Good morning, nice people. We’re kicking off the week with a meaty issue, with big trade and aviation updates from Egypt and Syria. The 2Q earnings season is also in full swing — and the industry continues to show mixed results amid global trade volatility. But first, an update on the logistics angle of the US-brokered truce in the South Caucasus region…

THE BIG LOGISTICS STORY- Azerbaijan-Armenia truce paves way for US-built logistics corridor: A US-brokered peace accord between Azerbaijan and Armenia — signed on Friday in Washington — has granted the US exclusive development rights to establish a transport corridor connecting Azerbaijan, Armenia, and Turkey. The Zangezur Corridor — now called the Trump Route for International Peace and Prosperity — stands to bolster energy exports in the South Caucasus. The route will operate under Armenian law, with the US leasing the land to a consortium for development and management.

Tehran is not happy: Iran has threatened to block the planned transport corridor, invoking its opposition to foreign interventions close to its borders, Reuters reports, citing Iranian media.

ICYMI- The US previously proposed taking control of the Zangezur Corridor between Armenia and Azerbaijan under a proposal that at the time reportedly included a 100-year concession. The 32km-long road was a major sticking point in diplomatic negotiations between Yerevan and Baku as they sought to end their decades-old conflict over the Nagorno-Karabakh region.

The story is everywhere in the foreign press: Associated Press | Reuters | Bloomberg | Financial Times | New York Times | CNN | CNBC | Washington Post | BBC | The Guardian

WATCH THIS SPACE-

#1- The Egyptian government’s plan to better utilize the Nile to transport goods got a boost with Mopco’s first-ever river shipment of fertilizers, which was received by the Emirati agribusiness Al Dahra, according to a statement (pdf). The state-owned fertilizer giant transported some 750 tons of fertilizer from Damietta, all the way down to Aswan and then Toshka in the New Valley.

SMART POLICY- With 95% of the county’s population and the vast majority of economic activity along the Nile and in the Delta — equivalent to just 5.5% of the country’s total land mass — Egypt has been upping its efforts to utilize the river for efficient and greener freight. A single river vessel can replace around 40 trucks, helping to decongest the road network, slash the cost of road maintenance, and reduce emissions. The country aims to boost the riverways’ share of cargo movements to 10% by 2038, National Nile Company for River Transport advisor Ahmed El Shamy previously told EnterpriseAM.

#2- Turkish Airlines will file a formal bid to buy a minority stake in Spanish carrier Air Europa, according to a disclosure. The move could see Turkish Airlines leverage Air Europa’s strong passenger and cargo operations in the Iberian Peninsula and Latin America. The value of the stake was not disclosed.

We knew this was coming: The Istanbul-based bidder began mulling a 20% stake — the minimum threshold that could allow a future takeover — back in June. Other prospective bidders, such as Air France-KLM and Lufthansa, ditched their plans to make an offer in recent weeks.

#3- Oman to receive TotalEnergies-owned LNG bunker ship: Construction has begun on an LNG bunker vessel owned by global energy giant TotalEnergies at a Chinese shipyard, the Oman Observer reported last week. The ship will be deployed in Oman’s Sohar Port and Freezone, coinciding with the launch of the country’s bunkering hub project Marsa LNG.

REFRESHER- Dredging operations for the USD 1.6 bn bunkering hub project began earlier this year. The project — 80% owned by TotalEnergies and 20% owned by the state-owned giant OQ — will produce 1 mn metric tons of bunkering LNG annually and will be entirely powered by a 300 MW solar plant.

#4- The UAE is aiming to double trade with Russia and other Eurasian countries over the next five years, Russian news agency Tass reported last week, citing comments made by President Mohamed bin Zayed Al Nahyan during talks with Russian President Vladimir Putin in Moscow. Trade turnover with Russia has reached USD 11.5 bn, while trade with Eurasian countries totaled USD 30 bn.

The two countries signed a Trade in Services and Investment Agreement, which is set to boost investments in fintech, healthcare, transport, logistics, and services, and comes on the heels of the UAE’s trade and economic partnership with the Eurasian Economic Union, Emirati state news agency Wam reports.

MARKET WATCH-

#1- Oil prices dipped this morning as the market holds its breath for the outcome of scheduled US-Russia talks this week, Reuters reports. Brent crude futures fell by USD 0.33 to reach USD 66.26 / bbl by 04.30 GMT, while US West Texas Intermediate (WTI) futures dropped by USD 0.39 to trade at USD 63.49 / bbl. Today’s drop, on top of last week’s, represents more than 4% decline in crude rates.

Expect India to shift to MENA crude: India’s giant Reliance Industries is likely to revert to sourcing crude from its traditional Middle Eastern suppliers like the UAE and Saudi Arabia due to geographical proximity if India yields to US President Trump’s pressure to cut Russian oil imports, Reuters reports, citing trade sources. The Indian firm purchased 1 mn barrels of Abu Dhabi’s Murban crude last month through a series of futures contracts, to be loaded in September, and earlier made a Murban acquisition on the spot market, shortly after the European Union imposed fresh sanctions on Russian crude supplies.

This could raise prices on the spot market: “Any hit to Russian supplies will increase their participation (in the spot market) and that would tighten spot market and raise prices. They are a giant player,” said Tushar Tarun Bansal, senior director at oil consultancy Alvarez and Marsal.

It’s not just Reliance: Indian Oil, Bharat Petroleum, and Hindustan Petroleum are planning to pause purchases of Russian crude on the spot market until the government’s stance is clear, Bloomberg reported, citing people it says are familiar with the matter. India is yet to give direction to halt Russian crude imports, though Trump is upping the pressure, recently hiking tariffs on the country to 50% due to its purchases of Russian oil.

REMEMBER- Traders are watching to see if Middle Eastern crude like Murban will increasingly replace sanctioned Russian grades like Urals. Murban contracts typically see less activity than Brent or West Texas Intermediate, but trading volumes of Murban futures have increased in recent weeks amid growing market interest in alternative crude sources as geopolitical tensions shift procurement patterns across Asia and Europe.

Meanwhile, Asia-bound Saudi crude price rose again: Aramco raised the price of its flagship Arab Light crude bound for Asia by USD 1/bbl for September deliveries, taking the premium to USD 3.20/bbl above the Oman-Dubai benchmark, Bloomberg reports citing a price list it saw. That’s higher than the USD 0.90 hike traders had expected — and marks the second month in a row the Kingdom hikes prices, signaling confidence in the strength of demand. Prices to Europe were cut USD 1.30 across the board while shipments to the US saw a slight increase.

#2- Baltic index snaps losing streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 2.1% to 2,051 points on Friday. The capesize gained 4.3% to 3,343 points, while the panamax index fell by 0.9% to 1,635 points. The smaller supramax index rose 0.2% to 1,320 points. The benchmark index for the week rose by 1.6%.

#3- The Drewry World Container Index fell by 3% to USD 2,424 per 40-ft container on Thursday, according to the latest index readings. The drop comes on the back of market turbulence driven by the US tariffs’ play since April. The container forecaster projects the supply-demand balance to fall in 2H 2025, causing spot rates to fall further.

***YOU’RE READING EnterpriseAM Logistics, the essential MENA publication for senior execs who care about the industry that connects producers and retailers to global markets. We’re out Monday through Thursday by 9:15am in Cairo and Riyadh and 11:15am in the UAE.

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CIRCLE YOUR CALENDAR-

The UAE will host the Africa Procurement and Supply Chain Leaders’ Conference on Monday, 25 August until Friday, 29 August in Dubai. The conference will host global industry leaders, policymakers and stakeholders to discuss how AI is changing procurement and supply chain efficiency, sustainability and risk management.

Oman will host Transport Middle East on Monday, 1 September until Wednesday, 3 September in Salalah. The conference will host 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

Saudi Arabia will host the Sustainable Maritime Industry Conference on Wednesday, 3 and Thursday, 4 September in Jeddah. The event is set to gather over 60 speakers and more than 3k participants to discuss maritime decarbonization, digital transformation, regulatory frameworks, capacity building, and sustainable practices.

Algeria will host the Intra-African Trade Fair on Thursday, 4 September until Wednesday, 10 September in Algiers. The fair will host over 75 countries and 2k exhibitors across several sectors to explore investment prospects and exchange information on trade between B2B and B2G.

Oman will host the Comex Global Technology Show on Sunday, 7 September and run till Wednesday, 10 September in Muscat. The event will host over 360 participants and 133 tech startups to show achievements in eGovernment, fintech, smart cities, health tech, agritech and cybersecurity.

Saudi Arabia will host the Smart Ports & Logistics Transformation Summit on Monday, 15 September and Tuesday, 16 September in Jeddah. The summit will host over 40 global and local speakers, industry experts and policymakers to explore smart port solutions, port operations and logistics within Saudi Arabia.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

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