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Oil and Gas Important in Times of Conflict, Aramco CEO & Reroutes Costing Gulf Airlines $6500/Flight
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Wednesday, June 18, 2025
Happy Wednesday everyone!
As the Israel-Iran conflict drives up oil prices, Aramco CEO Amin Nasser emphasized the enduring importance of oil and gas during crises. Meanwhile, Gulf airlines are under pressure as flight detours and fuel surges raise operating costs at the height of summer travel. Amid the uncertainty, Dubai’s Binghatti Holding is doubling down on growth, launching a $1 billion Shariah-compliant asset management arm to tap into alternative investments.
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Oil And Gas ‘Crucial In Times Of Conflict,’ Says Aramco CEO Amid Israel-Iran Conflict
What is it about?
Amin Nasser, CEO of Saudi Aramco, emphasized the critical role of oil and gas during periods of geopolitical conflict, speaking via video at the Energy Asia Conference in Kuala Lumpur.
His comments follow a spike in oil prices triggered by the Israel-Iran conflict, with Brent crude jumping after Israel’s uncalled for and illegal strikes on Friday.
Why it matters
Nasser highlighted how energy security concerns are resurging amid global conflicts, calling oil and gas “indispensable” in such periods.
He stressed that renewables are not yet capable of meeting global demand alone, pointing to a transition cost of up to $200 trillion to reach net-zero emissions.
His remarks reflect a growing industry consensus that energy transitions must balance sustainability, security, and affordability.
What’s next
As tensions in the Middle East persist, expect continued volatility in oil markets, keeping fossil fuels central to energy and geopolitical strategy.
Aramco remains a pillar of the Saudi economy, with its revenues vital for funding the Kingdom’s Vision 2030 diversification agenda.
Nasser’s warning underscores a likely policy recalibration, with traditional energy sources retaining a strong role in the global mix even amid green transition efforts.
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Markets
EGX 30 | 30,725.96 | -1.02% |
DFMGI | 5,372.36 | -0.641% |
ADX | 9,536.38 | -0.506% |
Tadawul | 10,713.82 | -1.41% |
Flight Detours And Fuel Surge Squeeze Gulf Airlines During Peak Travel Season
What is it about?
Gulf airlines are facing higher operational costs as conflict between Israel and Iran forces widespread flight detours and fuels a rise in oil prices, as per AGBI.
Major carriers like Emirates, Etihad, Qatar Airways, Flydubai, and Air Arabia have rerouted European-bound traffic via Red Sea, Egypt, and northern Saudi Arabia, adding up to 90 minutes of extra flight time.
The fuel burden is significant—with each wide-body flight (e.g., Boeing 777 or A380) to the UK potentially costing $6,500 more, or $4 million monthly on select routes.
Why it matters
The crisis coincides with peak summer travel (June–August), a critical profit window for Gulf carriers.
Rising Brent crude prices (up 1.6% to $74.40 per barrel) and longer routes are denting margins despite resilient cost structures and fuel hedging.
The industry is grappling with schedule integrity, premium passenger retention, and investor pressure—as shown by stock drops in Jazeera Airways (-13%) and Air Arabia (-8%).
Wizz Air has also suspended regional routes and restricted overflight of Israeli, Iraqi, Iranian, and Syrian airspace.
What’s next
The Flynas IPO is still set to debut on Saudi Arabia’s Tadawul exchange tomorrow, despite concerns over market timing due to regional instability.
Analysts warn of earnings risk for Gulf carriers, especially after a year of strong stock performance and high growth expectations.
With ongoing uncertainty, the situation may test the financial resilience and adaptability of even the region’s strongest aviation players.
Dubai’s Binghatti Unveils $1 Billion Shariah-Compliant Asset Management Arm
What is it about?
Binghatti Holding, a prominent Dubai-based real estate developer, has launched Binghatti Capital, an asset management division focused on Shariah-compliant private credit and real estate investments.
The new entity has secured regulatory approval to operate from the Dubai International Financial Centre (DIFC) and will serve institutional, high-net-worth, and family office clients.
Binghatti Capital aims to manage up to $1 billion in assets, offering alternative investment products that align with Islamic finance principles.
Why it matters
This move marks Binghatti’s entry into financial services, complementing its real estate and hospitality operations to create a vertically integrated ecosystem.
It reflects a broader trend of developers evolving into diversified investment platforms, controlling everything from acquisition to capital deployment.
The launch supports Dubai’s ambition to grow as a hub for Islamic finance, while attracting foreign direct investment (FDI) into the UAE’s alternative asset space.
What’s next
Binghatti Capital will focus on acquiring and developing off-plan residential projects and real estate supply chain financing.
It will create synergies with Binghatti Developers, enabling tighter control and efficiency across the full real estate value chain.
With nearly AED 35 billion in active projects, Binghatti is positioning itself as a regional powerhouse in both development and real estate finance.
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