Saudis give oil buyers Red Sea option as Hormuz crisis persists

Saudis give oil buyers Red Sea option as Hormuz crisis persists


3D-printed oil pump jacks and a Saudi Arabian flag appear in this illustration taken March 2, 2026.
| Photo Credit:
Dado Ruvic

Saudi Arabia is giving long-term oil customers the option of receiving their allocations for April via the Red Sea port of Yanbu as it prepares for lengthy disruptions in the Strait of Hormuz.

Buyers who choose Yanbu will only get a portion of their monthly supply due to constraints on how much crude the pipeline to the port can carry, said traders who have been informed by state-run Saudi Aramco. The other option is to receive oil from the Persian Gulf, but at the risk of not getting any if the Strait remains closed, said the traders, who asked not to be named as they’re not allowed to speak to media. 

Aramco, the world’s biggest oil exporter, shipped 7.2 million barrels of crude last month, before Iran effectively blocked Hormuz, most of which was exported from its Gulf terminals of Ras Tanura and Juaymah. The Saudis have a 5 million barrel-a-day pipeline that runs across the country to the Red Sea, although export capacity at Yanbu may be smaller than that. 

Aramco didn’t respond to an emailed request for comment outside regular business hours.

The Saudis typically sell all of their oil via long-term contracts, the bulk of which goes to Asia. Sinopec, China’s biggest refiner, is cutting run rates by 10 per cent to cope with the shortages, while Japan has started to release crude from its national reserves. 

The choices reflect uncertainty over how long the conflict in West Asia will last and when Hormuz might reopen. US President Donald Trump’s shifting explanations of why the US went to war has left allies and adversaries unsure when he’ll seek to end it, and even if he does, Iran has shown little willingness to go along.

If the war continues, the traders said that oil loaded at Yanbu and headed to Asia would likely be marketed on a delivered basis — which means Aramco handles the transport logistics — rather than being sold on the usual loading basis, where customers arrange the shipping themselves. The oil that refiners are being offered via Yanbu is only the Arab Light grade, they said.

Aramco has been ramping up shipments via Yanbu since the beginning of the war, now into its third week. The Saudi producer has also taken the unusual step of offering crude loaded from the port through spot market tenders. However, this is the first time it’s offering contracted supply from the Red Sea terminal.

Beyond Asia, some European refiners have reported receiving less contractual volumes of crude from Aramco. One major processor received no volumes for loading next month, while a another was allocated less than what was requested.

More stories like this are available on bloomberg.com

©2026 Bloomberg L.P.

Published on March 16, 2026



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IDBI Bank shares crash 16% amid govt stake sale cancellation reports

IDBI Bank shares crash 16% amid govt stake sale cancellation reports


The government, along with Life Insurance Corporation of India, had been pursuing the sale of a combined 60.72% stake in IDBI Bank and had invited Expressions of Interest in October 2022.
| Photo Credit:
Dado Ruvic

Shares of IDBI Bank tumbled sharply in today’s trade, crashing 16 per cent on reports that the government will shelve ‌the ‌bids ⁠it received ⁠for a majority stake sale as the offers received were ‌below the ​government’s minimum price expectation.

IDBI Bank shares slump 15%

Stake sale may be scrapped

Bids reportedly below reserve price

The stock hit an intraday low of ₹77.56 on the National Stock Exchange compared with the previous close of ₹92.18, after reports suggested that the government’s long-pending strategic stake sale in the lender may be called off.

According to reports, the government’s plan to divest its majority holding in the bank is likely to be scrapped as both financial bids received for the transaction were below the reserve price. Sources indicated that the bids failed to meet valuation expectations set by the inter-ministerial group overseeing the disinvestment process.

IDBI Bank stock movement today on the NSE

IDBI Bank stock movement today on the NSE

The government, along with Life Insurance Corporation of India, had been pursuing the sale of a combined 60.72 per cent stake in the bank and had invited Expressions of Interest in October 2022. Financial bids for the strategic sale were submitted on February 6 and subsequently opened for evaluation.

Reports suggest that the bids were lower than the reserve price approved by the core group on disinvestment, chaired by the Cabinet Secretary, reducing the likelihood of the transaction moving forward.

Among the entities reported to have submitted bids are Prem Watsa-led Fairfax Financial Holdings and Dubai-based lender Emirates NBD.

The potential collapse of the stake sale has created uncertainty among investors, triggering heavy selling pressure in the counter and weighing significantly on the bank’s market performance.

Published on March 16, 2026



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Gold edges lower as higher energy prices dim rate‑cut hopes

Gold edges lower as higher energy prices dim rate‑cut hopes


The dollar has nudged lower, making greenback-priced commodities such as ‌bullion ⁠cheaper for holders of other currencies
| Photo Credit:
iStockphoto

Gold edged lower on ⁠Monday, weighed down by waning hopes of near-term US interest-rate cuts due to elevated energy prices, while a softer dollar helped limit losses.

Spot gold ‌was down 0.2 per cent at $5,007.58 per ounce, as of 0240 GMT. US gold futures for April delivery fell ‌1 per cent to $5,011.10.

The dollar nudged lower, making greenback-priced commodities such as ‌bullion ⁠cheaper for holders of other currencies.

The US 10-year ⁠Treasury yields eased, increasing the appeal of non-yielding bullion.

“If higher energy prices push inflation higher and the Fed stays cautious about cutting rates, that ​could keep real yields elevated, which ‌tends to be a headwind for gold,” said Christopher Wong, a strategist at OCBC.

Oil remained above $100 a barrel as the US-Israeli war against Iran entered a third week, ‌putting oil infrastructure at risk and keeping the Strait ​of Hormuz shut in the biggest disruption to global supplies ever.

Higher crude prices feed into inflation by ⁠raising transportation and production costs. Gold is considered an inflation hedge, but high interest rates make yield-bearing assets more attractive, weighing on ‌its appeal.

“In the near term, (gold’s) price action may remain choppy as markets reassess the Fed policy path and the trajectory of real yields,” Wong said.

The US Federal Reserve is widely expected to hold interest rates steady for a second straight meeting when it gives its policy statement on Wednesday. Meanwhile, ‌US President Donald Trump said on Sunday his administration is talking to ​seven countries about helping to secure the Strait of Hormuz. Trump threatened more strikes on Iran’s main oil ⁠export hub, Kharg Island, over the weekend and said he was ⁠not ready to reach a deal to end the war. Trump insisted that nations relying heavily on oil ‌from the Gulf have a responsibility to protect the strait.

Spot silver fell 1.2 per cent to $79.57 per ounce. Spot platinum gained 0.8 per cent ​to $2,042.98 and palladium rose 1 per cent to $1,566.91. 

Published on March 16, 2026



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How should CEOs respond to the West Asian crisis

How should CEOs respond to the West Asian crisis


FIREFIGHTING. A Thai-flagged cargo ship caught in the crosscurrents of a raging war in West Asia
| Photo Credit:
ROYAL THAI NAVY

The current West Asia crisis is like no other. When CEOs face any challenge, they look for precedent — previous cases — to decipher their next move. In this case, there is no precedent. The last big disruption and challenge was World War II, and the world for a CEO was dramatically different then.

The West Asia crisis has the following impact:

Prices of all petro-linked products and derivates will go up. Everything from petrol to fertilizers will cost more over time.

Packaging material prices will go up. This is significant for all FMCG brands, where packaging could account for 10 per cent and above of cost base.

Global supply chains will get reorganised again after Covid. Anything that originates in West Aisa or routed through the region will be rethought.

Remittances from West Asia to India will drop, thus depressing real estate prices in many Indian urban centres. Real estate companies will have to offer added value.

Tourism will be hit as travellers play safe. Dubai will take time to get back as a haven for anything.

Luxury and fragrance brands will be hit big. Gold and jewellery prices will drop.

Air travel will get more expensive and stressful.

Indians will rethink their Dubai golden visa application and about sending their kids to West Asia for higher education and jobs.

Electric vehicles will boom.

Some companies and countries may again implement ‘work from home’ policy.

Cost pressure

Affordability will be the “core” issue for consumers and businesses. How should CEOs think about the situation, irrespective of sector?

Start from the consumer end. Will there be disruption either in supply or price or delivery? CEOs must protect this revenue generating end of the business model. Avoid price increases and cutting product grammage. These have collateral damage that is not visible today.

Build alliances with key customers and suppliers to keep the flow running. Extend new terms to them, so that you can build certainty in business and the supply side can serve you better.

Rethink all costs. Don’t cut people. Every business has good costs and bad costs. Bad costs are inventory, too much borrowing, delays in decision-making, and so on. Cut all costs that can be cut. Plan a 20 per cent reduction in costs without cutting headcount. In doing this, cut flab, not muscle.

Lay out the 30-day, 90-day, 300-day plans for your company and communicate them with all employees. Monitor progress, report it, else employees will be worried. It’s better for employees to hear news from you and not the media.

Postpone all incentives for employees by a year and give it back to them when the tide turns. Do not cut employee salary. Conserve cash as much as you can.

Meet as an industry body regularly to analyse the risks and threats to the sector. Keep the State and Central governments briefed on issues and seek help where needed. The current situation needs every country to think like a business.

Renegotiate with banks the capital needs and payment schedule. This is an exceptional situation, and support from banks is vital to keep the show going. Banks also do not want non-performing assets (NPAs) on their books.

Communicate relentlessly and be visible as a CEO. Avoid setting any system in panic.

I also think this is a crucial time for the government. Diplomacy will be priority, but the government must also look at ensuring that every sector has the right inputs to be competitive and tide through this crisis.

Remaining competitive for the day the tide will turn must be the guiding principle as CEOs navigate today.

(Shiv Shivakumar is former Chairman of Pepsico India and former CEO of Emerging Markets at Nokia)

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Published on March 16, 2026



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The Pygmalion effect on cricket and work!

The Pygmalion effect on cricket and work!


FANNING FRENZY. The Indian cricket team lifted its game and the T20 World Cup
as the home crowd filled the stadium to cheer them on
| Photo Credit:
EMMANUAL YOGINI

Was it superior skills, good preparation or a well-rewarded system that enabled Team India to lift the T20 cricket World Cup once again? I think it’s the Pygmalion effect — the psychological principle, according to which ‘people tend to perform better when more is expected of them’. In our work world, would “high expectations” help colleagues outperform on their tasks?

In the 1960s, Harvard University psychologist Robert Rosenthal and his colleagues administered an IQ test at an elementary school in San Francisco. They told the teachers that, based on the test, they had identified in each class some students who were “set to blossom”. A year later, when the students were retested, the scores of the “blossoming” group had climbed significantly higher than the rest. The researchers attributed the superior performance to the various positive ways in which teachers may have interacted with the set. They pointed out that the teachers were more encouraging towards this group, did not criticise their mistakes and used warmer body language. Rosenthal termed it the Pygmalion effect, after the Greek mythological sculptor who fell in love with a statue and made it come alive.

Expectations delivered

If colleagues whom you regard highly don’t deliver on their promise, would you be more disappointed in them compared to team members from whom you expect less? But honestly, can we afford to expect less from any of our colleagues in a competitive world?

However, the truth is we tend to ignore the poor show of some team members as the focus is always on high-potential colleagues. In our professional space, aren’t we all in a constant toggle between engaging and pressurising our team to deliver a superior performance?

A matter of pressure

Some of us go beyond stating expectations to our teams and convert that into pressure. I once found myself becoming helpless with one of my colleagues. I was trying to media train him. He wasn’t able to deliver despite being a capable guy, and it was a crucial ability needed for his next role. In every meeting, I would taunt him about his lack of intent or effort. Initially, he used to fight back, asking me to wait and watch how he would turn around; with time, he became immune to my sarcasm and never developed those skills. For me, he turned out to be a lazy guy and I became a boss who only applied pressure and never encouraged or supported his needs.

We know each of our team members reacts to pressure differently. Some of us bounce back, and many of us are likely to whittle down.

Weight of reputation

How do the superstars in your organisation handle the pressure of performance? Though performance is contextual, every enterprise seems to be dependent on a few leaders or certain teams to give it the boost. It’s difficult to miss the attention these top-performing leaders get; everything they say is heard by the bosses, everything they do is highlighted as best practices by HR and CEOs.

When I was employed and running India operations, I could see the importance given to my counterparts in Singapore and Malaysia, as 90 per cent of the region’s profits came from those two countries. Life wasn’t easy for the leaders helming them; if their numbers dropped, they were under scrutiny, and an increase in attrition was criticised. They were monitored constantly, and it was not clear whether those leaders enjoyed the downside of the attention.

The Indian cricket team must have felt the same after the loss to South Africa in the recent T20 World Cup. Just like the cricket critics, there are many detractors in every organisation, and it would seem like they are waiting for the superstars to fail. The burden of expectation and reputation is a huge challenge to live up to for leaders with a past track record.

Assuming positive intent

Assuming the best for others is hard but necessary, argues Trinity University professor Amer Kaisser in his latest book, The Positive Intent Mindset. His research shows that positivity begets positivity. So, leaders who go in assuming that others are trying their best, they’re going to find evidence that others are trying their best. Whereas if leaders do the opposite, going in with some biases, not only will they feel miserable but will also likely find evidence on those lines. Think about the thousands of people who throng the stadium for India’s cricket matches in spite of the not-so-spectator-friendly facilities in our country. They are fans who want to cheer the Indian cricketers in high-stakes games. With millions of fans supporting, it’s only natural that the Indian cricket team lifts its game and keeps winning more often than not.

Imagine working in an organisation or team where everyone is cheering for you and not just their top performers?

(Kamal Karanth is Co-Founder of Xpheno, a specialist staffing company)

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Published on March 16, 2026



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