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Maersk: US-Iran ceasefire could create Strait of Hormuz Transit Opportunities
Maersk, a Danish shipping company, said on Wednesday that the 'ceasefire' between the U.S.A. and Iran could create transit opportunities for ships in the Strait of Hormuz but it didn't yet provide full maritime security. The 'war, which began in February with U.S. and Israeli strikes against?Iran, then Iranian attacks in the region, and the closure of the 'Strait of Hormuz has brought shipping to a standstill in the Gulf, affecting global supply chains. Maersk stated in a statement that "any decision to transit the Strait of Hormuz would be based upon continuous risk assessments, close monitoring?of the?security situation, and the available?guidance?from relevant authorities. The company stated that "at this 'point', we are taking a cautious stance and will not be making any changes to specific services." (Reporting and editing by Terje Solsvik, Stine Jacobsen & Louise Rasmussen)
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India reduces some airport charges by 25% to help airlines
India's airport regulator has ordered major airports to reduce?landing charges and parking fees by a combined?25% over a period of three months for domestic flights. This will provide relief to airlines in the country that are facing financial strain due to the Iran War. IndiGo and Air India had asked for the rationalisation of some airport fees. Indian airlines, the country's two largest airlines, are already barred from flying over Pakistan because of the Iran -war. According to the airline lobby group International Air Transport Association, airport and air navigation charges are the third most expensive expense for airlines in terms of fuel and labor. IndiGo shares rose as high as 10% on Wednesday, reaching the upper limit. The broader airline sector was also up after the U.S. declared a ceasefire of two weeks with?Iran. AERA, acting on government directions, announced that the temporary reduction of charges would apply immediately and any revenue under-recoveries will be addressed at future tariff reviews.
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Bousso: The energy market is in a twilight area because of the ceasefire between Iran and ROI
The Iran war ceasefire will bring much-needed relief to the economies that are suffering from the worst energy crisis in history. However, hopes of a quick return to normal oil and natural gas flow out of the Middle East is almost certain misplaced. Donald Trump, U.S. President, agreed on Tuesday to a ceasefire for two weeks, provided that Iran halted its blockade of oil-and-gas shipments through Strait of Hormuz. This 'narrow waterway' is responsible for about one-fifth of the global oil trade. Iran's Abbas Araqchi, the country's Foreign Minister, said Tehran would stop counter-attacks on vessels transiting through the Strait of Hormuz and ensure safe passage. Uncertain is the exact time frame in which the ceasefire will be fully implemented. Iran continued to attack Israel and Gulf states shortly after Trump announced the deal, underscoring its fragility. In its sixth week of fighting, the war has already claimed over 5,000 lives in nearly a dozen different countries. It has also severely damaged regional infrastructure including oil and gas installations. The financial markets welcomed the news. The Nikkei index in Japan rose 5%, reaching a new high. Brent crude fell 13%, to $95 per barrel, by 0300 GMT. Traders priced in an easing of the supply risk. QUICK RELIEF VAULT The reopening and temporary stoppage of fighting at Hormuz will allow Middle Eastern oil exporters to ship large volumes of oil trapped in the Gulf since hostilities started, providing immediate relief to global energy markets. Kpler, a company that provides analytics services, estimates that around 200 tankers are presently?floating in the area with roughly 130 million barrels crude oil and 46 millions barrels refined fuels. Another 1.3 millions tonnes of liquefied gas is also stuck on vessels waiting for safe passage. The disruption was particularly serious for Asia, where 60% of its oil and 80% of its gas are imported from the Middle East. Following the abrupt stoppage of deliveries, several countries were forced to reduce industrial production and ration fuel. These trapped volumes could therefore be released to ease the greatest pressure on Asian economies. Clearing the backlog is just one part of the issue. It is one thing to get tankers out of Gulf, but it is another to convince shipowners and chartered vessels to return. The unprecedented 'blockade of Hormuz' has severely disrupted global shipping markets by reducing the availability of tankers and pushing freight rates up to record levels. Shipowners will likely be extremely cautious when reentering the area during a ceasefire that is at best shaky, and limited in time. They fear their crews and vessels could become trapped again if hostilities return. This caution will also constrain any attempts to restore normal export flows. OIL PRODUCTION IN LAG Kpler reports that Middle East oil exports via Hormuz fell by 13 million barrels a day (bpd), which is equivalent to 13% of the global demand. Saudi Arabia and the United Arab Emirates diverted some shipments via alternative routes. However, the disruption forced producers in the region to close an estimated 7.5 millions bpd production in March. This included 2.8 million bpd for Iraq and 1.9million bpd for Saudi Arabia, which is the world's biggest exporter. It is not likely that much of this production will return quickly. It can take several weeks to restart oilfields in the Middle East. Saudi Aramco, the UAE's Adnoc and other national oil companies are likely to delay restoring production until they have more clarity about the durability of the ceasefire. Repairing refineries, fields, and export terminals that have been damaged by drone and missile strikes could take months, or even years. The region is also facing a shortage of skilled workers and specialised equipment, which could slow down restoration efforts. It is important that producers do not restart refineries and fields if they are not confident there will be enough tankers to move their crude oil, diesel, and jet fuel. If Washington and Tehran agreed to a permanent cessation in hostilities, which led to the full opening of Hormuz and oil and gas trading could eventually return to normal operations. Even in this more optimistic scenario, however, the war will likely leave lasting scars to global supply. According to Saul Kavonic of MST Marquee, who is the head of energy analysis, in the medium-term, oil markets could be 3 to 5 millions bpd tighter than they were pre-war, due to the damage done to export infrastructure, and the need to replenish?depleted stocks. The two-week-old ceasefire that is now in place risks becoming a temporary fix to what has become a global energy crisis of unprecedented proportions unless the warring sides reach a more firm peace agreement. The opinions expressed are those of Ron Bousso a columnist at. This column is great! Open Interest (ROI) is your new essential source of 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.
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CK Hutchison Panama's unit files arbitration against Maersk regarding ports takeover
Hong Kong's CK?"Hutchison"'s Panama unit launched arbitration against?"Maersk following the takeover two strategic ports close to the Panama Canal which are at the center of an?legal battle? that has embroiled Beijing & Washington. Panama Ports Company said in a statement that Maersk had violated a contract with them by siding with the Panamanian Government to remove PPC's operations from the Balboa Port and replace it with an operator affiliated with Maersk. PPC released a statement saying that Maersk had violated the contract and allied itself with the Republic?Panama through its state-led campaigns against PPC, and a plan to replace it by?a takeover which installed new port operators. The Supreme Court of Panama ruled in late January that the concession granted to PPC by the 1997 agreement, which gave it the right to operate terminals facing the Pacific (Balboa) and Atlantic (Cristobal) on either side the Panama Canal, was invalid. The government awarded temporary contracts to subsidiaries of Maersk, Mediterranean Shipping Company (MSC), and Balboa and Cristobal respectively, by the end of the month. This dispute has also complicated CK Hutchison’s planned $23 Billion sale of a majority stake in its global port business to a consortium headed by BlackRock and MSC. The court decision came after the Trump administration, which claimed it wanted to "takeover" the Panama Canal and curb what they called Chinese influence on the waterway that carries 5% of the global maritime trade, pressed for the ruling. Beijing accused the U.S. PPC stated that the arbitration would take place in London and that it was separate from and unrelated to its ongoing efforts "to hold Panama responsible for its anticontractual and antiinvestment conduct." Maersk and the Panamanian government did not immediately respond to comments.
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Delta Air and Southwest Airlines raise checked baggage fees in response to rising jet fuel prices
Delta Air Lines & Southwest Airlines announced on Tuesday that they will increase fees for checked baggage. The carriers are trying to offset the rising costs of jet fuel due to the escalating Middle East tensions. After tensions in the Middle East disrupted shipping through the Strait of Hormuz, the global aviation industry has struggled with high fuel prices. According to the International Air Transport Association, jet fuel prices have risen to $209 per barrel worldwide, up from $85-$90 a barrel in February, before 'the Iran War. Delta and Southwest announced that fees for checked baggage would rise by $10 for new bookings. The first bag will now cost $45 and the second $55. Delta, which plans to increase fees on select domestic and short-haul routes internationally, has announced that the third checked bag fee will go up from $50 to $200. Delta said that the increases would apply to all bookings made after Wednesday. Southwest will apply the increase to bookings made after Thursday. United Airlines and JetBlue Airways have both made similar moves to increase domestic baggage fees. Like some of its rivals, Delta has a buffer. It is a refinery owned by a subsidiary in Pennsylvania. The refinery is capable of producing 190,000 barrels a day, which provides nearly three quarters of its fuel requirements. However, it remains vulnerable to price spikes for crude oil. The benefits of checked baggage?connected to frequent-flyer programmes, premium fares and cobranded credit cards will remain the same. Delta has confirmed that there will be no change to the baggage fees for long-haul flights. Reporting by Shivansh Tiwary in Bengaluru and Megavarshini G. Somasundaram; editing by Vijay Kishore
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Chicago jet fuel reaches $5 per gallon as refiner repairs add to the war-related surge in price
Chicago is now the most expensive jet fuel market in the United States, with prices exceeding $5 per gallon. This is due to the disruptions caused by the Iran War, combined with scheduled refinery maintenance, which has left a tight supply. The blockade of Iran's Strait of Hormuz - a major chokepoint for Middle Eastern oil exports - has caused energy prices to rise worldwide. This has forced airlines to raise fares and reduce capacity as a result of jet fuel shortages. GasBuddy analyst Patrick De Haan says the Chicago area is being hit by ongoing refinery maintenance, which has driven jet fuel prices up to $5 per gallon on the regional wholesale market. He said that before the Iran War, Chicago spot jet fuel traded for about $2.47 per gallon. Chicago's O'Hare International Airport, one of the busiest in the world. Other U.S. markets for spot jet fuel have seen a less dramatic rise in prices. New York Harbor jet 'fuel was $4.85 per gallon on Tuesday, up from $2.51 before the war. U.S. Gulf Coast jet fuel is now $4.86 per gallon, up from $2.39 prior to the conflict, De Haan reported. Phillips 66's 356,000-barrel-per-day Wood River refinery in Illinois took its crude oil unit and some other parts of the refinery offline at the end of ?February for a 45-day maintenance period, industry monitor IIR Energy told . IIR reported that Marathon Petroleum's 253,000 bpd Robinson Refinery in Illinois began scheduled maintenance?inmid-March. Units are expected to be offline until mid May. The Midwest's refinery outages were the highest in all U.S. regions for the week ended April 3. Hillary Stevenson is vice president of energy intelligence at IIR. GasBuddy's De Haan said that refinery problems are impacting the?supply of refined products and their pricing. Sharp increases in spot trading will be passed on to consumers soon. Market participants reported that cash differentials for Chicago spot?diesel rose 25 cents per gallon on Tuesday to trade at a 5-cent premium to the benchmark ultra-low sulfur diesel. (Reporting from Shariq Khan, New York; editing done by David Gaffen.)
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US Transportation Secretary sees space for airline mergers
?U.S. Sean Duffy, Transportation Secretary for the United States, said that he believes there is still room for consolidation within the airline industry. Sean Duffy, Transportation Secretary, said on Tuesday that he believes there is room for consolidation in the?U.S. Duffy stated on CNBC that if there were a merger of some of the bigger airlines, some of their assets would need to be separated. "I will not pre-commit to anything." The sharply increased jet fuel prices in the U.S. and Israeli war against Iran have?fed rumors that a new round could be of consolidation within the U.S. airline industry. Duffy said that any deal would require the approval of Donald Trump, USDOT, and the Justice Department. "Who will match up ?...? Does the aviation industry have room for mergers? Duffy acknowledged that "there has been a lot said" about possible deals. Since the 1970s, antitrust regulators have approved a series mergers which has resulted in four U.S. airlines controlling about 80% of domestic passenger traffic. American Airlines, Delta Air Lines United Airlines and Southwest Airlines. JetBlue canceled its $3.8 billion merger with Spirit Airlines in 2024 after an American judge blocked the deal over anti-competition concerns. JetBlue announced last year a partnership that allows travelers to earn and use frequent flyer points on both carriers websites. Former President Joe Biden’s Departments of Justice and Transportation launched a public inquiry in 2024 into the competition?in air travel. Biden's administration has taken a strong stance against consolidation in the airline industry. (Reporting and editing by Chris Reese, David Gregorio).
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DHS: US airports could no longer process international travelers in certain'sanctuary' cities
Homeland Security Secretary Markwayne Mullin stated on Tuesday that Customs officials may stop 'processing international travellers at major U.S. Airports in "sanctuary Cities" that have refused to cooperate with a hardline immigration crackdown by the Trump administration. This could seriously impact U.S. tourism and trade. This move could halt air travel, commerce and tourism at major airports located in Democratic states. It will also have a major impact on the FIFA World Cup which is scheduled to begin in early June. Last year, more than 50?million foreign travelers landed at three major New York Airports. In October 2025, the U.S.?Department of Justice released a list of sanctuary cities and state that included many major international airports in cities such as Denver. Philadelphia, Chicago. Los Angeles, New York City. Newark. Seattle. and?San Francisco. Since?mid February, the U.S. immigration enforcement and airports have been at a center of a partisan funding battle. Democrats refused to fund additional money to President Donald Trump's immigration clampdown without reforms that would scale back aggressive tactics. Mullin cited Democrats' refusal to agree to a funding deal for the Department of Homeland Security including Customs and Border Protection and said he was looking forward to speaking with?Trump on the idea of pulling the customs offices. Mullin said to reporters in North Carolina that it was an option, but no decision had yet been made. "If cities are going to say they won't enforce immigration policies and sit there, then I will repeat that it makes no sense for us process international travelers in that city." Mullin said that pulling customs officers from the DHS was just one option being considered as Congress is still deadlocked on funding. "We are going to have those conversations. This is something that I am merely?thinking about, as?I stated. He said, "This isn't necessarily something I'm going to do." Mullin argued state and local policies and laws that limit immigration enforcement are illegal, because they contradict federal immigration laws.
IATA chief: It could take several months for jet fuel supplies to recover following the reopening of Hormuz
Even if Iran were to reopen the Strait of Hormuz, it would still take months before jet fuel supplies could'recover' due to disruptions in Middle East refining capacities.
Oil dropped below $100 per barrel after U.S. president Donald Trump announced he had agreed on a ceasefire for two weeks with Iran, subject to an immediate and safe opening of the Strait of Hormuz. The Strait of Hormuz normally transports about a fifth of world oil trade.
Willie Walsh (director general of IATA, the International Air Transport Association) told reporters in Singapore, that although he expects crude oil prices will fall, jet fuel costs are likely to remain slightly higher due to the impact refineries have on the cost.
Walsh stated that even if the refinery were to reopen, it would still take months for the supply to reach the level it needs to be, given the disruption in the Middle East's refining capacity, which is an important?part of global supply, not only of jet fuel but also of other refined products.
As the Middle East conflict has squeezed jet fuel supplies, airlines across Asia are cutting flights, bringing extra fuel to their home airports, and adding fuelling stops. This is adding pressure to an industry that was already hit by a doubled price of jet fuel.
After?China, Thailand, and South Korea stopped jet fuel exports, the pain was felt most in low-income markets that depend on imports, such as Vietnam and Myanmar, and Pakistan.
Walsh said that if crude oil started flowing again, "I'd like to believe" that China and South Korea would resume their exports of refined products.
Walsh stated that "there is (refining capacity) available once we get crude oil flowing. But it will take some time. And with the crack spread being 'elevated,' I think this provides an incentive for refineries to increase production of jet fuel."
The crack spread is a measure of refinery margins. Reporting by Lee YiChin in Singapore, and Julie Zhu from Hong Kong. Editing by Anne Marie Roantree Christian Schmollinger Jamie Freed
(source: Reuters)