Gulf

TEHRAN: Iran’s Guards said on Wednesday that a new “prohibited zone” outside the Strait of Hormuz would cover parts of the Gulf of Oman and beyond, adding that they would announce the exact coordinates later.

“It approximately starts from the direction of Chabahar, covering part of the Sea of Oman and another part of the Arabian Sea, along the route that can lead to the Strait of Hormuz,” Guards spokesman Hossein Mohebi told state television.

“If a vessel enters that area without coordination, it will be subject to our sanctions… It means, for example, that if it later wants to come and use the Strait of Hormuz, if it wants to receive services somewhere, such as insurance or other related services, we will refrain from providing those services,” he added.

The announcement comes after Iran reported “significant progress” with Oman, both coastal states on Hormuz, in discussions of a temporary shipping route through the strait.

Iranian forces have restricted traffic through Hormuz, a vital energy conduit, since the start of the war with the United States on February 28. The US has imposed a counter-blockade on Iranian ports.

Tehran has required vessels to seek permission to transit, insisting there will be no return to the pre-war system of unrestricted navigation.

On Tuesday, Iranian forces said they have struck 10 vessels which attempted to cross Hormuz without coordination.

US President Donald Trump said in recent days that American forces have helped facilitate the passage of vessels through the strait, “averaging 30 ships a night.”

Iran’s security chief Mohsen Rezaei said Sunday that the US tries each night to help five or six ships through, “and usually these ships get hit.”

During his interview on Wednesday, Mohebi said the US should also “release $24 billion in Iran’s frozen assets, and refrain from any interference in the country’s nuclear and missile capabilities.”

AIRLINES have been warned not to fly over the Gulf until next month due to rising tensions in the Middle East.

What this means for Brits is your long-haul flight could take a different (and longer) route, or even become more expensive.

The European Union Aviation Safety Agency (EASA) tightened its warning on flights over the Gulf earlier this week.

It has warned airlines to avoid airspace over ‌the waters of the Persian Gulf within Bahrain, Kuwait, Qatar and the UAE until September 30.

However, this area is considered one of the world’s busiest flight corridors.

For those on long-haul journeys from the UK, these countries are quite often used as stopovers.

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In its advice, the EASA said: “While risks over the waters of ​the Persian Gulf remain high, operations necessary for arrivals ​at or departures from aerodromes within the affected Flight Information Regions may be conducted with sufficient mitigation.”

However as the EASA warning is advice and not a complete ban, airlines can factor the risk into their route planning.

There won’t be a suspension of flights but some are likely to be rerouted with journeys set to become longer.

But lots of airlines have already been doing this since the war began earlier this year by avoiding certain airspaces.

Some have diverted further south over the Arabian Sea or rerouting to the eastern Mediterranean and Central Asia.

Schedules could change too as flights could become longer and aircraft types could be altered to accommodate higher fuel loads.

Ticket prices could be affected too – and not in a good way.

Earlier this year, International Airlines Group (IAG), which owns British Airways, Iberia and Aer Lingus warned of potential price increases.

To offset the increase in fuel costs caused by the closure of the Strait of Hormuz, it said that there could be an extra cost through ticket prices.

Business class and other premium long-haul passengers most likely to be affected.

Chief executive Luis Gallego said airlines need to increase fares to help offset fuel costs, which make up about a quarter of their spending.

The conflict in Iran has added as much as $100 (£77) per person to the price of long-haul flights from Europe, April figures have revealed.

The Transport & Environment (T&E) said in a statement that disruption to jet fuel supplies is likely to trigger higher ticket prices for passengers.

T&E added that the rise in jet fuel prices has increased the average fuel cost by £77 for each passenger on long-haul flights leaving Europe.

For a family of four heading on a long-haul holiday that’s an increase of £308.

The global energy order is changing.

US President Donald Trump celebrated on Truth Social what he called the “biggest oil deal in history” – a 100-year concession on 17 oil fields in Venezuela that would secure 65 billion barrels of oil.

Around the same time, QatarEnergy informed Edison, one of its biggest European customers, that force majeure on its liquefied natural gas (LNG) deliveries would continue until early November. Five more cargoes were cancelled, taking the total to 29, or about 3.8 billion cubic metres of gas.

The contract has run since 2009 and normally covers roughly a tenth of Italy’s annual consumption. Edison has kept supplying its customers by finding replacement cargoes elsewhere, including in the US.

For decades, the bargain between Washington and the Gulf was clear. The US protected the region and kept its sea lanes open; Gulf producers supplied the energy on which the global economy depended and settled their sales in dollars to benefit the US economy.

That bargain has been turned on its head. America no longer simply protects Gulf energy. It competes with it, and increasingly profits when the Gulf cannot deliver due to insecurity.

Six months of war have reportedly impacted Qatar’s LNG exports significantly. Other Gulf countries like Kuwait, Saudi Arabia and the UAE have seen a substantial drop in oil exports as well. Meanwhile, US oil and gas have moved into the space left behind, with US energy giants raking in record-high profits.

It is important here to distinguish between the US as a government and the dense network of private interests that operates around it. Washington wants strategic leverage over Iran and continued influence over the Gulf states. Energy companies want access to reserves, favourable regulation, profitable prices and new customers. Trump brings the two together under the banner of energy dominance. State power opens the door; private capital walks through it.

Israel adds another layer. Chevron operates its two main offshore gas fields, owning almost 40 percent of the Leviathan gasfield and 25 percent of the Tamar gasfield. Leviathan is expanding after a $35bn agreement was signed last year to increase exports to Egypt.

Israel is therefore not an independent energy rival to the US in the way Qatar is. Its growing role as an Eastern Mediterranean gas hub is tied to a US operator and fits comfortably within a US-backed regional system linking Israel, Egypt and Jordan.

Chevron is the thread running through much of this story. It has major interests in US production, controls Israel’s most important gas assets and is positioned to expand in Venezuela. This does not mean Chevron determines foreign policy. It does show how easily the exercise of American power can translate into commercial opportunity for American companies.

Israel is also determined not to let the confrontation with Iran end on terms it considers not to be in its interest. The US-Iran memorandum of understanding signed in June fell well short of Israeli war aims. Israel said it was not bound by all its provisions, insisted on freedom of action in Lebanon and briefly resumed attacks while the US was trying to sustain negotiations.

For Israel, ceasefires have tended to be pauses, not settlements: opportunities to regroup while preserving the option of striking again. The reasons are chiefly strategic. Israel wants to prevent Iran from rebuilding its nuclear, missile and regional capabilities, while Israeli leaders fear accepting a deal and looking weak ahead of elections.

The consequences of Israel pushing for continuous conflict align with US energy interests. Continued pressure on Iran keeps the Strait of Hormuz insecure, Gulf exports vulnerable and risk premiums for energy transport high. Israel and US energy companies do not need to be following a common plan for their interests to reinforce one another.

Price is where the argument becomes clearest. Trump talks constantly about cheap oil, but US producers cannot prosper if it becomes too cheap. A Dallas Federal Reserve survey found that US companies needed an average price of about $43 a barrel to operate existing wells and $66 to drill new ones profitably. The two main Permian basins sit at roughly $61 to $62.

Trump therefore needs a narrow band: oil cheap enough to contain inflation, but expensive enough to keep shale, fracking and export investment alive. Gulf insecurity helps maintain it. The disruption need not be catastrophic. It only has to keep prices at a point where the next American well makes economic sense.

This may help explain the attraction of a no-war, no-peace outcome. A full regional war could close Hormuz, send prices soaring and threaten Chevron’s Israeli operations. A durable settlement would remove the risk premium, restore confidence in Gulf supply and limit Israel’s freedom of action.

Managed insecurity sits conveniently between the two: enough restraint to protect US-linked production, but not enough diplomacy to make Gulf energy entirely dependable again.

Israel keeps Iran under pressure. Washington retains leverage over its allies. US producers gain customers and commercially supportive prices. The danger lies in the convergence: Several powerful actors now have something to gain from preventing the crisis from reaching a final resolution.

The Gulf still holds vast reserves and enjoys production costs US companies cannot match. But reserves alone no longer decide market power. Reliability does. Only an estimated 3.5 to 5.5 million barrels a day can bypass Hormuz through Saudi and Emirati pipelines. The rest remains exposed to a single point of failure, despite decades of arms purchases, foreign bases and security guarantees.

The greatest threat to the Gulf’s energy future is not depletion. It is that customers learn to live without it. Every delayed tanker strengthens the case for an Atlantic alternative. Every Qatari cargo replaced by US LNG creates a relationship that may endure long after the war.

US power once rested partly on protecting the flow of Gulf energy. It now rests increasingly on replacing it.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.

US says its forces ‘successfully’ completed a wave of strikes against Iranian targets, accusing the IRGC of attempted attacks on shipping and US service members.

Khamenei urges Gulf rulers to confront their ‘real enemy’ as Iran keeps the Strait of Hormuz restricted amid stalled diplomacy.

Iran’s Supreme Leader Ayatollah Mojtaba Khamenei has urged Gulf leaders to identify their “real enemy” and confront it, as Tehran maintains its hard line over the Strait of Hormuz, while regional mediators push for renewed diplomacy.

“My emphatic and repeated recommendation to the rulers of Islamic countries, especially the countries of West Asia and the Gulf, is to identify your real enemy, understand his plan and confront it,” Khamenei said in a message published on Sunday to mark the birthday of the Prophet Muhammad.

Khamenei has not appeared publicly since the US-Israeli attacks on February 28 that killed his father and predecessor, Ayatollah Ali Khamenei.

The message comes as the standoff over the Strait of Hormuz, a key waterway through which about 20 percent of global oil and liquefied natural gas shipments passed before the war, remains unresolved.

Deputy Foreign Minister Kazem Gharibabadi said on Saturday that Iran had reached an understanding with Oman on a temporary maritime route, but that its implementation would depend on the United States fulfilling its commitments under the memorandum of understanding the countries signed in mid-June, which has since lapsed.

“The Strait of Hormuz is closed,” Gharibabadi said, adding that any vessel seeking to cross would have to coordinate with Iran.

“Implementing this understanding requires the other side, particularly the US, to fulfil its commitments. Whenever these commitments are implemented, Iran will also take its measures,” he said.

Iran and Oman have been discussing a temporary joint shipping corridor and mine clearance, while Qatar and Pakistan have intensified mediation efforts. Qatar’s Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani visited Tehran on Thursday, where talks included de-escalation and restoring shipping through Hormuz.

Recorded transits through the strait remain low. The Reuters news agency, citing Kpler data, said seven commodity vessels crossed the Strait of Hormuz on Thursday, down from 17 a day earlier and below the 10-day average of 15.

The International Maritime Organization said on Friday that up to 400 ships carrying about 6,000 seafarers have been unable to leave the Gulf safely since the US-Israel war on Iran began.

“Renewed political will and cooperation is needed,” IMO Secretary-General Arsenio Dominguez said, calling for practical measures to restore freedom of navigation through the strait.

The diplomatic push is unfolding alongside mounting economic pressure on Tehran. Iran’s annual inflation reached 66 percent last month, while President Masoud Pezeshkian said imports and exports had fallen nearly 35 percent because of US sanctions and the naval blockade.

Washington has also widened its sanctions campaign, targeting Iran-linked individuals and entities and moving to restrict the branches of Egypt’s Banque Misr bank in the United Arab Emirates from dollar transactions over alleged dealings with Tehran.

Despite the pressure, Tehran has shown no sign of yielding on Hormuz. Pezeshkian has instead called for reviving the June interim agreement with Washington.

“We can solve our problems and gain our privileges with the memorandum of understanding,” he said.

Six months into the war on Iran, the largest US oil companies have posted their biggest profits since 2022, selling less oil at far higher prices. But the conflict is also putting their longstanding Gulf investments at risk, exposing the industry’s uneasy balance between wartime gains and mounting geopolitical vulnerability for investors worldwide.

Since the war began on February 28, Brent crude has risen about 22 percent, from $72 to $88 a barrel.

The Strait of Hormuz – through which one-fifth of the world’s oil and natural gas was shipped before the war – remains largely closed to commercial traffic, though Iran and Oman agreed last week on a temporary maritime route. Iran says the strait will not fully reopen until the United States fulfils its commitments under a lapsed interim peace deal, leaving longer-term security and management arrangements unresolved.

In the absence of a lasting resolution, the disruption is likely to continue supporting higher energy prices and creating windfalls for producers, despite placing energy companies’ regional assets and future projects at greater risk.

Rahul Choudhary, vice president of Upstream Research at Rystad Energy, an independent energy research company, said the conflict has already reduced the amount of oil and gas US energy firms are drawing from the Gulf region.

“Overall we expect US companies’ share of gas supplies [from the region] to fall by around 40 percent this year compared to last year [and] the share of oil supplies to drop by 30-35 percent,” he told Al Jazeera.

While higher commodity prices have helped offset the immediate financial impact, Choudhary said prolonged disruption is likely to delay major projects and weigh on the future growth plans of US oil and gas companies with a presence in the region.

Who has profited?

The surge in the oil price since early March, when Iran first closed the Strait of Hormuz, has delivered a windfall for oil companies, but gains have been tempered by challenges in the Gulf.

Chevron has limited exposure to Arab Gulf supply disruptions, with the region accounting for just 5 percent of its total global output. The group reported its highest quarterly profit in six years of $12bn in adjusted earnings on July 31.

ExxonMobil, by contrast, has been far more exposed to disruption in the Middle East, with the closure of the Strait of Hormuz and Iranian attacks on US-linked infrastructure in the region affecting its operations in Qatar and the United Arab Emirates (UAE), which together account for 20 percent of its global equity upstream supply, according to Choudhary.

“We already saw in H1 [the first half of] 2026, the company’s upstream earnings dropped by around $1.3bn compared to H1 2025, due to lower upstream volumes from the Middle East. However, the shortfall was covered well by higher commodity prices,” Choudhary said.

The contrast highlights a broader divide between those US energy companies which have benefitted from tighter global supply – and the corresponding rise in the oil price – and those with assets, partnerships or operations in the Gulf at greater risk of disruption caused by recent attacks on energy facilities.

Where are US energy companies exposed in the Gulf?

The Gulf’s energy sector is dominated by state-owned giants such as Saudi Aramco, Abu Dhabi National Oil Company (ADNOC) and QatarEnergy.

Although these national oil and gas companies retain control over the region’s reserves and core infrastructure, US energy firms have carved out strategic positions across the region.

US companies generate revenue through stakes in production assets, joint ventures, production agreements, refining and petrochemical projects, as well as through long-term contracts to provide equipment, engineering and operational expertise.

ExxonMobil has some of the largest US commercial interests in the Gulf.

The company has been a major partner in Qatar’s LNG sector for decades, holding stakes in several QatarEnergy LNG joint ventures linked to the expansion of the North Field. The field is the Qatari section of the North Field-South Pars structure, the world’s largest natural gas field, which Qatar shares with Iran, where it is known as South Pars. ExxonMobil also holds an interest in the UAE’s Upper Zakum offshore oilfield alongside ADNOC.

Similarly, ConocoPhillips joined the North Field East (NFE) and North Field South (NFS) expansion projects with QatarEnergy in 2022 to increase export capacity at Ras Laffan.

The US group, Occidental Petroleum, has become one of the largest foreign producers in Oman, operating the Mukhaizna heavy oilfield, the country’s biggest producing oilfield. It also holds interests in UAE gas and pipeline projects.

Chevron maintains a smaller but strategically important Gulf footprint. Through Saudi Arabian Chevron, the company operates oil assets in the Saudi-Kuwait Partitioned Zone, including the Wafra field. In July, it said it was exploring potential routes to move Iraqi crude to Mediterranean export terminals, which could reduce reliance on the Strait of Hormuz.

Where have attacks on energy facilities taken place?

According to the Armed Conflict Location and Event Data (ACLED), a US-registered independent conflict monitor, Iran and Iran-backed groups in the region have carried out at least 172 attacks on nonmilitary infrastructure across the six Gulf Cooperation Council (GCC) countries since the US and Israel launched their war on February 28.

Energy infrastructure has been hit hardest, with oil and gas facilities, along with power plants and desalination plants, accounting for nearly half (48 percent) of all strikes on nonmilitary targets.

The UAE, Kuwait and Bahrain have suffered the highest number of successful strikes, with the majority aimed at oil and gas facilities.

Among the sites that have been struck are Kuwait’s Mina Abdullah and Mina al-Ahmadi refineries, the Bahrain Petroleum Company oil refinery, and ADNOC’s al-Ruwais Industrial City and the Habshan gas complex.

There have also been several strikes on Saudi Aramco facilities, most recently a drone strike on July 27 on the Abqaiq processing complex, one of the most critical nodes in Saudi Arabia’s oil infrastructure, processing more than seven million barrels of oil per day.

Nasser Khdour, Middle East assistant research manager at ACLED, said: “Oil and gas facilities, power plants and water desalination plants are likely to remain key targets for Iran because disruption to these sectors can increase economic pressure on Gulf states, while disruption to global energy supplies increases prices and pressure on the US during periods of escalation.”

In March, a drone attack close to the Saudi Aramco-ExxonMobil SAMREF refinery in Yanbu disrupted oil loading at the city’s Red Sea port. While the attack had only minimal operational impact, it highlighted the vulnerability of US-linked energy assets in the region.

Qatar’s Ras Laffan Industrial City, the world’s largest LNG export hub, which hosts major joint ventures between QatarEnergy, ExxonMobil and ConocoPhillips, also came under repeated attack in March, at one point forcing the plant to halt production entirely. In June, an explosion as a result of a “technical malfunction” on Qatar’s Barzan gas project, where ExxonMobil holds a stake, killed at least 13 people.

“In terms of gas assets being impacted, major blows have been [dealt to] companies [that are] part of LNG projects in Qatar: ExxonMobil and ConocoPhillips,” Choudhary said.

He added that ExxonMobil’s share of LNG supply from Qatar is expected to fall significantly this year to about four million tonnes compared with 13 million tonnes last year, while ConocoPhillips has also experienced reduced volumes to one million tonnes this year compared with 2.5 million tonnes last year.

The attacks on Qatar’s LNG infrastructure could have longer-term consequences. Damage to LNG trains at Ras Laffan could take years to repair, according to QatarEnergy, while delays to Qatar’s North Field expansion projects could push back planned supply growth.

“The attack on LNG trains 4 and 6 at Rasgas damaged roughly 13 million tonnes of capacity, which will take anywhere between three to five years to come back online with a total repair cost estimate of around $3bn,” said Choudhary.

He added that the second most impacted gas project has been the Shah gas project in the UAE, in which Occidental Petroleum has a 40-percent stake and where drone attacks in March caused a fire at the gas plant that halted operations.

The conflict has also affected ExxonMobil’s oil interests in the UAE, Choudhary said. Production from Upper Zakum, where ExxonMobil has a 28 percent stake, was reduced between March and May when export routes were disrupted, limiting the ability to move offshore crude.

Beyond the UAE, the most significant impact on US companies’ oilfield operations played out in Iraq. A drone attack hit the Sarsang oilfield in March, followed by an explosion at one of its storage facilities in April, together causing damage to the field.

Looking ahead, Choudhary said higher prices could support cash flows, but prolonged conflict risks could threaten future growth. ExxonMobil’s $10bn Upper Zakum and Qatar LNG expansions could face delays, while ConocoPhillips remains exposed through investments in higher-risk markets, including its planned 42-percent stake in BP’s Kirkuk operations in Iraq.

“For companies like Chevron and Occidental Petroleum, whose presence are in less volatile countries like Israel and Oman respectively, the impact of escalations will not be as severe, as we have not seen significant disruption in these countries,” said Choudhary.

US oilfield service companies in the Gulf

Oilfield service giants, including US firms SLB (formerly Schlumberger), Halliburton and Baker Hughes, provide drilling technologies, equipment and operational expertise across the Gulf, supporting Saudi Aramco, ADNOC and QatarEnergy.

For oilfield service companies, the outlook is mixed, according to Chinmayi Teggi, energy research analyst at Rystad Energy, a research group. While higher oil prices and energy security concerns could lift demand over time, near-term margins remain under pressure from higher logistical costs, supply-chain disruptions and delayed projects.

“For the Big Three (SLB, Baker Hughes and Halliburton), the conflict continues to weigh on regional revenues,” Teggi told Al Jazeera, adding that second-quarter Middle East revenues were down 8-10 percent compared with the previous year across the three companies, while higher oil prices meant revenues were higher in other geographies.

However, a recovery in suspended operations and production could help drive growth into 2027.

For US companies, therefore, the Gulf remains both an opportunity and a risk.

“The impact on US companies will depend on the extent of exposure and countries in which these companies are present,” Choudhary said.

Their investments have secured US access to some of the world’s most important oil and LNG projects, but the conflict has exposed the risk of operating in a region where energy infrastructure has become increasingly vulnerable to geopolitical conflict.

US President Donald Trump has repeatedly warned Iran against restricting access to the Strait of Hormuz, arguing that the waterway must remain open to global commerce.

But for companies with billions of dollars invested across the Gulf, the challenge isn’t just about keeping shipments moving – it is ensuring the infrastructure remains secure, they say.

WASHINGTON — President Trump said Thursday he is renaming Lake Ontario to be known as “Lake America” in the United States as he exacerbates his trade war with Canada.

The Republican president signed an executive order directing the Interior Department to update the lake’s name in the U.S. geographic naming service. Trump cannot force Canada to follow his preferred naming convention, however.

Trump has been floating the idea of the name change in recent days as the U.S. announced it was imposing 50% tariffs on $20 billion worth of Canadian goods over the weekend after talks between the countries broke down. Trump has been needling America’s northern neighbor since he returned to the White House last year, suggesting the ally with whom the U.S. once had warm relations instead should be absorbed as the 51st state.

Canada responded to Trump’s import taxes this week by imposing retaliatory tariffs on $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment.

Trump, who signed the order as he was sitting at the Resolute Desk in the Oval Office, had a large sign behind him propped on a stand with a map of the Great Lakes. Over Lake Ontario, in big red letters, the map read “Lake America.”

On the other side of the president was another map with the words, “MAKING THE GREAT LAKES EVEN GREATER.”

The lake is one of multiple Great Lakes that the U.S. and Canada share borders along.

The office of Canadian Prime Minister Mark Carney did not immediately respond to a request for comment.

There is no single international body that determines names of international bodies of water, and Trump has wide latitude over how the U.S. government recognizes geographic places and landmarks.

Ontario Premier Doug Ford, who has traded insults with Trump, this week brushed aside the prospect of Trump changing the lake’s name as “a lot of rhetoric.”

The name Lake Ontario comes from the Huron Indigenous people’s word “oniatarí:io,” that means “lake of shining waters.” The province of Ontario, founded in 1867, took its name from the lake.

Trump said that while his action was not meant to send any particular geopolitical message, “Canada’s been ripping us off for a long time” on trade and military issues.

“They wanted to be treated like a state and they’re not a state,” the president said. “We just can’t do that anymore.”

“We love the people of Canada,” Trump added. “I don’t think their representatives do an appropriate job. Maybe they’ll change. I really don’t know. It doesn’t make much difference.”

The move is reminiscent of his move last year to rename the Gulf of Mexico as the “Gulf of America.”

Trump scribbled his name with a Sharpie pen on the executive order, then held it up for the cameras, offering, “And we filed all the necessary papers, documents, everything else.”

“We’ve notified all of the various people that we have to notify. So, we’ve done everything that you have to do,” he said. “And this is official, effective immediately.”

The executive order Trump signed shows that the changes, in fact, are supposed to be made within 30 days.

He also suggested his push to rename bodies of water may not be finished.

“So, if you think about it, we have a gulf and we have a lake. Now, all we need is an ocean,” Trump said. “So maybe we’ll have to change the name of the Atlantic and or the Pacific. Maybe we’ll change them.”

Price and Weissert write for the Associated Press. AP writer Rob Gillies in Toronto contributed to this report.

WASHINGTON — The Trump administration says it is temporarily pausing construction of a controversial border construction project in the Big Bend National Park while the head of the agency tasked with building the wall visits Texas to do an “on-the-ground evaluation.”

The project through the national park in southern Texas has faced fierce bipartisan opposition by critics who say that it is marring a pristine environmental area and that the region’s rugged and remote terrain already serves as a deterrent to migrants and smugglers.

Rodney Scott, who heads Customs and Border Protection, which is tasked with building the wall, announced on X that he was visiting Texas to do an evaluation.

“CBP is pausing all construction activity in Big Bend National Park while I visit and conduct a personal, on-the-ground evaluation,” Scott said.

Congress gave the Trump administration $46 billion last summer to build a wall from the Pacific Ocean to the Gulf of Mexico, and the administration has been racing ahead and waiving numerous regulations in an effort to swiftly build the wall.

Scott has said that he expects that they will build the first layer of the wall by the end of next year.

But they have run into fierce opposition in Texas especially when it comes to construction in and near Big Bend National Park and a state park to the west.

Santana writes for the Associated Press.

As the United States-Iran conflict draws renewed global attention to energy security, a quieter transformation is underway. Driven by the combined effects of El Niño and accelerating warming, the Gulf region is heating up significantly. Rising temperatures, prolonged droughts, and intense precipitation events are intensifying water scarcity and straining critical infrastructure.

For economies built on oil and gas, this environmental pressure creates complex compound risks. Unlike agriculture-based nations that face immediate crop shocks, Gulf countries confront structural vulnerabilities. Their heavy reliance on international grain markets exposes them to global price volatility, while a high dependence on energy-intensive seawater desalination ties water security directly to power consumption. Furthermore, rapid urbanization leaves critical infrastructure like power grids, ports, and data centers vulnerable to extreme weather and global supply chain disruptions.

Not surprisingly, recent adjustments to energy and water systems are no longer treated merely as environmental policies. They represent a fundamental restructuring of national development logic. In this era of extreme climate, long-term competitiveness depends less on hydrocarbon reserves and more on the upgrade of national capability systems.

Historically, the energy systems of Gulf countries focused primarily on supporting domestic growth and resource exports. Today, that strategic role has expanded to ensure the survival of modern society. Extreme heat drives up summer cooling demand and increases electricity consumption for critical infrastructure like desalination plants, transportation, and communications. According to the International Energy Agency (IEA), cooling and seawater desalination will account for roughly 40% of new electricity demand in the Middle East and North Africa by 2035.

This shift has transformed how governments view energy security. If energy systems determine whether Gulf countries can operate stably, water resources dictate the ceiling for their development. Long reliant on seawater desalination to overcome natural constraints, these nations now face soaring operating costs driven by rising temperatures and extreme weather. Vulnerabilities vary across the region. Countries like Kuwait, Qatar, and Bahrain depend almost entirely on desalination and remain highly sensitive to energy price fluctuations. Meanwhile, Saudi Arabia and the UAE are advancing water-saving technologies, wastewater recycling, and renewable-powered desalination to build resilience.

According to the World Bank’s Water-Energy-Food Nexus framework, Gulf countries must integrate energy supply, water management, wastewater treatment, and fiscal policy. A shock to any single component can amplify risks across the entire economy. For resource-based nations, while oil dictates the scale of wealth, water security increasingly governs the quality of development and the long-term viability of modern cities.

Faced with these structural pressures, Gulf strategies are shifting from risk mitigation to the cultivation of new global advantages. With annual global climate adaptation funding gaps remaining substantial, demand is surging for resilient infrastructure, water management, flood control, and smart agriculture. Armed with fiscal strength and large-scale engineering experience, Gulf nations are positioning themselves to capture these markets. Saudi Arabia and the UAE are deploying capital through sovereign wealth funds like the Public Investment Fund (PIF) and Mubadala into green hydrogen, smart cities, and sustainable infrastructure.

At the same time, the rapid expansion of artificial intelligence is creating new strategic demands. Global data center electricity consumption is projected to rise sharply by 2030, driven heavily by AI applications. For the Gulf, building large-scale computing centers in high-temperature environments demands robust power supplies and advanced cooling capacities. Sovereign wealth funds are increasingly utilizing their capital to back AI hubs and digital infrastructure, cementing their role in shaping future industries.

This evolution creates significant opportunities for international partnerships, particularly with China. China holds scale and industrial advantages in photovoltaics, energy storage, power grid equipment, desalination, and digital infrastructure. Meanwhile, the Gulf offers capital, markets, and robust green investment demand. As global competition extends from resource endowments to climate adaptation capabilities, Gulf nations are working to transform their resilience strategies into international competitiveness. Ultimately, the measure of a nation’s strength in the future will depend not only on the wealth beneath its soil, but on the safety, resilience, and adaptability of its development systems.

Published on
14/08/2026 – 10:54 GMT+2

BP is going back into Venezuela.

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The agreement signed in Caracas on Thursday gives the company operatorship of Loran phase two, an offshore gas project holding more than four trillion cubic feet of proven gas resources, with Abu Dhabi’s XRG, Qatar’s UCC Oil and Gas Holding taking equal stakes beside it.

It is the clearest signal yet that the opening of Venezuela’s energy industry to foreign capital, underway since Maduro’s removal, is gathering pace.

All three companies will hold equal working interests, with BP as operator, and the licence remains subject to regulatory approvals.

PDVSA Gas, the state producer’s gas arm, transferred part of its interest to XRG, the international investment vehicle of Abu Dhabi’s ADNOC. For both XRG and UCC, a unit of the Qatari conglomerate of the same name, this marks a first entry into Venezuela.

The field itself is shared as Loran forms the Venezuelan portion of the Loran-Manatee accumulation, which straddles the maritime boundary with Trinidad and Tobago and holds roughly 10 trillion cubic feet of recoverable gas in total.

Shell won the licence for the first phase in June and is separately developing Manatee on the Trinidadian side, where first gas is expected next year.

BP says both Venezuelan phases will now be developed in parallel and signed a further memorandum of understanding covering exploration at the Carúpano East Block.

The agreements were concluded during a visit to Caracas by CEO Meg O’Neill and David Campbell, BP’s senior vice president for Latin America and the Caribbean.

A sector reopened under US pressure

The licences are the product of a bargain struck with Washington.

After Maduro was seized by US forces in January, interim president Delcy Rodríguez rewrote the country’s energy law at the Trump administration’s urging, opening the world’s largest proven oil reserves to foreign firms.

In return, the US relaxed sanctions that had frozen most Western investment, including the licences it revoked from BP, Shell and Chevron in 2025.

Eni, Repsol and Shell have all signed since.

The awards process stalled after the earthquakes of 24 June, which killed more than 6,300 people, and resumed only on Thursday, when the three Loran permits were issued and the agreements signed.

“I have a special interest in gas to promote national development,” Rodríguez said at the ceremony, which was broadcast on state television.

BP is not a newcomer as it held a licence for the Cocuina field from 2024, before Washington withdrew its permission to use it.