Latest News
-
Bloomberg News reports that Spirit Airlines' discussions on $500 million US Rescue Financing have stalled.
Bloomberg 'News'reported that Spirit?Airlines has?hit a halt in their discussions regarding a possible $500 mln U.S. Government rescue financing, citing?sources. The report stated that a group of lenders including hedge fund Citadel is fighting back against proposed terms which could?significantly erode the value of their claims? and limit recovery. Could not immediately verify the report. Citadel and Spirit did not immediately respond to requests for comments. Spirit's rescue funding has hit a roadblock, just hours after it was reported that the airline had secured the support of two of three of its major creditor groups to secure a bailout. Last week, U.S. president Donald Trump said that his administration would consider buying the embattled carrier?at "the right price." A hearing in the New York Federal bankruptcy court could be held on Thursday if all the 'Spirit Creditor Groups' agree on the bailout agreement.
-
Reports that the US will prolong its blockade of Iran, causing supply disruptions in the Middle East, have caused oil prices to rise.
On Wednesday, oil prices rose, continuing a multi-day rally. This was based on reports that the U.S. would extend its blockade against Iranian ports. This will likely cause supply disruptions in the Middle East's key producing region. The Wall Street Journal, citing U.S. sources, reported that Donald Trump had instructed his aides to get ready for an extended Iranian blockade. The report stated that Trump would continue to'squeeze Iran’s economy and oil output by preventing shipping into and out of its ports. Brent crude 'futures' for June rose by 52 cents or 0.47% to $111.78 per barrel at 0154 GMT. This was the eighth consecutive day of gains. The June contract expires Thursday, and the more actively traded July contract is at $104.84, an increase of 0.4%. U.S. West Texas Intermediate futures (WTI) for?June climbed 57 cents or 0.57% to $100.50 per barrel, after rising 3.7% the previous session. The price has risen seven of the last eight days. The recent increase in oil prices is due to the Strait Blockade. If Trump extends the blockade further, oil prices will continue to rise if supply disruptions worsen. Although there is a truce in the U.S. and Israeli war against Iran, the conflict remains "deadlocked" while both sides seek to end the fighting. Iran has blocked shipping through the Strait of Hormuz - a channel for 20% of global oil and natural gas supplies - and the U.S. has blockaded Iranian ports. The United States is pressing for an end to what it claims is Iran's nuclear weapons programme. Meanwhile, Iran demands some form of reparations from the latest?round of fighting and an easing in economic sanctions. The?U.S. is pressing for an end to the alleged nuclear weapons program of Iran, while Iran demands some form of compensation from the recent?round of fighting and an easing of the economic sanctions. Market sources say that the Hormuz shut down is continuing to cause global inventories to be drained. Late?on Tuesday, the American Petroleum Institute announced a?U.S. The American Petroleum Institute reported?U.S. crude oil inventories were down for the?second consecutive week. Sources reported that crude stocks dropped by 1,79 million barrels during the week ending April 24. Gasoline inventories dropped by 8.47 millions barrels while distillate stocks fell by 2.60million barrels.
-
MISO, the US grid operator, says that it has enough buffer to cover peak summer days
The regional grid operator of 15 U.S. states in the 'Midwest' and 'South, said that its annual capacity auction showed there would be enough electricity this summer to meet peak demand. The auction prices of $424 per megawatt day indicate that the risk of summertime blackouts remains elevated in much of the territory controlled by the Midcontinent Independent System Operator. The annual auction ensures that the power plants can meet peak demand for electricity. The U.S. regional grid operators are struggling to keep reserve margins adequate due to the surge in demand from data centers that use a lot of energy and electric vehicles. MISO stated in a press release that "while summer prices reflect a tighter balance between demand and supply, the overall system shows enough capacity to satisfy expected needs throughout all seasons." MISO stated that there was more capacity than the target buffer. The auction cleared 3.5% above the 7.9% summer planning reserve margin. (Reporting by Tim McLaughlin, Editing by Chris Reese).
-
HSBC expects UAE's exit to have a limited impact on OPEC+ in the near term
HSBC stated in a research note published on Tuesday that the United Arab Emirates' exit from OPEC, and the wider OPEC+ coalition from?May 20, 2026 will have a limited impact?on the oil markets. However, it could weaken OPEC's ability to manage prices and supply over time. The?UAE?,?one OPEC+'s biggest producers?, announced on Tuesday that it would be leaving both OPEC+ and OPEC, dealing a major blow to the producer's group, as the U.S./Israeli war against Iran disrupts the energy flow. HSBC predicts that global oil supplies will remain stable in the short term as disruptions to the Strait of Hormuz have effectively closed it since late February. The bank stated that?any increase of UAE production is limited while shipping access remains restrictive. The bank said that the Abu 'Dhabi Crude Oil Pipeline which bypasses Hormuz and transports crude to Fujairah has a capacity of up to 1.8 million barrels a day. It is probably already at or near full utilization. HSBC stated that once access to the Hormuz is restored, the UAE won't be bound by OPEC+ quotas, and can gradually increase output. The bank estimates Abu Dhabi National Oil Company's production could reach more than 4.5 millions barrels per day compared to an OPEC+ quota for May 2026 of approximately 3.4 million bpd. The bank said that any increase in the supply of oil is expected to be phased-in over 12 to 18 months, rather than delivered instantly. This is in line with ADNOC’s stated intention to gradually raise production and to adapt to market and demand conditions. The bank stated that additional?UAE barrels will help to'rebuild global oil inventories following recent draws. HSBC stated that the long-term impact of the loss of a key?Gulf Member could be detrimental to OPEC+'s cohesion, credibility and supply management. The UAE's growing production capacity, long-term investments, and $150 billion program until 2030 suggest an intention to monetise the reserves with less output constraints. Loss of UAE participation may also increase the risk that other members will not adhere to their obligations. HSBC stated that if collective discipline is weakened, OPEC+ could struggle to manage the price during periods of softer demands or increasing non-OPEC supplies. (Reporting and editing by David Gregorio in Bengaluru, Anmol Choubey from Bengaluru)
-
ONEOK increases its profit forecast for 2026 after increased volumes drive quarterly beat
U.S. Pipeline Operator ONEOK increased its annual earnings forecast 'on Tuesday, after reporting a first-quarter core income that exceeded estimates. This was due to higher volumes in its natural /gas liquids, its gas?processing, and its pipeline systems. The 'company' raised its expectations for 2026 net profit to a range between $3.21 billion and $3.79 billion compared to its previous forecast of $3.19 to $3.71. The company also raised its EBITDA forecast to $8.0 to $8.5 billion from the previous range of $7.9 to $8.3billion. Midstream operators in the U.S. are benefiting from the rising production of shale gas, especially from the Permian basin, and from expectations that record-high flows will be achieved across?the U.S. Natural Gas System by 2026. This is due to stronger LNG exports as well as a rise in power demand from data centers. Pierce Norton, CEO of ONEOK, said, "Strong performance in a number of business segments is bolstering our outlook. It builds momentum throughout the year, and supports increased financial guidance expectations for 2026." According to LSEG data, the adjusted EBITDA for the quarter January-March rose to $1.997 Billion, exceeding analysts' average estimates of $1.95 Billion. Natural gas liquids segment (NGL) adjusted EBITDA quarterly rose by 11%, to $706m?from the year before. The company reported a 15% increase in the?NGL raw feed throughput volume, while refined product shipments increased by 12% and natural gas processing volumes increased by 5%. ONEOK?transports crude oil, refined products, and natural gas through its 60,000 mile-long pipeline network. Over the last two years, the company has acquired a number of companies, including Medallion Midstream, EnLink Midstream, and a Gulf Coast NGL pipeline from Easton Energy. (Reporting and editing by Sriraj Kalluvila in Bengaluru, Sumit Saha & Arunima K.)
-
San Francisco and Port of Oakland resolve airport trademark litigation
According to a Tuesday press release, the City of San Francisco & the Port of Oakland have settled their dispute over the trademark "San Francisco". Port?of?Oakland decided to rename its airport to "San Francisco Bay Oakland International Airport" before. San Francisco claimed in a court case that the name would confuse people with its San Francisco International Airport. According to the press release, the agreement allows Port of Oakland to refer its airport as "Oakland San Francisco Bay Airport", but restricts its use of "San Francisco Bay" and "International". Port of Oakland attorney Mary Richardson stated: "We are proud that Oakland fought and preserved the right to keep our airport's name, which puts Oakland first. It also recognizes OAK’s location in San Francisco Bay." San Francisco City Attorney David Chiu stated that the city was "pleased" that they were able to reach a resolution that met Oakland's needs while protecting the San Francisco International Airport trademark. Port of Oakland has announced that it will change its name to Oakland International Airport in March 2024. San Francisco sued Oakland in April for infringement of its trademarks, claiming the Oakland airport would confuse travelers with its similar new name. Thomas Hixson, U.S. Magistrate judge, temporarily blocked the name change later that year. He found "San Francisco Bay Oakland International Airport", would likely confuse consumers into believing it is affiliated with the city of San Francisco. The port argued that this name accurately describes the airport's position on San Francisco Bay and stated that airports in Chicago, Dallas, London, Paris,?and Beijing shared their cities' names peacefully. Oakland International Airport is located just 30 miles (48 km) from San Francisco International Airport. Blake Brittain, Washington Bureau Chief; Daniel Walling, Editor
-
US companies show resilience as Iran war threats mount
The top American companies, from GM and Coca-Cola to Coca-Cola, are trying to reassure their investors that they will be able to weather the financial fallout of the Iran War despite the fact that fuel prices and packaging costs have risen. Since the beginning of the conflict, oil prices have increased dramatically. This has pushed up the cost of inputs in industries that are already under pressure from U.S. Tariffs. This increase forces companies to consider price increases at a time consumers are already feeling the strain. Reviewing company statements from the'start of war' revealed that 24 companies had withdrawn or reduced their forecasts. 35 of them have indicated price increases and another 35 warned of financial losses. But on Tuesday, a number of executives sounded confident, relying on hedging and prior purchase contracts, strong demand, or the ability offset costs in other areas. Coca-Cola is one of the companies that has been optimistic, relying on the demand for their sodas. CFO John Murphy stated that, like PepsiCo had secured some lower prices prior to the start of the current disruption. Even though the beverage giant has a higher cost of packaging plastic and aluminum, it still faces a higher price for certain finished products. Murphy stated that the company "is working hard with our bottling partners" to deal with the consequences of the Middle East situation. Wall Street has also been influenced by the optimism. Analysts increased expectations for the first quarter S&P 500 'earnings to 16.1% by April 24, up from 14.3% before the war started. David Morrison is a senior analyst at Trade Nation. He noted that CFOs and CEOs were required to give bullish signals. The market could punish these stocks if they start to sound less bullish, citing increased energy costs, or the war in Iran. United Parcel Service, for example, took a more conservative approach, repeating its revenue targets for the full year, while also warning of the potential impact that rising fuel prices may have on demand. "It's early in the year, and there is war in the Middle East." UPS CEO Carol Tome stated that high gasoline prices may have an impact on demand at the end of the calendar year. Detroit automaker General Motors, for example, signaled they've been through this before and are in a good position to navigate the storm. Mary Barra, CEO of General Motors, said: "We clearly operate in a dynamic environment. This is not unusual for our industry." GM expects raw material, chip and logistics inflation to reduce annual earnings by $1.5 - $2 billion. This is $500 million more than what it had estimated at the end of last year. However, it still raised its earnings forecast for the full year, citing a strong U.S.'market and a tariff refund that was expected. Procter & Gamble, the global consumer goods bellwether, was the only one to be outliers, at least in comparison with airlines. Last week, the company warned that oil prices would cause a $1 billion loss on its fiscal 2027 profits. Jet fuel prices have nearly doubled in the last two months, putting airlines at risk of spiraling costs while also selling tickets. JetBlue Airways will?slow hiring, reduce capacity and raise fares to ease the blow following a larger first-quarter loss which threatens to derail their turnaround. The risk of further margin erosion and the 'limitation on how much cost can be passed along? still looms large. "If energy costs continue to rise, every sector of the economy will be affected." "The cost of manufacturing goods increases, which leads to higher inflation, which is then passed on to consumers, and this means a weaker consumer," said Peter Cardillo. Chief market economist at Spartan Capital Securities, New York. In other words, consumers are cutting back on their spending.
-
Joby performs first point-topoint air taxi flight test in New York
Joby Aviation has been testing the first point to point?air taxi demonstration flight in New York City for a week as it gets closer to gaining government approval for commercial electric'vertical takeoff & landing?aircraft. The Federal Aviation Administration announced a pilot program in September that included the testing of eVTOLs. On Monday, a Joby aircraft departed JFK Airport and landed in the existing heliport networks of New York, including Downtown Skyport and the West 30th Street & East 34th Street Heliports located in Midtown. There are more tests planned throughout the week. Air taxi companies are racing to obtain?approvals for air taxi aircraft and to commercialize them to meet the demand for a faster, more efficient and sustainable urban transportation. They promote eVTOLs which can land and take off vertically, making it easier for them to get to airports. The company aims at connecting Lower Manhattan and?Midtown with JFK within 10?minutes, a journey that would otherwise take over an hour due to New York traffic. Joby has said that it is making progress on the FAA certification process after its recent flight. This was a necessary step before FAA Pilots could perform additional tests. Joby stated that the New York campaign builds on a series of piloted demonstrations in the San Francisco Bay Area. The New York campaign places the aircraft into real flight routes, and in real environments, within one of the most dynamic cities around the world, to demonstrate the acoustics, and performance metrics, which are critical for unlocking the urban aerial share market. In June, President Donald Trump signed an executive order to create the program. Other countries such as India, China, and the United Arab Emirates are also working to accelerate deployment of eVTOLs. These aircraft could start carrying paying passengers later this year. Delta Air Lines will invest $60 million and get a small stake in the partnership in?2022. The partnership will eventually provide air taxi transportation to and from New York Airport and Los Angeles Airport. (Reporting and editing by Edward Tobin; David Shepardson)
Bousso: Iran's 'tollbooth' at Hormuz will hard-wire higher energy costs
For now, the war that shut down the Strait of Hormuz is over. Tehran's insistence on acting as the toll booth keeper for the world's critical?oil artery could make energy markets more vulnerable and lead to higher prices. According to U.S. president Donald Trump, the U.S., Iran and Pakistan agreed to a ceasefire on Tuesday, which was mediated by Pakistan. Tehran must halt its blockade against oil and gas through the Strait. According to an Iranian official, the waterway through which a fifth or more of the world's gas and oil flowed prior to the U.S./Israeli war against Iran, it could reopen by Friday, but in a?limited?fashion, under Iranian control. Tehran also said on Tuesday that it would charge ships passing through the strait a fee under a permanent deal. The strait is only 34 km wide (21 miles) at its narrowest part between Iran and Oman.
Some media reports suggest that Oman is strongly opposing any such toll system under the existing agreements. Others claim that a similar toll system already exists.
In an interview with ABC News, Trump stated that the U.S. also considered setting up a joint-venture to charge ships tolls to access Hormuz. It is unclear how such a plan would work in reality. Iran could have the upper hand. The conflict has shown?Tehran’s ability to use drones, sea mines and missiles to attack dozens of vessels - giving it powerful leverage without a formal ban.
A toll system in Iran would violate one of the most fundamental principles of international law, freedom of navigation. Under this principle, ships may navigate international waters free of interference by coastal states. The United States has always positioned itself as a global guarantor, enforcing that principle through diplomatic pressure and naval patrols.
Washington would be forced to make a major strategic shift if it allowed Iran to control the Hormuz Strait. This would also represent a shock to the Middle East's oil and gas industry, which is the lifeblood of many countries, including Saudi Arabia, United Arab Emirates, and Qatar.
This would create a layer of permanent political risk, both for Gulf producers and customers. Tehran would have disproportionate control over which ships could transit at what time. Iran could, for instance, outright ban Israeli-owned vessels, slow Saudi shipments in order to exert pressure on Riyadh or use delays as a leverage in unrelated disputes.
They would not want Tehran to have such a strong grip on their main trade route. The implications for Asian buyers would be serious. China, Japan South Korea and India are heavily dependent on Gulf supply. Even modest and unpredictable disruptions could have a significant impact on refining margins and spot prices for liquefied gas and inflation expectations.
It is unclear how much damage will be caused by the transit of vessels from Iran to friendly nations like China, India, Iraq, and Pakistan.
HIGHER COSTS
The toll could be significant financially. According to reports, the toll could cost as much as $2 million for each transit. This is roughly equivalent to the total cost to charter a large crude carrier to travel from the Middle East all the way to China in 2025.
In addition to the death toll, increased security risks will increase insurance premiums for LNG carriers and tankers entering the Gulf. This will further drive up transportation costs. The war-risk premiums, which were volatile even before the conflict, will likely continue to be a structural feature of the market.
Some ships could try to follow the coastline of Oman while transiting Hormuz. This would reduce the overall traffic volume and still expose ships to Iranian missiles, drones, and fast-attack craft.
ALTERNATIVE ROUTES OF EXPORT These risks, combined with the uncertainty surrounding relations with Iran, will likely lead Saudi Arabia and UAE to continue using alternative oil export routes that were used during the war for many months, if they are not years.
Saudi Aramco, the state oil giant, began pumping large quantities of crude through its East West pipeline to the Red Sea Port of Yanbu soon after the outbreak of war on February 28. This was done in accordance with contingency plans that were developed specifically for such a situation.
The pipeline can transport 7 million barrels a day. Of this, 5 million barrels a day are exported, and the remainder is used to feed domestic refineries. According to Kpler, Saudi Arabia exported an average of 3.3 million barrels per day from its west coast ports in March. This is nearly half of the volume it will export by 2025. Even these alternatives have proven to be vulnerable. An industry source said that the East-West pipeline had been hit by an Iranian attack just hours after ceasefire announcement. Flows were expected to be affected.
The UAE also diverted additional volumes via its pipeline to Fujairah's oil terminal outside of the Gulf. Kpler reports that exports from Fujairah increased to 1.6m bpd from averaging 1.1m bpd since 2025. These routes are essential for producers and buyers to hedge against the Hormuz threat, but they do not offer a full solution due to their limited capacity and vulnerability to regional tensions. The mere possibility of Iranian oversight is already changing risk perceptions, even if the full toll system never materializes. Iranian control of the Strait would give Tehran disproportionate power in the region's economic lifeline. Saudi Arabia and allies will resist this, whether diplomatically or not. Although the ceasefire is holding, for Gulf oil exporters and their allies, the battle for Hormuz has just begun. Ron Bousso is a columnist at.
You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn 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 seven days a weeks.
(source: Reuters)