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Australia relaxes fuel standards to boost supply
Chris Bowen, Australia's Energy Minister, said that the country would ease up on its standards for fuel quality until September. This is because of a deterioration in fuel supplies due to the war with Iran. Bowen made a televised statement: "I have decided to extend the period for higher sulphur in petrol in Australia." The relaxation announced in March increases the amount of allowed sulphur in fuel from the usual 10 parts to 50 parts. As the war, now in its eighth week, disrupted supply chain, Australia has seen localised shortages. Bowen?said that the production of diesel, jet-fuel and petrol at a Viva Energy oil refinery (VEA.AX), owned by Viva Energy in Victoria, Australia’s second most populous state, remained the same as Friday. He said that the Geelong refinery was still operating at 60% for petrol and 60% for diesel. Anthony Albanese, Australian Prime Minister, said that the fire would not trigger fuel restrictions. Albanese also secured a deal this week with Malaysian energy?firm Petronas for the supply of?excess fuel in?Australia following trips to Singapore, Brunei and other countries aimed at boosting energy supplies. (Reporting from Sam McKeith, Sydney; Editing done by William Mallard).
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World Bank launches new small state strategy to tackle challenges
The World Bank announced a new strategy on Friday that focuses on jobs to help small island states, and other small countries address challenges like remoteness, shock exposure and a limited economic base. World Bank President Ajay Banga spoke about the initiative in a closed door meeting of 50 ministers and governors of central banks from small countries, held during the spring meetings for the International Monetary Fund (IMF) and World Bank. He explained that the idea was to use different tools to help smaller states attract more investment, implement policy and regulatory changes to make it easier to run and grow businesses, and create more jobs. The Bank will focus on areas like health, affordable energy and resilient infrastructure, as well as micro-and small businesses. These are the areas where officials believe there are the best opportunities to boost growth, strengthen businesses and create better jobs. Last year, the World Bank Group approved new commitments and guarantee of $3.3 billion for "small states" who face unique economic challenges, and are disproportionately impacted by shocks as was seen during the Middle East war. In a blog that was released with the new strategy, the bank stated: "For small business, a hurricane, an unexpected?surge? in fuel prices or a decline in tourism could wipe out months of income and investment in just a few days." Banga said that the Bank would take a differentiated strategy to develop regional projects in these countries. Partnerships will be an important component. "This isn't a one size fits all approach." Banga said to the finance officials that small states are diverse and our support would reflect this. "We know that the economics of small states are different," Banga told the finance officials. He said that the cost of working in smaller states can be up to four-times higher than in bigger countries. The Bank therefore planned to streamline its delivery, use more flexible funding and scale solutions in order to maximize each dollar. Several projects have already begun. The bank, in Tonga for instance, will co-finance a urban resilience project with the Asian Development Bank, under a framework agreement of mutual reliance, a first between multilateral development banks. Banga stated that he was planning to sign more agreements, including with the Inter-American Development Bank in order to extend the approach to the Caribbean. He said that the World Bank is also increasing the tools available for countries. The bank also said that better diagnostics was important. The bank said that it was preparing more detailed reports on the challenges faced by private sector hiring in Barbados, Guinea Bissau, Lesotho Mauritius Samoa and Seychelles. The blog also noted that the World Bank could leverage its power to drive investments. The 'International Finance Corp', the bank’s investment arm, for example, helped to 'fund the development of Botswana’s first utility-scale Solar Project', while the World Bank worked on a project on battery storage in parallel, enabling the integration of solar into the grid. The bank stated in its blog that the result was not just a solar power plant but also a model of how private financing can be used to open up markets and create employment. (Reporting and editing by Andrea Shalal)
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Moody's lowers Iraq's credit outlook to "negative" on Middle East conflict risks
Moody's, a credit rating agency, re-evaluated Iraq's outlook on Friday from "stable" to "negative", citing the risks to the country's "credit profile" due to 'the ongoing Middle East conflict' impacting security and energy flow. Moody's stated that "Iraq's heavy dependence on the oil industry implies that disruptions to exports through Strait of Hormuz, which account for around 90% of Iraq's oil exports, will materially reduce dollar inflows as well as fiscal revenues." Iraqi energy officials stated last month that the main southern oilfields of the OPEC'members have seen their output fall by 80% as a result of the U.S. - Iran?war, and the closing down the strait. This has pushed storage levels to a 'high and critical level. Abbas Araqchi, Iranian Foreign Minister, said that the Strait of Hormuz was now open after a ceasefire agreement in Lebanon. Donald Trump, U.S. president said he believes a deal will be reached to end the Iran War "soon", but the timing is still unclear. Four energy sources reported that Iraq resumed its southern oil exports last Friday after a hiatus of over a month. Moody's said in its report that "even if the ceasefire is maintained, it may take some time before flows in 'the Strait' return to normal." The agency kept the country's rating at "Caa1". (Reporting and editing by Unnamalai L, Bengaluru)
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US loans 26.03 millions barrels of SPR Oil in third batch after Iran war
The U.S. The?U.S. Department of Energy announced on Friday that it had lent 26.03 million barrels of oil from the Strategic Petroleum Reserve (SPR) to nine oil firms. This is the third allocation under?the Trump Administration's efforts to curb fuel costs, which?have risen since the U.S. and Israeli war on Iran. In March, the 'Trump Administration' agreed to release 172 millions barrels of crude oil from the Strategic Petroleum Reserve in coordination with the International Energy Agency to draw down 400,000,000 barrels to try to control fuel costs that spiked because of the war. Energy companies are required to pay interest on the extra barrels they receive from the SPR. The U.S. offered 126,000,000 barrels of crude oil in three batches. Energy companies have agreed to take on loans of nearly 80 million barrels - or more than 63% - from the SPR. The DOE announced that BP Products North America, ExxonMobil?Corp, and Marathon Petroleum were among the companies awarded SPR loans. Reporting by Timothy Gardner, Ismail Shakil and Doina Chiacu; Editing done by Edward Tobin and Doina Tobin
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Georgieva: Venezuela is likely to receive IMF support for loan after the necessary groundwork.
Kristalina?Georgieva, IMF's Managing Director, said that the IMF will provide Venezuela with financial support as part of its re-engagement program with South American oil exporter. Georgieva said at a Washington press conference that the IMF was ready to put together a team of staff to work with Venezuelan officials, but that the country faces "a very difficult road" in order to restore financial and macroeconomic stability. The IMF announced on Thursday that it was re-engaging with Venezuela after not having had any dealings since March 2019, and no economic assessments since 2004. Georgieva stated that "after a seven-year pause, our commitment is to engage with Venezuela and do our part to help achieve macroeconomic stability. We want to help Venezuelans see better days." The IMF has already reached out to Venezuela's central bank, finance ministry and statistical agency. Georgieva stated that Caracas "data adequacy is very low and you cannot make good decisions if you do not have good data." She added that the IMF is also working on strengthening Venezuela's institutions and that authorities are "engaging constructively" and showing "good faith". Georgieva said that the IMF was 'working closely' with the World Bank and Inter-American Development Bank in order to coordinate support for Venezuela, which would increase its impact. The news?of IMF's engagement with Venezuela following the ousting of the former president of the country, Nicolas Maduro by the U.S., in January, pushed up the prices of Venezuelan sovereign?bonds as well as those of the?state-owned?oil company on Friday. Venezuela's 2023 note rose by 4.1 cents, to 51.25 cents per dollar. This is the highest since 2017. PDVSA's 2020 note increased by 2.9 cents, to 47 cents. (Reporting and editing by Paul Simao; David Lawder)
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Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and revise financial forecasts. In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for up to 25% of its operating costs. Here is an alphabetical list of the ways that?airlines have responded: AEGEAN AIRLINES The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs, will have "a significant impact" on their first-quarter earnings. AIRASIA X Malaysian Airlines executives announced that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%. AIR CANADA The Canadian largest airline plans to reduce four of its daily flights to New York to 38 due to rising fuel prices. From June 1, 2026, the four flights to JFK International Airport are being cut. AIR FRANCE-KLM The airline group said that it would increase the price of long-haul tickets to offset rising fuel costs. Cabin fares will rise by 58 euros (50 euros) per round-trip. KLM, the Dutch subsidiary of the group, announced on April 16 that it would cancel 160 flights across Europe in a month due to rising fuel costs. AIR INDIA The Indian airline said that it will change its fuel surcharge system from a flat surcharge for domestic flights to one based on distance. The Indian carrier said that surcharges for international routes do not compensate the steep rise in fuel costs. AIRLINE OPERATORS IN NIGERIA In a letter to the Nigerian fuel industry association, it was claimed that they were artificially increasing prices. AIR NEW ZEALAND On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the earliest to announce a large increase in ticket prices after the conflict erupted. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets. AKASA AIR Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights. ALASKA AIR The U.S. carrier said that it would raise fees by $5 for the first bag and $10 for the second for flights in North America, as well for Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars. AMERICAN AIRLINES The U.S. carrier announced that it would increase the fees for checked baggage by $10 for each of the first two bags, and $150 for the third bag, on both domestic and short-haul flights. The airline also reduced certain benefits for passengers in economy class. The company had previously said that it anticipated a $400-million increase in expenses for the first quarter due to rising fuel prices. ASIANA AIRLINES Newsis reported that the South Korean airline would cut 22 flights from April to July because of fuel price increases. CATHAY PACIFIC Hong Kong Airlines announced that it would cancel about 2% scheduled passenger flights between mid-May and the end of June. Meanwhile, HK Express, its budget airline, was cutting approximately 6% flights. The carrier had previously stated that it would increase its fuel surcharge across all routes by 34% from April 1, and will review the charges every two weeks. CEBU AIR The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review pricing and network strategies and try to minimize the impact. CHINA EASTERN EXPRESS AIRLINES Air China said that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800km will be charged a surcharge of 60 yuan, and flights above 800km will be charged a surcharge 120 yuan. DELTA AIR LINES Delta announced that it would reduce capacity by approximately 3.5 percentage points compared to its original plan, and increase fees for checked baggage in order to offset the rising costs of jet fuel. The increase will be $10 for first and second bags, and $50 on third bags. The U.S. carrier pulled all planned growth in capacity for the current quarter, and predicted profit that was below Wall Street expectations. Delta's CEO said that the company would not update its full-year forecast due to the uncertainty surrounding the fuel price hike. EASYJET EasyJet has warned that it will suffer a larger half-year loss before tax of between 540 and 560 millions pounds ($731 and $758) in March, including an extra 25 million pounds of fuel costs. Kenton Jarvis, CEO of British Airways, said that European consumers can expect to pay higher prices at the end summer when fuel hedges expire. FRONTIER AÉRIENS Fuel prices have risen'significantly' since the airline issued its outlook. GREATER BAY Airlines The Hong Kong-based firm said that it will increase fuel surcharges for most routes on April 1, but keep them the same on routes to mainland China and Japan. The carrier has announced that the surcharge on flights between Hong Kong, Philippines and other destinations will be more than doubled. HONG KONG Airlines The airline announced that it would increase fuel surcharges up to 35% starting March 12. The biggest increases would be on flights between Hong Kong, Bangladesh, and Nepal where the charges would go from HK$284 to HK$384 (US$49). British Airways' owner IAG stated in March that it does not intend to increase ticket price immediately as it has hedged a large amount of fuel for the short to medium term. INDIGO India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for a reduction in fuel taxes by the Indian government. JETBLUE AERWAYS Low-cost airline based in the United States has announced that it will increase fees for optional services, such as checked luggage, due to "rising operating expenses". The airline said that baggage prices would rise either by $4 or $9. Sources with knowledge on the subject have confirmed that KOREAN will be in emergency mode as of April due to rising oil costs. The airline will implement phased responses based on the oil price levels and increase company-wide efficiency to offset surging fuel prices. LUFTHANSA The group announced that it would ground 27 aircraft servicing its CityLine short-haul subsidiary earlier than expected, citing the high cost of jet fuel and industrial action. Lufthansa also plans to withdraw four Airbus A340 600 long-haul planes at the end the summer, and will reduce its short- and medium-haul fleet by five aircraft during winter 2026/2027. PAKISTAN INTERNATIONAL FLIGHTS Fuel surcharges are cited as the reason for raising domestic flight prices by $20, and international fares up to $100. QANTAS AIRWAYS Qantas, Australia's largest airline, said that it has delayed a planned A$150m ($106m) buyback. It also increased its projected fuel bill in the second half 2026 from A$2.5bn to A$3.1bn-A$3.3bn. Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "couple hundred" of flights. SAS, which has already raised flight prices, stated that the surge in fuel costs would be a major blow to the aviation industry, even if they tried to absorb them. SPRING AIRLINES Budget Chinese airline announced that it will increase fuel surcharges for domestic flights from April 5. Details to be announced later. SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES The American carrier announced that it would increase the fees for checked bags by $10 each for the first two bags. This will bring the cost to $45 and $55 respectively for the first bag. The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues. THAI AIRWAYS The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices. TURKISH AIRLINES LUFTHANSA SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would be imposing a temporary fuel surcharge between Turkey and Europe of 10 euros for each passenger starting May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1. Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead choosing to keep the earnings and preserve cash. T'WAY AIR As part of measures taken to combat the effects of war, the South Korean low-cost airline said that it would furlough cabin crew in May and/or June without pay. UNITED AIRLINES Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027. Andrew Nocella, United's Chief Commercial Officer, said that the company was able to increase fares in response to a rapid rise in oil and jet fuel costs. In an email to customers, the airline announced that it would also be increasing first and second checked baggage fees by $10. This applies to all travelers in North America, Mexico, Canada, and Latin America. VIETJET Due to possible fuel shortages, the Vietnamese budget airline has 'adjusted' flight frequencies on certain routes. VIETNAM Airline Vietnam's Aviation Authority announced that the carrier will cancel 23 flights a week on domestic routes starting in April after it requested assistance from the government to remove an environment tax on jet fuel. VIRGIN ATLANTIC Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability. VIRGIN AUSTRALIA Virgin Australia has said that it expects an increase of jet fuel costs of between A$30 and A$40 million in the second half of the fiscal year. It also anticipates a 1% decrease in capacity for the fourth quarter. The airline had previously stated that it would adjust fares in order to reflect the rising costs. WESTJET Canadian Press reported that the airline would add a C$60 fuel surcharge ($43) to certain bookings, and also combine flights due to rising costs.
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Aluminium prices fall after Iran declares Strait of Hormuz Open
Aluminum prices dropped on Friday, after Iran's foreign minister announced that all commercial vessels could pass through the Strait of Hormuz for a period of time remaining in the ceasefire. Benchmark 'three-month' aluminium at the?London Metal Exchange was down by 2.6% to $3,549 per metric ton as of 1601 GMT. The reopening of Strait of Hormuz where navigation was largely suspended after U.S. and Israeli attacks against Iran began on 28 February improves prospects for exports of aluminium from the Gulf -region which account for approximately 9% of the global supply. The Strait is used by producers in the area to export the majority of their metals to the world market and to import alumina as a raw material. The Norwegian Shipowners' Association said that there was still caution. They stated that the presence of sea mines and Iranian conditions must be assessed prior to any transit. Ole Hansen is the head of commodity strategy for Saxo Bank. The price of aluminium has risen 18% this year. It had hit a four-year high in the previous session, which was $3,672. This is due to a global supply shortage. In April, a Gulf producer stated that it could take a full year to fully restore production at UAE smelters damaged by an Iranian attack in late March. LME copper increased 0.7% to $13,361.50 per ton, as the dollar fell. This made dollar-priced materials more attractive to buyers who use other currencies. Stocks in the United States and around the world, already trading at record highs, rose even more after Iran's announcement. Other LME metals such as zinc gained?0.2%, reaching $3,429.50 per ton, after having reached $3,482 at its highest level since January 29. Lead rose 0.6% to $2,963, while tin rose by 0.7% to $53,355, and nickel dropped 0.9% to $8,060. (Reporting and editing by David Goodman Elaine Hardcastle, Nick Zieminski, and Polina Devitt)
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Wall Street indexes rise after Iran declares Strait of Hormuz "completely open"
Investors hailed Iran's decision on opening the Strait of?Hormuz, which boosted the S&P?500, the Nasdaq, and the Dow. Abbas Araqchi, Iran's Foreign Minister, said in a posting on X that the Strait of Hormuz would be "completely opened" to all commercial vessels for the remaining 10 days of the truce agreed in Lebanon between Israel and Iran-backed Hezbollah. The U.S. president Donald Trump had said that Washington would soon be able to secure a peace deal with Iran. Oil prices fell over 11% as markets became more confident that the end of the "war" was near. This eased inflation fears. The Strait of Hormuz plays a crucial role in global oil flow. The opening of the Strait of Hormuz was a crucial step in normalizing the transit of the waterway. The reopening has a limited scope, said James Reilly - senior markets economist at Capital Economics. "That being said, it is an important and necessary step to potentially ending the conflict." Exxon Mobil and Chevron both fell by 5.7% and 4.5% respectively. American Airlines and United Airlines both saw their stocks rise by more than 7%. Cruise operators Cruise and Norwegian Cruise Line rose by 8.7% and 7.5% respectively. The CBOE Volatility Index hit a new low of two months and last fell 0.97 points to 16.97. At 11:31 am. The Dow Jones Industrial Average gained 958.20, or 1.99%, to 49.537.12, while the S&P 500 rose 90.30, or 1.12%, to 7,131.58, and the Nasdaq Composite added 391.43 or 1.52% to 24,494.14. All three indexes are on track to have their third week of gains. The Nasdaq Composite is on track to extend its winning streak to 13 days, the longest since January 1992. Russell 2000 small-caps hit their first intraday high since the U.S. - Iran conflict erupted. Some analysts warned that there are still logistical issues for ships trying to cross the Strait of Hormuz. Erik Bethel is the general partner at the maritime investment firm Mare Liberum. Netflix fell 9.6% when it announced earnings for the current quarter that were below expectations. Reed Hastings, co-founder of Netflix and its longtime chairman, resigned after 29 years. Alcoa's stock fell 7.9% following a report that the aluminum producer had reported a first-quarter revenue and profit below analyst estimates. The company cited high costs and a softening of demand. After reporting earnings for the first quarter, Fifth?Third Bancorp's shares rose by 1.2%. Based on the Fed-funds futures prices, markets are pricing in a 50% probability that interest rates will be cut by the central bank in December. According to LSEG compiled?data, this is a dramatic change from a?20% chance earlier in the day. On the NYSE, advancing issues outnumbered declining ones by a ratio of 4.38 to 1 and by a ratio of 3.62 to 1 on the Nasdaq. The S&P 500 recorded 38 new 52-week lows but no new highs. Meanwhile, the Nasdaq Composite registered 188 new highs while 22 new lows. (Reporting and editing by Tasim Zaid in Bengaluru, Avinash P from Bengaluru)
President of Lebanon says that ceasefire agreements should be permanent
Lebanese president Joseph Aoun stated?on? Friday that the ceasefire agreement reached by his country would be "transformed" into "permanent agreements." He did not specify whether he meant a potential peace deal with Israel. His televised speech was his first since the U.S. brokered on Thursday a ceasefire that ended six weeks of fighting in Israel between Iran-backed Hezbollah and Israel. In the text of this deal, Israel and Lebanon will hold direct talks in order to achieve "peace between?the two countries."
Aoun expressed gratitude to President Donald Trump of the United States and other regional countries who helped secure the ceasefire.
'A NEW PHASE'
He said: "Now we are all in a new phase. We have to transition from working toward a ceasefire, to working on permanent agreements that protect the rights of our people, our unity, and our sovereignty."
Hezbollah said that it does not support direct talks with Israel, and on Friday its legislators criticized the government for agreeing to such negotiations.
Aoun, without mentioning Israel, said: "These negotiations are neither a sign of weakness nor a retreat nor a concession."
He did not mention Israel when he said his goal was to stop Israeli attack on Lebanon and ensure the withdrawal of Israeli soldiers from Lebanese territories. Israel's Defence Minister said that Israeli troops will continue to destroy homes in southern Lebanon, which he claimed were used by Hezbollah.
Aoun stated that he is prepared to "bear all responsibility for these decisions, and I am willing to go wherever it takes to liberate my country, protect my people and save my nation."
Trump said on Thursday that he would invite Aoun, and Israeli Prime Minister Benjamin Netanyahu, to the White House for "talks" between the two nations. It was not immediately known if the date for these talks had been set. This would be an important milestone for Israel and Lebanon.
Aoun made "several obvious references" to Iran and Hezbollah without directly mentioning them in his speech. Hezbollah drew Lebanon into the war in the region by shooting at Israel on 2 March to support Tehran.
"Today we decide and negotiate for ourselves. "We are no longer a card to be played by anyone, nor an arena for wars," he said.
"I say enough to those who play with the fate of Lebanon, and the lives of Lebanese!" Reporting by Enas Alashray, Laila Basam and Maya Gebeily. Editing by Alison Williams & Rod Nickel
(source: Reuters)