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Sources say that Iraq has suspended Iranian flights from Baghdad due to US sanctions threats
Two sources said that Iraq had ordered its civil aviation authority to suspend Iranian flights to Baghdad Airport starting on Wednesday. This was after the United States threatened to sanction any airport which services Iranian carriers. US Treasury Secretary Scott Bessent announced on Monday that secondary sanctions against air?services companies would shut down all Iranian airlines on September 23, seven months after the start of the war between Iran and the United States. Two sources with knowledge of the situation said that the Iraqi government was considering diverting Iranian Airways flights from Baghdad airport to Najaf. Two sources familiar with the matter said they spoke on condition of anonymity due to the sensitive nature of the issue. The suspension of flights will start at midnight on Wednesday. Iranian news agency Tasnim reported earlier, citing Iranian Civil Aviation Organization that flights between Tehran and Baghdad, Muscat, and other international destinations will be canceled beginning Wednesday. All?remaining flights, including Istanbul, will continue to operate as scheduled. A spokesperson for Iran’s Civil Aviation Organization said that Iranian travelers were not being admitted at the Oman airport. Consultations are ongoing regarding this matter. Bessent said to CNBC that if Iranian?airlines land in an airport "you can't provide them with fuel or landing services. You also can't sell them tickets. Or you will be kicked out of the Dollar system."
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US wants to spend another $30 billion on aviation systems
Sean Duffy, the US Transportation Secretary, said that he would ask Congress for another $30 billion to upgrade airport facilities and air traffic control towers. Duffy, who has sought billions of dollars more and demanded another $10 billion on Tuesday for airports, is adamant that Congress approves $12.5 billion over five-years in June 2025. Duffy, in a speech delivered in Washington, said: "We're going to ask Congress for 30 billion dollars." "We need to consider how the country has evolved and what the needs are at airports." A major 'telecom failure' on Monday paralyzed the traffic along the east coast for several hours, and disrupted thousands flights. Around $10 billion in funding is being sought to replace old air traffic towers, and another $10 billion for telecom systems and other technology used for air navigation control. The FAA has begun using a new software system that utilizes predictive analytics in order to improve the management of flights. Last week, a government report?said that Congress?needs more money to complete the first phase of air traffic control?program. It also said that the FAA?needs a?better estimate?of how much it will cost to run the new system. According to the report, the cost of telecommunications upgrades jumped from $4.75 billion to $5.91 trillion. FAA Administrator Bryan Bedford stated that outdated copper wires for telecoms should be replaced by September 2027.
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Trump arch drone plan needs FAA review, lawmaker says
A Democratic lawmaker stated on Tuesday that the Federal Aviation Administration would need to perform a safety analysis of President Donald Trump's plans to base military drones near his proposed triumphal arch, which is located near a Washington airport. Don Beyer, a US Representative from Virginia, said that Trump's plan for a large number drones to be placed at 76-meter arch (250-foot) near Reagan Washington National Airport could threaten aviation safety. He described the idea as "stupid and dangerous." Trump said on Sunday, at the request from the military that he would turn the arch into a complex military capable of deploying drones or positioning snipers. Last week, the FAA declared the structure safe for aircraft operations. However, this review did not include drone operations. The FAA did not comment immediately on Tuesday. It said last week that the arch wouldn't?pose any danger to aircraft, as long as it is topped by an "eternal fire." According to the FAA's decision last week, the arch must be marked by a floodlight projected onto it and a light placed on the top of the arch. This will make the arch visible to pilots. Aviation experts have raised safety concerns due to its proximity to airport's main departure and approach corridor. The arch is part a broader 'effort to remake Washington' by Trump, which includes renovating the Lincoln Memorial Reflecting Pool and redeveloping a?golf course?in East Potomac Park. He also wants to add his name to the John F. Kennedy Center for the Performing Arts. Preservationists say the projects will alter some of Washington's most prominent historic landmarks. Veterans have sued the government to stop the construction of the arch. They claim it will destroy the historic view between the Lincoln Memorial and the Arlington National Cemetery. The FAA has dropped a requirement for red obstruction lights that it had previously mandated on buildings over 200 feet (61 meters), such as the Washington Monument, which is 555 feet (169 meters) away from airports.
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Saudi Arabia denies purchasing oil tankers after Iraq accuses it of higher shipping costs
Saudi Arabia denied Iraqi claims that it had purchased 25 oil tankers. It said the information was incorrect, after Iraq linked a sharp increase in the cost of shipping crude to the alleged purchases. Basim Mohammed, Iraq's Oil Minister, told a session of the parliament that Saudi Arabia purchased 25 oil tankers for an estimated $4.5billion. He said these purchases had led to a sharp rise in the cost?of transporting Iraqi crude oil. On Monday, his remarks were posted by an Iraqi media outlet to Facebook. Mohammed claimed that transport costs had risen from 26 dollars per barrel to 37 dollars per barrel. Saudi Arabia and Iraq are two of the largest oil producers in the Organization for the Petroleum Exporting Countries. Rarely is there a public disagreement between their energy ministers. Saudi Arabia's Energy Ministry said in a statement that it did not purchase the tankers. It attributed the increase in oil transportation costs to a number of factors, such as regional military conflict, and disruptions to navigation through the Strait of Hormuz. The company said that these conditions had driven shipping costs to "exceptional" levels in the region. The dispute comes as the attacks on Saudi cities and energy infrastructure continue, raising concerns about global oil supply and threatening to disrupt the Red Sea - a major alternative export route for Gulf producers - while traffic through Strait of Hormuz is still disrupted. Iraq is one of the most affected countries by the closing?of this strategic waterway. Traffic through the strait is well below pre-conflict numbers and vessels are still facing attacks.
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Saudi Aramco is planning a reorganisation that will create a gas division, according to sources.
Two?sources who are familiar with the matter said that the Saudi?oil company Aramco is planning to reorganise their business in order to create a gas division, with the intention of listing business units to raise capital. This is consistent with the existing strategy of Gulf oil companies to 'offer outside investors pieces of their business while maintaining operational control, and largely avoid opening up their main oil producing divisions. ADNOC, the state oil company of the United Arab Emirates (UAE), has listed stakes in its gas, drilling, and retail fuel businesses. Aramco has a public listing, but it also lists subsidiaries like the petrochemicals company SABIC. Both ADNOC as well as Aramco have raised billions from infrastructure assets like oil and gas pipelines. Aramco has declined to comment. The new gas business will allow Aramco a platform to develop their natural gas resources in the domestic market and to build a portfolio of liquefied natural gas (LNG). Aramco has been seeking outside capital to help support the Kingdom's efforts to reduce its dependence on oil.
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Sources say that traders are pushing for lower prices for Venezuelan crude oil, as shipping costs have risen.
Five sources familiar with the matter said that global oil trading firms Vitol & Trafigura want steeper discounts on Venezuelan crude as rising freight rates are reducing their margins. Since the US captured Nicolas Maduro, the then president of Venezuela in January, and began to push to reactivate Venezuela's oil industry. The US has imposed severe sanctions on Venezuela's energy sector until recently, but the current negotiations for lower prices show the difficulties of operating in this volatile sector. The Merey heavy grade, the nation's most popular crude oil, has recovered from the steep discounts that were forced on it by sanctions up until 2025. As more traders and buyers enter the market, punishment clauses such as "imposing additional fees for loading tankers in countries with high security risks" have also disappeared from contracts. The return of large vessel owners has also helped to bring prices up to market standards. The recovery of the oil industry is under threat as the cost of transporting oil by tankers has reached record levels in recent weeks, following the 'largest wave of attacks against shipping since the US/Iran war began late February. One source said that the state oil company PDVSA recently agreed to prices between $12 and $13 per barrel below Brent with some joint venture partners. These partners were then forced to sell the crude at a discount of $16 to the benchmark due to market conditions. In an effort to increase cash flow and profits, the state-owned company recently attempted to sell more crude oil directly to refineries. Sources say that Trafigura, Vitol, and other companies are bidding 18 to 20 dollars below Brent on cargoes headed for the US and Europe. They claim to be doing this to cover the rising costs of freight, and to put further pressure on PDVSA. Venezuela informed OPEC that the formula price of Merey (or maximum it could fetch if market conditions were met) increased from $67.36 a barrel to $76.82 a barrel in August, up from $67.36. This was about $14 less than Brent. PDVSA didn't immediately respond to requests for comment. Vitol, Trafigura and other companies declined to comment. SURGE FREIGHT According to Signal Maritime, chartering an Aframax, which can 'carry around 700,000 barrels crude oil, from the Venezuelan Port of Jose to US Gulf Coast costs $3.5 million or $5 per barrel. This is up from $1.35million or $1.90per barrel at the'start of the year. "Freight is an issue of great importance." A trading source stated that refining companies don't want to pay the current price. Venezuela's oil output remained virtually unchanged at 1,17 million barrels of crude per day in August as its terminals struggled with larger volumes. Vitol, Trafigura and other companies?managed? to maintain their export volumes at?597,000bpd compared with 604,000bpd during July. The number of tankers waiting to be loaded and the average time they take to do so are at their highest levels since January, which could pose a roadblock to the US plan for boosting the South American nation's oil exports quickly.
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Murmansk, a Russian Arctic port, will start shipping grain using fertiliser equipment
The Black Sea route is still closed because of Ukrainian drone attacks, so Russia's Arctic Port Murmansk uses equipment that is typically used to load fertiliser. It could ship its first grain to the Black Sea as soon as next month. Murmansk, which is much farther away from Ukraine than Russia’s Baltic ports, can only be reached by neutral waters. Reports on Monday stated that Russian companies are repurposing terminals for fertiliser, coal, and other cargo at Baltic and Arctic port, Murmansk included, to handle grain exports. Murmansk Commercial Port, located 2,700 km (1 677 miles) away from Novorossiysk - Russia's major grain export 'gateway' - announced on Tuesday that it will use a system of direct transfer, which moves cargo directly from railcars into the'ships' hold, a method usually used for potash imports. The port said it had also adapted its conveyor systems in order to handle higher grain volumes. Modern grain terminals like those in Novorossiysk use storage elevators to give operators more flexibility. The dependence on direct transfers in repurposed terminals underscores the urgent need to restore export flows. In a recent statement, Andrei Riznichenko, director of Murmansk Port Operations said that it was important for the country's economy that Russian producers had several reliable options when it came to export logistics. Murmansk is Russia's 4th largest port. It has a?handling capability of up to 24 million tons per year, but it has never handled grain before. Analysts predict that Russian grain exports will halve between July and September due to the closure of Black Sea ports and the Sea of Azov. The?disruption of exports has led to a?decrease in domestic?grain?prices and a?build-up of unsold stock. The Kremlin announced on Tuesday that Russia is looking for alternative routes to export grain.
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Maguire: Rapid EV adoption in the US fuel market has caused a split.
Electric vehicles are on the rise across the US, creating a two-tiered market for fuel. This divides motorists into those whose prices are dictated by international oil markets and those whose bills depend on local electricity rates. Geographical factors are becoming increasingly important in determining transportation costs, and who reaps the benefits of energy transition. A COUNTRY WITH TWO FUEL MARKERS The cost of EVs is measured in kilowatt hours, while the price of gasoline per gallon is expressed in US dollars. Orennia, an energy intelligence platform, has published a list by US state that shows the cost of charging an EV in dollars per gallon. Orennia estimates that the average cost of charging an EV in the United States is around $1.56 per gallon. The American Automobile Association reports that the current price to refuel a gasoline vehicle is $4.43 per gallon. Orennia converts the cost of electricity at home overnight, since most US EVs charge their cars at home. It compares two similar-sized cars, the 2025 Hyundai ioniq 6 and the 2025 Hyundai elantra. The cost of recharging is different from the cost of gasoline. This can have a significant impact on the cost of living. One group is still exposed to OPEC, refinery shutdowns, geopolitical shocks, and local fuel inventories. One of the two depends on electricity generation mix, utility rates and state policies. WIDE DIVIDE Orennia data show that Hawaii is the most expensive for EV charging. The average cost there is $3.45 per gallon. Wyoming is the cheapest for EV charging, with an average price of around $1.14 per gallon. The $2.30 difference between the most expensive and the cheapest charging states for EVs highlights the vast differences in charging costs across the nation. The average national cost to charge an EV is about $1.56 per gallon. In 40 states, the average charging costs are less than $2 per gallon. According to the latest AAA data, California is the top state in the nation for gasoline prices. The average cost per gallon is $6.08. Indiana has the lowest average gas prices, at around $3.92 per gallon. Gasoline prices in 44 states are currently above $4.00 per gallon. The difference between the most and least expensive states is approximately $2.17. The average national gasoline price is around $4.43 per gallon. This is 18% more expensive than the average cost of charging a mid-sized electric vehicle. Global Ties The smaller price difference between the most affordable and the least expensive gasoline markets, compared with the range in EV charging cost, highlights the greater exposure of US gasoline consumers to global markets. There are certain regional trends on the US fuel market. The West Coast is among the most costly, while the Gulf Coast is one of the least expensive, aided by the proximity of refineries and energy production. While there are differences at the state level, gas prices tend to move in a similar direction because they all share the same oil market. When there are crude rallies, drivers from Arizona to Wisconsin feel the effects. The gasoline market is still largely domestic and becoming increasingly global. ELECTRICITY IS LOCAL Electricity prices are clustered around regional utility structures, rather than a national pattern. Hawaii is the most expensive for charging an electric vehicle, with a cost of approximately $3.45 equivalent to a gallon. California is close behind. Hawaii's grid is isolated, making it more expensive to generate electricity than in the continental United States. California, on the other hand, has a stretched infrastructure and has implemented wildfire mitigation policies, which have led to higher utility costs. New England's Connecticut, Massachusetts and Maine are also among the most expensive states. Louisiana, Idaho Washington, Utah, and some Plains states are at the opposite end of the spectrum, where EV fuel costs are below or close to $1.10 equivalent per gallon. Depending on where you are, these differences can be huge and change the appeal of EVs. Fuel costs for a driver charging an EV in Hawaii are more than three-times higher than those of a driver in Louisiana. Few consumers are aware that the cost to operate the same vehicle in different countries can be so vastly different. But EVs are currently cheaper to refuel than gasoline everywhere. Even in Hawaii where electricity is most expensive, driving an electric vehicle costs less than regular gasoline. Californian drivers pay among the highest prices in the nation for both electricity and gasoline. Even then, EV owners still enjoy a significant advantage in terms of operating costs. Future Control Charges for fuel are lower than they were in the past, but this has implications that go beyond household bills. Transportation costs in the US have been largely determined by factors that are beyond the control most consumers and state governments. Crude oil, refinery capacity and fuel inventories, as well as geopolitical events, were the main factors that determined what drivers paid to fill up. In addition to utilities, power producers and state regulators, transportation costs are also increasing as EV adoption increases. The amount drivers will pay per mile is likely to be influenced by residential electricity rates, plans for time-of-use pricing and investments in the power infrastructure. Transport costs are now linked to both global and local energy markets. This shift will result in new regional winners as well as losers. Electric vehicles could offer a cost advantage to drivers in states that have abundant, low-cost electricity. Residents of states with high power prices will likely see less economic benefit from the switch. In this?sense the switch from gasoline to electric power is not just about changing the fuel type that powers the cars of the nation. The price of mobility is changing as well. The geographic factor will become more important as the number of Americans switching to electric vehicles increases. These are the opinions of the columnist, an author for. You like this column? Check out Open Interest, your new essential source for 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.
US: New air traffic control system won't cause disruptions
U.S. Secretary of Transportation Sean 'Duffy announced on Tuesday that the US government is working to develop a modern and resilient air traffic control system. This will prevent massive outages in telecoms like those that disrupted thousands flights this week.
This won't be happening in the future, thanks to the new architecture. There will be no single point of failure or double points. Duffy said on Fox News' "Fox and Friends" that there are multiple ways to bring telecom into our facilities.
About 9,500 flights were delayed or canceled on Monday due to a failure of a telecom switch and an accidentally cut fiber optic cable. Flights were delayed or cancelled after a failure of a telecommunication switch and an accidentally cut fiber-optic cable. The Federal Aviation Administration had to stop flights to New York, Philadelphia Boston, and Washington for several hours.
The operations were mostly normal on Tuesday. Over 600 flights were cancelled Monday at 'Newark Liberty. That is more than half of the flights. The airport is a major hub for United Airlines. As of 10:30 am, about 60 flights were canceled and 70 more delayed.
The incident showed the fragility and age of the US air traffic system. Congress allocated $12.5 billion last year for upgrades.
A government report released last week revealed that the cost of telecommunications upgrade has increased from $4.75 billion up to $5.91billion. FAA Administrator Bryan Bedford stated that outdated copper wires in the telecom industry should be replaced completely by September 2027.
Around 9:45 am on Monday, a telecommunications line used by the FAA was accidentally cut in New Jersey. The issue began around 9:45 a.m. Monday when?workers accidentally cut a telecom line in New Jersey used by?the FAA.
The FAA halted arrivals at the three main airports of New York, as well as?Philadelphia, Washington Reagan and Boston?and?two smaller airports?in the?New York region. It took eight hours to resolve the problems.
This issue forced more than 100 flights from one airport to be diverted to another.
(source: Reuters)