Latest news with #defenseDeal
Times
6 days ago
- Business
- Times
BAE Systems boosted by Turkish order for up to 40 jet fighters
Turkey has struck a deal with the British government to buy up to 40 Typhoon combat aircraft, a move that should see work restart at BAE Systems' final assembly line for the planes at Warton in Lancashire. A memorandum was signed on Wednesday at a defence trade show in Istanbul by John Healey, the defence secretary, and the Turkish defence minister Yasar Guler. Turkey first discussed buying the aircraft three years ago, but the sale was blocked by the German government over concerns about Turkey's foreign policy. • Jailed Turkish opponent 'begs' Berlin to lift ban on fighter jet sale Germany — a member of the four-nation Eurofighter consortium that makes the Typhoon, along with the UK, Italy and Spain — has now dropped its veto. A statement from the British and Turkish government said the deal 'codifies the relationship between the countries, taking them one step closer to a full agreement on Typhoon'. This month BAE Systems demonstrated an improved cockpit display for the Typhoon PHIL NOBLE/REUTERS Turkey has been eager to re-equip its air force. Last year it signed a $23 billion deal with the United States for 40 new F-16 jets and upgrades to its existing fleet of the aircraft. The upgrade package was later ditched. A deal to buy a more advanced combat aircraft, the F-35, was blocked by the Pentagon after Turkey purchased Russian-made air defence systems. A deal for 40 Typhoons would be worth about £2.8 billion for the aircraft alone, with the value of the contract likely to be taken higher with provision for training, spares and support. Work at Warton stopped earlier this year after the completion of aircraft for export to Qatar, and staff were sent to other operations and Royal Air Force stations. The union Unite warned that a lack of UK orders for Typhoon was putting valuable aerospace skills at risk. The RAF has 137 of the aircraft, and is in the process of retiring its oldest 'Tranche 1' models. It last placed an order for Typhoon in 2009. Last month's strategic defence review prioritised the purchase of 12 F-35A planes instead. BAE Systems, whose shares are up nearly 50 per cent in the past year on hopes of rising defence spending, welcomed the agreement with Turkey. Chief executive Charles Woodburn said it underscored 'the critical role Typhoon plays in security and defence in Europe and the Middle East.' Although Typhoon has lost out to the F-35 in recent tenders, BAE Systems still has hopes for more export deals. Saudi Arabia, which operates 71 of the aircraft, has proposed buying another 48, and Crown Prince Mohammed bin Salman signed a memorandum for the new planes on a state visit to the UK in 2018. • Captured: moment seagull hits 600mph Typhoon at air show No final contract has been signed. Defence industry sources said the deal was not dead, but could be linked to talks on Saudi participation in the Global Combat Air Programme, which is led by the UK with Japan and Italy as partners. This plans to produce an advanced, stealthy aircraft to enter service in about a decade's time.
Washington Post
12-06-2025
- Politics
- Washington Post
Australia's defense minister downplays concerns over Pentagon review of multi-billion submarine deal
BANGKOK — Australia's defense minister dismissed concerns Thursday that a deal between the U.S., Australia and Britain to provide his country with nuclear-powered submarines could be in jeopardy, following a report that the Pentagon had ordered a review. Australian Defense Minister Richard Marles told Sky News Australia that he had known about the review of the deal 'for some time,' saying that it was a 'very natural step for the incoming administration to take.'
Reuters
15-05-2025
- Business
- Reuters
Saudi price war looks like unspoken gift to Trump: Bousso
LONDON, May 15 - Oil barely garnered a mention from U.S. President Donald Trump during his glitzy visit to Saudi Arabia this week. But the black gold may explain why the trip went so smoothly. Trump lavished praise on Saudi Crown Prince Mohammed bin Salman, known as MbS, in his speech on Tuesday at an investment summit in Riyadh as the Kingdom unveiled a $600 billion package for investment in the United States and Trump touted a $142 billion defence deal. Yet there was no public mention of the main thing that has tied the two countries together over the past century: oil. For decades, Washington and Riyadh have nurtured close ties based on Saudi Arabia's pivotal role in the oil market and America's strategic interests in the Middle East. This translated into hundreds of billions of dollars of military and economic support for Saudi Arabia over the years. For decades, Saudi Arabia was a major supplier of crude oil to the United States, with imports peaking at 2.2 million barrels per day in 2003, according to data from the Energy Information Administration. But with the surge in domestic U.S. oil production in the Gulf of Mexico and onshore shale basins in recent decades, Saudi exports gradually slid to around 275,000 bpd in 2024, less than 1.5% of total U.S. consumption. The decline in American dependence on Saudi petroleum had caused some U.S. politicians to question the alliance, including Trump's predecessor Joe Biden, who sought to make Saudi Arabia a pariah over the country's human rights record. But Trump used the first major overseas trip of his second term to send a clear message about the U.S. commitment to this partnership. The Kingdom, in turn, may have helped ensure the trip's success by taking steps beforehand to help lower oil prices, right as the president was facing scrutiny over his tariff policies. Saudi Arabia remains hugely influential in setting global oil prices through its iron-fisted leadership of the Organization of the Petroleum Exporting Countries, the cartel of producers founded in 1960 that today controls around 40% of global crude supplies. That influence was expanded in 2016 when OPEC formed an alliance with Russia and other producing nations known as OPEC+. Trump clearly recognizes this power. He called for OPEC, opens new tab to boost output in order to keep U.S. gasoline prices down days after taking office. Wanting to rein in energy prices is normal for any U.S. president, but it became doubly important for Trump after his tariff sweep of April 2 launched the United States into a trade war that risks increasing consumer prices. Given this backdrop, it's notable that Saudi Arabia recently made a dramatic shift in policy, pushing OPEC+ to increase oil output sharply into a market that was already well supplied, even as the demand outlook was tanking due to Trump's trade war. The group's decision to boost output by 411,000 bpd in May and again in June helped send oil prices tumbling to around $60 a barrel in early May from $82 a barrel at the start of the year. Prices are currently at around $66 a barrel. The timing of these supply increases was a bit head-scratching. But they make a lot more sense if the Saudis were seeking, at least in part, to give Trump a hand as he sought to pursue his ambitious economic and geopolitical agenda. First, falling energy prices could help minimize any inflationary impact from Trump's tariffs and support economic activity at a time when U.S. consumers and businesses are on edge. Additionally, lower oil prices could support Trump's efforts to mediate an end to the war in Ukraine. Plummeting energy prices put pressure on Russia, which is heavily reliant on oil and gas revenue. Trump recently indicated as much. "I think Russia, with the price of oil right now – oil has gone down – we are in a good position to settle, they want to settle," the president said on May 5. Riyadh's decision to add more oil into a well-stocked market could also help offset any oil lost through sanctions on Iran and Venezuela, which the Trump administration ratcheted up in recent months. To be sure, Saudi Arabia's decision to launch what amounts to an oil price war has been driven by several considerations, most notably the wish to punish OPEC+ members for failing to comply with production quotas and the Kingdom's desire to regain market share. But pursuing a price war at a time when there could be many forces suppressing demand is a questionable strategy. So why take this step now? Potentially because any short-term pain will be worth it if it enables MbS to gain significant political capital with the U.S. that can help him advance his 2030 vision to diversify Saudi's economy and receive generous military support. Trump's landmark visit to Saudi Arabia, therefore, may have had everything to do with oil, even if the topic never seemed to come up. ** The opinions expressed here are those of the author, a columnist for Reuters. ** Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here.
