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Yahoo
10 hours ago
- Business
- Yahoo
Two Tankers Catch Fire, Ships Hailed as Hormuz Fears Grow
(Bloomberg) -- Two giant ocean-going tankers collided and caught fire and two other ships were approached by Iranian boats near the Strait of Hormuz energy chokepoint, rattling global oil and shipping markets already on high alert. Security Concerns Hit Some of the World's 'Most Livable Cities' As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space As American Architects Gather in Boston, Retrofits Are All the Rage How E-Scooters Conquered (Most of) Europe Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown The Front Eagle, an 1,100-foot (335-meter) supertanker known as a very large crude carrier, and a smaller vessel called the Adalynn, crashed into each other off the coast of the United Arab Emirates at 00:15 local time on Tuesday, Frontline Plc, the owner of the first vessel said by email. The incident was 'navigational' and 'unrelated to the current regional conflict,' it said. Separately, two vessels were hailed by Iranian small craft near the vital waterway in the last 36 hours, the Joint Maritime Information Center said in a daily update. 'Though not out of the ordinary, it remains noteworthy during regional tensions,' according to the Bahrain-based naval coalition that seeks to keep commercial shipping safe in and around the Persian Gulf. Shipping through Hormuz is under intense scrutiny because the waterway is the conduit for millions of barrels of Middle East oil every day, and Iran has previously threatened to close it in times of conflict. There's no sign of that so far, but traders are still watching carefully for any signs of disruption. Forward freight agreements — derivatives that traders use to bet on or hedge shipping costs — rallied after the earlier collision, according to two people who follow those prices. They were between 70 and 74 industry standard Worldscale points on Tuesday, up from between 65 and 70 points a day earlier. The derivatives had slumped during Monday's trading session after a report that Iran was seeking to de-escalate the conflict. Israel's airstrikes, which started Friday and have continued since, sent oil tanker rates from the Middle East surging more than 50%. While there's been no direct intervention from the Persian Gulf country, the JMIC warned on Tuesday of persistently high levels of electronic interference. Such activity pressures crews to step up visual lookouts and use more traditional systems like physical navigation maps, several owners said. UK-based maritime security agency Vanguard Tech said in an alert seen by Bloomberg that there was no initial indication of 'foul play' regarding the collision, with fires contained and crews reported safe. According to a social media post from UAE's national guard, 24 crew members on the Adalynn were rescued. Frontline confirmed its crew was safe as well. Still, news of the collision caught the attention of shippers and oil traders in morning trading in Asia and the Middle East as such incidents are very rare in Hormuz. Front Eagle appeared to have been affected by signal jamming on June 15 and 16 as it sailed past the Iranian port of Assaluyeh, according to ship-tracking data, although that wasn't close to the crash site. The supertanker was headed to China, from Iraq's Basra oil terminal, according to vessel tracking data compiled by Bloomberg. The 23-year-old Adalynn sails under the Antigua and Barbuda flag, and its insurer data are not on industry databases. It has been frequently sighted plowing the route between Russia's Ust-Luga, in the Baltic Sea, and Vadinar on India's west coast. Front Eagle is a 2020-built tanker sailing under the Liberian flag. Emails sent to Oceanpack Ship Management, the listed owner of Adalynn, went unanswered. Ship-tracking data reviewed by Bloomberg shows the tankers were seen sailing near each other off the Gulf of Oman, with their paths eventually crossing. The waters off the UAE's Khor Fakkan and Hormuz are very congested, as they serve as a gateway to important crude oil and fuel suppliers within the region, including Saudi Arabia, Iraq, Iran and Abu Dhabi. --With assistance from Yongchang Chin and Verity Ratcliffe. (Updates with latest JMIC report from the first paragraph.) Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software US Allies and Adversaries Are Dodging Trump's Tariff Threats ©2025 Bloomberg L.P. Sign in to access your portfolio
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Business Standard
13 hours ago
- Business Standard
Explained: How a tanker crash near Strait of Hormuz impacts oil and India
Two tankers caught fire after a collision in the early hours of June 17, 2025, near the Strait of Hormuz, one of the world's most critical energy trade routes, raising alarm in oil and shipping markets already on edge. The incident, reported by Bloomberg, involved the Adalynn, sailing under the Antigua and Barbuda flag, and the Front Eagle, a Liberian-flagged vessel owned by Frontline Plc. The crash occurred 24 nautical miles east of Khor Fakkan, UAE. Satellite images confirmed the fire, but all 24 crew members aboard the Adalynn were safely rescued, according to the UAE's National Guard. No foul play, but timing sparks concern While both vessels caught fire, maritime security firms Vanguard Tech and Ambrey ruled out any hostile action. 'No foul play is suspected,' Vanguard stated, though investigations are still underway. Initial reports triggered brief panic across Asian and Middle Eastern trading desks, with speculation about a link to the ongoing Israel-Iran conflict. Though analysts later clarified it was a navigational mishap, the sensitive location and tense geopolitical backdrop stoked fears. Ambrey initially issued a 'war risk/sighting' alert but downgraded it to 'situational awareness' shortly thereafter. Frontline Plc said a full probe would follow, stressing the incident was not tied to regional military activity. Adding to the confusion, Front Eagle had experienced GPS jamming near Iran's Assaluyeh days before the accident. While jamming has become more common amid rising tensions, experts confirmed that the crash occurred far from that interference zone. Why is the Strait of Hormuz so critical? The Strait of Hormuz is a narrow, 33-kilometre-wide maritime chokepoint between Oman and Iran. Despite its size, it facilitates over 20 per cent of the world's oil supply and nearly a fifth of all global LNG shipments, primarily from Qatar. In 2024, average daily oil flows through the strait stood at 20 million barrels — about a quarter of all seaborne oil trade. Saudi Arabia accounted for the largest share, exporting 5.5 million barrels per day through Hormuz, or 38 per cent of its total traffic, according to Vortexa data. With only three-kilometre-wide shipping lanes in each direction, the strait is extremely vulnerable to disruptions. Any blockage, whether intentional or accidental, can raise global oil prices, spike shipping costs, and slow critical supply chains. What this means for India's oil security India imports over 85 per cent of its crude oil and more than half its LNG from Gulf countries, making it heavily reliant on uninterrupted traffic through the Strait of Hormuz. In 2024, Qatar alone met 80 per cent of India's LNG requirements. A disruption could affect as much as 40 per cent of India's crude intake, risking inflationary pressure and economic slowdown. A $10 increase in oil prices could widen India's current account deficit by 0.55 per cent of GDP and push inflation up by around 0.3 per cent, economists estimate. Beyond oil, Hormuz is also crucial for India's exports to Gulf nations. Even temporary instability raises freight and marine insurance costs, hurting the competitiveness of Indian goods. To safeguard its interests, India continues naval deployments like Operation Sankalp to escort vessels and enhance maritime safety. Israel-Iran tensions fuel fears of maritime fallout With Israel and Iran trading direct drone and missile strikes since last week, fears are growing over a potential escalation at sea. Iran has previously threatened to block the Strait of Hormuz during times of conflict. Although the recent fire appears unrelated to hostilities, the regional context cannot be ignored. Historically, flare-ups in this zone have spurred oil price surges and rerouting of cargo vessels. Insurance premiums often rise sharply, adding to trade and logistics costs. For major importers like India, China, Japan, and South Korea, even perceived instability in Hormuz translates to real economic impact.
Yahoo
23-05-2025
- Business
- Yahoo
Frontline CEO Says Tanker Industry 'Maintains Business As Usual' Amid Uncertainty
Frontline Plc (NYSE:FRO) shares are trading higher on Friday. The company reported revenue of $427.9 million, surpassing the $264.2 million consensus. Adjusted EPS declined to 18 cents from 62 cents a year ago, missing the consensus of 23 cents. The company's reported spot time charter equivalent earnings (TCEs) for VLCCs, Suezmax tankers, and LR2/Aframax tankers were $37,200 (vs. $48,100 last year), $31,200 (vs. $45,800 last year) and $22,300 (vs. $54,300 prior year) per day. At the close of the first quarter of 2025, contracted ballast days totaled 887 for VLCCs, 306 for Suezmax tankers, and 216 for LR2/Aframax of March 31, 2025, the company owned a fleet of 81 vessels, including 41 VLCCs, 22 Suezmax tankers, and 18 LR2/Aframax tankers, with a total capacity of approximately 17.8 million DWT. Net operating income for the quarter declined to $93.2 million from $251.3 million a year ago. Operating cash flow was $137.9 million in the first quarter, compared to $171.3 million in the same quarter a year ago. The company held cash and cash equivalents of $436.5 million at the end of the quarter. The Board declared a $0.18 per share dividend for the first quarter, payable on or about June 24, 2025, with a record date of June 12, 2025. Lars H. Barstad, CEO of Frontline Management AS, said, 'The first quarter of 2025 came in line with the previous quarter, somewhat muted relative to the economic and political backdrop during the period. In times of uncertainty, it's comforting to operate in an industry that maintains business as usual, transporting oil and products around the world at a steady pace.' 'Utilization on the larger ships has improved during the quarter and with continued pressure and enforcement on sanctioned trades, we have seen healthy developments in activity across the segments that Frontline deploys.' 'Fleet growth remains slow, and ordering has again stalled, continuing to support the long-term fundamental story for tankers, where Frontline is ideally positioned with its cost-focused business model and spot-exposed, modern fleet,' Barstad added. Inger M. Klemp, CFO of Frontline Management AS, said, 'Through our refinancings in 2025, we have further strengthened our strong liquidity, leaving the company with no meaningful debt maturities until 2030, and further reduced our borrowing costs and cash breakeven rates.' Frontline expects spot TCEs for the second quarter of 2025 to be lower than the spot TCEs currently contracted, primarily due to the impact of ballast days. Investors can gain exposure to the stock via SonicShares Global Shipping ETF (NYSE:BOAT). Price Action: FRO shares are trading higher by 3.90% to $17.85 at last check Friday. Read Next:Photo by Faraways via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? FRONTLINE (FRO): Free Stock Analysis Report This article Frontline CEO Says Tanker Industry 'Maintains Business As Usual' Amid Uncertainty originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-04-2025
- Business
- Yahoo
Why Frontline Plc (FRO) Went Up On Monday?
We recently published a list of . In this article, we are going to take a look at where Frontline Plc (NYSE:FRO) stands against other AI stocks that dominate Monday's top performers. The stock market finished mixed on Monday as investors remained cautious over the escalating trade tensions globally, with President Donald Trump threatening to slap China with another 50-percent tariff if the latter does not withdraw a countermeasure. The Dow Jones declined by 0.91 percent, while the S&P 500 dropped by 0.23 percent. In contrast, the tech-heavy Nasdaq inched up by 0.10 percent. Meanwhile, 10 companies, predominantly in the Artificial Intelligence sector, bucked an overall market pessimism, posting strong gains during the day. In this article, we have identified Monday's top performers and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume. A fleet of oil tankers sailing across the open sea under a clear sky. Frontline Plc saw its share prices jump by 11.38 percent on Monday to end at $14.29 apiece as investors hunted for bargains following three straight days of losses. FRO, a leading shipping firm of crude oil and refined products, recently earned a 'strong buy' rating from Zacks Research. 'An upward trend in earnings estimates—one of the most powerful forces impacting stock prices—has triggered this rating change,' the research firm said. For the fiscal year ending December 2025, Zacks Research expects FRO to earn $2.23 per share. The figure, if realized, would represent a 25.3-percent increase year-on-year. On Monday, FRO said that it successfully filed its annual report for 2024. In full-year 2024, net income dropped by 24.5 percent to $495.58 million from $656 million a year earlier, while revenues increased by 13.76 percent to $2.16 billion from $1.8 billion year-on-year. In the fourth quarter alone, net income declined by 43.65 percent to $66.7 million from $118.37 million, while revenues grew by 6.86 percent to $443.49 million from $415 million. Overall, FRO ranks 4th on our list of AI stocks that dominate Monday's top performers. While we acknowledge the potential of FRO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FRO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Bloomberg
05-02-2025
- Business
- Bloomberg
Tanker Stocks Surge on Trump's Pledge to Tighten Curbs on Iran
Shipping stocks received a lift as US President Donald Trump's plans to squeeze Iran raised the specter of tighter tanker supply, further boosting a market that's been squeezed by sanctions against Russia. Among gainers, US-listed Teekay Tankers Ltd. surged more than 6% on Tuesday before ending 4.9% higher, while Scorpio Tankers Inc. was up about 4%. Frontline Plc, which is listed in the US and Europe, also rallied, and in Asia, Tokyo-listed Mistui OSK Lines Ltd. rose on Wednesday.
