All articles tagged with #energy prices
Britain eased some sanctions on Russian oil as fuel prices rose due to the Iran conflict, while enforcement continues on illicit shipments (including a suspected Russian tanker seized by France).
UK inflation slowed to 2.8% in April thanks to lower gas and electricity bills and government energy-relief measures, but analysts say it will likely rise toward about 4% by the end of the year as the Iran war keeps energy prices elevated. Petrol and diesel costs climbed in April, with prices around 156.8p and 190p per litre respectively, and fuel-price pressures have persisted into May. ONS data show producer input costs still rising and food inflation easing only modestly; the overall picture remains vulnerable to global energy trends. The government plans additional cost‑of‑living support, while the Bank of England is seen delaying rate hikes until clearer domestic inflation signals emerge.
Despite recent gains under President Trump, the piece argues that record-high CAPE valuations and an energy disruption tied to Iran heighten the risk of a meaningful stock-market pullback during his presidency.
U.S. inflation remains stubborn, with the April Producer Price Index for final demand up 1.4% and 6% higher over the past year (core up 4.4%), as energy and transportation costs feed broader price pressures beyond tariffs tied to the Iran war. The data complicate hopes for Fed rate cuts this year, with some officials signaling possible tightening; markets price a meaningful chance of higher rates by year-end (about 34%).
Lowering tariffs on imported beef may ease meat prices in the short term, but inflation stems from multiple structural factors—U.S. cattle herds at a 75-year low, elevated energy costs, supply-chain disruptions, and geopolitical tensions—so tariff cuts address only a symptom, not the disease.
Trump proposes a temporary suspension of the federal gas tax to ease higher pump prices driven by the Iran war; it would require Congressional approval and could reduce Highway Trust Fund revenue by about $17 billion over five months, with uncertain relief for consumers and mixed bipartisan reactions as lawmakers weigh feasibility and budget impacts.
President Trump told CBS News he plans to suspend the federal gas tax for a period of time, a move that would require congressional action and would cost about $0.5 billion per week; Democrats have introduced bills to pause or lower the tax as gas prices rise amid Iran-related supply concerns, with revenue from the tax funding the Highway Trust Fund for roads and transit.
Energy Secretary Chris Wright said the Trump administration is open to suspending the 18.3-cent federal gasoline tax to ease elevated pump prices tied to Middle East tensions; any move would require Congress and involve tradeoffs, with estimates suggesting a suspension could shave 10–16 cents per gallon, while other relief measures have limited impact on a supply shock from Iran-related disruption.
A University of Michigan survey shows consumer sentiment fell to 48.2 in early May, a fresh low driven by surging gas prices amid Middle East tensions and ongoing inflation fears, with the expectations index nudging higher and the near-term inflation outlook easing slightly even as unemployment remains solid and energy costs stay elevated.
ECB official Sabine Schnabel warned that signs of supply-chain disruption are re-emerging in Europe, with more manufacturers planning price hikes and households adjusting inflation expectations; she suggested that a broader energy-price shock could force tighter monetary policy.
New research finds a spike in gasoline prices hits low-income Americans hardest, widening a K‑shaped economic divide as poorer households cut back on driving and other spending while higher‑income households weather the pain, underscoring energy inflation's regressive toll on families and the broader policy stakes.
The World Bank warns that the Iran conflict is driving a global fertiliser shortage by lifting natural‑gas prices, increasing fertiliser costs and squeezing farmers’ margins, which could curb next year’s harvests even as Europe remains comparatively insulated for the current season. FAO notes shipping disruptions through the Strait of Hormuz are pressuring Asia and the Global South, risking higher food prices and inflation unless energy markets stabilise and fertiliser supply chains recover. Analysts say persistent high input costs could require tighter monetary policy in some economies, and experts call for urgent European action and a shift toward strategic autonomy over fertiliser inputs to stabilise the global food system.
ECB keeps the deposit facility rate at 2% as eurozone inflation climbs to 3% in April, driven by energy costs amid the Middle East conflict; policymakers say upside inflation risks and downside growth risks have intensified and that policy will remain data‑driven, with a June rate move possible depending on upcoming data.
A key US inflation gauge rose in March, driven by higher gas prices tied to tensions with Iran, which squeezed household budgets and kept inflation elevated in the near term.
March 2026 core PCE rose 0.3% month-over-month (3.2% year-over-year), with total inflation up 0.7% and 3.5% year-over-year when including energy and food. GDP grew 2.0% annualized in Q1 2026, while unemployment claims fell to 189,000. The Fed kept rates unchanged amid persistent inflation, with four dissents over policy phrasing, as energy costs and goods price pressures remained a key driver of inflation.