Regional
Shippers mask positions, weigh options amid Red Sea attacks
A number of container ships are anchored in the Red Sea and others have turned off tracking systems as traders adjust routes and prices in response to maritime attacks by Yemen’s Iran-aligned Houthis on the world’s main East-West trade route.
Attacks in recent days on ships in the major Red Sea shipping route have raised the specter of another bout of disruption to international commerce following the upheaval of the COVID pandemic, and prompted a U.S.-led international force to patrol waters near Yemen, Reuters reported.
The Red Sea is linked to the Mediterranean by the Suez Canal, which creates the shortest shipping route between Europe and Asia. About 12% of world shipping traffic transits the canal.
Major shippers including Hapag Lloyd (HLAG.DE), MSC and Maersk (MAERSKb.CO), oil major BP (BP.L) and oil tanker group Frontline (FRO.OL) have said they will be avoiding the Red Sea route and re-routing via southern Africa’s Cape of Good Hope.
But many ships are still plying the waterway. Several ships underway have armed guards on board, LSEG data showed.
At least 11 container ships which had passed through Suez and were approaching Yemen carrying consumer goods and grains bound for countries including Singapore, Malaysia and the United Arab Emirates, are now anchored in the Red Sea between Sudan and Saudi Arabia, LSEG shiptracking data showed.
Four MSC container ships in the Red Sea have had their transponders turned off since Dec. 17, the data showed, likely to avoid detection.
Some vessels are attempting to mask their positions by pinging on other locations, as a safety precaution when entering the Yemen coastline, said Ioannis Papadimitriou, senior freight analyst at Vortexa.
Denmark’s Maersk on Friday paused all container shipments through the Red Sea following a “near-miss incident” involving its vessel Maersk Gibraltar a day earlier. A number of the ships at anchor in the Red Sea are Maersk vessels, LSEG data showed.
On Tuesday it said vessels previously paused and due to sail through the southern Red Sea and the Gulf of Aden would be rerouted around Africa.
The Iran-backed Houthis, who say they are supporting Palestinians under siege by Israel in the Gaza Strip, have waded into the Israel-Hamas conflict by attacking vessels in vital shipping lanes and even firing drones and missiles at Israel, more than 1,000 miles from the Yemeni capital Sanaa.
Houthis attacked two commercial shipping vessels in the southern Red Sea on Monday.
Industry sources say the impact on global trade will depend on how long the crisis persists, but insurance premiums and longer routes would be immediate burdens.
Vortexa’s Papadimitriou on Tuesday said the price of a Suezmax to carry crude from the Middle East to Europe has risen 25% in a week.
The disruption to energy flows in the Red Sea is unlikely to have large effects on crude and liquefied natural gas (LNG) prices, Goldman Sachs said on Monday, as vessels can be redirected.
“We do estimate that a hypothetical prolonged redirection of all 7 million barrels per day of gross (Northbound and Southbound) oil flows would raise spot crude prices relative to long-dated prices by $3-4/per barrel
Regional
US and Iran hold first talks since June after Trump’s ‘annihilation’ threat
WATCH Donald Trump’s speech to UNGA on Iran, including his ‘annihilation’ threat
The United States and Iran have held their first high-level talks since June, with discussions taking place on the sidelines of the United Nations General Assembly in New York amid continued fighting and growing international pressure to end the conflict.
Iranian Foreign Minister Abbas Araghchi and US special envoy Steve Witkoff took part in the talks, which were mediated by Qatar. US envoy Jared Kushner also participated on the American side, according to reports.
No breakthrough was immediately reported. Witkoff said the two sides had completed a round of discussions that he hoped would prove “constructive and promising”, adding that mediators would continue their efforts.
Iranian officials said Araghchi conveyed Tehran’s conditions, including an end to what Iran describes as US acts of aggression and the lifting of measures affecting Iranian shipping and assets.
The talks came just hours after US President Donald Trump warned in his address to the UN General Assembly that he could “annihilate” Iran if no agreement was reached.
Trump said Iran faced a choice between reaching a deal and what he described as destruction, while also saying he believed an agreement could be reached after the US midterm elections in November.
Trump later described the three-hour discussions as very productive. Witkoff, however, clarified that the two sides communicated through mediators who shuttled between the delegations rather than holding direct face-to-face negotiations.
The latest contact follows months of conflict between Iran, Israel and the United States. The fighting has also disrupted shipping through the Strait of Hormuz, one of the world’s most important energy routes.
Iran has indicated that it could reopen the strategic waterway if Washington takes steps to ease military and economic pressure on Tehran. Iranian officials have linked the issue to demands including the lifting of the US naval blockade and the release of frozen Iranian assets.
The Strait of Hormuz is a key route for global energy supplies, and its closure has contributed to volatility in international oil markets.
Despite the renewed diplomatic contact, significant differences remain between Washington and Tehran over the war, Iran’s nuclear programme, sanctions, shipping through the Strait of Hormuz and US military operations in the region.
Iranian President Masoud Pezeshkian is due to address the UN General Assembly on Wednesday, with further diplomatic efforts expected to continue in New York.
Regional
Pezeshkian heads to UN as Iran vows to defend its position
Iranian President Masoud Pezeshkian left Tehran for New York on Tuesday to attend the 81st United Nations General Assembly, where he says he will defend Iran’s positions and highlight what Tehran describes as the hardships facing its people and the wider region.
Speaking at a press conference before his departure on Tuesday, Pezeshkian said the UN gathering provides Iran with an opportunity to present its views to the international community.
“We will defend our positions with strength at international forums,” he said.
Pezeshkian said he would meet politicians, cultural figures and media representatives during his visit and discuss issues including regional conflicts, international law and what he described as violations of commitments made to Iran during previous negotiations.
Iranian Foreign Minister Abbas Araghchi is already in New York. He arrived on Monday ahead of the General Assembly and is expected to hold talks and consultations with foreign officials during the UN gathering.
Araghchi has said Iran’s main objective at the UN is to defend the rights and interests of the Iranian people and use the gathering as a platform for diplomacy.
The Iranian delegation’s presence comes amid ongoing tensions between Tehran and Washington.
A senior Iranian official told Reuters on Tuesday that Iran was prepared to reopen the Strait of Hormuz within seven days if the United States eased military pressure and lifted its blockade of Iranian ports. The official said the Iranian delegation in New York had full authority to pursue diplomatic discussions.
Pezeshkian meanwhile said Iran had repeatedly entered negotiations and agreements only to see the other side fail to honour its commitments. He argued that lasting peace and security required respect for the rights of nations and individuals.
He also criticised military actions and developments in Gaza and other parts of the Middle East, saying attacks on civilians and public facilities could not simply be justified as counter-terrorism measures.
Pezeshkian is expected to address the UN General Assembly on Wednesday. His visit comes as the United States and Iran remain at odds over the conflict and the possibility of renewed diplomacy.
The Iranian president has said his trip will be aimed at presenting Iran’s position, explaining developments in the region and conveying what he called the message of the Iranian people to the international community.
Regional
G7 foreign ministers call on Iran to stop arming Houthis
The ministers of Britain, Canada, France, Germany, Italy, Japan and the United States said in a statement after a meeting on the sidelines of the United Nations General Assembly
G7 foreign ministers on Monday called on Iran to end its arming and support of Houthis in Yemen, which they said constituted a dangerous pattern of escalation that risked undermining international trade and creating global instability, Reuters reported.
“We condemn in the strongest terms the unacceptable continued strikes carried out by the Houthis in Yemen and against the Kingdom of Saudi Arabia,” the ministers of Britain, Canada, France, Germany, Italy, Japan and the United States said in a statement after a meeting on the sidelines of the United Nations General Assembly, read the report.
“We call on the Houthis to immediately cease all military actions, all threats and attacks against civilian shipping, and to return to the political process in good faith.”
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