The US and Iran digitally signed an MoU, pausing a major Middle East conflict and opening a 60-day negotiation window on Iran's nuclear program, sanctions, and regional security. The deal temporarily eases tensions and reopens the Strait of Hormuz, but key disagreements persist.
Middle East tensions are elevated as investors monitor developments following an alleged Iranian attack on a cargo ship near Oman. The US and Iran disagree on the use of unfrozen funds, while OPEC faces potential instability with Iraq seeking a higher production quota.
Heathrow expects a 1.1% decline in passenger numbers and a £147m profit fall this year, attributing it to the Middle East conflict. The airport also disputes a Department for Transport report that significantly downplays the economic benefits of its proposed third runway.
A U.S. official accused Iran of attacking a Singapore-flagged cargo ship near Oman in the Strait of Hormuz, with no casualties or environmental damage reported. Tensions remain high in the Middle East, particularly between the U.S. and Iran over the use of unfrozen assets, while OPEC faces potential instability from Iraq's demands.
A Beijing-based report indicates the South China Sea remains the US military's most critical strategic theatre, predicting increasingly aggressive operations despite a potential second Trump administration or other global hotspots. US freedom-of-navigation operations in the disputed waters were fewer in 2024 and last year compared to 2023 and 2022.
Donald Trump has instructed the US Department of Justice to investigate oil companies for alleged price gouging, accusing them of not adequately lowering gas prices despite a sharp decline in crude oil costs following a US-Iran ceasefire and the reopening of the Strait of Hormuz.
In April 2026, the US exported 537.9 billion cubic feet of LNG, with Europe as the primary destination. Egypt led purchases for the first time since July 2025. Exports were 6% lower than March but 20% higher than April 2025.
Moscow and Tehran held consultations focusing on a US-Iranian memorandum to end Middle East conflicts. Discussions covered a Lebanese-Israeli ceasefire, Israeli troop withdrawal from Lebanon, and a sustainable truce in Gaza, emphasizing humanitarian access and infrastructure restoration.
Iran announced the closure of the Strait of Hormuz, citing Israel's ongoing attacks in Lebanon. This development coincides with Iran's negotiators heading to Switzerland for US-Iran talks concerning an interim deal, while fighting between Israel and Hezbollah continues despite a reported ceasefire, raising concerns about the peace process.
US-Iran talks to end the Middle East conflict, scheduled for Friday in Switzerland, have been postponed. Vice President JD Vance cancelled his trip to Geneva, adding to uncertainty over a lasting truce. The war, which began in February, has caused significant casualties and economic disruption.
Planned follow-up talks between the U.S. and Iran in Switzerland were canceled due to logistical issues, casting uncertainty on the interim peace deal signed by Presidents Trump and Pezeshkian. Analysts caution it's an initial step, with 'sticky points' like Israel's campaign in Lebanon remaining.
The Bank of England governor warns of increased consumer costs due to the Middle East conflict, despite falling oil prices post-US-Iran peace deal. Interest rates remain at 3.75% as the MPC balances inflation risks with economic slowdown fears.
Iranian President Pezeshkian and US President Trump signed the Islamabad Memorandum of Understanding, a 14-point agreement to end the Middle East conflict. The deal includes a ceasefire, reopening of the Strait of Hormuz, and lifting of US sanctions on Iran, with further talks on the nuclear issue planned.
India is negotiating with the World Bank and ADB for approximately $2.5 billion in loans to fund urban infrastructure and job creation. This comes amid a wider budget gap due to increased subsidies for oil prices affected by Middle East conflict.
Tesco's UK sales growth slowed to 1.8% in Q1, down from 4.2% previously, citing "ongoing uncertainty for many households" due to the Middle East conflict and higher fuel prices. Despite the slowdown, online sales rose 8.9%, and group sales were up 1% to £16.8bn. The retailer expects to meet annual profit expectations.
Tesco CEO Ken Murphy stated that rainy spring weather significantly impacted UK grocery sales more than the World Cup or Middle East conflict. Sales growth slowed to 1.8% in Q1, below expectations, with sunshine boosting consumer spending and football wins causing only temporary, smaller sales spikes.
China's CNPC calls for strengthened maritime security and emergency response capabilities, citing the fragility of global chokepoints like the Strait of Hormuz. Disruptions have driven up prices and inflation, with US inflation reaching 4.2% in May.
Dubai's property market has seen a dramatic slowdown, with sales falling significantly in May compared to April and last year. Market watchers attribute the decline to the ongoing conflict in the Middle East, impacting high-earner and luxury real estate sectors.
Crisil reports Indian airlines' operating profits may drop 10-15% this fiscal due to high ATF prices, airspace restrictions, and rupee depreciation amid the Middle East conflict, despite potential easing in fuel prices.
Lebanese President Michel Aoun asserts Lebanon's negotiation path is independent, seeks ceasefire, and welcomes international aid, including from Iran, while warning against interference in Lebanese affairs.
UK inflation held steady at 2.8% in May, defying expectations of a rise. This suggests the Middle East conflict's impact on living costs may be less severe than feared, despite high fuel prices. Economists are downgrading inflation forecasts and questioning future interest rate hikes.
Escalating Middle East conflict renews focus on energy security and logistics, accelerating global transition to renewables as nations diversify from fossil fuels and chokepoint reliance.
The International Energy Agency (IEA) predicts a 1.1 million bpd drop in global oil demand in 2026 due to the Middle East conflict, revising its May forecast downwards. Demand fell sharply in April-May, with recovery expected in Q4 2024.
European Central Bank board member Gabriel Makhlouf warned that a temporary agreement to end the Middle East conflict might not immediately end the global energy shock, potentially prolonging inflationary pressures due to energy infrastructure damage. Meanwhile, the US Federal Reserve begins a new phase under Kevin Warsh, with expectations of holding interest rates steady amid rising inflation and a strengthening labor market.
