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Oil Slips from Recent Highs as Market Assesses Middle East Tension

A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
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Oil Slips from Recent Highs as Market Assesses Middle East Tension

A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo

Oil prices fell on Thursday after sharp gains in the previous session as market participants assessed a US decision to move personnel from the Middle East ahead of talks with Iran over the latter's nuclear-related activity.

Brent crude futures were down $1.31, or 1.9%, at $68.46 a barrel at 1202 GMT, while US West Texas Intermediate crude was $1.32, or 2%, lower at $66.83 a barrel, Reuters reported.

A day earlier both Brent and WTI surged more than 4% to their highest since early April.

US President Donald Trump said the US was moving personnel because the Middle East "could be a dangerous place". He also said the US would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful.

Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday.

"Geopolitical risk premia tend to fade if there are no supply disruptions. We are still higher than two days ago as some short investors prefer to stay on the sidelines amid the uncertainty," UBS analyst Giovanni Staunovo said.

On Wednesday Britain's maritime agency warned that increased tensions in the Middle East may lead to an escalation in military activity that could impact shipping in critical waterways.

It advised vessels to use caution while travelling through the Gulf, the Gulf of Oman and the Straits of Hormuz, which all border Iran.

"For the oil market, the absolute nightmare is a closure of the Strait of Hormuz," Global Risk Management analyst Arne Rasmussen said in a LinkedIn post.

"If Iran blocks this narrow chokepoint, it could affect up to 20% of global oil flows," he added.

JPMorgan said oil prices could surge to $120-$130 a barrel if the strait were to be shut, a scenario the bank considered to be severe but low-risk.

The US meanwhile is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday citing US and Iraqi sources.

Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries. A senior Iraqi oil official told Reuters foreign energy firms continue operating normally in the country.

Trump has repeatedly said the US would bomb Iran if the two countries cannot reach a deal regarding Iran's nuclear-related activity including uranium enrichment.

Iran's Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike US bases in the region if talks fail and if the US initiates conflict.

US Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran's response to a US proposal for a deal.

The UN nuclear watchdog's 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations on Thursday for the first time in almost 20 years, raising the prospect of reporting it to the UN Security Council.

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Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
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Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)

Saudi Arabia’s push to localize half of its defense spending under Vision 2030 is drawing deeper commitments from US defense giant Lockheed Martin, which says it will expand local manufacturing, transfer advanced technologies, and further integrate the Kingdom into its global aerospace and defense supply chains.

Building Saudi partnerships

Steve Sheehy, vice president for international business development at Lockheed Martin’s aeronautics division, said the company is stepping up efforts to partner with both established and emerging Saudi aerospace firms.

Lockheed Martin is looking to build partnerships across maintenance, repair and overhaul, as well as component manufacturing and repair, particularly in advanced avionics, Sheehy told Asharq Al-Awsat.

Speaking after the company’s participation in the World Defense Show in Riyadh, he said Lockheed Martin is also targeting emerging fields such as additive manufacturing, from plastics to metals, and advanced composite materials.

The goal, he said, is twofold: plug gaps in the company’s global supply chain while transferring know-how and strengthening local capabilities in a mutually beneficial model.

Sheehy described the Saudi aerospace sector as established and growing. He also noted that it has a solid base in maintenance and manufacturing, as well as a clear shift toward advanced technologies, creating room for deeper collaboration between national firms and global industry leaders.

Alignment with Vision 2030

Retired Brigadier General Joseph Rank, chief executive of Lockheed Martin in Saudi Arabia and Africa, said the company’s strategy in the Kingdom is rooted in a long-term partnership aligned with Vision 2030, especially the target of localizing 50 percent of defense spending.

Lockheed Martin, he said, is focused on transferring knowledge and advanced technologies, developing local industrial capabilities and building an integrated defense ecosystem that positions Saudi Arabia firmly within global supply chains.

Rank said the company is working closely with government entities and national companies to strengthen local manufacturing, empower Saudi talent and establish a sustainable industrial base that supports innovation and creates high-quality jobs.

Lockheed Martin is advancing manufacturing and repair work on defense equipment, including components of the THAAD air defense system, missile launch platforms, and interceptor missile canisters, in cooperation with Saudi partners, Rank said.

The company has also opened a maintenance center in Riyadh for the Sniper Advanced Targeting Pod system, the first of its kind in the Middle East, to enhance maintenance and technical support capabilities.

Beyond hardware, Lockheed Martin is investing in transferring and localizing advanced technologies in air defense, command and control, and digital manufacturing. It is also supporting science, technology, engineering and mathematics programs and hands-on training in cooperation with national universities.

Broad local network

Rank said the company relies on a wide network of partners in the Kingdom. At the forefront are the General Authority for Military Industries, the main government partner in localization agreements, and Saudi Arabian Military Industries, a key manufacturing and technology transfer partner.

Other collaborators include the Advanced Electronics Company for advanced systems maintenance, the Middle East Propulsion Company and AIC Steel for producing THAAD components and platforms, and the National Company for Mechanical Systems for advanced manufacturing technologies.

Academic partnerships extend to King Abdullah University of Science and Technology, King Saud University, King Fahd University of Petroleum and Minerals, and Princess Nourah bint Abdulrahman University, supporting research and developing national talent.

Localizing aerospace manufacturing

Rank said localizing aerospace manufacturing is a strategic priority. Lockheed Martin has launched projects to produce interceptor missile launch platforms and canisters inside the Kingdom and awarded contracts for key components to Saudi companies, qualifying them to join its global supply network beyond the US.

The company is evaluating and qualifying hundreds of Saudi firms to produce defense equipment to international standards, focusing on technology transfer and building local expertise as a step toward manufacturing more integrated systems in the future.

Company officials said the approach goes beyond supplying systems. It centers on technology transfer, digital manufacturing, and command-and-control systems, laying the groundwork for the production of integrated systems in the Kingdom and strengthening Saudi Arabia’s position as a regional hub for aerospace and defense.

Business

Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
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Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)

Türkiye Petrolleri (TPAO) has signed a partnership agreement with Shell to carry out exploration work in Bulgaria's maritime zone, the Turkish energy ministry and British oil major said on Wednesday.

European Union member Bulgaria, which had been totally dependent on Russian gas until 2022, has been seeking to diversify its gas supplies and find cheaper sources, Reuters reported.

TPAO and Shell will jointly explore the Khan Tervel block, located near Türkiye's Sakarya gas field, and will hold a five-year licence in Bulgaria's exclusive economic zone, Minister Alparslan Bayraktar said.

Shell will continue as operator of the block, while TPAO will take a 33% interest in the licence, a Shell spokesperson said.

Since the start of this year, TPAO has signed energy cooperation agreements with ExxonMobil, Chevron and BP for possible exploration work in the Black Sea and the Mediterranean.

In April, Shell signed a contract with Bulgaria's government to allow the oil major to explore 4,000 square metres in the block.

Business

Saudia Signs Strategic Partnership Agreement with Six Flags and Aquarabia Qiddiya City

udia will develop special travel packages designed to enable visitors to experience world-class attractions - SPA
udia will develop special travel packages designed to enable visitors to experience world-class attractions - SPA
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Saudia Signs Strategic Partnership Agreement with Six Flags and Aquarabia Qiddiya City

udia will develop special travel packages designed to enable visitors to experience world-class attractions - SPA
udia will develop special travel packages designed to enable visitors to experience world-class attractions - SPA

Saudia Airlines has signed a five-year strategic partnership with Six Flags and Aquarabia Qiddiya City, becoming the official premier partner exclusively in the airline category.

As part of the partnership, Saudia will develop special travel packages designed to enable visitors to experience world-class attractions. The collaboration also brings the spirit of Six Flags and Aquarabia Qiddiya City to the skies through special aircraft branding across Saudia’s fleet, SPA reported. 

Chief Marketing Officer of Saudia Group Khaled Tash said in a press release: "Saudia is committed to supporting national development projects as part of its contribution to Vision 2030, aligned with our strategy to bring the world to the Kingdom. Partnerships of this scale with national partners play a key role in positioning Saudi Arabia as a leading global destination for entertainment and tourism."

Park President of Six Flags and Aquarabia Qiddiya City Brian Machamer added: "Our partnership with Saudia not only reflects a shared ambition to connect the Kingdom to the world through world-class entertainment experiences, but strengthens our ability to attract visitors from around the world and realize our vision of setting a new global benchmark for immersive, world-class theme park entertainment and reinforcing Saudi Arabia’s growing presence on the global tourism stage."

Six Flags Qiddiya City sets a new benchmark for exceptional entertainment regionally and globally. Spanning six iconic themed lands, the theme park takes visitors on an immersive journey across 28 rides and attractions designed to world-class standards. Beyond the scale and diversity of its offerings, Six Flags Qiddiya City stands out for pushing the boundaries of engineering and entertainment, featuring five exclusive, record-breaking rides that have redefined global benchmarks. Leading these innovations is Falcons Flight, the roller coaster that has captured global attention as the fastest, tallest, and longest in the world.

Aquarabia Qiddiya City delivers a distinctive aquatic entertainment experience, offering 22 rides and water attractions, along with a man-made river designed for both relaxation and family-friendly water fun. For guests seeking privacy and elevated comfort, Aquarabia features 91 luxury cabanas, positioning the destination as a fully integrated leisure offering that redefines water-based entertainment to the highest international standards.

Located in the Tuwaiq Mountains near Riyadh, Qiddiya City is an emerging destination bringing together entertainment, sports, and culture. Six Flags and Aquarabia Qiddiya City form part of its entertainment offering.