Chairman of Kuwait Airways Resigns, Refuses to Explain Reasons

(File Photo: AFP)
(File Photo: AFP)
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Chairman of Kuwait Airways Resigns, Refuses to Explain Reasons

(File Photo: AFP)
(File Photo: AFP)

Chairman of the Board of Directors of Kuwait Airways Yousef Al-Jassem confirmed that his resignation was accepted by the Finance Minister Barak Al-Shaitan, from the chairmanship of the board of directors.

Jassem said in a statement that he had previously submitted his resignation in May, which was not accepted at the time, then he submitted it again in June and it was accepted.

In May, Kuwait Airways laid off about 1,500 of its workforce – mostly expatriates – out of 6,000 workers in total in various sectors, as it deals with the coronavirus crisis and its negative impact on commercial operations.

In a press release, Kuwait Airways expressed gratitude to all employees for their efforts. It affirmed that they are the top priority of the company but this tough decision resulted from the challenges faced by the firm in specific and the aviation sector in general.

Earlier, Kuwait Airways managed to repatriate Kuwaitis from 58 countries through around 185 flights.

Since the beginning of this month, the firm resumed booking to several regional and international destinations including Dubai, London, Geneva, Beirut, Cairo, Bahrain, Istanbul, Bodrum, and Trabzon. In the first phase, the capacity will be 30 percent, in the second phase 50 percent, and then in the third phase 100 percent.



Investors Weigh Market Risks as Israeli-Iranian Tensions Rise

Traders monitoring the movement of stocks on Wall Street (Reuters)
Traders monitoring the movement of stocks on Wall Street (Reuters)
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Investors Weigh Market Risks as Israeli-Iranian Tensions Rise

Traders monitoring the movement of stocks on Wall Street (Reuters)
Traders monitoring the movement of stocks on Wall Street (Reuters)

As the conflict between Israel and Iran escalates, investors are analyzing several potential market scenarios, especially if the United States deepens its involvement. A key concern is a sharp increase in energy prices, which could amplify economic consequences across global markets.

Rising oil prices could fuel inflation, weaken consumer confidence, and diminish the likelihood of interest rate cuts in the near term. This may prompt initial stock market sell-offs and a flight to the US dollar as a safe-haven asset.

While US crude oil prices have surged by around 10% over the past week, the S&P 500 index has remained relatively stable, following a brief decline after the initial Israeli strikes.

Analysts suggest that if Iranian oil supplies are disrupted, market reactions could intensify significantly. A serious supply disruption would likely ripple through global petroleum markets and push oil prices higher, leading to broader economic consequences.

Oxford Economics has outlined three possible scenarios: a de-escalation of conflict, a full suspension of Iranian oil production, and the closure of the Strait of Hormuz. Each scenario carries escalating risks to global oil prices. In the most severe case, prices could soar to $130 per barrel, pushing US inflation to nearly 6% by year-end. In such a scenario, consumer spending would likely contract due to declining real income, and any possibility of interest rate cuts this year would likely vanish under rising inflationary pressure.

So far, the most direct impact has been felt in oil markets, where Brent crude futures have jumped as much as 18% since June 10, reaching nearly $79 a barrel, the highest level in five months. Volatility expectations in the oil market now exceed those of major asset classes like equities and bonds.

Although equities have largely brushed off the geopolitical turmoil, analysts believe this could change if energy prices continue to climb. Rising oil prices could weigh on corporate earnings and consumer demand, indirectly pressuring stock markets.

While US stocks have held steady for now, further American involvement in the conflict could spark market anxiety. Historical patterns suggest any sell-off might be short-lived. For instance, during the 2003 Iraq invasion, stocks initially dropped but recovered in subsequent months.

As for the US dollar, its performance amid escalating tensions could vary. It may strengthen initially due to safe-haven demand, although past conflicts have sometimes led to long-term weakness, especially during prolonged military engagements.