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Daniel Křetínský, the Czech billionaire who acquired Royal Mail's parent company for £3.6bn last year, has pushed back against criticisms that the service has declined under his ownership. Despite heavy criticism of late deliveries and price rises, Křetínský insisted that service has not deteriorated. In a defensive performance before MPs on the business select committee, Křetínský said he was “deeply sorry” for any letters that arrive late. Since his takeover, Royal Mail has faced trade union disputes over working conditions, raised first-class stamp prices from £1.70 to £1.80, and delivered 16m Christmas letters late. Křetínský disputed a string of complaints, including that service is getting worse and that more lucrative parcels are being prioritized over letters. He argued that the UK's expectations for next-day delivery at relatively low prices are comparatively high compared to other European countries. For instance, he noted that in Italy, first-class letters cost €5.50 (£4.76) and regulators only require delivery targets to be met 80% of the time. With a week to go until Royal Mail’s service targets are reduced by the regulator Ofcom, Křetínský emphasized that the UK’s expectations remain far higher than those in other European countries. From next week, Ofcom will ease pressure on the postal service by lowering Royal Mail’s targets under the so-called “universal service obligation.” It will only require delivery of 90% of first-class mail within one working day (instead of 93%) and 95% of second-class mail within three days (instead of 98.5%). The committee’s chair, Liam Byrne, began the session by stating that Royal Mail is on track to deliver 220m letters late this year out of a total of 5.6bn. Křetínský denied that the service was prioritizing more profitable parcels over letters, attributing any instances of this to crisis moments rather than policy.

The UK's Competition and Markets Authority (CMA) has taken a significant step to address concerns over the rising costs of veterinary services. Following a two-and-a-half-year investigation, the CMA has found that the £6.7bn market lacks strong competition, with large chains dominating the industry. As a result, pet owners have faced huge price rises and been left in the dark about bills.The CMA has ordered vets to cap prescription fees at £21 for the first medicine and £12.50 for any additional drugs. This move is expected to save pet owners hundreds of pounds. Additionally, vets must now inform pet owners that medicines may be cheaper online and provide a written estimate in advance for any treatment expected to cost £500 or more.Public satisfaction with the cost of services was found to be low, with the CMA noting that average prices of vet services had risen sharply, by 63%, between 2016 and 2023. The watchdog also found internal documents from some large veterinary groups that linked price increases to an expectation that pet owners would not react by purchasing less or switching away.The CMA has also proposed a cost comparison website to increase competition and drive down costs. Large groups will be required to make clear that individual vet practices are part of a chain, and pet owners can expect to see changes before Christmas, including standard price lists.The measures have been welcomed by some in the industry, with CVS and Vets for Pets expressing their support for the changes. However, the British Veterinary Association president, Rob Williams, noted that delivering highly skilled veterinary medicine is costly and that prices have risen sharply in recent years due to various factors, including higher costs experienced by all businesses.

UK Chancellor Rachel Reeves has announced that the government will not provide universal support to deal with potential future rises in energy bills. Instead, any government assistance will be targeted towards those who need it most.Reeves criticized the support package offered by the previous government under Liz Truss as unaffordable and irresponsible, stating that it benefited the wealthiest households and led to high levels of national debt.The chancellor emphasized that any future support will be provided within the government's fiscal rules to keep inflation and interest rates low. The government is currently focusing on longer-term measures to reduce energy bills for all households.Reeves also mentioned that she will review the planned fuel duty rise in September, but did not commit to delaying or postponing it. She will hold meetings with supermarkets and banks to discuss how they can support their customers and ensure that the Competition and Markets Authority has the necessary powers to detect and prevent price gouging.The chancellor's announcement comes amid speculation about the government's response to the energy crisis and its impact on households.

The economic fallout of the US and Israel's war with Iran is being felt across the globe, with Gulf economies suffering some of the worst damage. Iran has launched continuous attacks on Gulf states since the onset of the conflict on February 28, arguing that it is targeting military bases used by the US for the war.Gulf nations have rejected Tehran's claims, insisting the attacks on them are unjustified. The Iranian strikes have upended energy production and inflicted major disruptions to tourism and travel, putting the region at risk of some of the most severe economic harm since the 1990-1991 Gulf War.According to Khaled Almezaini, an associate professor of politics and international relations at Zayed University in Dubai, the region is likely losing hundreds of millions of dollars per day in economic activity due to disruptions to aviation, tourism, shipping routes, and energy exports.Middle Eastern oil producers' daily output declined from 21 million barrels to 14 million barrels after a little more than a week of conflict, according to Rystad Energy. Output is expected to drop substantially further if commercial shipping continues to avoid the Strait of Hormuz due to Tehran's threats.Goldman Sachs estimated that Qatar and Kuwait could see their GDPs plunge 14% if the war lasts until the end of April, with the UAE and Saudi Arabia facing contractions of 5% and 3%, respectively. Meanwhile, S&P; Global Ratings has affirmed a 'stable outlook' for Qatar, citing the country's large financial buffers.The war has also spilled over into other critical sectors, particularly tourism and travel, which accounts for about 11% of the GCC's GDP. Airspace closures and restrictions led to 37,000 flight cancellations from February 28 to March 8 alone.In an analysis published last week, the World Travel & Tourism Council estimated that the conflict was costing the region $600m in daily spending by international visitors. The economic fallout could be comparable to historic regional crises if the war drags on.

The ongoing conflict in Iran, now in its 18th day, has sparked concerns about the global economy's stability. Typically, during such periods of uncertainty, investors flock to safe-haven assets like gold, causing its price to rise. However, gold prices have remained broadly steady at around $5,000 an ounce.On Tuesday, spot gold was almost flat at $5,001.36 per ounce at 11:00 GMT, and US gold futures for April delivery rose just 0.1 percent to $5,005.20. This lack of movement is surprising, given that gold prices typically shoot up during economic crises as investors look for safe havens to shelter their cash.Experts suggest several reasons for this unexpected stability. Traders may be anticipating that the US Federal Reserve will halt interest rate cuts and perhaps even raise rates in response to rising inflation, making dollar assets more attractive and gold, which pays no interest, less so. Additionally, gold had already risen significantly at the start of the year, which may be contributing to its current stability.Another factor is the strengthened dollar, which provides an alternative safe-haven choice. Higher oil prices, which have soared above $100 per barrel due to the conflict, may also lead to higher inflation, making the dollar more attractive.Experts also note that gold has become a very speculative asset, and typical gold investors, including central banks, tend to be more risk-averse and may have been spooked by the volatility of gold in the current climate.For the price of gold to shift dramatically, two things would need to happen: a clear indication from the Federal Reserve that interest rates may be cut further, despite inflationary pressure, and a change in perception as to the length of the war.

The world is currently experiencing a severe energy crisis, surpassing the combined impact of the 1970s oil shocks and the Ukraine war, according to Fatih Birol, Executive Director of the International Energy Agency (IEA). Speaking at a media event in Australia, Birol warned that the energy crunch prompted by the US-Israel war on Iran has exceeded the 1973 and 1979 oil shocks and gas shortages stemming from Russia's 2022 invasion of Ukraine.Birol stated that the crisis is equivalent to two oil crises and one gas crash combined. He noted that the effective closure of the Strait of Hormuz and attacks on energy facilities have reduced global oil supplies by about 11 million barrels per day (bpd), more than double the combined shortfalls of the 1970s crises. Additionally, liquefied natural gas (LNG) supplies have been reduced by about 140 billion cubic meters, compared to a shortfall of 75bcm in the aftermath of Ukraine's invasion by Russia.At least 40 energy facilities across nine countries have been severely damaged in the conflict, according to the IEA chief. Birol emphasized that the global economy is facing a major threat and expressed hope that the issue will be resolved soon.Birol also expressed concern that the scale of the crisis had not been fully understood, which prompted him to speak publicly about the situation. The IEA has proposed measures to reduce energy consumption, including facilitating remote working and carpooling, and lowering speed limits on motorways.The IEA chief is in consultation with different countries about releasing more strategic oil reserves if needed. However, he emphasized that the single most important solution to the crisis is to unblock the Strait of Hormuz, which usually carries about one-fifth of global oil and LNG supplies.

Israel and the United States have launched a new wave of attacks against Iran, escalating the conflict in the region. The Israeli military confirmed that it carried out a second round of strikes, hours after initiating a wide-scale wave of attacks on infrastructure targets in Tehran. Al Jazeera Arabic's correspondent in Tehran reported that the size and volume of the explosions in the Iranian capital were unprecedented, especially on the eastern side of the city. Iranian air defense systems were activated in response to US-Israeli drones hovering over the city. According to Mohamad Elmasry of the Doha Institute for Graduate Studies, the war is escalating, with US and Israeli forces hitting not only military installations but also hospitals, schools, and over 5,000 residential units. He warned that the situation is becoming increasingly dangerous, especially for the people of Iran. Iran's Fars news agency reported that a strike on a residential building in Khorramabad killed one child and wounded several people, while at least six people were killed in strikes on homes in Tabriz city. The Iranian Red Crescent Society stated that over 80,000 civilian building units have been hit, with some fully demolished. The US military targeted a turbine engine production site in Qom province, used for drone and aircraft components linked to the Islamic Revolutionary Guard Corps (IRGC). Meanwhile, Iranian missile strikes continued overnight in Israel, with falling shrapnel reported across several locations. Iran's Foreign Ministry denied any dialogue with the US, claiming that President Trump's comments aimed to reduce energy prices and buy time to implement military plans. The IRGC warned that if the US targets Iran's power plants, it will hit power plants in areas supplying electricity to US bases and American interests. The conflict has resulted in over 1,500 deaths in Iran and 15 deaths in Israel. The situation has also unsettled oil markets, with prices fluctuating as Asian trading opened. The head of the International Energy Agency warned that the situation in the Middle East is very severe and worse than the two energy crises of the 1970s combined.

The youth unemployment crisis has sparked a call for more comprehensive support for young people seeking jobs. Many argue that the current system fails to adequately address the challenges faced by this demographic, leading to a cycle of rejection, confusion, and anxiety. The need for a revamped support system is underscored by the reality that young people often face significant barriers when entering the job market. The threat of losing benefits for not meeting job search requirements can undermine trust and engagement, making it even more difficult for them to secure employment. To effectively tackle this issue, experts suggest that the government must rebuild trust by removing punitive measures and creating job centers that offer more personalized support. This includes providing young people with the time, resources, and relationships with work coaches who understand their ambitions and can help build their confidence. Young people's voices must be central to shaping the support designed for them. By incorporating their perspectives, the government can create more effective and targeted initiatives that address the specific needs of this demographic. The crisis is also attributed to government policies that have driven employers' decision-making. For instance, national insurance rises and increases in the minimum wage have made young people more expensive to employ, leading companies to opt for older, more experienced workers. Furthermore, the rise in young people out of work due to ill health reflects a deeper erosion of stability. The article argues that secure, humane work is not an optional extra but a public health intervention, highlighting the need for a more comprehensive approach to addressing youth unemployment.

EasyJet's chief executive, Kenton Jarvis, has announced that the ongoing conflict in the Middle East has started to impact flight bookings, with a notable drop in reservations for destinations such as Turkey, Cyprus, and Egypt. Bookings have slowed for summer, with passengers opting for 'usual suspects' like Spain, Greece, and Portugal instead.Jarvis attributed the decline to the Iran war and its effect on consumer confidence. He mentioned that while the airline has hedged much of its fuel into next year, soaring kerosene prices will likely lead to a rise in air fares by the end of the summer.Fuel prices have surged, with easyJet currently paying $700 (£520) a tonne for jet fuel, compared to current spot prices of $1,850. Jarvis noted that while most European airlines are well-hedged, fares will likely increase as the higher costs are passed on to consumers.The airline's hedging strategy means it can still secure a price of $1,000 in six months, but market expectations are that fuel prices will decrease. However, Jarvis warned that the reality is that prices will start feeding into consumer costs over the back end of summer.In related news, easyJet has reopened a base at Newcastle airport, which it closed in 2020 due to Covid-19. The base will bring 140 jobs and support over 1,000 new jobs in the wider north-east region, with plans to fly up to 800,000 holidaymakers out of Newcastle this summer.