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Contrary to media reports, the Iran war has not prompted markets to flee to the financial sanctuary of the world’s reserve currency. Does this mean the conflict might end soon?

Contrary to media reports, the Iran war has not prompted markets to flee to the financial sanctuary of the world’s reserve currency. Does this mean the conflict might end soon?

The flight corridors from Europe to Asia are extremely narrowed by the two wars in Ukraine and Iran. However, there is one airline that still benefits from this –.

So far, Lufthansa has been at a disadvantage compared to its competitors from the Persian Gulf. Despite the war in Ukraine, Gulf airlines continued to fly over Russia, allowing them to use shorter routes and save fuel depending on their flight route.

But now crude oil prices are rising, and that too is leading to higher costs for kerosene. Although Lufthansa claims to have largely secured itself through forward transactions for the current year – airlines typically plan kerosene consumption many months in advance and secure it through price contracts. Nevertheless, customers must prepare for rising ticket costs because they have to circumnavigate the restricted airspace, which often leads to higher consumption.

"We don't know how long this effect will last in the Gulf. Whether this is a turning point or just a temporary phenomenon," the Lufthansa CEO said. Nevertheless, the 100-year history of his company also teaches one thing: travel flows are likely to shift only in the short term if the war ends quickly. The Gulf region will certainly remain attractive as a travel destination: "There are people who quickly forget and buy the cheapest ticket again."

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Couldn't track the exact location or date of this photo, but chances are that it's either in Angola, Mozambique or Guinea-Bissau. Source: Expresso