Middle East conflict

Booking Holdings Inc. kept its full-year outlook for gross bookings and revenue due to strong travel demand, despite the Middle East conflict impacting flight prices and capacity.

Options traders are reducing long-term bearish bets on the South African Rand as the cost of hedging against its decline has reached the lowest level this year. Investors expect volatility caused by the Middle East conflict and a surprise interest-rate hold by the central bank to subside soon.

Up to 80 Hong Kong-linked ships and 1,600 seafarers are stuck in or near the Strait of Hormuz due to over five months of on-and-off conflict in the Middle East. The Hong Kong Shipowners Association reported these figures as part of its recommendations for the city’s policy agenda.

Chile's peso borrowing costs could reach annual highs in August due to the ongoing Middle East conflict, which has lasted six months. The country's economy is also struggling to gain momentum.

House prices in Brisbane, Adelaide, and Perth have declined as Australia's median home price drops about $19,000 below its March peak. New Cotality data indicates the market downturn is spreading nationwide, influenced by the Middle East conflict and recent tax changes.

A Saudi ruler has urgently asked Trump to avoid targeting new sites in Iran as the Middle East faces a potential escalation toward full-scale war. The plea highlights growing regional tensions and fears of military conflict.

India’s largest consumer companies are planning to raise prices on products like toothpaste, tires, and paint ahead of the festival season for the second straight quarter. The price hikes are attributed to the prolonged Middle East conflict driving up commodity costs and threatening to sustain high inflation.

The Saudi economy experienced a 4.8% GDP contraction in the second quarter compared to the same period in 2025, attributed to the heavy toll of the Middle East conflict.

The Federal Reserve held interest rates steady for the fifth consecutive time, citing efforts to stabilize prices amid inflation and Middle East tensions. President Trump urged lower rates, while Fed Chair Kevin Warsh emphasized maintaining job growth and reducing inflation.

The Federal Reserve held interest rates steady for the fifth consecutive time amid persistent inflation and Middle East conflict. President Trump expressed support for lower rates, while Fed Chair Kevin Warsh emphasized focus on job market strength and inflation control.

Philippine banks have allocated the highest funds for potential loan losses since at least 2008, anticipating defaults due to the Middle East conflict's impact on an already weak economy.

Standard Chartered reported a 10% rise in first-half profit to US$3.37 billion in 2026, driven by strong wealth management gains despite an impairment charge linked to the Middle East conflict. The bank announced a US$1 billion share buy-back as part of its capital return strategy.

Demand for homes in Dubai has cooled due to the ongoing Middle East conflict, specifically the US-Israel war on Iran, which began in February with strikes in Tehran and expanded into a regional conflict. Analysts note a 13.6% annual decline in citywide sales volumes in the first half of 2026, with a marked weakening in May and June as buyers delay purchases and businesses postpone relocations.

China is increasing funding for green energy deals through its Belt and Road Initiative as the Iran war reduces oil demand. The initiative is leveraging the growing global interest in renewable energy amid the ongoing Middle East conflict.

Iran claims a Ukrainian attack on a vessel in the Caspian Sea killed a sailor. The foreign ministry has urged the EU to intervene to prevent the Middle East conflict from spreading beyond the region.

Americans are adapting to the largest grocery inflation in 50 years by couponing, comparison shopping, and reducing purchases of favorite foods. Grocery prices have risen 33% since 2019, with ground beef prices up 79%, forcing families to switch to cheaper protein sources or rely on food banks. A conflict in the Middle East is exacerbating price pressures, making affordability a key issue in U.S. midterm elections.

Americans are adapting to a 33% rise in grocery prices since 2019 by using coupons, comparing prices, and substituting cheaper alternatives. Factors driving the surge include pandemic supply chain disruptions, natural disasters, tariffs, and conflicts in Ukraine and the Middle East, with affordability becoming a key political issue in midterm elections.

India and South Africa are leading efforts to build or expand emergency fuel stockpiles as developing countries face rationing due to the Middle East conflict. The initiative aims to address fuel shortages caused by the ongoing regional tensions.

India’s Akasa Air and Malaysia’s AirBorneo are expanding despite challenges from the Middle East conflict and rising fuel costs. Analysts suggest smaller Asian airlines are finding growth opportunities as larger carriers face capacity constraints.

South Africa’s central bank maintained its benchmark interest rate, contrary to market expectations of a hike following a surge in June inflation. The decision caused the rand to drop over 2%, becoming the worst-performing currency, while bond yields rose. Governor Lesetja Kganyago noted persistent high inflation and weak growth, and economists like Citibank’s Gina Schoeman predict a potential rate hike in September due to ongoing inflation concerns linked to energy costs from the Middle East conflict.

The US-Israeli war on Iran caused a Diet Coke shortage in India by disrupting aluminum can supplies, leading to a 10% price hike for Coca-Cola's Diet Coke due to ongoing supply chain issues from the Middle East conflict.

Malaysia may host a Formula One race for the first time in nine years, potentially replacing the Bahrain Grand Prix due to the Middle East conflict, according to the Youth and Sports Minister Mohammed Taufiq Johari.

Oil prices surpassed $100 a barrel amid renewed Middle East conflicts, likely increasing costs for gasoline, groceries, and school supplies. Higher fuel expenses and supply chain disruptions are straining consumers, with gasoline prices averaging $4.09 per gallon and food costs rising due to transportation and refrigeration demands.

European Central Bank President Christine Lagarde stated she will remain in her role until at least the end of 2024, dismissing rumors of stepping down for France’s 2027 presidential election. She emphasized she will not leave during economic instability and warned the Middle East conflict could worsen inflation risks.

U.S. Secretary of State Marco Rubio stated the Trump administration is prepared to assist in ending the Ukraine war but acknowledged no immediate resolution is likely. He highlighted stalled U.S.-mediated talks with Russia and Ukraine, emphasized the need for sustained diplomatic efforts, and noted ongoing U.S. military support for Ukraine. The discussion occurred amid broader regional ASEAN meetings focused on conflicts in the Middle East and the South China Sea.

ASEAN foreign ministers will advocate for freedom of navigation in international straits, including the Strait of Hormuz, amid concerns over the US-Iran war and its economic impact on Southeast Asia. The draft communique emphasizes self-restraint in the Middle East conflict and unimpeded passage through strategic waterways.

EasyJet Plc reported a 70% decline in profit during its fiscal third quarter. The UK budget airline attributed the drop to increased jet fuel costs and reduced consumer demand, influenced by the Middle East conflict.

Oil prices surged following an attack by Iran-backed Houthi militants on two Saudi Arabian tankers in the Red Sea, escalating the Middle East conflict and raising concerns about potential supply disruptions.

US State Secretary Marco Rubio stated that the United States is open to engaging with Iran on the Middle East conflict but expressed skepticism about Iran's seriousness. He emphasized that the US will protect its interests and those of its allies if Iran is not serious about negotiations.

UK employers reduced job vacancies to 712,000 in May, nearly half the 2022 level, amid a 'fragile' economic outlook linked to the Middle East conflict. Unemployment remained steady at 4.9%, presenting a challenge for Prime Minister Burnham's goal to improve living standards.

Pakistan and Bangladesh are purchasing some of their most expensive liquefied natural gas shipments in years due to a Middle East conflict disrupting supply, straining government finances and prompting reconsideration of their reliance on LNG.

Inflation fears have resurfaced due to escalating U.S.-Iran tensions in the Middle East, which have contributed to elevated oil prices. Analysts link the ongoing conflict to concerns about economic impacts.

A rally in global equities contributed to a 9.5% annual gain for Australia’s A$4.4 trillion pension fund industry in the past year, despite ongoing concerns about the Middle East conflict and persistent inflation.

US gasoline prices have risen above $4 per gallon due to escalating conflict in the Middle East, which risks worsening a global transportation fuel shortage and increasing inflation.

At least one more US service member has died following a massive Iranian missile attack in the ongoing Middle East conflict, according to US Central Command. The attack is part of the continuing tensions in the region.

Kuwait experienced intense Iranian retaliatory attacks, with a second power plant hit in two days and flights suspended. The attacks mark one of the worst nights since the Middle East conflict began.

Burberry has returned to growth, but ongoing Middle East conflict is negatively impacting European sales.

Today’s 30-year mortgage rates for purchases fell to 6.736%, while refinance rates rose to 6.85%. Rising oil prices due to Middle East conflicts, persistent inflation, and a hawkish Federal Reserve have kept rates elevated, with experts predicting they will remain above 6% for the 30-year term in the near future.

Hong Kong’s short-haul tourist arrivals dropped 15% in June due to higher fuel costs from the Middle East conflict reducing flight capacity and weaker regional currencies lowering travel demand. Overall visitor numbers rose 7% year-on-year to 3.72 million, driven by a 10% increase in mainland Chinese arrivals.

Households are urged to fix their energy tariffs as bills could spike due to a fresh conflict in the Middle East. The warning highlights potential increases in energy costs linked to the new regional tensions.