Latest news on the Middle East conflict
Read the latest news stories as they are published.
Iran-US deal draft contains Hormuz pledge: State TV
Iran-US deal draft contains Hormuz pledge: State TV
London, 27 May (Argus) — A draft agreement to end the war between the US and Iran includes a pledge from Tehran to return the number of commercial ships passing the strait of Hormuz to pre-war levels within a month, Iranian state television reported today. Crude futures fell sharply after the report, with front-month Ice Brent approaching $94/bl, the lowest intraday level since 21 April. Prices subsequently regained some ground, with Ice Brent down by around 4pc as of 13:45 GMT. Broadcaster IRIB said it had seen a "first draft" of a 14-point agreement that said "managing the passage of ships… and receiving fees for services remains at the discretion of [Iran], which will work in co-operation with Oman". In return, IRIB said the US has pledged to lift the maritime blockade on Iran, and has agreed to "make a commitment" on the issue of its military presence in countries neighbouring Iran. Details of the latter agreement are unclear. None of this has been confirmed by the governments in Tehran or Washington, although US president Donald Trump on 23 May said an agreement with Iran to reopen the strait of Hormuz has been "largely negotiated". Today's IRIB report contains no mention of agreement on other key issues, like Iran's nuclear programme, or on the repatriation of funds to Tehran. By Nader Itayim and Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India’s PE, PP imports dip in March
India’s PE, PP imports dip in March
Mumbai, 25 May (Argus) — India's imports of polyethylene (PE) and polypropylene (PP) dropped in March as supplies from the Middle East fell sharply due to logistics challenges arising from the US-Iran war. India's PE imports fell by 10pc on the year and by 28pc on the month to 136,964t in March, according to customs data from Global Trade Tracker. PP imports slipped by 1.1pc on the year and by 17pc on the month to 140,661t. Shipments from the Middle East — which account for 62pc of India's PE imports and 51pc of PP — fell significantly. The closure of the strait of Hormuz has forced suppliers to reassess logistics, and use alternative routes such as Saudi Arabia's west coast ports of Jeddah and Yanbu, as well as the UAE's Fujairah port, and Oman's Duqm, Sohar and Salalah ports to export cargoes. India's PP imports from the UAE dropped by 49pc on the year to 18,199t in March. PE imports from the UAE fell by over 40pc to 24,759t. Saudi-origin PE cargoes to India declined by 24pc on the year to 18,808t. Saudi-origin PP inflows rose by 27pc on the year to 20,678t but were down by 55pc from February. Steep prices and uncertainty about delivery timings have led some buyers to look to other regions, including China, to meet the shortfall. India imported 17,207t of PP from China in March, almost doubling from 9,239t in March 2025. Chinese polymer exports to India hit an all-time high in April, according to China's customs data. India's overall drop in imports also came at a time when the country's domestic producers cut production after the Indian government asked refiners to divert propane, butene and propylene toward cooking gas production, limiting feedstock availability for petrochemicals. The government cut import duties on petrochemical products to zero in April because of the supply uncertainty. The import duty waiver expires on 30 June. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
War halves Kuwaiti oil products output, export in March
War halves Kuwaiti oil products output, export in March
Dubai, 22 May (Argus) — Kuwait's refinery output dropped by roughly half and exports by more than half in March, following the start of the US-Iran war on 28 February, which caused damage to Kuwait's oil infrastructure. Joint Organisations Data Initiative (Jodi) updates show that Kuwait's refinery production, excluding LPG, stood at just 627,000 b/d in March, its lowest since at least October 2022. Kuwait normally produces close to 1.1mn b/d, and in February its output reached an all-time high of 1.31mn b/d, according to Jodi data that goes back to 2002. Middle distillates and naphtha output were most affected. Jet fuel production fell by 58pc and gasoil by 45pc compared with average 2025 outputs, while naphtha dropped by 73pc. Fuel oil production was down by 17pc, while gasoline was the only oil product that increased compared with 2025, by 20pc. Kuwait's refining infrastructure was repeatedly hit by Iranian drone attacks in March and April. The 346,000 b/d Mina al Ahmadi refinery was hit on 3 April , after being hit on 19 and 20 March , and on 2 March, while 454,000 b/d Mina Abdullah was also struck on 19 March . Kuwait also operates the 615,000 b/d al-Zour refinery, but no direct hits have been reported there. The exact extent of the refinery damage has not been specified, making it difficult to assess the impact on operations. But at the end of March some units were shut at Mina al Ahmadi and Mina Abdullah was fully offline — it is now set to return online by 30 June — while al-Zour was operating at around 50pc capacity. Plant run rates could have also been lowered in response to the ongoing blockade of the strait of Hormuz, which continues to prevent refineries in the Mideast Gulf from exporting oil products. Kuwait's total oil product exports dropped by 60pc in March, compared with the average in 2025, Jodi data show. Middle distillates again suffered the biggest losses, with an around 78pc drop in jet fuel and 63pc drop in diesel exports. Naphtha exports fell by 59pc and fuel oil by 32pc, with gasoline again the only product marking an increase. The war has also severely disrupted regional and global flight schedules, with most of the countries in the Middle East closing their airspace at the start of the conflict. Kuwait was the last country in the region to announce that its airspace was reopening, on 24 April — nearly two months after shutting it, and is only starting the resumption of full operations at its international airport from 1 June . The flight disruption has sharply curtailed Kuwaiti jet fuel demand, which dropped to just 1,000 b/d in March, compared with an average 19,000 b/d in 2025. By Ieva Paldaviciute Exports 000 b/d Mar-26 2025 ±% Gasoline 17 2 963 Naphtha 67 165 -59 Jet-Kerosine 57 260 -78 Gasoil 106 289 -63 Fuel Oil 87 127 -32 Total exports 334 843 -60 Total product exports excludes LPG Jodi Refinery output 000 b/d Mar-26 2025 ±% Gasoline 78 65 20 Naphtha 53 194 -73 Jet-Kerosine 110 262 -58 Gasoil 180 327 -45 Fuel Oil 206 249 -17 Total output 627 1,096 -43 Total refinery output excludes LPG Jodi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US refiners boost jet fuel to near record levels
US refiners boost jet fuel to near record levels
Houston, 21 May (Argus) — US refiners are pumping out jet fuel at a near-record pace as global demand surges because of Iran-war related supply disruptions. US jet fuel output has reached above 2mn b/d in recent weeks , as refiners have added capacity and maximized yields, according to Energy Information Administration (EIA) estimates. The output is nearing the record weekly high of about 2.1mn bl set in July 2024. Jet fuel production has increased by nearly 290,000 b/d since the start of the US-Israel war on Iran on 28 February, the EIA data show. The conflict has choked off oil and products supply through the strait of Hormuz and damaged energy infrastructure, causing soaring fuel prices. US refiners expect high margins to continue at least through the end of 2026. Independent refiner Marathon Petroleum increased jet fuel capacity by 30,000 b/d at its 606,000 b/d Garyville refinery in Louisiana in March and plans to boost jet fuel capacity at its 253,000 b/d Robinson refinery in Illinois by 10,000 b/d in the third quarter. US refiner Valero has also maximized jet production in its system, increasing yields to more than 30pc of total distillates in March, up from an average of 26pc, chief operating officer Gary Simmons said on a first quarter earnings call. Valero plans to push two more refineries into "jet production mode" to increase yields even further, he said. Refiner HF Sinclair put into service a project that allows it to swing about 7,000 b/d between diesel and jet fuel at its 145,000 b/d Puget Sound refinery in Anacortes, Washington. The project is helping to supply the US west coast and Latin America, HF Sinclair said. The jet fuel production boost is not limited to the US. Canadian integrated energy company Suncor in December started producing jet fuel at its 137,000 b/d Montreal refinery in Quebec, with the potential to grow it up to 16,000 b/d. The original plan was to sell it domestically into airports in Montreal and Ottawa, but then the company saw the "unique market blowout" in the first quarter which continued into the second quarter "where jet fuel became short in certain markets", executive vice president of downstream Dave Oldreive said in a first quarter earnings call. Suncor earlier this month sold jet fuel into Rotterdam in the Netherlands, he said. Europe has sought replacement supplies following the strait of Hormuz disruptions. Jet fuel prices in the US climbed to record highs in March and early April following the start of the war. At the US Gulf coast, jet fuel prices reached an all-time high of $4.73/USG on 2 April, the highest price since Argus launched its assessment in 1994. Overall US jet fuel prices are expected to average $3.33/USG in 2026, the EIA said in its latest monthly Short-Term Energy Outlook (STEO) on 12 May. That forecast is up by 74pc from the EIA's estimate before the war. Airlines pay the price Jet fuel costs for all US airlines in March averaged $3.13/USG, up by 30pc from the same month in 2025, according to Bureau of Transportation Statistics data released on 6 May. Some airlines are limiting capacity because of the higher prices. United Airlines plans to reduce its flight capacity by five percentage points in 2026 as its first quarter jet fuel costs averaged $2.78/USG, up by nearly 10pc from the first quarter of 2025. Delta Air Lines expects its jet fuel costs to roughly double in the second quarter and will keep capacity flat year-over-year "until the fuel environment improves," chief executive Ed Bastian said on a first quarter earnings call last month. Another large US carrier, American Airlines, expects its jet fuel costs to increase by $4bn in 2026 compared to previous plans. One beleaguered US airline said it could not survive the rising prices. US low-cost carrier Spirit Airlines permanently shuttered its operations on 2 May, citing higher jet fuel costs, after filing for bankruptcy protection twice since 2024. By Eunice Bridges and Hunter Fite Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
