Airlines weigh Middle East cancellations after US strikes in Iran strand thousands
Commercial airlines around the world on Monday were weighing how long to suspend Middle East flights after the U.S. struck Iran.
Singapore Airlines, one of the highest-profile in Asia, had called the situation "fluid" on Sunday as it cancelled flights from Singapore to Dubai following a security assessment.
The Middle East route has become more important for flights between Europe and Asia since Russian and Ukrainian airspace closed due to war, but flight tracking website FlightRadar24 showed empty space over Iran, Iraq, Syria and Israel.
Air France KLM said on Sunday that it cancelled flights to and from Dubai and Riyadh on Sunday and Monday. British Airways, owned by IAG, also cancelled flights to and from Dubai and Doha for Sunday. It was still reviewing the situation, it said in a statement on Sunday evening, when asked about later flights.
Missile and drone barrages in a growing number of conflict zones represent a high risk to airline traffic, and an organization that monitors flight risks, Safe Airspace, a website run by OPSGROUP, warned on Sunday that U.S. attacks on Iran's nuclear sites could heighten the threat to American operators in the region.
In the days before the U.S. strikes, American Airlines suspended flights to Qatar and United Airlines did the same with flights to Dubai.
Airlines are also concerned about a potential spike in oil prices following the U.S. attacks, which will increase the cost of jet fuel.
Israel meanwhile is ramping up flights to help stranded travellers at home and abroad. The country's Airports Authority says that so-called rescue flights to the country would expand on Monday with 24 a day, although each flight would be limited to 50 passengers. Israeli airline El Al on Sunday said it had received applications to leave the country from about 25,000 people in about a day.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
26 minutes ago
- Zawya
Dollar advances as investors brace for Iran response to US attacks
SINGAPORE/LONDON - The U.S. dollar firmed on Monday as nervy investors sought safety, although the restrained moves suggest markets were waiting for Iran's response to U.S. attacks on its nuclear sites that have exacerbated conflict in the Middle East. Iran said on Monday that the U.S. attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called U.S. President Donald Trump a "gambler" for joining Israel's military campaign against the Islamic Republic. The major moves were in the oil market, with crude prices hitting a five-month high, before dipping to trade lower on the day. The dollar firmed 1% against the yen and was last at 147.450 , at its highest level since May 15. Bank of America strategists said dollar/yen can reprice higher if oil prices remain elevated, noting Japan imports almost all of its petroleum, more than 90% of which comes from the Middle East, while the U.S. is largely energy-independent. The euro fared better, just 0.2% lower at $1.14965 and unchanged after Euro area flash PMIs showed the region's economy flatlined for a second month in June. Slightly improving UK flash PMIs also hit screens but didn't move the dial on sterling, which last fetched $1.34385, just 0.1% lower against the dollar. Meanwhile, the Australian dollar, often seen as a risk proxy, hit a one-month low and was last 0.52% weaker at $0.64180, while the New Zealand dollar sank 0.68% to $0.5926. That left the dollar index, which measures the U.S. currency against six other units, 0.15% higher at 99.065. Carol Kong, currency strategist at Commonwealth Bank of Australia, said the markets are in wait-and-see mode on how Iran responds, with more worries about the positive inflationary impact of the conflict than the negative economic impact. "The currency markets will be at the mercy of comments and actions from the Iranian, Israeli and U.S. governments," Kong said. "The risks are clearly skewed to further upside in the safe haven currencies if the parties escalate the conflict." Iran vowed to defend itself a day after the U.S. dropped 30,000-pound bunker-buster bombs onto the mountain above Iran's Fordow nuclear site. American leaders urged Tehran to stand down while pockets of anti-war protests emerged in U.S. cities. In a step towards what is widely seen as Iran's most effective threat to hurt the West, its parliament approved a move to close the Strait of Hormuz. Nearly a quarter of global oil shipments pass through the narrow waters that Iran shares with Oman and the United Arab Emirates. While the dollar has reprised its role as a safe haven due to the rapid spike in geopolitical risks, the relatively muted moves suggest investors remain wary of going all in on the greenback. The U.S. currency has dropped 8.6% this year against its major rivals as economic uncertainty from President Donald Trump's tariffs and concern over their impact on U.S. growth led investors to scurry for alternatives. Markets are also looking ahead to Fed Chair Jerome Powell's semi-annual testimony to Congress. "In a sharply divided political landscape, Powell is expected to underscore the Fed's independence and reiterate that any rate decision will remain firmly data-dependent," George Vessey, lead FX and macro strategist at Convera, said. Elsewhere bitcoin was up 2.4% in early trade after dropping about 4% on Sunday.
Zawya
26 minutes ago
- Zawya
Oil rises in choppy session as investors weigh up US strikes on Iran
LONDON - Oil prices rose on Monday in a volatile session following the United States' weekend move to join Israel in attacking Iran's nuclear facilities, as investors weigh the potential risks to oil supply disruptions as a result of the escalating conflict. Brent crude futures were up 78 cents, or 1.01%, to $77.79 a barrel as of 1000 GMT. U.S. West Texas Intermediate crude rose by 76 cents, or 1.03%, to $74.60. U.S. President Donald Trump said he had "obliterated" Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself. Israel carried out fresh strikes on Iran on Monday including on capital Tehran, and Iran's nuclear facility of Fordow which was also a target of the U.S. attack. Iran is OPEC's third-largest crude producer. Iran said on Monday that the U.S. attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called U.S. President Donald Trump a "gambler" for joining Israel's military campaign against the Islamic Republic. China meanwhile said the U.S. attack had damaged Washington's credibility and warned that the situation "may go out of control." Price were volatile in Monday's session. Both contracts touched fresh five-month highs earlier in the session of $81.40 and $78.40 respectively, before giving up their gains to turn negative during the European morning session and then recovering to a 1% gain. Prices have risen since the start of the conflict on June 13 amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. However, investors are weighing up the extent of the geopolitical risk premium in oil markets given the Middle Eastern crisis is yet to impact on supply. "The geopolitical risk premium is fading, as so far there has been no supply disruptions. But as it's unclear how the conflict might evolve, market participants are likely to maintain a risk premium for now. So prices are set to stay volatile in the near term," UBS analyst Giovanni Staunovo said. The geopolitical risk premium includes fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. "All eyes remain on the Strait of Hormuz ... and whether Iran will seek to disrupt tanker traffic," Saxo Bank analyst Ole Hansen said. Prices could spike in the short term even without full-scale disruption, if the threat of interference alone is enough to delay shipments through the Strait, Hansen added. Goldman Sachs said in a Sunday report that Brent could briefly peak at $110 per barrel if oil flows through the critical waterway were halved for a month, and remain down by 10% for the following 11 months. The bank still assumed no significant disruption to oil and natural gas supply, citing global incentives to try to prevent a sustained and very large disruption. Given the Strait of Hormuz is indispensable for Iran's own oil exports, which are a vital source of its national revenues, a sustained closure would inflict severe economic damage on Iran itself, making it a double-edged sword, said Sugandha Sachdeva, from research firm SS WealthStreet.
Zawya
an hour ago
- Zawya
Eni reducing personnel at Iraq's Zubair field as precautionary move
Eni has reduced the presence of its personnel at the Zubair oil and gas field in Iraq as a precautionary move, a spokesman for the Italian energy group said on Monday. U.S. attacked key Iranian nuclear sites during the weekend, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution. Eni said it was monitoring the situation across the Middle Eastern region, in close coordination with authorities. Shell and Chevron, which also have operations in Iraq, declined to comment on developments that might affect their business in the country. "Our top priority is the safety of our personnel, the communities in which we operate, the environment, and our facilities," Chevron said in an emailed comment. (Reporting by Francesca Landini in Milan and Marwa Rashad in London, editing by Gavin Jones)
