Happy Monday everyone!

Tensions in the Middle East are soaring. Iran’s top security body is weighing whether to shut the Strait of Hormuz — a vital global energy chokepoint — following unprovoked US strikes on Iran. Airlines including British Airways and Singapore Airlines have canceled flights and are rerouting around the region, avoiding Iranian, Iraqi, Syrian, and Israeli airspace. Meanwhile, in Egypt, fintech giant Valu is preparing for its EGX debut within 24 hours. With 800k active users, rising profits, and Amazon recently acquiring a stake, the listing marks a major milestone for one of the region’s fastest-growing consumer finance platforms.

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Iran Considers Closing Strait Of Hormuz After Unprovoked US Strikes — Final Decision Rests With Supreme Security Council

🟪 What Is It About

• Iran's Supreme National Security Council will decide whether to close the Strait of Hormuz, a key global energy chokepoint, following overnight, unprovoked US airstrikes on Iran.

• Press TV, Iran’s state-run broadcaster, confirmed the decision is not yet final, despite some Iranian lawmakers reportedly backing the measure.

• Esmail Kosari, a Revolutionary Guards commander and member of parliament’s national security commission, said parliament is leaning toward closure, but only the Supreme Council can authorize it.

🟨 Why It Matters

• The Strait of Hormuz handles around 20% of the world’s oil and gas shipments — any disruption could shock global energy markets and spike prices.

• The move marks a serious escalation in tensions between Iran and the U.S., coming amid heightened regional instability and increased Western pressure.

• Iran has repeatedly used the threat of closing the strait as a geopolitical lever, but has never followed through— if it does now, the repercussions could be severe.

🟩 What’s Next

• Iran’s Supreme National Security Council is expected to make the final call in the coming days.

• Foreign Minister Abbas Araqchi declined to confirm the closure plan, saying only that “a variety of options” are on the table.

• Global energy markets, Gulf states, and international navies will be watching closely for signs of military buildup or shipping restrictions.

• If implemented, a closure could trigger Western military responses, shipping reroutes, and possibly new regional conflict flashpoints.

Markets

Global Airlines Reroute Flights After an Unprovoked Attack by US on Iran, Heightening Middle East Airspace Risks

🟪 What Is It About

• British Airways and Singapore Airlines have cancelled flights to Dubai and Doha, citing safety concerns after the U.S. launched overnight strikes on three Iranian nuclear sites.

• Flight tracking data from FlightRadar24 shows airlines are avoiding Iranian, Iraqi, Syrian, and Israeli airspace, opting for longer detours via the Caspian Sea, Egypt, and Saudi Arabia.

• Airspace restrictions and missile risks across the Middle East have intensified since Israel’s June 13 strikes on Iran, prompting a regional flight crisis.

🟨 Why It Matters

• The U.S. strikes mark a sharp escalation in Middle East tensions, now triggering widespread aviation disruptions.

• Airlines are incurring higher operational costs due to rerouting — including fuel burn, flight time, and crew hours — creating ripple effects across global aviation schedules.

• The region’s airspace has become increasingly dangerous for civil aviation due to missile and drone activity, a growing concern reminiscent of the 2020 Ukraine International Airlines disaster in Iran.

🟩 What’s Next

• More airlines are expected to suspend or reroute flights, especially as countries reassess risk levels in real time.

• Evacuations are underway: Japan has already removed citizens via Azerbaijan, while New Zealand is dispatching a Hercules C-130J to the region to support possible evacuations.

• Israel has closed its airspace and suspended flights, though land borders with Egypt and Jordan remain open for now.

• The situation remains volatile — further military escalation or a closure of the Strait of Hormuz could cause broader aviation, trade, and energy supply chain disruptions.

Valu’s Big Moment: Egyptian Fintech Giant Set To List On EGX Today

🟪 What Is It About

• Egypt’s leading fintech platform Valu is just a few hours away from making its trading debut on the Egyptian Exchange (EGX), marking a major milestone for the EFG Holding-owned firm.

• Founded in 2017 by Walid Hassouna, Valu has grown into a consumer finance powerhouse, now commanding a 25% share of Egypt’s market with over 800,000 active users and 16,000 daily transactions — double from a year earlier.

• Despite macroeconomic headwinds like interest rate hikes and inflation, Valu has thrived, hitting EGP 420 mn in net profit in 2024, up from EGP 230 mn in 2023.

• Global tech giant Amazon recently acquired a 3.95% stake in Valu through a block trade ahead of the IPO.

🟨 Why It Matters

• Valu’s model has transformed Egypt’s credit and payments landscape, making it easier and faster to access financing, and pushing the use of “Pay with Valu” as a daily payment method rather than traditional loans.

• The fintech’s transaction engine has scaled aggressively, now processing 11 transactions per minute. Its prepaid card is the fastest-growing in Egypt, despite limited availability.

• Innovation has been core: from reverse consumer finance and peer-to-peer car financing to underwriting-as-a-service for other banks — Valu continues to push product boundaries.

• The company’s default rate remains at just 0.7%, and its model has helped 40% of customers access credit for the first time, making it a key driver of financial inclusion.

🟩 What’s Next

• Post-listing, Valu plans to scale breadth — financing everything from EGP 30 mobile top-ups to million-dollar yacht purchases — with an “Uber-like” model offering wide choices through one app.

• The firm’s core user base of 25-35 year olds will remain the focus, with continued investment in onboarding Gen Z and Gen Alpha to deepen lifetime customer value.

• With two more banks in the pipeline for its underwriting service and a mission to build Egypt’s largest daily-use payment ecosystem, Valu is positioning itself not just as a fintech, but as a lifestyle enabler.

Details extracted from Valu CEO Walid Hassouna’s interview with Enterprise.

🔍From Smashi Business’ Desk

• Emirati entrepreneur Mohamed Alabbar Expanded Beyond Real Estate with Launch of Regional Media Channel “Lana”.

• "Take the money." — That’s the no-nonsense advice from Hasan Haider, Managing Partner at Bahrain’s +VC.

• Dreamers: From selling lashes with her sisters to building a million-dollar fragrance empire — Mona Kattan is reshaping what modern luxury smells like.

🔍In other news…

• Investors brace for oil price spike after US bombs Iran  

• Reuters Exclusive: Qatar holds talks with energy companies on risk of Israel-Iran conflict, sources say

• Britain agrees $2.7 billion investment partnership with Bahrain

• Saudi prince to launch $5bn funds for GCC food security

• AlAbbar’s Eagle Hills is to develop a Bulgari-branded luxury resort and residential project, scheduled to open in 2030

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