughes, as well as the privately-held Bechtel Corp., are all major U.S. companies with large oil and gas engineering departments. The obvious candidates on the Iranian side are the Khatam-al Anbiya Construction company, which is controlled by the Islamic Revolutionary Guard Corps. (IRGC), and the Mapna Group - the largest oil, gas, and power contractor in the country. Many international firms, including Italy's Saipem and France's Technip as well as India's Larsen and Toubro and Dubai's Sidara, have extensive operations throughout the Middle East. They will also have the contacts and expertise needed to start work quickly. CNPC of China, NMDC in the United Arab Emirates and Petrofac from Britain are also regionally present and will likely compete for tenders. OIL & GASS MAJORS After pipelines and energy infrastructure are repaired, oil and gas producers around the world will look to step up to resume well site extraction and restore the region's refineries. National energy companies throughout the region will likely feature prominently. These include National Iranian Oil Company, QatarEnergy and Abu Dhabi National Oil Company. Shell, TotalEnergies (France) and Exxon Mobil (U.S.), as well as other international majors with operations in the Middle East will also look to protect their position. The destruction is a good indicator of what lies ahead. Israeli strikes have damaged four units in Iran's South Pars Gas Field, and Iranian attacks in Qatar's Ras Laffan Industrial City have caused extensive damage to the LNG facilities. It will take many years to repair these damages. SHIPPING & UTILITIES Damage does not end at the wellhead. Ports, electricity grids, and water systems across the region were all affected, requiring a similar reconstruction effort. Recent bombardments have caused significant damage to large ports and merchant ships in the Iranian waters, as well as scores of other vessels. The Strait of Hormuz, a narrow chokepoint that separates Iran from Oman and through which a fifth of all crude oil and LNG in the world passes, has effectively been closed. Reopening this passage will be necessary for a return to normal energy flows around the globe. The recovery effort is expected to take years. Specialists in harbour reconstruction and marine salvage will be needed to restore port facilities and clear shipping channels. Tavanir, a state-owned company, and Mapna Group, a private group, operate the majority of Iran's electricity generation and transmission networks. They will anchor the recovery efforts at home. Rosatom, the Russian company that manages Iran's Bushehr reactor, near the recent strike zones, has a more complicated challenge to face, as any reconstruction effort supported by the United States is likely be contested. Desalination plant that provide clean water to?Iran, Bahrain, and parts of the israeli electricity grid were also affected, extending the scope of rebuilding well beyond Iran's border. Even if fighting stopped today, there would still be years of reconstruction to come. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
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Dutch gas storage at lowest level for years
Gas storage in the Netherlands fell to 5.8% capacity on Tuesday. This is the lowest level for at least a decade. It's unclear how fast they can be filled - over the summer. The market is "uncertain" about whether the participants can reach the required level of stores by November due to the supply cuts?linked?to?the war in the Middle East, and the price spikes they've triggered. Gasunie stated that "current prices don't make it obvious" that companies would start buying gas on time. High prices make it unattractive for businesses to purchase gas and store it. The EU's lowest prices Gas Infrastructure Europe's data shows that Dutch gas storage levels are far below the EU average of 28%. A letter obtained by revealed that Energy Commissioner Dan Jorgensen urged EU member states to fill stores earlier 'ahead of the winter of 2013/2014. They were also encouraged to use a flexible EU law allowing them to reduce their filling target?to 80% rather than the official goal of 90%. Brussels is worried that a rush to reach the filling goal could cause further price spikes. Gasunie, a Dutch gas company, said that there is no immediate cause for concern about gas supply in the Netherlands as gas flow is stable and winter's over. The natural gas grid operator has said that the stores will run out further in the next few weeks, before the filling season begins in April. Gasterra, a gas trader who buys and sells on behalf of the Dutch government, is winding down its operations after the Groningen gas field in the Netherlands' north has stopped producing gas. The Dutch government has asked the state-owned energy company EBN to step in if other market participants are unable to meet storage requirements. The government announced last year a loan facility of 21.6 billion euros ($25,1 billion) to help EBN achieve its goal.
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Canada futures are rising as optimism about a Mideast truce increases sentiment
Investors seized on signs of progress in a Middle East conflict to boost futures linked to Canada's stock market index. As of 06:18 a.m., June futures - on the S&P/TSX composite index - were up 1.2%. ET (1018 GMT). Oil prices fell and global stocks rose on reports that the U.S. was seeking a ceasefire for a full month in its war with Iran. A 15-point plan had been sent to Tehran, increasing hopes of a breakthrough which could help restore the oil supply from the Gulf. The prospect of a ceasefire in hostilities, even though the Iranian military denied any talks with Washington about ending?the conflict', was enough to move the markets. Gold prices rose on a weaker dollar. Oil prices fell on the hope of a ceasefire, which could normalize energy flows through the Strait of Hormuz. Central banks may be relieved by a drop in energy prices, as they have been warned that geopolitical tensions could re-inflationary pressures. This would complicate interest rate forecasts. LSEG data shows that traders expect the Bank of Canada will hold?rates? at its April meeting. Two hikes are expected?by the end of this year?. S&P/TSX composite index posted its largest single-day gain in five weeks, though it is still 7.5% below its March 2 record closing 'high. After CIBC, a brokerage firm, upgraded?Dollarama to "outperformer," from "neutral," and reduced?its price target. Click on the Codes: TSX Market Report Canadian Dollar and Bond Report Global Stocks Poll for Canada Canadian Markets Directory (Reporting and editing by Diti Pjara in Bengaluru, Rashika Singh)
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Orban: Hungary will restrict gas to Ukraine until Druzhba oil flow resumes
Hungary will stop sending natural gas to Ukraine once the Druzhba Pipeline resumes a flow of crude oil, according to Prime Minister Viktor Orban. This escalates the standoff between Kyiv and Budapest over the disruption of energy supplies caused by the war. Hungary and Slovakia, which are the only EU countries that maintain relations with Moscow, have blamed Kyiv for a failure of the Druzhba pipeline, which supplies their refineries through Ukraine with Russian crude oil. Kyiv claims that a Russian drone attacked the pipeline in late January, and it is repairing it as quickly as possible. Orban stated in a Facebook video that "we are gradually ceasing gas deliveries to Ukraine from Hungary, and we will store any gas left in Hungary." On Wednesday morning, data from the website of FGSZ, the Hungarian pipeline operator, showed that gas was still being shipped to Ukraine. According to data from Ukraine's gas transmission system operator, Ukraine will receive the same amount of gas as it did on Tuesday: 8.3 mcm. Ukraine intends to import 25 mcm total of gas from Eastern Europe. An industry source told us earlier this month that Ukraine had contracted 180 mcm (or 28%) of gas with Hungary for March. In February, 200 million cubic meters of gas were purchased, which is 31%. Naftogaz, the state-owned energy company of Ukraine and Ukraine's Energy Ministry were not available to comment. Last week, European Union Leaders failed to convince Orban (who is running for reelection next month) to lift his obstruction on a 90 billion-euro loan ($104.36billion) from the EU to help Ukraine. Orban had also warned earlier that Hungary would cut its electricity exports to Ukraine in the event oil flow?on Druzhba did not resume. Last week, EU experts visited Ukraine to assess the state of the pipeline. Kyiv had said that it accepted the EU's offer of technical assistance and funding in order to restore oil flow. Ukraine had also indicated at that time that a resumption in crude oil deliveries to Hungary or Slovakia would be weeks away. $1 = 0.8624 Euros (Reporting from Anita Komuves and Pavel Polityuk, both in Budapest; Editing done by Bernadettebaum)
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Delta Air Lines refinery investment looks more valuable with jet fuel squeeze
The purchase of an aging refinery by Delta Air Lines outside of?Philadelphia, in 2012 was a move that seemed unusual. Most airlines buy jet fuel directly from suppliers. Delta bought a refinery to convert crude oil into jet fuel, among other products. This deal, which was intended to reduce fuel costs for airlines, also attracted scrutiny due to the growing pressure on them to cut emissions. As 'jet fuel prices' rise faster than crude during the 'Iran war, increasing airline fuel bills by a wider refining margin, this bet looks more significant. A wider gap between jet fuel and crude fuel will result in higher fuel prices for most airlines. Delta continues to pay market prices for fuel that is transferred from its Monroe refinery into its airline operations. Delta said that by owning a refinery, the profits from fuel refining will stay within the company and not go to external suppliers. The Math Behind the Squeeze In recent weeks, jet fuel prices have increased sharply. This has led to a widening of the crack spread - the difference between crude oil prices and fuels made from them. According to the International Air Transport Association, North American jet fuel prices averaged $179 per barrel in the week ending March 20. Brent crude was around $110, according to their data. U.S. spot fuel prices rose even more, to $4.56 per gallon or $192 per barrel on March 20. This was according to the trade group Airlines for America. This spread is included in the fuel price that airlines pay. If the spread widens, fuel costs for airlines can increase quickly, even if crude oil prices are not moving as sharply. Alaska Air Group CEO Benito Minicucci stated last week that the airline consumes approximately 100 million gallons per month. This means a $1 increase to jet fuel costs adds around $100 million to monthly costs. REFINERY OFFSET Delta didn't say how much the current Monroe spike could be offset, but filings show that it has kept fuel costs down in periods where refining margins have widened. Delta reported that Monroe had lowered its average fuel prices by 23 cents per gallon, 10 cents a year in 2023 and 4 cents a year in 2025. According to its reported fuel consumption, these reductions are equivalent to $785, $393, $41 and $171 millions, respectively. Monroe?generated $777 millions in operating income by 2022 when the refining margins surged following Russia's invasion in Ukraine, which disrupted global markets. Delta's fuel cost benefit has historically increased as refining margins widen and decreased when they shrink. Morningstar analyst Nicolas Owens says the structure can help to reduce the impact of spikes on refining margins. Owens said that when crack spreads increase, Delta pays itself the crack spread on the fuel portion. It does reduce the impact of fuel price increases for Delta. Refineries can also become a hindrance when margins are tight. Delta's filings reveal that Monroe suffered a $216-million operating loss in 2020 when the pandemic slowed jet fuel demand, and disrupted markets for refined products. How does it compare? The last time fuel prices spiked, the difference was noticeable. Delta's fuel costs rose from $2.02 to $3.36 per gallon, in 2022, bringing its annual fuel bill up from 20% to $11.5 billion. United Airlines paid $3.63 per gallon on average in 2022 compared to $2.11 a year earlier. This pushed its fuel bill up from 22% to 31%, or $13.1 billion. The mix of fleets, routes and other factors affect the price per gallon that airlines pay. RIVALS FEEL SQUEEZE Minicucci stated that Alaska is shifting fuel away from the U.S. West Coast -- including tankering from Singapore to Seattle -- because refinery margins in Alaska have driven jet fuel prices up about 20 cents a gallon. American Airlines said that higher fuel prices have added $400 million to the first quarter fuel bill. This is since their last update late in January. United CEO Scott Kirby told employees last week that fuel prices had risen by more than two-thirds in just three weeks. If sustained, this could result in an increase of $11 billion on United's fuel bill annually, which is more than twice its best ever yearly profit. Denton Cinquegrana is the chief oil analyst for Oil Price Information Service. Costs and Limitations Delta is still exposed to fuel price increases. The refinery's profits may fluctuate depending on market conditions. Refineries also incur regulatory costs. Delta reported that its expenses?for compliance with the U.S. Renewable Fuel Standard?rose to $312 millions?in 2020 from $203million in 2024. These compliance costs can eat away at the financial benefits Monroe offers in years where refining margins have been tight. DELTA'S EDGÉ Delta CEO Ed Bastian stated last week that rising jet fuel costs had increased the airline's fuel bills by about $400 million in March. He said that the refinery is a "meaningful hedge", in terms of the refining margins between crude oil, jet fuel and other products. He said that the refinery would not cover all of the cracks. "But it gives us an important hedge." Bastian stated that Monroe's profits would begin to contribute in the second quarter. (Reporting and editing by Rod Nickel; Additional reporting from Nicole Jao in New York, Chicago; Reporting by Rajesh Kumar Singh)
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UPS opens 100 million Taiwan logistic hub to meet the tech boom demand
United Parcel Service, riding on a wave of demand from tech companies, opened a new $100 million logistics center in Taiwan on Wednesday. It is the largest United Parcel Service facility in 'Asia Pacific. TSMC is the largest contract chip maker in the world and the dominant supplier of advanced semiconductors that are powering the boom of AI technologies. UPS announced that Applied Materials (the largest U.S. manufacturer of semiconductor equipment) will use the site in Taoyuan to serve as a distribution centre for Asia. Lauren Zhao, President?of UPS Asia Pacific Supply Chain Solutions and Freight Forwarding told reporters that 80% of freight was 'high-tech. She added, "Everyone knows Taiwan's semiconductor industries is the most advanced industry in the world. And?the manufacturing process related to the semiconductor industries is also where Taiwan leads?the world." UPS only currently flies out of Taoyuan Airport, but its managing director for Japan South Korea and Taiwan Sam Hung said that the company is also considering flights from Kaohsiung to the south depending on the demand. TSMC is building a 'large new factory' in Kaohsiung as part of a growing semiconductor cluster in southern Taiwan. (Reporting and editing by Alexander Smith; Ben Blanchard)
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Commerzbank's supervisory board met 11 times in order to discuss UniCredit 2025.
According to the annual report published by Commerzbank on Wednesday, a special committee of the?supervisory council met '11 times' in '2025 to discuss Italy's UniCredit. The Italian bank is the largest shareholder and made a hostile takeover bid last week. Commerzbank’s supervisory committee formed a temporary committee when UniCredit began to amass its large stake in?2024. The annual report stated that the committee had "conducted a thorough examination of UniCredit’s stake in Commerzbank, and its impact on the bank. It also received reports from the board of managing director as well as external and internal advisers." Last week, UniCredit increased the 'pressure on Commerzbank by submitting a lowball offer to increase its?stake above?30%. The?management of Commerzbank has called UniCredit’s approach hostile. UniCredit has been rejected by both the German government and unions. The German government is a large Commerzbank investor. In the annual report, it was stated that 'the special committee discussion?on UniCredit included a?market climate and the share price of both banks.
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Mobico, owner of National Express, appoints Iglesias to be its CEO in order to turn around the company
National Express's owner Mobico Group named insider Paco Iglesias its new Chief Executive Officer?on Wednesday. The company is looking to streamline its operations and increase profits. At 0836 GMT, the company's share price was down 1% to 19.6 pence. Iglesias is currently the chief operating officer of the company and has been the head of its largest unit, which is the Spanish transport business Alsa, since 2016. In a press release, Executive Chairman Phil White stated that "(Iglesias is) the ideal candidate to lead the business into its next chapter of growth and ensure the value inherent in Group's Portfolio is better reflected." Mobico took steps to help stabilize the business, including cost-cutting measures, integrating certain?of its companies and reevaluating contracts. White, who had taken on executive responsibilities in May of last year after the departure from CEO Ignacio Garat will resume his role as non-executive chairman starting October. In February, Mobico forecast an adjusted operating profit for 2026 of between 195 and 210 million pound ($261.03 to 210 million pounds), compared to the 198 million pounds reported by 2025.
Sources: Russia's Baltic ports halt oil loadings following massive Ukrainian drone attack
Two sources said that the Russian Baltic ports of Primorsk & Ust-Luga - major export terminals - halted crude oil & oil product loadings on a Wednesday, after a massive Ukrainian drone attack sparked an blaze visible from Finland.
The drone strikes on the Baltic ports are one of the biggest strikes against Russia's oil-exporting facilities during the four-year war, and will likely add to the uncertainty surrounding the global oil market amid the conflict in the Middle East.
According to?videos that were posted on Telegram, massive plumes of black ash billowed into the air on Wednesday. According to the newspaper?Helsingin Sanomat, the smoke could be seen dozens of mile away across the Gulf of Finland.
On Wednesday, Russian officials claimed that a fire had broken out in?Ust-Luga after an?attack by a Ukrainian drone. Primorsk, which is located nearby, has also been targeted in recent days.
In recent weeks, Ukraine increased drone attacks against Russian oil refineries, export routes, and other military targets in order to undermine Russia's war-economy and because the peace talks, mediated by Washington, are stalling.
Reports state that Ust-Luga, Primorsk and other ports on the Gulf of Finland were also forced to stop exports of oil and crude after drone attacks on Sunday, but tentatively resumed loadings of these products on Monday.
Primorsk is one of the major outlets for Urals crude and high-quality diesel.
Sources claim that Ust-Luga and Primorsk exported 32.9 million tons of oil-based products each last year.
Alexander?Drozdenko said that the fire broke out in Ust-Luga following a drone attack on the entire region. No injuries were reported.
Sources - who spoke anonymously - said that the terminal was'sealed and reservoirs are on fire.
The Russian defence ministry reported that 389 Ukrainian drones were shot down in Russia over night, including the Moscow region. (Reporting and aditional reporting in Helsinki by Anne Kauranen; Editing by Guy Faulconbridge and William Maclean).
(source: Reuters)