- China Blinks on Iran, Tells Banks to Freeze Refinery Loans
May 7, 2026
China Blinks on Iran, Tells Banks to Freeze Refinery Loans - Moby
THE GIST
Beijing is quietly bending to Washington’s pressure. China's financial regulator advised the country's largest banks to temporarily suspend new loans to five refiners recently sanctioned by the U.S. over ties to Iranian oil. Just goes to show that even China has only limited powers when it comes to defying the U.S. on Iran.
WHAT HAPPENED
China's National Financial Regulatory Administration (NFRA) asked banks to review exposure and business dealings with firms including Hengli Petrochemical (Dalian) Refinery Co., one of China's largest private refiners. In effect, it means to pause all new loans to refiners sanctioned by the U.S.
The specifics are significant: Banks are told to refrain from extending new yuan-denominated loans, but not to call in existing credit. In other words, Beijing is freezing the relationship at its current level — not unwinding it, but not deepening it either. As neutral as Washington likes it.
The trigger was direct U.S. pressure, nothing subtle about it. Treasury Secretary Scott Bessent confirmed the U.S. sent letters to two Chinese banks warning of secondary sanctions risk if they were found supporting transactions tied to Iran, though he didn't identify the banks.
WHY IT MATTERS
This maneuver is a masterclass in how U.S. financial power actually works. Washington doesn't need China to publicly agree with its sanctions. It just needs to make compliance the path of least resistance for Chinese banks. And it's working.
The verbal directive came before China entered its long holiday weekend on May 1, contrasting sharply with a May 2 notice from China's Ministry of Commerce, which instructed companies to disregard U.S. sanctions. The left hand is telling companies to ignore Washington. The right hand is telling banks to comply. Both statements were made within days of each other.
Beijing has played this game before: while publicly railing against unilateral sanctions, it’s allowed its largest companies to comply in order to avoid blowback on its own economy. In earlier episodes it channeled Iran-related transactions through a bank that’s now sanctioned. The pattern is consistent: China absorbs the political cost of public defiance while protecting its systemically important institutions from real financial pain.
Take Hengli, for instance. As one of China's largest private refiners, losing access to new credit while simultaneously struggling to receive Iranian crude is a serious squeeze. If Beijing lets Hengli fail or downsize significantly, it signals a genuine shift in how far China will go to protect Iranian oil flows.
Story Continues
WHAT’S NEXT
With this, Washington has once again demonstrated that secondary sanctions remain one of its sharpest geopolitical tools, even against the world's second-largest economy.
China's Commerce Ministry is telling firms one thing while the NFRA tells banks another. That's an unstable equilibrium that will eventually crack.
Downstream Analysis
Positive Impacts
Companies
ExxonMobil (XOM) — Reduced Iranian oil supply could lead to higher global crude prices, benefiting major integrated oil companies. Chevron (CVX) — As a major global oil producer, Chevron stands to benefit from any tightening in global crude supply and potential price increases. Shell (SHEL) — Global energy major that could see improved margins from higher crude oil prices if Iranian supply is constrained. BP (BP) — Integrated energy company that benefits from higher crude oil prices due to its upstream production assets. TotalEnergies (TTE) — French energy giant that would see a positive impact from a firmer global crude oil market.
Industries
Global Oil & Gas Exploration & Production — Reduced Iranian oil supply and Chinese refiners seeking alternative sources could firm up global crude prices, benefiting producers. Global Financial Institutions (non-Chinese) — Affirmation of the U.S. financial system's dominance and reduced competition from Chinese banks in certain international transactions.
Countries / Commodities
United States — Demonstrates the effectiveness of secondary sanctions, strengthening its geopolitical leverage and financial power. Crude Oil (non-Iranian sources) — Increased demand from Chinese refiners seeking alternatives to Iranian oil could support prices.
Neutral Impacts
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Companies
Industrial and Commercial Bank of China (IDCBY) — While new loans to sanctioned refiners are suspended, existing credit is not called in, balancing compliance with avoiding economic shock. China Construction Bank (CICHY) — Faces a similar situation to other large Chinese banks, freezing new loan relationships without unwinding existing ones. Agricultural Bank of China (ACGBY) — Navigates conflicting directives by pausing new loans to sanctioned entities while maintaining current financial ties. Bank of China (BACHY) — Adopts a cautious approach, suspending new loan facilities to avoid U.S. secondary sanctions without fully withdrawing from existing relationships. Bank of Communications (BKXCY) — Experiences a mixed impact, avoiding U.S. sanctions risk but foregoing potential new business with specific refiners.
Industries
Chinese Banking Sector — Navigating conflicting directives from Chinese regulators (NFRA vs. Ministry of Commerce) leads to a cautious, frozen approach rather than aggressive expansion or contraction in this specific segment.
Countries / Commodities
China — Balances public geopolitical defiance against U.S. sanctions with private economic pragmatism to protect its systemically important institutions.
Negative Impacts
Companies
Hengli Petrochemical (Dalian) Refinery Co. — Losing access to new credit and struggling to receive Iranian crude represents a serious financial squeeze and operational challenge. Rongsheng Petrochemical (002493.SZ) — As another major private refiner, it is likely among the five impacted, facing similar credit and crude supply restrictions. Sinopec (SNP) — As a major Chinese refiner, it may face increased scrutiny regarding crude sourcing and potentially higher costs for alternative non-Iranian crude. PetroChina (PTR) — Similar to Sinopec, this state-owned refiner could face higher operational costs and supply chain adjustments due to reduced Iranian oil access. CNOOC (CEO) — While primarily an upstream company, it could be indirectly affected by broader pressures on the Chinese energy sector or potential shifts in crude demand.
Industries
Chinese Oil Refining/Petrochemicals — Increased operating costs due to higher crude prices (if forced to buy non-Iranian crude) and restricted access to capital. Iranian Oil & Gas Production — Reduced demand from a major customer (China) due to sanctions compliance by Chinese banks and refiners.
Countries / Commodities
Iran — Reduced oil export revenue due to U.S. secondary sanctions impacting its largest customer, China. Iranian Oil — Decreased demand and potential for lower prices for Iranian crude due to reduced access to the Chinese market.
Key Downstream Effects
Immediate: Increased Scrutiny on Chinese Financial Institutions — Chinese banks will immediately review their exposure to sanctioned entities and high-risk jurisdictions, leading to a more cautious approach to international transactions to avoid U.S. secondary sanctions. Confidence: High. Short-term: Higher Operating Costs for Chinese Refiners — Refiners like Hengli Petrochemical will face increased costs as they are forced to seek alternative, potentially more expensive, crude oil sources and are cut off from new, potentially cheaper, yuan-denominated loans. Confidence: High. Medium-term: Shift in Global Crude Oil Trade Flows — China's reduced reliance on Iranian oil will necessitate increased purchases from other major oil producers, potentially shifting global trade routes and demand patterns for non-Iranian crude. Confidence: Medium. Long-term: Reinforcement of U.S. Financial Hegemony — This event demonstrates the enduring power of U.S. secondary sanctions, solidifying Washington's ability to influence global financial and trade policies even against major economic powers like China. Confidence: High. Medium-term: Internal Policy Contradiction in China — The conflicting directives from China's NFRA and Ministry of Commerce create an unstable policy environment, which could lead to confusion for Chinese companies and potential future policy adjustments. Confidence: Medium.
Economic Indicators
↑ Crude Oil Prices (Brent/WTI) — Reduced Iranian supply to a major market (China) could tighten global crude markets, pushing prices higher.
↓ Iranian Oil Exports — Direct consequence of U.S. secondary sanctions and Chinese banks' compliance, reducing Iran's ability to sell oil.
→ USD Index — Reinforces the U.S. dollar's role in global finance due to the effectiveness of U.S. secondary sanctions, maintaining its strength.
↓ Chinese Refiner Profit Margins — Increased crude acquisition costs and restricted access to credit will squeeze the profitability of Chinese refiners.
→ China's Yuan (CNY) — While new yuan loans are suspended, the overall impact on the currency is likely neutral as Beijing balances compliance with economic stability.
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- Iran is Paying for War with Crypto Backed by America’s Debt
Apr 27, 2026
Iran is Paying for War with Crypto Backed by America’s Debt - Moby
THE GIST
Iran's biggest crypto exchange has been secretly processing billions for sanctioned organizations, and the blockchains powering it were built by people Trump just pardoned.
The exchange, Nobitex, processes about $7.2 billion in trades from more than 11 million users.
It’s become an essential on-ramp for U.S.-sanctioned organizations. A Reuters investigation found that some $2.3 billion has been processed on Nobitex since 2023.
WHAT HAPPENED
The Iran War has been the biggest talking point in markets and geopolitics since the outbreak of the conflict in February. While the Strait of Hormuz, a key energy corridor, remains a flash point, Iran has since 2018 built a system to use crypto to pay for military supplies.
The system’s flow is straightforward: sanctioned Iranian entities, such as Iran’s Central Bank and the IRGC, deposit funds — either in Iranian rials or crypto already held domestically — into Nobitex accounts. This allows anyone to fund transfers that are hard for Western financial monitors to track and, even if they could, we’re not sure how they would “stop” them via the blockchain. The primary crypto is USDT, a stablecoin.
Once Nobitex has Iran’s funds, they convert them to USDT and give them access to seemingly anyone in the world. This is where China and other countries supporting Iran with their war efforts come in. By using the Tron blockchain, owned and operated by CEO Justin Sun, as well as Binance’s BNB Smart Chain (formerly run by Changpeng Zhao or CZ), millions have moved from wallets tied to Iran to wallets on these blockchains.
These could be Chinese trading companies, arms suppliers, and intermediaries who simply sit back and receive stablecoins directly into their wallets, then cash out through exchanges in their own jurisdictions.
While Nobitex does have Know Your Customer (KYC) protocols, they’re evidently not that difficult to game. And remember, both Sun and CZ were pardoned by President Trump.
WHY IT MATTERS
CZ was criminally charged and convicted for a similar scheme in November 2023. Despite clear violations of economic sanctions targeting Iran, he was only sentenced to four months and would later receive a presidential pardon.
Though President Trump denies any “deal here,” it’s been widely reported that this was in exchange for allowing the trading of two Trump family-linked cryptos, USD1 and WLFI, onto Binance. Trump claims he had “no idea” who CZ was in a 60 Minutes interview.
The SEC sued Sun, the CEO of TRON, in March 2023, alleging unregistered securities sales, fraud, and market manipulation. After Sun “invested” some $75 million in World Liberty Financial, the Trump sons’ crypto firm, and Trump’s meme-coin $TRUMP, the SEC settled with one of Sun’s companies and dropped the civil case against Sun personally and the TRON Foundation.
Story Continues
To lay it all out on the table: the two biggest blockchains — both linked to CZ and Sun and both pardoned by a president who appears to have enriched himself and his family in the process — are allegedly being used to benefit Iran while it charges ships crossing the Strait of Hormuz in USDT. Don’t forget, China needs cheap Iranian oil. They buy roughly 90% of Iran’s exports, off the books, at a very steep discount.
And Iran needs dollars without touching SWIFT, the system that regulates global payments. USDT on TRON and BNB Chain solves that perfectly, yet the most ironic thing about all of this is that USDT, which has become Iran’s de facto dollar system, is backed by the U.S. Treasury.
WHAT’S NEXT
Tether, the company behind the USDT stablecoin, holds more than $122 billion in U.S. Treasury bills as its largest reserve asset, making it one of the biggest holders of American government debt in the world.
In other words, U.S. debt, about to cross $40 trillion, is actively supporting Iran’s war effort against America by underwriting one of the most important financial weapons in Tehran’s arsenal.
Downstream Analysis
Positive Impacts
Companies
Sinopec (SNP) — benefits from access to discounted Iranian crude oil, improving refining margins and securing energy supply. PetroChina (PTR) — benefits from access to discounted Iranian crude oil, improving refining margins and securing energy supply. Nobitex — processes billions in trades for sanctioned organizations, significantly increasing its transaction volume and market share within Iran. TRON Foundation — increased usage of its blockchain for illicit transactions boosts network activity and perceived utility, despite regulatory risks.
Industries
Cryptocurrency Exchanges (operating outside strict Western regulatory oversight) — experience increased demand for services from sanctioned entities seeking to bypass traditional financial systems. Blockchain Technology (specifically Tron and BNB Smart Chain) — sees increased transaction volume and adoption, even if for illicit purposes, demonstrating utility for certain use cases. Oil & Gas (Chinese state-owned refiners/importers) — gains access to discounted crude oil from Iran, reducing input costs.
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Countries / Commodities
Iran — gains the ability to bypass international sanctions, fund military supplies, and sell crude oil, supporting its economy and geopolitical objectives. China — secures a supply of discounted Iranian crude oil and facilitates trade with Iran, strengthening its energy security and geopolitical influence. Crude Oil (Iranian) — experiences increased demand from China, ensuring a market for Iran's exports despite sanctions.
Neutral Impacts
Companies
Tether — while USDT usage increases, the association with illicit finance and sanction evasion could bring significant regulatory scrutiny and reputational damage, creating mixed sentiment. Binance — increased usage of its BNB Smart Chain for illicit activities could boost network activity but also exposes it to renewed regulatory pressure and potential legal actions. World Liberty Financial — received a significant investment from Justin Sun, but the long-term impact on its business model and regulatory standing remains uncertain given the context.
Industries
Traditional Financial Services — faces long-term erosion of the SWIFT system's dominance and potential for increased regulatory burden, but the immediate financial impact on major institutions may be limited. U.S. Debt Market — Tether's holdings of U.S. Treasury bills are substantial, but the overall impact on the vast U.S. debt market from this specific use case is likely negligible in the short to medium term.
Countries / Commodities
United States — faces the undermining of its sanctions regime and the funding of adversaries, but the direct economic impact on the broader U.S. economy is complex and not immediately quantifiable as purely positive or negative.
Negative Impacts
Companies
JPMorgan Chase (JPM) — faces long-term erosion of the SWIFT system's dominance and potential for increased regulatory scrutiny on global payment systems due to the rise of crypto alternatives. Bank of America (BAC) — faces long-term erosion of the SWIFT system's dominance and potential for increased regulatory scrutiny on global payment systems due to the rise of crypto alternatives. Delta Air Lines (DAL) — faces potential for increased fuel costs due to geopolitical tensions in the Strait of Hormuz impacting global crude oil prices. Maersk (AMKBY) — faces increased operational risks, insurance costs, and potential disruptions for shipping routes through the Strait of Hormuz due to heightened geopolitical instability.
Industries
Traditional Banking/Financial Services — faces a challenge to the efficacy of established financial monitoring systems (SWIFT) and potential for increased regulatory pressure to counter illicit finance. Global Shipping/Logistics — experiences increased geopolitical risk and potential for higher insurance premiums and operational disruptions in critical energy corridors like the Strait of Hormuz. Aviation — faces potential for higher fuel costs if geopolitical tensions in the Middle East lead to sustained increases in global crude oil prices.
Countries / Commodities
United States — suffers from the undermining of its sanctions regime, the indirect funding of adversaries, and potential for increased geopolitical instability in the Middle East. European Union — similar to the U.S., faces the undermining of its sanctions policies and potential for increased geopolitical instability impacting global trade and energy markets. Crude Oil (global prices) — experiences potential for price volatility and increases due to heightened geopolitical tensions and supply disruption risks in the Strait of Hormuz.
Key Downstream Effects
Immediate Geopolitical Risk Premium on Oil — Increased tensions around the Strait of Hormuz, a critical energy corridor, could lead to an immediate rise in global crude oil prices as markets price in supply disruption risk. Confidence: High. Short-term Increased Scrutiny on Stablecoins and Crypto Exchanges — The revelation of USDT's role in sanction evasion will likely prompt regulators in the US and EU to intensify investigations into stablecoin issuers and crypto exchanges, potentially leading to new compliance requirements or enforcement actions. Confidence: High. Medium-term Erosion of Sanctions Effectiveness and SWIFT Dominance — The successful use of crypto to bypass sanctions by Iran demonstrates a viable alternative to traditional financial systems, potentially weakening the efficacy of future sanctions and the global dominance of SWIFT. Confidence: Medium. Long-term Geopolitical Realignment and Energy Trade Shifts — China's continued reliance on discounted Iranian oil via crypto channels could solidify a parallel financial system, further decoupling parts of global trade from Western-dominated financial infrastructure and influencing long-term energy supply chains. Confidence: Medium. Medium-term Regulatory Pressure on Blockchain Foundations — TRON Foundation and Binance, whose blockchains are used for illicit activities, will likely face renewed and intensified regulatory pressure and potential legal actions, impacting their operations and public perception. Confidence: High.
Economic Indicators
↑ Crude Oil Prices — Geopolitical tensions in the Strait of Hormuz and the ongoing "Iran War" could lead to supply concerns, pushing global crude oil prices higher.
↓ USD Index (DXY) — The successful use of USDT as a de facto dollar system outside traditional channels could, in the long term, slightly erode the USD's global payment dominance.
↑ VIX (Volatility Index) — Increased geopolitical instability in the Middle East and the undermining of global sanctions regimes could lead to higher market uncertainty and volatility.
→ 10-Year Treasury Yield — While Tether holds U.S. Treasury bills, the overall impact on the vast U.S. debt market from this specific use case is likely negligible in the short to medium term.
↓ Global Trade Volume — Increased geopolitical risks, particularly in key shipping lanes like the Strait of Hormuz, could deter international trade and increase shipping costs, leading to a slight decrease in global trade volume.
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- European airlines cancel hundreds of flights
Apr 16, 2026
Igor Marx/500px Plus
Two of Europe’s biggest airlines have cancelled hundreds of flights in response to soaring fuel costs caused by the Iran war.
Lufthansa on Thursday announced plans to shut down its regional airline by the weekend, while Dutch-based carrier KLM axed 160 flights for the coming month.
It came as the head of the International Energy Agency (IEA) warned Europe to brace for a wave of further flight cancellations triggered by jet fuel shortages.
Europe has “maybe 6 weeks or so [of] jet fuel left,” Faith Birol said. Last week European airlines warned shortages could hit in as little as three weeks.
Rachel Reeves said there were “no issues with supply at the moment” in the UK. The Chancellor told the BBC the Government was “monitoring the situation very carefully” but was “confident” of current supplies.
Lufthansa, Germany’s flag carrier and largest airline, said its CityLine division would ground its entire fleet of 27 aircraft. CityLine provides business flights between European airports.
The German airline will also take six planes from its international fleet out of service after the summer holiday season, warning that flight cutbacks could last into winter.
KLM also announced cancellations but said it will affect less than 1pc of its schedule.
Both airlines said the moves had been forced on them after the Middle East conflict sent fuel prices soaring.
European jet fuel prices have risen by more than 120pc since the start of the war, according to the International Air Transport Association.
Till Streichert, Lufthansa’s chief financial officer, said the capacity cuts had become “unavoidable in light of the sharply increased kerosene costs and geopolitical instability.”
Faith Birol, the head of the International Energy Agency (IEA), warned of a wave of further cancellations across Europe as jet fuel supplies run low.
“I can tell you soon we will hear the news that some of the flights from city A to city B might be cancelled as a result of a lack of jet fuel,” he said.
It risks derailing holiday plans for many families hoping to get away this summer.
EasyJet said higher jet fuel prices cost it about £25m last month alone. The Luton-based airline warned of losses of between £540m and £560m for the six months to the end of March.
However, Kenton Jarvis, easyJet’s chief executive, downplayed fears of fuel shortages. He said all the airports it serves were “operating as normal”.
“We only ever in this industry have three to four weeks visibility [of jet fuel supplies], and that is the same as it was pre-crisis,” he said.
“We have visibility to the middle of May, and we have no concerns.”
Story Continues
The European Union is drawing up plans to counter any shortages. The EU imports around 75pc of its jet fuel from the Middle East, making it especially vulnerable.
A British diplomat said they had been briefed on a plan to pool resources and buy jet fuel, which could involve third countries including the UK.
The UK consumes about 13.5 million tonnes of jet fuel annually, of which only about 4 million tonnes are refined domestically.
The rest is imported, and about 40pc came from the Gulf before the Iran conflict started. The UK has since switched to sourcing jet fuel from the US, with record American imports expected this month and next.
A Government spokesman said: “We continue to engage with British airlines to support their operations against the backdrop of war in the Middle East, and to limit the impact on passengers.
“Most airlines purchase their aviation fuel in advance to offset price fluctuations, however we are aware of the impact to businesses, and are working with international allies to see a reopening of the Strait as soon as possible.”
Fuel costs have surged ever since Iran shut off the Strait of Hormuz, the vital trade artery that transports a fifth of the world’s oil and gas supplies.
05:53pm
Signing off...
Thank you for following along with our coverage of the war in Iran and its fallout on the travel sector.
You can keep up to date with the latest here.
05:50pm
US stocks rise to record highs after Israel-Lebanon ceasefire
American blue-chip stocks extended their rise to record highs as investors responded to Donald Trump’s announcement of a 10-day ceasefire between Israel and Lebanon.
The US President wrote on his Truth Social platform that following “excellent conversations” with Lebanese Prime Minister Joseph Auon and Israel’s Prime Minister Bibi Netanyahu, the two leaders had agreed to a pause in fighting.
He later added that both leaders had been invited to the White House for “the first meaningful talks between Israel and Lebanon since 1983”.
The S&P 500 rose 0.4pc, while the Nasdaq gained 0.7pc to reach an all-time high. Technology stocks rallied in the early hours of trading on Thursday after Taiwan Semiconductor CO reported strong revenues, highlighting resilient AI chip demand.
Brent Crude, the international standard, climbed to 3.5pc to $98 a barrel.
04:46pm
Small businesses in US hit with 23pc surge in fuel costs
Small businesses in America spent 23pc more on gasoline in March than they did last year as the Iran war pushed up pump prices, according to analysis by the Bank of America.
The investment bank said pressure was especially pronounced in agriculture and transportation, where higher fuel costs spilled over into freight, fertiliser and inventory expenses. Smaller wholesalers were hit with a 60pc surge in inventory costs, the bank’s analysis showed.
Since Operation Epic Fury began on February 28, freight costs have surged by nearly 50pc for trucks, and up to 17pc for ocean transportation.
It comes days after Iran’s Parliament speaker, Bagher Ghalibaf, warned that fuel costs would continue to rise as a result of Donald Trump’s blockade of the Strait of Hormuz, through which a fifth of the world’s oil previously passed.
“Enjoy the current pump figures. With the so-called ‘blockade’, soon you’ll be nostalgic for $4–$5 gas,” he wrote on social media.
The Bank of America said small business payroll had turned negative for the third consecutive month, suggesting bosses were cutting jobs amid cost uncertainty.
03:50pm
KLM scraps 80 flights due to rising jet fuel costs
KLM has announced that it will operate 80 fewer flights to and from the world’s fifth busiest airport, due to the surging cost of jet fuel.
In a statement, the Dutch airline said it had made the decision to cut some European flights to and from Schipol Airport “were no longer financially viable” as a result of rising kerosene costs. However, the company maintained there was “no shortage of fuel”.
A company spokesman said: “KLM has made a number of adjustments to its flight schedule for the coming month. This concerns a limited number of flights within Europe that, due to rising kerosene costs, are currently no longer financially viable to operate. There is no kerosene shortage.
“KLM will operate 80 fewer return flights to and from Schiphol, which is less than 1pc of its European flights during that period.”
The conflict in Iran has already forced KLM to cancel all flights to and from Dubai until June 14, extending a previous deadline of May 16. The airline said earlier this month that “the current circumstances in the region still bring uncertainties.”
It also briefly suspended flights to Riyadh and Dammam through much of March.
03:07pm
Germany cuts its growth forecasts amid inflation fears
The German government has cut its growth forecasts for 2026 and ​2027 as the EU’s largest economy braces for an energy price shock from the Iran war.
It now expects the economy to grow just 0.5pc this year, down from its previous forecast of 1pc, according to Reuters.
The new government forecasts will be ​published on ⁠April 22.
The downgrade comes as German households and businesses prepare for the soaring energy bills.
The German government is also reported to have raised inflation expectations to 2.7pc in 2026, up from 2.3pc last year, as rising energy costs filter through the economy.
Motorists across Europe are already grappling with soaring petrol and diesel prices.
It comes after the International Monetary ⁠Fund downgraded Germany’s ​growth forecasts for this year, warning of the impact of the war in the Middle East.
The IMF ​expects the German economy to expand by just 0.8pc in 2026, down 0.3 percentage points from its previous forecast.
02:37pm
US markets open higher
New York-listed stocks opened higher on Thursday over renewed diplomatic efforts and hopes that the Iran war will come to an end.
The S&P 500 rose 0.2pc, the Nasdaq climbed 0.2pc and the Dow Jones Industrial Average rose 0.3pc.
Brent crude, the international benchmark, stood at $96.30 a barrel on Thursday.
02:07pm
Lufthansa cuts capacity amid rising fuel costs and strikes
Lufthansa has radically scaled back its fleet capacity as it scrambles to counter rising fuel costs.
The German airline said it would withdraw 27 aircraft belonging ​to its commuter airline CityLine would be withdrawn from service this week as the company grapples with soaring jet fuel prices.
The move to remove the aircraft from service comes as part of a wider package of measures aimed at tackling mounting costs facing the business, Lufthansa said in a statement.
The German airline ⁠is also currently locked in ​a bitter dispute with pilots’ union Vereinigung Cockpit ​over the company pension scheme.
On Thursday pilots began ​a fourth round ​of strikes, ⁠with ⁠a two-day walkout running until Friday.
01:52pm
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01:41pm
Airline stocks decline
Airlines stocks fell on Thursday after easyJet warned that the Iran war had pushed up fuel costs and dented demand from customers.
The conflict in the Middle East has introduced near-term uncertainty around fuel costs and customer demand.
In a six month trading update, Kenton Jarvis, chief executive of easyJet said the company’s performance in the first half of the financial year was “impacted by the conflict in the Middle East”.
Shares in the FTSE 250 airline declined 4.8pc on Thursday afternoon.
Wizz Air, the Hungarian budget airline, also shed 2.7pc. Shares in Ryanair, which is listed in Dublin, declined 4pc.
01:19pm
Fears of flight cancellations grow
Jet fuel prices remain above highs seen in 2022 as fears grow of flight cancellations in the coming weeks.
Since the outbreak of the Iran war jet fuel prices have soared as airlines scramble for supplies. Average jet fuel prices stood at $197 a barrel on Thursday.
In the summer of 2022 jet fuel prices climbed just above $180 a barrel following Russia’s invasion of Ukraine.
Thomas Pugh, chief economist at RSM UK said: “Oil prices might have fallen back, but it’s refined product prices that matter for business and inflation.”
“With jet fuel prices close to record highs, it’s not surprising we are seeing airlines increase fuel surcharges, as well as smaller airlines cancelling routes and it won’t be long before larger ones follow suit, as they have in Asia. That’s demand destruction in action.”
Mr Pugh added that the last tanker of jet fuel to pass through the Strait of Hormuz had arrived in Europe on Saturday,
Britain is understood to be importing more jet fuel from the US. However, it is not enough to fill the gap in supplies.
01:06pm
Trump to blame for UK economic pain, says Labour minister
Donald Trump is to blame for the mounting problems facing Britain’s economy, the Business Secretary has said.
Peter Kyle said Labour had “bust a gut to get growth into our economy” after official figures released on Wednesday revealed that GDP grew by a surprise 0.5pc in February ahead of America’s war in Iran.
However, Britain now faces the biggest economic shock in the G7 from the Middle East conflict, according to the IMF, which has downgraded its UK growth forecast for this year from 1.3pc to 0.8pc.
Asked whether February’s growth was “a painful glimpse” of what could have been, Mr Kyle told Sky News: “It is. So yesterday when you heard that the Chancellor, Rachel Reeves, was expressing frustration, that’s an understatement. I have real frustration because we have bust a gut to get growth into our economy.”
He added: “All of [the] indicators were going in the right direction. Even though we’re now facing challenges to that, because of what’s happening in the Middle East, getting that resilience into the economy is going to stand us in incredibly good stead.
“But of course the fruits of all of that growth that we wanted to be felt in people’s pockets is going to be stressed and challenged. That is the frustration we have and that is the implications of what is happening in the Middle East.”Leon Neal/Pool Getty
12:53pm
World flocks to the US for oil as Trump’s war cuts off Hormuz
Donald Trump prepared for his war with Iran by dispatching what he described as “an armada”, seeking to intimidate the now-deceased ayatollah and his cronies with a floating display of American might.
He might not have expected another armada to return in the opposite direction within weeks of starting his bombing campaign.
Rather than military vessels, this new fleet is formed of supertankers, traversing the Atlantic in search of oil and gas that can no longer be collected from the Persian Gulf.
Iran has closed the Strait of Hormuz, shutting off key suppliers including the liquefied natural gas (LNG) superpower Qatar. Meanwhile, America has blockaded Iranian ports in the region.
12:06pm
Economic growth to ‘slow to a crawl’
Britain’s economic growth is expected to “slow to a crawl” in the coming months, as the impact of the conflict in the Middle East puts pressure on businesses and households.
Ruth Gregory, deputy chief UK economist at Capital Economics, said: “The stronger February out-turn than we expected probably meant that GDP grew by 0.6pc in the first quarter, rather than 0.3pc we previously thought.
“But the leap in energy prices means there is unlikely to be much growth after that. We still think growth will slow to a crawl in the coming quarters.”
Capital Economics has forecast that Britain’s GDP will expand just 0.7pc this year as soaring energy prices weigh on economic activity.
11:53am
Tesco cannot guarantee shoppers will be shielded from food shortages
The boss of Tesco has said he cannot guarantee that shoppers will not experience food shortages this summer.
Ken Murphy, the chief executive of Britain’s biggest supermarket, said it “would be wrong” for him to guarantee that customers will not see supply issues as a result of the situation in the Middle East.
“Can I provide guarantees? Of course, not,” he told The Telegraph.
“Given how quickly the situation globally changes and the volatility of the actors involved in this conflict, I think [it] would be wrong for me to give you any guarantee.PARSONS MEDIA/REUTERS
11:30am
Eurozone inflation rose in March
Inflation in the eurozone rose faster than expected in March as higher energy costs pushed up prices.
The currency bloc reported that CPI inflation climbed to 2.6pc last month, up from 1.9pc in February.
The uptick came as eurozone countries recorded a rapid increase in petrol and diesel prices during March as the Iran war pushed fuel prices higher.
Despite the increase in inflation, hopes that the conflict is nearing an end caused traders to trim their expectations that the ECB will reduce borrowing costs at its next meeting later this month.
Traders are pricing just a 13pc ⁠chance of a rate hike at the ECB’s meeting on April 30.
11:15am
Energy shock will test the UK’s economic resilience
The global energy shock from the Iran war will test the resilience of the UK economy.
Sanjay Raja, chief UK economist at Deutsche Bank, said that February’s GDP figures show that the UK “entered the energy shock on a stronger footing than many expected”.
However, Mr Raja explained that despite the strong growth figures households and businesses are already feeling the impact of the energy price shock.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said the rapid increase in oil and gas prices mean “a growth slowdown is coming”.
However, he added: “The UK economy has proved remarkably resilient to big shocks over the past couple of years.”
10:53am
February’s GDP growth likely to be temporary
Economists have warned that February’s bounce in GDP is likely to be temporary even without the impact of the Iran war.
The UK’s services sector reported growth of 0.5pc as customer facing businesses recovered from uncertainty in the run-up to last year’s Budget.
Cathal Kennedy, from RBC, said: “Having had the immediate threat of tax rises removed, consumers are feeling a little bit more confident about spending in more recent months.”
The production sector grew 0.5pc in February and continued to be boosted by a recovery in car manufacturing which had been impacted by the cyberattack on Jaguar Land Rover last year.
Activity in the construction rose 1pc in February as the industry recovered from a slowdown at the end of 2025.
Sandra Horsfield, from Investec, said: “A number of factors that looked a bit unusually weak in the last few months, are now coming back to a more trend-like level.”
She added that this had led to a “bounceback” that had helped to drive February’s larger-than-expected economic growth.
10:15am
‘Geopolitics may yet kick the chair away’
The UK economy was gaining momentum at the start of the year but “geopolitics may yet kick the chair away”, an economist at PwC has warned.
Barret Kupelian, chief economist at PwC, said that February’s GDP growth was “powered by the private sector rather than the public sector-dominated parts of the economy that had propped up much of the post-2023 picture. That suggested the recovery was becoming broader and more durable.”
He added: “The question now is whether that recovery can withstand a fresh external shock.”
Mr Kupelian explained that many business surveys and indicators had showed that price presure and supply constraints from the Iran war were already being felt by companies.
09:49am
UK to experience a ‘slowdown in growth momentum’, warns Goldman Sachs
The UK economy is expected to grow just 1pc in 2026, warns Goldman Sachs, as rising oil and gas prices dent forecasts.
James Moberely, an economist at Goldman Sachs, said: “The outlook has changed significantly since February given the increase in energy prices, and the early data are consistent with a slowdown in growth momentum.”
The bank expects economic growth to slow in March and warned that high energy costs will weigh on the economy in the months ahead.
However, the strong GDP figures for February caused the bank to increase its GDP forecast for the UK to 1pc in 2026, up from its earlier forecast of 0.6pc.
09:25am
Britain’s economy expands in February
09:13am
February’s GDP figures ‘too good to be true’
An economist from ING has warned the UK’s GDP figures for February are “too good to be true” after they showed the economy unexpectedly grew by 0.5pc.
James Smith, developed markets economist at ING, said the expansion of the economy in February follows a pattern where Britain reports strong GDP growth at the start of the year before it trails off as the months go on.
This means the UK’s economy is expected to slow even in the coming months without the impact of the Iran war.
He added: “It’s consistent with a trend which dates back to 2022, where growth has tended to come in much stronger in the first quarter than over the rest of the year.
“Most of the latest surge, we suspect, is noise.”
08:54am
Businesses grappling with energy price shock
The energy price shock has left British businesses grappling with a fresh rise in costs, sparking fears that many will halt hiring or reduce investment.
Yael Selfin, chief economist at KPMG, said: “Businesses have been hit by a double whammy of higher energy and borrowing costs, with the latter driven by market expectations of rate hikes by the Bank of England later this year.
“Firms are likely to respond by delaying or scaling back investment plans, as well as passing on some of their costs to consumers. This will constrain business investment and likely see household spending slow through 2026.”
08:45am
Hit to economic growth ‘inevitable’
A hit to the UK’s economic growth is inevitable because of the growing energy crisis, economists have warned.
Thomas Pugh, chief economist at RSM UK, said: “It’s inevitable that growth will take a hit over the rest of this year from higher fuel prices, supply chain disruption and lower confidence.”
Anna Leach, chief economist at the Institute of Directors, said: “As the conflict drags on, reports continue to grow of escalating energy costs, paused decision making and concerns over potential shortages of critical inputs.”
It comes as motorists are already grappling with a sharp increase in petrol and diesel prices, while businesses are bracing for disruption to their supply chains.
08:30am
Shares rise in London
The FTSE 100 edged higher on Thursday morning as the UK economy rose by more than expected.
UK stocks made gains at the start of trading after figures from the ONS showed the economy grew 0.5pc in February.
The FTSE 100 added 0.2pc to 10,578.75 while the mid-cap FTSE 250 rose by 0.2pc to 22,704.43.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said: “The UK economy has proved remarkably resilient to big shocks over the past couple of years. Energy prices mean a growth slowdown is coming, but the outlook is improving.”
08:21am
UK ‘uniquely vulnerable’ to impact of the Iran war
Britain’s high energy prices and elevated inflation mean the country is uniquely vulnerable to the impact of the Iran war, economists have warned
Anna Leach, chief economist at the Institute of Directors, said: “As the conflict drags on, reports continue to grow of escalating energy costs, paused decision making and concerns over potential shortages of critical inputs.”
“The UK’s tight financing conditions, high initial starting point for inflation, uncompetitive energy costs and low fiscal space, make us uniquely vulnerable to the situation.”
Sanjay Raja, chief UK economist at Deutsche Bank, said: “Households will have already started to feel the impact of the Iran energy shock, impacting disposable incomes and discretionary spending.”
08:12am
Iran war will cost Britain’s economy, says Rachel Reeves
The Iran war will “come at a cost” to the British economy, Rachel Reeves has said.
The Chancellor insisted she was taking “fair and necessary” measures in response to the conflict, which is likely to significantly hit growth in the coming months.
Responding to Thursday’s data from the Office for National Statistics (ONS), Ms Reeves said: “These growth figures show the Government has the right plan to build a stronger, more resilient economy.
“But the war in Iran will come at a cost. That is why we are taking the right, fair and necessary action to protect families and businesses.”
08:05am
Britain facing ‘meagre’ economic growth
The UK is on track to record “meagre” economic growth in 2026 as concerns grow about the impact of the energy shock from the Iran war.
Matt Swannell, chief economic adviser to the ITEM Club, said: “Growth looks set to be meagre this year as the UK economy feels the ripple effects of the conflict in the Middle East.
“Consumers’ real incomes will be sharply squeezed by a combination of rising inflation, slowing pay growth, and rising unemployment.”
He added that supply chain disruption and rising costs will cause businesses to delay or halt any investment plans.
08:01am
Trump to blame for UK’s economic woes, says Peter Kyle
A Cabinet minister has appeared to blame Donald Trump for the woes facing the British economy in the months ahead.
Peter Kyle, the Business Secretary, was asked whether news that the British economy had grown by 0.5pc in February was “a painful glimpse” of what could have been before the US president’s war in Iran.
Mr Kyle told Sky News: “It is. So yesterday when you heard that the Chancellor, Rachel Reeves, was expressing frustration, that’s an understatement. I have real frustration because we have bust a gut to get growth into our economy.”
He added: “All of [the] indicators were going in the right direction. Even though we’re now facing challenges to that, because of what’s happening in the Middle East, getting that resilience into the economy is going to stand us in incredibly good stead.
“But of course the fruits of all of that growth that we wanted to be felt in people’s pockets is going to be stressed and challenged. That is the frustration we have and that is the implications of what is happening in the Middle East.”
07:57am
Production sector growth boosts GDP
The UK’s production sector expanded by 1.2pc in February, helping to boost GDP.
Continued growth in car manufacturing contributed to the rise in production activity during the month.
It comes as Britain’s manufacturing sector continues to recover from last year’s cyber attack on Jaguar Land Rover, which halted production at the site.
The services sector also boosted economic growth in February as output rose 0.5pc.
Grant Fitzner, chief economist at the ONS, said: “Within services, growth was driven by wholesaling, market research, hospitality, and publishing, which all performed well in the three months to February. Meanwhile car production recovered from the effects of the autumn cyber incident.
07:46am
Economic growth now ‘in the rear view mirror’
Unexpected economic growth ahead of the Iran war is now “in the rear view mirror”, Rachel Reeves has been warned.
GDP rose 0.5pc in February, according to the Office for National Statistics, outperforming expectations from economists of 0.1pc growth.
However, the US-Israeli war with Iran only started on Feb 28 and the conflict is expected to have highly damaging consequences for the British and global economies in the coming months.
Daisy Cooper, the Liberal Democrats’ Treasury spokesman, said: “These positive growth figures are already in the rear view mirror as the UK is driven into a precarious economic crisis precipitated by Trump’s idiotic war in Iran.
“The road to economic recovery was always going to be a marathon after two anti-growth Labour budgets and a decade of Conservative failure. Now it seems the country was barely able to get started on its journey to economic stability.
07:42am
Labour ‘unprepared’ for energy shock, says Sir Mel Stride
The Conservatives accused Labour of being “totally unprepared” for the energy shock caused by the war in Iran despite the UK economy growing unexpectedly before the conflict.
Sir Mel Stride, the shadow chancellor, urged Rachel Reeves to change course as he responded to GDP rising by 0.5pc in February.
Sir Mel said: “Any economic growth is welcome, but the IMF were clear this week that under Labour our economy is totally unprepared for the recent energy shock. They have cut their growth forecasts for the UK more than any G7 nation.
“Rachel Reeves should stop asking other countries to follow her disastrous ‘plan’. Her choices have left us poorer, with soaring unemployment and the highest inflation in the G7. We need an urgent change of direction, cutting the benefits bill and drilling in the North Sea to deliver a stronger economy.”
07:35am
Growth to slow in the coming months, economists warn
Economists have warned that Britain’s economy will slow in the coming months as the energy price shock is expected to dent business confidence and consumer spending.
Yael Selfin, chief economist at KPMG, said: “The adverse impacts of the energy shock will start becoming apparent in the March data, with weaker performance expected at the end of the first quarter.”
Forecasts of slowing growth come after the UK economy expanded by 0.5pc in February.
Martin Beck, chief economist at WPI Strategy, said: “Higher oil prices, tighter financial conditions, supply chain disruption and a renewed hit to confidence are all consistent with the risk of a slowdown, or outright shrinkage, in the economy later this year.”
07:29am
Fears of stagflation mount
Economists have warned that Britain could be facing a stagflationary shock in the coming months amid concerns that the Iran war will weigh on the economy and push up prices for consumers.
Suren Thiru, chief economist of the ICAEW, said: “Even if a peace deal is reached soon, a severe spell of stagflation looks locked in with surging energy costs expected to trigger sizeable falls in investment and consumer spending, likely leaving growth weaker than many – including the IMF – expect.”
Worries about a fresh bout of inflation come as fuel prices have risen sharply since the beginning of the Iran war.
Fergus Jimenez-England, associate economist from the National Institute of Economic and Social Research, said: “Even if conflict in the Middle East were to resolve quickly, the UK is heading for a year of stagflation.”
07:16am
Iran war will put pressure on Britain’s economy
The impact of the Iran war and energy price shock will dent economic growth in the UK, economists have warned.
Energy prices have jumped sharply since the beginning of the conflict, sparking concerns about a fresh bout of inflation and the impact on the UK economy.
Economists are worried the energy price shock will feed through into rising prices for consumers or cause workers to demand higher wages and lead to a wage-price spiral.
Fergus Jimenez-England, associate economist from the National Institute of Economic and Social Research, said: “Unfortunately, the latest energy price shock has likely pulled the rug on this momentum, with another year of above-target inflation and a softening labour market likely to come.”
07:09am
Britain’s economy expands
The UK economy grew 0.5pc in February ahead of the Iran war, according to figures from the Office for National Statistics.
Although GDP grew in the run up to of February, the figures showed the economy had expanded by just 0.3pc in the three months to January.
Grant Fitzner, the chief economist at the ONS, said: “Growth in services and production was partially offset by another fall in construction.”
06:55am
Good morning
Thanks for joining me.
5 things to start your day
1) Britain’s biggest pub chain sells more than 100 sites | Slug and Lettuce owners to scale back estate after increased debt pile and borrowing costs
2) Don’t be fooled, Labour’s defence spending plans are a ruse | Ministers are resorting to desperate measures to boost the military’s budget
3) Labour’s promised housebuilding boom is a bust | Failure to deliver risks not only a shortage of homes but also Starmer’s growth ambitions
4) Mike Lynch’s widow targeted as HP hunts £900m in damages | US tech giant asks High Court to appoint administrators to investigate late tycoon’s family
5) Family tax bills rise £4k under Reeves | Households bear the fastest tax increases in the world... yet defence is still underfunded
06:45am
What happened overnight
Renewed hopes of an end to the war between the US and Iran calmed investors and sent American stocks to record highs.
The US and Iran are mulling a two-week extension to the current ceasefire, to allow them to negotiate a peace deal, Bloomberg reported on Wednesday.
The news spurred US stocks to extend record gains, having erased this week all losses inflicted by the Iran war.
The S&P rose 0.8pc to close above 7,000, its first record since late January, bolstered by gains in technology and consumer discretionary sectors.
The Nasdaq 100, which has been on its longest run of gains since 2019, climbed 1.4pc to reach a record high for the first time since October.
It has been a stark turnaround for American blue-chip stocks, which slumped by 9pc after the war’s outbreak triggered a sell-off.
However, optimism that an end to the conflict is in sight led investors to pile into US stocks.
Oil prices remained inflated, with Brent crude, the international benchmark, were trading at around $95 a barrel on Thursday morning.
Gold prices fell by 1pc to $4,792.30 per ounce, and silver also declined by 0.6pc to $79.24 per ounce.
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- Trump Hints at War’s End as Hormuz Standoff Chokes Oil Flows
Apr 15, 2026
(Bloomberg) -- US President Donald Trump played down the prospect of renewed fighting in the war with Iran, even as questions remain over Tehran’s nuclear program and access to the Strait of Hormuz.
Speaking to ABC News on Tuesday, Trump said extending a ceasefire that expires next week may not be necessary, hinting at near-term progress toward a deal to end the near seven-week conflict. In a Fox Business interview, he said the war is “close to over.”
An initial round of peace talks between the two sides ended in Pakistan on Sunday without a deal. A second meeting hasn’t been agreed, though work has been ongoing this week to secure a new time and place, according to people familiar with the matter, who asked not to be identified discussing private deliberations.
Talks might restart “over the next two days,” Trump told the New York Post, which would mean by Thursday.
Trump’s upbeat assessment of the prospects for diplomacy boosted market sentiment, with stocks steadying on Wednesday after several major indexes erased declines since the war began in February. Oil prices remain elevated, with Brent crude trading at $95.60 barrel, about 33% higher than before the start of the war.
Trump has vacillated throughout the war between declaring it all but over and threatening a major escalation, and many questions remain about the issues that drove the US and Israel to start their bombardment of the Islamic Republic.
Chief among those is the future of Iran’s nuclear program. Israel maintains Tehran’s stockpile of highly enriched uranium must be removed, while Trump told the New York Post he’s unhappy about reports that the US proposed a two-decade moratorium on enrichment as part of the Pakistan talks, saying Iran can never be allowed to have nuclear weapons.
The whereabouts of Iran’s uranium has been unknown since the US and Israel bombed the country’s nuclear facilities in June, and International Atomic Energy Agency inspectors have been barred access since then. Iran has always said it isn’t pursuing a weapons program.
A second issue is the standoff over the Strait of Hormuz, the critical waterway through which about a fifth of the world’s oil and liquefied natural gas was shipped before the war. Iran has kept the chokepoint closed to all but its own crude since the start of the fighting, triggering a global supply crisis, and has said it wants to maintain control even after the conflict is over.
The US began a naval blockade of Hormuz on Monday to curb the Islamic Republic’s oil exports, and US Centcom has said it’s been fully implemented since going into effect.
Story Continues
The navy has been impeding traffic outside the strait in the Gulf of Oman and appears to have forced some carriers, including the US-sanctioned Rich Starry, to make a U-turn back toward the Persian Gulf. An Iraq-bound supertanker sailed through the waterway on its second attempt, making it the first crude carrier to head west through the conduit since the US blockade began.
Iranian authorities were on Tuesday considering a pause in shipments through Hormuz to avoid testing the US blockade and jeopardizing fresh negotiations, according to a person familiar with Tehran’s deliberations, who asked not to be identified as the talks are private.
Even so, an Iranian supertanker sailed through the strait into Iranian waters despite the blockade, Iran’s semi-official Fars news agency reported, without identifying the vessel. The passage wasn’t confirmed by the US.
The US is using more than a dozen vessels to enforce the blockade. They include the USS Tripoli amphibious assault ship, accompanied by F-35 jets and Marine vessels for boarding operations, as well as the USS Canberra littoral combat ship that could help clear sea mines.
The Trump administration will allow a waiver that temporarily authorizes the purchase of certain Iranian crude oil to expire this weekend, the Treasury Department said. A similar waiver for Russian crude, part of efforts to ease global energy shocks from the war, lapsed last week.
China’s CSI 300 Index became the latest gauge to recoup losses since the conflict started on Feb. 28, joining Taiwan and Singapore. Wall Street benchmarks have already reclaimed those levels, with the S&P 500 closing in on its record high set in late January.
While crude oil has come off wartime highs, US gasoline and diesel prices remain at their highest seasonal levels ever, a pain point for consumers ahead of summer travel.
Iran’s missile attacks have caused extensive damage to Gulf energy infrastructure and the Hormuz closure has disrupted oil and gas supplies beyond the region, issues that could take some time to iron out.
That’s triggered fears of a global inflation crisis. Surging prices of products such as jet fuel and gasoline are already squeezing consumers, the International Energy Agency said Tuesday, pointing toward the first annual decline in global oil demand since 2020.
Fighting has largely paused since the truce was announced on April 7, except in Lebanon, where Israel continues operations against Iran-backed Hezbollah. Talks between Israel and Lebanon began Tuesday in Washington to address the parallel conflict, which has killed more than 2,000 people, according to Lebanese authorities.
Israel’s spy chief pledged more covert efforts to try to topple Iran’s government, suggesting the countries’ conflict will continue even if the US agrees to a peace deal. “Our mission has yet to be completed,” David Barnea, the head of Mossad, said in a speech.
Trump told ABC News that, while an official peace agreement may not be necessary, “I think a deal is preferable because then they can rebuild.”
“They really do have a different regime now. No matter what, we took out the radicals,” he said.
Several senior Iranian leaders, including Supreme Leader Ali Khamenei, have been killed in US-Israeli strikes. There’s no indication Khamenei’s son and successor, Mojtaba Khamenei, represents a different kind of leadership.
(Updates with market prices in fifth paragraph.)
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- Trump’s Iran Deadline Looms With Mediators Pushing for Truce
Apr 6, 2026
(Bloomberg) -- US allies are reportedly pressing for a last-minute deal with Iran, as President Donald Trump extended his deadline to Tuesday for Tehran to reopen the Strait of Hormuz, keeping markets on edge over whether a breakthrough can be reached.
Axios reported that Pakistan, Egypt and Turkey are pushing to secure a potential ceasefire — lasting about 45 days — to head off threatened US strikes on Iran’s energy infrastructure and retaliation by the Islamic Republic against countries in the region.
Fighting continued, with Israel, Kuwait and the United Arab Emirates reporting Iranian attacks overnight into Monday. Israel struck Iran’s biggest petrochemical facility, which is responsible for 50% of the petrochemical production in the country, Defense Minister Israel Katz said.
In an expletive-laced post on Sunday, Trump threatened to destroy Iran’s power plants and blow up “everything over there,” before announcing what appeared to be a new Tuesday 8 p.m. deadline, without offering details. The move adds to a series of extensions since he began issuing similar ultimatums on March 21 to force Iran to reopen the strategic waterway.
The repeated delays come as Trump points to ongoing negotiations between his envoys and Iran’s leadership, which he has yet to identify, aimed at ending the war triggered by US and Israeli attacks in late February.
Iran’s Foreign Ministry Spokesman Esmail Baghaei acknowledged the exchange of messages with the US, but reiterated Tehran is seeking a definitive end to the war instead of a mere pause, according to Shargh newspaper. Cited by state TV Baghaei said agreeing to a short-term detente with no guarantees that the cycle won’t be repeated is something “no rational person would do.”
The fighting has left thousands dead, most of them in Iran and Lebanon, and brought vessel traffic through Hormuz — through which about a fifth of the world’s oil and liquefied natural gas exports normally flow — to a near standstill.
Signs of last-ditch efforts to secure a ceasefire helped investors cautiously return to equities, with S&P 500 futures adding 0.3% in thin trading after the Easter holiday and crude oil declining. Many European markets are closed.
Tehran continued striking energy targets in Persian Gulf neighbors, including Kuwait’s oil headquarters and a major petrochemicals plant in Abu Dhabi over the weekend. The UAE issued multiple alerts overnight, while Kuwait said its air defenses intercepted missile and drone attacks.
The Israel Defense Forces said Iran launched four waves of missiles since midnight, with emergency services saying they recovered two bodies from a home struck earlier in Haifa.
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Majid Khademi, the head of the Islamic Revolutionary Guard Corps’ Intelligence Organization, was killed in a US-Israeli strike, Iran’s semi-official Fars news agency said.
Fifteen ships have passed through the Strait of Hormuz with Iran’s permission in the past 24 hours, the semi-official Fars news agency reported, adding that’s still about 90% lower than before the start of the conflict. It didn’t elaborate on the ownership or destination of the vessels.
Two tankers carrying Qatari liquefied natural gas appear to have abandoned an effort to exit the Persian Gulf through the Strait of Hormuz — delaying what would have been the first exports to buyers outside of the region since the war started.
Oil prices rose following Trump’s latest ultimatum, but have since turned negative, with Brent trading at about $108 a barrel at 12:13 p.m. in London. The global benchmark is up by around 50% since the beginning of the conflict.
In the US, average national retail gasoline prices have topped $4 a gallon for the first time since 2022. Crossing that critical psychological threshold brings political risk to the Trump administration and Republicans, as consumers grow increasingly concerned over the cost of living ahead of November’s midterms.
Trump said he plans a news conference at 1 p.m. on Monday.
But it won’t be easy for any side to end the conflict. Both the US and Iran have rejected each other’s demands, while Israel has made clear it wants to inflict further damage to Tehran’s military capabilities.
If negotiations were to result in a “very dramatic delay” in Iran’s nuclear program and the removal of the enriched uranium “then of course those would be good outcomes,” Israeli security cabinet minister Zeev Elkin told Kan radio on Monday. “But it doesn’t look like the Iranians are there.”
Israel assesses that Iran still has more than 1,000 missiles capable of reaching its territory, while Hezbollah’s arsenal in Lebanon includes as many as 10,000 shorter-range rockets, according to military briefings cited by Israeli media over the weekend. The Israeli military is waging a parallel war in Lebanon against Iran-aligned Hezbollah.
More than 5,000 people have been killed in the conflict, almost three-quarters of them in Iran, according to government organizations and the US-based Human Rights Activists News Agency. More than 1,400 people have been killed in Lebanon, and dozens of others died across Gulf Arab states and in Israel.
The US over the weekend rescued an airman from Iran in an operation that involved dozens of aircraft over a mountainous area in the Islamic Republic.
The mission followed the downing of a US military aircraft and spanned two days, involving hundreds of special operations troops, with US aircraft dropping bombs and firing on Iranian convoys to keep them away from the aviator’s hiding area, the New York Times reported.
House Intelligence Chairman Rick Crawford, an Arkansas Republican, said on Fox News’ Sunday Morning Futures that the US sustained no casualties but destroyed “a couple” of aircraft on the ground in Iran to prevent them from falling into enemy hands.
The downing of US aircraft pierced the aura of invincibility Trump has sought to project.
Oil prices have been disrupted by the conflict and soaring costs for products such as jet fuel and diesel are threatening a renewed wave of inflation. OPEC+ members raised their production quotas for May, in a symbolic move as the war constrains output and shipments from several of the alliance’s largest members.
Saudi Arabia raised the price of its main oil grade to Asia to a record high premium, seeking a spread of $19.50 over regional benchmarks for refiners in Asia.
Iran announced Saturday that Iraq would be exempt from its shipping restrictions in the strait, allowing for as much as 3 million barrels a day of Iraqi oil cargoes. An Iraqi official struck a cautious note, saying volumes would depend on whether shipping companies are willing to risk entering the strait.
The Suezmax Ocean Thunder, an oil tanker that loaded its cargo at Iraq’s Basrah terminal in early March, exited the strait en route to Malaysia, according to tanker-tracking data compiled by Bloomberg. Such vessels can carry about 1 million barrels of crude.
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- Morgan Stanley’s Wilson Says S&P 500 Correction Nears End Stage
Mar 30, 2026
(Bloomberg) — The S&P 500 correction is nearing its final stage even as the Iran war continues, according to strategists at Morgan Stanley, who warn that Federal Reserve interest-rate hikes still pose a threat to stocks.
There is growing evidence that the equities slide “is getting closer to its ending stages,” the team led by Michael Wilson said, citing the example of previous “growth scares” that were not accompanied by a recession or rate hike.
The strategists note that over half of Russell 3000 stocks are down more than 20% from their 52-week highs. The S&P 500 forward price to earnings ratio has also dropped over 15%, suggesting that market pricing increasingly reflects risks posed by the Middle East war.
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“We think the equity market is less complacent on growth risks than consensus believes,” the strategists said in a note Monday.
The S&P 500 has dropped 8.4% since Jan. 27. Stocks have been hit by fears over artificial intelligence and the war, which has effectively closed the Strait of Hormuz and severed a crucial route for global energy supplies. Brent crude reached $116.89 a barrel on Monday as additional US troops arrived in the Middle East and Iran-backed Houthi militants in Yemen entered the conflict.
The Morgan Stanley team said that markets have so far priced in higher energy costs. The increase in oil prices, compared to the prior year, is roughly half that of previous periods when an oil shock ended the business cycle, they argued. Positive earnings growth will also help protect against recession.
“The market is saying the cumulative probability of the paths to resuming tanker flow in the Strait are much higher than the recession probability, and we agree,” the team wrote.
READ: Fed Officials Voice Growing Concern Over Fallout from Iran War
Still, interest-rate hikes are a near-term risk for US stocks, according to the strategists. The sensitivity of equities to rates is close to the highest level of the past several years, they said. The 10-year Treasury yield is also closing in on 4.5%, a level which historically pressures stock valuations. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy
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“Whether the move in yields today is being driven by inflation considerations, a more hawkish Fed or by deficit considerations from the war or both, we think it’s an important risk variable to consider,” the strategists said.
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- Oil climbs, stocks fall as markets see no end to war
Mar 27, 2026
US President Donald Trump's decision to again delay his deadline for strikes on Iran's energy assets failed to reassure markets (SPENCER PLATT)·SPENCER PLATT/GETTY IMAGES NORTH AMERICA/Getty Images via AFP
Oil prices rose and stocks fell Friday as the United States and Israel struck Iranian nuclear sites, denting optimism over potential talks to end nearly a month of war in the Middle East.
US President Donald Trump has extended a deadline for Tehran to open the Strait of Hormuz or face the destruction of its energy grid, pushing it from Friday to April 6.
But with Iran maintaining a hold on the strait and intense hostilities continuing, Trump's announcement failed to lift the mood on markets.
Oil prices climbed, with the Brent international benchmark rising 4.2 percent to $112.57 while the US benchmark contract, WTI, jumped 5.5 percent to $99.64.
Wall Street stocks fell sharply across the board, with the the S&P 500 ending the week lower for the fifth straight week, its longest such run in four years.
European and Asian stock markets also ended the day mostly lower.
The market reaction Friday contrasted sharply with the plunge in oil prices and gains for stocks at the beginning of the week after Trump first delayed his Hormuz deadline.
"Trump appears to be losing his grip on the markets," said Forex.com analyst Fawad Razaqzada.
"Investors no longer seem to take his statements at face value -- if anything, they're beginning to trade against them, waiting for tangible proof before reacting," he said.
Kathleen Brooks, research director at XTB, said: "Investors are facing the facts: the Strait of Hormuz is effectively closed and it does not appear that there is a real end in sight to the war."
Angelo Kourkafas, investment strategist at Edward Jones, said investors were concerned that sharply higher oil prices would have a significant impact on inflation and economic growth.
"There are concerns about the lingering uncertainty," Kourkafas said. "And as we have broken some technical levels, I would say that is triggering some more selling."
Trump has insisted that Iran wants to make a deal to end the war, despite Tehran denying his statements. US and Israeli strikes have continued, as has Iran's retaliation against across the Gulf.
"The simple fact is that sentiment is likely to stay negative for as long as the Strait of Hormuz remains unsafe for shipping and controlled by Iran," said David Morrison, an analyst at Trade Nation.
Adding to market woes, China on Friday opened an investigation into US trade practices in response to Washington's probes this month of Chinese exports.
Tokyo's stock market closed lower, while Hong Kong and Shanghai edged up.
Story Continues
Investor doubts about the chance of a peace deal came as governments around the world looked to shore up their economies against surging energy costs, which are adding to inflationary pressures.
Vietnam temporarily waived an environmental levy on fuel to cut petrol prices by more than a quarter, India said it had lowered fuel taxes, and Japan is looking to temporarily lift restrictions on coal-fired power plants in a bid to ease an energy crunch.
- Key figures at around 2015 GMT -
Brent North Sea Crude: UP 4.2 percent at $112.57 a barrel
West Texas Intermediate: UP 5.5 percent at $99.64 a barrel
New York - Dow: DOWN 1.7 percent at 45,166.64 points (close)
New York - S&P 500: DOWN 1.7 percent at 6,368.85 (close)
New York - Nasdaq Composite: DOWN 2.2 percent at 20,948.36 (close)
London - FTSE 100: DOWN less than 0.1 percent at 9,701.95 (close)
Paris - CAC 40: DOWN 0.9 percent at 7,701.95 (close)
Frankfurt - DAX: DOWN 1.4 percent at 22,300.75 (close)
Tokyo - Nikkei 225: DOWN 0.4 percent at 53,373.07 (close)
Hong Kong - Hang Seng Index: UP 0.4 percent at 24,951.88 (close)
Shanghai - Composite: UP 0.6 percent at 3,913.72 (close)
Euro/dollar: DOWN at $1.1517 from $1.1523 on Thursday
Pound/dollar: DOWN at $1.3272 from $1.3313
Dollar/yen: UP at 160.2 yen from 159.83 yen
Euro/pound: UP at 86.78 pence from 86.55 pence
burs-aha/js
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- SNP Schneider-Neureither & Partner SE (SNPPF) Q4 2025 Earnings Call Transcript
Mar 27, 2026 · seekingalpha.com
SNP Schneider-Neureither & Partner SE (SNPPF) Q4 2025 Earnings Call Transcript
- The Stock Market Sounds an Alarm as an Economist Issues a Recession Warning. History Says This Could Happen Next.
Mar 19, 2026
The S&P 500(SNPINDEX: ^GSPC) has dropped 3% from its high in 2026 over concerns about elevated valuations and economic headwinds created by President Trump's tariffs. Last year, the U.S. economy recorded its slowest gross domestic product and jobs growth since the pandemic as businesses navigated an uncertain trade environment.
More recently, investors have turned their attention to geopolitical tensions in the Middle East. The U.S.-Iran war has driven Brent crude oil prices (an international benchmark) above $100 per barrel for the first time since 2022. And Moody's chief economist Mark Zandi says the situation could push the U.S. economy into a recession.
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The stock market sounds an alarm last seen during the dot-com crash
Federal Reserve officials voiced concerns about rich valuations at the January meeting. "The staff judged that asset valuation pressures were elevated. Price-to-earnings ratios for public equities stood at the upper end of their historical distribution," according to the meeting minutes.
Indeed, the S&P 500 recorded a cyclically adjusted price-to-earnings (CAPE) ratio of 39.2 in February, one of its most expensive valuations in history. In fact, excluding the last few months, the index has not attained a monthly CAPE multiple above 39 since the dot-com crash in 2000.
Rich valuations are always concerning, but the current situation is especially worrisome because surging oil prices could amplify headwinds created by President Trump's tariffs, potentially dragging the S&P 500 into a correction or bear market, while also pushing the U.S. economy into a recession.
Wall Street strategists weigh in on surging oil prices
Last week, JPMorgan Chase strategists Kriti Gupta and Joe Seydl wrote, "A sustained oil price as high as $90 per barrel would likely catalyze a 10% to 15% decline in the S&P 500." They also outlined a domino effect where every 10% drop in the U.S. stock market could reduce consumer spending by 1%, magnifying the oil shock's impact on the economy.
Similarly, Goldman Sachs strategists recently warned that severe disruptions to global oil supplies could drag the S&P 500 down to 5,400 in 2026. That prediction represents a 22% decline from its January peak of 6,979, meaning the benchmark index would enter a bear market.
Story Continues
This week, Moody's chief economist Mark Zandi warned that rising oil prices could push the economy into a recession. He referenced a machine learning model that put the odds of a recession in the next 12 months at 49% before the Iranian conflict. In the past, a recession has followed every incident where the model in question gave a reading above 50%.
"It isn't a stretch to expect the indicator to cross the key 50% threshold amid the Iranian conflict and the resulting surge in oil prices," Zandi explained on social media. "If oil prices remain elevated for much longer (weeks not months), a recession will be difficult to avoid."
History says the S&P 500 could drop sharply in a recession
The following chart shows the peak-to-trough decline in the S&P 500 during every recession since the index was created in March 1957.
Recession Start Date S&P 500's Peak-to-Trough Decline August 1957 (21%) April 1960 (14%) December 1969 (36%) November 1973 (48%) January 1980 (17%) July 1981 (27%) July 1990 (20%) March 2001 (37%) December 2007 (57%) February 2020 (34%) Average (32%)
Data source: Truist Advisory Services.
As shown, the S&P 500 has declined by an average of 32% during recessions, meaning the index has typically dropped into a bear market. So, assuming Moody's chief economist Mark Zandi is correct about rising oil prices pushing the economy toward a recession, investors should mentally prepare for challenging times.
Importantly, that is not a recommendation to sell every stock in your portfolio. First, there is no guarantee the economy will actually suffer a recession. Second, attempting to time the market often backfires.
Instead, the most prudent course of action is to ensure your portfolio consists only of high-conviction stocks you would feel comfortable holding through a steep drawdown. Now is also a good time to build a cash position. Doing so will allow you to capitalize on any buying opportunities that arise if the stock market falls sharply in the coming months.
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The Stock Market Sounds an Alarm as an Economist Issues a Recession Warning. History Says This Could Happen Next. was originally published by The Motley Fool
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- SEG Announced 2025 Annual Results Initiating First Special Dividend Distribution Payout Ratio Reached 88% Newly Signed Orders Exceeded RMB100-Billion Mark for the Second Consecutive Year
Mar 15, 2026
HONG KONG, HK / ACCESS Newswire / March 15, 2026 / SINOPEC Engineering (Group) Co., Ltd. ("SEG" or the "Company", together with its subsidiaries collectively known as the "Group") (stock code: 2386) today announced its annual results for the twelve months ended 31 December 2025 (the "Reporting Period").
In 2025, facing the challenges of profound shifts in the global energy landscape and intensifying industry competition, the Group consistently prioritized high-quality development as the overarching principle. We have advanced international operations with greater openness, driven technological innovation with unwavering determination, and rewarded shareholder trust with pragmatic measures-delivering a solid annual performance.
In 2025, the Company achieved operating revenue of RMB70.074 billion and net profit of RMB1.807 billion. The Board consistently adheres to the core principle of "investor-centricity," sharing the fruits of high-quality development with all shareholders through a high dividend policy. A final dividend for 2025 of RMB0.104 per share is proposed, representing a base dividend payout ratio of 65% for the full year. To further demonstrate unwavering confidence in long-term development and safeguard shareholder returns, the Company initiated our first special dividend distribution, proposing an additional special dividend of RMB0.094 per share, resulting in a total distribution of RMB0.198 per share with the final dividend on a combined basis. Including the interim dividend already paid, the total dividend per share for the whole year amounts to RMB0.358, representing an effective payout ratio of 88%, maintaining the same dividend per share as last year.
Operational quality and efficiency were steadily improved, while development resilience continues being strengthened.
Market scale maintained steady growth. New orders signed throughout the year reached RMB101.248 billion, remaining above the RMB100 billion mark for the second consecutive year, which demonstrates a positive trend of "steadily increasing total volume, continuously optimized structure, and accelerated expansion into front-end business segments." International operations improved in both quality and speed, establishing a diversified and balanced layout where Sinopec markets, non-Sinopec markets and international markets each account for one-third of the portfolio, significantly enhancing risk resilience. Breakthroughs were achieved in high-end business segments. The high-level front-end engineering advantage was further consolidated, with the successful signing of landmark overseas front-end projects such as the FEED+ convertible EPC contract for the Saudi ACWA large-scale green hydrogen project. All five engineering subsidiaries achieved their first overseas front-end business contracts within the year, comprehensively enhancing source competitiveness. Comprehensive strengths have become more apparent. The unique competitive advantage of "Global Rules + Chinese Efficiency" has been fully demonstrated, with our integrated engineering service capabilities earning high recognition from global clients. Currently, front-end and EPC contracts account for over 80% of our order backlog, and the order structure continues to optimize, effectively stimulating the continuous optimization of the revenue structure, demonstrating strong operational resilience in intense market competition and achieving both qualitative enhancement and reasonable quantitative growth.
Story Continues
Technological innovation capabilities remain at the forefront, driving significant progress in new industrialization.
Steady progress in technology-driven value creation. Throughout the year, technology development and licensing contracts totaling RMB1.013 billion were signed, demonstrating a steady enhancement in the direct efficiency-generating capacity of technology. The innovation ecosystem has expanded comprehensively. Adhering to the principles of "open cooperation and integrated innovation", we deepened industry-academia-research integration with top research institutes and universities, and collaborated with overseas clients and partners to promote the global deployment of our leading technologies. We successfully hosted the 12th World Congress of Chemical Engineering SubForum 12 on "Process Industry Innovation and Process System Engineering Reinvention", gathering nearly 200 global experts, scholars, corporate representatives, and industry elites in the chemical engineering eld for exchange of insights. Accelerating implementation of digital and intelligent transformation. The "Guidelines for Comprehensively Advancing the Company's Leadership in the New Industrialization of the Engineering Construction Industry" were released, yielding replicable and scalable outcomes in intelligent design, machine-based manufacturing, and digital delivery, etc. The engineering construction model is accelerating its transformation and upgrading toward "standardized lean design + factory-based intelligent manufacturing + modular installation". AI applications moved into practical implementation: On the design side, knowledge graphs and generative design significantly boosted efficiency; on the management side, the intelligent supply chain management system for the entire lifecycle advanced in tandem with smart construction site development; on the construction side, intelligent equipment like trackless crawler welders and multi-axis welding robots saw widespread adoption.
Corporate governance continues improving, and the quality of the Company steadily increases.
The governance system is standardized and efficient. The convert of China National Petroleum Corporation's domestic shares to the H shares on the public market was successfully completed, further optimizing our equity structure and governance framework. A comprehensive amendment to the Articles of Association was smoothly completed, with the Audit Committee of the Board fully assuming the functions of the Supervisory Committee. Industrial layout has been expanded. Sinopec (Guangdong) Environmental Technology Co., Ltd. was established as a specialized environmental governance platform, contributing to the protection of clear waters, blue skies, and clean soil. The acquisition of equity in East China Pipeline Design and Research Institute was completed, further enhancing comprehensive design capabilities in pipeline storage and transportation. ESG performance remains leading. Deepened SINOPEC's social responsibility brand building by continuing the "Immersive Public Safety Experience and Emergency Science Outreach Program," demonstrating state-owned enterprise responsibility. Maintained the industry's highest AA-level ESG rating from Wind Information and received the "China Listed Companies ESG Annual Best Practice Award" for two consecutive years.
Mr. JIANG Dejun, Chairman of SEG, said: "The Company has now completed the drafting of the "15th Five-Year Development Plan Outline," which has been reviewed and approved by the Board. Seven major development strategies have been made: value-oriented, innovation-driven, cost-leadership, digital & smart empowerment, green & clean, globally development, and integration symbiosis. Research has been completed on eight key initiatives: development indicator system, domestic market expansion, international operations, construction business transformation, technological innovation, green low-carbon and energy conservation, digital-physical integration, and smart manufacturing. By 2030, the Company is expected to embody the fundamental characteristics of a world-class technology-driven engineering enterprise, evolving into an engineering group distinguished by robust technological capabilities, exceptional management expertise, integrated synergistic development, effective risk prevention and control, and will significantly enhance our overall value. The Company endeavors to achieve its long-term goal of main business revenue exceeding RMB100 billion by 2035, with overseas business revenue consistently accounting for over one-third of total revenue, significantly enhancing the international competitiveness of core technologies, and maintaining a leading brand influence among international engineering companies.In 2026, the Group will implement the Board's strategic decisions by focusing on advancing initiatives such as: strengthening strategic guidance and integrated coordination; continuously promoting innovation-driven development, lean management, digital & smart empowerment, and green low-carbon practices; providing high-level support for the transformation and upgrading of the energy and chemical industries; setting high standards for leading the new industrialization of the engineering construction sector; advancing the internationalization of engineering construction enterprise operations with high quality and efficiency; and achieving diversified value creation for the listed company with high efficiency. These efforts will enable the Group to take more solid strides toward "Building a world-leading technology-driven engineering company".
Business Review and Highlights
QHSE performance remained sound.
During the Reporting Period, the Group was executing 1,888 projects, with an average daily personnel of about 120,000 on site. As at the end of the Reporting Period, the accumulated safety manhours reached 359 million, and no major safety, quality or environmental incidents occurred.
During the Reporting Period, the Group fully carried out the demonstration construction of safety standardized work teams, continued to promote the certification of team leaders and three types of key personnel from subcontractors, and achieved full coverage of training for strategic subcontractors. Focusing on key links such as design, verification and engineering changes, the Group launched special quality improvement initiatives to effectively reduce HSE risks at the source. It actively promoted the construction of smart construction sites and promoted the application of advanced technologies and equipment including intelligent violation identification systems and electronic fences. The Operation Supervision Platform of "Divisional Work & Sub-divisional Work with Higher Risk" was launched to implement three-level control and full-process information-based dynamic supervision. A problem database was established to strengthen closed-loop risk management. The Group deepened its "comprehensive health" management, carried out the "Health Management Year" campaign, and established an employee health consultation and service platform. Centering on the four goals of carbon reduction, pollution abatement, efficiency improvement and green enhancement, the Group launched the second phase of the Green Enterprise Initiative, implemented energy conservation and emission reduction measures from the design stage, fully adopted green construction, and continuously enhanced its sustainable development capacity.
Market development achieved robust growth on both volume and quality
During the Reporting Period, the value of new contracts signed by the Group was RMB101.248 billion. Among which, the value of newly signed domestic contracts was approximately RMB63.248 billion, and the value of newly signed overseas contracts was approximately USD5.429 billion.
In the domestic market, the Group deeply engaged with strategic clients, strengthened integrated promotion efforts, and continuously expanded market share through comprehensive solutions. While enhancing our core advantages in traditional businesses, we continuously expand business into new technologies, new materials, new energy and other emerging sectors. During the Reporting Period, the representative newly signed domestic contracts included the EPC contract for the Sinopec Maoming Ethylene Project with a total contract value of approximately RMB11.821 billion; the EPC contract for Sinopec Luoyang Million-ton Ethylene Project (the "Luoyang Ethylene Project") with a total contract value of approximately RMB6.553 billion; the EPC contract for the demonstration project of coal-grading clean and efficient transformation of 15 Million-ton per year by Shaanmei Yulin Chemical (the "Shaan Coal Yulin Coal Chemical Project") with a total contract value of approximately RMB2.772 billion; and the EPC contract for the MTO and olefin separation unit of China Energy Shenhua Baotou Coal-to-Olefin Upgrading Demonstration Project (the "Shenhua Baotou MTO") with a total contract value of approximately RMB2.367 billion.
During the Reporting Period, the Group signed 348 new contracts in the emerging business sector with a new contract value of approximately RMB11.0 billion. Among which, 40 contracts were from the clean energy and new energy fields, with a new contract value of approximately RMB1.8 billion; 308 contracts were from new materials, new technologies, energy conservation, environmental protection and other emerging fields, with a new contract value of approximately RMB9.2 billion.
In the overseas market, the Group accelerated the development of a more diversified, balanced and resilient global market network, and strengthened strategic cooperation with international peers and enhanced high-level mutual visits, promotions and communications with strategic clients. During the Reporting Period, the representative newly signed overseas contracts included the EPC contract for the Algerian Hassi Refinery Project with a contract value of approximately USD2.058 billion; the EPC contract for the polyethylene and utilities project of the Silleno Petrochemical Complex Project in Kazakhstan (the "Kazakhstan Silleno PE & UIO Project") with a contract value of approximately USD1.902 billion; the EPC contract of Haradh GOSP-3 oil and gas separation and stimulation project of Saudi Aramco (the "Saudi Haradh Project") with a contract value of approximately USD707 million; and the EPCC contract of the Arzew Refinery Reformation Project in Oran, Algeria (the "Arzew Refinery Project") with a contract value of approximately USD433 million.
In regards to its front end business, the Group entered into contracts, including a FEED + convertible EPC contract for the ACWA Green Hydrogen Green Ammonia Project in Yasref, Saudi Arabia; a FEED + convertible EPC contract for the UAE NGL Project; the NKNK Ethylbenzene Styrene technology transfer and process package design; the Kazakhstan sulfuric acid foundation design; the feasibility study of Vietnam biomass gasification to jet fuel project; the engineering design for the Sinopec Hunan Petrochemical Yueyang 1 Million-ton per year ethylene refining and chemical integration project (the "Yueyang Ethylene Project"); the engineering design for the Sinopec Qilu Petrochemical local oil refinery transformation and upgrading technology conversion project (the "Qilu Upgrade Project"); and the engineering design for Shenhua Yulin Circular Economy Coal Comprehensive Utilization Project (the "Shenhua Yulin Coal Chemical Project"), and shall continue to move towards the front end of the industrial chain and the high end of the value chain.
During the Reporting Period, the Group's major projects under implementation were as follows:
North Huajin United Petrochemical Fine Chemical and Raw Material Engineering Project (the "Aramco Huajin Project") (EPC): the project has been mechanically completed and entered the final stage.
SINOPEC SABIC Petrochemical Fujian Gulei Ethylene and Downstream Deep Processing Consortium Project (EPC): the project was in the final stage of construction and installation with an overall progress of over 90%.
Maoming Ethylene Project (EPC): the engineering design had entered the final stage and the construction had entered the installation stage, with the overall progress of nearly 50%.
Luoyang Ethylene Project (EPC): the ethylene unit of the project is in the stage of basic design, and the auxiliary refining unit is in the stage of construction and installation, with an overall progress of nearly 30%.
Lianhong Gerun (Shandong) Integrated Project of New Energy Materials and Biodegradable Materials (EPC): the project has been completed and delivered, and has entered feeding and commissioning.
China Coal Yulin Coal Deep Processing Base Project (EPC): the engineering design had entered the final stage and the construction had entered the installation stage, with the overall progress of nearly 50%.
Shenhua Baotou MTO (EPC): the project is in the stage of detailed design and civil works commenced, with an overall progress of over 30%.
Packages P1 and P2 of Riyas NGL Project of Saudi Aramco (EPC): the design work of the project has entered the final stage, and the construction work was in the peak stage of installation, with an overall progress of over 60%.
Tank Farm and Integration Project with SATORP Refinery under Saudi AMIRAL Project (EPC): the design of the project entered the final stage, the construction has entered the peak of installation, with the overall progress of over 60%.
Jafurah Gas Expansion Project Phase III of Saudi Aramco (EPC): design and procurement peak. The construction work has started with an overall progress of over 40%.
Crude Oil Pumping Station Upgrading and Improvement Project of Saudi Aramco (EPC): the project was substantially completed, with an overall progress of over 90%.
Kazakhstan Silleno Project: (1) the ethane cracking (ECU) project (EPC) is currently in the stage of design and procurement, construction work has been initiated with an overall progress of over 40%. (2) the polyolefin and utilities (PE & UIO) project (EPC) has commenced the design and procurement stage, with an overall progress of over 10%.
Algerian Hassi Refinery Project (EPC): the project is currently in the peak of design and procurement, and construction entered preparation stage, with an overall progress of over 20%.
Algerian LNG/MTBE (EPCC) Project: the design and procurement of the project was substantially completed, and the project is in the peak of construction with an overall progress of over 80%.
Saudi Haradh Project (EPC): the design and procurement of the project has commenced, with an overall progress of over 10%.
UAE NGL Project (FEED): the overall design work of the project is completed, and has entered into the EPC contract tender evaluation process.
Yasref Green Hydrogen Project (FEED) of Saudi Arabia: with an overall design work progress of the project of over 30%.
Note: "FEED" refers to front end engineering design contracting; "EPC" refers to engineering, procurement and construction contracting; "BEPC" refers to basic design + EPC; "EPCC" refers to EPC and commissioning contracting; and "C" refers to construction contracting.
Continuous progress in technology innovation
During the Reporting Period, the Group continuously expanded open cooperation. The Group has entered into 3 strategic cooperation agreements with China General Nuclear Power Corporation, Sinopec Qingdao Research Institute of Safety Engineering Co., Ltd., and Guangdong University of Technology, and has organized technical exchanges with 20 scientific academies including relevant institutes of the Chinese Academy of Sciences, Tsinghua University, Beijing University of Chemical Technology, and other universities, and deepened cooperation in areas such as carbonyl synthesis, PEEK, new types of electrolyzer, green chemistry, energy conservation and carbon emission reduction, and CCUS. We also explored technology development and collaboration with companies such as NEXANT, SABIC, ADNOC, SOCAR and TR, so as to advance the global reach of our advantageous technologies. We successfully hosted the 12th World Congress of Chemical Engineering and the 21st Asian Pacific Confederation of Chemical Engineering Congress, Sub Forum 12 on "Process Industry Innovation and Process Systems Engineering Reengineering". The meeting focused on topics such as intelligent manufacturing, digital enablement, and green and low carbon development, attracting nearly 200 global experts, scholars, corporate representatives, and industry leaders for joint exploration of new paths for technological innovation and high quality growth in the industry.
During the Reporting Period, the Group has received a total of 37 awards for scientific and technological progress at the provincial/ministerial level and above.
During the Reporting Period, the Group's major achievements in technological innovation included: (1) The key technology development and demonstration project of Maoming Vinyl Elastomers successfully produced qualified products. The unit has been calibrated at full load, with all indicators exceeding design specifications. (2) The first feeding and commissioning of the complete set of technology for reactor-made polypropylene alloys in Zhenhai was successfully completed. (3) The development and application of the complete set of deoiled asphalt gasification technology has achieved all designed targets. (4) The whole process of the development and demonstration project of the complete set of technology for PBST degradable material industrialization at Hainan Refinery was successfully completed, producing qualified products. (5) The succinic acid plant in Qingdao, which adopts the maleic anhydride hydrogenation process, has successfully produced qualified succinic anhydride products, and the unit is operating stably.
During the Reporting Period, the Group signed 309 new technology development contracts of various types with a total contract value of RMB532 million, and 138 new technology licensing and technology transformation contracts with a total contract value of RMB481 million.
During the Reporting Period, the Group filed 762 new patent applications, of which 583 applications; and 307 newly licensed patents, of which 174 patents. As at the end of the Reporting Period, the Group had 4,580 valid patents, 2,440 of which were invention patents.
Leading new industrialization in the engineering and construction industry
The Group systematically advanced innovation in engineering construction models. It actively promoted the application of advanced technologies and equipment, steadily improved on the traditional construction methods, and achieved a transformation from conventional models to a model of "standardized lean design, factory based manufacturing, and modular installation". This transformation has established a new pathway to industrialization, defined by the distinctive characteristics of engineering construction.
Strengthening integration synergy across the entire industry chain. We have deepened our integrated capabilities across collaborative design, supply chain management, constructability studies, and project interface management. We have reinforced the standardization of business processes across the value chain, enhanced data interconnectivity, and advanced AI-enabled applications of tool chains. We have optimized the collaborative working mechanisms within engineering construction integration, enabling us to deliver better value-added services to customers throughout the entire project life cycle.
(1) On the design side, the Group developed a knowledge graph to enhance efficiency, explored generative design transformation, and conducted intelligent research in 13 key areas, including ethylene devices and HAZOP safety. Professional models were established for intelligent review, process safety analysis, structural design, and other applications. Significant progress was achieved in plant-wide process optimization, intelligent drawing review, and 3D model verification. (2) On the management side, the Group leveraged on digital technologies to strengthen supply chain collaboration and established an intelligent supply chain management system covering the entire project lifecycle. It coordinated the development of a unified platform of operation management, project management, and construction management, reinforced the "data + platform + application" model, and advanced the development of standardized smart construction sites. (3) On the application side, the Group promoted research into domestic industrial software, including piping, physical property libraries, and process simulation, while deepening the application of 3D design software in civil engineering and equipment.
Further enhance the empowerment capability of digital intelligence. We are vigorously advancing technology research and development as well as intelligent assembly, with a focus on the research and development, promotion and application of special technology in modular intelligent manufacturing, factory-style prefabrication production lines, digital simulation of lifting and transportation, and intelligent equipment. By transforming the production organization model through "machine OEM," we have accelerated the R&D of intelligent equipment and the construction of smart production workshops.
During the Reporting Period, the Group compiled a list of 86 high-efficiency construction equipment applications and published the Application Guide for Intelligent Equipment, covering scenarios such as welding, commissioning, inspection, supply chain management, and green manufacturing. The assembly test of the Qingdao intelligent pipeline prefabrication production line was completed, and the application rate of automatic welding for process pipelines rose to 26%. Railless crawling welding machines and nine-axis/six-axis pipeline welding robots were widely deployed, achieving a first-pass success rate of 99.8%. Pilot initiatives included full-process robotic operations of anti-corrosion inside tanks, intelligent inspection robot dogs, and safety monitoring systems. New energy construction machinery, such as electric forklifts and aerial work platforms, was also promoted. The Group completed the overall design of the 14,000-ton ring-rail crane, expanded the application of AI in scheme optimization and construction scheduling, and launched the "smart lifting" platform to strengthen digital simulation capabilities for lifting and transportation.
Propelling intelligent production, operation, and maintenance. The Group expanded the scope and depth of digital factory delivery, steadily advancing high-quality digital delivery across full volume and all elements. A "digital twin" intelligent O&M platform was established, integrating dynamic operational data with mechanism models to enable remote diagnosis, predictive maintenance, and process optimization. We accelerated the development of remote technical support centers and a remote intelligent support service platform for replicable applications. At the same time, the Group advanced research on digital twins and remote intelligent O&M, while planning for a comprehensive intelligent O&M platform system. These initiatives continuously enhance intelligent O&M service capabilities across the entire equipment lifecycle, creating high value-added operational assurance for customers.
Business Outlook
The market development targets of the Group for 2026 are: newly signed contract amount of RMB55 billion in domestic market and USD5 billion in overseas market, with particular emphasis on the following tasks at the same time:
Step up market development efforts.
We will firmly move toward the front end of the engineering service value chain, focusing on enhancing high-end services such as consulting, FEED and detailed design, as well as procurement capabilities, to add more technological value to engineering services. In the domestic market, we will continue to consolidate our core businesses in petrochemicals, coal chemical industry, natural gas and storage & transportation. We will expand into new sectors including green hydrogen, green ammonia, green alcohol, wind, solar and nuclear power; strengthen new materials businesses such as electronic chemicals, high-performance engineering plastics and carbon fiber composites; advance the development of bio-jet fuel, bio-based chemicals, and sulfur, phosphorus and synthetic ammonia industrial chains; and expand the scale of environmental governance, energy conservation and carbon reduction, circular economy and safety technology services. In overseas markets, we will deepen our presence in competitive regions such as the Middle East, Central Asia and North Africa, explore emerging markets, and build a diversified and balanced global footprint. Building on our traditional strengths in the petrochemical industry, we will accelerate expansion into new sectors such as new energy and low-carbon engineering.
Step up project management and control.
We will strengthen planning at the project inception stage and improve the dynamic monitoring mechanism for full life cycle operational risks. We will enhance whole-process project control to continuously improve performance capability and profitability. We will strive for better QHSE performance to consolidate the foundation for safe, environmentally friendly and green operations. We will upgrade the application of artificial intelligence, increase investment in design optimization and on-site project management, and vigorously promote the application of automatic welding, welding robots and other equipment, empowering project management efficiency and capacity with digital and intelligent technologies.
Step up collaborative innovation.
We will fully integrate innovation resources, deepen cooperation with research institutes, universities and enterprises, and expand the supply of high-quality technologies. We will leverage our integrated strengths in R&D, design, manufacturing and construction. Focusing on engineering technology innovation and achievement transformation, we will coordinate the advancement of the R&D and manufacturing of new processes, patented and proprietary equipment, and continuously improve the Company's profitability. We will ensure the implementation, commissioning, demonstration and iteration of major scientific and technological projects, and keep strengthening technological reserves. We will step up the application and brand promotion of competitive technologies, push for the global adoption of our technologies and standards, lead and create markets with technological strengths, and steadily enhance our industrial influence.
Comprehensively enhance risk prevention and control capabilities.
We will strengthen risk management and further promote the integration of the internal control system with compliance and risk management systems. We will intensify project risk prevention and control, advance risk management to the project's earlier stage, strictly control project approval, prudently promote project decision-making, and implement closed-loop management of risk response. We will enforce boundary control and rigid constraints on key financial indicators, dynamically monitor the financial status of key projects, accurately identify and provide timely alert against various financial risks, and ensure that risks related to funds, exchange rates and taxation are generally stable, safe and controllable, so as to prevent and defuse various external risks.
Summary of Financial Data and Indicators Prepared in Accordance with International Financial Reporting Standards ("IFRS")
Unit: RMB'000 Items As at 31 December 2025 As at 31 December 2024 Changes from the end of 2024 (%) Total assets 91,217,852 81,513,339 11.9 Total equity attributable to equity holders of the Company 31,741,999 31,512,063 0.7 Net assets per share attributable to equity holders of the Company (RMB) 7.22 7.17 0.7
Unit: RMB'000 For the twelve months ended 31 December Changes over the same period of 2024 (%) Items 2025 2024 Revenue 70,074,081 64,198,210 9.2 Gross profit 5,177,326 5,336,500 (3.0 ) Operating profit 1,279,115 1,715,213 (25.4 ) Profit before taxation 2,242,167 2,851,913 (21.4 ) Net profit attributable to equity holders of the Company 1,797,681 2,465,727 (27.1 ) Basic earnings per share (RMB) 0.41 0.56 (27.1 ) Net cash flow (used in)/generated from operating activities 8,186,346 (2,210,914 ) - Net cash flow (used in)/generated from operating activities per share (RMB) 1.86 (0.50 ) -
For the twelve months ended 31 December Items 2025 2024 Gross profit margin (%) 7.4 8.3 Net profit margin (%) 2.6 3.9 Return on assets (%) 2.1 3.0 Return on equity (%) 5.7 7.8 Return on invested capital (%) 5.8 7.9
Items As at 31 December 2025 As at 31 December 2024 Asset-liability ratio (%) 65.1 61.3
~ End ~
This press release is issued by PRChina Limited on behalf of SINOPEC Engineering (Group) Co., Ltd.
About SINOPEC Engineering (Group) Co., Ltd.
The Group is a comprehensive service provider covering the entire energy and chemical industry value chain and full project lifecycles. With over 70 years of history, it operates across multiple industrial sectors, including petroleum rening, petrochemical, aromatics, new coal chemical, inorganic chemical, pharmaceutical chemical, clean energy, storage and transportation facility, as well as environmental protection and energy conservation. The Group is committed to providing global clients with full industry chain services, including engineering R&D, technical consulting, technology licensing, engineering consulting, engineering design, project management, financing and EPC (engineering, procurement and construction) contracting. Its services also cover material procurement, equipment manufacturing, construction and installation, large-scale equipment lifting and transportation, pre-commissioning and commission services as well as operation and maintenance. The Group has delivered, on schedule, hundreds of modern chemical plants featuring large investment scales, complex processes, advanced technologies and high-quality standards for clients in more than 30 countries and regions. Over the years, it has built extensive and stable client relationships and earned significant industrial influence and social recognition.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that the Group expects or anticipates will or may occur in the future (including but not limited to projections, targets, other estimates and business plans) are forward-looking statements. The Group's actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond the Group's control. In addition, the Group makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor and Media Enquiries:
SINOPEC Engineering (Group) Co., Ltd.
Office of the Board
Tel: (86) 10 5673 0525
Email: seg.ir@sinopec.com
PRChina Limited
David Shiu / Jin Liu
Tel: (852) 2522 1838 / (852) 2522 1368
Fax: (852) 2521 9955
Email: seg@prchina.com.hk
SOURCE: SINOPEC Engineering (Group) Co., Ltd.
View the original press release on ACCESS Newswire
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