Israel-Iran Ceasefire Lowers Gulf Shipping Costs
Taarek Refaat
Shipping and war-risk insurance costs in the Arabian Gulf have fallen significantly over the past 48 hours, following the implementation of a ceasefire between Israel and Iran, industry sources told Reuters on Thursday. However, they cautioned that any renewed tensions could swiftly reverse the trend.
Calm Brings Relief—but for How Long?
Rates for chartering very large crude carriers (VLCCs)—capable of transporting around 2 million barrels of oil—dropped from over $60,000 per day last week to around $50,000 on Thursday, according to shipping data. The decline comes as fears ease over a potential Iranian closure of the Strait of Hormuz, through which nearly one-fifth of the world's oil and gas consumption flows.
'The rates have come down, yes, but the market remains extremely cautious,' said a senior executive at a European shipping firm. 'Any breach of the ceasefire—or even a credible threat—could send prices surging again within hours.'
War Risk Insurance Also Falls Slightly
In tandem with shipping rates, war risk insurance premiums have eased. According to insurance sources, the cost for voyages through the Gulf has fallen to between 0.35% and 0.45% of a vessel's value, down from a peak of 0.5% earlier in the week. For comparison, the pre-conflict average was around 0.3%.
'Premiums have definitely come down,' said David Smith, head of marine insurance at McGill and Partners.
'While war risk costs remain significant, more insurers are now willing to underwrite Gulf voyages, which, combined with improved political optics, is putting downward pressure on rates. Still, the situation remains extremely volatile.'
Greece Relaxes Maritime Alerts
Adding to the signs of de-escalation, Greece's Ministry of Shipping on Thursday relaxed its safety requirements for commercial vessels in the region. The ministry no longer advises mandatory reporting for ships transiting the Strait of Hormuz, citing what it called 'an improved outlook.'
Outlook: A Pause, Not a Resolution
While the drop in rates may signal temporary market relief, analysts warn that this is not a structural recovery. The geopolitical fragility surrounding the Strait of Hormuz means that risk pricing in shipping and insurance will remain sensitive to even the smallest flare-ups.
'This isn't the end of the crisis—it's a pause,' one Gulf-based risk analyst told us.
'Markets are breathing, not exhaling.'
read more
CBE: Deposits in Local Currency Hit EGP 5.25 Trillion
Morocco Plans to Spend $1 Billion to Mitigate Drought Effect
Gov't Approves Final Version of State Ownership Policy Document
Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister
Qatar Agrees to Supply Germany with LNG for 15 Years
Business
Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves
Business
Suez Canal Records $704 Million, Historically Highest Monthly Revenue
Business
Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday
Business
Wheat delivery season commences on April 15
News
China Launches Largest Ever Aircraft Carrier
Sports
Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer
Videos & Features
Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall
Lifestyle
Get to Know 2025 Eid Al Adha Prayer Times in Egypt
Business
Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War
Arts & Culture
Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies
News
Flights suspended at Port Sudan Airport after Drone Attacks
Videos & Features
Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
News
Shell Unveils Cost-Cutting, LNG Growth Plan
Technology
50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
8 hours ago
- Daily News Egypt
MSMEDA disburses EGP 57.5bn in project funding over 11 years: CEO
Bassel Rahmy, CEO of the Micro, Small and Medium Enterprise Development Agency (MSMEDA), announced that the agency has disbursed a total of EGP 57.5bn in funding for micro, small, and medium enterprises from July 2014 to May 2025. This figure marks a substantial increase compared to pre-2014 levels and reflects the state's intensified support for the sector since President Abdel Fattah Al-Sisi took office. Rahmy noted that this funding has contributed to the creation of more than 3.4 million job opportunities for Egyptian men and women, underpinning the agency's role in promoting employment and entrepreneurship nationwide. He added that 47% of total funding was channelled to governorates in Upper Egypt, aligning with the region's development priorities and financial needs. The announcement coincided with the celebration of World Micro, Small and Medium-sized Enterprises Day, held annually on 27 June. Rahmy highlighted the state's strategic commitment to supporting the small enterprise sector through comprehensive care, funding mechanisms, and the creation of an enabling environment that fosters the establishment and growth of industrial and productive projects. Since President Al-Sisi's inauguration, Rahmy explained, the state has launched numerous initiatives aimed at supporting citizens and encouraging them to embrace entrepreneurship and self-employment as a path to economic empowerment. These efforts reflect a deep understanding by the political leadership of the sector's critical role in driving economic development and industrial advancement. He emphasised that all relevant government bodies have worked in coordination to enhance the investment climate for small businesses, thereby maximising their contribution to the national economy. These efforts are in line with the directives of Prime Minister Mostafa Madbouly, who also chairs MSMEDA's Board of Directors. Rahmy also pointed to landmark progress in 2025, including successful cooperation with the Ministry of Finance and the Egyptian Tax Authority to implement Law No. 6 of 2025. The law addresses longstanding tax challenges for small businesses and introduces several key facilitations—most notably a simplified tax regime starting with a rate of 0.4% of annual turnover for businesses generating up to EGP 500,000, scaling up to 1.5% for those with turnover between EGP 10m and EGP 20m. The law also offers exemptions from stamp duties and other taxes. He affirmed MSMEDA's active role in integrating the informal economy into the formal sector through structured plans to regularise and legalise informal enterprises. These efforts are aimed at ensuring long-term project sustainability, improving productivity, and enabling access to the benefits offered under Law No. 152 of 2020 on Enterprise Development. The agency provides documentation and licensing services to help businesses operate legally, paving the way for them to access incentives such as marketing support and eligibility for the government's 40% procurement allocation to small enterprises. In the area of capacity building, Rahmy noted that MSMEDA has provided entrepreneurship training to more than 83,000 individuals. This initiative seeks to foster a new generation of skilled and capable entrepreneurs across Egypt. To enhance product marketing and commercial exposure for its clients, MSMEDA has organised 1,441 exhibitions featuring 32,492 project owners. These events generated total sales and contract values exceeding EGP 2.1bn. Rahmy concluded by calling on young people to take initiative by visiting the agency's branches across governorates or accessing its website to learn more about its financial and technical services. These services, he said, can support aspiring entrepreneurs in launching or expanding businesses across a wide range of sectors. World MSME Day was officially designated by the United Nations on 27 June following a proposal submitted by Egypt in 2016 via the World Association for Small and Medium Enterprises. The day aims to celebrate and recognise MSMEs globally as a fundamental pillar of economic growth and stability.
Al-Ahram Weekly
10 hours ago
- Al-Ahram Weekly
Surge in conflicts fuels extreme poverty: World Bank - Region
Conflicts and related fatalities have more than tripled since the early 2000s, fueling extreme poverty, the World Bank said. Economies in fragile and conflict-affected regions have become "the epicentre of global poverty and food insecurity, a situation increasingly shaped by the frequency and intensity of conflict," the bank added in a new study. This year, 421 million people get by on less than $3 a day in places hit by conflict or instability -- a situation of extreme poverty -- and the number is poised to hit 435 million by 2030. Global attention has been focused on conflicts in Ukraine and the Middle East for the past three years, said World Bank Group chief economist Indermit Gill. But "half of the countries facing conflict or instability today have been in such conditions for 15 years or more," he added. Currently, 39 economies are classified as facing such conditions, and 21 of them are in active conflict, the Washington-based development lender said. The list includes Ukraine, Somalia, South Sudan, and the West Bank and Gaza. It also includes Iraq, although not Iran. The report flagged that moves to prevent conflict can bring high returns, with timely interventions being "far more cost-effective than responding after violence erupts." It also said that some of these economies have advantages that could be used to reignite growth, noting that places like Zimbabwe, Mozambique, and the Democratic Republic of Congo are rich in minerals key to clean tech like electric vehicles and solar panels. "Economic stagnation -- rather than growth -- has been the norm in economies hit by conflict and instability over the past decade and a half," said Ayhan Kose, World Bank Group deputy chief economist. The bank's report noted that high-intensity conflicts, which kill more than 150 per million people, are typically followed by a cumulative fall of around 20 per cent in GDP per capita after five years. Follow us on: Facebook Instagram Whatsapp Short link:
Economic Key
10 hours ago
- Economic Key
Brevan Developments unveils new phase of Lake House project with premium units at exclusive prices
Brevan Developments has announced the launch of a new phase in its flagship project, Lake House, as part of its strategy to meet the growing demand for integrated and premium residential developments that combine quality, luxury, and affordability. This new phase includes a selection of distinguished units offered at competitive prices with attractive payment plans. The announcement was made during a ceremony attended by the company's officials, including Eng. Saeed Sakr, a member of the company's board of directors, Ibrahim Abdel Azim, also a board member, and Saber Zahran, another board member, along with several representatives from marketing companies and success partners. Eng. Saeed Sakr, a board member of Brevan Developments, stated that the launch of the new phase comes in response to the strong demand witnessed in the previous phases of the project, particularly due to its strategic location, diverse unit sizes, and modern architectural designs tailored to meet the needs of various customer segments. He said that the new phase will feature premium residential units offered at competitive prices and flexible payment plans, with discounts of up to EGP 3,500 per sqm. This phase includes units with stunning views overlooking the lagoon within the project, along with a range of unit spaces designed to accommodate diverse customer preferences. Sakr added that the Lake House compound enjoys a prime location next to the New Obour City Authority and close to the city's main entrance. A major competitive advantage of the project is its strategic position on a prominent corner along Al-Sabein Street in New Obour. He noted that the total area of the project spans over 9.5 feddans and includes 19 residential buildings, in addition to a commercial mall featuring 135 retail stores overlooking the street. The compound also features two swimming pools, an artificial lake, a children's play area, a cycling track, a jogging track, and landscaped green spaces, along with security and guarding services. The compound comprises 480 residential units, with a total investment cost reaching EGP 2.5bn. He explained that the project offers a variety of residential units, starting from one-bedroom studios at 81 sqm, two-bedroom units at 136 sqm, three-bedroom units at 155 sqm and 170 sqm, four-bedroom units at 215 sqm, and duplexes reaching up to 335 sqm. Brevan Developments offers flexible and attractive payment plans, including a 15% down payment with installments over 6 years, or a 25% down payment with the balance payable over 7 years. Sakr disclosed that the project constructions are scheduled to begin within six months, with handover expected to start in June 2028. The company has contracted Professor Dr. Mohamed Abdel Rahman Abu Kahla to serve as the project consultant, in addition to collaborating with BEYOOT Engineering & Contracting and Al Saqr Contracting, both of which are reputable firms known for their strong track record in quality and commitment. In a related context, he noted that Brevan Developments has an impressive portfolio of past projects, including multiple developments in Obour and New Obour cities. The company also has several projects in Beit El Watan and Investors areas in New Cairo, as well as operational hotel projects in Hurghada, which include three residential compounds and several buildings that have already been delivered. He pointed out that the company's land portfolio includes a wide and diverse range of plots, including properties in the Jamaran resort in Sahl Hasheesh, Hurghada, which are currently undergoing licensing procedures. It also includes plots under development in New Cairo's Fifth Settlement, a commercial plot in Obour currently being licensed, and the existing Lake House compound. The company plans to launch two commercial malls in Obour City, along with the La Quanda compound in Sahl Hasheesh, Hurghada, in the near future, in parallel with ongoing work and development in its current projects. He concluded by stating that the company aims to expand into New Administrative Capital and North Coast. As one of the early developers to invest in coastal cities, Brevan Developments has been active in Hurghada for over 15 years. The company self-finances its projects alongside revenue generated from property sales. تم نسخ الرابط
