Global air cargo rates fell in July as the conflict involving Iran pushed up jet fuel costs and disrupted supply chains, while new European Union import rules further weakened shipments from China and Hong Kong to Europe, according to WorldACD Market Data.
Gulf tensions remain high despite signs of diplomatic progress over the Strait of Hormuz, with Saudi Arabia warning of imminent coordinated attacks by Iran-backed militias even as Tehran and Muscat move closer to an agreement aimed at restoring commercial shipping through the strategic waterway.
Iran and Oman have moved closer to an agreement on reopening the Strait of Hormuz to commercial shipping, with both sides agreeing on the geographical coordinates of a proposed safe navigation corridor, even as conflicting messages over possible US-Iran negotiations continue to cloud prospects for a broader diplomatic breakthrough.
Oil prices recovered on Tuesday after suffering their steepest one-day decline in weeks, as persistent concerns over potential supply disruptions in the Middle East outweighed optimism that diplomatic efforts could quickly end the five-month-old conflict between the United States and Iran.
The United States and Iran have entered a new phase of their confrontation after US forces struck Iranian rocket launchers near the Strait of Hormuz and Tehran retaliated with missile and drone attacks against US military bases in Jordan, marking the first direct escalation between the two sides in more than a month.
The United Arab Emirates has strongly condemned the hostile Iranian attack on the country involving a drone that was intercepted by air defence systems over UAE territorial waters.
Qatar stepped up regional mediation efforts on Thursday, with Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani pressing Iran to restore freedom of navigation through the Strait of Hormuz, even as Tehran insisted that reopening the strategic waterway would depend on conditions being met by the United States.
Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani is due to visit Tehran on Thursday in a fresh diplomatic push to ease tensions between the US and Iran and help restore freedom of navigation through the Strait of Hormuz.
Iran and Oman have agreed to pursue a temporary shipping corridor through the Strait of Hormuz and launch efforts to clear mines from the strategic waterway, in the latest diplomatic push to restore the flow of vessels through the Strait.
Omani Foreign Minister Sayyid Badr bin Hamad Al Busaidi on Tuesday held constructive consultations with his Iranian counterpart Dr Seyed Abbas Araghchi in Tehran, Oman News Agency reported.
