Energy prices

Gold prices declined as U.S. strikes against Iran pushed energy prices higher and heightened inflation concerns. The attacks intensified worries about economic inflation risks.

The IMF reduced its 2026 global growth forecast to 3% due to high energy prices from the Iran conflict, which is slowing economic growth and raising inflation. The fund noted AI demand helped avoid a sharper downturn and expects growth to rebound in 2027, while the US Federal Reserve remains divided over interest rate adjustments amid uncertainty about prolonged energy price impacts.

Heat waves increase electricity demand for air conditioning, straining power grids and raising blackout risks. France and the US are experiencing heightened risks, with energy prices rising during peak usage periods.

A Labour donor urged Andy Burnham to reduce high energy prices. The donor is calling for action to address the issue of sky-high energy costs.

Asia is reconsidering 'just in time' supply chains after three major crises: factory closures during the pandemic, Russia's invasion of Ukraine disrupting Black Sea grain exports and energy prices, and the US-Israel war on Iran exacerbating supply chain vulnerabilities. Economists suggest these disruptions have rendered the system unsustainable.

Australia forecasts an A$38 billion (US$26 billion) increase in export income due to rising commodity and energy prices linked to the war in Iran. The Department of Industry, Science and Resources projects resources exports to reach A$416 billion by June 2027, assuming trade disruptions persist until June 2026.

Kalshi traders predict inflation peaked in May due to June energy price declines, with less than 30% odds of exceeding 4.2% by 2026.

The article argues that devaluing the rupee to boost exports is ineffective due to high import dependency in production. Research shows exports respond weakly to exchange rate changes, and 37% of export value relies on imported inputs. Structural issues like energy costs, productivity, and trade facilitation are highlighted as critical factors, contrasting with examples of Vietnam and South Korea's success through diversification and reforms.

Kenya's inflation slowed in June due to easing food and energy prices. A food truck in downtown Nairobi was photographed by Patrick Meinhardt of Bloomberg.

Hong Kong's two major electricity suppliers will provide rebates to eligible households from August to October, offering an 8 HK cents per kilowatt-hour subsidy for three months to residential customers using 450 kWh or less, aiming to reduce bills amid rising energy prices caused by the US-Israel war on Iran.

The government secured parliamentary approval for the FY27 budget, which aligns with IMF requirements but lacks meaningful structural reforms. Finance Minister Muhammad Aurangzeb emphasized growth potential under stable energy prices, though the budget perpetuates reliance on consumption, remittances, and real estate, with minimal progress on tax system improvements or export-led growth strategies.

US inflation reached a three-year high in May, driven by rising energy prices linked to the Middle East war. Core inflation also increased, while consumer spending remained resilient due to tax refunds and stock price gains. Persistent gas prices and supply chain disruptions from the conflict may pressure the Federal Reserve to raise interest rates.

The Bank of England's Monetary Policy Committee (MPC) voted 7–2 to keep the interest rate at 3.75%, with two members advocating for a 0.25 percentage point increase. The decision comes amid an inflation rate of 2.8% and ongoing volatility in energy prices.

The Iran deal has provided minimal relief to central banks concerned about inflation. Top policymakers remain cautious about the global economy despite falling energy prices.

Hannah Pingree and Bobby Charles will compete in Maine's gubernatorial general election after advancing through ranked choice voting. Independent Rick Bennett also qualified for the ballot. Charles, a MAGA-aligned candidate, aims to challenge Democratic Governor Janet Mills' policies, while Pingree, a Mills administration official, emphasizes continuity with her tenure.

The Bank of England maintained its main interest rate at 3.7% as inflation eased to 2.8% in May, below initial expectations. The decision followed a U.S.-Iran deal to end their war, which reduced energy price spikes. Two Monetary Policy Committee members advocated a rate hike due to lingering inflationary pressures.

South Africa's inflation rate reached a nearly two-year high in May, primarily due to increased energy prices associated with the US-Israeli war with Iran.

Rising energy costs accounted for over 60% of May’s 0.5% increase in U.S. consumer prices, with gasoline prices surging 7% monthly and 40.5% annually. Energy prices rose 23.5% over the past year, outpacing slower food price increases (3.1% annually), while disruptions at the Strait of Hormuz raised concerns about fertilizer supply chains.

A potential US-Iran agreement could lead to the Strait of Hormuz reopening, potentially lowering energy, fertilizer, and food prices in Africa. Oil exporters like Nigeria and Angola may face reduced revenue as a result.

Britain's industrial sector is at risk of collapse due to high energy prices, with manufacturers warning thousands of companies could face bankruptcy. Make UK reports energy costs are twice Europe's average and four times higher than in the US, urging Treasury action.

U.S. President Donald Trump may begin exiting an unpopular war with Iran through a peace deal framework agreement, which could lead to easing energy prices that have risen during the crisis. The agreement is seen as a potential path to de-escalate tensions and stabilize markets.

U.S. and Iranian officials announced a peace agreement to end their war, halt the U.S. blockade of Iran, and reopen the Strait of Hormuz, potentially lowering energy prices. E4 leaders (Britain, France, Germany, Italy) and British Prime Minister Keir Starmer emphasized preventing Iran from acquiring a nuclear weapon and expressed willingness to collaborate with the U.S., Iran, and IAEA.

The UK economy contracted by 0.1% in April as the Iran war led to higher energy prices, with the closure of the Strait of Hormuz disrupting global trade. This followed a 3% rise in GDP during March.

Ireland is advocating for rapid electrification within the EU to support the growing demand from data centers. The article also notes a revolt against deficit spending aimed at controlling energy prices.

US President Donald Trump dismissed concerns about consumer inflation reaching a three-year high in May, attributing it to energy prices linked to his Iran policy. His statement 'I love the inflation' has been criticized by Democrats as part of their campaign for the November midterm elections.

The Producer Price Index (PPI) reached 6.5%, the highest level since late 2022. Energy prices, particularly gasoline which surged 23.4%, were the primary drivers of the increase, along with record monthly growth for final demand goods.

US inflation accelerated in May to the fastest pace in over three years due to the Iran war increasing energy prices, which outpaced Americans' pay gains. The article suggests markets may be overly relaxed about this inflationary trend.

OpenAI claims China-based actors are stoking opposition to AI data centres by using ChatGPT accounts to exploit and amplify public concerns about energy prices. The company alleges these actions aim to capitalize on existing worries related to energy costs.

Spiking energy prices drove inflation to a 3-year high of 4.2% annually in May, with energy costs accounting for over 60% of the increase. Core inflation, excluding food and energy, rose 2.9%.

Betsy Duke analyzed recent inflation data, noting that headline and core inflation figures matched expectations but remain a concern for consumers. She highlighted that the Federal Reserve is unlikely to act immediately, as rising energy prices outpace wage growth, straining households.

President Donald Trump praised the inflation report, stating he 'loves the inflation' and attributing rising costs to energy prices, which accounted for over 60% of the monthly increase. The U.S. inflation rate reached 4.2% in May, driven by energy costs, while the Federal Reserve faces pressure to address inflation above its 2% target amid ongoing conflicts in the region.

US inflation reached 4.2% in May, the highest in three years, driven by the Iran war increasing energy prices. Core inflation rose to 2.9%. The Federal Reserve faces pressure to raise interest rates, but markets expect no change in the upcoming meeting chaired by Kevin Warsh, despite President Donald Trump's demand for rate cuts.

Inflation rose to 4.2% in May, marking the highest level in three years. Energy prices were the primary driver of the monthly increase, while core inflation remained below expectations.

US inflation rose to 4.2% in May, marking the third consecutive monthly increase since the start of the Iran war. The closure of the Strait of Hormuz has impacted energy prices, contributing to a three-year high in inflation, with rates previously at 3.3% in March and 3.8% in April.

Global wholesale inflation accelerated due to higher energy costs and trade disruptions from the Iran war. China's factory gate prices rose at the fastest pace since 2022, Japan's producer prices increased sharply, and the U.S. CPI is expected to hit a multi-year high. Central banks, including the Bank of Japan and the Federal Reserve, are now seen likely to raise rates this year amid concerns over prolonged inflation and economic growth.

Europe’s energy veterans urge Jørgensen to address energy prices, grid infrastructure, and system integration. The article highlights calls for action from experienced figures in the energy sector.

Israel and Iran paused strikes after exchanging fire for the first time since a US-mediated ceasefire, with both nations warning of potential retaliation. The incident raised fears of a broader Middle East war, following two months of US-Israel strikes on Iran that have disrupted the global economy and energy markets.

The US military intercepted four Iranian drones near the Strait of Hormuz and struck coastal surveillance radar sites in response to Iranian actions. The attacks threaten a fragile ceasefire and have disrupted energy prices due to the strategic importance of the strait for global oil and gas shipments.

President Trump addressed farmers in Wisconsin at a roundtable, discussing rising fertilizer and energy prices linked to the U.S. war in Iran. He assured them that fertilizer prices would decrease significantly. The event also touched on topics like the Reflecting Pool and fountains.

The Fed's Beige Book reported higher inflation across most districts, driven by the war in the Middle East impacting energy prices, alongside steady employment. The findings are based on the central bank's survey of regional business contacts.