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Oil jumps after tankers warned to avoid Red Sea following US and UK strikes

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Oil jumps after tankers warned to avoid Red Sea following US and UK strikes

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Oil prices on Friday jumped above $80 a barrel for the first time in 2024 after the world’s largest tanker body warned members to avoid the waters off Yemen following US and UK air strikes on Houthi militants.

Brent crude rose 4 per cent to $80.50 a barrel while West Texas Intermediate, the equivalent US benchmark, gained a similar amount to $74.91 a barrel.

The International Association of Independent Tanker Owners (Intertanko), which represents almost 70 per cent of all internationally traded oil, gas and chemical tankers, said in an advisory to members on Friday to “stay well away” from the Bab al-Mandab strait, and for vessels travelling south via the Suez Canal to pause north of Yemen.

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“The threat period for shipping is expected to last for several days,” Intertanko said.

While the majority of container ships have avoided the Red Sea area in recent weeks, the drop-off in oil tanker sailings has so far been less pronounced, with many still choosing to transit the route despite more than 25 attacks by Houthi militants on shipping since November.

US President Joe Biden confirmed overnight that he had ordered strikes, supported by the UK RAF, in response to “unprecedented” attacks by the Iran-backed militants on both merchant and military vessels.

Oil prices have been relatively calm since the start of the Israel-Hamas war in October, with only brief rises that have been faded by traders betting that a serious supply disruption is unlikely if the conflict can be contained.

The market is also viewed as relatively well supplied, with output rising from producers outside the Opec+ cartel and demand growth weighed down by a tepid global economy.

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But the risk of an expanded conflict that affects oil supplies has grown, with Iran seizing an oil tanker near the Strait of Hormuz — the world’s most important oil route — on the other side of the Arabian peninsula on Thursday.

Traders said the growing risks meant those who had been betting against the price would be cautious ahead of the weekend, and may buy back positions.

“The oil market has largely shrugged off risk that the Israel-Hamas war would disrupt oil supplies,” said Bob McNally, founder of Rapidan Energy and a former adviser to the George W Bush White House. “But as Iran and its proxies continue to escalate attacks on commercial shipping and US and allied military bases in the region, that premium is likely to return.”

Denmark-based Torm, which operates a fleet of 80 tankers for oil products, said after the Intertanko warning that it would stop sending vessels into the southern Red Sea.

“Torm has decided to pause all transits through the southern part of the Red Sea for now,” the company told the Financial Times, and was expected to instruct some vessels to pause and send others via the longer route round the Cape of Good Hope.

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While oil supply chains are more robust than many manufactured products, with huge volumes of crude and fuel held in storage by refiners, shippers are likely to face higher freight and insurance costs.

Goldman Sachs said this week that implied oil shipments through the Bab al-Mandab strait had declined by only about 15 per cent or less than 1mn barrels a day. Clarksons, a shipping brokerage, put the decline in tanker transit at about 25 per cent this week compared with the same period last year.

Total crude and refined product oil flows through the strait were as high as 8.8mn b/d in the first half of 2023, according to the US Energy Information Administration.

Western governments have been debating how to respond since Houthi rebels started attacks late last year in an area through which nearly 15 per cent of global sea trade passes.

A US-led military coalition and shipowners had tried to strengthen security in the Red Sea last month but it has done little to deter attacks, increasing pressure on the governments to strike the rebels in Yemen.

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Bjarne Schieldrop, a commodities analyst at SEB, warned that the air strikes may prompt retaliation by Iran and its allies. “The fear in the oil market is that the region is on an unpredictable escalating path where at some point down the road supply of oil will indeed in the end be lost,” he said.

Additional reporting by Stephanie Stacey in London

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Reflections on America’s 250th birthday

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Reflections on America’s 250th birthday

The nation’s capital may be the focal point of the 250th Independence Day celebration, but people all across America have plans to mark the occasion, from boisterous public parades to quiet personal reflections on history.

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Julia Demaree Nikhinson/AP

As the United States turns 250 years old, Americans across the country are spending the holiday thinking about what the big birthday means to them, with reflections and celebrations as diverse as the nation itself.

NPR’s member station reporters fanned out to collect snapshots of the occasion from sea to shining sea.

In one ‘City of Presidents,’ Main Street is decorated for a party

At least two cities in the U.S.call themselves the “City of Presidents” and Cuba City, in Wisconsin, is one of them, largely due to its patriotic Main Street decorations. Every year from Memorial Day through Veteran’s Day, red, white, and blue shields, one for each U.S. president, are prominently displayed high up on the light poles lining Main Street.

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It’s a tradition that began in 1976 to commemorate the country’s bicentennial, says Donna Rogers, who is president of the ongoing project but admitted that when it first started, she wasn’t particularly tuned-in to the display.

“I was raising three little boys and working at John Deere, so I didn’t really pay too much attention to community service at that time,” she said.

Donna Rogers shows off one of Cuba City's presidential lampposts.

Donna Rogers shows off one of Cuba City’s presidential lampposts.

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A few years later, she was tapped to help keep the initiative alive.

When she thinks of the country’s history, she says the signing of the Declaration of Independence and abolition of slavery top her list, plus a current event–

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“Of course, now, our nation’s 250th birthday. I think those three would be the three most important things in history to me,” she said, quickly adding “[the] right for women to vote, don’t forget that, right?”

Rogers and Cuba City are pulling out all the stops for the 250th, with a parade and a mac-and-cheese festival, because “that was some of our founding fathers favorite foods, along with turkey and cranberries and other items.”

She laughed and admitted she googled that. True or not, Rogers says they’ll go all-out to celebrate the 250th in her “City of Presidents”.

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Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

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Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

Washington — There are fireworks, and then there’s what’s in store for Saturday in Washington, D.C.

When the sun goes down on Independence Day, the skies of Washington are expected to fill with a record-setting 850,000 individual fireworks for a 40-minute spectacle like no one has seen before.

A company called Pyrotecnico will attempt the biggest fireworks show in history, using five generations of family know-how and a background in Super Bowls and large musical acts to help America celebrate its 250th birthday with a bang.

“I mean, it is the biggest show that we’ve done,” Rocco Vitale, president of Pyrotecnico, told CBS News. “…My earliest memories of fireworks displays and doing the Fourth of July was here.”

Pyrotecnico has been planning this year’s show since January, using computers to simulate the display. But now it’s time for the real thing.

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Vitale gave CBS News an exclusive look at his not-so-secret weapons: eight barges out on the Potomac River, each one ready to light up the night sky.
 
“Each firing location has a communication device, and its all set on GPS. And once the time of the show is put into the system, it goes at that time,” Vitale explained.

According to Freedom 250, the organizer of the “Salute to America 250 Celebration & Fireworks” on the National Mall, President Trump will deliver remarks at 9:45 p.m. Eastern Time, and the fireworks display will get underway at 10:45 p.m. The event is expected to draw hundreds of thousands of people.


Join CBS for “The Great American Block Party 250,” a primetime special on Saturday, July 4, hosted by CBS Evening News anchor Tony Dokoupil and Entertainment Tonight’s Nischelle Turner, featuring live musical performances, celebrations around the country, and the largest fireworks show in history in the skies over the nation’s capital. Tune in July 4 at 8 p.m. ET on CBS and stream it on Paramount+ and CBS News 24/7.

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Oregon ER doctors win a ‘David and Goliath’ battle against a national company

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Oregon ER doctors win a ‘David and Goliath’ battle against a national company

A national physician staffing firm tried to take over the contract held by Eugene Emergency Physicians to work in local hospitals. The local physicians used a new state law to oppose the move.

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In between shifts in the emergency room, Dr. Dan McGee was in an Oregon courtroom. He was fighting for his practice — Eugene Emergency Physicians (EEP). The group of more than 40 doctors and physician assistants work at multiple emergency departments; it was being replaced by a national company.

“This was big time, David and Goliath stuff,” McGee said. “You see 14 of their lawyers sitting there and you see three of ours.”

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Those lawyers argued that ApolloMD, the national company, violated Oregon’s corporate practice of medicine law. The 2025 law bans corporations from taking control of a medical practice’s operations and finances.

The case garnered national interest because Oregon’s new law targets the loopholes large staffing firms have been employing to circumvent state corporate medicine laws.

Money for control

Most states have laws requiring that doctors own medical practices, not corporations. These rules aim to put patient interests ahead of profit motives. Over the last several years, companies have used a model where a doctor technically owns the local practice, but as Erin Fuse Brown, a professor at Brown University, explains, those physician owners are often not involved in care and cede hiring, firing and other operational functions to the corporation.

Fuse Brown said these arrangements are attractive to hospitals because these companies often promise more revenue and take over the responsibilities that come with running an ER.

“There’s worry that these investors or these corporate management companies should not be totally controlling the operations and the clinical decisions of those who are trained to deliver patient care,” Fuse Brown said.

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The connection to patient care concerned Dr. Jonas Pologe, who works for Eugene Emergency Physicians, in the Eugene, Ore., area. ApolloMD offered local doctors jobs, but Pologe worried that if he pushed back on decisions ApolloMD made, he could lose work hours.

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