Middle East conflict

The Asian Development Bank (ADB) maintained Pakistan's economic growth forecast at 3.7% for the current fiscal year but lowered its 2026 growth projection for developing Asia and the Pacific to 4.9% due to prolonged energy market disruptions from the Middle East conflict. The ADB also raised its 2026 inflation forecast for the region to 4.3% and highlighted risks from geopolitical tensions and global financial conditions.

The IMF has reduced its global growth forecast to 3.0%, citing risks from a potential renewed Middle East conflict. This could lead to increased commodity price volatility, disrupted supply chains, higher prices, and worsened financial conditions.

Tehran has targeted Bahrain and Kuwait following US strikes, escalating regional tensions. The conflict raises risks of an interim agreement to halt fighting breaking down, potentially sparking a wider Middle East conflict.

U.S. airlines spent $6.66 billion on jet fuel in May, an 84% increase from May 2025, driven by higher fuel prices despite a 0.6% decline in consumption. Rising costs have led airlines to raise fares, cut flights, and face vulnerability due to energy price volatility linked to the Middle East conflict and the Strait of Hormuz disruptions.

U.S. airlines spent $6.66 billion on jet fuel in May 2026, an 84% increase from May 2025, driven by higher fuel prices rather than increased consumption. Fuel prices averaged $4.09 per gallon, 85% higher than the previous year, while consumption slightly declined. The rise in costs is linked to disruptions in the Strait of Hormuz due to Middle East conflicts, though recent declines in fuel prices offer some relief.

U.S. airlines spent $6.66 billion on jet fuel in May, an 84% increase from May 2025, driven by higher prices rather than increased consumption. Fuel costs have risen due to disruptions in the Strait of Hormuz from the Middle East conflict, though recent declines in prices offer some relief to airlines.

Peter Beinart accused Scott Wiener of avoiding a discussion about the Trans March and his views on Israel. Beinart is described as a journalist and commentator on the Middle East conflict.

China's markets are diverging from global trends, offering steady returns amid geopolitical and tech-driven volatility. Investors are shifting toward Chinese assets as a diversification tool, driven by a strong bond market, yuan appreciation, and reduced reliance on U.S. rate cycles or AI-driven growth.

Nato leaders will address challenges including maintaining US commitment under Trump, burden-shifting defense responsibilities to Europe, and increasing defense spending. Tensions arise from Trump's criticism of the alliance and demands for European burden-sharing.

Consumer inflation is rising again in 2026 due to an energy shock from conflict in the Middle East. Eurozone inflation reached 3.2%, the highest since 2023, exceeding the European Central Bank's 2% target.

Representatives from ABC and SBS will be called as witnesses to the royal commission into antisemitism and social cohesion after complaints about their Middle East coverage. The inquiry, established following the Bondi terror attack, has received 'highly critical' submissions regarding the broadcasters' reporting.

The British Medical Association (BMA) rejected the use of the IHRA definition of antisemitism in the NHS, allowing doctors to criticize Israel's actions in Palestine without fear of disciplinary action. The BMA cited concerns about the definition suppressing legitimate political speech and the right to challenge human rights violations, particularly in the context of the Middle East conflict's impact on healthcare workers and facilities.

Minneapolis Fed's Neel Kashkari is considering a rate hike this year due to broad inflationary pressures, including oil price disruptions from the Middle East conflict and AI data center construction.

Heathrow Airport expects a 1.1% decline in passengers to 83.6 million and reduced profits this year due to the impact of the Iran war on air travel. The airport is also discussing the cost of its third runway construction plan with regulators.

The IAEA chief emphasized 'very strong' nuclear verification in Iran after the Middle East conflict to prevent nuclear weapon development. The United States and Iran are negotiating a broader agreement to end the war, with Iran's nuclear program as a key issue.

Oil prices fell 2% as markets shifted focus from renewed Iran tensions to the broader supply outlook. The decline continued on Friday amid attention to potential breakthroughs in the Middle East conflict and regional news.

Pakistan is acting as a peacemaker in the Middle East conflict to prevent spillover across its borders. Its efforts are driven by the need to avoid regional instability affecting its security.

Donald Trump instructed the US Department of Justice to investigate oil companies for alleged price gouging amid high gas prices linked to conflict in the Middle East. He accused the companies of not reducing pump prices despite lower oil costs and demanded faster price reductions.

Despite the Middle East conflict, over 300,000 Pakistanis secured jobs in Gulf countries like Saudi Arabia and the UAE from January to May 2026. Saudi Arabia received the most workers (143,586), followed by the UAE (50,000), with continued emigration despite regional instability and maritime disruptions.

The conflict in the Middle East has altered strategic relations between Iran and Gulf states, leading to a lack of trust despite mutual dependencies.

U.S. peace talks with Iran to end the Middle East conflict were postponed, with Vice President JD Vance canceling his planned trip to Switzerland. The White House acknowledged the negotiations' logistics are 'never simple or predictable,' raising doubts about a lasting truce.

A U.S.-Iran accord faces early challenges after Swiss talks did not proceed as planned. Analysts suggest a lasting resolution to the Middle East conflict will require significant time.

US and Iran peace talks in Geneva were called off, with Vice President JD Vance dropping plans to travel to the negotiations. Switzerland confirmed the talks would not proceed on Friday, citing complex logistics.

Tesco's UK sales growth halved to 1.8% due to Middle East conflict uncertainty, though the retailer outperformed City analysts' expectations and reported strong online sales. The growth rate was lower than the previous quarter's 4.2% and below the 2.3% analysts had predicted.

The Middle East conflict has disrupted global energy supply chains, prompting analysts to urge China to enhance naval escorts, develop alternative shipping routes, and strengthen emergency responses to secure energy shipments. Lu Ruquan of the China National Petroleum Corporation Economics and Technology Research Institute emphasized the need for improved safety measures at critical nodes.

US President Donald Trump described his relationship with Israeli Prime Minister Benjamin Netanyahu as an 'amazing partnership' but acknowledged a 'little dispute' over Lebanon. The statement highlights their strong collaboration despite differences regarding the Middle East conflict.

Brazil will end fuel subsidies for diesel and gasoline if oil prices stabilize near $80 a barrel, according to a senior Treasury official. The decision is linked to a U.S.-Iran deal aimed at resolving the Middle East conflict and reopening shipping lanes.

UK inflation remained at 2.8% last month, defying expectations of a rise to 3%, as slower food price increases offset higher transport and fuel costs. The Office for National Statistics reported the figure despite concerns about the Middle East conflict's impact on energy prices.

Talks over the Ukraine war are set to regain prominence after being overshadowed by the Middle East conflict. US President Donald Trump plans to refocus on the Moscow-Kyiv standoff following a truce with Iran, while the EU initiated Ukraine's accession talks. Russia's economic struggles and stalled military progress contrast with Ukraine's shortages, though European officials worry US involvement may strain transatlantic relations.

Pakistan's 2026-27 budget faces risks including a $40-per-barrel oil price increase adding 0.8pc to fiscal deficit, natural disasters threatening 1.5pc fiscal impact, tax exemptions causing 1.3pc budget losses, and state-owned entities draining 0.4pc. The finance ministry identified seven key fiscal vulnerabilities linked to global oil prices, GDP growth, revenue shortfalls, and climate impacts.

Pakistani Prime Minister Shehbaz Sharif announced that the United States and Iran have agreed on a peace deal framework to end the Middle East conflict, with a final text reached. Pakistan is preparing for an electronic signing within 24 hours, followed by technical-level talks next week.

The article discusses fears among first-time home buyers about potential negative equity due to falling house prices in Sydney and Melbourne. Economists note that price declines are concentrated in the top-end markets of these cities, suggesting first-time buyers with small deposits are less likely to be affected. Factors contributing to the housing market downturn include rising inflation, interest rates, and concerns over the economic impact of the Middle East conflict.

Prime Minister Shehbaz Sharif emphasized the importance of strong security for national progress during a federal cabinet meeting ahead of the budget presentation. He acknowledged past tax increases due to economic stabilization efforts and noted inflation had declined to single digits, though it recently rose due to the Middle East conflict. The premier also expressed gratitude to Pakistan's citizens for enduring economic challenges.

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.

Pakistan's national poverty rate increased by 7% between 2018-19 and 2024-25, adding 27 million people to the impoverished population, now totaling 70 million. Rural poverty rose from 28.2% to 36.2%, while urban poverty increased from 11% to 17.4%. Provincial poverty rates varied, with Balochistan recording the highest at 47% in 2024-25. Factors like inflation, currency depreciation, IMF policies, floods, and the Middle East conflict contributed to the surge. Inequality, measured by the Gini coefficient, rose from 28.4 to 32.7 nationally.

The article discusses how the Middle East conflict has increased the cost of everyday goods, making it harder for consumers to manage financially. Experts note that while Trump might support inflation, consumers are negatively affected.

Kazakhstan is promoting Almaty to Hong Kong travelers through rocket launch events and participation in the 40th International Travel Expo. Six Kazakhstan-based operators showcased the city at the Hong Kong Convention and Exhibition Centre, coinciding with new direct flights to the region despite Middle East conflict impacts on global tourism.

Brazil airlines are cutting flights due to doubled jet-fuel prices caused by the Middle East conflict. Azul, a leading carrier, has reduced 5% of its capacity, and the sector warns Brazil could lose 10 million passengers this year.

The Philippines declared a national energy emergency on March 24, 2026, in response to the Middle East conflict and disruption of the Strait of Hormuz. This marked the first global instance of such a declaration linked to these events, highlighting shared regional vulnerabilities in energy dependence.

AirAsia X postponed its planned flight route via Bahrain until August or September due to Middle East conflict, affecting passengers who can request refunds or rescheduling. The route was initially set to launch in June, connecting Kuala Lumpur to Bahrain and onward to London's Gatwick airport.