Red Sea Unrest Revives Djibouti Ports

Doraleh Port is designated to receive containers and has witnessed a revival due to the disturbances in the Red Sea (Photo by Turki Al-Aguili)
Doraleh Port is designated to receive containers and has witnessed a revival due to the disturbances in the Red Sea (Photo by Turki Al-Aguili)
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Red Sea Unrest Revives Djibouti Ports

Doraleh Port is designated to receive containers and has witnessed a revival due to the disturbances in the Red Sea (Photo by Turki Al-Aguili)
Doraleh Port is designated to receive containers and has witnessed a revival due to the disturbances in the Red Sea (Photo by Turki Al-Aguili)

The unrest in the Bab al-Mandab region, the Red Sea, and the Gulf of Aden has contributed to the recovery of container handling operations in Djiboutian ports in recent months, according to Djiboutian officials.

Container handling at Doraleh Port, Djibouti's largest port, increased by up to 10% compared to the previous months, officials told Asharq Al-Awsat.

Houthi attacks on commercial ships in the Red Sea caused a sharp rise in marine shipping insurance, with fees imposed to cover risks associated with conflicts.

Since November 2023, the Iranian-backed Houthis have been carrying out attacks on commercial ships in the Red Sea that they suspect are linked to Israel or heading to its ports.

They say that this comes in support of the Gaza Strip, which has been witnessing a war since Oct. 7, 2023.

Washington and London have also launched joint military strikes on Houthi positions inside Yemen several times since last Jan. 12.

Advisor of the CEO of Operations at Doraleh Port Ismail Hasan told Asharq Al-Awsat that the port served more than 100,000 containers with an average of 60-70 ships of various sizes last January, and it can receive the largest ships in the world.

All international shipping and navigation companies are in Doraliya Port, serving over 60 ports worldwide.

Last January, the port witnessed an increase in handling by a rate of 5-10% compared to previous months.

During Asharq Al-Awsat's visit to Doraleh Port, the Chinese ship Zhong An Xin Huayuan was anchoring for the first time, according to Hasan.

He explained that the tensions in the Red Sea led new shipping companies to enter as new clients of the Djiboutian ports.

Djibouti has about five specialized ports, including Doraleh Port, and others for various goods, commodities, and iron, some of which are dedicated to energy.

Several Chinese shipping lines have been redeploying their vessels to serve the Red Sea and the Suez Canal in what analysts have said is an effort to exploit China's perceived immunity from the Houthi attacks that have driven most other operators out of the area, according to the Financial Times.

The newspaper said two vessels were listed on the website of Qingdao-based Transfar Shipping, which describes itself as "an emerging player in the transpacific market" as part of its fleet list.

However, Transfar said on Friday that it had stopped operating the ships in February 2023 and needed to know which company was using them now.

The report stated that the move of Chinese lines to the Red Sea comes after most big container shipping lines — including China's Cosco, operator of the industry's fourth-biggest fleet —abandoned the southern Red Sea because of the security risks.

According to Hasan, Djibouti seeks to become a global hub that serves most of the markets, extending from China in the east through the Middle East and the Mediterranean all the way to Northern Europe.

According to official statistics, Djibouti ports witness daily transit of about 90 ships, 59% of which are coming from Asia, while vessels from Europe represent 21%, while other continents, including Africa, represent 16%.

According to the International Monetary Fund (IMF), maritime transport through the Red Sea decreased by approximately 30% in one year.

The International Chamber of Shipping says the Red Sea is a vital route that usually carries about 12% of global trade.

Doraleh Port, established in 2009, is about three kilometers from the gate to the edge of the sea, with a depth of 20 meters and a width of 1,050 meters, and it is considered one of the largest container ports in Africa.

Hasan told Asharq Al-Awsat that the port was equipped with the most advanced handling machines in the world, and it began operating only about three months ago.

The port ranked first in Africa for three consecutive years, and there are 30 mechanisms dedicated to distributing containers registered in a system with unique codes.

Some containers are destined for domestic and neighboring countries, and others are being re-exported to other international ports.

He explained that all the working crews are Djiboutian, with 800 full-timers and about 1,000 hired when needed.

Hasan addressed the establishment of a seaport for Ethiopia in Somaliland after announcing an initial agreement between the two sides, indicating that this would not affect the Djiboutian ports.

The advisor asserted that establishing an Ethiopian port in Somaliland would not affect the Djiboutian ports.

- Freight train to Ethiopia

Doraleh Port is directly connected to the main train terminal to transport goods from the port to Ethiopia.

Djibouti is the main gateway for Ethiopian imports and exports to and from the world.

According to the advisor, the train's journey from the port to Metu in Ethiopia takes 10 to 12 hours before continuing its way to Addis Ababa.

Hasan pointed out that three train lines can be operated simultaneously, while two trains run daily to Ethiopia, with an average of 106 containers for each train.

The Addis Ababa-Djibouti railway line is the first electric-powered railway line designed to Chinese specifications.

Djibouti and Ethiopia benefit from it by establishing industrial and logistical zones and constructing new cities and villages along this line, which passes through the Horn of Africa.

Ethiopia, which exports and imports nearly 90% of goods through Djibouti ports, has plans to expand the train network to extend to Sudan, Kenya, and South Sudan.



Iraq Studies Alternative Options for Oil Exports

Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty
Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty
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Iraq Studies Alternative Options for Oil Exports

Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty
Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty

Iraq is studying alternative measures to export crude oil after disruptions to the process amid the US-Israeli war against Iran. At the same time, the country intends to continue producing crude oil at a level of 1.4 million barrels per day.

Iraqi Oil Minister Hayyan Abdul Ghani told the official television channel Al-Iraqiya News that oil exports account for 90 percent of Iraq’s revenues, and that the ministry has decided to continue producing crude oil at 1.4 million barrels per day.

He emphasized that the production and supply of petroleum products to meet domestic demand have not stopped.

He added that refineries are operating at full design capacity to cover local needs, and that sufficient quantities of liquefied gas are available to fully meet domestic needs.

Regarding exports, he explained that the export process has stopped in the south, prompting the government to search for possible alternatives to export crude oil. He revealed that an agreement is close to being signed to export oil through the Turkish Ceyhan pipeline.

Abdul Ghani added that the ministry has prepared a comprehensive plan to manage the current phase, particularly after the new circumstances in the Strait of Hormuz, noting that a plan has been activated to transport 200,000 barrels per day by tanker trucks through Türkiye, Syria, and Jordan.

In a separate context, the oil minister denied that tankers targeted in Iraqi waters belonged to Iraq, explaining that they were not Iraqi vessels and were carrying naphtha.

Iraq recently lost its entire oil export capacity of 3.35 million barrels per day after Iran closed the Strait of Hormuz following escalating conflict in the region.

Iraq relies on crude oil sales for about 95 percent of its revenues to meet the needs of the country’s annual federal budget. This means that the country would face a critical situation if the conflict in the Gulf region and the Strait of Hormuz continues.


Gold Set for Weekly Drop as Oil Price Surge Weighs on Rate-cut Hopes

FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
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Gold Set for Weekly Drop as Oil Price Surge Weighs on Rate-cut Hopes

FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo

Gold prices were on track for a second consecutive weekly drop, despite edging up on Friday, as surging energy prices due to the Middle East war dimmed prospects for near-term US interest rate cuts.

Spot gold was up 0.3% at $5,095.55 per ounce, as of 0633 GMT on Friday. US gold futures for April delivery fell 0.1% to $5,100.20.

The US 10-year Treasury yields eased, increasing the appeal of the non-yielding bullion. Bullion, however, has ‌lost more ‌than 1% so far this week. Since the war ‌started ⁠on February 28, ⁠it has dropped over 3% so far.

Fears of inflation and questions about the Federal Reserve's ability to cut interest rates if high oil prices persist are somewhat counteracting gold's appeal, said Tim Waterer, KCM Trade chief market analyst.

"Given the ongoing uncertainty about the duration and scope of the conflict in the Middle East, I expect gold to remain on the ⁠radar for investors as a safety play." Heightening geopolitical ‌tensions, Iran's Supreme Leader Mojtaba Khamenei said ‌on Thursday that Tehran will keep the strategic Strait of Hormuz closed as ‌leverage against the US and Israel, which has stoked concerns about ‌global energy supply and risk assets.

Oil prices rose above $100 a barrel, as attacks on oil tankers in the Gulf and warnings from Iran shattered prospects of quick de-escalation in the Middle East conflict. As oil prices surged, US President Donald ‌Trump again demanded Fed Chair Jerome Powell cut interest rates.

Traders, however, expect the Fed to keep rates ⁠steady in the current ⁠3.5%-3.75% range at the end of its two-day meeting on March 18, according to CME Group's FedWatch tool. While recent inflation data suggest price growth is under control, the war and the resulting spike in crude prices have yet to filter through the data.

Investors are awaiting the release of the delayed January Personal Consumption Expenditures Index, expected on Friday. Gold discounts in India widened this week to their deepest point in nearly a decade as demand stayed subdued and some traders steered clear of paying import duties, while the escalating Middle East war boosted safe-haven demand in China.

Spot silver was down 1% at $82.91 per ounce. Spot platinum lost 1% to $2,111.45 and palladium fell 1% to $1,603.


Iran War and Rising Fuel Costs Could Boost Panama Canal Traffic, Administrator Says

A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)
A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)
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Iran War and Rising Fuel Costs Could Boost Panama Canal Traffic, Administrator Says

A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)
A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)

Panama Canal Administrator Ricaurte Vásquez said Thursday that the conflict in the Middle East and rising fuel costs could ultimately benefit the interoceanic waterway as global shippers adjust routes.

In an interview with The Associated Press, Vásquez said that higher energy, fuel and navigation costs could make the Panama Canal a more attractive option for commercial traffic.

“When costs increase, in general when the price of marine fuel rises, the Panama Canal becomes a more attractive route,” Vásquez said.

Oil prices have risen amid the war in the Middle East, which has led to the temporary closure of the Strait of Hormuz by Iran in response to US and Israeli attacks. About one-fifth of the world’s oil passes through the waterway at the mouth of the Gulf.

If higher energy costs persist, routing cargo through Panama can cut voyages by between three and 15 days, depending on the route, while reducing fuel consumption, he said.

Vásquez said higher fuel costs are expected to affect container ships, bulk carriers and tankers transporting liquefied natural gas. If Middle Eastern supplies are disrupted, shipments may be replaced by other sources, including the United States, which could redirect some LNG cargo from Europe to Asia via Panama.

Gerardo Bósquez, an executive with the Panama Maritime Chamber, said a prolonged conflict could reshape global trade routes, with gas transport among the segments likely to benefit.

Vásquez cautioned that any changes will not be immediate and will depend on how long cargo operators expect the conflict and instability in the Gulf last.