The European Central Bank (ECB) kept interest rates unchanged but stated it is closely monitoring the economic impact of the Iran war, particularly on energy prices and inflation. Future rate hikes remain possible if deemed necessary to meet the 2% inflation target.
The Reserve Bank of India's bi-annual report states an interim US-Iran peace deal could boost India's economic growth by normalizing supply chains. Despite strong macroeconomic fundamentals, the RBI warns of inflation risks from high oil prices and monsoon, and identifies AI cyber threats as a major financial risk.
Kiwoom Securities analyzed that the US May CPI, driven by energy prices, showed a limited spread of inflation across the economy. Core CPI slowed, suggesting easing inflationary pressures, but future oil prices remain a key variable.
The UK economy grew 0.6% in Q1 2026, beating expectations, but economists warn of weakening growth ahead due to global conflict and potential leadership battle in the Labour party, which Chancellor Rachel Reeves warns could plunge the UK into chaos.
The UK economy grew 0.6% in Q1 2026, exceeding forecasts, despite the war in Iran. Chancellor Rachel Reeves attributes this to the government's economic plan, while experts warn of weaker growth ahead due to energy price shocks and political instability.
A Swedish firm’s pursuit of the product testing company Intertek suggests investors’ price expectations are yet to be shifted by the Iran warIt was a bad day for the FTSE 100 index on Tuesday – down 1.4% – but the puzzle in many quarters is why share prices haven’t fallen further since the start of the US-Israel war on Iran. The index is still up by a couple of percentage points since new year, which is not a bet most would have made at the time if they had been told an inflationary energy price shock lay around the corner.An absence of Iran-related corporate profits warnings partly explains the relative resilience, even if those usually take a while to arrive. So, too, the fact that the Footsie is overpopulated with overseas earners for whom the US economy, which isn’t suffering Europe’s soaring natural gas prices, matters more than their home market. And higher oil prices obviously help the likes of Shell and BP. Continue reading...
The UK government has announced plans to weaken the link between electricity and gas prices within the next year, aiming to shield households from fossil fuel price spikes. The reforms would shift older clean energy projects (about one-third of Britain's electricity generation) onto fixed-price contracts rather than market rates tied to gas. The government also increased the windfall tax on some electricity generators from 45% to 55% to incentivize the voluntary switch. While the government says savings could be significant, analysts caution they are likely to be small but should make prices more stable.
The UK government has announced plans to weaken the link between electricity and gas prices by shifting older renewable energy generators to fixed-price contracts. The change, expected within a year, aims to protect consumers from energy shocks when fossil fuel prices spike. The government is also increasing the windfall tax on electricity generators from 45% to 55% to incentivize the switch. While renewable generation is at record highs, cheap wind and solar costs are not fully reflected in bills because wholesale prices are set by gas-fired power plants.
The UK government will announce plans to weaken the link between electricity and volatile gas prices, encouraging older renewable energy generators to move to fixed-price contracts. The change, expected within a year, aims to protect consumers from energy shocks when gas prices spike. Chancellor Rachel Reeves and Energy Secretary Ed Miliband will make statements on Tuesday, with the plans subject to consultation.
