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.



EU Opposes Removing Oil Sanctions on Russia to Cool Energy Prices

Pumpjacks operated by Aera Energy work the wells at the Midway-Sunset field near Taft in Kern County, California, on March 8, 2026. (Photo by Frederic J. BROWN / AFP)
Pumpjacks operated by Aera Energy work the wells at the Midway-Sunset field near Taft in Kern County, California, on March 8, 2026. (Photo by Frederic J. BROWN / AFP)
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EU Opposes Removing Oil Sanctions on Russia to Cool Energy Prices

Pumpjacks operated by Aera Energy work the wells at the Midway-Sunset field near Taft in Kern County, California, on March 8, 2026. (Photo by Frederic J. BROWN / AFP)
Pumpjacks operated by Aera Energy work the wells at the Midway-Sunset field near Taft in Kern County, California, on March 8, 2026. (Photo by Frederic J. BROWN / AFP)

EU economy chief Valdis Dombrovskis said Tuesday the European Union did not support removing sanctions on Russian oil despite soaring energy prices, AFP reported.

"We must continue to exert maximum pressure on Russia," he said when asked about US President Donald Trump's announcement he will waive some sanctions on oil, warning easing restrictions would "reinforce Russia's capacity to wage war, undermining Ukraine".


Airlines Hike Ticket Prices as Iran War Propels Fuel Costs

A Qantas logo is visible on the tail of an airplane at an airport in Sydney, Australia, September 18, 2025. (Reuters)
A Qantas logo is visible on the tail of an airplane at an airport in Sydney, Australia, September 18, 2025. (Reuters)
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Airlines Hike Ticket Prices as Iran War Propels Fuel Costs

A Qantas logo is visible on the tail of an airplane at an airport in Sydney, Australia, September 18, 2025. (Reuters)
A Qantas logo is visible on the tail of an airplane at an airport in Sydney, Australia, September 18, 2025. (Reuters)

Australia's Qantas Airways , Scandinavia's SAS and Air New Zealand announced airfare hikes on Tuesday, blaming an abrupt spike in the cost of fuel caused by the Middle East conflict.

Jet fuel prices, which were around $85 to $90 per barrel before US-Israeli strikes on Iran, have soared to between $150 and $200 per barrel in recent days, New Zealand's flag carrier said as it suspended its financial outlook for 2026 due to uncertainty over the conflict.

The war, which disrupted shipping via the world's most vital oil export route, has sent oil prices surging, upending global travel, pushing airline tickets on some routes sky-high, and sparking fears of a deep travel slump that could lead to widespread grounding of planes.

"Increases of this magnitude make it necessary to react in order to maintain stable and reliable operations," an SAS spokesperson said in a statement to Reuters, adding it had implemented a "temporary price adjustment".

The largest Scandinavian airline said last ‌year it had temporarily ‌adjusted its fuel hedging policy due to uncertain market conditions and that it had no ‌fuel ⁠consumption hedged for the ⁠following 12 months.

While several Asian and European airlines, including Lufthansa and Ryanair, have oil hedging in place, securing a part of their fuel supplies at fixed prices, Finnair warned that even the availability of fuel could be at risk if the conflict dragged on.

"A prolonged crisis could affect not only the price of fuel but also its availability, at least temporarily," a Finnair spokesperson said, adding that it had not seen this happening yet. It had hedged over 80% of its first-quarter fuel purchases.

AIRSPACE CHAOS IN THE MIDDLE EAST

Highlighting the airspace chaos in the Middle East, planes arriving in Dubai were briefly placed in a ⁠holding pattern on Tuesday due to a potential missile attack, flight tracking service Flightradar24 said on X. ‌The planes eventually landed.

Qantas said in addition to increasing international fares, it was exploring ‌options to redeploy capacity to Europe as airlines and passengers seek to evade disruptions in the Middle East, where drone and missile fire have ‌curtailed flights.

Airfares have soared on Asia-Europe routes due to airspace closures and capacity constraints, and Hong Kong's Cathay Pacific Airways said on ‌Tuesday it was adding extra flights to London and Zurich in March.

Air New Zealand said it had raised one-way economy fares by NZ$10 ($6) on domestic routes, NZ$20 on short-haul international services and NZ$90 on long-haul, with more adjustments to prices and schedules possible if jet fuel costs remain elevated.

Hong Kong Airlines said on its website it would raise its fuel surcharges by up to 35.2% from Thursday, with the sharpest increase on flights between ‌Hong Kong and the Maldives, Bangladesh and Nepal.

AIRLINE SHARES STABILISE AFTER SELLOFF

Some airline stocks rose and oil prices fell to around $90 a barrel on Tuesday from a high of $119 on Monday ⁠after US President Donald Trump said ⁠on Monday the war could be over soon. When markets opened in Europe, airline shares were up between 4% and 7%.

In Asia, airline shares showed signs of stabilising, with Qantas closing up 0.5%, Korean Air Lines rising 3% and Cathay Pacific up 3.6%. All had recorded sharp declines on Monday.

Fuel is the second-largest expense for air carriers after labor, typically accounting for a fifth to a quarter of operating expenses.

CONFLICTS SHRINKING AVAILABLE AIRSPACE

In addition to high fuel costs, tightening airspace also threatens to derail the global travel industry, as pilots reroute to avoid the Middle East conflict and capacity on popular routes fills up.

Emirates, Qatar Airways and Etihad typically jointly account for about one-third of the passenger traffic between Europe and Asia and fly more than half of all passengers from Europe to Australia, New Zealand and nearby Pacific Islands, according to Cirium.

European airlines have already struggled with the shortage of available airspace created by the war in Ukraine, with many avoiding Russian airspace and flying longer international routes. Now, with even less available airspace, they say their business has become even more challenging.


Aramco Sees ‘Catastrophic Consequences’ for Oil Markets if Hormuz Strait Remains Blocked

President and CEO of Saudi's Aramco, Amin Nasser, speaks during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. (Reuters)
President and CEO of Saudi's Aramco, Amin Nasser, speaks during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. (Reuters)
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Aramco Sees ‘Catastrophic Consequences’ for Oil Markets if Hormuz Strait Remains Blocked

President and CEO of Saudi's Aramco, Amin Nasser, speaks during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. (Reuters)
President and CEO of Saudi's Aramco, Amin Nasser, speaks during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. (Reuters)

Saudi Arabia's Aramco , the world's top oil exporter, said on Tuesday there would be "catastrophic consequences" for the world's oil markets if the Iran war continues to disrupt shipping in the Strait of Hormuz.

Oil shipments have been largely blocked from using the shipping artery, where normally roughly 20% of the world's oil would pass through daily. Iran's Revolutionary Guards said on Tuesday they would not allow "one liter of oil" to be shipped from the Middle East if US and Israeli attacks continue.

"There would be catastrophic consequences for the world's oil markets and the longer the disruption goes on ... the more drastic the consequences for the global economy," Aramco CEO Amin Nasser told reporters on an earnings call.

"While we have faced disruptions in the past, this one by far is the biggest crisis the region's oil and gas industry has faced."

WIDE RANGE OF SECTORS MAY BE HIT

The crisis has not only ‌upended the shipping ‌and insurance sectors, but it also promises to have drastic domino effects on aviation, agriculture, automotive ‌and ⁠other industries, he added.

Global ⁠crude benchmark Brent, which rocketed to a more than three-year high of nearly $120 a barrel on Monday, was trading around $92 on Tuesday following comments by US President Donald Trump predicting the war could end soon.

Trump, however, warned that the US would hit Iran much harder if it blocked exports from the vital energy-producing region.

He has also said the US Navy could escort ships in the Gulf to guarantee safe passage. But the Navy's capacity to do that is unclear, with some vessels already engaged in strikes against Iran and shooting down its missiles.

Asked about US Navy escorts and whether they were possible on the scale required, Nasser said there are sizable volumes involved, ⁠adding that Aramco's customers assume the risk of delivery.

"Of course, we would support any actions ‌or measures that would help to deliver our products to our customers, to ‌the global market," he said.

NO EXPORTS FROM THE GULF

Nasser noted global inventories of oil ‌were at a five-year low and said the crisis will lead to drawdowns at a faster rate, adding that it was critical that shipping in the strait resumed.

"Unfortunately, for global markets, most of the spare capacity is in this region," Nasser told analysts on a call, noting that incremental demand throughout the year will keep the market tightly balanced.

At present, Aramco is not exporting oil from the Gulf as ships cannot load ‌cargoes there. But the company, which does not disclose its exact crude output, is meeting the majority of its customers' needs, he said, partly by tapping into global inventories.

"Now, that ⁠cannot be used - that inventory - ⁠for an extended period of time, but for the time being, we are capitalizing on it," he said.

The East-West pipeline is, meanwhile, being used to transport mostly Arab Light and some Arab Extra Light crude grades to the Red Sea port of Yanbu. The pipeline, which has more than doubled its initial capacity, is expected to reach its full capacity of 7 million barrels per day in the next couple of days as customers re-route, Nasser said.

"Even with our ability to export through the western region, you're talking about close to 350 million barrels of disruptions that will come off the market," he said.

In addition to the pipeline, Aramco is also able to direct crude towards domestic demand, he noted. Close to 2 million bpd of the pipeline's 7 million bpd capacity is going to western domestic refineries, which are net exporters of products, Nasser added.

A small fire from an attack last week on Aramco's Ras Tanura refinery, its largest domestically, was quickly extinguished and brought under control, Nasser said, adding that the refinery was in the process of being restarted.