WASHINGTON — The Democratic National Committee is organizing hundreds of community events across the country this weekend in hopes of harnessing the same concerns about affordability that President Trump capitalized on to return to the White House.
The events include school supply giveaways, food bank drives, neighborhood door knockings and organizer trainings.
“Everything costs too damn much under Donald Trump and the Republicans,” Democratic National Committee Chair Ken Martin said in a statement.
Martin said party members planned “to reach, engage, register, and mobilize voters who will make the difference in races up and down the ballot.”
Two years ago, Democrats were the ones accused of being indifferent to Americans’ anger about rising prices. Now they’re pointing the finger at Trump, who has downplayed the effect of lingering inflation.
He has described affordability concerns as a “hoax” and recently said, “I love the inflation” because he expects costs to drop as he tries to resolve his war with Iran.
About one-third of U.S. adults approve of how Trump is handling the economy, according to an AP-NORC poll from June. That’s down from the start of his second term, when 40% approved.
About 7 in 10 U.S. adults say the country’s economy is “poor,” according to an AP-NORC poll from June. That’s up from 65% in March, and underscores Americans’ ongoing unhappiness with the cost of living, which is being compounded by high gas prices because of the war in Iran.
Slightly more U.S. adults say the Democratic Party would do a better job than the Republican Party in handling inflation and the cost of living, according to a Marquette Law School/SSRS poll from May. Roughly one-third of U.S. adults — 35% — said the Democrats would do a better job, while 28% believe the Republicans would. Roughly one-third say the parties would be the same, or neither would be good.
This weekend’s events vary by region.
In New Mexico, Gov. Michelle Luján Grisham will convene a training for 150 potential campaign staffers. Nevada’s statewide campaigns will knock on doors in rural and working class neighborhoods. Others will call voters in swing districts with competitive U.S. House races to talk about the rising price of gas.
Some events are geared toward directly helping voters to persuade them that Democrats are concerned about affordability.
For instance, the local party in Kenosha County, Wis., plans to collect and distribute school supplies to poor families. And canvassers will fan out to discuss affordability issues in Arizona, Pennsylvania and Wisconsin.
The Republican National Committee dismissed the weekend’s events.
“Despite being millions of dollars in debt, the DNC is choosing to throw pitiful pep rallies to distract from the fact they created the inflation crisis,” said Delanie Bomar, an RNC spokeswoman. “Meanwhile, Republicans are hard at work fixing the economic mess Joe Biden and the Democrats created.”
Democrats hope that the events will show that their time in the political wilderness has made them more serious and effective at tackling kitchen table issues. But some fear their agenda may not be heard by voters in an increasingly fractured media environment.
“One of Donald Trump’s greatest strengths is that he’s so loud,” said Brian Derrick, a Democratic strategist. He said that events like the weekend’s itinerary help Democrats focus on an “Achilles’ heel” issue for Trump, “which right now is his lack of interest in addressing everyday costs for people.”
Brown writes for the Associated Press.
United States President Donald Trump has taken to social media to boast about the state of the economy amid a looming peace deal between the US and Iran, which yesterday signed a memorandum of understanding (MoU) to end the US-Israel war on Iran.
In a post on his social media platform Truth Social, the president claimed that “OIL IS FLOWING” and added that “THE STOCK MARKETS ARE ROARING, JOBS ARE AT RECORDS, AND PRICES ARE DROPPING (AFFORDABILITY!)”
list of 4 itemsend of list
While some of his claims are accurate, others are misleading. Al Jazeera takes a look:
That is true specifically for the Dow Jones Industrial Average. That index hit a record high of 51,999.67 for its close on Tuesday amid the potential of a ceasefire and a rally for the newly listed SpaceX.
The Dow slipped from that high on Wednesday amid the US Federal Reserve’s announcement that it would maintain the benchmark interest rate in the target range of 3.5-3.75 percent, and closed down on Wednesday at 51,494.99. The Dow has since jumped 0.35 percent in midday trading on Thursday at 51,671.
The Nasdaq Composite Index and S&P 500 both slipped.
However, this may not directly impact the 38 percent of Americans who do not invest in the stock market.
“The idea that the stock market is doing well does not reflect people’s experiences. There’s a saying that the stock market is not the economy, and that’s an important thing to keep in mind,” Michael Klein, professor of international economic affairs at The Fletcher School at Tufts University, told Al Jazeera.
And that lived experience is at the petrol station and at the grocery store.
Petrol prices have started to tumble in the last few days. The average price of a gallon of petrol (3.78 litres) on Thursday is at $3.99, according to the American Automobile Association (AAA), which tracks daily gas prices. That’s down from a high of $4.48 in May, but still well above $2.98, where prices were on February 28 when the US and Israel first struck Iran.
Despite the deal, experts believe that a petrol price decline will plateau for general consumers as the US strategic petroleum reserve, which earlier this week reached its lowest level since 1983, is refilled, all while oil extraction and shipping bottlenecks weigh on supply chains.
“The persistence of the price spikes is the key issue. Transportation, rerouting, insurance premiums, and manufacturing costs don’t normalise overnight, so even when oil stabilises, the cost base across the supply chain will stay elevated,” Tammy Kulesa, director of product marketing for supply chain execution at Blue Yonder, a supply chain management firm, said in remarks provided to Al Jazeera.
Mark Jones, professor of political science at Rice University in Houston, Texas, says prices will not return to prewar levels until the last quarter or close of 2027.
“Even once everybody believes the truce is going to hold [and] there’s no danger going through the Strait of Hormuz, those tankers take months to reach their final destination and come back,” Jones told Al Jazeera. “So the ability to replenish the stocks is going to take until, I think, the early fall [third quarter].”
Consumer inflation, which has jumped at the fastest pace in three years and is at 4.2 percent, has driven prices up on several key goods and has weighed on consumers. While energy prices have risen by nearly eight percent in the last two months alone, prices at the supermarket have jumped by 0.1 percent in May from the month prior after a 0.7 percent increase in April, with the highest increases in goods like bakery products, cereals, nonalcoholic beverages, as well as fruit and vegetables.
“There are real problems facing a lot of people. Prices are high, and wages have not kept up with prices. So people’s real purchasing power has fallen,” Klein said.
Supermarket chains have taken notice. Kroger, the largest supermarket chain in the US, said on Thursday that it will cut prices on thousands of products within its roughly 3,000 stores nationwide. This comes amid increased pressure from Costco and Walmart for value shoppers.
“Customers are being more deliberate with their spending and at times, shopping us selectively. We’re getting too many promotional trips and not enough of the full basket,” Kroger CEO Greg Foran said in a statement.
Jobs are not at record levels, despite Trump’s assertions.
The US economy added 172,000 jobs in May. The highest during the second Trump term was 214,000, in March. By comparison, on average, 300,000 jobs were added monthly under his predecessor, former US President Joe Biden, a Democrat, with some months much higher – including July 2021, when the economy added 943,000 jobs, albeit that was on the back of the COVID-19 pandemic as businesses rushed to hire after massive layoffs.
Under Trump, there have been several months of limited job growth that have been hyper-focused on specific sectors like healthcare. On average, employers added only 15,000 jobs a month in 2025. Meanwhile, the US economy lost 92,000 jobs this year in February.
Layoffs are also on the upswing. Job cuts jumped 16 percent between April and May, marking the most layoffs since May 2020 during the height of the pandemic, according to Challenger, Gray and Christmas, with artificial intelligence (AI) as a driving force behind the cuts. Slightly more than 97,000 people lost their jobs in May.
Overnight, 12.5 million barrels of crude oil travelled through the Strait of Hormuz, through which roughly a fifth of the world’s oil is normally shipped, according to US Vice President JD Vance. However, data from Kpler shows that travel through the strait is still low, with six verified crossings on June 17.
With the strait starting to open, oil prices tumbled to their lowest levels since the early days of the war as the temporary deal to end fighting and pull back sanctions elevated pressure on global supply.
Brent crude futures LCOc1 dropped $0.78 or one percent to $76.51 in midday trading.
Shipments of liquefied natural gas (LNG) have also ramped up, and a QatarEnergy LNG vessel has returned to Ras Laffan, where it has loaded more than 209,000 cubic metres, according to Kplr.
The value of Iran’s currency has risen by more than 15 percent against the US dollar, and its stock market has shattered records in the wake of the memorandum of understanding agreed between the United States and Iran on Sunday.
However, Iranians suffering for years from extremely high inflation and a plunging rial have found little economic relief as the prices of basic goods, such as food, remain high despite the diplomatic breakthrough.
list of 4 itemsend of list
The Iranian economy has suffered due to decades of US sanctions. The economic crisis was exacerbated after the US and Israel launched a war against Iran on February 28. As subsequent US naval blockade on Iranian ports further added to the misery of Iranians.
In Ferdowsi Street, the beating heart of Tehran’s foreign exchange market, the scene on Thursday was a stark departure from the panic of recent months. Exchange office boards flashed rapidly changing numbers as foreign currencies, led by the dollar, took a sharp dive.
“We closed our doors just hours before the official announcement of the US-Iran understanding at a rate of 1.8 million rials to the dollar,” Amir, a 35-year-old exchange office worker who asked to remain anonymous, told Al Jazeera. “Now it has fallen to 1.54 million rials, and we expect further declines.”
Amir noted a significant increase in sales volumes although buyers remained scarce as many anticipated the rial would strengthen further, potentially dropping to 1.4 million to the dollar or lower.
The recent gains mark a sharp turnaround. After the outbreak of the war, the exchange rate jumped to a historic peak of 1.9 million rials (190,000 tomans) to the dollar in March before settling at about 1.685 million just before recent attacks carried out despite a ceasefire.
Despite the rial’s recovery, a walk through Tehran’s grocery stores reveals a starkly different reality. For Iranians grappling with the economic fallout of crippling sanctions and the US naval blockade, the diplomatic thaw has yet to lower the cost of living.
Reza, a 42-year-old Tehran resident, told Al Jazeera that prices for daily staples like milk, cheese, cooking oil and flour remain unchanged. “They say the dollar dropped, but my shopping basket costs the same as last week,” he said. “This means the agreement hasn’t reached our pockets yet.”
From behind the cash register, 55-year-old shop owner Ramin echoed his customer’s frustration. He explained that while the government continues to distribute subsidised goods like bread, the fluctuations of the free-market dollar do not immediately impact basic food prices.
The value of the dollar on the free market varies from the official exchange rate.
Pointing to a shelf of imported goods, another shopkeeper named Karim noted that items like shampoo, toothpaste and laundry detergent are still locked at inflated prices.
“Distributors say they bought these goods two months ago at the old dollar rates,” Karim explained. “Prices will remain high until the old stock runs out and new goods enter at the lower exchange rates.” He estimated it would take at least two weeks for the market to adjust, meaning Iranians will continue to face compounding inflation in the interim.
While Main Street struggles, Tehran’s stock market is experiencing an unprecedented boom amid expectations of improved economic conditions. The trading floor has been awash in green since the initial leaks of the Washington-Tehran agreement emerged.
On Monday, the main index jumped by a record-breaking 161,000 points in a single session, marking the highest-ever influx of cash from individual investors.
By Tuesday, the market continued its staggering ascent, climbing another 112,000 points to cross the psychological barrier of 5 million, ultimately settling at a historic high of 5.1 million.
Saeed, a 40-year-old investor, called it a “historic day”. He noted that investors are rushing to buy shares in the energy and petrochemical sectors, betting heavily on the resumption of exports and the reopening of global markets.
However, Saeed remained cautiously optimistic. “The stock market is often driven by rumours,” he warned. “I don’t want to repeat the experience of the 2015 nuclear deal when the market soared and then collapsed after the US withdrawal.”
He was referring to US President Donald Trump’s 2018 withdrawal from the agreement, under which Iran agreed to restrictions on its nuclear programme in exchange for sanctions relief.
The wait-and-see approach in effect has paralysed other sectors of the economy. In central Tehran’s electronics hubs, 38-year-old shop owner Reza reported that while the prices of imported appliances have dropped in tandem with the dollar, sales have stalled because customers are holding out for steeper discounts.
A similar freeze has gripped the housing market. Nasrin, a 36-year-old real estate agent in northern Tehran, observed that a recent price surge that accompanied the initial truce has now given way to stagnation. Many property owners are clinging to inflated prices, seemingly unaware that the market dynamics have shifted, bringing property transactions to a virtual standstill.
For macroeconomic experts, the mixed market signals are entirely expected. Hossein Selahvarzi, the former head of the Iran Chamber of Commerce, Industries, Mines and Agriculture, cautioned that the new agreement is “not a magic wand” capable of instantly fixing years of structural issues in the economy.
While the war severely damaged Iran’s infrastructure, Selahvarzi emphasised that the roots of the country’s economic malaise were firmly planted well before the bombing began.
“War is the enemy of investment, production, trade and public welfare,” Selahvarzi told Al Jazeera. He warned against the analytical mistake of believing that a peace memorandum alone would revive the economy.
“Ending the military confrontation does not necessarily mean the beginning of economic prosperity,” he said, stressing that restoring stability to the business environment remains the country’s most urgent priority.
“What we have before us is a limited and fragile opportunity to correct course and rebuild the economy, and this opportunity could be lost quickly if not managed correctly.”
Published on •Updated
The Bank of England left its benchmark interest rate unchanged at 3.75% on Thursday, extending a pause that began in December 2025, as policymakers weighed the inflationary fallout from the Iran war against signs of resilience elsewhere in the economy.
Governor Andrew Bailey and fellow Monetary Policy Committee members were widely expected to keep rates on hold and maintain a broadly neutral stance on future policy moves.
The decision came a day after official figures showed UK inflation holding steady. Consumer prices rose 2.8% year-on-year in May, unchanged from April and below economists’ expectations of 3.0%, leaving the headline rate at its lowest level since early 2025.
However, the stable reading masked diverging trends beneath the surface. Transport costs accelerated sharply to 6.8%, driven by higher fuel prices and rising air fares, while food inflation eased to 2.2% and housing costs continued to moderate.
Though inflation remains above the bank’s target of 2%, the figure raised hopes that the upward pressure on prices emanating from the spike in oil and gas prices after the start of the Iran war on 28 February may have been less than anticipated.
Andrew Bailey, the bank’s governor, said the recent fall in oil prices has been “encouraging” while noting they are still higher than before the war.
“Whatever happens in the future, the higher energy prices of the past four months mean there’s already some inflationary pressure in the pipeline,” he said. “The Bank’s job is to make sure that doesn’t turn into sustained inflation above our 2% target.”
Analysts also cautioned that inflation could still accelerate later this year, as higher household energy bills feed through to prices. Lindsay James, investment strategist at Quilter, said: “Whilst inflation was below expectations in May and currently under 3%, it is still likely to jump closer to 4% later in the year due to the coming impact of a higher energy price cap.”
James added that while oil prices have retreated from recent highs, they remain above last year’s levels, suggesting underlying inflation pressures have not fully disappeared.
The decision to hold the key interest rate was not unanimous, with two of the nine Monetary Policy Committee members voting for a quarter-point rate increase, reflecting concerns that higher energy costs could still feed through into broader inflation pressures.
Thursday’s labour market release painted a mixed picture.
The unemployment rate dipped unexpectedly to 4.9% in the three months to April, down from 5.0% in the first quarter, yet payrolled employee numbers fell over the period, pointing to an underlying loss of momentum even as the headline jobless rate improved.
Wage growth, a metric the Bank of England watches closely for signs of persistent price pressure, held firm, with regular pay excluding bonuses rising 3.4% on the year.
“The labour market is still continuing to lose momentum, with the latest figures showing a further cooling,” stated Richard Carter, head of fixed interest research at Quilter Cheviot.
Sanjay Raja, chief UK economist at Deutsche Bank, struck a similar note, cautioning that “it’s clear that the labour market is not out of the woods yet,” though he added that the mixed data buys the committee more time to wait and see how the economy evolves.
The combination of cooling headline inflation, a softening jobs market and still-robust pay growth underscores the bind facing the committee. Strong earnings keep alive the risk of so-called second-round effects, where higher wages feed back into prices, even as hiring loses steam.
Published on
The era of Chair Warsh begins in earnest this Wednesday, as US President Donald Trump’s pick to run the Fed presides over his debut rate decision and steps before the cameras for his first press conference in the role.
Few economists anticipate dramatic action on day one, but the meeting carries unusual weight for what it might reveal about the months ahead.
Policymakers are expected to hold the benchmark rate steady at a target range of 3.50% to 3.75%, which would mark the fourth consecutive meeting without a move. The committee cut 25 basis points in December 2025.
The bigger question is the language, with officials potentially revising their post-meeting statement to drop any hint that the next step will be a reduction, signalling instead that rates may stay elevated for some time, or even rise should inflation prove sticky.
Warsh inherits a far less accommodating picture than the one he faced when he was widely seen as campaigning for the job last year.
At that time, he argued forcefully for lower rates, echoing US President Donald Trump’s demands, and pointed to AI as a force that could expand the economy’s productive capacity and tame prices over time.
Many economists doubted that thesis even then, noting that the surge of investment in semiconductors and computing equipment was adding to inflationary pressure rather than easing it.
Inflation has indeed accelerated since the outbreak of the Iran war in late February, climbing to a three-year high of 4.2%, driven largely by costlier petrol.
US President Donald Trump has announced a framework for a peace deal that could end the conflict, but it is unclear whether the truce will hold, and prices for fuel, groceries and airfares could take months to cool even if Middle Eastern oil flows freely again.
By the Fed’s preferred gauge, inflation has now run above its 2% target for more than five years. Hiring, meanwhile, has remained resilient.
May brought 172,000 new jobs, a third straight month of solid gains, removing much of the rationale for the two rate cuts the Fed had pencilled into its January projections.
Because the rate itself looks settled, attention turns to the Fed’s updated Summary of Economic Projections and its closely watched “dot plot”, the quarterly projection of future interest rates.
According to Bank of America economist Aditya Bhave, the new dot plot could show the Fed keeping rates on hold for the rest of 2026, with at least three of the committee’s 12 voting members potentially pencilling in rate hikes this year.
Communication is the other wildcard. Warsh has argued that the central bank should speak less often and keep a lower profile, on the view that publicly stated positions can trap policymakers into defending them well past their usefulness.
One option would be to thin out the calendar of press conferences, reverting to the every-other-meeting rhythm favoured by Ben Bernanke, who chaired the Fed from 2006 to 2014, when the format was introduced. Leaner guidance, however, risks unsettling markets long accustomed to clear direction.
Adding intrigue, predecessor Jerome Powell remains on the board as a governor, a seat he can hold until January 2028, and is expected to vote on Wednesday’s decision, denying the Trump administration an additional vacancy to fill.
Additional sources • AP
WASHINGTON — Ever since Kevin Warsh was nominated by President Trump in late January to lead the Federal Reserve, a question has lingered: Will he seek to raise interest rates to tame inflation or cut them as Trump has long demanded?
On Wednesday, Warsh may provide the first hints of an answer when he oversees his first Fed policy meeting as chair and holds a news conference afterward. Bond markets, which can swing sharply on a chair’s pronouncements, will be watching particularly closely for any signs of which way he leans.
“We expect the press conference to be pivotal,” Jonathan Pingle, an economist at investment bank UBS, wrote in a note. “This will be Kevin Warsh’s first public appearance as Chair. … We do not really know what his policy views are.”
Economists say Warsh will likely aim for a neutral approach, largely because he is taking over the Fed at a challenging time. Rising inflation has made it all but impossible for the Fed to cut interest rates anytime soon, which could stimulate growth and further raise prices. Hiring has improved noticeably since the beginning of the year, removing another key rationale for rate cuts. And the other 11 policymakers on the Fed’s rate-setting committee — including Warsh’s predecessor, former chair Jerome Powell — are split on whether an increase in the Fed’s key rate will be needed or if it can stay unchanged.
Oil prices have fallen sharply on news that the U.S. and Iran have reached an initial deal to end their war, which could eventually cool inflation. Yet it’s unclear whether a permanent agreement can be reached.
“The right thing to do now is wait and see,” said William English, an economist at the Yale School of Management and a former top Fed economist.
Inflation has jumped to a three-year high of 4.2%, the government said last week, mostly because of higher gas prices. Even Trump has backed off a bit from his relentless demands for lower rates, and instead has argued that rate hikes — which the Fed undertakes to cool the economy and slow inflation — aren’t necessary.
In an interview earlier this month on NBC’s “Meet the Press,” Trump said, “Kevin is fantastic and I want him to do whatever he wants,” but added, “there’s no reason to raise rates.”
On Wednesday, the Fed is widely expected to keep its key rate at about 3.6%, where it has remained since last December. When the Fed reduces its rate, over time it can lower other borrowing costs for things like mortgages, auto loans, and business loans.
Still, some changes are expected, which will disappoint those hoping for lower borrowing costs: The Fed is likely to drop language that suggests its next move will be a rate cut, and instead adopt wording that is more neutral. Several Fed policymakers in recent weeks have said that the Fed’s most likely next move is a hike, rather than a cut.
The central bank is also scheduled to release its quarterly economic projections, which include forecasts for how the Fed’s key rate will change over the next three years, on Wednesday. In March, those projections suggested the Fed would cut its rate once this year. Yet on Wednesday they will likely show no change in 2026, with maybe one or two cuts next year, economists say.
Warsh has criticized the projections for providing too much “forward guidance” to financial markets and leading Fed officials to stand by their forecasts for too long, even as the economy changes. Fed watchers will look closely to see if Warsh participates in the quarterly projections. If he doesn’t submit his own forecasts, it could be a sign he will seek to get rid of them entirely in the coming months.
Outside of policy, Warsh is expected to bring a different style to the Fed than Powell, according to people who’ve worked with him. He wants Fed policymakers to give fewer speeches, have more debates behind closed doors and will likely avoid commenting on the daily ups and downs of the economy. Powell was relatively plainspoken and straightforward, while Warsh has suggested he sees the famously oracular Alan Greenspan, the Fed’s chair from 1987 to 2005, as a model.
“He’s just going to say less, because he doesn’t find that stuff very helpful,” said Robert Tetlow, a former senior policy adviser at the Fed.
Randall Kroszner, an economist at the University of Chicago who served on the Fed’s governing board from 2006 to 2009, when Warsh was also a governor, said the new chair would likely focus on bigger-picture questions, such as how AI will impact the economy. He will avoid thornier issues, such as whether tariffs raise inflation, which Powell was willing to address.
By avoiding such hot-button issues, the Fed could attract less negative attention from the White House, Kroszner said.
“He’s going to stay away from those,” Kroszner added. “If the Fed is to maintain its independence, it needs to maintain its focus.”
While seeking Trump’s nomination, Warsh called for “regime change” at the Fed and criticized the central bank for not preventing the 2021-22 inflation surge, when prices jumped 9.1% in a year, the biggest spike in four decades.
Yet Kroszner said Warsh will likely to seek to build consensus around changing things like the Fed’s communications policies, rather than imposing them. So far, former Fed officials say he hasn’t sought to fire top staff.
“He’s not there to break things,” Kroszner said.
During his Senate confirmation hearing in April, Warsh said he would focus on quelling inflation.
“Inflation is a choice, and the Fed must take responsibility for it,” he said then.
If he acts on that sentiment by keeping rates unchanged — or even raising them — Trump could end up disappointed in another Fed chair. He often threatened to fire Powell, whom he also appointed, for not cutting rates deeply enough.
“There’s at least a risk here that six months down the road, Trump is fulminating about how he didn’t get what he wanted from Warsh, and he’d like to fire Warsh,” English said.
Rugaber writes for The Associated Press.
Published on
The central bank’s increase in the uncollateralised overnight rate, by a quarter of a percentage point from 0.75%, puts it at a three-decade high.
The Bank of Japan has been trying to normalise monetary policy lately after decades of keeping interest rates near or below zero. It adopted ultralow rates to try to encourage more borrowing and spending to counter deflation and pull the economy out of the doldrums.
Inflationary pressures because of the war in Iran, which has sent oil prices soaring in recent months, have hit Japan hard since it imports almost all its oil and gas.
Low interest rates had added to pressures on the Japanese yen, which has fallen lately to about 160 yen to the US dollar.
BOJ Gov. Kazuo Ueda, who has been hospitalised recently, did not attend Tuesday’s policy board meeting. Deputy Gov. Shinichi Uchida was expected to take his place at the news conference set for later in the day.
Before the BOJ decision, Tokyo’s benchmark Nikkei 225 index briefly topped 70,000 early Tuesday before giving up some of those early gains.
Additional sources • AP
The preliminary deal to end US-Israel war on Iran has sent oil prices tumbling to a three-month low amid hopes that the Strait of Hormuz will reopen.
But it could be months before American consumers see major relief at the petrol pump.
list of 3 itemsend of list
The closure of the strategic chokepoint disrupted global energy markets for more than three months, cutting off a major shipping route through which roughly one-fifth of the world’s oil and liquefied natural gas normally passes.
On Sunday, US President Donald Trump said prices would “drop like a rock” once the strait reopens, a claim he has made multiple times in the past few weeks.
However, experts caution that a major decline in prices is unlikely to happen as quickly as Trump suggests.
While Asian markets rely more heavily on oil shipped through the Strait of Hormuz than North American markets, tighter supply and steady demand have pushed prices higher worldwide.
On Monday, petrol prices in the US remained above $4 per gallon (3.78 litres), averaging $4.06 nationwide, according to the American Automobile Association (AAA). This was a dip from a high in early May of $4.48 per gallon.
By comparison, prices stood at $2.98 per gallon on February 28, when the US and Israel first struck Iran, triggering a ripple effect across global energy markets.
Energy prices have risen sharply in the US in recent months, increasing 7.7 percent over the last two months alone, and are up 40 percent from a year ago, according to last week’s inflation report from the Labor Department’s Bureau of Labor Statistics,
However, prices are beginning to fall, a dip that began as Washington and Tehran entered negotiations.
“The potential deal that the US and Iran agreed to over the weekend certainly could pave the way for even lower prices… in the next two to three days by what we saw over the weekend,” Patrick De Haan, head of petroleum analysis at GasBuddy, which tracks petrol prices, told Al Jazeera.
But De Haan expects a plateau and says that consumers may not see gas prices at pre-war levels until 2027, even if the ceasefire holds.
“It may take many months, if not beyond a year, for global oil inventories to recover to pre-war levels,” De Haan said.
Amid strains on the supply chain, producers will also need time to ramp up output, while port bottlenecks and heightened demand during the busy summer travel season could delay any substantial relief for everyday consumers.
“There are some mitigating factors that are going to slow the decline in prices. There are a lot of organisations and companies that have to re-up their stockpiles [like the US’s strategic petroleum reserve] and fulfil contracts that have been on hold for the last few months,” John Deal, managing director of capital markets at the Post Oak Group investment bank, said.
Fixing kinks in the supply chain takes time.
Oil production slumped amid the war. More than 14 million barrels per day, or 14 percent of the world’s demand, has been shut, according to the International Energy Agency.
Deal said it would take time to get oil production back online.
“My sense is that there’s going to be sustained high demand through the summertime, and we probably won’t get back to pre-war levels [on petrol prices] until after the summer, maybe September or October,” Deal said.
Mark Jones, a professor of political science at Rice University, said that producers might be reluctant to bring full operations back online until they can see the ceasefire hold.
The agreement opening the blockade is for a 60-day negotiation period between the two countries.
“Many [producers] may be reluctant to restart production until they are convinced that the peace will hold, because the last thing they want to do is carry out the costly effort to restart production only to see the conflict revived and then have to shut it down once again,” Jones told Al Jazeera.
Getting production back online is also dependent on the impact individual producers have faced throughout the war.
Refineries that were shut as a precaution could reach as much as 95 percent capacity within 40-60 days, Vitol Bahrain’s head of research, Bader Nooruddin, told the Reuters news agency. Those damaged in the fighting could take much longer.
But bottlenecks at ports could be the biggest hurdle, according to Deal.
“There’s a lag time with shipping capacity. Shipping capacity is perhaps the most significant constraint,” Deal said.
This is because there are more than 500 ships still awaiting passage, according to shipping data from Kpler.
With the ships headed all over the world, it will take them weeks to reach their destinations, dock, and unload at the ports.
That also means a wave of empty ships is waiting in limbo for spots at ports to load cargo and ramp back up to normal operations.
Major shipping giants are in a holding pattern.
Norway’s Wallenius Wilhelmsen and Denmark’s Maersk both told Reuters that they have not changed their Middle East operations in the wake of the announcement.
During the war, there was limited passage through the Strait of Hormuz, with an average of 10 ships a day passing through, compared with 135 that normally transit the waterway, according to an analysis by Bloomberg.
“Tankers take months to reach their final destination and then come back again. So the ability to replenish the stocks is going to take until, I think, the early fall, just from a shipping perspective, to get back to the status quo that was in place before the conflict started,” Jones said, referring to the preferred term for the months of September through November in North America.
At the same time, US strategic reserves are running low, at their lowest levels since 1983. Reserves have tumbled by 18 percent since the war began.
“Demand might keep prices high through the summer as strategic reserves get refilled,” Deal added.
Jet fuel demand will also put pressure on consumers amid the normally busy JuneAugust travel season in the US.
“The war has really affected airlines and their ability to schedule and anticipate how the summer months are going to go,” Deal added.
In April, United Airlines CEO Scott Kirby said that airfares for the carrier may have to jump as much as 20 percent on higher fuel prices.
The increase in prices is also hitting food budgets.
The most recent consumer price index report showed US inflation ticked up by 4.2 percent compared with this time last year. While inflationary pressures were mostly driven by fuel prices, the impact has still been felt at the grocery store.
Almost half of the world’s urea, which is used in fertiliser, is produced in the Gulf region and passes through the Strait of Hormuz. For American farmers, that means access to fertilisers for the next crop season is more expensive.
Tomato prices, already driven up by Trump’s tariffs on Mexico, have surged 40 percent in the last year amid rising transportation costs.
Lettuce prices rose by more than 16 percent in May, and the price of ground beef increased by about 12 percent compared with this time last year.
Jones warned that food prices may not go down.
“Many retailers, wholesalers, and producers will keep them where they are or only reduce them if forced to from a sales perspective. Unlike petrol, which tends to ebb and flow with the price of oil, prices for many other goods that have been adversely affected by all of this are much less likely to return to where they were prior to the start of the conflict,” Jones said.
“For groceries, for manufacturing goods, for anything that has gone up during the conflict, the price that is there now often becomes the new baseline from which prices move in the future.”
This can be compared with the COVID-19 pandemic period. When the pandemic stalled supply chains, producers increased prices. A 2024 investigation by the Federal Trade Commission found that retail grocers kept prices elevated after supply chain constraints brought on by the pandemic had eased.
“Some in the grocery retail industry seem to have used rising costs as an opportunity to further raise prices to increase their profits,” the report said.
The Washington institution cut its global growth forecast by 0.4 percentage points to 2.5 percent, citing surging energy prices, inflation and borrowing costs.
Published On 11 Jun 202611 Jun 2026
The conflict in the Middle East is set to bring global economic growth to its slowest since the COVID-19 pandemic, the World Bank has warned.
In its latest Global Economic Prospects report, published on Thursday, the Washington-based institution cut its global growth forecast for 2026 to 2.5 percent from the 2.9 percent it had predicted in January, citing surging energy prices, rising inflation and higher borrowing costs.
list of 3 itemsend of list
The report highlights the significant economic costs of the conflict, which is at risk of flaring up again, as the fragile ceasefire between the United States and Iran is tested on both sides.
The analysis warns that the outlook could decline further if supply disruptions worsen. Iran’s closure of the Strait of Hormuz – a vital passageway for oil and gas transit – in response to the hostilities launched by the US and Israel has put huge stress upon global energy and other supply chains.
The World Bank estimates that Brent crude prices — the international oil benchmark — will average $94 a barrel this year, 36 percent above last year’s average. Fertiliser prices are forecast to increase significantly this year, with knock-on effects for food prices.
Overall, the closure of the strategic waterway will help to push global inflation to 4 percent this year, a substantial increase from last year’s rate of 3.3 percent.
However, the World Bank cautions that global growth could plummet to as low as 1.3 percent this year, should energy supply disruptions worsen, with inflation pushing to 4.4 percent.
The World Bank report also cautions that developing countries are on the front line of the potential impact.
In its report, the institution has downgraded its growth forecasts for two-thirds of countries since January. Global growth is expected to improve to 2.8 percent in 2027, but will remain 0.4 percentage points below the average during the 2010s, during which the world economy was recovering from the global financial crisis.
Excluding China and India, the report worries that developing countries have made little progress towards narrowing their per capita income gap with wealthy nations over the past decade.
“Developing countries have faced a series of challenges over the last decade,” said Ajay Banga, president of the World Bank Group. “The impact differs by country, but the basic test is the same: protect people and preserve stability today, without giving up on growth and jobs tomorrow.”
The World Bank is pledging to assist any developing country experiencing the economic fallout of the Middle East conflict. The organisation says it has set aside up to $60bn to help. It added that if the conflict persists, it can increase its support to $100bn.
WASHINGTON — U.S. retaliatory strikes against Iran will continue after its forces shot down an American helicopter, President Trump said Wednesday, accusing the Islamic Republic of stringing him along over months of negotiations to end the war.
The prospect of a renewed U.S. air campaign cast fresh doubt on the viability of a ceasefire between the United States and Iran that has largely held since April, when the two sides reached a tenuous truce, pausing weeks of fighting. Trump’s decision to resume attacks comes after an exchange of fire between Israel and Iran threatened to spiral into open war over the weekend.
The administration has presented Trump with options to expand U.S. targets beyond the immediate area around the Strait of Hormuz to Iranian power plants across the country, an escalation that will open the president up to accusations he is targeting civilian infrastructure, according to a defense official familiar with the matter.
Speaking with reporters in the Oval Office, Trump encouraged the Iranians to accept a framework agreement negotiated between the two sides, and suggested that additional military action might compel Tehran to accept a final truce.
“We hit them hard yesterday, and we’re gonna hit ‘em again hard today,” Trump said. “And we’ll see what happens with the deal. We were really close to a deal, but they keep tapping us along — they keep playing us for suckers.”
The president’s remarks came a few hours after Trump posted on his social media website that Iran “will have to pay the price” for taking too long in negotiating a peace deal.
When pressed by reporters to elaborate, Trump said he meant that bombing would resume but declined to say whether that would include strikes on Iranian power plants and bridges, a threat he has repeatedly issued during the war.
The ongoing conflict, which is in its fourth month, has left a mark on the global and domestic economy. The U.S. Bureau of Labor Statistics reported Wednesday that inflation accelerated in May, driven by a surge in energy prices linked to the war with Iran.
The consumer price index rose 0.5% on a seasonally adjusted basis — the largest monthly increase in three years — pushing the annual inflation rate to 4.2%.
Asked whether he was concerned about the inflation numbers, Trump told reporters that the “numbers were great.”
“You know what I really love? I love the inflation. You know why? Because as soon as this war is over…,” Trump said, without finishing the thought.
The remark prompted near instantaneous news releases from Democratic operatives, as well as the party war room, which sent out a statement accusing Trump of mishandling a reckless war that has devastated the economy in the process.
“Donald Trump’s disastrous economic agenda and deadly and costly war with Iran have made life unbearable for millions of Americans,” Kendall Witmer, the Democratic National Committee’s rapid response director, said in a statement.
“Working families are shouldering skyrocketing costs for basic goods, with their wages being eaten up by Trump’s soaring inflation,” she added. “On the campaign trail, Trump promised to ‘defeat inflation,’ and to lower costs on ‘Day One,’ but two years later, Trump can’t get a handle on his war of choice with Iran as he tanks the economy back home.”
Trump then told reporters about a secret military mission to ensure safe passage for oil tankers through the Strait of Hormuz, one of the world’s most important commercial waterways. He said the operation had secured the passage of more than 100 million barrels of oil through the strait since it began.
“We took out, the other night, 22 ships late at night with no lights because they don’t have any radar because we blasted the crap out of it,” Trump said.
A couple of hours later, Trump wrote in another post that the military operation had been “wildly successful,” and that it proved the United States — not Iran — was in control of the Strait of Hormuz.
“Their military is defeated, and their economy is lost,” he wrote. “It’s over for Iran!”
Over months of diplomacy with Iran, Trump has sought to avoid a return to conflict, often seeking de-escalation when fighting has flared — and repeatedly pressuring Israel to minimize its attacks in Lebanon, where it continues to battle the militant group Hezbollah, a proxy of Iran.
Israeli strikes continued Wednesday, according to local news reports, while Hezbollah said it carried out attacks on Israeli troops stationed in southern Lebanon.
Speaking to journalists in the Oval Office, the president implied he was losing patience with Iranian tactics at the negotiating table.
“I gave them a break, at the request of Pakistan,” he said. “They still are working on trying them to do what’s right. But we want a deal that’s meaningful. We want a deal that works.”
“It was just tap, tap, tap,” the president added. “I don’t know what they’re doing.”
Asian stocks slide on hot inflation prints; tech rally crumbles on geopolitical flare-up
Source link
The USD-bolívar exchange rate has nearly doubled in 2026. (EFE)
Caracas, June 9, 2026 (venezuelanalysis.com) – Venezuela has registered the lowest month-to-month inflation figure since October 2024.
According to the Venezuelan Central Bank (BCV), consumer prices went up by 6.3 percent in May. Inflation has fallen for four consecutive months after hitting 32.6 percent in January, following the US military attack and kidnapping of President Nicolás Maduro.
Overall, prices have more than doubled in the first five months of 2026, and accumulated 12-month inflation currently stands at 525 percent.
Despite the widespread use of the US dollar in cost structures, prices have likewise gone up by 12.5 percent over the last year when measured in USD, meaning a loss of purchasing power even for those with incomes pegged to the official exchange rate.
Venezuela’s inflation remains heavily correlated with currency instability. Despite the Central Bank devaluing the USD-bolívar exchange rate by more than 30 percent since March and providing significantly increased volumes offoreign currency to the private sector, a 30-40 percent gap remains between the official and parallel market rates.
Since January, the BCV has directed over US $5.5 billion in foreign currency via bank-run exchange tables, at more than double the rate of 2025, according to figures from Banca y Negocios. However, the chasmbetween official and parallel rates has persisted.
Many economists have identified the stabilization of the foreign exchange market as a necessary step for macroeconomic recovery, but critics have pointed to a lack of regulation and accountability in forex allocation as fueling currency speculation.
Caracas’ monetary and fiscal policy is presently subject to US control. Since January, the Trump administration has mandated that Venezuelan export revenues, principally oil sales, be deposited in US Treasury accounts. Washington returns an undisclosed portion of the proceeds at a time of its choosing.
The White House has likewise imposed that disbursed funds be channeled directly to the private sector via foreign exchange auctions, as well as outside auditing of Central Bank accounts by consulting giant Deloitte. Secretary of State Marco Rubio indicated in January that the Venezuelan government headed by Acting President Delcy Rodríguez would need to submit a “budget request” before accessing its own resources.
For its part, the Rodríguez administration has fast-tracked a series of pro-business reforms tailored to attract foreign investment, including in the oil, mining, and electricity sectors.
As part of efforts to court US investors, Economic Vice President Calixto Ortega reportedly took part in a closed-door meeting with US officials and corporate representatives hosted by the Atlantic Council, a hawkish Washington-based think tank funded by the US government, its allies, and major corporations.
The opening to foreign investment has seen Western business executives flock to Caracas in recent weeks, often escorted by White House officials, to explore opportunities. Pro-Trump tech billionaires such as Fred Ehrsam have made repeated visits, while Peter Thiel’s Erebor Bank struck a corresponding banking agreement with Venezuela’s largest public bank.
Javier Kulesz, a strategist from investment bank Jefferies, relayed optimism after a visit to the South American country and forecast an imminent “stream of announcements” related to the country’s debt restructuring and investments in key economic sectors.
Edited by Lucas Koerner in Caracas.
Tehran, Iran – Iran is facing more energy constraints as its summer season begins, with the widespread use of air conditioning and other needs during hotter months contributing to an imbalance between supply and consumption.
For decades, successive Iranian governments have kept utility bills well below supply costs for households and offices through a mix of implicit oil-and-gas subsidies, administered tariffs, state-controlled pricing, and sometimes direct financial support.
The negative impacts of the war with Israel and the United States on the economy mean the government has fewer tools at its disposal to deal with an energy crisis this summer.
Despite having the world’s third-largest proven crude oil reserves, Iran will have to import fuel again as demand outpaces refinery output.
President Masoud Pezeshkian has repeatedly urged households and offices to take practical steps to limit energy consumption. Last week, he removed his jacket during a government meeting to demonstrate how Iranians can avoid turning down their air conditioning thermostats in their offices.
Even though energy costs for households are much lower than in other parts of the world, corruption, mismanagement, sanctions, chronic inflation and currency devaluation have eroded the benefits Iranians usually feel from subsidised energy prices.
In November 2019, the government announced a tiered gasoline price scheme that would see huge increases for some consumers. This sparked nationwide protests, and since then, the government has been wary about similar price hikes.
While inflation has galloped on, continued subsidies have kept fuel artificially low.
The administration’s attempts to tackle the subsidies burden due to a mounting budget crunch have resulted in only limited increases in petrol through a complex three-tiered pricing system.
This is applied via a government-issued fuel card, giving most users of Iranian-made vehicles access to 60 litres (15.85 US gallons) per month of subsidised petrol at 15,000 rials (0.8 cents) and another 100 litres (26.42 gallons) at 1.6 cents.
Iranians going over this amount then must use an “emergency card” issued at petrol stations, permitting them to an additional 30 litres (7.9 gallons) of fuel a day at 50,000 rials (about 2.9 cents) per litre.
After a new cap was imposed during the war to limit fuel consumption, each card allows only 30 litres of fuel a day. Petrol stations are issued their own “emergency card” for uses beyond this limit.
Due to supply constraints, staff at petrol stations have now reportedly been instructed to limit the use of these cards to 10 to 15 litres (up to 4 gallons) or asked not to issue any new cards at all to customers.
The Iranian government is running similar schemes for natural gas, electricity and urban water, with fears of social unrest making them averse to any sudden price hikes.
There appears to be little the government can do to bridge the divide between lower energy production and growing demand for subsidised fuel, illustrated by the perpetual queues at petrol stations since the start of the war.
“Reforming and increasing the price of energy is currently not feasible and logical due to the current economic conditions and social concerns,” Esmail Saghab Esfahani, a vice president of the state-linked Organization for Energy Optimization and Strategic Management, said earlier this week.
There have been some changes to pricing structures, but this is impacting small businesses that are already struggling with the dire economic conditions in Iran.
One 35-year-old owner of a welding workshop near Tehran, who asked to remain anonymous, told Al Jazeera that a surge in his monthly energy bill from 40 million rials ($23) per month in the previous Persian calendar year to three times that today.
“I went to the electricity company, and they only kept saying the tariffs have gone up,” he said.
“I had a similar message from a friend who is paying much more now for roughly the same usage as before, so it looks like we’re to pay for the cost of war.”
Authorities say that any complaints about escalating bills will be reviewed. They also have a system where normal household energy consumption is kept artificially low, but excessive users can be billed as much as 45 times the normal prices.
Despite having the second-largest proven natural gas reserves in the world, Iran still suffers from perpetual supply shortages during its winter and summer, when consumption is at its highest.
The situation has worsened during the war, with strikes on Iranian energy facilities seeing Iran’s gasoline production capacity drop marginally from 115 million litres (30.37 million gallons) per day to 110 million litres (29.06 million gallons). Meanwhile, consumption has jumped from 10 million litres (2.64 million litres) in 2025 to 140 million litres this year (36.98 million litres).
US President Donald Trump’s threats of more strikes on power plants have heightened fears of further blackouts and gas shortages this summer, meaning the energy crisis is likely to continue in the coming months.
Consumer prices in South Korea rose 3.1% in May from a year earlier, driven by sharp increases in petroleum products, international airfares and overseas group tour fees. Data from National Data Agency. Graphic by Asia Today and translated by UPI
June 2 (Asia Today) — South Korea’s consumer price growth topped 3% in May for the first time in 26 months as a prolonged Middle East war drove up global oil prices, raising concerns that high inflation could continue through the second half of the year.
The consumer price index stood at 119.92 in May, with 2020 set as the base year of 100, up 3.1% from a year earlier, according to consumer price data released Tuesday by the National Data Agency. It was the first increase of 3% or more since March 2024.
Industrial products rose 4.2% from a year earlier, while service prices increased 2.8%. Petroleum prices showed the sharpest increase, jumping 24.2%, the largest gain in three years and 10 months since July 2022, when the Russia-Ukraine war was at its height.
Gasoline prices rose 23.1%, diesel prices climbed 33.3% and kerosene prices increased 21.7%.
Among services, international airfares, which are directly affected by fuel costs, rose 33.5%, while overseas group tour fees increased 26.3%.
The living price index, which tracks frequently purchased items with a high share of household spending, rose 3.3% from a year earlier, showing a worsening burden felt by consumers.
Lee Doo-won, an official in charge of economic trend statistics at the data agency, said petroleum prices rose more sharply because of higher international oil prices caused by the Middle East war.
“International airfares and prices for travel and lodging-related items rose sharply as fuel surcharges linked to global oil prices increased and the number of peak-season days, including holidays, grew,” Lee said.
The government said it will work to reduce price uncertainty by stabilizing petroleum prices.
A Finance Ministry official said the government’s petroleum price cap and fuel tax cut reduced the May consumer price increase by 0.6 percentage point.
“We will make every effort to stabilize prices felt by households through petroleum price stabilization measures and a task force on livelihood prices,” the official said.
Experts said inflation led by higher global oil prices is likely to continue in the second half.
“Although the United States and Iran have announced plans to discuss reopening the Strait of Hormuz, the high oil price trend is likely to continue in the second half even if the war ends, given the destruction of local oil facilities,” said Jeong Se-eun, an economics professor at Chungnam National University.
“For South Korea, which imports all of its oil, oil prices affect overall inflation. There is also concern that abnormal weather forecast for this summer could raise agricultural prices,” Jeong said.
“With no notable downward factor in the second half, inflation is expected to stay around 3%,” she added.
Park Jin, a professor at the Korea Development Institute School of Public Policy and Management, said prices are determined by market supply and demand.
“On the supply side, there are inflation concerns caused by unstable oil prices. On the demand side, there are price-increase factors such as a strong domestic stock market,” Park said. “Preemptive steps, including consideration of an interest rate hike, are needed.”
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260602010000704
ANOTHER UK airport has increased its drop-off fees in a move that has been slammed by passengers.
Dropping someone off at an airport can be pricey – and poses a risk of a hefty fine if you forget to pay the charge.
With many major UK airports hiking the price of their drop-off fees in recent months, Norwich Airport has now done the same.
The East Anglian travel hub operates flights to dozens of locations across the UK and Europe.
With airlines such as Ryanair, KLM, TUI and more in operation at the Norfolk airport, the hub sees thousands of passengers a week.
On June 1, the charge for drivers dropping travellers off was increased from £6 for a 30-minute stay, to £8 for just 20 minutes.
Now, the fee change is being criticised, with passengers and drivers calling it “disgusting” and “mad”.
Meanwhile, taxi operators are being forced to warn customers that the charge will be part of their cab bill when rides are booked.
Mark Streeter, boss of Norwich’s Courtesy Taxis, told Norwich Evening News: “The main annoyance from our side is that we tell customers it’s an extra £5 or so, and now it’s gone up with no warning. So either the customer or the driver has to pay more than expected.”
Norwich Airport has responded to explain that the drop-off fee increase is a result of growing business costs and worsening energy prices.
A spokesperson for Norwich Airport told The Sun: “We understand that no one welcomes increased charges. But our airport group is facing sharp rises in costs, including a tripling of business rates, higher employment costs such as National Insurance and rising energy costs.”
Admitting that there is no choice but to rely on the public to absorb some of the growing costs, the spokesperson added: “At the same time, we continue to invest millions of pounds in maintaining the airport infrastructure needed to provide an essential public service in our regions.
“We cannot keep absorbing these increased costs without passing some of the additional burden on to our customers.”
Norwich’s change in drop-off policy comes alongside Stansted Airport‘s similar changes.
The London airport took its 15-minute express drop-off charge from £7 to £10 in March, with stays of up to 30 minutes now costing £28 instead of £25.
Meanwhile, London Gatwick‘s fee for a 10-minute drop-off now costs £10, up £5 from when it was first introduced in 2021.
Surging bank lending could rekindle inflation risks, SocGen's Albert Edwards warns
Source link
naphtalina/iStock via Getty Images
Wall Street closed the week higher as easing Middle East tensions, softer-than-expected inflation data, and strong corporate earnings boosted investor sentiment.
Investor sentiment improved after President Donald Trump said a framework to end the conflict with Iran and restore shipping
Eid al-Adha, one of the most important dates in the Islamic calendar, comes at a critical time for Iranians this year.
Meat from sacrificed animals is often eaten at Iranian tables, but a blockade on Iranian ports and sanctions by the US has led to escalating costs across the country.
Unlike Nowruz, the Persian New Year, Eid al-Adha is not as widely celebrated in Iran, but mosques and other institutions still observe the ritual of animal sacrifice, known as qurbani, through authorised livestock and slaughter centres.
Here, animals are sacrificed according to Islamic law in a hygienic environment. But another goal of the network is to control runaway inflation by offering meat at lower prices than market rates.
A Tehran municipality body announced on Tuesday that each kilogramme of sacrificial meat would be sold at 7.4 million rials ($4.30) at designated shops.
The price for a similar cut on the market can be more than three times that, depending on its quality and the location of the butchers. The minimum wage is currently less than $100 per month in Iran.
“I usually buy meat for a stew or a few dishes around every three weeks; for some families in the neighbourhood, it has become a sort of luxury,” said a middle-aged woman, who lives with her husband and son in Tehran.
She told Al Jazeera that chicken, eggs and legumes have become replacements for red meat, but the costs of these staples have significantly increased, too.
Masoud Rasouli, a meat-packing industry representative, told the state-linked Mehr news agency earlier this week that demand for red meat has decreased by 50 percent compared with last year.
He said some meat was imported to counter any effects of the US blockade, but local demand is currently so low that “existing livestock population is enough for all the needs of the market”.
Data released by the state-linked Iranian Labour News Agency this week showed that the current cheapest government-announced price for one kilogramme of meat during Eid is equal to the price of a 50kg live sheep 10 years ago.
According to the Statistical Center of Iran, year-on-year inflation stood at more than 73 percent in the first month of the Persian calendar year that ended in late April.
Iranian rice was up by 173 percent and chicken by 191 percent in that month compared with a year before, while liquid cooking oil more than quadrupled. Figures for the next month are expected to be worse.
Price-control measures – which have been implemented by authorities to fight a decade of rampant inflation – have been unable to adequately compensate for the ever-decreasing purchasing power of Iranian households living under local mismanagement and US sanctions – and now war and a blockade.
A young man working at a butcher shop in southwestern Tehran said they have had to increase prices several times over recent months after suppliers announced hikes.
“Our sales were a bit higher today because of the Eid, but we see even our most frequent customers far less these days. Most of the conversations with the customers are about the prices,” he told Al Jazeera.
Iran and the US have been holding negotiations through regional mediators to potentially end the war. But amid exchanges of fire and inflexibility over demands, no breakthrough has emerged even as both sides say a memorandum of understanding has mostly been negotiated.
Beyond greetings and congratulatory phone calls with regional peers, Iranian authorities also used the Muslim festival this year to issue political messages.
On Wednesday morning in the capital, the authorities organised a large prayer to mark Eid at the University of Tehran, which was led by ultraconservative Ayatollah Ahmad Khatami.
He said that “submitting to humiliation” is an example of “evil” and the height of vice, at a time when he believes the other side, the US, seeks a surrender from Iran.
“Your enemies, the Iranian nation’s enemies, and this mad enemy sitting in the Black House – which is wrongly referred to as the White House – want your humiliation. But this madman will take that wish to his grave,” he said about US President Donald Trump.
Khatami, a member of the powerful Guardian Council and the clerical Assembly of Experts, also praised the supporters of the government who have taken to the streets every night for almost three months and said this “unprecedented” phenomenon would be repeated on the nights of Eid al-Adha.
President Masoud Pezeshkian had a relatively softer approach, but his comments were still laden with religious symbolism.
“In today’s turbulent world, where the fire of tyranny, occupation, and the arrogance of the hegemonic powers burns bright, Eid al-Adha conveys the message of dignity, liberty, and fearlessness in the face of the pharaohs of our time,” he said.
Foreign Minister Abbas Araghchi said in a message on Wednesday that he hoped for harmony in the Muslim world, amid this difficult time for the region.
“We pray that, by the auspiciousness and blessing of this great Eid, we will witness the deepening and strengthening of Islamic solidarity for cooperation and mutual assistance in confronting war, discrimination and occupation, especially in the West Asia region, and that our world will return to the path of reviving peace and justice,” he said.
faithiecannoise/iStock via Getty Images
Australia’s annual consumer price inflation slowed more sharply than anticipated in April, cooling to 4.2% from March’s 4.6% print and beating market expectations for a milder drop to 4.4%.
According to data released by the Australian Bureau of Statistics, the headline
MILLIONS of families will be able to enjoy discount meals and days out this summer, the Chancellor announced today.
From June 25 to September 1 the Government is temporarily cutting the VAT on attractions and children’s meals in restaurants from 20% to just 5%.
The cut will apply to theme parks, zoos, museums, soft play, fairs and even cinema tickets.
The full list of businesses participating has not yet been announced but several major firms including Merlin Entertainments and Odeon Cinema have confirmed they will be taking part.
If a business chooses to pass on the full benefit then the total saving for a family of two adults and two children could be:
Read more on free days out
The Government said it expects qualifying businesses to pass these savings on to families by lowering the prices people pay on eligible children’s meals and tickets.
As a result, the VAT cut will be directly reflected at the till.
It added that passing on the full saving should help businesses attract more customers over the summer, which could increase footfall and support local economies.
The reduced rate will apply in England, Wales, Scotland and Northern Ireland.
The plans are part of a package to help households with the cost of living.
Meanwhile, throughout August all children aged between five and 15 in England will be able to travel for free on any local bus service.
Among the attractions taking part are Alton Towers, Legoland Windsor, Warwick Castle and Cadbury World.
Fiona Eastwood, chief executive officer of Merlin Entertainments, said: “Merlin will be applying this VAT cut to both admission tickets and children’s meals, adding more value to days out and short breaks at our 20 UK attractions.”
Meanwhile, Mark Way, president AMC Europe & managing director at Odeon Cinema Groups, said: “We’re excited that our guests will be able to enjoy the big screen for less over this blockbuster summer.”
The following activities and meals will benefit from the VAT cut:
The reduced rate applies to admission tickets, including adults, for:
But there are several attractions and popular activities that will not be included in the scheme. They include:
The European Commission on Thursday cut its 2026 growth forecast for the European economy, as the ongoing conflict in the Middle East drives energy prices sharply higher.
The EU economy is now expected to grow by just 1.1% in 2026, down from the 1.4% projected in the Commission’s autumn forecast. The eurozone outlook was revised down further to 0.9%.
In its report, the Commission warned that disruption to global energy markets — caused by escalating tensions around the Strait of Hormuz, one of the world’s key oil and gas shipping routes — has significantly worsened Europe’s economic outlook.
“Before the end of February 2026, the EU economy was expected to continue expanding at a moderate pace, alongside a further decline in inflation,” the report said. “However, the outlook has changed substantially since the outbreak of the conflict.”
Inflation is also expected to rise sharply due to the disruption around Hormuz.
EU inflation is forecast to reach 3.1% this year — a full percentage point higher than previously expected — driven mainly by soaring energy costs after oil and gas prices surged amid fears of supply disruptions in the Gulf.
For EU officials, the shock recalls 2022, when Russia’s invasion of Ukraine triggered Europe’s worst energy crisis in decades.
The Commission described the latest turmoil as “the second such shock in less than five years”, warning that Europe’s dependence on imported fossil fuels leaves it highly vulnerable whenever geopolitical tensions threaten global energy supplies.
Consumer confidence has already fallen to a 40-month low, according to the forecast, as households prepare for higher heating and fuel bills while businesses face rising operating costs and weaker demand.
Investment is also expected to slow as companies confront tighter financing conditions and growing uncertainty. Export growth is weakening as global demand softens.
Despite the deteriorating outlook, Brussels said the bloc is better prepared than during the Ukraine-related energy crisis, thanks to years of investment in renewable energy, lower gas consumption and efforts to diversify away from Russian supplies.
“The push towards supply diversification, decarbonisation and lower energy consumption has left the EU economy better placed to absorb today’s shock,” the Commission said.
However, EU officials acknowledged that risks remain heavily skewed to the downside.
The report warned that prolonged disruption in the Strait of Hormuz or across wider Middle Eastern supply chains could drive energy prices even higher, derail the expected easing of inflation in 2027 and potentially stall Europe’s recovery altogether.
The Commission also cautioned that shortages of refined oil products, fertilisers and other industrial inputs could spread through global supply chains, increasing food and manufacturing costs across Europe.
Meanwhile, European governments are preparing for growing fiscal pressure. Public deficits across the EU are expected to widen as governments increase spending to protect households from rising energy bills while also boosting defence expenditure amid mounting geopolitical instability.
Italian Prime Minister Giorgia Meloni has recently urged the European Commission to relax fiscal rules for households and industries struggling with soaring energy costs, arguing that energy security should be treated with the same urgency as defence spending.
At the centre of Rome’s request is the EU’s national escape clause, adopted on 8 July, which allows member states temporary fiscal flexibility to increase defence spending under exceptional circumstances.
Meloni said Brussels had already shown a willingness to loosen budget rules in response to Russia’s war in Ukraine and growing concerns about Europe’s military preparedness. Italy is now seeking similar flexibility for emergency energy measures.
