Kremlin Stresses Strong Relations With Saudi Arabia, no Oil Price Warhttps://english.aawsat.com/home/article/2191916/kremlin-stresses-strong-relations-saudi-arabia-no-oil-price-war
Kremlin Stresses Strong Relations With Saudi Arabia, no Oil Price War
A woman holds new 200 and 2,000 rouble banknotes in a bank in Moscow, Russia November 21, 2017. REUTERS/Maxim Shemetov
The Kremlin's spokesperson has suggested that no one should interfere in Russia and Saudi Arabia relations as an oil price dispute continues roiling global markets. Dmitry Peskov told reporters Friday that relations between Moscow and Riyadh remain strong despite the disagreement, which he claimed was not a price war.
"There are no price wars between Russia and Saudi Arabia," Peskov said, according to Russian state news agency Tass. "There is a very unfavorable pricing environment for many countries," he added.
Russia’s Central Bank held its benchmark rate at 6 percent. “In February-March, the situation has been developing with a significant deviation from the Bank of Russia’s forecast under the baseline scenario. This is related to worsening global growth prospects amid the spreading coronavirus as well as to a rapid deterioration of dynamics in global commodity and financial markets,” the Central Bank said in a statement.
Fitch Ratings on Thursday lowered its forecast for Russia’s 2020 gross domestic product (GDP) growth to 1 percent from 2 percent in December, citing a global economic slump, the collapse in oil prices and a weaker rouble. It said subdued external demand and the weaker rouble had reduced investment.
Peskov also commented on US President Donald Trump statements on his intention to discuss at the right time the debate between Russia and Saudi Arabia. He said the two nations still enjoy "good relations, a partnership."
Responding to Fedun’s estimations that the drop of oil prices to less than USD25 per barrel would be catastrophic for the Russian economy, Peskov said "Certainly, the price situation is unpleasant... But we can't agree that this is a disaster for Russia in the medium term because our government has a solid safety cushion which for several years could provide an opportunity to fulfill all social obligations, development plans, and so on."
He added: "You know that the Russian budget is calculated at USD42 per barrel. Of course, this price is unfavorable for us, but we have a safety cushion, which we'll use when it is necessary. Both in the short and medium term nothing bad is going to happen."
JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stabilityhttps://english.aawsat.com/business/5259042-jmmc-holds-65th-meeting-videoconference-discusses-energy-security-and-market
JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
The Joint Ministerial Monitoring Committee (JMMC), comprising Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Nigeria, Algeria and Venezuela holds its 65th Meeting via videoconference.
The JMMC reviewed current market conditions and emphasized the essential role of the Declaration of Cooperation (DoC) in supporting the stability of global energy markets, according to SPA.
In this context, the committee highlighted the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy.
It also expressed concern regarding attacks on energy infrastructure, noting that restoring damaged energy assets to full capacity is both costly and takes a long time, thereby affecting overall supply availability.
Accordingly, the committee stressed that any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility and weaken the collective efforts under the DoC to support market stability for the benefit of producers, consumers, and the global economy.
In this regard, the committee commended the DoC countries that took the initiative to ensure the continued availability of supplies, particularly through the use of alternative export routes, which have contributed to reducing market volatility.
The JMMC will continue to closely monitor market conditions and retains the authority to convene additional meetings or request an OPEC and non-OPEC Ministerial Meeting, as established at the 38th ONOMM held on December 5 2024.
The next meeting of the JMMC (66th) is scheduled for June 7, 2026.
Saudi Market Edges Higher on Insurance and Basic Materials Supporthttps://english.aawsat.com/business/5259028-saudi-market-edges-higher-insurance-and-basic-materials-support
Saudi Market Edges Higher on Insurance and Basic Materials Support
An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
Saudi Arabia’s benchmark Tadawul All Share Index (TASI) edged up 0.03 percent to 11,272 points on Sunday, supported by insurance and basic materials stocks. Total traded value reached SAR 4.27 billion ($1.1 billion).
Shares of Petro Rabigh and The National Shipping Company of Saudi Arabia (Bahri) rose 1 percent and 1.5 percent to SAR 10.9 and SAR 32.6, respectively.
Saudi Arabian Amiantit Co. (Amiantit) led gainers, rising 10 percent to SAR 15.63. In the materials sector, SABIC and Maaden advanced 0.84 percent and 0.46 percent to SAR 60.05 and SAR 65.7, respectively.
In insurance, The Company for Cooperative Insurance (Tawuniya) and Bupa Arabia climbed 1 percent and 2 percent to SAR 127.3 and SAR 174.1, respectively. Almarai rose 1.2 percent to SAR 44.48 after reporting its Q1 2029 results.
On the downside, Saudi Aramco—the index heavyweight—declined 0.22 percent to SAR 27.54.
ACWA Power fell about 1 percent to SAR 168 after announcing last week a temporary curtailment of power output at two of its solar projects. Emaar The Economic City (Emaar EC) was the biggest decliner, falling 7.6 percent to SAR 10.88.
Saudi Airports Serve as Safety Valve for Regional Air Traffic as ‘Hormuz Fallout’ Hits Global Aviationhttps://english.aawsat.com/business/5259004-saudi-airports-serve-safety-valve-regional-air-traffic-%E2%80%98hormuz-fallout%E2%80%99-hits
Saudi Airports Serve as Safety Valve for Regional Air Traffic as ‘Hormuz Fallout’ Hits Global Aviation
King Khalid International Airport in Riyadh (SPA)
Conflicts in the region are no longer confined to the geography of battlefields; their fallout has reached one of the world’s most vital and sensitive industries: aviation. Today, travelers and airlines alike face a harsh reality driven by record surges in jet fuel prices and a steep spike in insurance costs, pressures that have pushed ticket prices higher, threatening a severe economic squeeze that could derail global tourism plans and reshape travel patterns long taken for granted.
The surge in aviation costs cannot be separated from the turmoil in global energy markets. The link between crude oil and jet fuel prices peaked in early April 2026. As market confidence wavered amid US military threats, crude prices jumped to record levels due to the direct risk to supplies through the Strait of Hormuz, setting off an immediate spike in jet fuel prices. Given that jet fuel is among the most valuable refined products from a barrel of oil, these unprecedented crude levels pushed aviation fuel to nearly double its 2025 levels.
Compound pressures and a tourism slowdown
In remarks to Asharq Al-Awsat, aviation and airport management expert AlMotaz Al-Mirah said the current tensions, in an industry already operating on thin margins, are quickly reflected in both pricing and demand across the tourism sector.
“The rise in ticket prices today is not driven by a single factor,” he said, “but by a combination of pressures: higher fuel consumption, longer routes, elevated insurance costs, and reduced operational efficiency.”
The World Travel & Tourism Council confirmed that “the escalating conflict in Iran is already impacting travel and tourism across the Middle East by no less than $600 million per day in international visitor spending, as disruptions to air travel, traveler confidence, and regional connectivity weigh on demand.”
According to council data released in March, the Middle East plays a critical role in global travel, accounting for 5 percent of international arrivals and 14 percent of global transit traffic. Any disruption reverberates worldwide, affecting airports, airlines, hotels, car rental firms, and cruise lines.
The family travel bill
On leisure travel, Al-Mirah said fare increases have ranged from 15 percent to 70 percent across many routes- higher still on long-haul flights.
“A ticket that used to cost $500 now ranges between $800 and $1,000,” he noted, “meaning an increase of up to $2,000 for a family of four.” This is forcing many travelers to delay trips or opt for closer destinations, reshaping demand across regional markets.
He detailed the price surge since the crisis began in late February: jet fuel rose from around $85–90 per barrel to between $150 and $200. This has driven the cost per flight hour for long-haul aircraft from an average of $10,000 to more than $18,000 in some cases. A flight carrying 180 passengers could see total additional costs of about $15,000, forcing airlines to add roughly $80 per ticket just to break even.
Globally, Brazil’s Petrobras raised jet fuel prices by about 55 percent in early April, while the Philippines warned that some aircraft could be grounded due to fuel shortages, and Taiwanese carriers are preparing to increase international fuel surcharges by 157 percent.
Longer routes, heavier maintenance burdens
Al-Mirah explained that longer flight times to avoid unstable airspace carry steep financial costs, with each additional hour adding between $5,000 and $7,500. Route changes extending flight durations by one to two hours have increased fuel consumption by up to 30 percent. More time in the air also accelerates engine wear.
The strain goes beyond fuel. Increased flight hours speed up the deterioration of engines and components, bringing forward maintenance schedules and raising annual servicing costs- ultimately reducing fleet efficiency.
Airlines are also grappling with sharply higher war-risk insurance premiums. While such costs typically account for no more than 1 percent of total operating expenses, they have surged by between 50 percent and 500 percent in the current crisis, according to a March 2026 report by Lockton.
This buildup of fuel and insurance costs threatens to turn profitable routes into loss-making ones, potentially forcing cash-strapped or low-cost carriers to suspend some routes temporarily to preserve financial stability.
An aircraft from Riyadh Air at Le Bourget Airport (Reuters)
Saudi airports support regional air traffic
Amid these complexities, Saudi Arabia’s General Authority of Civil Aviation has deployed its capabilities to activate regional support protocols. Gulf airlines have shifted logistical operations to Saudi airports to keep regional air traffic safe and moving.
The authority announced that the Kingdom received more than 120 flights from neighboring countries’ carriers between February 28 and March 16, including Qatar Airways, Iraqi Airways, Kuwait Airways, Jazeera Airways, and Gulf Air.
لم تشترك بعد
انشئ حساباً خاصاً بك لتحصل على أخبار مخصصة لك ولتتمتع بخاصية حفظ المقالات وتتلقى نشراتنا البريدية المتنوعة
