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Iran eyes regional solution for Hormuz crisis
Iran eyes regional solution for Hormuz crisis
Dubai, 9 April (Argus) — Iran is proposing a regional solution to the strait of Hormuz crisis that would involve at least some of the countries bordering the Mideast Gulf, according to a bill currently under discussion in parliament. Part of that would involve charging a fee for vessels passing through the key waterway, with revenues from this available to all participating countries as 'war reparations'. " Dubbed the 'law of strategic action for peace and development of the Persian Gulf,' the Iranian bill would govern Tehran's oversight and management of traffic through Hormuz, which has been severely disrupted since the start of the US-Israeli war against Iran on 28 February. Tehran's subsequent threats to any and all vessels it deemed to be 'unfriendly' led to traffic through the strait dropping to around seven a day in March, compared with typical daily movement of more than 100 before the war according to Kpler data. Diplomatic engagement with several of what Tehran dubs 'friendly' countries has seen a slight pick-up in traffic through the strait, with more than 11 vessels crossing on average in the first eight days of April. Malaysia, Thailand, the Philippines and Iraq have all secured deals for passage with Tehran, and Islamabad last week said it had secured the safe passage of 20 Pakistani-flagged ships. This pick-up came as Iran began introducing something of a toll system, whereby vessels would pay Tehran a fee to transit the waterway safely — a process first revealed by Iranian parliament member Alaeddin Boroujerdi in mid-March . Speaking to Argus , Hamid Hosseini, spokesman for Iran's oil, gas and petrochemical products exporters' union, confirmed the toll mechanism remains in place. "Every very large crude carrier (VLCC) transiting the strait has been paying $2mn, in line with what has been under discussion in parliament," Hosseini said. The fee being charged is directly linked to the volume of oil on board, Hosseini said. "Ship owners are being asked to pay $1 per barrel, and that can be done in the local currency, rials, or cryptocurrency, but only after the vessel has received a permit from the IRGC," he said. Tidings for all This mechanism appears to form the basis of how Iran sees the future of the strait of Hormuz, and its role as the guardian and guarantor of the key waterway. "The Iranian government, in co-operation with the Iranian armed forces, is obliged to provide services, like navigation guidance and vessel inspection, as well as compliance and financial assessments," the bill says, specifying that vessels related to "warring countries" will, for the most part, be barred. "The armed forces will determine which vessels are considered belligerent, and which are not," the bill says, stating that final say will come from the Supreme National Security Council (SNSC), one of Iran's most powerful decision-making bodies. Chaired by the president, the SNSC is responsible for national security, defense and major foreign policy strategy, and has been deeply involved in formulating Iran's war effort. The bill reiterates vessels will need to pay a fee to transit Hormuz, either in rials or cryptocurrency, it says proceeds will not go to Iranian state coffers, but to what it calls a 'Persian Gulf Reconstruction and Development Fund' that regional countries can apply to join. "The resources in this fund will be considered war reparations for Iran and other member countries, and be used for the reconstruction and development needs of the member countries," the bill says. Gulf countries are yet to show appetite for this plan. Oman's transport, communications and information technology minister Said Al-Maawali on 8 April said the country is party to all international maritime conventions, which do not allow for the imposition of charges on passage. The Iranian bill has secured approval from parliament's national security council, but has not yet been brought to the parliament floor for a vote, Hosseini said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Australia selects renewable projects for aid scheme
Australia selects renewable projects for aid scheme
Sydney, 9 April (Argus) — The Australian Labor government has selected two renewable energy projects for a fast-track program in a bid to improve the country's long-term fuel security because Iran's effective blockade of the strait of Hormuz raised supply concerns across Australia. The Investor Front Door pilot program will streamline approvals for projects deemed of national significance, including low-carbon liquid fuel company HAMR Energy's proposed Portland Renewable Fuels project in Victoria, the government said today. The project will use local forestry residue to produce 300,000 t/yr of low-carbon methanol. The methanol can be used directly as a shipping fuel or converted into sustainable aviation fuel (SAF) at its proposed 140mn litre/yr methanol-to-jet facility in South Australia. HAMR said its selection for the pilot program will help attract investment and allow the firm to work closely with the government, as it pursues a final investment decision. The second renewable energy project selected was the Murchison Green Hydrogen project in Western Australia (WA). The project is a green hydrogen plant producing large-scale green ammonia using wind and solar. Ardea Resources' Kalgoorlie nickel project in WA — one of the largest nickel and cobalt resources in Australia — and New Energy Transport's Wilton electric freight hub were also selected to support supply chain stability. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Delta expects fuel costs to double in 2Q: Update
Delta expects fuel costs to double in 2Q: Update
Adds more details from analyst call Houston, 8 April (Argus) — Delta Air Lines expects its jet fuel costs to roughly double in the second quarter as the conflict in the Middle East continues to restrict supply. The company expects an all-in fuel price of $4.30/USG during the second quarter, Delta said this morning in its quarterly earnings call. Supply constraints and higher prices due to the war will add more than $2bn in additional fuel costs for Delta in the second quarter, chief executive Ed Bastian said on the call. The company's first quarter adjusted fuel price was $2.62/USG, up nearly 7pc from a year earlier, with total fuel expenses totaling $2.6bn, a $330mn increase. Delta's 190,000 b/d Monroe refinery in Trainer, Pennsylvania, helped shave $0.06/USG off of its fuel costs. The US and Iran agreed to a two-week ceasefire starting late Tuesday, but so far there are few signs that the flow of tankers through the strait of Hormuz has picked up significantly. Earlier this week the US Energy Information Administration yesterday increased its jet fuel price outlook to $4.22/USG during the second quarter, compared with just $2.74/USG during the first quarter. That estimate assumed a full resumption in tanker traffic through the strait by the end of April. Delta intends to limit capacity growth to flat year-on-year "until the fuel environment improves," Bastian said, which will help the company better manage higher jet fuel costs. Delta's "main cabin" capacity contracted by 3pc in the first quarter compared to the prior year. The refinery is projected to add $300mn in profit during the second quarter, based on current prices, Delta said. Delta's first-quarter revenue passenger miles — a measurement of miles flown by paying passengers — increased by 1pc annually to 56.47bn miles. Available seat miles — a measure of capacity — also increased by 1pc to 69.16bn in the first quarter. The company expects more than 10pc annual revenue growth in the second quarter as it sees continued strength in corporate and consumer demand. First-quarter operating revenue was up by 13pc annually to $15.85bn while the company reported a $289mn net loss — compared to a $240mn profit in the first quarter 2025. Fleet operations Delta took delivery of eight aircraft during the first quarter and ordered 95 additional aircraft, including Airbus and Boeing 787. The company announced new routes between Austin and Phoenix and plans to expand services from Austin to Bozeman, Montana, starting next winter. This will bring the airline's total destinations out of Austin to 30 by the end of the year. There will also be expanded services from Los Angeles to three destinations in Florida this winter, and a new nonstop flight from New York to Orange County, California, will begin on 7 May. By Amanda Hilow Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US-Iran war sends FuelEU abatement price negative
US-Iran war sends FuelEU abatement price negative
London, 8 April (Argus) — The FuelEU used cooking oil methyl ester (Ucome)–marine gasoil (MGO) abatement ex-emissions trading system (ETS) price was negative on 7 April, underscoring how the US-Iran war has distorted marine fuel economics by driving fossil fuel prices sharply higher. The abatement price — which reflects the cost of meeting FuelEU requirements by using biodiesel instead of conventional MGO — fell below zero on 2 April for the first time since the assessment began at the start of 2025. It has remained negative since then, standing at -€23.46/t CO2 equivalent (CO2e) on 7 April. It follows a sharp rally in oil markets triggered by the conflict. The front-month Ice gasoil futures contract reached an all-time high of $1,569.75/t on 2 April, lifting MGO values and narrowing the cost gap between fossil fuels and biofuels. As a result, the typical "green premium" associated with biodiesel use was eroded. FuelEU Maritime regulations, which entered into force in 2025, require vessels operating in EU waters to cut greenhouse gas intensity by 2pc. The negative abatement price indicates that, at current values, using Ucome-based marine fuel is cheaper than using MGO on a compliance-adjusted basis. The shift follows an earlier distortion seen during the conflict, when B100 advanced fatty acid methyl ester (Fame) delivered into the Netherlands moved to a discount to MGO delivered into the Amsterdam-Rotterdam-Antwerp (ARA) hub once ETS costs were included. In parallel, traded FuelEU compliance surpluses for 2026 were reported at around €185/tCO2e on 8 April. This means it is currently cheaper to generate compliance using marine biodiesel blends than to buy surpluses to meet the FuelEU requirements. This is in stark contrast to last year, when shipowners largely opted to purchase overcompliance instead of using biodiesel — mainly due to cheaper compliance generated via manure-based bio-LNG . Despite these shifts, physical demand for marine biodiesel has yet to rise meaningfully. Market participants have reported limited increases in buying, but overall demand remains subdued even where biodiesel blends now offer a lower compliance-adjusted cost. This may be because of ongoing price volatility and uncertainty about the direction of the US-Iran war, which is keeping many shipowners focused on securing fossil fuel supplies for their vessels for the coming weeks. Another reason could be a lack of availability of marine biodiesel blends at smaller ports, and concerns from shipowners about engine compatibility for pure biodiesel. Demand for FuelEU compliance surpluses for 2026 has also softened, with plenty of offers but no bids. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.