Energy

BERLIN: The leader of the United Arab Emirates began a state visit to Germany on Thursday, during which deals worth billions of euros will be signed in sectors including energy and technology, Emirati diplomats said.

Berlin rolled out the red carpet for Sheikh Mohamed bin Zayed Al-Nahyan, who was received with military honors by President Frank-Walter Steinmeier and was later to meet Chancellor Friedrich Merz.

Security was tight for the visit, with Berlin cordoning off flag-lined streets and deploying large numbers of police.

“Over the course of this visit, the UAE and Germany will make a number of key announcements and multibillion-euro agreements across investment, business, technology, AI and energy,” senior UAE diplomat Lana Nusseibeh said at a briefing ahead of the visit.

The visit comes as the US war against Iran has roiled the Gulf region, with US President Donald Trump’s erratic diplomacy unsettling many midsize powers and leading them to diversify their strategic and economic partnerships.

Merz visited the Gulf region in February, shortly before the US-Israeli war started against Iran. He said then that “we need such partnerships more than ever at a time when major powers are increasingly dominating politics”.

The UAE is Germany’s largest trading partner in the Gulf, with bilateral trade topping $15 billion last year, and many big German companies have a presence there including BMW, Siemens, ThyssenKrupp and rail operator Deutsche Bahn.

The UAE meanwhile has made major investments in Germany, including in the chemical industry and offshore wind power.

During Merz’s visit in February, German energy giant RWE and Abu Dhabi’s national oil company ADNOC signed a memorandum of understanding on LNG imports over the next decade.

Gulf countries have also long bought defense equipment from Germany and have shown interest in start-ups that make drones to bolster NATO’s deterrence efforts against Russia.

Germany, the largest EU economy, supports talks towards a European Union free trade deal with the Emirates.

The group Human Rights Watch called on German leaders during the visit to “publicly call out the United Arab Emirates’ human rights record and its role in regional conflicts”.

No joint press conference was scheduled with Merz and Sheikh Mohamed.

Ukraine launches one of its deepest strikes to date, targeting gas plants in Russia’s Arctic region.

Russian forces have launched attacks across Ukraine, killing at least seven people, according to Ukrainian officials, as Kyiv claimed responsibility for a drone attack that set off a fire at a natural gas plant deep in Russia’s Arctic region.

Four people were killed in a Russian attack in Mykolaiv in southern Ukraine overnight on Thursday, while three were killed in a drone attack on a shopping centre in the northeastern city of Sumy, according to Ukrainian authorities.

Heorhii ⁠Reshetilov, the acting governor of the Mykolaiv region, said the Russian strikes there hit both civilian and industrial infrastructure, killing two men and two women. At least 19 others were wounded, he said on Telegram.

The attack in Sumy left at least 14 people wounded, according to Oleh Hryhorov, head of the Sumy Regional Military Administration. Three of the victims were children, he said on Telegram.

The Russian Ministry of Defence confirmed the attack in Mykolaiv, but said it targeted a drone warehouse. The ministry said it also hit the Ukrainian port of Chornomorsk and two vessels near Odesa on the Black Sea.

The targets of the strikes were being used for military purposes, the ministry claimed.

The attacks came after Russian authorities said Ukrainian forces had launched a drone attack on the country’s Yamal-Nenets region, which is located some 2,800 kilometres (1,700 miles) from the Ukrainian border.

Dmitry Artyukhov, the region’s governor, said the attack targeted an industrial facility in Novy Urengoy. The attack was repelled, but falling debris from the drone caused a fire, he said on Telegram.

“The main thing is that there were no deaths or injuries. The extent and nature of the damage are being determined,” he added.

Artem Zhoga, the Kremlin’s envoy to the Urals, said Wednesday’s strike was the first ever to hit the Arctic part of the region.

Ukraine’s Special Operations Forces (SOF) confirmed the attack in a series of posts on X.

“For the first time! Deepest strike of the war: Ukrainian SOF hit critical russian plants more than 3,000 km away,” it said. “Ukraine’s Special Operations Forces carried out the deepest strike inside russia since the beginning of the full-scale war.”

In the posts, the Ukrainian force claimed it “successfully struck” two gas plants, Novy Urengoy and Purovsky.

“Until today, the area was considered a safe rear zone for the aggressor,” it added.

The Ukrainian force said the facilities play a key role in Russia’s gas industry, processing large volumes of condensate from gas fields across the Yamal region, processing millions of tonnes of condensate per year.

Gazprom used ⁠to export gas from Yamal as far as Western Europe ⁠until relations broke ⁠down following the start of Russia’s war in Ukraine in 2022.

It estimated the region’s gas resources at ‌26.5 trillion cubic metres as of 2020, enough to cover global demand for more than ‌six ‌years.

Ukraine has escalated its long-range strikes on Russia in recent months, in retaliation for daily Russian bombardment of Ukrainian towns and cities.

Earlier this month, Ukrainian President Volodymyr Zelenskyy said his country’s drones would make Russian airspace “completely unsafe” for the duration of the war.

Just hours ago, the Saudi Aramco refinery at Jazan on the Red Sea was engulfed in flames after a Houthi missile and drone attack. Strikes at the heart of the Saudi’s energy infrastructure on the Red Sea, which acts as the remaining primary lifeline of energy exports out of the region, threaten to drastically impact global oil prices further, a concern we have been raising for some time. In the wake of the attack and additional fighting in the Persian Gulf, oil prices surged toward the $100 per-barrel mark.

“The Yemeni Armed Forces carried out a qualitative, large-scale military operation, targeting the Aramco company in Abha, Najran and the Economic City, Aramco in Jizan, and Khamis Mushait Air Base with dozens of ballistic missiles and drones,” Houthi spokesman Brig. Gen. Yahya Saree stated on Telegram. “The strikes were precise, by God’s grace, and direct, causing major damage to those facilities.”

Saree claimed that the strikes were “in response to the Saudi aggression that targeted our people and our country with 121 air strikes over the past three days.”

Saudi officials confirmed Houthi attacks and said they would retaliate.

“The terrorist Houthi Militia’s senseless attacks, the latest of which targeted civilian and economic sites in the cities of (Abha, Khamis Mashait, Jazan and Najran) resulting in injuries to (73) civilians, including women and children, constitute a blatant violation of the Kingdom’s sovereignty and a direct threat to the security and safety of its citizens and residents,” anti-Houthi coalition spokesman Maj. Gen. Turki Al-Maliki stated on X. 

“The Joint Forces Command of the Coalition will take all necessary operational measures to deter this Terrorist Militia and resolutely confront its hostile approach, in defense of the Kingdom’s sovereignty, the preservation of its national assets and the safety of its citizens and residents,” Al-Maliki added. “The Command will also take all necessary measures and actions to respond to the sources of the threat and neutralize its danger.”

Barrow pledges new power infrastructure, including a 24-megawatt plant, to tackle The Gambia’s worsening electricity crisis.

Gambian President Adama Barrow has said the country will boost energy supplies by next month, hoping to quell violent protests over prolonged power outages as the premier stands for re-election.

Protesters burned tyres and built barricades blocking traffic, demanding that Barrow resign, in The Gambia’s capital, Banjul, and nearby cities on Monday and Tuesday.

Police used tear gas to disperse crowds who gathered in multiple locations, including near Barrow’s residence and the National Water and Electricity Corporation (NAWEC) headquarters, which supplies the country’s electricity.

Barrow declared the outages an emergency and a “national security issue” during a visit to a NAWEC power station. In a national address, he announced that the government would install a 24-megawatt generation machine by the end of October.

“I know that the fans have stopped turning, children work in the dark, mothers throw away stale food, and the heat is unbearable by day and by night,” Barrow said.

The rolling blackouts are taking place during the West African country’s hot season and have lasted up to 48 hours in some places.

The Gambian president also announced an additional 50-megawatt solar power plant that would begin construction soon.

NAWEC Managing Director Gallo said the prolonged electricity cuts were in part due to climate change and the US-Israel war on Iran. The electricity provider, in a statement released in August, also claimed that it was experiencing an “unforeseen surge” in demand due to high temperatures.

The blackouts come just months ahead of the December presidential election, in which Barrow is running for a third term.

US military says it struck the five Iranian tankers after IRGC targeted a US warship twice in two days.

The United States has claimed attacks on five Iranian oil tankers in the Gulf of Oman and near Kharg Island after accusing Iran of launching ballistic missiles at a US warship twice in two days.

Iran responded to the attacks on Tuesday by firing missiles at US forces stationed at the Al Azraq base in Jordan. Amman said its air defences intercepted and destroyed 18 of 20 Iranian missiles, while the rest fell in open areas.

The exchange of fire comes amid escalating tensions in the Gulf, six months into the US and Israel’s war on Iran, with Tehran maintaining the closure of the Strait of Hormuz and Washington imposing a naval blockade on Iranian ports.

The hostilities briefly drove oil prices to $99.46 earlier on Tuesday.

In a statement, the US Central Command said Iran’s Islamic Revolutionary Guard Corps (IRGC) had targeted a US warship twice over the past two days. The warship “successfully evaded the attempted Iranian attacks” and “no American personnel were harmed”, it said.

The Central Command said it retaliated by destroying the Iranian oil carriers, M/T Kaviz, M/T Charminar, M/T Horizon 1, and M/T Riesco in the Gulf of Oman as well as M/T Derya near Kharg Island.

“American forces directed the crews to abandon ship before the vessels were struck and rendered inoperable,” the Central Command added.

Iran’s IRIB state broadcaster confirmed the attack near Kharg Island in the Gulf, which handled some 90 percent of Iran’s oil exports before the war. It reported that the crew was evacuated and said a second tanker was hit near the southern port of Jask on the Gulf of Oman.

The IRGC also said “several” Iranian commercial ships were hit, and said it retaliated by subjecting Al Azraq base in Jordan to “fierce missile strikes”. It claimed hangars used by US fighter jets were destroyed in the ballistic missile attacks.

It went on to claim ballistic missile attacks on the US Navy DDG-119 and DDG-53 destroyers, saying “significant damage was caused to these vessels”.

The IRGC also threatened to target oil tankers in Kuwaiti and Bahraini ports, warning crews there to evacuate immediately.

“We warn all the crews of oil tankers in the Kuwaiti and Bahraini ports… to immediately abandon their vessels, whether at anchor or at the ports, because they will be targeted,” it said.

Jordan’s Armed Forces, meanwhile, said its air defences engaged 20 ballistic missiles, “successfully intercepting and destroying 18 of them”. Two missiles “fell in unpopulated areas,” it said in a statement.

The attacks did not cause any casualties and specialised teams “have begun securing the locations where debris and shrapnel fell,” it added.

Earlier, the chief of staff of Iran’s Armed Forces, Ali Abdollahi, had warned that Tehran would strike US military installations across the region if Iranian tankers were targeted.

“The US aggressor army has given Iranian oil tankers an evacuation warning to hit them, so I announce that any attack on Iranian oil tankers will result in the targeting of US bases in the region by the armed forces of the Islamic Republic of Iran,” Abdollahi said on state TV.

US Secretary of State Marco Rubio, however, said Washington would continue to strike Iranian ships.

“Iran continues to try to hit US naval ships, and for every time they do that or try to do that, they’re going to lose tankers,” Rubio told reporters on a visit to Colombia.

RIYADH: Saudi-Russian cooperation has proven vital in supporting the stability of global energy markets and achieving a balance that serves the interests of both producers and consumers, the Kingdom’s foreign minister said on Tuesday.

During a visit to Moscow, Prince Faisal bin Farhan said the partnership between Riyadh and Moscow contributes to sustainable global economic growth and fosters cooperation across the economic, trade, and investment sectors.

Prince Faisal met with his Russian counterpart Sergey Lavrov who said that the minister’s visit offers a valuable opportunity to discuss Russian-Saudi relations which are witnessing year-on-year development across the trade, economic, investment, cultural, and humanitarian spheres.

Lavrov also affirmed his country’s sincere desire to contribute to efforts aimed at de-escalating the situation in the region and addressing regional issues.

The two ministers emphasized the importance of supporting the diplomatic path to resolve current regional and international challenges — including the Palestinian cause and the situation in Yemen.

They underscored the necessity of ensuring the security and freedom of navigation in international waterways, particularly the Strait of Hormuz and the Bab El-Mandab Strait.

Both sides affirmed their aspiration to advance Saudi-Russian relations which were established a hundred years ago.

Tehran has threatened “serious consequences” for South Korea if it interferes in the US-Israel war on Iran.

The warning comes amid reports that Seoul is mulling contributing to the US naval blockade of the Strait of Hormuz passage, which has hampered Iran’s oil exports.

In a statement posted on X on Monday, Ministry of Foreign Affairs spokesman Esmaeil Baghaei said Iran and South Korea had more than 64 years of diplomatic relations based on mutual respect and that Tehran values that friendship.

However, if South Korea joins the United States in its military actions against Iran at a time when the country is defending itself from what he called US aggression and “war crimes against women and children”, then there will be consequences, he warned.

Baghaei threatened that Iran would regard any military presence or participation in operations by another country in the Gulf and the Strait of Hormuz “would inevitably be regarded as direct support for the aggressor and would have serious consequences”.

“No sovereign and responsible country should succumb to US pressure and intimidation and become complicit in acts of aggression and horrific crimes against the great Iranian nation,” he added.

Seoul did not respond directly, but a Ministry of Foreign Affairs statement on Monday said it is communicating with the international community over the situation in the passageway.

Here’s what we know about how South Korea is getting roped in:

Why is South Korea involved?

Seoul, a close ally of Washington, has been under pressure from US President Donald Trump.

The issues began in mid-August, when Trump revealed in an interview, and later online, that he had spoken to South Korean President Lee Jae Myung and asked that Seoul give “a little hand” in the war on Iran.

According to media reports, the two leaders had spoken over the phone on May 17.

Seoul said, “No, thanks!”, according to Trump’s message on social media.

However, as South Korea now knows, saying no to Trump has repercussions.

On August 16, Trump announced that the US would significantly scale back joint military drills it holds annually with South Korea – the evening before they were scheduled to begin.

The Ulchi Freedom Shield (UFS) exercises are meant to sharpen Seoul’s readiness in case of a North Korean attack. They usually last for more than 11 days but were reduced to five.

In a post on his Truth Social site, Trump claimed the drills were “costly” and that they send a “hostile” signal to North Korean leader Kim Jong Un, with whom he is trying to build a relationship. South Korean Foreign Minister Cho Hyun said in parliament there was no warning from the US.

Trump also questioned why South Korea would refuse his request when thousands of US soldiers are stationed on the Korean Peninsula.

The US also cancelled another military exercise scheduled for September, although South Korea’s military revealed it received a notification much earlier in June, with Washington citing constraints due to the war on Iran.

How has South Korea responded?

President Lee, a liberal who pushes for a dialled-down defence posture, has opted to negotiate. His office earlier released statements saying it hopes for “meaningful dialogue” with Trump.

South Korea’s Yonhap news agency reported on Monday that Washington has, however, “ratcheted up pressure” on Seoul.

On Friday, a South Korean presidential official told Yonhap that Seoul could consider a military contribution to international measures seeking to free up navigation in the passageway as long as it does not affect the country’s defence readiness.

South Korea is looking at various options, the official said, including possible cooperation with France, the United Kingdom and other allies on sending noncombat and search-and-rescue forces.

The South Korean military has also started reviewing assets and troops that could be deployed, including maritime patrol aircraft, explosive ordnance disposal teams and unmanned mine detection and clearing systems, he added.

Such a move would be unpopular. The opposition has spoken out against a possible deployment, as have some within Lee’s ruling Democratic Party. Many South Koreans have also protested against the US-Israel war on Iran.

What is the history of US-South Korea relations?

South Korea became one of the US’s closest allies after Washington backed Seoul against Pyongyang in the Korean War of 1950.

The US supported Seoul’s economic and military growth in the years after. Under a treaty, some 29,000 US soldiers have been stationed permanently on the Korean Peninsula since the end of the war. Seoul has also relied on US defence might to deter nuclear-armed North Korea.

In return, South Korea supported several US wars, including the Iraq War, and is designated an important non-NATO ally.

In 2025, however, Washington imposed a 25 percent tariff on the country, testing relations. Seoul opted to negotiate rather than retaliate, leading the US to lower tariffs to 15 percent.

Many South Koreans were also alarmed after hundreds of South Koreans were arrested in Immigration and Customs Enforcement (ICE) raids on a Hyundai plant in Georgia in September 2025.

Last October, Trump travelled to Seoul in a historic state visit, and earlier this year, President Lee visited the US. Lee is also trying to resume dialogue between Washington and Pyongyang.

How is South Korea being affected by the US-Israel war on Iran?

South Korea is facing an economic crisis. The country relies on the Gulf supplies via the Strait of Hormuz for 60 to 70 percent of crude imports, meaning supply is being severely hit. The war has led to soaring inflation, causing the Korean won to fall to a 17-year low.

Seoul therefore has an interest in freeing up the strait. However, under Korean law, the government will require parliament’s approval before a military deployment, although some governing party members could oppose it.

Oil prices are rising to nearly a six-week high amid a wave of strikes between the United States and Iran in the Strait of Hormuz, through which roughly a fifth of the world’s oil supply travels during peacetime.

On Monday, Brent oil futures, the global benchmark, rose to hover around $97 a barrel — up 9 percent over the last five days and 19 percent over the last month. Monday’s market moves are approaching the highest point since July 24th, when prices topped $97.93.

US West Texas Intermediate crude similarly rose to $92.27 a barrel, up 79 cents, also a near six-week high.

In recent days, strikes escalated in the Strait of Hormuz. The US hit three Iranian oil tankers on Saturday, while Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had struck three tankers and three US-linked vessels in other areas.

“This is a reflection of continued conflict and exchange of fire. The supply deficits globally are persisting, and there is little end to these shortages,” Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security (CNAS), told Al Jazeera.

On Monday, Saudi Aramco’s Jizan facilities were struck for the second time in the last month, according to reporting from the Financial Times that cited two people familiar with the matter.

“The fact that a Saudi refinery in Jizan was hit, possibly delaying its return to production, didn’t help,” Ziemba added.

Amid increased strikes, there’s less traffic in the Strait of Hormuz, with an average of 10 commodity ships crossing the vital chokepoint each day over the last 10 days, according to Kpler, a data analytics platform.

“Crude went back down to what the pre-war level was in early July. Then it increased again, and then it reduced again, and now it’s increasing again on this weekend’s exchange plus the Aramco attack,” Arif Gasilov, a partner at the Gasilov Group, an energy advisory firm, told Al Jazeera.

“I would say that you might eventually see an inflection point, depending on how long this keeps going on, where a ceasefire doesn’t move the market at all, maybe by just a dollar or two.”

US consumers pinched

US consumers are feeling the impact of heightened oil prices at the petrol pump. The average price for a gallon (3.78 litres) of petrol has jumped 7 cents over the course of a week, reaching $4.15 nationally on Monday, up from $4.08 this time a week ago, according to the American Automobile Association (AAA), which tracks daily petrol prices.

That’s up from $4.04 this time a month ago and $2.98 from February 28th, when the US and Israel first struck Iran, marking a 39 percent increase since the war began.

Last week, diesel prices hit all-time highs at $5.85 per gallon.

“US diesel prices have never been this high, and now the countdown starts for the trickle-down to everything consumers buy… record diesel will start funnelling down into the economy,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a post on the social media platform X.

Prices have continued to climb since, with average prices on Monday topping $5.90 per gallon.

“Markets are pricing in longer disruptions. It continues to be in product markets where the biggest disruptions lie, though, including diesel,” Ziemba added.

Those price gains are weighing on Americans, who have spent an average of $764.59 per household on fuel since the war began. That’s $418.82 more than usual, according to Brown University’s Watson School of International and Public Affairs.

Ahead of the US’s September 5-7 Labor Day weekend, the unofficial end of summer and a popular time for US travel, AAA forecasts showed a 20 percent increase in flight costs compared to the same weekend last year.

Ahead of the midterm elections, the economy is emerging as a key issue for US voters — and a potential warning sign for Republicans. Polls show voters souring on President Donald Trump’s handling of the economy, with his economic approval rating falling to a new low in a recent Financial Times poll. Just 17 percent of Americans approve of his handling of the economy.

An Economist/YouGov poll similarly found that 39 percent of Americans believe Democrats are doing a better job handling the economy, compared with 32 percent who said Republicans are.

China pressures

Southeast and East Asian markets rely more heavily on imports travelling through the Strait of Hormuz directly than the US, but Beijing has moved to insulate itself from the disruption by turning to domestic sources, including its strategic petroleum reserve (SPR).

“China has been managing this situation successfully since the beginning of the war. We know that China has many domestic resources, despite rising oil prices,” John Gong, an economics professor at the University of International Business and Economics, told Al Jazeera.

“China has been conserving its oil and gas consumption for quite some time now. China was prepared for these challenges,” Gong said.

He also stressed that China’s close relations with Russia give Beijing another source of supply, with Moscow able to provide nearly half of China’s daily oil needs.

China has also begun tapping into its SPR while reducing its reliance on imports, as Beijing accelerates a broader shift towards alternative energy sources and vehicles that require little or no oil to operate.

“We have national strategies focused on transitioning to clean energies like solar and green power,” Gong said. “When we look at the vehicles purchased in China, more than 50 percent of cars sold on the Chinese market are electric.”