The Times (May 6)
“The Iran war is causing global disruption as airlines battle fuel shortages and growing costs before the peak summer holiday season.” Current estimates suggest “airlines have cancelled more than 13,000 flights scheduled for this month as jet fuel shortages and high prices caused by the war on Iran cause disruption.”
Tags: 000 flights, 13, Airlines, Battle, Costs, Global disruption, High prices, Iran war, Jet fuel, Shortages, Summer holiday season
Bloomberg Businessweek (May edition)
“For decades, global economic crises have prompted the world to band together.” Such a “coordinated response” looks unlikely today. “As central bankers and heads of state contemplate the potential fallout from the Iran war and the biggest energy crunch in half a century… it looks increasingly unlikely there’ll be another spurt of unified action. The spirit of cooperation is no longer there…. After years of responding to economic shock after economic shock, we’ve been left woefully unprepared to deal with another one.”
Tags: Central bankers, Cooperation, Coordinated response, Economic crises, Energy crunch, Global, Heads of state, Iran war, Potential fallout, Unified action
Business Insider (April 22)
“First, the Iran war made flights more expensive. Now, it’s making them disappear.” Aviation analytics firm Cirium found that “19 of the world’s 20 largest airlines have cut flights in May.” Jet fuel prices have skyrocketed, “doubling in price to almost $200 a barrel. And as the war drags on, jet fuel is getting harder to come by.” Cirium had predicted annual flight capacity growth of 4%-6%, but now envisions a decline of up to 3%.
Tags: $200, Airlines, Analytics, Aviation, Capacity growth, Cirium, Doubling, Expensive, Flights, Iran war, Jet fuel, Prices, Skyrocketed
Fortune (April 7)
The petrodollar “makes up the cornerstone of America’s dominance over global trade, but economists warn the currency architecture has been eroding at its edges for years now.” Indeed, the current era may bring “the biggest change in the world’s relationship to the dollar since 1974, and every day the Iran war continues, the cracks in the old system grow wider and wider. To be sure, the dollar is still overwhelmingly dominant, but it’s no longer the only game in town.”
Tags: 1974, Cornerstone, Cracks, Currency architecture, Dominance, Economists, Eroding, Global trade, Iran war, Old system, Petrodollar
Barron’s (April 5)
The global economy is in for a “crude awakening.” Even under the best (or least worst) scenario, the Iran “war will shave about a percentage point off global economic growth, taking it down to 2% this year. Growth forecasts for large, developed economies—Japan, France, Germany, Italy, and the United Kingdom—were modest before the war at around 1%. If the conflict extends past June, GDP growth for these countries could evaporate, while inflation keeps rising.”
Tags: 2%, Conflict, Crude awakening, Developed economies, Economic growth, Forecasts, France, GDP, Germany, Global economy, Inflation, Iran war, Italy, Japan, Scenario, UK
The Economist (March 22)
“Even the best-case scenario for energy markets is disastrous. Whatever happens, high prices will outlive the Iran war.”
Tags: Best case, Disastrous, Energy markets, High prices, Iran war, Outlive, Scenario
The Guardian (March 17)
“Britons taking out a new home loan face paying almost £800 a year more on average than before the Iran war as “Trumpflation” pushes up UK mortgage rates.” Higher rates come at a bad time, as “1.8m fixed-rate deals are due to end in 2026, and most of these borrowers will need to get a new mortgage. The change of direction comes amid the global shock waves caused by the war.”
Tags: £800, Borrowers, Britons, Fixed-rate deals, Global, Home loan, Iran war, Mortgage rates, Shock waves, Trumpflation, UK, War
