Shipping draws pension funds amid disruptions in Middle East

Shipping is drawing increased interest from pension funds and institutional investors.

As war-related disruptions in the Middle East keep vessel prices and freight rates near historic highs, Asset managers say investors are seeking exposure to “hard asset, low obsolescence” investments, the Financial Times reports.

The closure risks around the Strait of Hormuz and disruptions in the Red Sea have lengthened shipping routes and tightened vessel availability, supporting earnings and asset values.

Hayfin is raising a new maritime fund targeting twice the $620 million raised for its previous vehicle, while JPMorgan Asset Management has ordered at least eight oil supertankers worth about $1.3 billion, the FT says.

Gulf companies will still face disruptions in Strait of Hormuz

The Strait of Hormuz may be reopening, but Gulf energy companies still face weeks, if not months, of disruption following the deal with Iran brokered by U.S. President Donald Trump that was signed on Monday.

Clearing mines from the waterway could take 40 to 50 days, leaving shipowners, insurers and energy producers such as Saudi Aramco, ADNOC and QatarEnergy navigating a slow recovery, Reuters reports.

Oil markets are already pricing in a recovery, with Brent crude falling below $83 a barrel after peaking above $120 during the conflict, while Middle East crude markets weakened on expectations that Saudi, Emirati and Qatari exports will increase.

Meanwhile, Qatar is preparing to restart production at QatarEnergy’s Ras Laffan Industrial City, the world’s largest LNG export complex, which exported almost one-fifth of global LNG supply in 2025 before being idled for more than three months, Bloomberg reports.

The return of Ras Laffan would restore tens of billions of dollars in annual LNG exports and provide a boost to buyers in Europe and Asia that have been scrambling to replace Qatari cargoes since the effective closure of Hormuz.

Emirates’ Clark sees profitable future once Gulf crisis subsides

Emirates boss Tim Clark said he expects the carrier to become the “most profitable airline” in the world by the end of this year, despite disruptions from the Iran war, pointing to its history of restoring operations quickly and a ready supply of jet fuel.

“What we have found is that whenever we’ve been through these traumas before, the strength of demand [remains] so strong,” Clark said in an address to the the Centre for Aviation’s Airline Leader Summit in Berlin on Thursday.

He added that Emirates had “earned our skills” more than any other because “We’ve been subjected to all sorts of things over the last 20 to 30 years.”

Clark’s bold tone amid a growing crisis in the global aviation sector can partly be explained by Emirates’ ability to access the UAE’s plentiful fuel supply, giving it a competitive edge over many airlines in Europe and Asia, which are facing shortages.

“Frankly, we’re not that concerned, [as] we’ve got adequate supplies over here [in the UAE]. We produce and refine our own Jet A-1 fuel,” Clark said.

Emirates is now operating at more than 65% of its capacity and Clark said it would only take one to two months to restore operations to normal once the conflict was resolved.

He said the airline continued to refine its offerings and was working on upgrades to First Class cabins, including adding ensuite bathrooms.

UAE eyes currency support from U.S. if war disruptions deepen

The UAE is making contingency plans for deeper financial disruptions from war with Iran and asking the U.S. for help.

UAE Central Bank Governor Khaled Mohamed Balama has discussed the possibility of receiving various forms of financial backing in meetings with U.S. Treasury Secretary Scott Bessent and Federal Reserve officials in Washington, The Wall Street Journal reports.

A key option under consideration is a dollar swap line – an arrangement that would allow the UAE to access large amounts of U.S. dollars from the Federal Reserve in exchange for its own currency, helping ensure banks and businesses can keep operating if dollar funding tightens.

The concern is that continued attacks on shipping through the Strait of Hormuz could sharply reduce oil revenues and limit the flow of dollars into the UAE, putting pressure on the dirham, which is pegged to the U.S. currency, and raising the risk of capital outflows.

While no formal request has been made, the talks highlight growing unease in Abu Dhabi that a prolonged conflict could disrupt trade and finance, push some transactions toward alternative currencies such as the Chinese yuan, and force the UAE to rely on U.S. backing to stabilize its economy.

Middle East airspace disruptions risk delaying critical medicines

Disruptions to Middle East airspace are forcing pharmaceutical companies to reroute cargo flights carrying temperature-sensitive medicines, raising concerns about delays to shipments of treatments, including cancer drugs.

Airlines are diverting aircraft around closed corridors over Iran and parts of the Gulf, adding hours to delivery times and complicating cold-chain logistics, Reuters reports.

Industry executives say longer routes increase the risk of temperature fluctuations that can damage sensitive biologic medicines.

Companies are now shifting shipments through alternative hubs in Europe and Asia while monitoring supply risks if the conflict persists.

Investors see possible oil spike, shipping turmoil after U.S. bombing in Iran

Investors are girding for the possibility of more oil price spikes, shipping disruptions and flight cancellations following the U.S. bombing of Iranian nuclear facilities on Sunday.

Goldman Sachs floated a scenario for benchmark crude prices rising more than 40% to $110 a barrel if oil tanker traffic through the Strait of Hormuz is cut in half for a month and supply shortages of 10% continue through the next year.

Brent crude jumped as much as 3% today to its highest level since January.

Air France, Singapore Air, Iberia and Finnair are among the international carriers that have canceled flights to several Gulf destinations this week, including Dubai, Doha and Riyadh.

Investment banks and other international firms that have been building up their presence in the Gulf are reviewing contingency plans for evacuating employees and their families out if the conflict escalates.

Japan’s Mitsubishi UFJ Financial Group has started to pull the families of staff out of locations including Dubai, and will consider evacuating workers if they need to accompany them, Bloomberg reports.

The Mizuho and Sumitomo Mitsui firms are also talking to staff about returning to Japan from offices in Qatar, the UAE and other locations.

Gulf leaders, meanwhile, are in close touch with each other to assess the impact of escalating military conflict in the region.

UAE President Sheikh Mohamed bin Zayed held a round of phone calls on Sunday with Gulf neighbors including Saudi Crown Prince Mohammed bin Salman; Sheikh Mishal Al-Sabah, Emir of Kuwait; Sheikh Tamim Al Thani,  Emir of Qatar, and Oman’s Sultan Haitham bin Tariq.

He also spoke with French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni.