Saudis Push Maritime Coalition as Oil Finds Support
Oil prices remained supported near $90 per barrel despite an expected 8 per cent weekly decline, as security concerns in the Strait of Hormuz and the Red Sea continued to threaten global energy supplies.
Saudi Arabia has announced plans to lead a new international maritime coalition aimed at protecting commercial shipping in the Red Sea from attacks by Yemen’s Houthi rebels. Thirteen countries have reportedly joined the initiative, with Riyadh set to host the coalition’s headquarters.
The move comes amid heightened tensions in the Gulf, where Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed it had turned back several oil tankers in the Strait of Hormuz. Tehran has also rejected Oman’s proposal for a joint regional management of the strategic waterway, while no fresh U.S.-Iran negotiations are currently scheduled.
Other major developments in the global energy sector include:
- BP exits UK North Sea: BP has launched the sale of its UK North Sea oil and gas business, citing high taxes and an unfavourable investment climate.
- Egypt LNG terminal hit: A drone attack caused a fire aboard two gas vessels at Egypt’s Damietta port, including the Energos Winter floating LNG terminal.
- Kazakh crude exports disrupted: The Caspian Pipeline Consortium suspended crude loadings after renewed drone attacks on tankers at its Black Sea terminal.
- Rhine River crisis: Exceptionally low water levels on Germany’s Rhine River have disrupted inland fuel transportation, pushing freight costs higher.
- South Korea considers Venezuelan crude: Refiners are evaluating imports from Venezuela to offset potential Middle East supply disruptions.
- Turkey joins Kirkuk project: Turkey’s state-owned TPAO acquired a 15 per cent stake in BP’s Kirkuk oil redevelopment project in Iraq.
- Iraq-Turkey pipeline extended: Oil flows through the Kirkuk-Ceyhan pipeline are expected to continue after both countries agreed to extend transit arrangements.
- Venezuela reforms gas sector: Caracas is preparing legislation to encourage greater foreign investment in natural gas production.
- Cyprus gas project setback: Shell’s decision to sell its stake in the Aphrodite gas field has drawn criticism from Cypriot officials.
- Qatar resumes LNG shipments: A QatarEnergy LNG tanker successfully transited the Strait of Hormuz for the first time in nearly three weeks.
- Russia extends diesel export restrictions: Moscow prolonged its diesel export ban through August to stabilize domestic fuel prices.
- China’s energy transition milestone: Coal accounted for less than 50 per cent of China’s electricity generation during the first half of 2026, while renewables exceeded 40 per cent.
- Portugal plans windfall tax: The government approved a draft 33 per cent levy on excess profits earned by oil companies in 2026.
- Zijin-Allied Gold deal collapses: China’s Zijin Mining abandoned its proposed $3.9 billion takeover of Canada’s Allied Gold, opting instead for a minority investment.
The developments underscore persistent geopolitical risks facing global energy markets, even as crude prices retreat from recent highs.
Credit: Oilprice.com (Tom Kool).
