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Economy May 21, 2026

The Economics of Hormuz: Calculating the Cost of Iran's Transit Toll

As the Strait of Hormuz remains closed eleven weeks into the Iran war, this analysis examines wheth…
The LeadEleven weeks after the start of the Iran war, the Strait of Hormuz has remained closed to naval traffic, bleeding the global economy far beyond the Gulf. Iran's Islamic Revolutionary Guard Corps (IRGC) maintains an iron grip over this narrow, strategic waterway, while a corresponding United States naval blockade on Iranian ports has failed to reopen it.Before the war began, between 120 and 140 ships travelled through the strait each day, about half of them oil tankers carrying some 20 million barrels of oil between them. Now, only a few vessels whose owners have negotiated with the IRGC are permitted to pass.The Strategic Control of HormuzOn Wednesday, Iran said it coordinated the transit of 26 vessels through the Strait of Hormuz in 24 hours, two days after announcing the formation of the Persian Gulf Strait Authority (PGSA), a new body to provide "real-time updates" on operations in the strait.Since the announcement of a temporary ceasefire between the US and Iran in April, Iran has been working on formalising a mechanism to charge a transit fee from ships crossing the critical chokepoint, through which 20 percent of the world's oil and liquefied natural gas (LNG) are shipped during peacetime.Tehran has reportedly already charged fees as high as $2m per ship for transit since the war started. Even though countries opposing Tehran say this is illegal, it may still be less expensive than the overall cost of the closure of the strait each day.The Economic Cost of BlockadeNearly one-fifth of global oil and LNG exports were shipped by Gulf producers through the Strait of Hormuz before the US and Israel bombed Iran on February 28, triggering the Iranian closure of the waterway. The strait is the only waterway linking Gulf producers to the open ocean – there is no other route through which they can ship exports.About 20.3 million barrels per day of oil passed through the Strait of Hormuz in peacetime – nearly 27 percent of global maritime oil trade. The lion's share of that crude went to Asian markets.Global LNG trade has been similarly hard hit. On the day before the war broke out, Brent crude – the global benchmark for oil prices – closed at $72.48 per barrel. After Iran closed the waterway on March 4 and began attacks on vessels attempting to sail through, traffic came to a standstill, stranding about 2,000 ships on either side of the strait.In terms of lost oil revenues, this amounts to $114.8bn of losses per day. About 10 billion cubic feet of LNG per day also used to pass through the strait, worth a further $7.8bn.The Cost-Benefit Analysis of Transit FeesFor hundreds of ships stranded in the Gulf with thousands of sailors on board, the cost of remaining anchored is steep, including crew wages, loan repayments, repair and management, coupled with inflated war risk premiums.In turn, Iran has reportedly been charging up to $2m for authorisation to pass. Experts say many will see this as worthwhile purely in terms of monetary cost."There is no doubt that paying Iran is cheaper than a continuous blockade because a sitting tanker bleeds money," said Nader Habibi, an Iranian American economist."It makes sense from an economic point of view, but it is not politically feasible," he added. "The companies are under pressure from the US sanctions and not to make arrangements with Iran. This is not just a purely economic cost-benefit analysis, but long-term considerations that are taken into account."International Legal PerspectivesInternational law protects free transit through strategic waters such as natural straits like Hormuz, barring countries from imposing passage tolls even where the waterways fall entirely into territorial waters, like in the case of Hormuz.However, services such as security controls, inspections and insurance regimes can be charged for. Chargeable fees also partly depend on whether a waterway is a man-made passageway or a natural one.These are three different precedents in maritime traffic flow:Panama Canal: An artificial waterway connecting the Atlantic and Pacific oceans. Vessels pass through a unique system of locks that raise and lower vessels across elevated terrain. Since Panama built, maintains and operates the canal, it can charge transit fees based on vessel size, cargo capacity and booking priority. These range from several hundred thousand dollars per transit to some slots sold for millions of dollars.Suez Canal: Another artificial canal, linking the Mediterranean and Red seas. Egypt charges transit fees for the use of canal infrastructure, maintenance and traffic management services through the narrow waterway. Container ships and oil tankers pay from several hundred thousand dollars to more than one million dollars per voyage.Turkiye's Bosporus Strait and Dardanelles: These are different because they are natural straits, rather than man-made canals. Turkiye charges for navigation-related services such as lighthouse operations, rescue readiness, medical support and traffic management – and tightly controls ship scheduling and navigation.Regional Cooperation PossibilitiesIran's newly-formed PGSA published a new map of Hormuz, stretching from Kuh-e Mubarak in Iran to south of Fujairah, in the UAE, at the eastern entrance of the strait, and from the tip of Qeshm Island to Umm al-Quwain at the western entrance.Given how the Iran war has spilled over into the Gulf region – with the UAE taking the brunt of Iranian strikes – economist Mohammad Reza Farzanegan said "regional cooperation with Iran is the most realistic path to stable transit through the Strait of Hormuz."The UAE, Oman, Qatar and Iran will have to work together because their economies require it, he argued. A workable arrangement could include a joint maritime authority, shared monitoring, emergency coordination, environmental protection and service-based contributions for maintaining safe passage."This would give Iran a recognised role in the security of the waterway while giving Persian Gulf economies more predictability," Farzanegan added. "Such a framework is also more realistic than relying on external military enforcement, which has been more a source of trouble for these states."The Future OutlookWhile it may seem that the economics of the closure of the strait are currently skewed towards Iran, Aniseh Tabrizi, an associate fellow on the Middle East and North Africa Programme at think tank Chatham House, noted that "the economics by itself is not going to be the driver to change calculation or move from the current standpoint."She emphasized that Iran and the US need to reach a "diplomatic compromise, with other calculations linked in to the economic factor", before there can be an end to the energy supply crisis.Farzanegan added that if the world expects stable access to the Strait of Hormuz, then paying Iran could well be accepted as the price of keeping the vital waterway predictable. "From an economic perspective, a negotiated transit arrangement [with Iran] now makes more sense than continued closure," he concluded.
#Iran #Strait of Hormuz #Oil Prices
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World Wide May 21, 2026

Ebola Spreads to Conflict Zones: The Postponement of the India-Africa Forum Summit

The Indian government and the African Union have postponed the upcoming India-Africa Forum Summit d…
The upcoming India-Africa Forum Summit has been officially postponed by the African Union and India, marking a significant shift in diplomatic priorities as the Democratic Republic of the Congo battles a resurgence of the Ebola virus.Conflict Zones Complicate the Ebola ResponseThe outbreak has reached South Kivu province, a region currently under the control of the M23 rebels. This development is critical because the area, including the provincial capital Bukavu, is densely populated and difficult to access due to ongoing military conflict. The M23 group, backed by Rwanda, has stated their commitment to working with international partners, yet the presence of the virus in their territory poses a severe logistical challenge for health workers.Alarming Statistics from the WHOAccording to the World Health Organization, this is the 17th outbreak in the DRC. Current figures indicate 600 suspected cases and 139 deaths. The virus has also crossed borders into Uganda, raising the stakes for regional containment. The WHO has declared this an international emergency, signaling that the virus is no longer just a local health crisis but a global threat.Geopolitical Fallout and Aid ShortagesThe postponement highlights the fragility of international cooperation when health crises intersect with political instability. Furthermore, the response is hampered by a sharp decline in foreign aid, particularly from the United States, which has led to shortages of essential supplies for first responders. The decision to delay the summit reflects a recognition that diplomatic engagement is less effective when the health security of the participating nations is compromised.A Long Road to ContainmentThe presence of the virus in rebel-controlled territories suggests that the outbreak will be difficult to contain without a ceasefire. The rescheduling of the India-Africa Summit underscores that public health emergencies often supersede diplomatic agendas, potentially delaying economic cooperation until the crisis stabilizes.
#India #Africa #Ebola
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Tech May 21, 2026

Aluminum Recycling Startups Leverage AI as Prices Soar 20%

As aluminum prices surge 20%, recycling startups like Sortera and Amp are turning to AI to improve …
The Aluminum Price Surge The ongoing conflict in Iran has led to a significant increase in aluminum prices, reaching levels not seen in decades. With around 10% of the world's aluminum production coming from the Gulf region, the war has disrupted supply chains, driving up prices by 20%. Recycling Startups on the Rise The U.S. government has flagged aluminum as a critical mineral, and recycling startups are capitalizing on this trend. Aluminum is one of the most recycled materials in the U.S., but only about 20% is recovered, according to the EPA. Startups like Sortera and Amp are using AI to improve recycling efficiency. AI-Powered Recycling Sortera, a metals recycling startup, has opened its second facility in Tennessee, doubling its processing capacity to 240 million pounds of aluminum per year. The company uses a range of sensors, including lasers, cameras, and X-ray fluorescence, to feed AI algorithms that classify each piece of scrap to identify the specific grade of aluminum. Competitive Approach Amp has taken a different approach, using an AI-powered sorting system to sift through both recycling and general waste streams. The system uses sensors, including visible light and infrared cameras, to identify materials and differentiate plastics from aluminum. The Future of Aluminum Recycling With AI-powered recycling facilities like those being built by Sortera and Amp, the metals industry could see a significant boost in domestically produced aluminum supplies. As Matanya Horowitz, CTO at Amp, noted, "Half of the aluminum in a metro area — in places with successful recycling programs — are just in the garbage, not even touching the recycling system."
#Aluminum #Recycling #AI
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Environment May 21, 2026

Gaza Sisters Turn War Rubble into Bricks, Win Earth Prize

Two sisters from Gaza have won the prestigious Earth Prize for their innovative approach to recycli…
The Gaza Sisters' Innovative Solution In a remarkable display of ingenuity and determination, two sisters from Gaza have been awarded the Earth Prize for their groundbreaking work in transforming war rubble into sustainable bricks. This initiative not only highlights the sisters' creativity but also underscores the critical need for innovative solutions in regions devastated by conflict. The Problem and The Solution Gaza has long been plagued by the challenges of war, leaving behind a landscape of destruction and a significant amount of rubble. The sisters, leveraging their backgrounds in environmental science and engineering, devised a method to recycle this rubble into bricks that can be used for rebuilding. This process not only helps in cleaning up the environment but also provides a sustainable material for construction. The Impact of Their Work Environmental Impact: Their work significantly contributes to reducing the environmental footprint of rebuilding efforts by recycling materials that would otherwise end up in landfills. Community Impact: By providing a sustainable alternative to traditional building materials, the sisters are helping to pave the way for more eco-friendly construction practices in Gaza. The Earth Prize The Earth Prize is an annual award that recognizes and supports young innovators who have developed solutions to environmental challenges. The sisters' win is a testament to the global recognition of their efforts and the potential of their solution to inspire change. Looking Forward As the sisters continue their work, they are likely to inspire a new wave of environmental innovation in Gaza and beyond. Their achievement demonstrates that even in the most challenging circumstances, creativity, resilience, and a commitment to sustainability can lead to remarkable outcomes.
#Gaza #Earth Prize #Sustainability
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Economy May 21, 2026

UK Services PMI Plummets to Decade‑Worst Level Amid Political and Geopolitical Turmoil

The S&P Global services PMI fell to 48.5 in May, the sharpest decline in a decade, reflecting a per…
The latest S&P; Global purchasing managers' index shows UK services activity slipping to a 48.5 reading in May, marking the steepest drop in a decade and signalling a broader economic slowdown.Sharp Drop in UK Services PMI Marks Decade‑Worst DeclineIndex fell to 48.5 in May, down from 52.6 in April.Lowest reading since January 2021 and the lowest since July 2016 when Covid data are excluded.Services sector accounts for roughly 80% of UK GDP.PMI Numbers Reveal Contraction Below Growth ThresholdThe composite output index, which blends manufacturing and services data, dropped below the critical 50‑point mark, indicating contraction. Economists had forecast a reading of 51.6, making the actual figure notably worse.Payrolls fell for the 20th consecutive month, echoing ONS data that showed a loss of 100,000 payrolled employees in April.Manufacturing showed a modest rebound, hitting a three‑month high as firms front‑loaded orders.Broader Economic Implications for GDP and Monetary PolicyAndrew Wishart of Berenberg warned that a sustained PMI slump could push quarterly GDP growth from 0.6% in Q1 to -0.2% in Q2. Meanwhile, the Bank of England may keep its policy rate at 3.75% after recent inflation data showed a slowdown to 2.8% in April and wage growth easing to 3.4%.Outlook: Potential Further Slowdown Amid Geopolitical TensionsAnalysts attribute the downturn primarily to the ongoing Iran war and heightened uncertainty around Keir Starmer's leadership. If these pressures persist, the services sector could see continued job cuts and reduced spending, while manufacturers may face tighter order books, as noted by the CBI.Overall, the flash PMI suggests a cautious near‑term outlook for the UK economy, with policymakers likely to adopt a wait‑and‑see stance on interest‑rate adjustments.
#UK services sector #S&P Global PMI #Keir Starmer
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Entertainment May 21, 2026

Mick Jagger Cast as Lighthouse Keeper in Alice Rohrwacher's New Film

Mick Jagger has been cast as a lighthouse keeper in Alice Rohrwacher's new film, Three Incestuous S…
Mick Jagger's New Role Rolling Stones singer Mick Jagger is set to play a lighthouse keeper in Alice Rohrwacher's upcoming film, Three Incestuous Sisters. The film is an adaptation of Audrey Niffenegger's 2005 visual novel and marks Rohrwacher's English-language debut. Film Details The film is currently in production on the Italian island of Stromboli. Jagger joins a star-studded cast including Dakota Johnson, Jessie Buckley, Saoirse Ronan, and Josh O'Connor. Interestingly, O'Connor will play his character's son in the film. Rohrwacher's Previous Work Alice Rohrwacher received critical acclaim for her previous films, Happy as Lazzaro and La Chimera. Her adaptation of Three Incestuous Sisters is highly anticipated, given her track record of delivering unique storytelling. Jagger's Film Experience Mick Jagger has a history of appearing in films, including lead roles in Performance and Ned Kelly, as well as smaller roles in Freejack and The Man from Elysian Fields. He has also worked as a producer on projects like Enigma and Get on Up. The Future of the Film With a talented cast and a unique storyline, Three Incestuous Sisters is shaping up to be a compelling addition to Rohrwacher's filmography. The film's release is highly anticipated, and fans of Jagger and Rohrwacher will be eager to see the final product.
#Mick Jagger #Alice Rohrwacher #Josh O'Connor
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Entertainment May 21, 2026

‘Care’ Review – A Searing Portrait of Dementia Demands Rethink of Elder Care

Alexander Zeldin’s new play ‘Care’ at the Young Vic delivers an unflinching look at life in a demen…
Alexander Zeldin’s latest work, ‘Care’, opens at the Young Vic and immediately immerses the audience in a locked‑down dementia ward where the invisible lives of the elderly surface with stark clarity. Through characters such as Joan (played by Linda Bassett) and the compassionate carer Hazel (Llewella Gideon), the play interrogates autonomy, love, and institutional neglect.Zeldin’s ‘Care’ Puts Dementia Front‑and‑Centre on the Young Vic StageThe opening scene captures Joan’s disorientation, while her daughter Lynn (Rosie Cavaliero) and grieving sons struggle to bridge the widening emotional gap. Supporting residents—Agnes, Paula, and the Beckett‑like John—populate the ward with fragmented memories that oscillate between humor and profound sorrow. Set designer Rosanna Vize creates a dank, institutional atmosphere that underscores the play’s thematic weight.Critical Reception and Audience ResponseCritics praise the “gruelling, intense and true” performances, especially Bassett’s portrayal of a woman clinging to fleeting autonomy.Audience reactions range from uneasy laughter at confused dialogue to palpable silence during the hug between Joan and John, highlighting the play’s emotional volatility.The production runs until 11 July, indicating strong box‑office demand for a socially charged drama.Why ‘Care’ Challenges Societal Views on Elder CareBeyond personal stories, the play subtly exposes systemic issues: chronic understaffing, the slow passage of days, and the emotional toll on both residents and carers. By juxtaposing moments of accidental humour with stark loneliness, Zeldin forces a reassessment of how society values its oldest members and the responsibility of care institutions.Future Outlook: Dementia Stories on the British Stage‘Care’ may signal a shift toward more honest, medically informed narratives about ageing in theatre, encouraging playwrights to tackle dementia without sentimentality. As audiences respond to its raw honesty, producers are likely to commission further works that blend artistic expression with social advocacy, potentially influencing policy discussions around elder care.
#Alexander Zeldin #Young Vic #Linda Bassett
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Entertainment May 21, 2026

Hen Review: A Plucky Chicken’s Survival Tale Elevates Hungarian Cinema

Hungarian director György Pálfi’s latest film, Hen, follows a black‑brown hen through a brutal worl…
Why “Hen” Stands Out in Contemporary Animal‑Centric CinemaThe Guardian’s review frames Hen as a rare mainstream entry from director György Pálfi, whose oeuvre usually leans toward avant‑garde pastiche. In a market saturated with CGI‑heavy animal protagonists, the film’s reliance on real poultry and a trained fox gives it an authentic, almost documentary texture while delivering a surprisingly uplifting survival narrative.György Pálfi’s Unconventional Storytelling in “Hen”Pálfi, known for works like Final Cut: Ladies and Gentlemen and Taxidermia, applies his surrealist‑formalism to a plot that follows a hen from a Greek battery farm to a rundown seaside restaurant. Key storytelling beats include:Escape from a battery farm where the hen is a lone black speck among yellow chicks.Near‑death encounter with a trucker planning to turn her into dinner.Chase by a real trained fox that ends in a classic “cross‑the‑road” moment.Co‑habitation with an elderly restaurateur (Yannis Kokiasmenos) and exposure to human trafficking subplot.The film balances dark themes—human trafficking, animal cruelty—with a light tonal touch, avoiding overt anthropomorphism.Box‑Office and Distribution SnapshotWhile specific revenue figures are not disclosed, the review notes the film’s release schedule:UK and Irish cinemas from 22 May 2026.Limited theatrical run, typical for art‑house European titles.Given the niche appeal and festival‑circuit pedigree, expectations center on critical acclaim rather than blockbuster returns.What the Film Says About Human Exploitation and Animal AgencyBeyond its quirky premise, Hen mirrors human suffering through animal experience. The hen’s survival instincts parallel the plight of refugees hidden in the restaurant’s dark rooms, underscoring a thematic link between animal and human exploitation. The film’s disclaimer—no animals were harmed—reinforces a humane production ethic that resonates with contemporary audience sensitivities.Future Prospects for Animal‑Led Narratives in European FilmThe positive critical response suggests a growing appetite for stories that place animals at the narrative core without resorting to CGI. Pálfi’s success may encourage more European directors to explore:Real‑animal training techniques to achieve authentic performances.Hybrid storytelling that blends social commentary with animal perspectives.Distribution strategies targeting art‑house circuits and streaming platforms seeking distinctive content.If the trend continues, we can anticipate a richer, more diverse slate of animal‑centric films that challenge both cinematic form and ethical storytelling.
#György Pálfi #Hen (film) #The Guardian
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Entertainment May 21, 2026

Marcia Hutchinson’s ‘The Mercy Step’ Earns Women’s Prize Shortlist Spot

Debut novelist Marcia Hutchinson secures a place on the 2026 Women’s prize for fiction shortlist wi…
The Lead: Hutchinson’s Debut Secures Women’s Prize ShortlistDebut author Marcia Hutchinson has been shortlisted for this year’s Women’s prize for fiction with her novel The Mercy Step, a raw yet witty portrayal of a young Black girl growing up in 1960s Bradford.Bradford’s Windrush Legacy Shapes the StoryHutchinson was born in late 1962 to Jamaican parents in Bradford, a city that welcomed thousands of Windrush migrants from 1948.The novel reflects the racism, hostile weather, and inadequate housing that many Caribbean families faced during post‑war reconstruction.Bradford’s mill‑town backdrop provides the socioeconomic pressure that fuels the narrative’s tension.Linguistic Fusion: Jamaican Patois Meets Yorkshire DialectThe author blends Jamaican patois, Yorkshire dialect, and a “Speaky‑Spokey” RP, creating a distinctive voice that mirrors Mercy’s mixed cultural identity. This linguistic collage is highlighted in a pull‑quote praising Hutchinson’s seamless mix of language.Abuse, Resilience, and Early Political AwakeningThrough Mercy’s eyes, the novel depicts domestic abuse, coercive control, and hospitalisation, yet it never sinks into despair. A pivotal moment occurs when Mercy and her classmates assert their Black identity, echoing the 1968 Olympic Black Power salute.Critical Reception and Prize ImplicationsShortlisted for the 2026 Women’s prize for fiction, positioning Hutchinson as a notable new voice in British literature.Published by Cassava Republic at a price of £10.99.Review notes occasional “odd similes” and “vignette‑like” sections but praises the tight timeframe and empowering conclusion.Future Outlook for HutchinsonWith the shortlist boost, Hutchinson is poised for greater visibility, potential translation deals, and a stronger platform to explore further stories rooted in the Windrush experience and Black British resilience.
#Marcia Hutchinson #The Mercy Step #Women’s prize for fiction
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