The water and sewerage supplier for the Northwest of England will raise £800 million in fresh equity to help cover the first investment tranche of £1.4 billion, according to a statement on Thursday. 

The shares sale is expected to price at 1,312 pence per share, according to terms seen by Bloomberg, in line with Wednesday’s closing level. The offering has already drawn a £400 million cornerstone investment from Atlas Infrastructure, the company said in a statement. 

The extra spending still needs to be approved by the regulator Ofwat, with a draft decision is expected in August. The company said it was confident of its business case.

Shares of the utility jumped  to  pence as of  in London, a record high.

The initial increased investment would cause bills to rise by around £10 per average household by 2030, on top of the 32% increase already approved by Ofwat, a spokesman for the company said.

Britain’s privatized water industry has faced public anger over chronic leaks, sewage spills, rising bills and financial problems. Debt-laden Thames Water, the UK’s biggest supplier, has been on the brink of collapse for two years, while South East Water has had multiple prolonged supply outages in the past six months.

United Utilities said the equity fundraising would keep its gearing — the ratio of net debt to equity — at 55% to 65% through the investment program. 

United’s placing joins a string of equity offerings from UK utilities over the last couple of years, including water company Pennon Group Plc’s rights offering that raised £490 million last year and network company National Grid Plc’s £7 billion share sale in 2024 to fund its net-zero push.

“This focused, disciplined and well-funded plan will help us accelerate delivery of the transformation in infrastructure and services that the Northwest expects and deserves,” United Utilities Chief Executive Officer Louise Beardmore said in a statement.

There was enough demand from investors to cover the offering on Thursday morning, the terms showed. Deutsche Bank AG and JPMorgan Chase & Co. are managing the process. It comes after a 16% rally in United’s shares over the past year.

The move may prompt other companies such as Severn Trent Plc to also ask Ofwat to reopen their five-year business plan settlement, said Jenny Ping an analyst at Citigroup Global Markets.

“The incremental capex plan comes in higher than we initially expected, but we expect the raise should be welcomed given the uptake as well as seeing other names in sector reacting positively from recent equity raises,” she said in a note.

(Updates from third paragraph with details on share sale and analyst comment)

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The global benchmark surged as much as 7.1% to eclipse $126 a barrel and hit the highest intraday level in four years, while West Texas Intermediate jumped above $110. The head of US Central Command Admiral Brad Cooper will brief Trump on Thursday, signaling a resumption of combat operations are seriously under consideration, Axios said, citing two unnamed people.

A ceasefire has held since early April but recent efforts to get negotiators from the two sides to meet have so far failed, with the US and Iran both maintaining their blockade of the the vital Strait of Hormuz. Central Command has asked for hypersonic missiles to be sent to the Middle East, which would mark the first time the American army has deployed those weapons.

The Strait of Hormuz has been effectively closed since the war started at the end of February, choking off flows of crude, natural gas and oil products, and driving up energy prices. On Tuesday, Trump discussed steps the US could take to prolong its blockade while minimizing the impact on American consumers at a meeting with oil and trading executives, the White House said.

“Trump has ripped away the security blanket the market was clinging to — the hope that the war was about to end,” said Robert Rennie, head of commodity research at Westpac Banking Corp. “Traders are now being forced to confront a much uglier reality: both sides still think they are winning, neither side has a clear incentive to negotiate, and energy prices are starting to accelerate higher.”

US Central Command has prepared a plan for a “short and powerful” wave of strikes on Iran, likely including infrastructure targets, according to the Axios report. Admiral Cooper gave the American president a similar briefing on Feb. 26, shortly before the US and Israel started the war, Axios said.

Trading volumes are thin for Brent’s June contract, which is set to expire at the end of the session. The more-active July futures advanced as high as $114.70 a barrel to the highest intraday level since June 2022.

Blockades of the Strait of Hormuz by the US and Iran have reduced daily transits to near zero. The International Energy Agency called the conflict in the Middle East the biggest supply shock in history, and Vitol Group says the market is facing a supply loss of around 1 billion barrels.

Trump told Axios separately that he would not lift a naval blockade on Iran’s ports until he secures a nuclear deal with Tehran, with Iranian officials defiant over a prolonged standoff. The US has turned away dozens of ships since deploying warships to stop Iranian vessels on April 13. 

The US is now seeking the forfeiture of two Iran-linked oil tankers that were seized by naval forces. Forfeiture, or confiscating oil cargoes, would represent an escalation of Trump’s economic offensive — and dovetail with Washington’s strategy deployed after the ousting of Venezuelan President Nicolás Maduro.

The Trump administration is also asking other countries to join an international coalition that would enable ships to navigate the Strait of Hormuz, according to a report from the Wall Street Journal, which cited an internal State Department cable sent to US embassies on Tuesday.

US crude exports surged to a record last week as global buyers tapped American producers for barrels to replace lost supply from the Middle East. Overseas shipments rose above 6 million barrels a day, eclipsing a previous high of nearly 5.3 million set in late 2023.

Some market metrics pointed to a tightening supply with the difference between Brent’s two closest December contracts strengthening to over $11 a barrel compared to around $3 two months ago.

“Somehow, another few weeks of stalemate does not look like something that will sit well with Trump,” said Vandana Hari, founder of analysis firm Vanda Insights.“ Prices have nowhere to go but up until a Strait of Hormuz reopening comes into line of sight. As of now, how and when that might happen is anybody’s guess.”

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China National Petroleum Corp. Chairman Dai Houliang said the company would respond to external shocks and place greater emphasis on security of supply, according to a statement following a meeting of the firm’s leaders on Wednesday. 

His remarks reiterated messaging from the Communist Party’s decision-making Politburo on Tuesday, when it met for the first economy-focused meeting since the war in Iran broke out. 

The war, now in its third month, has caused the largest disruption to oil and gas supplies in history, and shows no signs of letting up. Brent oil rallied to a wartime high Thursday after Axios reported that US President Donald Trump is set to receive a briefing on new military options for action in Iran, signaling the potential for a fresh escalation.

China has benefited from years of efforts to cushion itself from global oil volatility that include building up massive crude reserves, shifting its energy system toward coal and renewables, and electrifying major consuming sectors like transportation and heat. Still, the country is the world’s largest oil and gas importer, and the conflict’s impacts have already been felt in refinery cut-backs and higher power prices in some regions.

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On that front, Abu Dhabi’s move could prove constructive rather than disruptive.

The UAE enters this phase of market upheaval with one of the most credible and flexible supply profiles in the world. It was pumping around 3.4 million b/d before the start of the Iran war and claims maximum capacity of 4.85 million b/d, with further expansion to 5 million b/d targeted by 2027.

That spare capacity — freed from the constraints of coordinated output policy — will position the UAE as a key driver of supply recovery in the weeks and months following a reopening of Hormuz.

From constraint to catalyst

For now, the UAE’s production remains capped by logistics.

With the Strait of Hormuz effectively shut, exports are limited to volumes that can be routed via the Habshan-Fujairah pipeline, which has a capacity of around 1.5-1.8 million b/d.

This constraint masks the significance of the UAE’s policy shift. Even though it is theoretically free to ramp up production immediately, the physical impact is deferred until flows resume.

Once Hormuz reopens, however, the dynamic changes rapidly.

The UAE will be uniquely positioned to pivot from constrained producer to supply stabiliser — bringing incremental barrels to market just as buyers scramble to rebuild inventories and restore disrupted supply chains.

Aside from Fujairah in the Gulf of Oman, the UAE has crude loading facilities at Das Island, Jebel Dhanna and Zirku Island, which have been rendered inoperational by the Hormuz closure.

A measured ramp, not a supply shock

Crucially, the UAE is unlikely to flood the market.

A ramp-up towards 4.85 million b/d will take time — likely months rather than weeks — even under optimal conditions. That points to a gradual, controlled increase in supply that helps ease tightness without triggering a destabilising price collapse.

The reopening of Hormuz will not instantly restore equilibrium.

There will be a lag between the resumption of shipping and the arrival of crude into consuming markets, particularly in Asia. With typical voyage times of four to six weeks, inventories across key importing regions will continue to draw down even after the first cargoes leave the Gulf.

Focus on incremental supply

Not all the Gulf producers will be able to ramp up output all the way to pre-war levels evenly and quickly. Kuwait, for one, has said it would need three to four months to return to full capacity after the war ends. That is broadly the estimated timeline for other producers in the region, with the possible exception of Saudi Arabia, which may be able to go faster. Other problems may crop up, either subsurface, or due to above-ground infrastructure damage, as producers try to raise output towards full capacity.

The expected lag creates a window where incremental supply is most valuable.

Here, the UAE’s ability to ramp up — combined with its export flexibility — becomes a key accelerant in the normalisation cycle. Additional barrels can help bridge the gap between initial flow resumption and the full restoration of supply chains.

Fujairah, which has emerged as a major regional trading and bunkering hub, has an estimated 80 million barrels of oil storage capacity. It can serve as an additional buffer, allowing for faster mobilisation of exports and more responsive supply management once flows resume.

Fujairah is also one of the few storage hubs globally where oil inventory data is published on a weekly basis, providing a critical layer of transparency.

Asia stands to benefit most

The geographic distribution of the UAE’s exports amplifies this effect.

The country exported an average of 2 million b/d of crude in 2025, with nearly all of it destined for Asia. That concentration aligns closely with where the current disruption is being felt most acutely.

Asian importers — heavily reliant on Middle Eastern crude — have borne the brunt of the Hormuz closure. For them, the prospect of increased UAE supply post-reopening is not just helpful, but critical.

Unlike some producers, notably Saudi Arabia and to a lesser extent other term-heavy Mideast exporters, the UAE offers a high degree of commercial flexibility. It sells a meaningful share of its crude on the spot market in addition to term contracts, with no destination restrictions. This openness, reinforced by the launch of Murban futures trading on the IFAD exchange in March 2021, enhances liquidity and enables buyers to respond quickly to shifting market conditions.

That means Asian refiners will be able to access additional barrels without the friction of rigid contractual constraints — a key advantage in a volatile recovery phase.

From disruption to rebalancing

The UAE’s exit from OPEC and OPEC+ does not, in itself, change the immediate supply picture. The physical impact has been delayed by the Hormuz disruption, leaving the market focused on geopolitical risk rather than policy shifts.

The implications will become clearer once flows resume.

In a post-crisis environment defined by depleted inventories, fragile logistics, and cautious demand recovery, the speed of normalisation matters as much as the volume of supply. The UAE’s ability to deliver both — flexibly and progressively — positions it at the centre of that process. Rather than amplifying volatility, its exit may help shorten the disruption cycle and accelerate the market’s return to balance.

While some energy sector revenues have been impacted by the Middle East conflict, bp reported first-quarter profit more than doubled year-on-year to $3.2 billion, its highest since 2023.

Italian oil and gas group Eni reported first-quarter adjusted net profit of $1.5 billion, down from $1.6 billion a year earlier.

Long-term supply streams

Both bp and Eni have benefited from oil price spikes caused by the US-Israel conflict with Iran and the closure of the Strait of Hormuz. Both also have diversity plays that can produce hydrocarbons away from that choke point.

Eni’s oil and gas production rose 9% in Q1, supported by projects in West Africa and Norway, start-ups in Angola, and robust operational continuity.

This growth helped offset Middle East disruption. Meanwhile, exploration added about 1 billion barrels of oil equivalent, with discoveries in Angola, the Ivory Coast, and Libya providing a positive outlook for the future.

Eni has been aggressively expanding its exploration portfolio, focusing on ‘near-field’ exploration to target new resources close to existing infrastructure and accelerate time-to-market.

This includes major gas discoveries in Indonesia’s Kutei Basin, Timor-Leste, and Sierra Leone, where Eni is committed to exploring offshore blocks. It also maintains gas interests in Kazakhstan and Mexico’s Sureste Basin.

Collectively, these projects could add 300-400 million barrels of new resources annually to Eni’s production base.

Reducing regional exposure

Similarly, bp has experienced limited disruption from the Strait crisis and maintains a reasonably diversified upstream pipeline with great potential. New CEO Meg O’Neill is set to further ramp up oil and gas investments. For instance, bp’s Bumerangue discovery in Brazil’s offshore Santos Basin, announced last year, potentially includes about 8 billion barrels of oil equivalent.

Other industry leaders, such as Shell, TotalEnergies, and ExxonMobil, also operate hugely diverse oil and gas fields, with geographically varied portfolios spanning offshore, LNG, and shale projects — across 70 countries in the case of Shell. US supermajors ExxonMobil and Chevron have production diversity via Permian shale and massive projects in Guyana and Kazakhstan.

These companies, along with bp, have been actively rebalancing their portfolios, combining legacy onshore oil with deepwater developments and LNG to hedge against market volatility.

High-impact exploration in vogue

Wood Mackenzie recently said ‘Big Oil’ is warming to high-impact exploration. Success in ultra-deep water projects — depths greater than 1,500 metres — can deliver substantial rewards.

This renewed focus follows a series of high-value-creating discoveries over the last five years, including ExxonMobil in Guyana, Eni in Cyprus, and TPAO in the Black Sea.

“Frontier explorers are widening the net to under-explored basins, including Brazil’s Foz do Amazonas, as well as extensions of existing plays in Angola, Suriname and elsewhere,” said Wood Mackenzie.  

Despite these efforts, it revealed an “enormous and ongoing challenge” for the upstream industry.

“For liquids alone, today’s onstream fields will fall short by 300 billion barrels of the almost 1,000 billion barrels needed to meet cumulative demand through 2050 under our base case, absent reserve upgrades,” the analysts added. “Exploration can add not just volume but value by finding advantaged barrels to displace higher-cost or otherwise disadvantaged resources, whether oil or gas.”

“If these countries significantly reduce their dependency on fossil fuels, it means that they’ll be investing in their own economy instead of importing fossil fuels from abroad,” van Veldhoven said Wednesday in an interview on the sidelines of the conference, which is being co-hosted by Colombia and the Netherlands. “It means that they’ll be investing in clean technologies, but it also means that they’ll be shielding their economies against the kind of price shocks that we’re seeing currently.” 

The energy crisis stemming from the Iran war has prompted countries around the world to take emergency measures. 

The Santa Marta meeting, which ends today, has brought together governments seeking to translate the call to leave behind fossil energy — issued at the United Nations’ COP28 summit in Dubai in 2023 — into practical policies. 

“This coalition of the willing has of course brought together those countries who really feel a need to have the conversation about how to do this,” said van Veldhoven, “focusing on very concrete ideas about implementing this in their countries and learning from best practices from other countries.” 

Van Veldhoven said the priority should be near-term results, and expressed a hope “that countries don’t just focus on everything that needs to be done between now and 2050, but also really focus on what we can do in the next five years. That is where it really translates into implementation.” 

France unveiled a national road map away from fossil fuels on Tuesday. Other nations taking part in the conference include Germany, the UK, Italy, Brazil, Australia and Vietnam, as well as the European Union.

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The memorandum of understanding between BP and Caracas establishes “potential areas for co-operation in material gas and future exploration,” BP said Wednesday in an emailed statement. Venezuela state firm Petroleos de Venezuela SA also announced the pact.

The deal follows an energy conference in Caracas that drew large turnout from international companies and investors. European oil companies have been particularly keen to advance in Venezuela. Italian major Eni SpA announced an oil project on Tuesday and has a plan to start exporting natural gas with Spain’s Repsol SA starting in 2031. 

Meanwhile, Shell Plc has been advancing the revival of its Dragon project near the Trinidad border, and French major TotalEnergies SE is nearing trading contracts with PDVSA.

BP’s new Chief Executive Officer Meg O’Neill is looking to boost the company’s long-term reserves as it refocuses on oil and gas following a failed push into low-carbon ventures.

©2026 Bloomberg L.P.

Two regions in the state’s far west — the Bancannia Trough and the Pondie Range Trough — are open for prospecting, the NSW government said in a statement on Wednesday. Exploration license application fees will be cut to A$1,000 ($716) from A$50,000 to attract interest, it said.

The move highlights the challenge for the federal government as it tries to balance supply risks and targets to cut emissions, which it’s in danger of missing. There’s a need for additional natural gas supply from 2030 as fields on the east coast rapidly deplete, the Australian Energy Market Operator said in a report last month.

Industry lobby group Australian Energy Producers welcomed the move, calling it a “critical step” toward strengthening the state’s future energy security. The NSW government will open an Expression of Interest process for exploration licenses from May 1, AEP said.

The state government said any projects would still face planning approvals and environmental assessments. About 40% of New South Wales’ gas demand comes from industry, and the fuel continues to play a role in firming the grid alongside growing renewable generation, it said.

©2026 Bloomberg L.P.

While there is possibly a greater angle to it, the economic rationale seems clear and convincing.

For years, the UAE has been following a long-term strategy aligned with their perception of the structural shifts in the energy market and beyond. This strategy includes past and ongoing substantial investments into oil and natural gas output, petrochemicals production, liquefied natural gas (LNG) exports, and pipeline and rail networks, not to mention the broader economic diversification beyond the energy business that brought the country to where it is today.

OPEC is anything but a cohesive group, with its members’ objectives aligned more opportunistically than strategically. From that perspective, the group’s cohesion over the past years was surprising, not least given the well-visible rifts. Specifically, Saudi Arabia and the UAE shared different views on oil policies earlier this decade.

Saudi Arabia pushed for production curbs; the UAE favoured a swifter normalisation and curtailment phase-out so that it could monetise its investments and capacity expansion. With the exit from OPEC, this greater flexibility and independence is granted. While the exit limits OPEC’s influence somewhat on paper, the de-facto leader and key policy implementer over the past years was Saudi Arabia, who not only showed the direction but also always did the heavy lifting in terms of production curtailments.

The petro-nations’ track record is streaked. Supply cuts stabilised prices during demand shocks such as in 2020 or propped up prices during phases of emerging tightness such as in 2021, but they are effective only temporarily and come with the risk of market share losses. This has been most evident since 2022 and with the advance of US shale oil and South American deepwater oil.

OPEC’s challenge is not the UAE’s exit but the tectonic shifts in the oil market more broadly. Besides US shale oil and South American deepwater oil, the energy transition, the shift to plug-in autos and trucks, and the shift to natural gas derived petrochemical feedstocks brings peaking oil demand.

In such a market environment, competition usually increases. These challenges are best addressed without any political constraints. The UAE’s exit from OPEC matches our longer-term view on the oil market, where ample supplies and increased competition anchor prices in the high $60s, a setting that emerged last year, and a setting that is very likely to return past today’s geopolitical turmoil.

The impact of the exit on regional politics goes beyond our expertise, but it comes at a time of greater realignment of relationships in the region and could advance the solution finding within the ongoing conflict.

Conflict-related disruptions, including the ongoing Strait of Hormuz closure, have cut into earnings. But two significant players anticipate that spending on oil exploration and production will rise in the future.

Leading oilfield services companies SLB and Baker Hughes said tighter global supplies, driven by ‌the war, have highlighted the need for investment.

Rise in spending forecast

The Middle East is the biggest market for those companies, accounting for more than a third of quarterly income.

Baker Hughes’ revenue slipped 19% to $1.15 billion in the region, while SLB saw a drop of 10% in the first quarter to $2.69 billion in revenue from the Middle East and Asia. Halliburton had earlier reported a 12.7% slide in Middle East revenue.

Asian and European countries have scrambled for supplies as the closure of the Strait halted the movement of 20% of global oil and shut in 9 mbpd of oil production. LNG and products such as fertilisers have also been hit.

This has intensified calls for supply diversity and energy security at a time when the industry is pursuing an energy-addition strategy rather than a transition to provide sufficient, reliable, and affordable energy.

“There is a growing need for increased upstream investment to expand global production capacity and ensure we can meet rising demand."
- Lorenzo Simonelli, Chairman and CEO of Baker Hughes

Lorenzo Simonelli, CEO of Baker Hughes, told a post-earnings conference call that he saw potential acceleration of investment decisions for North American LNG projects.

“There is a growing need for increased upstream investment to expand global production capacity and ensure we can meet rising demand,” he said.

Olivier Le Peuch, CEO of SLB, also anticipates increased investment in projects in North America and Latin America, including deepwater offshore markets, as many countries are likely to prioritise supply diversification and invest in exploration post-war.

Demand for these companies’ services may recover as repairs and reconstruction of war-damaged energy infrastructure begin. Saudi Arabia, UAE, Bahrain, Qatar, Iraq, and Kuwait were all targeted by Iran.

Rystad Energy has forecast a bill of up to $58 billion. However, Karan Satwani, Senior Analyst, Supply Chain Research, warned the situation was not just about damaged Gulf facilities, but “a stress test” for the entire energy supply chain.  “The same equipment and contractors needed to rebuild are already committed to a wave of LNG and offshore projects sanctioned since 2023,” he said.

“Repair work does not create new capacity; it redirects existing capacity, and that redirection will be felt in project delays and into inflation far beyond the Middle East.”

Olivier Le Peuch, CEO of SLB, anticipates increased investment in projects in North America and Latin America, including deepwater offshore markets, as many countries are likely to prioritise supply diversification and invest in exploration post-war.

James West, analyst with Melius Research, anticipates “seasonal recoveries around the world and a resurgence of activity in the Middle East” as the conflict winds down.

He said: “2027 and 2028 are expected to be strong years of growth given the change in oil market fundamentals due to the Middle East conflict.”

Several countries have expressed willingness to join an international mission led by France to protect shipping in Hormuz when conditions allow.

This comes as TotalEnergies CEO Patrick Pouyanne warned of potential fuel shortages if Hormuz remains locked.

“If ‌it lasts two, three months more, we are entering a world of scarcity of energy, which Asian countries have already suffered,” he told the World Policy Conference, near Paris. “You cannot have 20% of the oil and gas of the planet being stranded and not accessible without major consequences.”

Hydrogen molecules are the smallest of all gases, allowing them to escape through microscopic gaps in seals and joints. This constant leakage is an economic loss and a major safety hazard due to hydrogen's wide flammability range of 4% to 75% in air and its very low ignition energy.

Material integrity is another critical concern. Hydrogen can weaken metals through hydrogen embrittlement, leading to unexpected failures in compressor parts — such as impellers and shafts — unless special materials, including austenitic stainless steels, are used.

Maintaining the 99.99% purity level is equally difficult because oil-lubricated compressors risk contaminating the gas. While oil-free designs are preferred, they are often more complex and expensive. Additionally, hydrogen's thermodynamic properties lead to rapid temperature rises during compression, creating an overheating risk that necessitates intercooling between stages.

Because no single technology perfectly handles high flow, high pressure, and ultra-purity simultaneously, the industry generally selects equipment based on specific application needs:

• Integrally geared centrifugal compressors are excellent for large-flow volumes and provide an oil-free path, making them ideal for bulk handling in green hydrogen plants.
• Barrel centrifugal compressors are similarly robust for large-scale infrastructure and pipeline networks. For applications requiring very high pressures — such as storage or mobility — oil-free reciprocating piston compressors are the traditional choice, although maintenance-intensive.
• Diaphragm compressors serve as "purity champions" for speciality applications such as fuel cells, offering zero risk of oil contamination and minimal leakage, despite their limited flow capacity.

In many real-world green hydrogen plants, a hybrid system — using centrifugal compressors for high-flow initial stages and reciprocating compressors for final pressure boosting — is the most practical way to balance efficiency and cost.

Ebara Elliott Energy (EEE) supports this evolving industry by leveraging a long track record in hydrogen-rich compression dating back to the 1950s. Our deep domain expertise allows us to build tailor-made solutions that account for hydrogen’s low molecular weight and high stage requirements.

To ensure the long-term reliability essential for global supply chains, EEE and Ebara are constructing a new, full-scale commercial testing and development centre in Futtsu City, Chiba Prefecture, Japan. This facility is the first of its kind, equipped with actual fluid test capabilities for liquid hydrogen pumps at scale, reinforcing EEE’s position as a trusted solution provider.

EEE’s centrifugal compressor portfolio also includes both horizontally and vertically split designs that can be customised for everything from electrolyser bulk compression to large-scale transport. These systems are designed to support electric motor drives with variable frequency drives (VFDs), which lower onsite emissions and integrate seamlessly with renewable power grids.

Beyond providing hardware that complies with stringent API norms and ensures oil-free operation, EEE offers comprehensive lifecycle support through its global service network, including installation, maintenance, and reliability upgrades. This end-to-end support ensures high uptime for the demanding duty cycles of the hydrogen energy value chain.

The US market for electrical equipment is projected to reach $65 billion by 2030, up from $20 billion in 2025, with data-center capacity expected to increase more than 350% to 110 gigawatts. 

The staggering growth reflects the massive buildout of computing systems in the US, where the race to deliver artificial intelligence systems has been deemed a matter of national security by the Trump administration. Data centers accounted for less than 2% of the power-equipment market in 2020, but the energy-hungry facilities are expected to drive 68% of total load growth through 2030.

“The scale of planned development underscores the urgency,” according to the report. “Even accounting for expected project attrition, grid-connected data center capacity is expected to nearly quadruple in the next four years.”

Still, the boom in energy demand is driving up costs and wait times for power-generation equipment, a shift that will hinder development. About 600 gigawatts of proposed data center projects is still working to line up electricity supplies, compared with 183 gigawatts that have signed construction or power-supply deals with utilities, the report found. 

©2026 Bloomberg L.P.

Tehran wants the critical waterway for oil and gas shipments open “as soon as possible, as they try to figure out their leadership situation,” Trump said on Truth Social on Tuesday. Iran has said it’s in a “State of Collapse,” he added. 

The US leader on Monday convened his national security team to discuss an Iranian proposal to end the conflict, which began with US and Israeli airstrikes on the Islamic Republic on Feb. 28. The US has been blocking ships going to and from Iranian ports to try and squeeze the country of oil revenue, while Iran keeps the strait shuttered to almost all other traffic. 

Iran, which hasn’t reacted to Trump’s post, has consistently said it will not open the strait as long as the US maintains its blockade. The White House is playing up divisions among Iran’s leaders, claiming that’s a reason for the diplomatic stalemate between the two counties.

Brent crude rose above $111 a barrel, bringing the gain this week to almost 6%, as concern grows of a protracted peace process that could keep Hormuz shut for an indefinite period.  

The war’s ripple effects were underscored when the United Arab Emirates announced on Tuesday it was leaving OPEC, dealing a blow to the oil cartel and its leader Saudi Arabia. The UAE, which can pump more crude than is allowed under its OPEC quota, has long chafed at the group’s restrictions.

“The decision is taken at the right time in our view because it’s not going to hugely impact the market: the market is undersupplied,” UAE Energy Minister Suhail Al Mazrouei said. Abu Dhabi believes the shortages caused by the war will require agility to respond to market demands, he said.

Iran has signaled it may be willing to accept an interim deal to reopen the Strait of Hormuz in exchange for Washington ending its blockade of Iranian ports, while postponing more complex negotiations over the country’s nuclear program. It is insisting on keeping some control over shipping through the strait, which Washington is unlikely to accept.

The president has told his advisers he’s not satisfied with Iran’s latest suggestions, the New York Times reported, citing multiple unnamed people briefed on the discussions. While it’s unclear why, his administration has previously said any deal must include agreements to curb Iran’s nuclear activities.

The warring sides started a ceasefire around April 7 and hostilities may resume if they fail to agree to fresh talks, following an inconclusive first round in Pakistan in mid-April.

Iran’s offer to end the war is “better than what we thought they were going to submit,” Secretary of State Marco Rubio told Fox News. Yet the White House has “questions about whether the person submitting it had the authority to submit,” he said, echoing previous US claims that Iran’s leaders are divided over their negotiating strategy.

The strategic Strait of Hormuz, through which a fifth of the world’s oil and liquefied natural gas flowed before the conflict began, remains at a virtual standstill.

Foreign leaders are increasingly frustrated with the diplomatic impasse and the continued closure of the waterway, which has led to fuel rationing across much of Asia and Africa and fears of a global economic slowdown. German Chancellor Friedrich Merz said the US was being “humiliated” by Iranian leaders and he didn’t see “what strategic exit the Americans are now choosing.”

The first LNG shipment since the war began appears to have traversed the waterway to exit the Gulf. The Mubaraz, which loaded a cargo from the UAE around early March, is now passing the southern tip of India, according to ship-tracking data. It’s unclear what led to the vessel opting to make the journey.

Here’s more on the US-Iran talks and Lebanon:

• US Senator Lindsey Graham, a Trump ally, said on X he was skeptical of Iran’s proposal: “Clearly, if this offer is accurate, Iran is playing games. Mr. President, stick to your guns for the good of the nation and the world.”
• Iran’s Foreign Minister Abbas Araghchi, on a visit to Russia on Monday, told President Vladimir Putin that Tehran was committed to strengthening the partnership between their nations. Moscow is one of Tehran’s closest partners.
• The ceasefire between Israel and Hezbollah in Lebanon remains shaky, with each side accusing the other of attacks that breach the terms of the agreement. The Israeli military, on Monday afternoon, said it was striking Hezbollah infrastructure sites in the Bekaa valley and across southern Lebanon.

(Updates with Trump comment starting in first paragraph.)

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The deals mark the latest step in the administration’s push to stymie the nascent US offshore wind industry opposed by President Donald Trump and boost investment in fossil projects.

Bluepoint Wind, which is partially owned by investment firm BlackRock, Inc., and Golden State Wind will relinquish their leases and be reimbursed for costs, according to the department. The moves come in exchange for plans by the companies to direct hundreds of millions of dollars into US fossil fuel development.

“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” said Michael Brown, chief executive officer of Ocean Winds North America, a 50% owner of Bluepoint Wind and Golden State Wind.

The agreements are similar to a deal announced last month by the administration in which it released TotalEnergies SE and its partners from $1 billion in offshore wind leases to redirect investment toward oil and natural gas projects in the US.

Bluepoint, which is 50% owned by Global Infrastructure Partners, has committed to invest as much as $765 million — equivalent to the value of its lease —  into an unspecified US liquefied natural gas facility, per the Interior Department.

Some oppose the divestment in wind projects, arguing that the move undermines the mounting energy needs of the US.

“This is a double whammy for Americans, wasting their tax dollars and halting affordable energy projects,” said Kit Kennedy, managing director for power at Natural Resources Defense Council.

Golden State Wind, which was in the early stages of developing a floating offshore wind project, agreed to terminate its lease off Morro Bay, California. The company will be eligible to recover about $120 million in fees after investing an equal amount in US oil and gas assets, energy infrastructure or liquefied natural gas projects along the Gulf Coast, the Interior Department said. 

The buyback approach has been used before to extricate the US government from leases, particularly after litigation. After former President George W. Bush’s Interior Department sold shale oil leases in Utah in 2008, the auction was subsequently challenged in court. Months later, the agency under former President Barack Obama ordered the withdrawal of those leases, with leaseholders refunded the bids they’d paid for the territory.

(Updates with more context throughout.)

©2026 Bloomberg L.P.

In March, the first four weeks since the bombing began, consumers in France, Germany and the UK drove off in 206,200 EVs, a 44% increase over the year-earlier period. In South Korea, electric car transactions more than doubled. In Italy, where the path to electrification has been slow, 16,000 battery-powered vehicles left dealerships last month, a 67% increase.

“The March data suggest that scaling up to electrification can occur at a meaningful pace when market and policy conditions align,” said Peter Mock, Europe director at the International Council on Clean Transportation. “The coincidence with the recent oil price shock is notable.”

The surge wasn’t entirely unexpected; online searches for EV listings intensified in the weeks after the war. In March, all told, consumers snapped up 1.1 million EVs, 2% more than they did in the year-earlier period, according to new global data from BloombergNEF. Some 17% of new cars and trucks sold around the world last month were entirely battery-powered, roughly the same share as in March 2025. 

The EV gains came despite flagging sales in the world’s largest auto markets. While electric car transactions last month cooled in Canada, China and the US, a surge in demand in Europe, Australia and parts of Asia more than compensated for the declines. Tesla Inc. called out the uptick in orders as a tailwind to its recent quarterly results. “2026 has had an interesting start, not just for us, but I think the world in general,” Chief Financial Officer Vaibhav Taneja said on a conference call. “On the autos business, we have seen a resurgence in demand.”

Where EV sales are bubbling up, analysts point to a cocktail of two ingredients: elevated gas prices and affordable new models from Chinese automakers. Indeed, Chinese exports of EVs and hybrids reached a new record in March, increasing 140% from the previous year, according to the China Passenger Car Association.

The renewed global appetite for EVs is good news for Chinese manufacturers. Major export markets that saw a sizeable jump in EV shipments included Australia, up 67% from February; Belgium, up 63%; and Germany at 34%, according to Chinese customs data. The increases align with survey results showing interest in EVs surging as fuel prices have risen.

Graham Kettlewell, a 62-year-old near Sydney, has had the EV itch for years. As an atmospheric chemist, Kettlewell has spent his professional life measuring the steady ramp-up of CO2 in the atmosphere. Still, he didn’t ditch his 2014 Nissan Altima until a few months ago when he got his hands on a BYD Co. Dolphin, a zippy little Chinese hatchback that sells for about $30,000 in Australia. 

Drilling for oil, refining it, shipping it all over the world and burning it to create greenhouse gases “doesn’t seem like the best approach,” Kettlewell said. “This was my take on things prior to the fun we are currently having in the Strait of Hormuz.” 

With solar panels on the roof of his home that fuel the car, Kettlewell has seen his transportation costs drop from $100 a week to $4. Gas prices in Australia have spiked more than in many countries and thousands of Kettlewell’s neighbors are running similar equations. Australians bought 14,100 EVs last month, 68% more than in the year-earlier period. 

Similar forces sped EV sales across Europe where nearly 400 electric models are now on offer largely due to Chinese imports, up from 368 a year ago. 

The sales were spurred in part by policy changes, some a direct response to the Iranian oil crisis, according to BloombergNEF analyst Sada Wachche. Germany, for example, has reintroduced purchase subsidies of up to €6,000. Meanwhile, France has strengthened an electrification mandate for fleets of vehicles. 

“Every market has a lot of levers, but especially Europe,” Wachche said. 

Meanwhile, EV sales continued to swoon in China and the US, the world’s two largest auto markets. Chinese consumers have largely been insulated from gas price spikes and the government has curtailed some purchase incentives. 

US EV sales declined 27% from the year-earlier period. However, analysts note American EV sales were particularly strong in March 2025, as drivers rushed to grab expiring federal incentives. Meanwhile, a tide of used EVs is pulling buyers away from the new market. US car consumers have become bargain hunters and are snapping up used electric vehicles faster than any other kind of car or truck. 

©2026 Bloomberg L.P.

The nation’s power sector is expected to add about 60 gigawatts of solar, battery storage and wind capacity in 2026, the American Clean Power Association said in its annual market assessment published Tuesday. That is up 20% from over 50 gigawatts deployed last year. The trade group’s forecast is near the top end of the range given by consulting firms including BloombergNEF, S&P Global and Wood Mackenzie, the report said.

Many of the clean energy projects now nearing completion had started years before President Donald Trump returned to office in January 2025. Since then, the Trump administration has moved to halt or slow the building of solar and wind farms through measures including the ending of lucrative federal tax incentives and permitting delays. Administration officials have broadly criticized both wind and solar power, casting the emission-free renewables as dependent on government subsidies, as well as the additional infrastructure needed to compensate for their intermittent electricity generation.

The trade group said its forecast is on the optimistic side and assumes that the federal government’s ongoing permitting and authorization challenges will be overcome. The country is seeing a surge of electricity demand from AI data centers and clean energy remains one of the fastest and cheapest sources of new capacity, according to ACP.

“With electricity demand surging at a pace we have not seen in a generation, the country will need every megawatt it can build,” wrote ACP CEO Jason Grumet in a letter introducing the report.

©2026 Bloomberg L.P.

CATL did not disclose the value of the agreement but said in a statement it would amount to 60 gigawatt-hours, and mark the battery giant’s first strategic partnership in sodium-based technology. 

These batteries use sodium as their key raw material instead of lithium, and are expected to deliver safer and low-cost rechargeable cells. The International Energy Agency expects 2026 “could prove to be a pivotal year” for sodium batteries, which could begin to displace at least some demand for more familiar lithium-ion technology. 

CATL, which has added more than 300 staff and invested almost 10 billion yuan ($1.5 billion) in sodium-ion research and development in the past decade, has described the segment as “alternative risk management,” offering a hedge against wild swings in lithium prices. The company’s Chief Technology Officer Gao Huan told reporters at an event in Beijing last week that it will begin mass-production of sodium batteries in the fourth quarter of this year.

©2026 Bloomberg L.P.

With energy bills rising due to the Iran war, the Southeast Asian nation is fast-tracking the rollout of a diesel blend comprised 50% of biofuels from its vast palm plantations. The aggressive timetable will push the industry’s limits and serve as a test case for other crop-rich economies – from Malaysia to Brazil – that are seeking to cut reliance on fossil fuels.

“If Indonesia succeeds, it shows that very high biofuel blends are possible when demand is engineered” rather than left to market forces, said Khor Yu Leng, an economist at Segi Enam Advisors in Singapore, who has tracked the palm oil industry for nearly two decades. “This could push other countries to strengthen mandates for energy security.”

By some distance, Indonesia is the global leader in terms of the proportion of biofuels in its diesel mix. The country produces a blend that is 40% derived from palm oil, and its ambition to introduce the next grade – B50 – aligns with President Prabowo Subianto’s push toward self-sufficiency in food and fuel.

The world’s biggest palm oil producer has the resources to succeed. The spike in crude prices arising from the war has also given the country a window to advance its goal — on the rare occasions, such as now, when conventional diesel costs more than biofuel, the government avoids paying a subsidy that’s usually needed to incentivize producers and keep biodiesel competitive at the pump.

But the race to roll out B50 by July – at least a year ahead of a previous schedule – faces challenges. Another key input for biodiesel, methanol, is in short supply due to the war. Storage tanks, meanwhile, are filled with unsold byproducts, according to people familiar with the matter, who asked not to be named discussing private matters.

Added to that, a reduction in exports as the country retains more palm oil for domestic use would likely push global prices for the tropical commodity higher. That risks adding to food inflation wrought by the war, with palm oil used in scores of products across grocery-store shelves.

“On paper, Indonesia has sufficient capacity to produce the volumes of biodiesel required for B50,” said Julian McGill, an agricultural economist and managing director of advisory firm Glenauk Economics in Kuala Lumpur. “In practice, this requires running at extremely high capacity utilization.”

Before any of this is possible, the new fuel must be road-tested. These trials were what took the Japanese-branded trucks and Mercedes-Benz Group AG bus to the highlands of Java last week. Four SUVs are still on the road, headed for the mountainous east of Indonesia’s most populous island to check the blend’s performance at high altitudes.

“Indonesia is a tropical country with varying humidity levels, which affects fuel conditions,” Cahyo Setyo Wibowo, head of the B50 trials, said at the journey’s end-point. Due to its high saturated-fat content, palm-based biodiesel is prone to cloud and solidify in cooler conditions, making fuel systems more vulnerable to clogging at higher elevations.

So far, though, preliminary results have shown B50 to have performed reliably, said Eniya Listiani Dewi, director general of new and renewable energy at the Ministry of Energy and Mineral Resources. Engine components, lubricants and fuel systems have stayed in line with manufacturers’ recommendations throughout the trials, which are due to end next month.

“What Indonesia has achieved is remarkable,” McGill said. “There were doubts that even B30 was possible, and today they are on the cusp of pushing through B50 as other Northern Hemisphere countries continue to treat single digits as the blend wall.”

Malaysia, a distant second in terms of palm oil production, plans to transition in stages from B10 to B20. Brazil – with a B15 diesel mandate – is awaiting results of tests on a higher blend, and is also seeking to lift its mandatory blend of ethanol into gasoline to 32%. The US, meanwhile, just finalized long-awaited blending standards that will boost levels mixed into both conventional diesel and gasoline.

Few countries, if any, can replicate Indonesia’s blending levels in biodiesel, said Khor, the economist. The system is “state-structured, industry-funded and scale-driven,” she said, while other models are market-driven and fiscally linked, “making them more flexible but less certain in scale.”

According to McGill, a full rollout of B50 in the second half of the year would need an additional 1.7 million tons of biodiesel. That would amount to a roughly 12% increase on the amount required for the existing annual quota for the B40 mandate.

And with the July deadline in mind, Indonesia’s government has already sent letters to biofuel producers asking for their commitment to supply additional volumes for the program, said Dewi from the ministry.

Some of these producers, however, are hesitant to commit to the new targets, one of the people familiar with the industry said. While palm oil is abundant, the producers’ main concern is a shortage of methanol, the ingredient needed to break apart the oil molecules and convert them into biodiesel.

Much of Indonesia’s methanol traditionally comes from the Middle East via a sea route that’s been choked by the war. Prices have more than doubled since the conflict began at the end of February, according to data from analytics firm Polymer Update.

The implications of B50 for palm oil markets are also significant. Even a gradual increase in blending rates would increase domestic consumption and reduce exports, with production growth unlikely to keep pace. That’s likely to boost palm prices over the medium term, said Artem Hammerschmidt, head of vegoils and biofuel research at Netherlands-based Ceras Analytics.

These input considerations, as well as the strains on capacity, cast some doubt over whether the switch to B50 will be possible within just a few months. After all, as recently as January — before the war began — the government said policymakers would need more time to build infrastructure and calculate the costs of transition.

“A more realistic trajectory would imply an effective national blend rate of around B42-B43 in 2026, rising to B45 in 2027 and only reaching full B50 implementation from January 2028,” Hammerschmidt said.

Regardless, Indonesia is committed to B50. For the government, it’s a matter of energy sovereignty. Asked recently whether Indonesia might slow the program should fossil fuel prices retreat, making biodiesel more expensive than gasoil again, Energy and Mineral Resources Minister Bahlil Lahadalia said: “The B50 must continue.”

“This is about survival,” he added. “We should not – just because prices are falling – go back to relying on imports.”

©2026 Bloomberg L.P.

“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs,” UAE state news agency WAM reported.

Longstanding member 

The UAE was a longstanding member of OPEC, which was set up in 1960 to coordinate petroleum policies, stabilise oil markets, and secure efficient supply to consumers. Headquartered in Vienna, it works with the broader OPEC+ grouping that also includes Russia, to manage production levels and influence global prices.

As of May 1, following the UAE’s exit, OPEC members will comprise of Algeria, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Non-OPEC oil producers who are part of the broader OPEC+ group include Russia, Kazakhstan, Oman, Malaysia, Mexico and Sudan.

The UAE’s decision “reflects a policy-driven evolution in the UAE’s approach, enhancing flexibility to respond to market dynamics while continuing to contribute to stability in a measured and responsible manner,” WAM said.

"The UAE’s decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals. We thank OPEC and its member countries for decades of constructive cooperation. We remain committed to energy security, providing reliable, responsible, and lower-carbon supply while supporting stable global markets.”
- H.E. Suhail Mohamed Al Mazrouei,
UAE Minister of Energy and Infrastructure

Policy-driven evolution

Commenting on the decision, H.E. Suhail Mohamed Al Mazrouei, UAE Minister of Energy and Infrastructure, said on X: “The UAE’s decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals. We thank OPEC and its member countries for decades of constructive cooperation. We remain committed to energy security, providing reliable, responsible, and lower-carbon supply while supporting stable global markets.”

While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term, the WAM statement said.

“A stable global energy system depends on flexible, reliable, and affordable supply. The UAE has invested to meet evolving demand efficiently and responsibly, prioritising stability, affordability, and sustainability,” WAM reported.

"The UAE has taken a sovereign decision in line with its long-term energy strategy, its true production capability and its national interest, as well as global energy market stability. At ADNOC, our focus is unchanged: meeting the growing energy needs of our customers and partners around the world with reliability, responsibility, and the ambition to deliver more across oil, gas, chemicals, and low carbon and renewable energy. Our commitment to our partners remains unwavering."
- H.E. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC

Commenting on the development, H.E. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said the UAE “has taken a sovereign decision in line with its long-term energy strategy, its true production capability and its national interest, as well as global energy market stability”.

“At ADNOC, our focus is unchanged: meeting the growing energy needs of our customers and partners around the world with reliability, responsibility, and the ambition to deliver more…across oil, gas, chemicals, and low carbon and renewable energy. Our commitment to our partners remains unwavering. For us, trust, partnership and credibility are not talking points … they are a track record,” H.E. Dr Al Jaber wrote on X.

Bringing additional production to market

The UAE – the world’s seventh largest oil producer – also reassured the international community that following its exit from OPEC, it would “continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions”.

With a large and competitive resource base, the UAE will continue working with partners to develop resources, supporting economic growth and diversification, the statement said.

“This decision does not alter the UAE’s commitment to global market stability or its approach based on cooperation with producers and consumers. Rather, it enhances the UAE’s ability to respond to evolving market needs,” WAM reported.

Ahead of ADIPEC last year, H.E. Al Mazrouei had highlighted how the UAE is turning its energy vision into reality by combining investment, AI-driven innovation, and resilient infrastructure to deliver secure, sustainable, and inclusive growth at global scale.

Decades of cooperation

The UAE also highlighted its decades of constructive cooperation with OPEC. “The UAE joined OPEC in 1967 through the Emirate of Abu Dhabi and continued its membership following the formation of the United Arab Emirates in 1971. Throughout this period, the UAE has played an active role in supporting global oil market stability and strengthening dialogue among producing nations,” it said.

“We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success. During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all. However, the time has come to focus our efforts on what our national interest dictates and our commitment to our investors, customers, partners and global energy markets. This is what we will focus on going forward,” it said.

In March, OPEC+ approved a modest production increase of 206,000 bpd, although the UAE quota remained at 3.41 mbpd.

Global oil outlook

Earlier this month, in its first public assessment of the impact of the Middle East conflict, OPEC lowered its forecast  for world oil demand in the second quarter by 500,000 barrels per day — an average 105.07 mbpd, down from the 105.57 mbpd forecast in the previous month’s report. But it made no change to its full-year outlook.

Global oil demand is forecast to grow by 1.4 mbpd year on year, driven almost entirely by demand from non-OECD regions, mainly China, India and other Asian countries, OPEC said.

In an interview at the OPEC Secretariat in Vienna last year, H.E. Haitham Al Ghais, OPEC Secretary General, had highlighted the critical need for $18.2 trillion investments in oil and gas by 2050, with the sector remaining an essential pillar of a stable and secure energy future.

These questions sit at the heart of what Europe is now confronting: its second major energy shock in four years, as the continent moves from spring into a potentially difficult summer.

The Strait of Hormuz may be thousands of miles away from Berlin, Rome or Paris, but if it “remains closed in the months ahead, we will see increasing disruptions that go beyond simple price increases — jet fuel scarcity will reduce flight availability, diesel supply will be at risk," says Raffaella Tenconi, Chief Economist at Wood & Company in London.

“Europe cannot escape the economic damage of a shortage of energy, but can accelerate the evolution of its investment cycle — there could be a sharp slowdown in economic activity and a visible acceleration of inflation.”

“Europe cannot escape the economic damage of a shortage of energy, but can accelerate the evolution of its investment cycle — there could be a sharp slowdown in economic activity and a visible acceleration of inflation.”

- Raffaella Tenconi, Chief Economist at Wood & Company

Another upheaval

After four years spent rebuilding its energy security amid the war in Ukraine — with the US emerging as a structural backstop and REPowerEU diversification largely holding — the Old Continent now finds itself staring at a predicament it had hoped never to face.

What is unfolding now is a global shock that hits Asia hardest, given its heavy reliance on Qatari and UAE LNG volumes, while reverberating across the world through prices.

Europe entered this upheaval with gas storage at its lowest level in years after a harsh winter, and filling reserves back to the mandatory level by November will require a substantial effort at a moment when higher prices are drawing flexible LNG cargoes toward Asian markets. The International Energy Agency's latest Gas Market Report has declined to issue a short‑term demand forecast, saying uncertainty is simply too deep for any reliable model.

Brussels acts — with caution

After a brief April ceasefire raised and then dashed hopes of a quick resolution, the European Commission unveiled its 'AccelerateEU' package on April 22 — deliberately more measured than the sweeping interventions of 2022.

No pan-European price cap, no windfall tax for now. Instead: coordinated storage refill, relaxed state aid rules, energy vouchers and electricity tax reductions. Energy Commissioner Dan Jørgensen was frank: "Europeans are paying the price of Europe's dependency on imported fossil fuels." Whether the political will exists to move as fast as in 2022 remains an open question.

The lessons learnt with REPowerEU were not fully absorbed before this shock arrived, and the IEA's latest report makes clear the medium-term supply outlook has been set back by years.

As spring tips toward summer, the energy shock is showing up in airline schedules, holiday booking patterns, and boardroom risk assessments across the continent.

European vacations

Ryanair CEO Michael O'Leary has warned that the Middle East conflict could cause severe disruptions to European jet fuel supplies and potential flight cancellations in May and June 2026.

IEA chief Fatih Birol warned in mid-April that Europe had roughly six weeks of jet fuel reserves remaining. The Commission has pushed back, insisting there are no physical shortages yet, but acknowledges a market that is "tight" and demand in the hottest months is typically far higher than in spring.

For Mediterranean economies, the stakes are existential. A late-April survey by Italian research firm Eumetra found two in three Italians already fear difficulties finding fuel at the pump, while a third worry about restrictions on air travel to and from the country.

"In Italy as well as in Spain, Greece and other Mediterranean nations, most touristic operators are recording cancellations or postponements of bookings," says Michele Costabile, Professor of Business Economics and Marketing at LUISS Guido Carli University in Rome. “To offset that decline, affected companies will have to refocus on domestic customers, who in turn may opt for holidays closer to home.”

"In Italy as well as in Spain, Greece and other Mediterranean nations, most touristic operators are recording cancellations or postponements of bookings. To offset that decline, affected companies will have to refocus on domestic customers, who in turn may opt for holidays closer to home."

- Michele Costabile, Professor of Business Economics and Marketing at LUISS Guido Carli University in Rome

The Cyprus test

Cyprus captures the full picture: sitting just 260 kilometres from Lebanon, the island saw tourist arrivals collapse in March — over 60,000 fewer visitors — partly because Iranian Shahed drones targeted British military bases on its soil in the opening weeks of the war.

"We come from three years of constant growth. Now we are worried," Kostas Koumis, Cypriot Deputy Minister of Tourism, told Italian news agency ANSA after hosting an EU summit in the capital Nicosia.

He pointedly noted that the conflict's impact "has not been the same for all the European Union countries" — a warning that Italy has already echoed, calling for a dedicated EU tourism fund.

Matter of trust

Will the energy sector eventually need its own dedicated response fund?

For sure, what Europe does in the coming weeks on storage, aviation fuel and the transition will shape not just which version of this summer it lives through, but its economic and political direction for years to come.

“Importantly, without a rapid solution to this conflict, the erosion of trust between Europe and the US will run deeper yet, increasing Europe's resolution to boost its own defence capacity and energy transition,” Tenconi said.

One year into his premiership, the Canadian leader’s list of projects eligible for fast-track approval includes expansion of the Shell-led LNG Canada gas export facility. Carney also has pledged to support a new oil-export pipeline from Alberta to the Pacific Coast, and to relax some environmental regulations. 

Carney’s approach marks a major departure from predecessor Justin Trudeau, who sought to toughen regulations and impose caps on oil and gas emissions that were panned by Western Canada’s energy sector as anti-development. Carney’s approach grew out of US President Donald Trump’s trade war that pushed relations between the countries to the lowest in decades. 

The Shell deal “just shows that the liberal government is serious about making Canada an energy superpower,” BMO Capital Markets analyst Jeremy McCrea said by phone. “Here we’re seeing regulations be more amenable to oil and gas development and, as a result, given the resource that we have here, you’re seeing international names take quite a bit more interest and I think a big part of that is because we still really haven’t developed our resource nearly as aggressively as other countries or especially the US.”

Shell announced plans Monday to purchase ARC for $13.6 billion, the biggest deal in the Canadian energy patch in more than a decade. The transaction marks a reversal of a decades-long trend of international supermajors including BP Plc and Chevron Corp. shedding Western Canadian assets, especially those in the oil sands, to focus on US shale and other investment opportunities. 

Shell itself sold most of its oil sands assets to Canadian Natural Resources Ltd. in 2017 to concentrate on natural gas. 

Shell is taking over ARC amid a Middle East war that has disrupted global energy flows, including liquefied natural gas and gas-to-liquids investments by the company in Qatar. Canada is an increasingly safe operating environment in a dangerous world, according to Aaron Bilkoski, oil and gas equity researcher at TD Cowen. 

“This is clearly a strong endorsement of Canada being a stable provider for the global energy markets,” he said by phone, adding that Carney’s shift from the policies of Trudeau may also have played a role in the deal. 

“We have a night and day change in federal leadership,” he added. 

To be sure, many energy producers say that Carney hasn’t gone far enough in supporting policies that will allow the industry to grow. The prime minister continues to back an industrial carbon tax that should be reformed or scrapped, Jon McKenzie, Cenovus Energy Inc. chief executive, said in an interview this month in Toronto. 

Also, the timeline for project permits should be cut to no longer than six months from two years to keep investments from flowing to the US, TC Energy Corp. CEO François Poirier said in a recent interview. 

ARC is one of the largest producers of light oil and gas in the Montney formation, which straddles the British Columbia-Alberta border. The formation provides a rich source of natural gas for the LNG Canada project that started last year as well as multiple other liquefied natural gas export projects in various stages of development on the BC coast. The Montney is also the source of condensate that’s blended with bitumen produced in the Alberta oil sands. 

©2026 Bloomberg L.P.

White House Press Secretary Karoline Leavitt told reporters Monday that President Donald Trump had convened a meeting of national security officials earlier in the day to discuss the Iranian proposal. 

“His red lines with respect to Iran have been made very, very clear,” she said, adding that Trump would address the matter “very soon.”

The comments followed reports that Tehran proposed an interim deal whereby it reopens the Strait of Hormuz in exchange for Washington ending its blockade of Iranian ports. That proposal would also postpone more thorny negotiations over the country’s nuclear program.

Separately, Iran’s Foreign Minister Abbas Araghchi told President Vladimir Putin that Tehran is committed to strengthening the country’s partnership with Russia.

Araghchi said on a visit to Russia that the Iranian people are able to resist “US aggression and will be able to overcome it,” Iran state-owned Nour News said on Monday. 

Iranian media said Sunday that Araghchi would convey to mediator Pakistan that the conflict could end if the Americans lift their naval blockade, agree to a new legal framework for traffic going through the strait and guarantee there will be no future military action against the Islamic Republic.

Iran told Pakistan that negotiations over Iran’s nuclear program — a longer-standing issue — could be dealt with later, Axios reported, citing a US official and two people with knowledge of the matter.

Brent crude prices rose for a sixth straight session to more than $108 a barrel by 1:44 p.m. in New York. US oil climbed above $96 a barrel.

Oil traders added to bullish trades after hopes for peace talks over the past weekend were dashed. Investors remain largely focused on a growing supply crunch created by the virtual standstill of flows through the strait.

Foreign leaders have expressed frustration over the prolonged conflict. 

German Chancellor Friedrich Merz told a group of students the US is being “humiliated” by Iranian leaders and that he can’t figure out what exit the Americans are pursuing. 

An interim deal would echo what many Middle East analysts have said for weeks — that the US and Iran should reopen the strait as soon as possible to lower fuel prices and ease pressure on the global economy, while leaving issues such as Iran’s nuclear program for later talks. Some Persian Gulf Arab and European leaders believe that such negotiations will take at least six months, Bloomberg has reported.

Trump, however, has indicated that Iran’s atomic program must be resolved as part of any agreement and that the blockade will stay in place until then. The White House has said the blockade is putting pressure on Iran to make concessions by choking off its oil exports.

Here is more on the US-Iran talks:

• “We must ensure the rights of the Iranian people after 40 days of resistance and secure the country’s interests,” Araghchi said on Monday, according to state-run Islamic Republic News Agency.
• “There is a high degree of alignment between Iran and Oman” on the future of the strait, Araghchi said, according to IRNA.
• Iran has previously said it wants to toll traffic moving through Hormuz and share the revenue with Oman, which sits across the strait.

• Efforts to resume in-person peace talks stumbled again on Friday when Trump canceled a trip to Pakistan by Steve Witkoff and Jared Kushner, two of his main envoys. That was after Araghchi signaled he would not meet American negotiators while there and the Iranian government reiterated it will not agree to more talks while facing military threats from the US.
• Israel’s preferred option would be for the US to maintain the blockade on Hormuz and for the allies to use the time to prepare for any resumption of hostilities, according to an Israeli official familiar with the government’s discussions, who asked not to be identified by name because the matter is private.
• Israeli strikes in southern Lebanon on Sunday killed 14 people, Lebanese state media reported, citing the country’s health ministry. The victims include two children. Trump said Lebanon and Israel, which has waged a conflict against Iran-backed Hezbollah, agreed to extend a ceasefire by three weeks until around mid-May. Yet both Israel and Hezbollah continue to accuse each other of attacks that violate the truce terms.
• In a statement on Monday, Hezbollah’s Secretary-General Naim Qasem rejected the Lebanese government’s direct negotiations with Israel. The group, Qasem said, would not back down against Israel or relinquish its weapons.

©2026 Bloomberg L.P.

Brent climbed as much as 2.5% to $107.97 a barrel and West Texas Intermediate advanced toward $97, before giving up some gains after Axios reported Tehran offered the US a fresh proposal to open the strait. Over the weekend, President Donald Trump canceled a planned trip by his top envoys to Pakistan, which is mediating talks, while Iran said it won’t negotiate if it’s being threatened.

A ceasefire has mostly held in place since early April, but a blockade of the Strait of Hormuz by both the US and Iran has cut daily transits through the key waterway to near zero. The supply shock has choked off supplies of crude, fuel, natural gas and fertilizers, raising concerns about an inflation crisis.

“The Strait is still very much under siege, with traffic halted,” said Mona Yacoubian, director of the Middle East Program at the Center for Strategic and International Studies. “It seems like neither side wants to go back to outright conflict. We’re in this purgatory, where it’s just stalemated.”

Iran, through Pakistani mediators, offered the US the proposal for reaching a deal to reopen the strait and end the war, with nuclear talks postponed for a later stage, Axios reported, citing people it didn’t name including a US official. Trump is expected to hold a meeting on Monday with his top national security and foreign policy team to discuss the stalemate in the negotiations, it said. 

The US president on Saturday told his envoys Jared Kushner and Steve Witkoff to skip the trip to Pakistan, and later told reporters that Iran “offered a lot, but not enough.” Iranian President Masoud Pezeshkian said his nation won’t enter “imposed negotiations under threats or blockade.”

The Iran war, now in its ninth week, has driven up energy prices and led to shortages of key products such as liquefied petroleum gas in India, and prompted airlines to cut flights. The International Energy Agency says the conflict is causing the biggest supply shock in history.

“Consolidation above $100 is the area that we’re heading” toward, said Robert Yawger, director of energy futures at Mizuho Securities. “As every day ticks forward, there’s less and less chance that we’ll see a deal anytime soon.”

The longer Hormuz is closed, the more consumption is going to have to recalibrate lower to align with supply that’s dropped at least 10%, according to traders. A loss of 1 billion barrels is already all but guaranteed — more than double the emergency inventories that governments released after the conflict with demand destruction likely to spread. 

US forces intercepted a sanctioned vessel in the Arabian Sea on Saturday as part of the blockade, according to US Central Command. The US deployed a Navy helicopter to intercept the vessel, which subsequently complied with military directions to turn back to Iran under escort. A total of 38 ships have been redirected since the start of the blockade, Centcom said.

Most of Iran’s crude is exported to China, with the country’s private refiners — known as teapots — taking advantage of the cheaper barrels. On Friday, the US sanctioned Hengli Petrochemical (Dalian) Refinery Co. over its links to Tehran, just weeks ahead of an expected summit between Trump and Chinese President Xi Jinping. Hengli has denied any trade with Iran.

“The market’s already priced in a decent amount of risk,” said Haris Khurshid, chief investment officer at Karobaar Capital LP in Chicago, referring to the Iran war. Brent crude will likely trade in a range of $100 to $115 a barrel, unless there’s “a broader regional escalation,” he added.

©2026 Bloomberg L.P.

The next two weeks are forecast to be hotter than normal in the Southeast Asia country, with swathes of anomalous warmth of up to 3C above average blanketing much of the north and parts of the south, including Hanoi and Ho Chi Minh City, according to the European Centre for Medium-Range Weather Forecasts. Temperatures are also expected to be slightly above normal in May and June, according to the weather model.

The country has imported about 276,000 tons of LNG so far this month, according to ship-tracking data compiled by Bloomberg. That’s already a monthly record and more than double the amount in the same period last year. April shipments also far surpass volumes in the preceding months, like the 70,000 tons bought in March, the data showed. Meanwhile, data from Kpler shows Vietnam importing 191,000 tons so far in April, also higher than any previous month.

Thailand and Singapore have also been buying LNG from the spot market, but Vietnam has seen the most notable increase in imports among its Southeast Asian neighbors. State-owned Petrovietnam Gas JSC has issued tenders for several spot cargoes in the past two months for delivery through June. It most recently sought to purchase a prompt April cargo on Thursday.

Vietnam is among several nations urgently seeking LNG at a time when spot prices have surged due to the conflict in the Middle East. With top producer Qatar’s capacity hobbled by Iranian strikes and the effective closure of the Strait of Hormuz — through which a fifth of global supply passes — the market for the super-chilled fuel is seeing greater competition between Europe and Asia for limited cargoes. 

Other countries, including Indonesia and India are also expected to see unseasonal warmth in the months ahead, according to the ECMWF. That’s likely to boost power consumption and demand for gas, which could further strain global supplies.

Industries and consumers are also turning to alternative energy sources. Vingroup has proposed to the government that it be allowed to replace a planned LNG project with renewable power due to surging fuel prices linked to the war.

©2026 Bloomberg L.P.

Japan stands out among countries heavily dependent on energy from the Persian Gulf, having so far refrained from calling for conservation measures seen in places like Australia and South Korea. The nation has relied on releases from its strategic oil reserve, while seeking alternative sources of supply. The government is mindful of not hurting economic growth or spurring panic among consumers.

The public appears keen for more action though. Some 74% of those surveyed in a recent poll by Nikkei and TV Tokyo said energy-saving is needed. In another poll last week by broadcaster ANN, 64% of people said the government should call for conservation measures.

“The public is very conscientious, so when the government makes a request, people tend to make a real effort to comply,” Trade Minister Ryosei Akazawa said at a press briefing on Friday. “We should be careful not to exaggerate things or spread horror stories that make people overly anxious,” he said, adding that measures were not needed at the moment.

Takaichi has said repeatedly that Japan has enough oil for the time being and that the country has secured stable supply into next year. However, the country has not been immune from the knock-on impacts of the war, now in its ninth week, and the double blockade of the Strait of Hormuz. A shortage of naphtha has led to a major toilet maker suspending new orders and is also hitting petrochemical and other home-fixture firms.

Major business and industry organizations have also taken a careful approach to commenting about the need for demand-side measures.

Hideo Suzuki, the executive managing director of the Petroleum Association of Japan, said in an interview with Nippon TV on Thursday that Japan was the only nation reliant on Middle Eastern oil that hadn’t taken steps to suppress demand as he called for swifter action. 

However, the association released a statement on Friday, saying the country has secured enough oil for the time being, and that no immediate measures to restrict consumption were needed. Suzuki’s remarks were based on a scenario that should the war persist, measures may be required, the PAJ said. 

A spokesperson for the organization declined to comment on why the PAJ had released a statement clarifying Suzuki’s comments.

While the central government has been reluctant to go ahead with conservation measures, efforts are emerging at the local-government level. Tottori prefecture has made an early start to an annual campaign encouraging bureaucrats to ditch suits and ties in favor of lighter clothing to cut air-conditioning use.

©2026 Bloomberg L.P.

Your Excellency, we are witnessing a global shift where energy security has reclaimed the spotlight. From your perspective, how has the current landscape changed the way nations must prioritise their energy infrastructure and supply chains?

Energy security is now the absolute priority. We have seen how geopolitical conflict forces countries to take drastic measures. Initially, the release of strategic petroleum reserves (in March) — coordinated by the IEA and various nations — helped lower oil prices after they spiked to nearly US$120. But security is about more than just emergency reserves; it is about a balanced energy mix and infrastructure capabilities. We are seeing an accelerated path to increasing capacities in thermal, nuclear, and renewables. Technology must now play a lead role in optimising every molecule and improving consumption efficiency to shield economies from the inflation and GDP impacts of volatile pricing.

In a world of fragmented supply chains, what specific strategies do you recommend for building energy infrastructure that is truly resilient for the next decade?

Resilience requires a marriage of incentives and realism. While energy transition is the buzzword, the reality is that we haven’t seen sufficient funding or encouragement from investment banks to meet the goals. We must be realistic: we will never stop needing oil and gas for baseload power. At the same time, we need strategies that offer accelerated incentives for businesses to invest in new energies such as solar, which is the most efficient entry point. A resilient system is one that integrates renewables, advanced storage and battery technology while maintaining a strong, optimised foundation of hydrocarbons.

How do you see the evolving role of natural gas in strengthening energy security and diversifying the global energy system? Why is the Eastern Mediterranean a strategic factor in this regard?

The world has agreed that natural gas is the “accepted” transition fuel. The Mediterranean basin is now a focal point for supermajors because of its existing, high-quality infrastructure — our LNG plants, extensive pipeline networks, and deep-water ports. We are seeing a new level of collaboration between Egypt, Cyprus, Israel, and Greece. Whether it’s connecting Cypriot gas to Egyptian facilities or exploring new frontiers in Libya and Algeria, the Eastern Mediterranean is the future of energy for Europe. This isn’t just about electrification; it’s about the molecules needed for fertilisers and petrochemicals that keep the global economy running.

Peace talks between the two sides stalled again after US President Donald Trump canceled a planned trip by his top envoys to Islamabad in Pakistan, saying that Iran had “offered a lot, but not enough.” Iran’s President Masoud Pezeshkian said his nation won’t enter “imposed negotiations under threats or blockade,” adding that trust won’t be rebuilt “without ending hostile actions.”

As of Sunday morning, observable traffic leaving the Gulf through Hormuz was down to a small coastal cargo ship, vessel-tracking data compiled by Bloomberg show. A small chemicals and oil-product tanker was the only one seen making its way in the opposite direction. The waterway has been largely empty since Iranian gunboats fired at ships and US military intercepted Tehran’s vessels in the past week.

Iran continues to fill supertankers with millions of barrels of crude, even as it remains unable to deliver them. A satellite image from Sunday morning covering Kharg Island and the surrounding waters shows two very large crude carriers moored at the terminal and at least 19 other ships anchored nearby.

The vessels seem to be congregating off Kharg — and another group accumulating near Chabahar close to the border with Pakistan — as the US Navy prevents Iran-linked ships from moving out of the Gulf of Oman. American forces intercepted the sanctioned M/V Sevan in the Arabian Sea on Saturday, the latest incident after other vessels were turned around last week while at least two others were boarded in Asia. 

The US has dialed up the pressure by sanctioning Hengli Petrochemical (Dalian) Refinery Co., one of China’s largest private oil refiners, citing its purchases from Iran. The move reflects a broader push to isolate buyers of Iranian oil. China has been the top importer. 

Ship Movements

Ships observed leaving the Gulf since Saturday morning were limited to three small oil tankers, a small LPG tanker, two bulk carriers and two small coastal cargo ships.

Two of the tankers, both of which crossed on Saturday, are sanctioned by the US and are now anchored off Oman near Shinas. The third, a small products carrier, left Dubai on Thursday and was last seen exiting the strait on Sunday morning. Its destination is unclear.

Tracking signals suggest the LPG tanker left Iraq’s Umm Qasr port in mid-April and that it, too, is now anchored off Oman. One of the bulk carriers followed a similar route.

The other bulker is hugging the Iranian coastline, heading east through the Gulf of Oman.

Observed inbound traffic since the start of Saturday has been limited to a single small chemical/oil products tanker and two tiny coastal cargo ships.

The tanker was heading past Iran’s Qeshm Island, signaling its destination as Hamriyah in the United Arab Emirates. One of the cargo ships has gone to Khasab at the tip of Oman’s Musandam Peninsula, while the other is heading along the Iranian coast.

Vessels transiting Hormuz with active Automatic Identification System signals during the past day were confined to a narrow northern lane near the Iranian islands of Larak and Qeshm, a route approved by Tehran.

The US blockade may encourage Iran-linked ships entering or leaving the Gulf to switch off their tracking signals to avoid detection, making it harder to get an accurate picture of traffic through the waterway. This means transit figures may sometimes be revised higher when vessels reappear far away from the riskiest waters.

It was common, even before the US imposed its latest restrictions, for Iran-linked ships to stop sending signals as they headed into the Strait of Hormuz to exit the Gulf. They generally didn’t enable them again until well into the Strait of Malacca in South East Asia, about 13 days sailing from Iran’s Kharg Island.

NOTES: 

Because vessels can move without transmitting their location until they’re well away from Hormuz, automated positioning signals were compiled over a large area covering the Gulf of Oman, the Arabian Sea and the Red Sea to detect those that may have departed or entered the Gulf.

When potential transits are identified, signal histories are examined to determine whether the movement appears genuine or is the result of spoofing — where electronic interference can falsify the apparent position of a ship. 

Some transits may not have been detected if vessels’ transponders haven’t been switched back on. Iran-linked oil tankers often steam from the Gulf without broadcasting signals until they reach the Strait of Malacca about 10 days after passing Fujairah in the UAE. Other ships may be adopting similar tactics and won’t show up on tracking screens for many days.

This tracker will be published during heightened tensions involving Iran, and aims to capture traffic for all classes of commercial shipping.

©2026 Bloomberg L.P.

As of Saturday morning, observable traffic was down to only two very small fuel carriers and one tiny coastal cargo ship, all with ties to Tehran, leaving the Persian Gulf through the crucial waterway, vessel-tracking data compiled by Bloomberg show. No ships were observed on their way in.

While Iran continues to fill supertankers with millions of barrels, the US Navy has stalled several of them near the maritime border with Pakistan before they can leave the Gulf of Oman into the Arabian Sea, creating a bottleneck that underscores the growing difficulties for the Islamic Republic’s exports. 

Tensions escalated this week as Iran demonstrated its tight grip over Hormuz and the US maintained its naval blockade, while diplomatic efforts to get both sides to negotiate a peace deal have proven elusive. Iranian Foreign Minister Abbas Araghchi arrived in Pakistan ahead of the arrival of US envoys, but prospects remain slim for direct talks to end the conflict that has upended global energy markets.

The US has added to its pressure by sanctioning Hengli Petrochemical (Dalian) Refinery Co., one of China’s largest private oil refiners, citing its purchases from Iran. The move reflects a broader push to isolate buyers of Iranian oil. China has been the top importer. 

Vessels transiting Hormuz with active Automatic Identification System signals during the past day were confined to a narrow northern lane near the Iranian islands of Larak and Qeshm, the route approved by Tehran.

The US blockade may encourage Iran-linked ships entering or leaving the Persian Gulf to switch off their tracking signals to avoid detection, making it harder to get an accurate picture of traffic through the waterway. This means transit figures may sometimes be revised higher when vessels reappear far away from the riskiest waters.

It was common, even before the US imposed its latest restrictions, for Iran-linked ships to stop sending signals as they headed into the Strait of Hormuz to exit the Persian Gulf. They generally didn’t enable them again until well into the Strait of Malacca in South East Asia, about 13 days sailing from Iran’s Kharg Island.

NOTES: 

Because vessels can move without transmitting their location until they’re well away from Hormuz, automated positioning signals were compiled over a large area covering the Gulf of Oman, the Arabian Sea and the Red Sea to detect those that may have departed or entered the Persian Gulf.

When potential transits are identified, signal histories are examined to determine whether the movement appears genuine or is the result of spoofing — where electronic interference can falsify the apparent position of a ship. 

Some transits may not have been detected if vessels’ transponders haven’t been switched back on. Iran-linked oil tankers often steam from the Persian Gulf without broadcasting signals until they reach the Strait of Malacca about 10 days after passing Fujairah in the UAE. Other ships may be adopting similar tactics and won’t show up on tracking screens for many days.

This tracker will be published during heightened tensions involving Iran, and aims to capture traffic for all classes of commercial shipping.

©2026 Bloomberg L.P.

Carney has made energy security and independence a cornerstone of his economic agenda. Ottawa has been trying to accelerate approvals of major energy projects that reduce reliance on exporting to the US, including signaling support for a new million barrel a day oil pipeline from Alberta to the BC coast.

“We’re starting to see improvement and we thank the federal government for acting expeditiously on this,” Matthew Akman, Enbridge’s president of gas transmission and midstream, said at a press conference. “There’s more of a sense of purpose and an an intent and a prioritization, which is what we need to see in Canada.”

The Sunrise pipeline expansion will increase natural gas transport capacity by as much as 300 million cubic feet a day on Enbridge’s main gas transport system, the company said. That extends from the Montney shale formation in the northeast down into the US Pacific northwest. It will also add about 139 kilometers of new pipeline and 11 pipeline looping segments. 

Construction is scheduled to start this summer and be in service by late 2028. 

Still, Akman said there is room for improvement. He said the company finds that the regulatory process moves faster in the US, which is driving investment by the midstream company south of the border. 

Last week, Enbridge was granted nine permits by President Donald Trump to operate existing pipelines that cross into the country from Canada and expand throughput on a system in North Dakota.

The 36 First Nations that recently acquired a 12.5% stake in the West Coast gas system will have the option to participate in ownership of the expansion, he said.

(Adds US permits in second to final paragraph)

©2026 Bloomberg L.P.

Mills, a Democrat running for US Senate, bucked her own party in rejecting a proposed moratorium on permitting for data centers larger than 20 megawatts until November 2027. The veto likely kills the measure in its current form. While the proposal garnered nearly unanimous support from Democratic legislators when it passed earlier this month, the number of backers is still well short of the two-thirds threshold necessary for an override. 

Political pushback against data centers is rising nationally. While the industrial projects are key cogs in the advancement of artificial intelligence, opponents are concerned about their effects on energy prices and water availability. Maine only has nine data centers, but developers have been exploring smaller-scale projects. 

Mills opposed the freeze because it would stop a planned data center that would replace a recently shuttered paper mill in Jay, a town about 60 miles north of Portland. She unsuccessfully pushed lawmakers to include an exemption for the $550 million project, which would create as many as 1,000 construction jobs and 150 permanent jobs once in operation, according to its developer.

In her veto message Friday, Mills pointed to the “devastating blow” that the mill’s closing has had on Jay, which is located in her home county.

“I supported the exemption and would have signed this bill if it had included it,” Mills said.

Mills, a two-term governor, is trailing political newcomer Graham Platner in the June 9 Democratic Senate primary despite winning the backing of Senate Minority Leader Chuck Schumer and other establishment Democrats. Recent polls show Platner leading by more than 25 percentage points. 

Representative Melanie Sachs, the Freeport Democrat who sponsored the bill, called Mills’ decision “simply wrong” and criticized the governor for rejecting a pause that she said most Mainers support.

“While a veto might protect the proposed data center project in Jay, it poses significant potential consequences for all ratepayers, our electric grid, our environment and our shared energy future,” Sachs said in a statement.

Democratic politicians across the US have seized on opposition to data centers as part of an affordability pitch ahead of the midterm elections. Vermont Senator Bernie Sanders and New York Representative Alexandria Ocasio-Cortez have proposed legislation that would prohibit “AI data centers” until national safeguards are established. Some Republicans, including Florida Governor Ron DeSantis, are also calling for limits on data center development. Lawmakers in other states including New York, Georgia and South Carolina have proposed freezes similar to the one vetoed by Mills.

The Maine legislation also would have established a state council to assess both the economic opportunities posed by data centers and the risks to ratepayers, grid reliability and the environment. Mills said that despite her veto, she believes the state should begin planning for the potential impacts of large-scale data centers.

(Updates with legislative sponsor’s comments in eighth paragraph.)

©2026 Bloomberg L.P.