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Delta Air Lines chief executive Ed Bastian told investors that customers should expect higher airfares as oil prices climb in response to the ongoing US‑Israel conflict with Iran. The carrier has already absorbed an additional $330 million in fuel costs and anticipates a further $2 billion increase in fuel expenses for the current quarter. Despite the cost pressure, Delta forecasts a 10% rise in revenue, citing robust passenger demand that it describes as a "healthy" travel environment. Bastian noted that the surge in demand is especially strong among affluent travelers who continue to purchase premium‑class seats. Other U.S. airlines have begun raising baggage fees, attributing the move to volatile fuel markets. Bastian suggested that such fee hikes could become a permanent feature of airline pricing, adding that "at this level of fuel pricing, it’s hard to call anything temporary." Oil markets showed a brief reprieve after Iran announced the reopening of the Strait of Hormuz under a two‑week cease‑fire agreement with the United States. Brent crude fell from roughly $110 per barrel to just under $95 per barrel, yet prices remain about $20 per barrel above pre‑conflict levels. U.S. carriers have felt the ripple effects of the conflict. Since the start of the year, American Airlines shares have slipped about 25% and United Airlines about 13%. United’s CEO, Scott Kirby, warned that fares could climb as much as 20% if fuel costs stay elevated, even as airlines strive to keep demand strong. Delta’s stock, which surged 17% last year, has been flat so far in 2026, reflecting both consumer resilience and the headwinds from the conflict. The shares did gain 6% in early trading on Wednesday. To mitigate fuel consumption, Delta plans to trim capacity on lower‑load midweek and overnight routes, mirroring a similar capacity‑reduction announcement from United earlier in the month. Bastian also highlighted that Delta has benefited from a "K‑shaped" economic recovery, where wealthier consumers continue to spend on travel while lower‑income households curb discretionary spending. "Our customers at the top of the K are still investing in travel," he told CNBC, emphasizing that premium travel remains a priority for this segment.

The recent US-Iran ceasefire agreement has not led to a significant change in the situation for ships trying to pass through the Strait of Hormuz. According to shipping analysts, there will be no 'mass exodus' of ships through the strait, despite provisions for a temporary reopening of the crucial maritime channel.The ceasefire agreement 'doesn't change the situation in the sense that Iran is still in control,' said Richard Meade, the editor-in-chief at maritime data provider Lloyd's List Intelligence. 'It still requires ships to essentially seek permission, and that's the key. That means that nothing has changed – no permission, no transit.'An estimated 2,000 ships and 20,000 seafarers have been trapped in the Persian Gulf since the outbreak of war at the end of February, according to the UN, unable to pass through the strait to continue their journeys. The trapped vessels include oil and gas tankers, bulk carriers, and cargo ships as well as six tourist cruise liners.Under Iran's 10-point ceasefire plan, the country's foreign minister said safe passage through the strait would be allowed under Iranian military management. However, analysts believe that Iran will continue to control the flow of traffic, and few expect traffic to return to normal daily averages during the two-week ceasefire.The head of the UN shipping agency, the International Maritime Organization (IMO), welcomed the ceasefire and called for a safe evacuation of seafarers from the Gulf. Arsenio Dominguez, the secretary-general of the IMO, said: 'I am already working with the relevant parties to implement an appropriate mechanism to ensure the safe transit of ships through the strait of Hormuz. The priority now is to ensure an evacuation that guarantees the safety of navigation.'

Israel has reaffirmed that its military operations in Lebanon will persist, defying US President Donald Trump's ceasefire announcement aimed at Iran. The Israeli military has continued to carry out strikes in Lebanon, with civilians in southern Lebanon being told to move north of the Zahrani River.The office of Israeli Prime Minister Benjamin Netanyahu emphasized that Trump's two-week pause in military action against Iran does not include Lebanon. This stance directly contradicts statements made by Iran and Pakistan, which has been mediating in the conflict.Pakistan's Prime Minister Shehbaz Sharif had announced that Iran, the US, and their allies had agreed to an immediate ceasefire everywhere, including Lebanon. However, Israel maintains that its conflict with Lebanon, particularly with Hezbollah, is separate.On Wednesday morning, an Israeli military spokesperson confirmed that operations against Hezbollah were ongoing. The military also issued a warning in Arabic to people in Tyre to move away from a building, a common precursor to an airstrike in a populated area.The conflict in Lebanon has resulted in over 1,500 deaths, many of them civilians, and has displaced more than 1.1 million people, with many living on the streets. The situation remains volatile as Hezbollah is expected to issue a formal statement outlining its position on the ceasefire and Netanyahu's assertion that Lebanon is not included in the agreement.

British Prime Minister Keir Starmer embarked on a visit to the Gulf on Wednesday, following a two-week ceasefire agreement between the US and Iran. This development brings a moment of relief to the region and the world, as stated by Starmer.The ceasefire, agreed on Tuesday evening, effectively cancels a self-imposed deadline by US President Donald Trump for Iran to surrender or face widespread destruction. Starmer emphasized the need for the international community to support and sustain this ceasefire, with the goal of turning it into a lasting agreement.During his visit, Starmer will discuss diplomatic efforts to uphold the ceasefire and protect the UK and global economy, which has been impacted by the conflict. The British government aims to reopen the Strait of Hormuz, a crucial oil and gas shipping route that has been closed since US-Israel attacks began.The visit comes amid mounting pressure on Starmer to limit US access to British airbases, following Trump's warning that a 'whole civilization will die' if Tehran did not comply with his demands. Trump's comments were criticized by military observers and retired officers as 'likely war crimes'.British Foreign Secretary Yvette Cooper has been in talks with US Secretary of State Marco Rubio, urging a swift end to the conflict and giving the UK's backing to negotiations. Cooper and Rubio also discussed international efforts to open the Strait of Hormuz, including a UK-led meeting that brought together over 40 countries to pursue reopening.

The United States and Iran have agreed to a two-week conditional ceasefire, mediated by Pakistan, which includes the temporary reopening of the Strait of Hormuz. This development comes after a last-minute diplomatic intervention led by Pakistan's Prime Minister, Shehbaz Sharif, and a threatened US military response.US President Donald Trump had issued an ultimatum for Iran to surrender or face widespread destruction, but less than two hours before the self-imposed 8pm Eastern time deadline, he announced the ceasefire agreement. The agreement is conditional on Iran's complete, immediate, and safe opening of the Strait of Hormuz.The ceasefire process was clouded in uncertainty after Iran released two different versions of the 10-point plan intended to be the basis for negotiations. Oil prices dived, stocks surged, and the dollar was knocked back on Wednesday as a two-week Middle East ceasefire sparked a relief rally, fueled by hopes that oil and gas flows through the Strait of Hormuz could resume.Despite the provisional ceasefire, attacks continued across the region in the hours after Trump's announcement. The sudden about-face will allow Trump to step back as the US war in Iran has dragged on for five weeks with little sign that Tehran is ready to surrender or release its hold on the strait, a conduit for a fifth of the global energy supply.The agreement was welcomed by various countries, including Germany, Japan, and South Korea, who expressed hopes for a lasting ceasefire and peaceful resolution. However, some countries, such as Iraq and Australia, called for caution and noted that significant work remains to be done to secure a lasting ceasefire.

Opening new oil and gas fields in the North Sea would send a shock wave around the world, senior climate diplomats warned, saying the move would imperil international climate targets, erode the United Kingdom’s reputation as a climate leader and embolden developing countries to exploit their own fossil‑fuel reserves.The UK government faces intense lobbying from the oil industry, Conservative MPs, Nigel Farage’s Reform UK party, certain trade unions and factions within the Treasury. Yet research shows that new drilling would do little to lower energy prices and would have almost no impact on gas imports.Two of the remaining large North Sea prospects – the Rosebank and Jackdaw fields – sit in a basin that is over 90% depleted and increasingly costly to develop. Even if fully exploited, they would displace only about 1% and 2% of the UK’s gas imports respectively, according to recent analysis.Senior figures in international climate diplomacy described the prospect of new drilling as dangerous for global emissions‑reduction efforts and a step back from the phase‑out of fossil fuels.Lord Nicolas Stern, professor at the London School of Economics, warned that “new drilling and a slowdown in climate action would be bad for growth and for energy security in the UK, and a damaging signal for the world.” He added that the UK’s pioneering climate legislation and its role as the first G7 nation to commit to net‑zero by 2050 give its actions “extra weight” on the global stage.An anonymous senior African negotiator reacted angrily to the proposal, stating that Africa would “reject any proposal for the UK to expand oil drilling” because it is “fundamentally inconsistent with both the letter and spirit of the Paris Agreement” and would “weaken trust with climate‑vulnerable nations”.Christiana Figueres, former UN climate chief and co‑founder of the Global Optimism think‑tank, argued that true energy independence lies in “scaling clean, domestic energy, not in extending the life of declining industries”. She cautioned that reverting to old‑fashioned oil expansion would lock in infrastructure at odds with the direction of the global energy system.The UK has been a vocal supporter of an upcoming conference in Colombia on the “transition away from fossil fuels”, a pledge made three years ago at COP28 that remains largely unfulfilled. However, the Guardian learned that Ed Miliband, the UK secretary of state for energy security and net‑zero, will not attend; the government’s climate envoy, Rachel Kyte, will travel in his place.Campaigners had urged Miliband’s presence, citing his pivotal role in securing a last‑minute deal at COP30 in Brazil last November.Experts caution that licensing new fields before the Colombian summit could undermine progress in persuading developing nations to forgo fossil‑fuel‑based economies and adopt cleaner energy pathways.Mohamed Adow, director of the Power Shift Africa think‑tank, warned that a UK approval would “send a shock wave around the world that short‑term interests are being prioritised over long‑term responsibility”. He stressed that many African countries are being asked to leapfrog to clean energy with limited financial support, and that wealthy nations continuing to invest in fossil fuels “undermine this message and diminish their credibility”.Several developing‑country officials echoed this concern, asking, “Why shouldn’t we tap into our own fossil‑fuel resources if the UK is doing so?” They argued that leadership on climate must be consistent with actions.An ally of Miliband praised the UK’s stance, calling “no new exploration licences” a “landmark global leadership position” that shows a major oil‑producing country can align policy with climate science to avoid a 3‑4°C warming scenario.A government spokesperson reaffirmed the administration’s commitment, stating that the UK has placed “clean energy and climate at the heart of its agenda”, and that it will continue to “stop issuing licences to explore new fields, in line with the science and in securing a just transition in the North Sea”.

Prime Minister Anthony Albanese has welcomed a two-week ceasefire deal between the US and Iran, describing the news as 'very positive' and expressing hope it would lead to a permanent end to the conflict that has driven up global fuel prices. The ceasefire agreement was announced just before Trump's self-imposed deadline for Iran to surrender or face widespread destruction, including the bombing of bridges and power plants. Trump had warned that 'a whole civilization will die tonight, never to be brought back again.' In an interview with Sky News, Albanese criticized Trump's threat to destroy civilian infrastructure, calling it an 'extraordinary statement to make'. He emphasized that the conduct of any conflict must be within international law, which protects civilians. The Nationals leader, Matt Canavan, had urged Albanese to make clear to the US that Australia wouldn’t support Trump’s threat of widespread bombings. Albanese has avoided criticizing Trump's inflammatory language in the past but took a firmer stance this time. The two-week ceasefire, facilitated by Pakistan, allows for safe passage through the strategic Strait of Hormuz, a crucial shipping lane that Iran had effectively closed in retaliation for US and Israel strikes. In a joint statement, Albanese and Foreign Affairs Minister Penny Wong welcomed the ceasefire and called for the agreement to be upheld and the conflict resolved. They highlighted that Iran's closure of the Strait of Hormuz has caused unprecedented energy supply shocks and impacted oil and fuel prices. Albanese's comments mark a rare instance of criticism from a world leader against Trump's aggressive rhetoric. The development underscores the significant global economic implications of the conflict and the efforts to de-escalate tensions.

The United States and China have settled into a stable economic situation, with the US able to access Chinese rare earth minerals and maintain substantial tariffs on Chinese goods. US Trade Representative Jamieson Greer stated that the goal of the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping is to maintain this stability.Greer emphasized that the US is not seeking massive confrontation with China, but rather a stable relationship that allows for continued access to critical minerals. The two countries have been discussing issues related to rare earths, including minerals that pass through third countries before reaching the US.The Trump-Xi summit, postponed from March to mid-May due to the US-Israel war on Iran, will also address the formation of a board of trade mechanism to determine sustainable trade between the two countries. Additionally, there have been discussions about a possible board of investment to address discrete issues related to investments.The US is also working on plurilateral agreements to boost alternative supplies of critical minerals, but these need price floor mechanisms to protect production from potential future predatory price cuts by China. Greer noted that the US and China are working to resolve the rare earths issue at the ministerial and staff levels, hoping to avoid bringing it up at the leaders' meeting.

Anthropic revealed on Monday that it has signed an expanded compute agreement with Google and Broadcom to meet soaring demand for its Claude models. The partnership will bring additional TPU power and 3.5 GW of compute online by 2027, reinforcing the company’s $50 billion pledge to U.S. AI infrastructure. Anthropic Secures Expanded TPU and Compute Capacity from Google and Broadcom The new contract builds on the October 2025 deal that already granted Anthropic more than a gigawatt of Google Cloud TPU capacity. Under the latest terms, Anthropic will: Leverage additional Google Cloud TPUs for Claude model training and inference. Integrate Broadcom‑manufactured AI chips to deliver a total of 3.5 GW of compute. Deploy the majority of the hardware within the United States, aligning with its domestic‑focused strategy. The compute will become operational in 2027, though Anthropic did not disclose exact capacity figures beyond the gigawatt estimate. Scale of the New Compute Commitment: Gigawatts, Funding, and Revenue Growth Financial disclosures highlight the magnitude of the expansion: 3.5 GW of additional compute, as shown in Broadcom’s SEC filing. A cumulative $50 billion investment in U.S. compute infrastructure. Recent $30 billion Series G funding round, valuing Anthropic at $380 billion. Run‑rate revenue now at $30 billion, up from $9 billion at the end of 2025. Over 1,000 enterprise customers each spending more than $1 million annually. Strategic Implications for the U.S. AI Landscape and Enterprise Adoption The expanded compute footprint strengthens Anthropic’s position in a market where U.S. policy and supply‑chain concerns are increasingly influential. Key takeaways include: Reduced exposure to foreign hardware risk, addressing the Defense Department’s earlier labeling of Anthropic as a supply‑chain concern. Enhanced ability to serve large‑scale enterprise workloads, reinforcing Claude’s appeal to high‑spending corporate clients. Potential competitive pressure on rivals such as OpenAI and Microsoft, who are also racing to secure domestic compute capacity. Outlook: How Anthropic’s Compute Expansion Shapes Future AI Competition Analysts expect the new compute resources to enable Anthropic to: Accelerate model iteration, narrowing the performance gap with next‑generation rivals. Offer more customized solutions to enterprise customers, driving higher average contract values. Leverage its U.S.-centric infrastructure to win government contracts and avoid regulatory headwinds. If demand continues its current trajectory, Anthropic could see its revenue run‑rate exceed $50 billion by 2029, positioning it as a dominant player in the commercial AI space.