South Korea's Hanwha Ocean Targets US Navy Orders as Trump Seeks Shipbuilding Ties

Steve SK Jeong, Head of Naval Ship International Business Department of Hanwha Ocean, speaks during an interview with Reuters in Seoul, South Korea, May 2, 2025.   REUTERS/Kim Hong-Ji
Steve SK Jeong, Head of Naval Ship International Business Department of Hanwha Ocean, speaks during an interview with Reuters in Seoul, South Korea, May 2, 2025. REUTERS/Kim Hong-Ji
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South Korea's Hanwha Ocean Targets US Navy Orders as Trump Seeks Shipbuilding Ties

Steve SK Jeong, Head of Naval Ship International Business Department of Hanwha Ocean, speaks during an interview with Reuters in Seoul, South Korea, May 2, 2025.   REUTERS/Kim Hong-Ji
Steve SK Jeong, Head of Naval Ship International Business Department of Hanwha Ocean, speaks during an interview with Reuters in Seoul, South Korea, May 2, 2025. REUTERS/Kim Hong-Ji

South Korean shipbuilder Hanwha Ocean aims to boost its revenue from overseas military vessels to around 4 trillion won ($2.91 billion) by 2030 and hopes to pick up more repair orders from the US Navy, a senior executive told Reuters.

The Asian country is a major global shipbuilder and trade talks with the US on tariffs brought up possible cooperation in the sector after US President Donald Trump signed an executive order to restore US shipbuilding.

Hanwha Ocean, formerly Daewoo Shipbuilding, is one of the largest shipbuilders in the world with an order book of $31.43 billion as of the end of March. It acquired a US shipyard in Philadelphia last year to expand in the market.

Its naval ships business, which has built dozens of submarines and surface vessels used by the South Korean Navy, has won two orders from the US Navy since last year to repair and overhaul its ships for the first time.

"I think we may be the biggest shipyard in the world that has taken on these maintenance, repair and overhaul orders from the US Navy," said Steve SK Jeong, head of the Naval Ship Global Business at Hanwha Ocean, days after US Secretary of the Navy John Phelan visited its shipyard.

"It is not very profitable, but learning the process of working with the US Navy is valuable, which will help if we win newbuild orders."

Hanwha Ocean hoped to win a double-digit number of US Navy maintenance and repair orders before 2030, Jeong said.

Trump has vowed to spend "a lot of money on shipbuilding" to restore US capacity, and cited concern over how his country has fallen behind in an industry that is also dominated by China.

Still, US laws can make it harder for foreign shipyards even if they have US operations. They are prohibited from building US Navy vessels, due to the Byrnes-Tollefson Amendment of the US Department of Defense Appropriations Act.

TRANSPLANTING PROCESSES

Hanwha Ocean's Philadelphia Shipyard is trying to get a license that clears it to build US Navy vessels, but transplanting cutting-edge manufacturing processes honed from competition with other South Korean and Chinese shipyards is not as simple as bringing in some automated welding machines, Jeong said.

"I think the US shipbuilding industry hasn't had to compete very much. Facilities are old, and there's a shortage of technicians," Jeong said.

"We are looking to modernize facilities, train and equip workers, and bring in our manufacturing process that can build the same ship in, I think, two-thirds the time or less as that of a US shipyard."

Jeong said the company is investing in South Korea to use existing facilities and expand naval ship capacity to build five submarines and three surface vessels at the same time by 2029, from two submarines and two surface vessels now.

Despite building 17 submarines for the South Korean Navy since 1987, Hanwha Ocean has only actively competed for overseas orders in the last few years as South Korea's low birthrate and shrinking military-age population risk cooling local demand.

It is competing to export submarines to Poland and Canada, a frigate to Thailand as well as knocking on the door in markets in the Middle East, South America, North Africa and Southeast Asia, to build up a sustained flow of orders that would bring foreign sales to 4 trillion won by 2030, Jeong said.

That would be about four times the size of its 1.05 trillion won of revenue in 2024.



UAE Shares Extend Losses

A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER
A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER
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UAE Shares Extend Losses

A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER
A man follows the stock market shares on a screen with stock information at the Dubai Financial Market (DFM) in the Gulf emirate of Dubai, United Arab Emirates, 04 March 2026. EPA/ALI HAIDER

The UAE stock markets fell in early trade on Thursday, extending losses from the previous session after exchanges reopened following a two-day trading halt triggered by Iran’s missiles and drones.

The UAE's stock markets reopened on Wednesday.

Both exchanges said they will temporarily set a 5% lower price limit on securities.

Dubai's main share index sank more than 4%, as stocks retreated across the board, with top lender Emirates NBD and blue-chip developer Emaar Properties both losing 4.9%.

Elsewhere, budget airline Air Arabia declined 4.9%.

However, utility firm Dubai Electricity and Water Authority advanced 4.4%.

In Abu Dhabi, the index retreated 2.3%, with the country's biggest lender First Abu Dhabi Bank declining 4.9% and Aldar Properties was ⁠down 5%.

Among ⁠other fallers, Abu Dhabi Commercial Bank tumbled 5%.


US Bonds Tumble as Oil Price Surge Rekindles Inflation Fears

Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)
Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)
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US Bonds Tumble as Oil Price Surge Rekindles Inflation Fears

Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)
Patrick King works on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)

A steep selloff ‌in US Treasuries extended into a fourth straight day on Thursday, as investors fretted that surging energy prices from the war in the Middle East could stoke inflation and derail the Federal Reserve's rate outlook.

The benchmark 10-year US Treasury yield jumped as much as 5 basis points in Asia to a three-week high of 4.1310%, extending its rise for the week thus far to nearly 17 bps.

The two-year yield was meanwhile up about 2 bps to ‌3.5640%, having ‌also gained more than 18 bps ‌this ⁠week. Bond prices move ⁠inversely to yields, said Reuters.

Investors have pared back expectations of further easing from the Fed this year on the back of the US-Israel war with Iran, which entered its sixth day as Iran launched a wave of missiles at Israel, sending millions of residents into bomb shelters.

That has ⁠kept oil prices elevated, and with shipping ‌through the key Strait of ‌Hormuz paralyzed, investor focus has quickly shifted to the risk ‌of a resurgence in inflation.

"As of right now, ‌the (US) consumer price index is going to get back to the high (2%) if crude oil costs don't tumble in short order," said Jose Torres, senior economist at Interactive Brokers.

"The reversal in (inflation) ‌progress would likely send Treasuries and stocks further lower, as rate-cut optimism amid decelerating cost ⁠pressures was ⁠what sparked the rallies in fixed income and cyclical benchmarks early in 2026."

Traders are now pricing in just a 34% chance of a Fed cut in June, as compared to a near 46% chance a week ago, according to the CME FedWatch tool.

Fed funds futures point to just over 40 bps worth of easing by the year-end.

The shifting Fed expectations have also come on the back of Wednesday's upbeat US economic data, which showed services sector activity surged to more than a 3-1/2-year high in February amid strong demand.


Could Egypt’s ‘SUMED’ Pipeline Temporarily Replace the Strait of Hormuz?

Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
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Could Egypt’s ‘SUMED’ Pipeline Temporarily Replace the Strait of Hormuz?

Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)

Amid the ongoing Iran war and Tehran’s announcement of the closure of the Strait of Hormuz, a key artery for global energy supplies, Egypt has begun highlighting the SUMED pipeline linking the Red Sea and the Mediterranean as a potential temporary alternative for oil transport.

The move has raised questions about whether the pipeline, a vital connection between the two seas, could help offset disruptions to the volatile waterway.

Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi addressed the issue during a government press conference on Tuesday, saying Egypt “has sufficient technical and logistical capabilities to support this strategic route.”

He said the SUMED pipeline enhances the flexibility of oil supply flows in the region and confirmed Egypt’s readiness to cooperate with Gulf states to facilitate oil transport from the Red Sea to the Mediterranean through the line.

Energy experts who spoke to Asharq Al-Awsat agreed that the pipeline could help ease the current energy crisis amid the absence of any political solution to end the war, noting the line was originally designed as an alternative route when oil shipments face obstacles passing through the Suez Canal.

SUMED pipeline

The pipeline is owned by the Arab Petroleum Pipelines Company (SUMED), an Arab joint venture led by Egypt, with a 50% stake held by the Egyptian General Petroleum Corporation, alongside partners from Gulf states.

The pipeline runs across Egypt from Ain Sokhna on the Gulf of Suez to Sidi Kerir on the Mediterranean coast, with a capacity of about 2.8 million barrels per day.

According to Egypt’s petroleum ministry, the pipeline transported about 24.9 billion barrels of crude oil and more than 730 million barrels of petroleum products from its launch in 1974 through 2024.

Ahmed Kandil, head of Energy Studies Program at the Al-Ahram Center for Political and Strategic Studies, said the line’s importance lies in easing disruptions to oil trade following Tehran’s declaration that it had closed the Strait of Hormuz.

He told Asharq Al-Awsat that oil shipments could reach the pipeline via tankers transporting crude from Saudi Arabia’s Yanbu port to Egypt’s Ain Sokhna port, from where it would move through the pipeline to the Mediterranean and onward to Europe.

He said coordination with Gulf states is underway to contain concerns over energy supplies, particularly among European consumers.

Kandil added that the arrival of part of Gulf exports to European markets is highly important, helping limit spikes in Brent crude prices, which have already surpassed $80 per barrel.

“The growing importance of the Egyptian pipeline comes amid the absence of a political horizon, which means the current conflict could be prolonged,” he said.

Storage capacity

According to the US Energy Information Administration, the main reason for building the SUMED pipeline at this location is that very large crude carriers — capable of transporting about 2.2 million barrels — cannot pass through the Suez Canal due to their excessive weight and width, which could risk grounding.

Instead, they offload their cargo at Ain Sokhna, where the oil is transported through the pipeline to the other side of Egypt. Smaller vessels then reload the crude at Sidi Kerir and sail to Europe and the United States.

Energy markets expert Ramadan Abu Al-Ala said the Egyptian pipeline serves as an alternative to the Suez Canal and could temporarily ease the crisis caused by the closure of the Strait of Hormuz.

He noted that the pipeline is particularly effective for oil tankers arriving from Saudi Arabia, Oman, Bahrain and the United Arab Emirates, which can unload at Ain Sokhna before the crude is transported to the Mediterranean and European markets.

Abu Al-Ala expects SUMED to become even more important for Gulf oil exports to Europe if the war drags on, increasing reliance on the pipeline. However, he said this would require enhanced security measures for oil tankers operating in the Red Sea.

Energy market experts also highlighted another advantage: the pipeline’s large storage capacity. SUMED operates storage tanks with a total capacity of 40 million barrels of oil.

In February 2019, Saudi Aramco signed two agreements with the company to provide storage capacity for diesel and fuel oil.