#middle-east-conflict

#middle-east-conflict

"If prices stayed at this level, it would mean an extra $11 billion in annual expense just for jet fuel. For perspective, in United's best year ever, we made less than $5B."

Scandinavian Airlines (SAS) has announced the cancellation of 1,000 flights in April alone and many other major European airlines have announced cancellations or route cutbacks.

Inflation is still stubbornly above its 2% target, and while the jobs sector is weak, it has not been alarming enough to spur significant action from the rate-setting Federal Open Market Committee (FOMC).

The International Energy Agency released a series of steps on Friday that would ease the burden of the global oil price spike. Recognising 45 per cent of the world's oil demand comes from road transport, the agency urged workers to stay at home where possible and consider public transport if they need to travel.

The International Energy Agency has advised member countries to take emergency measures to curb oil demand, following military strikes on Iran that have triggered significant supply disruptions.

After the historical Iranian city of Isfahan was targeted by several major strikes, its governor Mehdi Jamalinejad claimed that serious damage had been inflicted even after blue shields were put on the roofs of culturally important buildings. This is an internationally recognized signal under the 1954 Hague Convention for the Protection of Cultural Property in the Event of Armed Conflict.

War in the Middle East has pushed up energy prices. You can already see that at the petrol pump and, if it lasts, it will feed into higher household energy bills later in the year. Whatever happens, our job is to make sure inflation gets back to its 2% target.

If the price of energy continues to be elevated for the whole year, that could put a crimp on the AI boom. Because that investment is very concentrated in a number of very large firms, and the technology is still ultimately unproven in terms of how much it can deliver, there is a bit of uncertainty there in terms of where the future's going.

We are closely monitoring the developments in the Middle East and the potential implications for our business. At this stage, we have temporarily suspended deliveries in the area, while managing few deliveries via airplane.

Oil prices have risen more than 5 percent following an Israeli strike on Iran's South Pars gasfield as the United States-Israeli war on the country continues to escalate. Brent crude, the international standard, rose 5 percent to $108.66 a barrel on Wednesday, while US West Texas Intermediate crude gained 2.5 percent to $98.65, widening its discount to Brent to the largest since May 2019 on fears of a prolonged conflict.

Iran and its proxies continue to attack U.S. and allied interests in the Middle East even after setbacks leading up to, and following, the start of the war. After the U.S. military bombed Iran's nuclear sites over the summer, Tehran was trying to recover from the severe damage caused by the operation.

The FTSE 100 has made another tentative step in early trade to recover losses sparked by the outbreak of war with Iran. Stocks on Wall Street are also set to resume a rally as investor sentiment recovers. Iraq has clinched a deal with Turkey to resume exports through the port of Ceyhan, instead of using the dangerous Strait of Hormuz. This is leading to hopes that a severe, prolonged oil shock will not materialise, as more crude supplies are able to filter out of the region through other routes.

Whenever there's a surge in oil prices, the airlines end up passing that to the consumers immediately. It doesn't take a long time. Jet fuel prices account for about a third of airlines' operating costs, so they cannot afford to wait to upcharge their customers.

British Airways has cancelled all flights to Dubai until June, due to the "continued uncertainty" amid Iranian missile and drone attacks creating "airspace instability" in the Gulf region. Travel to Bahrain, Tel Aviv, and Amman is suspended until 31 May, while flights to Doha are on hold until the end of April. Additionally, services to Abu Dhabi will not resume until October.