The UK economy grew 0.1% in May, driven by the service sector, despite falls in production and construction, with analysts noting fragility amid the Iran war's impact on energy prices and supply chains.
The IMF has raised its UK growth forecast to 1% for this year, making it the third fastest-growing G7 economy in 2026. This upgrade comes amid hopes the economic impact of the Iran conflict may be less severe than feared, with oil prices stabilizing and inflation easing.
The Bank of England forecasts that over 5 million homeowners will see increased mortgage bills by end-2028, a rise of 1 million from previous estimates, due to the impact of the Iran war. While the hit won't be as severe as recent years, typical monthly bills could increase by £45.
The Middle East conflict is significantly altering Italian summer vacation plans. Domestic travel costs have risen due to increased demand and limited availability, while international airfares have dropped sharply as fewer Italians opt for foreign destinations. Assoutenti warns of potential price gouging by the tourism sector.
The UK economy contracted by 0.1% in April, driven by a 0.2% fall in services, particularly sports and recreation, partly due to Middle East conflict impacts. Economists expected this contraction, which follows months of growth. Rising energy costs are a key concern.
The UK economy shrank by 0.1% in April, official figures show, as rising energy prices due to the Iran war and the closure of the Strait of Hormuz impacted growth. Services output declined, while construction saw a slight rise.
South Korea experienced its first job loss in 17 months, with 40,000 fewer jobs in May compared to the previous year. The decline is attributed to the prolonged Middle East war's impact on the manufacturing sector and supply chains.
Iran is grappling with an escalating energy crisis due to high summer demand for air conditioning and economic pressures from conflicts with Israel and the US. Despite vast oil and gas reserves, the country faces fuel shortages, import needs, and fears of blackouts. Subsidized energy prices, corruption, and mismanagement exacerbate the problem, leading to limited price reforms and potential social unrest.
A Ukrainian drone strike on a bus traveling from Moscow to Simferopol killed seven and injured 11. Meanwhile, France's military programming bill, aiming for €436 billion in spending by 2030, faced unexpected setbacks in the Senate.
Iran's national football team faces visa delays and disruptions to their World Cup 2026 preparations due to ongoing conflicts and financial difficulties. Spain and Uruguay also grapple with player fitness and team dynamics ahead of the tournament.
European stocks rose Tuesday, with the Stoxx 600 up 0.7%, as markets awaited economic data on the U.S.-Iran war's impact. Investors also watched for euro zone inflation figures and ECB rate hike expectations.
The Middle East war has severely impacted India's energy supply, leading to three consecutive fuel price hikes. Meanwhile, 27 countries are seeking rapid financial support from the World Bank to mitigate the economic fallout.
NRI bank deposits in India fell by nearly $2 billion in March due to geopolitical uncertainty linked to the Iran war, with withdrawals exceeding fresh deposits, particularly in NRERA and NRO accounts.
US acting Navy Secretary Carlos Del Toro reportedly stated Taiwan arms sales were paused due to the Iran conflict. However, US sources deny this, stating President Trump will soon decide on new sales, unrelated to military actions against Iran. Legislator Hsu Chiao-hsin urged Taiwan's government to clearly convey its stance.
The Middle East war is causing a 14% drop in French fuel consumption, suspending US arms sales to Taiwan, and raising concerns of oil shortages. Diplomatic efforts are underway, with the US urging NATO involvement and Pakistan mediating with Iran.
The Asian Infrastructure Investment Bank (AIIB) has launched a $10 billion facility to support member countries facing development impacts from the US-Israel war's effects on Iran. The aid will provide fast-disbursing budget support, finance critical imports, and offer liquidity.
China's major airlines, particularly the 'Big Three', are experiencing significant stock drops and projected net losses in 2026 due to soaring jet fuel prices following the Iran war. Unlike global peers, they have limited fuel hedging, making them vulnerable to price hikes and a price-sensitive domestic market.
EasyJet reported a 27% increase in losses to £377 million for the six months to March, citing the Iran war's impact on jet fuel costs and booking visibility. Revenue rose 12% as the airline hedged against fuel price rises.
France may increase its six billion euro spending freeze to offset the financial impact of the Middle East war. Opposition parties criticize the government for not seeking revenue from the wealthy and large corporations instead of cutting public services.
Italian bank loans to households and businesses rose 2.7% in April, continuing a trend from March 2025. The ABI's monthly report indicates a positive credit situation before the Iran-US war escalated, with future loan demand and GDP dynamics being key factors to watch.
Prime Minister Narendra Modi called for careful use of petrol, diesel, and gas. He stated that reducing reliance on imported fuel will help India manage the ongoing war's effects. The Prime Minister also highlighted India's focus on energy security and investments in solar power. Several infrastructure projects worth around Rs 9,400 crore were inaugurated in Telangana.
US employers added a robust 115,000 jobs in April, surpassing expectations despite global economic uncertainty from the Iran conflict. The unemployment rate held steady at 4.3%. Healthcare and transportation sectors saw significant hiring, while manufacturing experienced job cuts. This resilient labor market suggests the Federal Reserve may hold off on interest rate cuts as inflation remains a concern.
Cap of 20mph in towns and cities and 60mph on motorways would cut fuel demand and combat rising prices, IPPR saysBritain should lower speed limits for drivers as part of a package of measures to reduce the impact of the Iran war on consumers, a thinktank has said.Capping legal speeds at 20mph in towns and cities and 60mph on motorways would help reduce fuel demand and combat soaring oil prices triggered by conflict, according to the Institute for Public Policy Research (IPPR). Continue reading...
