Oil Updates — crude jumps on concerns about more sanctions on Russia and Iran

Brent crude futures climbed 69 cents, or 0.9 percent, to $77.61 a barrel at 10:52 a.m. Saudi time. Shutterstock
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Updated 10 January 2025
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Oil Updates — crude jumps on concerns about more sanctions on Russia and Iran

LONDON: Oil prices surged on Friday and were on track for a third straight week of gains as traders focused on potential supply disruptions from more sanctions on Russia and Iran.

Brent crude futures gained $2.50, or 3.3 percent, to $79.42 a barrel by 3:48 p.m. Saudi time, reaching their highest in more than three months. US West Texas Intermediate crude futures advanced $2.39, or 3.2 percent, to $76.31.

“There are several drivers today. Longer term, the market is focused on the prospect for additional sanctions,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Short term, the weather is very cold across the US, driving up demand for fuels.”

Ahead of US President-elect Donald Trump’s inauguration on Jan. 20, expectations are mounting over potential supply disruptions from tighter sanctions against Iran and Russia while oil stockpiles remain low.

This could materialize even earlier, with US President Joe Biden expected to announce new sanctions targeting Russia’s economy before Trump takes office. A key target of sanctions so far has been Russia’s oil industry.

The US weather bureau expects central and eastern parts of the country to experience below-average temperatures. Many regions in Europe have also been hit by extreme cold and are likely to continue to experience a colder than usual start to the year, which JPMorgan analysts expect to boost demand.

“We anticipate a significant year-over-year increase in global oil demand of 1.6 million barrels a day in the first quarter of 2025, primarily boosted by ... demand for heating oil, kerosene and LPG,” they said in a note on Friday.

Meanwhile, the premium on the front-month Brent contract over the six-month contract reached its widest since August this week, potentially indicating supply tightness at a time of rising demand.

Inflation worries are also delivering a boost to crude oil prices, said Saxo Bank’s Hansen. Investors are growing concerned about Trump’s planned tariffs, which could drive inflation higher. A popular trade to hedge against rising consumer prices is through buying oil futures.

Oil prices have rallied despite the US dollar strengthening for six straight weeks, making crude oil more expensive outside the US.


From moros to mass tourism — historical bonds fuel Saudi-Spanish tourism takeoff, says ex-Balearic leader

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From moros to mass tourism — historical bonds fuel Saudi-Spanish tourism takeoff, says ex-Balearic leader

  • Jose Ramon Bauza says Saudi-Spanish tourism ties may be in their infancy but are poised for a fruitful relationship
  • ‘Kingdom has everything to become global leader on vacational and family destinations,’ former Spanish senator tells Arab News

MADRID: Saudi-Spanish tourism ties may still be in their infancy, but for Jose Ramon Bauza Diaz, they already have the makings of a “family affair.”

“We are at the very beginning of what should be a fruitful and successful relationship,” the former Spanish politician turned tourism consultant told Arab News on the sidelines of FITUR, the flagship global tourism fair.

“Everything has yet to be done. I think we are not starting from scratch, but we are at a starting point, and we have both the opportunity to do a lot of things together.”

Spain welcomed a record 93 million visitors in 2024, overtaking the US as the world’s second most visited country by international arrivals. The Kingdom represents a small proportion, with around 182,000 Saudis visiting in 2023.

Even so, Bauza believes the two countries are “warming up” fast, helped by deep historical links dating back to the presence of ‘moros’ — ancient Arabs whose legacy is etched into the Iberian Peninsula’s culture and architecture.

“We believe in the same principles. We believe in family, we believe in trust. We believe in doing things (together). We love being together; we are not people who want to be isolated,” he said. “This is a specific and privileged starting point.”

Tourism is a central pillar of Saudi Arabia’s Vision 2030, with the Kingdom only fully opening up to global visitors about a decade ago. In 2025 it welcomed more than 122 million domestic and international visitors, a 5 percent year-on-year rise that keeps it on track to reach 150 million by the end of the decade.

Religious tourism has been a key driver alongside a strong push into the luxury segment, but Bauza warned that overreliance on a narrow niche could limit the sector’s full potential.

“Saudi (Arabia) is currently very focused on the luxury (segment); that’s perfect — it is (already) one of the best in the world (in that market). But I think the Kingdom can (also) be the best in the world in vacation tourism, family tourism, and the upper middle to high-end (segment),” he said.

Drawing on Spain and Europe’s experience as industry leaders, he argued that no country can afford to compromise on quality.

“Everyone that (sets) quality (apart) is penalized,” he stressed. “Saudi has everything to be a top luxury destination. But as well that, to be the top vacational and family destinations (offering) high quality standards.”

Despite sluggish global growth, the tourism market is set to expand in the coming years, driven by rising consumer demand and easier access to international travel. The sector already accounts for just under 10 percent of global gross domestic product, supports more than 330 million jobs, and is growing about 1.5 times faster than the world economy. A recent report by the World Economic Forum and Kearney projects that annual tourist trips will reach 30 billion by 2034.

For Bauza — who during his tenure as a Member of the European Parliament served as chair of the Tourism Task Force and a member of the delegation for relations with the Arabian Peninsula — these numbers underline both the scale of opportunity and the difficulty of expanding responsibly, especially when it comes to sustainability.

“I always prefer to talk about quality than quantity,” he said. “When I was president of the Balearic Islands, I was not running for how many million tourists we had, but (rather) on how many quality tourism opportunities we could offer.” He added that with the right strategy, quality and quantity could grow together without “over-touristifying” a destination.

Spain has wrestled with over-tourism in recent years, triggering local protests over the sheer volume of visitors. The Balearic Islands, Barcelona, Andalusia and other hotspots have seen mounting anger over the impact on daily life, from water shortages to urban changes that increasingly cater to tourists rather than residents.

“What’s important is to have properly scaled infrastructure to provide the best services,” Bauza said, arguing that destinations needed clear plans taking residents’ needs into account as well as the efficiency and resilience of buildings and infrastructure.

“If we know we will grow in an area in the next 10 or 15 years, we need to provide the infrastructures and the structures (in advance),” he said, adding cities must be designed for both those who live there and the visitors who arrive from around the world, with “a common way of thinking that tourism is part of the way of living.”

Riyadh has made sustainability a core principle of its development blueprint. Flagship projects such as the Red Sea Project, Neom and Amaala are framed around 100 percent renewable energy, biodiversity conservation and bans on single-use plastics in a bid to create “nature-first” destinations.

Bauza said Saudi Arabia — which skipped this year’s FITUR despite a strong regional presence — has a chance to learn from mature tourism markets where rapid growth has brought economic gains but also environmental and social strain when not managed holistically.

“We have the knowledge of the tourism sector,” he said. “As a former president of the Balearic Islands, I’m proud that the big global brands are not only Spanish, they are from Mallorca and Ibiza. We can put this (experience) on the table — not to (tell) anyone what to do, not at all. (But) just to say to them: ‘Look at what we’ve done, see if it works for you. Copy it (if it fits). Let’s do it together because we have decades of experience’.”

In 2021, the tourism ministers of Saudi Arabia and Spain signed a joint statement to “redesign tourism,” agreeing to cooperate on three pillars — sustainability, digital transformation (including smart destinations and data sharing) and human-capital training.

These commitments were renewed in May 2025, when Madrid and Riyadh sealed four new private-sector deals to deepen investment and economic cooperation, with tourism highlighted as a strategic priority.

Spain now sees Saudi Arabia as a key Middle Eastern growth market. The 182,000 Saudis who visited in 2023 made the Kingdom Spain’s top Gulf Cooperation Council source market within a broader Gulf visitor base of 434,000 that year. That momentum has spurred a rise in investment flows.

Leading Spanish hospitality groups such as Melia Hotels International and Barcelo Hotel Group — both out in force at FITUR — are expanding their footprint in the Kingdom. At TOURISE 2025, Melia, Spain’s largest hotel operator, signed a Memorandum of Understanding with Saudi Arabia’s Tourism Development Fund to develop around 1,000 hotel rooms, while Saudia has launched direct Jeddah-Barcelona flights to complement services to Madrid and better integrate Saudi hubs with Spanish gateways.

Bauza welcomed the progress but said more must be done to unlock the full potential and build out services beyond core hospitality.

“Tourism is much more than hotel, much more than a restaurant, much more than a boutique, much more than an airport, much more than a museum. Tourism is an experience,” he said. “The goal is for Saudi people and Spaniards to work together. And the message is: It’s about to come (soon).”

“We need to trust each other, and we’re well prepared to take this step forward hand in hand, identifying the best options for quality tourism, not just quantity. Saudi Arabia is absolutely ready — globally, I see no country more committed.”

He added: “The key word is trust. We need to trust one each other, and we’re very well prepared to do this step forward together hand by hand, identify(ing) the best options for quality, not quantity tourism. And Saudi Arabia is absolutely prepared. Globally speaking, I cannot see any country who is much more committed.”

Bauza called for the Kingdom to secure a strong presence at FITUR to tell its own story: “If you’re not here, you’re not visible. You need a specific strategy for (showing) the many spectacular things you’re doing in tourism. I know because I’ve been there, but people who are not there, they don't know. (And) nobody’s telling them.”