Smuggling of Iranian Oil Raises Insurance Complications Amid Western Sanctions

A handout image shows the RSS Supreme's rigid-hulled inflatable boat in the vicinity of the burning vessels following a fire on two oil tankers about 55 km northeast of the Singaporean island of Pedra Branca, July 19, 2024. Reuters
A handout image shows the RSS Supreme's rigid-hulled inflatable boat in the vicinity of the burning vessels following a fire on two oil tankers about 55 km northeast of the Singaporean island of Pedra Branca, July 19, 2024. Reuters
TT

Smuggling of Iranian Oil Raises Insurance Complications Amid Western Sanctions

A handout image shows the RSS Supreme's rigid-hulled inflatable boat in the vicinity of the burning vessels following a fire on two oil tankers about 55 km northeast of the Singaporean island of Pedra Branca, July 19, 2024. Reuters
A handout image shows the RSS Supreme's rigid-hulled inflatable boat in the vicinity of the burning vessels following a fire on two oil tankers about 55 km northeast of the Singaporean island of Pedra Branca, July 19, 2024. Reuters

A collision between two tankers off Singapore in July raises questions over insurance claims, as one of the vessels previously shipped Iranian oil, potentially complicating payments due to Western sanctions, ship-trackers and industry sources told Reuters.

What Happened?

The Singapore-flagged Hafnia Nile and the Sao Tome and Principe-flagged Ceres I collided and caught fire about 55 km northeast of the Singaporean island of Pedra Branca on July 19.

No oil spill has been detected, only a sheen believed to be from damage to the Hafnia Nile's bunker tank, Malaysia's Marine Department said.

The vessel, which was carrying a cargo of naphtha, suffered engine damage and was secured by tugs at the collision site.

On Thursday, ship manager Hafnia said that an oil boom has been deployed at the stern of the ship and around the damaged area, and two tugboats are dispersing the light oil sheen.

Hafnia said it was working with Malaysian and Singaporean authorities to finalize a towage plan.

What’s the Iranian Oil Connection?

The Ceres I had no cargo at the time of the accident.

However, ship data from providers including LSEG and Kpler show the tanker carried Iranian crude in the past.

Ceres I last loaded Iranian oil via transfer with an Iranian tanker in March off the country's Kharg terminal, subsequently transferring the cargo to two tankers around the Malacca Strait between April 7-9, said Claire Jungman, chief of staff at advocacy group United Against Nuclear Iran, which tracks Iran-related tanker traffic via satellite data.

That cargo reached China on May 29, Jungman said.

Ceres I loaded Iranian oil at least four times since 2019, transporting 8 million barrels, according to analysis by Jungman. The vessel also made four trips carrying Venezuelan oil between 2021 and 2023 totaling 7.5 million barrels, she said.

The China-based owner of the Ceres I listed in shipping databases could not be reached for comment.

China, the biggest buyer of Iranian crude, says it opposes unilateral sanctions, but traders rebrand Iranian oil destined for the country as originating elsewhere. Chinese customs have not reported any imports of Iranian oil since June 2022.

Growing Shadow Fleet

This is believed to be the first such collision in recent years involving a vessel that is part of the so-called shadow fleet of tankers transporting oil cargoes that are subject to Western sanctions, insurance specialists told Reuters.

Government and industry officials have raised concerns over risks posed by the growing shadow fleet.

“The recent collision between Hafnia Nile and Ceres I marks a dangerous precedent,” said Jonathan Moss, head of transport with law firm DWF and an insurance claims specialist.

“Neither vessel nor owners are designated (by Western sanctions), however, if the Ceres I was or had in the past been carrying Iranian crude, their insurers may have reason to decline cover or may need to notify the authorities of a potential sanctions breach,” he said.

What Insurance is in Place?

Ships typically have protection and indemnity (P&I) insurance, which covers third-party liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.

The Hafnia Nile is covered by Norwegian P&I insurer Gard, one of the top 12 such providers covering around 90% of the world’s ocean-going ships.

Gard said it was “actively supporting” its member BW Group, which operates the Hafnia Nile, declining to give specifics.

Typically, a P&I club that is part of an international group of the 12 biggest companies in the sector covers the first $10 million of P&I losses, with members mutually reinsuring each other by sharing claims above $10 million to $100 million. The group holds reinsurance cover up to $3.1 billion.

A person familiar with the matter said the Ceres I has P&I coverage with an international insurer that is not among the leading 12 providers, and hull and machinery coverage from a Chinese insurer.

What Happens with Claims?

Claims in this case could include costs to repair both vessels, towing the Hafnia Nile to a dock, time in dock for repairs and those incurred by the salvage company and tugs as well as ship surveyors.

Typically, each party in a collision instructs its own loss assessor to prepare a report on what happened, establishing liability and then notify its insurers and make a claim.

The claims process itself is typically dealt with by both hull and P&I insurers and will last months if not longer.

Liability will be determined by a court, probably in Asia.

Any claims sent to hull & machinery, cargo and P&I insurers will be complicated by sanctions rules, DWF's Moss said.

Moss said if the hull & machinery or P&I cover had been placed by insurers in the London market or other jurisdictions, sanctions exclusion clauses could be triggered. This could prevent investigation of the claim including the appointment of loss assessors, loss adjusters, fire experts and others, potentially leaving the insured without cover from both direct insurers or reinsurers, Moss added.



World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
TT

World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.


Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
TT

Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)

Copper dropped on Friday and was set for its biggest weekly drop in London since March, as a rout in technology stocks battered markets.

Benchmark three-month copper on the London Metal Exchange was down 1.3% at $13,663 a metric ton by 0700 GMT. That placed it on track to fall 3.44% in the week, Reuters said.

The most-traded copper contract on the Shanghai Futures Exchange fell 1.08% to 106,830 yuan ($16,018.17) a ton.

The weakness reflects worries over AI investment, ‌with copper increasingly ‌influenced by "sentiment towards data center expansion," said ‌Craig ⁠Lang, principal analyst ⁠at CRU.

Technology shares were battered after Democratic wins in the US midterms fueled concerns that new regulatory oversight could cap the AI buildout.

On the other hand, supply constraints cushioned copper's decline.

"I would be cautious about calling this a sustained correction, given ongoing mine supply challenges and exceptionally tight ⁠metal availability outside the US," Lang said.

Copper stocks ‌in SHFE-monitored warehouses <CU-STX-SGH> fell by ‌over 24% this week to just 33,848 tons — the lowest ‌in almost three years. The closely watched Yangshan copper ‌premium <SMM-CUYP-CN>, a gauge of appetite for imports into key consumer China, increased to $210 a ton on Thursday, matching its record high.

Smelters in the country are facing a double squeeze of negative treatment ‌charges and lower sulfuric acid prices.

Meanwhile, warehouse inventories outside the US have been drawn ⁠down as ⁠material was pulled into the country ahead of a potential tariff on imports of refined copper.

"These physical constraints should provide some support against weaker investor sentiment," Lang said.

Among LME metals, aluminium lost 0.54%, zinc lost 1.42%, lead lost 0.45%, nickel dipped 0.23% and tin gained 0.83%.

On the SHFE, aluminium nudged down only 0.04%, zinc lost 1.35%, lead was little changed, down only 0.03%, nickel rose 2.14% and tin dropped 3.45%.

SHFE inventories were down across the board this week, led by sharp drops in aluminium <AL-STX-SGH> and lead <PB-STX-SGH>.


Emerging Economies Set to Match Advanced Nations’ Renewable Capacity Additions, IEA Says

Workers walk at Kalyon Karapinar solar power plant in Karapinar, Konya province, Türkiye, Oct. 14, 2026. (AP)
Workers walk at Kalyon Karapinar solar power plant in Karapinar, Konya province, Türkiye, Oct. 14, 2026. (AP)
TT

Emerging Economies Set to Match Advanced Nations’ Renewable Capacity Additions, IEA Says

Workers walk at Kalyon Karapinar solar power plant in Karapinar, Konya province, Türkiye, Oct. 14, 2026. (AP)
Workers walk at Kalyon Karapinar solar power plant in Karapinar, Konya province, Türkiye, Oct. 14, 2026. (AP)

Emerging ‌and developing economies outside China are expected to add as much new renewable energy capacity as advanced economies for the first time over the next five years, driven by the current energy crisis, the International Energy Agency said on Friday.

Gas and oil prices have soared this year as the US-Iran war disrupts traffic through the Strait of Hormuz, a key route for global oil and gas trade.

Global renewable energy ‌capacity is forecast ‌to increase by almost 4,800 gigawatts ‌between ⁠2026 and 2031, ⁠the IEA said in its annual outlook.

Emerging and developing economies are expected to add about 1,100 GW, roughly the same as advanced economies, with China adding around 2,550 GW, the agency said.

Capacity growth in Southeast Asia, Africa and the Middle East is ⁠expected to triple over the period, ‌led mainly by solar installations, ‌the IEA said.

China will remain the biggest contributor to ‌global renewable energy growth, although its share is ‌forecast to fall to 53% by 2031 from 60% in 2025.

India is emerging as the world's second-fastest deployer of renewables and is expected to more than double its contribution ‌to global growth by 2031 to nearly 8.5%.

Grid connection delays remain ⁠a major ⁠challenge, with projects awaiting connections worldwide rising 60% over the past year, equivalent to four times the wind and solar capacity connected to grids during the same period.

Grid constraints are expected to slow growth in advanced economies, with annual additions in Europe through 2031 forecast to remain broadly in line with 2025 levels.

Renewable energy is expected to meet 6% of global transport energy demand by 2031, while higher fuel-blending mandates prompted the IEA to raise its biofuels forecast by 40% from last year's report.