Tensions in Middle Eastern shipping are gradually spilling over, with many banks paying attention to operational risks.

Several front-line professionals from the banking, shipping, and logistics industries stated in interviews that current oil transportation prices on Middle Eastern routes are experiencing significant short-term fluctuations, with some shipping routes facing disruptions and the payment collection cycle for companies being extended. The impact has begun to extend from pricing to areas such as ship financing, accounts receivable, and cross-border payments, with financial institutions closely monitoring the ongoing evolving market and situation. The deputy general manager of a certain joint-stock bank’s Shanghai branch stated that they are currently focusing on ship mortgage financing related to Middle Eastern businesses, paying attention to the safety of mortgage assets on one hand, and being cautious in the approval of new business or raising risk thresholds on the other. (Financial Association)