#geopolitical-tensions

#geopolitical-tensions

The national average price for regular gasoline now stands at $4.483 per gallon, up from $4.176 just one week ago. In less than two weeks, gas prices have surged 11%, putting them within striking distance of the all-time AAA record of $5.016 set on June 14, 2022.

Expected inflation costs have spiked from 3.8% in March to 4.8% this month, the largest one-month increase since last year, according to the University of Michigan's April survey of consumers.

"If fuel prices, which represent 25% to 50% of an airline's total operating expenses, remain high and airlines have not hedged, they could go bankrupt."

With geopolitical tensions so fraught, the Bank of England wanted to avoid a knee-jerk reaction and is trying to project calm by keeping rates on hold. But there's clearly unease spreading around the table, as oil prices reach scorching levels and the repercussions risk seeping into the price of everyday goods.

Increased fuel prices are already leading to higher inflation, and we can expect a similar impact in the food and non-food supply chains in the months to come.

The GCC has made itself structurally indispensable to the global economy. This did not happen by accident. It is the result of decades of deliberate sovereign intent.

President Trump's announcement to extend the cease-fire with Iran is significant for small caps, as the earlier conflict had driven oil prices up, impacting domestic businesses.

The IEA sees global oil demand falling by 80,000 barrels per day this year, compared with a projected year-on-year rise of 640,000 bpd in its previous monthly report.