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June 16, 2025

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Worries over potential disruptions stemming from the Israel-Iran conflict are impacting the oil shipping industry. 

The costs associated with chartering tankers to transport oil from the Middle East to Asia have risen, leading to a slowdown in ship bookings, according to a Reuters report.

Tensions in the Middle East escalated last week after Israel carried out strikes in Iran. Tehran reportedly retaliated with strikes of its own. 

The TD3 benchmark rate, which governs the cost of chartering a Very Large Crude Carrier (VLCC) for crude oil shipments from the Middle East Gulf (MEG) to Japan, experienced a dramatic surge on Friday. 

Data from LSEG indicates that this global benchmark rate escalated by more than 20% following the emergence of heightened regional tensions. 

The significant increase underscores the immediate and substantial impact geopolitical instability can have on global shipping costs, particularly for critical commodities like oil. 

The rise in TD3 rates suggests that shipowners are factoring in increased risk premiums due to the current climate, potentially leading to higher freight costs for oil importers in key Asian markets such as Japan. 

According to a shipbroker, the MEG-Japan rate for crude remained stable at approximately W55 on the Worldscale industry measure on Monday.

Cautious approach

Traders, shipbrokers, and charterers adopted a wait-and-watch approach, limiting further increases in freight rates. 

The shipping industry’s cautious stance prevailed even though market participants did not anticipate the closure of the Strait of Hormuz, a crucial trade route.

“Fixing on Friday from the region all but came to a standstill. Physical marks may therefore not be indicative. Ships inside the gulf are still looking for outbound charters,” Anoop Singh, global head of shipping research at Oil Brokerage, was quoted as saying in the report.

But the situation remains dynamic, and we expect to hear more on market open today,

Freight rates are subject to escalation and potential Iranian action concerning the Strait of Hormuz, according to Emril Jamil, senior analyst for crude and fuel oil at LSEG Oil Research. 

Approximately 18 million to 19 million barrels of oil and oil products traverse the Strait of Hormuz waterway daily, connecting the Gulf to the Gulf of Oman.

“We have noted a minor increase in freight rates so far, but expect them to rise further as the week progresses,” according to Sentosa Shipbrokers.

War risk premium

Emril Jamil of LSEG added:

The war risk premium is expected to remain high in the near-term given the continued exchange of tensions between the two countries.

This will exponentially rise if other Middle East oil and gas infrastructure are attacked.

Additional attacks could drive cargo insurance premiums up by $3 to $8 per barrel.

Before the conflict, freight rates for shipping approximately 90,000 tons of clean products (gasoline, diesel, or jet fuel) from the Middle East to markets west of the Suez Canal were estimated at $3.3 million to $3.5 million, according to the Reuters report. 

New offer levels are currently unavailable.

According to the report, some brokers are already indicating market levels of $4.5 million. 

Sentosa shipbrokers noted that several shipowners are withholding vessels for Gulf routes pending clarity on the situation.

This could lead to increased opportunities for voyages from the Far East to west of Suez and from northwest India.

The post Israel-Iran conflict sends Middle East oil shipping costs higher appeared first on Invezz

LAS VEGAS. — Former Starbucks CEO Howard Schultz said Wednesday that he “did a cartwheel” in his living room when current chief executive Brian Niccol first coined his “back to Starbucks” strategy.

The enthusiasm from the 71-year-old Starbucks chairman emeritus is a key stamp of approval for Niccol as he tries to lift the company’s slumping sales and restore the chain’s culture.

Schultz, who grew Starbucks from a small chain into a global coffee giant, made a surprise appearance at the company’s Leadership Experience in Las Vegas and cosigned Niccol’s plans. The three-day event has gathered more than 14,000 North American store leaders to hear from Starbucks management as the company embarks on a turnaround.

Niccol took the reins in September, joining the company after the board ousted Laxman Narasimhan, Schultz’s handpicked successor.

Schultz had returned in 2022 for his third stint as chief executive, but it was only an interim role. He previously told CNBC that he has no plans to come back again. Schultz no longer holds a formal role within the company, although CNBC has previously reported that he’s forever entitled to attend board meetings unless barred by the company’s directors.

During Niccol’s first week on the job, he outlined plans for the comeback in an open letter, making the commitment to get “back to Starbucks.” More details on how the chain planned to return to its roots followed in the ensuing months, from bringing back seating inside cafes to writing personalized messages on cups. Under Niccol’s leadership, the company’s marketing has shifted to focus on its coffee, rather than discounts and promotions.

When Starbucks announced Narasimhan’s firing and Niccol’s hiring, Schultz issued a statement of support, saying that the then-Chipotle CEO was the leader that the company needs. However, the Leadership Experience marks the first time that Niccol and Schultz have appeared publicly together.

During Narasimhan’s short tenure as CEO, Schultz did not mince words when the company’s performance fell short of his expectations. After a dismal quarterly earnings report, he weighed in publicly on LinkedIn, saying the company needs to improve its mobile order and pay experience and overhaul how it creates new drinks to focus on premium items that set it apart.

But Schultz said Starbucks’ problems went further than just operational issues and lackluster beverages and food.

“The culture was not understood. The culture wasn’t valued. The culture wasn’t being upheld,” he said on Wednesday.

This post appeared first on NBC NEWS

Israeli parliament member Ohad Tal told Fox News Digital that striking a deal with Iran should not be the goal without first toppling its ‘evil, jihadist regime,’ as President Donald Trump on Sunday called on both sides to come to the negotiating table. 

Tal, who sits on the Knesset foreign affairs and defense committees, spoke to Fox News Digital from outside of Jerusalem on Sunday as Israel and Iran traded strikes for a third day.  

‘We are now engaging in a war with Iran, a war which I believe is historic, because we are now, finally, hopefully, we will liberate, not just ourselves, not just the Iranian people, but the entire world from the threat of the evil Iranian regime,’ he said. 

Earlier Sunday, Trump said on TRUTH Social that ‘Iran and Israel should make a deal, and will make a deal,’ noting how his administration has successfully negotiated other conflict resolutions, including between India and Pakistan, ‘by using TRADE with the United States to bring reason, cohesion, and sanity into the talks with two excellent leaders who were able to quickly make a decision and STOP!’ 

Tal, however, made the distinction that the goal of the Ayatollah and the Muslim Brotherhood is the ‘destruction of Israel’ and the ‘destruction of America.’   

‘I think that our goal should be taking down the Iranian regime, because if you really want to put an end to the ambitions of Iran to acquire a nuclear weapon, the only way to do that is by taking down this regime,’ Tal said. ‘This regime has only one purpose, not to destroy Israel … they want to take down America.’ 

He said more deals would only allow Iran to re-arm and re-develop their nuclear program. 

‘I think just the idea of negotiating deals with a jihadist terror supporter regime is outrageous,’ he continued. ‘I mean, the only goal we should have, we should all have, is taking down this evil regime. Again, if we really want to build a better future of stability and prosperity for everybody in the region, in the world, that should be the goal.’ 

Trump has vetoed a plan floated by Israel to the U.S. to kill Iran’s Supreme Leader Ayatollah Ali Khamenei, a U.S. official told Fox News, amid concerns doing so would further destabilize the region. 

Tal told Fox News Digital that the West must face the reality that ‘we must take down this evil, jihadistic regime’ not just to save the region, but the ‘entire world from this threat.’ 

Since last Thursday, when the Israel Defense Forces launched a large-scale preemptive strike against Iran, targeting nuclear facilities, key infrastructure and leadership, Tal said he’s received calls from Muslim and Arab leaders across the Middle East who told him, ‘You’re not just saving yourself, you’re saving us as well.’ 

‘That is the reality. Iran and the Ayatollahs are not just a threat to Israel, they are a threat to the entire world, and therefore I believe that by the fact that Israel is not looking the other way,’ Tal said. ‘We’re not burying our head in the sand. We are standing in front of this threat, and we are fighting back. I think we are doing a big favor to the world.’ 

Tal said Iran has suffered ‘an unbelievable amount of damage’ and the IDF ‘basically has total control over the Iranian airspace.’ Israeli forces, he argued, are targeting military bases, nuclear facilities and officials, while Iran is targeting civilian populations. Some Iranian missiles have made it past Israel’s aerial defense systems. 

‘That’s a culture that glorifies death, doesn’t care about civilian casualties, and we’re a culture that sanctifies life,’ he said. 

Tal said he has received support from U.S. officials, including members of Congress. 

He believes that Israel’s actions are in line with Trump’s ‘America First’ policy, in that the ongoing operation will prevent the United States from being pulled into a broader conflict. 

‘We’re getting the support from the Trump administration 100 percent,’ Tal said. ‘Trump is supporting America First Policy. We are also supporting America First Policy because fighting this evil regime will help to prevent much, much bigger war.’

‘If the Iranians would have managed to get their desire and acquire a weapon, that would not have just been a threat to America,’ he continued. ‘We’re not asking [for] American boots on the ground, we’re not asking America to fight for us. We’re just asking them to support us in taking away the threat coming from Iran.’ 

Fox News’ Peter Doocy contributed to this report.

This post appeared first on FOX NEWS