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Airlines cancel flights due to Middle East conflict

Escalating conflict in the Middle East has forced airlines worldwide to cancel or suspend flights to destinations including Dubai, Riyadh, Doha, Tel Aviv, and Beirut. Carriers such as Air France-KLM, Lufthansa, Cathay Pacific, Singapore Airlines, and Indian airlines have scaled back services or rerouted aircraft, citing safety and airspace restrictions.

Thousands of passengers face disruptions, prompting airlines to advise checking flight status before travel. Airspace closures linked to the Iran‑related conflict have complicated international travel and repatriation, with further cancellations possible as geopolitical tensions persist.

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Brent oil nears $120 due to Middle East crisis

Brent crude oil, the global benchmark, is nearing $120 per barrel as tensions in the Middle East escalate. The rise comes after Iran attacked key energy facilities in the Gulf, sparking worries about supply disruptions that could affect the world’s oil markets.

The attacks targeted major oil and gas sites in countries including Qatar, Saudi Arabia, Kuwait, and the UAE. Notably, Iran struck Qatar’s Ras Laffan LNG complex, one of the largest liquefied natural gas hubs in the world. These strikes came after an earlier Israeli attack on Iran’s South Pars gas field and caused damage that could slow production and exports.

Brent oil prices jumped to nearly $120 per barrel, while US crude prices also saw significant gains. Experts warn that if the conflict continues, oil prices may stay high or rise further.

A key concern is the Strait of Hormuz, a narrow sea passage through which roughly 20% of the world’s oil passes. Any disruption here could reduce oil supply even more, pushing prices higher globally.

The surge in oil costs has also affected other markets. Stock indices in Asia, Europe, and the US have fallen as investors worry about rising energy prices and the impact on inflation. Natural gas prices in Europe have also increased, adding to energy cost concerns.

Countries that import large amounts of oil, such as India, face higher fuel prices, which can lead to increased costs for transport, manufacturing, and everyday goods. Rising energy prices may also put pressure on governments and consumers alike.

Also Read: Iran hits the world’s largest LNG hub in Qatar

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Middle East tensions push aluminium prices higher

Escalating tensions in the Middle East have pushed global aluminium prices higher, raising concerns among manufacturers and traders about potential supply disruptions. The geopolitical situation has increased risks to key shipping routes and export channels, tightening the availability of the metal in international markets.

Aluminium prices on global exchanges have risen steadily in recent weeks. On the London Metal Exchange (LME), the metal is trading close to $3,450 per tonne, while prices in India have climbed past ₹340 per kilogram on the Multi Commodity Exchange (MCX). The price surge reflects a combination of supply worries and steady demand from sectors such as automobiles, construction, packaging and electronics.

The Middle East plays an important role in global aluminium production and exports. The region produces about 6.5 million tonnes of aluminium annually, much of which is shipped through strategic trade routes such as the Strait of Hormuz. Rising geopolitical tensions have raised fears that disruptions to these routes could affect shipments, with around 5 million tonnes of supply potentially exposed to risk if the situation worsens.

At the same time, global aluminium inventories have been shrinking. Stocks held in warehouses monitored by the London Metal Exchange have dropped to about 446,875 tonnes, marking one of the lowest levels in recent months. Limited expansion of smelting capacity and production constraints in major producing countries, including China, have also contributed to tighter supply.

Despite the recent spike linked to geopolitical tensions, aluminium prices had already been on an upward trend over the past year. Globally, prices have increased by roughly 25 per cent, while the Indian market has seen gains of more than 30 per cent. Since the beginning of the year, aluminium prices have risen by around 12 per cent, supported by improving industrial demand and broader strength in base metals.

Industry experts also highlight new technological developments that could further boost demand for aluminium in the long run. Researchers are exploring aluminium-based battery technologies, including aluminium-ion batteries, as potential alternatives for future energy storage systems.

Also Read: LPG crisis sparks illegal cylinder sales

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Rising tensions in Middle East surges freight costs

Rising tensions in the Middle East are disrupting global trade routes and pushing air freight costs sharply higher, as airlines and shipping companies adjust their operations to avoid conflict zones.

According to a report by Reuters, air cargo rates have surged on several international routes after airlines began rerouting flights away from risky airspace in the region. The changes have reduced available cargo capacity and increased the cost of transporting goods.

Some air freight routes, especially those connecting parts of Asia with Europe, have seen prices climb by up to 70%. Logistics companies say the sudden increase reflects both limited capacity and higher operating costs.

The conflict has also affected shipping lanes in the Middle East. Important maritime routes near the Strait of Hormuz, one of the world’s most critical oil and trade passages, have faced disruptions due to security concerns. Several shipping companies have slowed operations or diverted vessels to safer routes.

As a result, many businesses are increasingly turning to air transport to move goods quickly and avoid delays. However, air cargo is significantly more expensive than sea freight, sometimes costing several times more. Industries that rely on fast delivery, such as electronics, pharmaceuticals and fresh food, are among the most affected.

Higher fuel prices have also added to the rising freight costs. Jet fuel has become more expensive as oil prices rise amid the geopolitical tensions. Airlines are also flying longer routes to bypass dangerous airspace, which increases fuel consumption and reduces the amount of cargo they can carry.

The impact of the conflict is also being felt in financial markets. Rising oil prices have affected commodities such as gold. Although gold is usually considered a safe investment during global uncertainty, analysts say stronger oil prices could slow expectations of interest rate cuts in the United States, putting pressure on gold prices this week.

Also Read: Tim Cook’s message on Apple’s 50th anniversary

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Middle East war clouds ground flights across India

Air travel across India faced major disruption on Monday as escalating tensions in the Middle East, involving Iran, the United States and Israel,  forced airlines to cancel or delay multiple services. Widespread airspace restrictions across parts of the Gulf triggered precautionary suspensions and rerouting of flights.

At Rajiv Gandhi International Airport, authorities confirmed 48 cancellations, largely affecting international flights to Gulf destinations along with some domestic sectors impacted by aircraft rotations. Passengers were seen waiting at airline counters seeking rebookings and refunds.

In Kempegowda International Airport, at least 24 flights were cancelled, primarily services connecting Bengaluru to Middle Eastern cities. Some Europe-bound flights were also rescheduled because they normally transit through affected air corridors.

Similar scenes unfolded at Chhatrapati Shivaji Maharaj International Airport and Indira Gandhi International Airport, where passengers travelling to destinations such as Dubai, Doha and Riyadh experienced last-minute cancellations and delays. Kochi airport also reported stranded flyers after Gulf-bound services were disrupted.

Aviation officials said the cancellations were precautionary following advisories warning of potential risks in parts of Middle Eastern airspace. With some countries temporarily restricting overflights, airlines opted to suspend operations rather than risk safety concerns.

The disruption had a cascading impact on domestic schedules as aircraft assigned to international routes were grounded, causing knock-on delays across networks.

Airlines have urged travellers to check flight status updates before heading to airports and to use official communication channels for rebooking options. With geopolitical tensions continuing, further disruptions remain possible if airspace restrictions persist.

Also Read: Brent crude jumps 13% as Iran moves on Hormuz