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The UK's food inflation is expected to soar to 9% this year, even if the strait of Hormuz opens within the next few weeks, according to the Food and Drink Federation. This represents a significant increase from their previous forecast of 3.2% made before the Middle East conflict.The industry is facing unprecedented cost pressures due to the Iran war, which is driving up energy prices. Dr. Liliana Danila, chief economist at the FDF, stated that the current situation is unprecedented and hard to predict, and that food inflation is likely to rise in the coming months.The 9% forecast assumes that the strait of Hormuz, a key shipping channel, will reopen to cargo traffic within the next two to three weeks, and that most large energy facilities will return to normal within a year. The chancellor, Rachel Reeves, is set to meet with the bosses of the UK's biggest supermarkets to discuss the potential impact on the cost of living and possible supply squeezes.Some food companies, such as Princes, have already raised their prices in response to the cost pressures. UK farmers and producers have warned that without government help with surging energy bills, there could be shortages of domestic produce such as tomatoes, cucumbers, and peppers.The British Tomato Growers' Association is campaigning for the government to classify food producers as energy intensive users, which would help reduce their energy bills. If no support is provided, businesses may fail, according to Simon Conway, chair of the BTGA.

The ongoing conflict in the Middle East, specifically the US-Israel war on Iran, has sent shockwaves through the global economy, with the Bank of England predicting that over 1.3 million more UK households could face increased mortgage payments. Financial markets have reacted swiftly, with banks pulling around 1,500 mortgage products and raising interest rates on their remaining 7,000 home loan products in recent weeks, according to the Bank's financial policy committee (FPC). The FPC warns that approximately 5.2 million borrowers, or roughly 58% of borrowers across the country, could face higher mortgage payments by the end of 2028, up from 3.9 million before the conflict began. The data provider Moneyfacts reported that the average two-year fixed residential mortgage rate has risen to 5.84%, up from 4.83% at the start of March. Caitlyn Eastell, a personal finance analyst at Moneyfacts, noted that the impact on borrowers has been almost immediate, with borrowing costs sharply rising. The FPC emphasized that a prolonged war increases the possibility of large, frequent and possibly overlapping shocks that could put global financial stability at risk. The UK's economic outlook has deteriorated, increasing pressure on households and businesses, with the FPC adding that a prolonged conflict could amplify risks that were already present before the conflict began. The Bank of England governor, Andrew Bailey, cautioned that markets may be getting ahead of themselves by pricing in interest rate hikes in response to the Iran war, stating that the Bank's remit is to cause the least damage to the economy and jobs.

Global financial markets experienced a significant shift on Wednesday as oil prices plummeted and stock markets rallied following comments from US President Donald Trump. He suggested that the conflict in Iran would be resolved within 'two to three weeks'.The international benchmark for oil, Brent crude, fell as low as $98.35 a barrel, marking a decline of over 15% from the previous day and its lowest level in a week. It later recovered slightly, trading down 2.5% at $101.Stock markets in Asia saw substantial gains, with Japan's Nikkei surging 5%, South Korea's Kospi jumping 8%, Hong Kong's Hang Seng rising 2%, and China's CSI 300 index up 1.7%. European markets also followed suit, with the UK's FTSE 100 up 1.8% and the Europe Stoxx 600 index rising 2.2%.Trump's comments on Tuesday sparked a relief rally in the US stock market, with the S&P; 500 rising 2.9%. He stated, 'Now we're finishing the job. I think in two weeks or maybe a few days longer, we'll do the job. We want to knock out everything they've got.'Market analysts are cautiously optimistic, with Emma Wall, chief investment strategist at Hargreaves Lansdown, noting that markets are 'choosing to believe the optimism from the White House.' However, she also warned that energy disruptions could continue for months, impacting inflation and economic growth.The prospect of interest rate rises in the UK has diminished, with money markets pricing in about 41 basis points of increases to the UK bank rate by the end of 2026, down from 66 basis points anticipated on Tuesday.The price of gold rose to its highest level in almost two weeks, up 0.8% to more than $4,700 an ounce.

Cricket Australia released its 21‑man contract roster for the 2026‑27 season, rewarding most Ashes‑winning players but leaving out Sam Konstas and veteran all‑rounder Glenn Maxwell as the board prepares for an unusually dense calendar. Fast‑bowler Brendan Doggett, who debuted in the opening Ashes Test at Perth last November, secured his first national contract. Meanwhile, opener Jake Weatherald retained an upgraded deal despite a modest series average of 22.33 runs. Both Michael Neser and spinner Todd Murphy were again awarded full contracts, reflecting the board’s focus on depth ahead of a schedule that kicks off with a two‑match home Test series against Bangladesh in August. Following the Bangladesh series, Australia will embark on ODI tours of Zimbabwe and South Africa, a home white‑ball series versus England, and a marathon stretch of 10 Test matches in 14 weeks. The latter includes contests against New Zealand, India and the historic 150th Anniversary Test at the MCG. Konstas, who burst onto the scene with a memorable 60‑run debut against India on Boxing Day 2024, failed to build on that promise, accumulating only 103 runs across nine further Test innings for an average of 16.30. The lack of consistency cost him a place on the new list. Despite the setback, selector chair George Bailey stressed that the 20‑year‑old’s journey is far from over. “He is highly talented and still on a development path,” Bailey said. “We saw encouraging signs toward the end of the season, with more consistent starts in the Sheffield Shield.” Bailey added that Konstas could feature in the upcoming Australia A tour to India, noting the board’s continued interest in his progress. Alongside Konstas and Maxwell, the contract cuts also affected Lance Morris, Jhye Richardson and Matt Short. Long‑time opener Usman Khawaja remains absent following his retirement. Weatherald’s contract renewal signals the selectors’ confidence in his potential to open the batting against Bangladesh, although Bailey cautioned that final selections will be made closer to each series, with extensive camp periods in Brisbane to fine‑tune the squad. Current contracted players: Xavier Bartlett, Scott Boland, Alex Carey, Pat Cummins, Brendan Doggett, Nathan Ellis, Cameron Green, Josh Hazlewood, Travis Head, Josh Inglis, Matthew Kuhnemann, Marnus Labuschagne, Nathan Lyon, Mitchell Marsh, Todd Murphy, Michael Neser, Steve Smith, Mitchell Starc, Jake Weatherald, Beau Webster, Adam Zampa.

The Iran war has triggered a massive energy shortfall in Asia, forcing governments to ramp up their use of coal, the dirtiest fossil fuel. Countries across the region, including South Korea, Thailand, the Philippines, India, and Bangladesh, are trying to compensate for a drop-off in imported energy, much of which comes from the Middle East.Climate experts have warned that the increased use of coal will have a devastating environmental impact, and that the energy crisis should be a wake-up call for governments to invest in renewables. The crisis has highlighted the importance of renewable energy for energy security in Asia.The global market has flipped within four weeks from a healthy supply surplus to a severe deficit, leading to price spikes and fuel shortages. Almost 30bn cubic meters of LNG has been removed from global supply chains, with over 80% of this loss affecting the Indo-Pacific region.Experts warn that it will take years to recover LNG supplies and that the crisis will have a lasting impact on the energy landscape in Asia. Governments are racing to overcome shortfalls, with some countries introducing measures to reduce energy consumption, such as four-day workweeks and remote work arrangements.

The Iraqi Ministry of Interior announced on Tuesday that an unidentified foreign journalist was seized by "unknown individuals" in Baghdad, though the reporter’s name was not disclosed in the initial statement.Security forces swiftly pursued the kidnappers, arresting one suspect and confiscating the vehicle used in the abduction. Authorities emphasized that investigations remain ongoing to locate all participants and secure the journalist’s release.This kidnapping comes as Iraq experiences a surge in violence linked to the broader US‑Israel war on Iran. Recent weeks have seen attacks on Iraqi security forces in Anbar province and elsewhere, underscoring a volatile security environment.The Committee to Protect Journalists (CPJ) expressed deep concern after media reports identified the victim as U.S. freelance journalist Shelley Kittleson. CPJ’s Middle East regional director, Sara Qudah, urged Iraqi authorities to "do everything in their power to locate Shelley Kittleson, ensure her immediate and safe release, and hold those responsible to account."U.S. State Department official Dylan Johnson confirmed that Washington is "aware of the reported kidnapping of an American journalist" in Baghdad. He noted that the State Department had previously issued a warning to the journalist about threats and that it is coordinating with the FBI to facilitate a swift release.Johnson also revealed that Iraqi authorities have taken into custody an individual with ties to the paramilitary group Kataib Hezbollah, who is believed to be involved in the kidnapping.Press‑freedom advocates have repeatedly called on the Iraqi government to strengthen protections for journalists. Reporters Without Borders warned that journalists face "threats from all sides" amid political instability and financial pressure, noting that abductions are often employed to "terrorise and silence" media workers.CPJ has documented a series of press‑freedom violations since the war began on February 28, including a mid‑March assault on a television crew in Kirkuk allegedly carried out by fighters affiliated with the Popular Mobilization Forces (PMF), a faction of Iraq’s armed forces with Iran‑aligned elements.

The United Nations Development Programme (UNDP) released a stark assessment on Tuesday, projecting that a four‑week US‑Israel conflict with Iran could slash Arab regional GDP by 3.7 % to 6 %. In monetary terms, the loss translates to a contraction of $120 billion to $194 billion, marking one of the deepest economic shocks in recent Middle‑East history. UNDP’s regional director, Abdallah Al Dardari, warned that the downturn would likely eliminate 3.7 million jobs and drive around four million additional people below the poverty line. He described the situation as exposing the “fragility of the Arab economy.” The analysis is based on a scenario of a “short but intense conflict lasting for four weeks.” Should hostilities extend beyond that window, the economic fallout could be even more severe, especially as Iran’s attacks on Gulf energy infrastructure tighten oil and gas flows through the Strait of Hormuz. Amid tightening supplies, Brent crude futures surged 4.7 % to over $118 per barrel. The report highlighted that disruptions to “strategic maritime corridors” generate “knock‑on effects on inflation, trade flows, and global supply chains,” threatening the livelihoods of interconnected economies across the region. Poverty spikes are expected to be most pronounced in the Levant and in “fragile” states such as Sudan and Yemen, where baseline vulnerability is already high and economic shocks translate quickly into welfare losses. Lebanon faces a compounded crisis after Hezbollah’s retaliatory strikes against Israel, following the US‑Israeli killing of Iran’s Supreme Leader Ayatollah Ali Khamenei on 28 February. Ongoing air strikes, evacuation orders, and widespread destruction of residential areas, transport networks, and public services have triggered large‑scale displacement. Al Dardari concluded with a plea: “We hope the fighting will stop tomorrow, as every day of delay has negative repercussions on the global economy.”

Ukrainian unmanned aircraft have targeted the Russian Baltic port of Ust‑Luga for the fifth time within a ten‑day span, intensifying Kyiv's campaign against Russia's oil‑export infrastructure. Regional governor Alexander Drozdenko reported that three individuals, two of them children, received medical care after the latest overnight raid, and several structures sustained damage. He added that regional air‑raid alerts have since been lifted, though details on port damage remain scarce. Located on the southeastern coast of the Gulf of Finland, Ust‑Luga comprises an extensive network of oil‑processing plants and export terminals. The facility moved 32.9 million metric tonnes of oil products in the previous year and typically handles around 700,000 barrels of crude oil per day. The series of strikes on March 22, 25, 27, 29 and 31 forced temporary suspensions of export operations. According to market‑based calculations, the cumulative effect of drone attacks, a contested pipeline strike and the seizure of tankers has halted roughly 40 % of Russia's oil export capacity. The disruption has contributed to a surge in global oil prices, with Brent crude climbing above $116 a barrel – its highest level in nearly two weeks amid escalating conflicts involving the United States, Israel and Iran. While Kyiv continues to press its aerial campaign, the European Union dispatched senior diplomats, including top envoy Kaja Kallas, to the Ukrainian capital. Their visit, timed with the fourth anniversary of the Bucha massacre, underscored EU commitment to holding Russia accountable for alleged war crimes. Kallas posted on X, describing Bucha as a symbol of Russian brutality, and affirmed that the EU will not allow such atrocities to go unpunished. Ukrainian Foreign Minister Andrii Sybiha echoed the message, urging international partners to keep their focus on Ukraine despite the widening war in the Middle East. Financially, the EU’s planned €90 billion loan for Ukraine has been stalled by Hungarian Prime Minister Viktor Orban, who objects to Russia's oil transit through the Druzhba pipeline and is also impeding Ukraine's EU accession talks. In parallel, Kyiv announced that its air‑defence forces intercepted 267 of 289 Russian drones launched overnight, while Russian officials claimed control of the village of Mala Korchakivka in the Sumy region. The convergence of intensified drone attacks on Russian oil assets, soaring energy prices, and high‑level EU diplomatic activity highlights the expanding geopolitical ripple effects of the Ukraine conflict across Europe and the broader Middle‑East theater.

Israeli and U.S. forces launched a series of air strikes on Tuesday that struck Tofigh Daru Research and Engineering Company, one of Tehran’s largest producers of anaesthetics and anti‑cancer medicines. The state‑run firm, owned by the Social Security Investment Company, saw its drug‑production line damaged, according to an official post on X. In the north‑western city of Zanjan, a separate strike hit the Husseiniya Azam, a Shia congregation hall adjacent to a mosque. Iranian Red Crescent teams rescued two people from the rubble; one of the victims died and several others were injured. Further attacks were reported in the western province of Kermanshah, where a civilian contracting company in Qasr‑e Shirin – a border town with Iraq – was hit. One person was killed and eight injured, the Mehr news agency said. Heavy bombing was also confirmed in Isfahan, a strategic hub for Iran’s defence industry and home to key nuclear facilities such as Natanz. Local officials indicated that the strikes may have targeted “military sites,” though the exact locations and damage assessments remain unclear. Iranian officials condemned the operations. Former foreign minister Javad Zarif denounced the targeting of the pharmaceutical plant as a deliberate attack on a medical facility, calling the aggressors “desperate” and accusing them of “diabolical delusions.” Governor‑level security official Akbar Salehi echoed these concerns, noting that the strikes appeared aimed at military installations without specifying which ones. The broader conflict has already claimed 1,937 Iranian lives since the joint U.S.–Israeli campaign began on 28 February, while 20 Israelis have been killed. Recent Israeli interceptions using the Iron Dome and David’s Sling systems have limited damage on Israeli soil, but impact sites were reported in Tel Aviv, Bnei Brak and Petah Tikva. Amid the escalating violence, diplomatic channels remain active. U.S. Secretary of State Marco Rubio told Al Jazeera that communications between Washington and Tehran continue, primarily through intermediaries, and that the U.S. aims to achieve its war objectives “in weeks, not months.” Pentagon chief Pete Hegseth added that negotiations to end the conflict are “very real, ongoing and gaining strength.” Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed a retaliatory strike, saying it hit an Israeli container ship in the Gulf with a ballistic missile and that Iranian drones targeted a group of U.S. Marines near a UAE military base. Public sentiment in Iran has turned sharply hostile, with pro‑state demonstrations erupting in Tehran as citizens protest the continued air raids. The atmosphere, described by Al Jazeera’s Tohid Asadi as a “cloud of mistrust,” reflects growing frustration over diplomatic dead‑ends and the relentless cycle of attacks.