UK manufacturers face a "heavy drag" on competitiveness due to the highest electricity prices in the G7. Make UK and TUC call for expanded government relief, costing £3bn, to cover all manufacturers, as current schemes are too narrow.
Global markets surged Monday following a framework agreement between the US and Iran to end their conflict, leading to a fall in oil prices and the US dollar. The reopening of the Strait of Hormuz was announced, boosting investor confidence in riskier assets.
Thousands of UK companies risk bankruptcy due to soaring energy costs, which are double those in continental Europe. A survey by Make UK reveals a quarter of manufacturers are moving production overseas, and one in 10 fear insolvency within a year.
Slovak Prime Minister Robert Fico criticized the EU's approach to the Ukraine conflict, stating it's a 'war-until-the-last-Ukrainian' and 'until the last euro.' He urged EU leaders to prioritize declining competitiveness and high energy prices, and plans to seek EU compensation for military aid to Ukraine.
A US official, Wright, discussed rising energy prices, the blurry state of US-Iran relations, and potential economic measures like a gas-tax holiday. He stated the administration's goals of controlling energy prices and preventing Iran from obtaining nuclear weapons, while acknowledging trade-offs and the overriding objective of lowering costs for Americans.
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.
The World Bank has warned that the Middle East conflict could slow global economic growth to 2.5% in 2026, down from 2.9%, due to surging energy prices and inflation. Developing countries are particularly at risk, with the bank pledging up to $100bn in support.
The World Bank has reduced its 2026 global growth forecast to 2.5%, citing Middle East conflict, rising energy prices, and market uncertainty. India remains the fastest-growing major economy, projected at 6.6% for FY26-27.
OpenAI reported that China-linked accounts used ChatGPT to generate content opposing US data centers, blaming them for rising electricity prices. The company banned these accounts, stating they aimed to manipulate public debate, though OpenAI found no meaningful influence.
US consumer prices rose 4.2% in May, the highest in over three years, driven by energy costs linked to the Iran war. Tariffs and AI spending also contribute to inflation, complicating the Federal Reserve's interest rate decisions.
US President Donald Trump downplayed a surge in consumer inflation to a three-year high, calling the May CPI data "great." The inflation, driven by soaring energy prices from the US-Israel war in Iran, presents a challenge for Republicans before midterm elections.
US consumer inflation reached a three-year high in May, rising 4.2% year-on-year, driven largely by a more than 60% increase in energy prices. President Trump expressed satisfaction with the report, linking inflation to energy costs and the ongoing conflict with Iran.
Donald Trump stated he "loves the inflation" as it hit a 3-year high of 4.2% in May, driven by energy prices. He linked this to US actions against Iran, despite concerns from the Federal Reserve and financial institutions about potential rate hikes.
India's government provided Rs 1.23 lakh crore to oil companies to freeze fuel prices for 78 days amid the Middle East crisis. The fertilizer minister seeks to double the FY27 subsidy, while LPG cylinder entitlements for PMUY beneficiaries were cut from 9 to 4 due to rising import costs.
The ongoing war may continue to affect consumer and business sentiment in the Asia-Pacific region due to higher energy prices and supply chain disruptions, despite CFOs remaining cautiously optimistic about business prospects.
Despite a ceasefire, energy markets face a slow recovery from the Iran war's 100-day impact. Experts predict months, even years, for prices and supply chains to normalize due to shipping risks, infrastructure damage, and depleting global oil buffers.
The US economy shows slight growth, but rising energy prices due to the Iran war are fueling inflation, impacting various sectors. The Fed's Beige Book indicates stagnant employment and cautious business outlooks, complicating potential interest rate decisions.
Australia sees a 10% drop in electricity prices due to record renewables and battery use, transforming households into market producers. This shift offers lessons for other nations on energy market reform.
A Moody's Analytics study estimates the Iran conflict has cost US households $100 billion due to a 35% surge in oil prices, translating to $750 per household. Rising energy costs are outpacing tax cuts and draining personal savings, impacting middle and lower-income families.
Eurozone inflation surged to 3.2% in May, up from 3% in April, primarily due to a 10.9% rise in energy prices. Increases were seen across all goods and services, including food, non-energy industrial goods, and services, raising concerns about broader price instability and increasing pressure on the European Central Bank to raise interest rates.
Euro zone inflation rose to an estimated 3.2% in May, exceeding the ECB's 2% target, primarily due to a 10.9% surge in energy prices. Services inflation also increased, while food prices cooled. Markets anticipate a 25 basis point rate hike by the ECB.
US inflation rose 3.8% year-over-year in April, the fastest in three years, driven by higher energy prices amid the Iran war. This surge pressures the Fed to potentially hold interest rates unchanged and threatens Trump's economic approval ratings.
Household energy prices in the UK will increase by 13% from July due to soaring wholesale costs caused by the US-Israel war with Iran, affecting 33 million households with an average annual bill rise of £221 to £1,862.
Energy Minister Chris Bowen has made expectations to emitters 'crystal clear' amid a report on BHP shelving green projects. He also discussed falling energy prices, attributing them to renewables and batteries, while acknowledging more work is needed. Bowen defended Australia's COP role and addressed the Snowy 2.0 cost blowout.
