Totally grounded? How the jet fuel crisis could change our holidays – and world history

Jet fuel has doubled in price since the start of the war on Iran. How bad will the disruption get and could this accelerate the route to jet zero?What happens to flights if the world runs out of oil? Well, obviously they will be grounded. To be more specific, is it possible, if the war in Iran does not resolve and the strait of Hormuz remains blocked, that airlines will simply run out of aviation fuel?It’s not a question anyone has had to ask before. Air travel has hit some hurdles this century that nobody could have seen coming – Covid, of course, but also the Icelandic volcano in 2010, which closed much of European airspace for eight days, cost an estimated €3.75bn (£3

Four in five Britons worried Iran war will make food more expensive, poll finds

Four in five people are worried that the Iran war will make food more expensive, according to a new poll, as businesses warned the “window is closing” for ministers to cut energy costs for UK retailers.Research by Opinium found that 80% of people are worried about the rising price of groceries, which would come from retailers passing on cost increases to consumers, while 73% expect the conflict to push up prices of other products.The blockade of the strait of Hormuz has already sent oil and gas prices soaring, caused a crisis in the global fertiliser industry, and has made shipping and distribution more expensive.The effects have so far been felt most acutely in sectors such as manufacturing and chemicals, which use high amounts of gas. The UK chancellor, Rachel Reeves, announced more support on bills for the most energy-intensive businesses in April, but now faces fresh calls to cut costs for the food sector

Reinstate windfall tax on banks after surge in profits, TUC urges

An increased windfall tax should be imposed on the UK’s largest banks according to trade union leaders, after the big four lenders reported almost £14bn in first-quarter profits, partly fuelled by market turbulence caused by the Iran war.The Trades Union Congress (TUC) renewed its call for an increase in the current bank surcharge, which was reduced from 8% to 3% of profits above £100m by the Conservative government in 2023, as banks benefit from the high interest rate environment.The Bank of England held interest rates at 3.75% last week, with markets pricing in up to two increases by the end of this year. The average two-year fixed mortgage rate was 5

Two million airline seats cut amid soaring jet fuel prices

Two million airline seats have been cut from this month’s schedules as airlines redraw their operations because of soaring jet fuel prices amid the Middle East conflict.About 13,000 fewer flights will operate in May around the world after recent cancellations, according to data from the aviation analytics company Cirium.Although the figure represents less than 2% of global aviation capacity, and only a net 111 flights have disappeared from London Heathrow schedules it comes amid fears that the long-term supply of jet fuel could cause further summer cancellations, with UK airlines told at the weekend they could have more flexibility to consolidate flights on popular routes if needed.Some of the 2m seats have been cut by using smaller planes, as well as outright cancellations.Istanbul and Munich have recorded the biggest drop in flights, with Turkish Airlines and the German flag carrier Lufthansa making swingeing cuts

Stock markets are wobbling, but £10bn cash bids at fat premiums can still happen

It was a bad day for the FTSE 100 index on Tuesday – down 1.4% – but the puzzle in many quarters is why share prices haven’t fallen further since the start of the US-Israel war on Iran. The index is still up by a couple of percentage points since new year, which is not a bet most would have made at the time if they had been told an inflationary energy price shock lay around the corner.An absence of Iran-related corporate profits warnings partly explains the relative resilience, even if those usually take a while to arrive. So, too, the fact that the Footsie is overpopulated with overseas earners for whom the US economy, which isn’t suffering Europe’s soaring natural gas prices, matters more than their home market

UK 30-year borrowing costs hit highest since 1998 amid oil price surge and political uncertainty – as it happened

Time to wrap up…The UK government’s long-term borrowing costs have hit their highest level since 1998, amid rising fuel prices and concerns about political stability.The yield – effectively the interest rate – on 30-year UK government bonds (gilts) hit 5.77% at lunchtime on Tuesday, up 0.13 percentage points – exceeding the 27-year high reached last September.Yields have been rising across leading economies amid renewed fears over rising inflation, after US efforts to escort ships through the strait of Hormuz prompted Iranian reprisals