Iran War Adds $330 Billion to Global Energy Import Bill

By Irina Slav - Aug 29, 2026

• The Iran war added an estimated $330 billion to global oil, fuel and LNG import bills between March and August, with crude accounting for nearly half the increase.
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• Europe suffered the biggest hit at $78 billion, followed by China at $35 billion and India at $22 billion, reflecting their heavy dependence on imported energy.
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• The pain could persist even after the war ends, as elevated LNG prices and damaged Middle Eastern and Russian refining capacity keep global fuel supplies tight.
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The war between the United States, Israel, and Iran has caused the oil and gas import bill of the world to swell by as much as $330 billion over the six months between March and August. That’s despite a smaller-than-feared oil price climb and equally smaller-than-feared rise in gas prices. However, the war is not over yet. The bill could swell further.

The data comes from the Finland-based climate think tank Centre for Research on Energy and Clean Air, and it refers to money paid to import oil, fuels, and LNG versus what analysts had forecast as prices for the period. The outlet called the Persian Gulf disruption the biggest one since the 1990 Gulf War, with the European Union the region to suffer the most financial pain.

The biggest share of the total extra import bill came from crude oil, which accounted for $164.1 billion of the total. Next came diesel and gasoil, which accounted for $73.8 billion, and gasoline, which accounted for $35.7 billion of the total extra cost of energy imports. Liquefied natural gas was $38 billion more expensive for importers than it could have been, and jet fuel booked an extra import cost of $20 billion.

According to the figures CREA released this week, the European Union saw its energy import bill surge by $78 billion in the six months between March and August versus what analysts expected. The reason is that the EU is highly dependent on oil and gas from abroad, notably U.S. crude and liquefied natural gas, because of its sanctions on Russian hydrocarbons and the absence of any meaningful domestic production of either oil or gas. Besides, the EU’s largest local supplier of the energy commodities, Norway, has limits to how much it can export to its partner bloc.

Next on the list of biggest sufferers from the war’s impact on energy commodity prices was China, which paid an extra $35 billion over the six months to August. China is the world’s biggest crude oil importer and also the world’s biggest LNG importer. Yet China severely shrank its imports after prices surged in the wake of the first U.S. and Israeli strikes on Iran. Indeed, many analysts argue that China, in a way, saved the world from an oil price crisis by reducing imports and tapping its massive stockpiles, estimated at between 1 billion and 1.4 billion barrels as of the start of the year.

India suffered the third-strongest financial impact of the war, having to pay an extra $22 billion for its energy imports over the period under review. This is not a surprise since India is even more dependent on oil and gas imports than the member states of the European Union. India is especially dependent on oil imports, much of which it used to import from the Middle East. This made it directly vulnerable to the export flow disruption caused by Iran’s closure of the Strait of Hormuz in response to the U.S. and Israeli strikes.

Other Asian countries besides China and India also felt the pain from war-related price surges in crude oil, liquefied gas, and fuels, all paying extra billions for their hydrocarbons. The Centre for Energy Research and Clean Air noted the war and the abovementioned price surge had crimped demand for fuel commodities, reporting that their extra import bill calculations reflected what importing nations and regions actually bought and not what they would have bought had the war not begun at the end of February.

The pain is far from over, meanwhile. Over the six months to August, the price of LNG in Asia has averaged a level some 75% higher than what analysts expected for the period before the war began. In Europe, the price of liquefied gas has been 60% higher than pre-war expectations. Both prices are set to remain at current levels and may move even higher because the European Union is facing potential gas shortages unless it starts buying now for the winter, and Asian countries also need to stock up for the cold months.

Oil prices are also higher than pre-war levels, and quite considerably, while fuels have added the most—and are about to remain a lot more expensive than they were until March. The International Energy Agency estimated earlier this year that as much as a fifth of refining capacity in the Middle East, totaling some 9.6 million barrels daily, has been knocked out by hostilities. This, coupled with refinery damage in Russia from Ukrainian drone attacks, has severely constrained the world’s refining capacity, and therefore fuel output. The fuel squeeze will likely outlast the war, whenever it ends, spelling higher energy bills for importers for longer.

The little silver lining of this dark energy import bill cloud, per CREA, comes from wind and solar. These, along with other low-carbon energy sources, saved importers a total of $36 billion in the six months from March to August. It may not be a lot, but it is better than no savings at all.

By Irina Slav for Oilprice.com

 

Goldman Sachs Sees Diesel Refining Margins Soaring to $63 a Barrel

By Irina Slav - Aug 31, 2026

Refiners are set to reap stronger profits on the global diesel shortage, Goldman Sachs has said, revising its earlier profit forecast to double the total profits that refining companies would make from the squeeze.

“Rising strikes on refineries in the Middle East and Russia have further constrained already-stretched global refining capacity, pushing refined-products margins to new highs,” the bank’s analysts wrote in a note, as quoted by Bloomberg. “Diesel remains at the epicenter of the rally,” they added

Global diesel stocks are running low due to refinery damage in the Middle East and Russia. According to Goldman’s commodity team, refinery outages are currently 60% higher than the seasonal average, and the tightness in diesel will extend into next year.

Fuel exports from the Persian Gulf are running at some 40% of pre-war levels, the analysts also said, compared to an estimated 70-80% for crude oil exports.

As a result, Goldman now expects refining margins for diesel to reach $63 per barrel in the United States in 2027, and for refiners in the European Union, the margin is seen averaging $49 per barrel. That’s up from an earlier profit forecast of $27 per barrel for U.S. refiners and $19 per barrel for European Union refiners.

In Europe, the situation is additionally complicated by a shortage of refineries, as EU climate regulations forced energy companies to shut down refining capacity in anticipation of demand destruction that has yet to materialize.

Meanwhile, several refineries in the Middle East have suffered damage amid the U.S. and Israeli war with Iran, and Russia has instituted a diesel export ban because of a squeeze on production from Ukrainian drone attacks. Moscow recently extended the ban on diesel exports until the end of September.

Refinery margins are running at record highs across the world as the energy crisis unfolds. In the United States, the crack spread hit three digits for the first time ever earlier this month.

By Irina Slav for Oilprice.com

ECOCIDE

Tanker Caroline Bezengi Intact and Still Leaking Crude Oil

The Caroline Bezengi aground off Jazirat Al Qibliyyah on August 27, still leaking crude but looking intact (Copernicus/CJRC)

Published Aug 29, 2026 7:01 PM by The Maritime Executive

The latest imagery, taken on August 27, shows that the wreck of the VLCC Caroline Bezengi remains intact. The tanker is still leaking oil, but the leakage appears to be no worse than it was when last seen in imagery on August 22. The Caroline Bezengi has been beached on rocks off the southwest tip of Jazirat Al Qibliyyah, one of the Hallaniyat Islands off the coast of Dhofar in the southwest of Oman, since about June 23.  

On August 22, imagery was taken when seas were high and the top surface of the tanker deck was covered by waves. The latest imagery shows no deformation of the hull, but the tanker is likely to have settled deeper in the water.  

Ambrey, who is coordinating the salvage effort, has not released a press statement since the first issued on August 13, and there has been no coverage of the state of the wreck from the Oman News Agency, suggesting that for the moment there is no immediate crisis or fear that the tanker will break up.

The Oman Meteorology weather forecast for the area is showing Khareef conditions still set in, with rough seas, wave heights from 2 to 4 meters, and southwesterly wind speeds of about 25m/s (55 mph). There is no sign yet of a break in the weather, and indeed, according to forecasts, wave conditions are likely to worsen from September 3 onwards. Rough seas and strong winds will help with the dispersal of the leaking oil, a plume from which is still visible on surface water, spreading towards the North East.

 

The oil plume evidently from the Caroline Bezengi, August 27 (Google Earth/Copernicus/©CJRC)

 

In these conditions therefore, it is not surprising to see no sign of salvage activity either around the stricken tanker itself, or of Ambrey establishing its forward base on the island of Halliniyat, some 20nm to the west, where there is a tactical 1300m runway and a small protected harbor. Better conditions, more favorable for lightering operations and a potential refloat of the tanker, can be expected towards the end of September.

The Caroline Bezengi was hit by an explosion on June 8 while off the coast of Oman. The tanker had completed a transit of the Suez Canal on May 30 and had left the Maritime Security Transit Corridor when the explosion occurred. The crew was taken off without injury some four days later. The tanker was laden with oil taken on board at Novorossiysk and was destined for Gujarat, India. The tanker is sanctioned by the EU, UK, and US (OFAC), and has a past association with Russian state shipowner Sovcomflot

Ambrey has been called in to coordinate the salvage operation, to lighter off the cargo if feasible, and also to refloat and recover the tanker if its condition allows. Ambrey is also setting up an oil clear-up operation, to activate if this becomes necessary in the event of the tanker breaking up. 

Although Ambrey has formally been certified as a full member of the International Salvage Union only since May this year, it was responsible for the hugely challenging recovery of the Greek-registered Panamax Sounion (IMO 9312145), which was the subject of a sustained attack in the Red Sea by the Houthis in August 2024. After the crew of the Sounion had been evacuated by units from the EU’s Operation Aspides, the Houthis subsequently raided the tanker and set off fires using explosive charges. The Ambrey-coordinated operation landed a salvage crew back on the Sounion while it was still on fire and under Houthi threat, took the tanker under tow northwards, and managed to recover most of the cargo, thereby saving not only its value for the insurers but also averting an environmental catastrophe in the Red Sea. Ambrey therefore has the credentials and confidence to take on a complex and difficult salvage operation, which the recovery of the Caroline Bezengi is certainly proving to be.

China’s Expansion In Squid Fishery Poses New Maritime Security Challenges – Analysis

File photo. An Argentine Naval Aviation Command aircraft monitors a foreign fishing vessel during Operation Mare Nostrum II in the South Atlantic in late March 2025. (Photo: Argentine Ministry of Defense)

August 30, 2026
Diálogo Américas
By Juan Delgado

Key Takeaways

:A Milko Schvartzman study of 84 licensed Argentine squid boats finds firms under Chinese control own about 63% of the fleet versus ~18% Argentine capital—via two decades of buyouts, subsidiaries, and reflagging, not only high-seas IUU.

Analysts say the same companies can fish legally inside the EEZ and on the high seas, mixing catches and gaining Chinese tax treatment that undercuts Argentine exporters; FULASP puts foreign Southwest Atlantic harvests at 1.5–3 million tons a year versus Argentina’s 750,000–900,000.

Regional replies include Argentina’s Operation Mare Nostrum, a five-year U.S. maritime-patrol plan, Chilean and Peruvian patrols, and ~$1.82 million fines on two Chinese ships; the piece argues ownership and traceability still lag vessel watching.

The expansion of China’s fishing fleet in South American waters is no longer limited to the large concentrations of vessels operating on the high seas along the edge of the region’s exclusive economic zones (EEZs). Chinese companies have also expanded their presence within national fishing fleets through acquisitions, local subsidiaries, and the reflagging of vessels, allowing them to operate both inside and outside national waters.

Squid is at the center of that pressure. China’s distant-water fishing fleet, widely regarded as the world’s leading source of illegal, unreported, and unregulated (IUU) fishing, has deployed a harvesting capacity in the Southwest Atlantic unmatched by any coastal nation. Its presence — both on the high seas and within national fishing industries — creates new challenges for catch traceability, corporate oversight, and the sovereign management of marine resources.

Chinese capital dominates Argentina’s squid fleet

Companies controlled by Chinese capital now own nearly two-thirds of the vessels licensed to fish squid in Argentina, while Argentine capital accounts for just 17.9 percent of fleet ownership.

The findings come from China and the Control of Fishing Within Argentina’s EEZ, a report by Argentine marine conservation and illegal fishing expert Milko Schvartzman. The study analyzed the 84 vessels authorized to fish squid in Argentina’s EEZ, along with the permits, corporate records, and ownership structures behind them.

“There is a systematic process of foreign ownership and loss of sovereign control over the squid (Illex argentinus) fishery within the EEZ, where corporations under the direct and indirect control of China now manage 63.1 percent of Argentina’s squid fleet,” Schvartzman told Diálogo.


The findings broaden the discussion surrounding China’s fishing presence. The pressure no longer comes solely from the hundreds of vessels operating beyond the 200-nautical-mile limit that illegally enter Argentina’s EEZ. It also includes vessels legally authorized to operate within Argentina’s jurisdiction under the Argentine flag but controlled through Chinese capital, subsidiaries, or beneficial ownership.

Two decades of acquisitions and reflagging

The expansion did not happen overnight. Since 2005, Chinese companies have acquired Argentine fishing firms, established local subsidiaries, and reflagged their own vessels, gradually securing a significant share of the country’s offshore fishing fleet, Schvartzman explained.

The report identifies companies including China National Fisheries Corporation, Shanghai Fisheries Group Co. Ltd., Zhejiang Ocean Family Co. Ltd., Qingdao Haoyang Ocean Fishery Co. Ltd., and Dalian Huafeng Aquatic Products Co. Ltd. Through various corporate structures, these firms operate vessels licensed to fish inside Argentina’s EEZ as well as on the high seas.

The report highlights the cases of China National Fisheries Corporation and Shanghai Fisheries Group to demonstrate how corporate networks previously linked to illegal fishing incidents later became legally integrated into Argentina’s fishing sector. In other cases, Chinese companies simultaneously operate Argentine-licensed vessels inside the EEZ and distant-water vessels outside it to harvest the same migratory squid stocks.

That dual presence exploits gaps in oversight and transparency.

“The lack of oversight, transparency, and traceability, along with violations of Argentina’s Federal Fisheries Law, has enabled unfair competition, fisheries fraud, abuse of crew members, and allowed companies that own vessels involved in illegal fishing to operate on Argentina’s fisheries resources,” Schvartzman said.

According to Schvartzman, this structure creates a gray area in which companies involved in authorized fishing inside Argentina’s EEZ also maintain ties to vessels accused of illegal or unregulated fishing in other jurisdictions and on the high seas. Once catches from different sources are mixed at processing plants, it becomes difficult to determine which seafood was harvested under Argentine regulations and which originated in areas lacking effective oversight.

Vertical integration also provides commercial advantages. According to the report, Chinese regulations allow seafood caught abroad by Chinese companies to enter China as domestic products, qualifying for tax benefits unavailable to Argentine companies exporting to the same market. That imbalance strengthens the expansion of Chinese firms while reducing the competitiveness of Argentine operators.

A biologically fragile resource under growing pressure

The scale of extraction heightens the risk. The Latin American Fisheries Sustainability Foundation (FULASP) estimates that foreign fleets harvest between 1.5 million and 3 million metric tons of marine resources annually in the Southwest Atlantic. China accounts for the largest presence and harvesting capacity within those fleets, compared with the 750,000 to 900,000 metric tons landed annually by Argentina’s fishing industry, according to Infobae.

Between 400 and 600 Chinese fishing vessels operate in the region each year. While overall harvest levels increased 65 percent between 2019 and 2024, the Chinese fleet’s fishing effort grew by 85 percent during the same period.

FULASP Director Raúl Cereseto warned that squid “live only one or two years and play a central role in the food chain,” meaning that “a combination of overfishing and environmental change could soon force us to discuss not merely economic losses, but the depletion of resources that are essential to Argentina’s fishing industry and the entire South Atlantic ecosystem.”

Surveillance, cooperation, and sanctions: The regional response

Countries across the region continue to strengthen efforts against IUU fishing while maintaining maritime domain awareness of Chinese fleet activity in waters adjacent to their EEZs.

In early May, Argentine naval and air assets carried out the 11th edition of Operation Mare Nostrum, a maritime surveillance and control mission coordinated by the Armed Forces Joint Staff Joint Maritime Command.

The integration of ships and aircraft extends surveillance coverage and improves monitoring of Chinese fishing vessels operating along the edge of Argentina’s EEZ and in adjacent high-seas areas. According to Argentina’s Ministry of Defense, aerial surveillance allows authorities to rapidly scan vast maritime areas, identify fishing gear, and collect evidence of violations involving both squid jiggers and bottom trawlers operating in prohibited zones.

International cooperation is reinforcing those capabilities. Following the signing of a letter of intent in May 2026, Argentina is moving forward with a five-year plan with the U.S. Department of Defense to strengthen its maritime patrol, surveillance, and enforcement capabilities.

The program includes technology transfers, personnel training, and technical assistance, as well as new sensors, command-and-control systems, maritime patrol aircraft, and unmanned aerial vehicles capable of operating from the Argentine Navy’s offshore patrol vessels.

Chile’s Navy also conducted an offshore fisheries enforcement operation west of Iquique on July 6. Using a C295 maritime patrol aircraft and specialized personnel, the service detected two groups of foreign fishing vessels operating between 300 and 400 nautical miles offshore, outside Chile’s EEZ but within an area of responsibility established under international treaties and agreements.

In late June, the Peruvian Navy carried out an aerial and maritime surveillance operation in response to the presence of a foreign fleet targeting jumbo flying squid.

The operations conducted by Chile and Peru detected no incursions into their respective maritime zones but demonstrated the importance of maintaining an up-to-date operational picture of large fishing fleets operating near national maritime boundaries and capable of rapidly shifting between different areas of the Pacific.

Argentina has complemented surveillance efforts with economic sanctions. On July 22, the Secretariat of Agriculture, Livestock, and Fisheries of Argentina’s Ministry of Economy upheld fines totaling approximately $1.82 million against the Chinese vessels Bao Fengand Bao Win, which were detected carrying out movements and maneuvers consistent with fishing activity inside Argentina’s EEZ.

“Monitoring and deterrence measures are appropriate, but illegal fishing in the South Atlantic remains a critical problem, particularly because of the Chinese fleet’s efforts to conceal illicit activities,” Schvartzman said, calling for stronger enforcement “because China disregards labor regulations for its crews, jeopardizes maritime safety, and causes environmental damage in the South Atlantic.”

Beyond tracking vessels

China’s expanding control over the companies and vessels exploiting one of Argentina’s strategic marine resources may limit the country’s ability to identify beneficial owners, ensure catch traceability, and guarantee that fishing activities serve national priorities.
The challenge extends beyond fisheries enforcement and reaches the realm of national security. It affects crew welfare, the sustainability of marine resources, corporate transparency, and maritime domain awareness.

Enhanced aerial and naval surveillance, international cooperation, and economic sanctions demonstrate growing regional capacity to detect and respond to illegal activity. Yet these measures primarily target vessel behavior. Addressing the underlying structure requires countries to scrutinize beneficial ownership, share information on vessels and corporate owners, strengthen port and labor inspections, and ensure full traceability of seafood from the point of capture to the marketplace.

This article was published by Diálogo Américas


About Diálogo Américas
Diálogo Américas is a professional magazine published by U.S. Southern Command as an international forum for security issues in Latin America.
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Turkish Commandos Retake Cargo Ship Killing 14 Somali Pirates

Turkish commandos retook the cargo ship killing 14 pirates (TC Defnese file photo)

Published Aug 30, 2026 10:53 AM by The Maritime Executive

Turkish commandos working from a frigate off the coast of Somalia retook the cargo ship Lutuf, which had been seized nearly two weeks ago by Somali pirates. In a statement from Turkey’s Ministry of Defense, they confirmed that the ship had been transporting supplies to the TURKSOM Military Base in Somalia when it was targeted by pirates.

In an operation that lasted 10 days, the Turkish Navy, working with Somali forces, had been closely monitoring the vessel. The Ministry said the ship was retaken on Saturday morning, August 29, after rejecting ransom demands by the pirates. Unconfirmed media reports said the pirates had initially demanded $10 million, but it was later lowered to $2 million.

There had been reports from Somalia of several earlier skirmishes with the pirates. The media said between four and six pirates were killed when they left the cargo ship in a small boat to resupply. The cargo ship was reportedly then placed in a full lockdown by the pirates. The crew of the Lutuf consisted of 10 members: six Indian nationals, one Turkish national, one Georgian, and two Serbian security guards.

 

Pirate on the bridge of the Turkish cargo ship (TC Defense)

 

The 1,400-dwt Lutuf, built in 1995 and operating under the flag of Cameroon, was seized by pirates in the Indian Ocean waters on Monday, August 17, approximately 4.5 nautical miles south of Maraya on the southern coast of Somalia. According to the information, at least eight pirates boarded the ship and took control. 

“The forces have taken full control of MV Lutuf, which has now safely resumed its voyage,” said the Somali authorities. “Acts of piracy are serious criminal offences carrying severe penalties. The Ministry warns those involved, their backers and anyone who supports or condones such acts that they will be held accountable and brought to justice.”

Somali pirates are thought to be still holding four more ships that have been seized since April. Countries including Egypt and Pakistan have been pressuring for a diplomatic solution to release their citizens who are among the kidnapped crewmembers. Pakistani officials had said that because the ships are tankers, it would be too dangerous to attempt to retake the vessels by force.

 

Location of piracy incidents between January 2025 and July 2026 (MSICO report)

Since the beginning of the year, 15 ships have been seized or attacked by pirates, developments that are renewing concern about maritime security in the region that is critical to international trade. Analysts have suggested the pirates were emboldened by the instability in the region, encouraged by the increased cost of oil, and possibly receiving direct support from the Houthis in Yemen.

Turkey’s direct involvement in the operation to free Lutuf demonstrates Ankara’s determination to protect its growing interests in Somalia, which include maritime, military, energy, and infrastructure among others. As part of its deepening involvement, Turkey has deployed the navy ships TCG Kemalreis and TCG Yzb to the Horn of Africa to combat piracy and protect maritime routes linking the Red Sea, Gulf of Aden, and Indian Ocean. 

 

Rescuers continue search for missing after deadly north Cyprus ferry accident

By Gavin Blackburn

Published on 31/08/2026 - EURONEWS

Several survivors told local media they heard a blast shortly before the vessel rolled, with police detaining the captain and more than a dozen others.

Rescuers were still searching for survivors on Monday a day after a ferry capsized off northern Cyprus, leaving eight people dead and more than a dozen missing, authorities said.

The ferry left the northern port of Kyrenia around midday on Sunday en route for the Turkish mainland but capsized shortly afterwards, sparking a major rescue operation, local authorities said.

There were 267 on board at the time.

Of that number, 241 people were rescued, eight died and another 18 were listed as missing, they said. There was no immediate word on their nationalities.

Several survivors told local media they heard a blast shortly before the vessel rolled, with police detaining the captain and more than a dozen others.

Early on Monday, the captain and eight others were brought before a judge where they were placed under formal arrest as northern Cyprus began three days of national mourning, the north's news agency TAK said.

People gather outside the port of Kyrenia in the Turkish-occupied northern part of Cyprus, 30 August, 2026 Uncredited/Copyright 2026 The AP. All rights reserved

Passengers said the boat had begun taking on water before it capsized about four nautical miles (7 kilometres) into the journey.

Footage from the scene broadcast by Turkish television showed the capsized ferry with passengers wearing life jackets sitting atop its orange hull.

Shortly afterwards, the ferry totally sank and is currently lying at a depth of 514 metres, the north’s transport minister Erhan Arikli said.

Recovering the vessel's "black box" would help understand what caused the tragedy, he added.

Some survivors said they heard an explosion at the front of the boat, with others saying there wasn't enough safety equipment.

"Some people had to jump without lifebuoys or life jackets," one young man, Efe Multici, told CNN Türk. "It was literally a fight for survival."

A helicopter flies over the port of Kyrenia in the Turkish-occupied northern part of Cyprus, 30 August, 2026 Uncredited/Copyright 2026 The AP. All rights reserved

Cyprus has been split since 1974, when Turkey invaded and occupied the northern third of the island in response to an Athens-engineered Greek Cypriot coup seeking unification with Greece.

Today the island comprises the self-styled Turkish Republic of Northern Cyprus (TRNC), which declared independence in 1983 but is only recognised by Ankara, and the EU member Republic of Cyprus in the south.

The TRNC is served by regular air and sea links to Turkey.

Passengers Killed and Missing After Turkish Ferry Capsizes off Cyprus

Rescue operations were underway off Cyprus (Turkish TV)

Published Aug 30, 2026 1:51 PM by The Maritime Executive

A large search and rescue operation was underway off the north coast of Cyprus after a Turkish ferry began taking on water shortly after it departed and rapidly capsized miles from shore. The last reports said 237 people were rescued, while seven or eight bodies have been recovered, and between 17 and 22 people are still reported as missing.

The ferry Filojet departed the port of Girne at noon on Sunday for a trip that lasts approximately two hours to the mainland of Turkey. The vessel was a high-speed catamaran ferry, with reports that there were 259 passengers aboard and eight crewmembers. The Filojet was 40.5 meters (133 feet) in length.

 

Filojet was a high-speed catamaran making two-hour runs between Cyprus and Turkey (Filo Denizcilik)

 

The vessel had begun taking on water shortly after departing, and the captain issued an emergency call. It rolled onto its side while it was approximately four nautical miles off the coast. A government minister has said in an unconfirmed report that the vessel later sank in an area of approximately 514 meters (1,686 feet) in depth.

The government of the Turkish community on Cyprus said that rescue crews were able to reach the vessel approximately 15 to 20 minutes after the distress call. Four vessels from the Coast Guard, along with the passenger ship Akgunler 3, were rescuing people from the water and were being joined by five marine vessels and two Coast Guard helicopters from Turkey. Six navy vessels were also joining the search. 

Some passengers had been able to don lifejackets and jump into the water. Video of the rescue operation appears to show people standing on the mostly submerged vessel. Survivors were being brought to hospitals on Cyprus.

 

 

A government official said the service had been suspended on Saturday due to adverse weather conditions. They said the sea conditions were still quite rough but that it was acceptable for the trip. Girne is a popular tourist destination on Cyprus for the Turkish community.

There is speculation that the ferry might have struck an object in the water, and the minister said they would be looking at this as one possibility. The Turkish authorities were also dispatching a vessel with divers to the site, and the plan is to recover the vessel’s "Black Box" as quickly as possible.

The captain and seven crewmembers from the ferry have been taken into custody as part of the investigation.

Turkey’s electric car champion Togg will never turn a profit and is hardly “native”, says ex-Renault Turkey CEO

Turkey's leader Recep Tayyip Erdogan loves posing with Toggs, but in his presidential convoy he is transported in Mercedes (Frankfurt/MBG) vehicles. / @RTErdoganFacebook

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By Akin Nazli in Belgrade August 31, 2026

Turkey’s “native and national” electric vehicle (EV) champion, Togg, faces severe profitability headwinds because of its low-margin assembly operation, Hakan Dogu, a former Renault (Paris/RNO) CEO, told local YouTube broadcaster Mesele Ekonomi on August 28.

“It is impossible for Togg to turn a profit at these volumes,” Dogu said, observing that the eight-year-old company’s target of producing 50,000 vehicles this year falls drastically short of commercial viability.

“They need at least 200-300,000 units [to turn a profit],” he added.

Cabin slung on top of Chinese platform

Dogu also pointed out that Togg has procured complete rolling platforms, including the chassis, steering system, wheel  and suspension, directly from China’s CATL (Shenzen/300750), the world’s largest battery maker, for its upcoming T6X model.

“You put a cabin on top of it, source the display screens from Asia and, maybe, write some software. Your local added value wouldn’t exceed 30%,” he remarked.

China, China and China

During the interview, Dogu also stressed the growing anxiety within European and Turkish automotive circles over China’s mounting dominance in the global EV supply chain. He warned that Chinese carmakers enjoy a structural cost advantage, manufacturing vehicles 40-45% cheaper than their Turkish counterparts.

Turkey has long served as an export hub for global carmakers including Renault, Ford (New York/F) and Toyota (Tokyo/7203), leveraging competitive labour costs and proximity to Europe. Yet, the rapid influx of aggressively priced Chinese EVs threatens to undermine both domestic market share and regional competitiveness.

Separately, Reuters reported on that Turkey's sovereign wealth fund TVF (aka TWF) is to become a shareholder in Togg, with Vstel Elektronik (VESTL.IS) and Anadolu Group Holding (AGHOL.IS) to sell their stakes. The news service cited ​three sources familiar with the matter.

Vestel Elektronik, Anadolu Group Holding, Turkcell (TCELL.IS) ⁠and BMC Otomotiv each hold 23% stakes in Togg as things stand. The Union of Chambers ​and Commodity Exchanges of Turkey (TOBB) owns the remaining 8%.

Two of the sources were reported as stating that ​Turkcell and TVF would buy Vestel and Anadolu Group's stakes, but they did not provide details on the value of the 46% stake sale. Discussions were proceeding and a final agreement was expected soon, ​the sources added.

Saudi Arabia Backs Turkey’s Rapid Renewable Energy Buildout

By Felicity Bradstock - Aug 30, 2026

• Turkey and Saudi Arabia are working toward 5 GW of renewable energy projects, led by a roughly $2 billion, 2-GW solar first phase.
• 
  
• Turkey is rapidly expanding wind and solar, although coal remains its largest source of electricity generation.
• 
  
• Ankara is simultaneously boosting Black Sea gas production and pursuing new regional energy corridors linking the Middle East with Europe.
• 
  

Turkey and Saudi Arabia have announced ambitious plans to cooperate on renewable energy, as both countries aim to deploy vast amounts of clean power. Saudi Arabia has already invested heavily in Turkey’s solar power sector and aims to deepen its energy partnership with Turkey. Meanwhile, Turkey is also continuing to expand its oil and gas production and discussing the potential for new energy routes linking the Middle East and Europe.

Turkey and Saudi Arabia have signed an agreement to add a further 3 GW of renewable energy capacity in Turkey, bringing the country’s total planned capacity to 5 GW, Natural Resources Minister Alparslan Bayraktar announced in August. Bayraktar emphasised that Turkey has “almost accomplished a century’s worth of work” under President Recep Tayyip Erdogan’s leadership, with major progress in renewable energy.

Turkey has “quadrupled its installed electricity capacity, from 32,000 megawatts to 126,000 megawatts,” said Bayraktar, adding that the country had commissioned around 95 GW of new capacity over the past 24 years. Turkey now has Europe’s third-largest installed electricity capacity and consumption, after France and Germany.

Oil production has also tripled, while natural gas output has increased ninefold, and mineral exports have risen tenfold, according to Bayraktar. The massive rise in energy production, both fossil fuels and renewables, supports Turkey’s goal of becoming self-sufficient. The government has set ambitious energy targets for the next decade to help achieve this goal.

Domestic natural gas production in the Black Sea is set to double in 2026 and quadruple by 2028. Bayraktar views the ongoing crisis in the Middle East as an opportunity for Turkey to establish itself as a major energy hub between the Middle East and Europe, as countries seek to diversify energy routes to ensure their energy security. Accelerating the development of alternative new energy corridors could help the Middle East prepare for potential future geopolitical challenges.

In February, Saudi Arabia announced plans to invest $2 billion in the construction of two solar farms in Turkey, with a total capacity of 2 GW, following the signing of an agreement between Bayraktar and his Saudi counterpart, Prince Abdulaziz bin Salman. The two plants are expected to meet the electricity needs of 2.1 million households once operational.

The deal states that Saudi companies will build a solar power plant in the eastern province of Sivas and another in the central province of Karaman. Bayraktar stated, “We view these investments as one of the most important examples of direct foreign investment in our energy sector, and they will be financed entirely through external financing. Credit will also be provided by international financial institutions.”

Hydropower remains Turkey’s largest renewable electricity source, contributing around 17 per cent of total electricity in 2025, while wind and solar account for around 22 per cent. Turkey has a total of 42 GW wind and solar power capacity. However, the country still relies heavily on coal, which contributed around 34 per cent of Turkey’s electricity last year. It is the largest coal producer in Europe, although its coal power is expected to peak soon as the government focuses on greater energy diversification. Turkey imports around two-thirds of its coal generation.

Turkey’s power sector emissions have nearly doubled over the last 20 years, owing to a rise in fossil fuel electricity production to meet the country’s rising power demand. However, the increase in Turkey’s renewable energy capacity has helped limit this increase. Solar power generation doubled between 2023 and 2025, although it contributes just 10.5 per cent of electricity generation. The government aims for 47 per cent of Turkey’s electricity to be produced from renewable energy sources by the end of the decade.

In July, Turkey’s Ministry of Energy and Natural Resources announced the launch of solar and wind power auctions totalling 2.4 GW, with 1.5 GW available across seven wind power projects – six located between Istanbul and Izmir, and Sivas in central Turkey. The solar energy auctions total 900 MW altogether across 14 areas in nine provinces. The bids for the 2026 round must be submitted on October 13.

Bayraktar stressed that the government aims to offer at least 2 GW of wind and solar capacity through auctions each year and vowed that Turkey would achieve its 2035 target of 120 GW of combined capacity on the grid earlier. He also said he expects solar to become the largest electricity source in the country by the end of the year.

Turkey aims to achieve its ambitious energy expansion plans by working closely with international investors and neighbouring countries to accelerate development. The government expects Turkey to become a major energy hub between the Middle East and Europe in the coming decades, attracting significant international investment as countries seek to diversify their energy routes to ensure their energy security.

By Felicity Bradstock for Oilprice.com