Prices

IF you’re looking for an all-inclusive, sunny week away with a price tag that feels like a typo, we’ve got you covered.

Egypt has seen a fall in tourism due to the Iran war – despite it not being affected by the conflict.

In response, tour operators are dropping prices of all-inclusive holidays – with some savings racking up to over £2,000.

Egypt is a top pick when it comes to budget-friendly holidays, offering high-end feel hotels with private beaches for very affordable prices.

Despite the rock bottom prices, these deals feature everything from sprawling resorts with 31-slide water parks, to romantic hotels where you can snorkel tropical waters or dine under the stars.

These resorts prove you don’t need to fork out the cash for an all inclusive week away.

Read more on Egypt holidays

SHEIKH OFF

Egypt holiday resorts drop prices with mega cheap deals as Brits avoid it

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So whether you want to bag a last-minute break for June or secure some winter sun while the prices are low, here are the hottest Egypt holiday deals to book now.

New Badawia Resort, Sharm el Sheikh

This resort in Sharm el Sheikh is an ideal spot to soak up the Egyptian sun, with a vibrant strip of bars and restaurants on your doorstep.

Here there’s a sprawling outdoor pool area, complete with a separate section for children and a sun terrace lined with loungers to top up your tan.

There’s activities from table tennis to traditional live evening entertainment, and with the all-inclusive package covering your buffet meals and local drinks, you can leave your wallet in the room.

Loveholidays offer a week-long all-inclusive stay from November 30, including return flights from London Gatwick, for £289pp.

Tivoli Hotel Aqua Park, Sharm el Sheikh

This luxurious four-star stay in Sharm has two huge pools dotted with parasols and loungers, giving you plenty of spots to sunbathe.

When it comes to things to do, kids can make a splash in the aqua park or try out archery, whilst adults will enjoy a pamper at the on-site spa and relaxing yoga classes.

Nearby you can enjoy the nightlife of Naama Bay, or stroll the quaint streets of the Sharm Old Market and Sharm Old Town.

Loveholidays offer a week’s all-inclusive stay from June 11, including return flights from London Luton, for £409pp.

Empire Beach Aqua Park, Hurghada

The vibrant, palm-lined terraces of Empire Aqua Park make a stay at this sprawling resort feel like a tropical island escape.

There’s plenty to keep everyone entertained, including an action-packed kids club and all-singing, all-dancing evening entertainment program.

This resort has three outdoor pools and also boasts its own private beach, where you can try beach volleyball, diving or simply lay back and relax.

Loveholidays offer a seven night all-inclusive stay from December 5, including return flights from London Luton, for £379pp.

Falcon Hills, Sharm el Sheikh

With its whitewashed walls, blue decor and bursts of pink bougainvillea, this charming hotel feels like a slice of the Greek islands dropped onto the coast of the Red Sea.

This family-friendly spot is in the El Hadaba district, a calmer area of Sharm, perfect for those who want a laid-back holiday feel.

Fill up on a varied buffet breakfast in the morning before securing a spot on a lounger by one of two pools, whilst kids are kept busy in the kids club.

Rooms are spacious and traditionally-decorated, some of which open straight out to the sun terrace, so you’re only steps away from the pool.

On the Beach offer a seven night all-inclusive stay from October 31, including return flights from London Gatwick, for £455pp.

Lemon & Soul Makadi Garden, Makadi Bay

The Instagrammable Lemon & Soul Makadi Garden is a stylish pick on the crystal-clear coast of Makadi Bay.

Here there’s plenty of bright, citrus-y yellow, orange and lime-coloured decor that makes the resort feel fresh and modern.

Order some all-inclusive cocktails from the beach hut on the hotel’s stretch of private sand, or try snorkelling in its waters to spot tropical species.

On the Beach offer a seven-night all inclusive stay from June 3, including return flights from Birmingham, for £460pp.

Parrotel Lagoon Resort, Nabq Bay

This mega family resort has a pool so huge that its got its own island bar in the middle of it.

There’s also a huge on-site water park with 31 slides to keep kids entertained, plus a heated pool and wave pool.

For food and drink, there’s three main restaurants as well as several snack bars and even a piano bar, where you can unwind with a drink in-hand and listen to live music.

On the Beach offer a seven night all-inclusive stay from June 11, including return flights from London Luton, for £495pp.

JAZ Neo Sharks Bay

The affordable yet glamorous JAZ Neo Sharks Bay is highly-rated across review sites, and it’s clear to see why.

Inside you’ll find sleek gold, bronze and cream-coloured lounging areas, hanging lanterns and spiral staircases. Rooms are just as stylish, with deep-red, velvet details.

The hotel even puts out romantic tables for two beside the glowing pool at night, where you can dine together under the stars.

This four-star spot even has its own private, parasol-lined beach where you can soak up the sun or make a splash in the Red Sea.

Set yourself up on a poolside lounger for the day, or if you’re feeling active you can grab a workout in the fitness centre.

On the Beach offer a week’s all-inclusive stay from June 11, including return flights from London Luton, for £480pp.

Prices correct at the time of publication.

Round-trip train tickets brought down to $98 from $150, and bus fares to cost $20 instead of $80, state officials say.

Local governments in New Jersey and New York have reduced the cost of train and bus tickets for commuters travelling to the states’ joint World Cup venue during the tournament.

New Jersey Transit train tickets to the MetLife Stadium, renamed New Jersey New York Stadium for the FIFA World Cup, will now cost $98 as opposed to the earlier price set at $150 for a return fare, New Jersey Governor Mikie Sherrill announced on Wednesday.

“Ahead of NJ Transit World Cup train tickets going on sale tonight, NJTRANSIT is lowering ticket prices to $98 without New Jersey taxpayer money,” Sherrill wrote in a social media post.

The move followed intense backlash from local and international football fans planning to attend World Cup games at the stadium in East Rutherford, New Jersey, where the tournament’s final will be held on July 19.

The $98 fare, which will be charged during the World Cup matches hosted in New Jersey, is still significantly higher than the regular fare of $13 for the 29km (18-mile) round trip from New York City’s Penn Station.

When the $150 fare was announced, Sherrill defended it by suggesting the upcharge was necessary to ensure that her state’s commuters were not stuck with a “tab for years to come” for hosting the World Cup on its return to the United States for the first time since 1994.

NJ Transit officials said it would cost $62m to transport fans to and from the stadium over the duration of the tournament and outside grants had defrayed only $14m of those anticipated expenses.

“This isn’t price gouging,” NJ Transit President and CEO Kris Kolluri said last month. “We’re literally trying to recoup our costs.”

Meanwhile, the cost of taking a shuttle bus from New York City to the World Cup venue has also been reduced.

“The cost of shuttle bus tickets to and from matches will be reduced from the initial $80 round-trip price to $20,” New York Governor Kathy Hochul announced on the same Wednesday.

The move from the NYNJ Host Committee offers some respite for fans who would have already spent thousands of dollars on attending a World Cup game, largely due to the exorbitant match ticket prices, international and local airfares, and visa costs.

The host city officials said 20 percent of bus tickets for each match will be reserved exclusively for New York state residents. The remaining tickets will be available for all match-going fans.

The US is cohosting the tournament with Mexico and Canada. It begins on June 11.

Industry leaders have not ruled out fuel shortages this summer

Airlines will not be able to continue “absorbing the cost” of disruption caused by the closure of the Strait of Hormuz in the long term, according to the director general of the International Air Transport Association. Willie Walsh told the BBC there was no need to panic over potential jet fuel shortages, but warned rising fuel prices would inevitably feed through into higher ticket prices.

He said: “There’s just no way airlines can absorb the additional costs they’re experiencing. There may be some instances where airlines will discount to stimulate some traffic flow… but over time it’s inevitable that the high price of oil will be reflected in higher ticket prices.”

While Mr Walsh did not think there would be widespread cancellations, he added: “I think the concern will be that if sufficient alternative supply isn’t sourced, there may be some shortages when we get into the peak summer period.”

Last week, British Airways’ parent company IAG warned its profits will be hit as it expects to spend about two billion euro (£1.72 billion) more than planned on fuel this year. Chief executive Luis Gallego said IAG does not believe there will be “any interruption for the summer” in terms of jet fuel supplies.

Earlier this month, Transport Secretary Heidi Alexander said summer holiday plans will not face major disruption because of shortages. She revealed that more fuel has been imported from America, and UK refineries have upped their production.

The Government has also introduced a temporary rule change allowing airlines to group passengers from different flights together onto fewer planes to save fuel. It comes amid data that showed airlines have increased the number of flight cancellations for May.

Aviation analytics company Cirium said that as of Tuesday, airlines have axed 296 departures from UK airports this month, equivalent to 0.75% of the total. That is up from 120 cancellations six days ago.

Figures for the peak summer months show week-on-week schedule reductions are currently limited. The number of outbound flights planned for June is 48 lower than a week ago, after 0.2% of flights were cancelled.

For July the week-on-week reduction is 31, while the figure for August is just four. Airlines avoid being liable for compensation if they axe a flight with at least two weeks’ notice, meaning they can delay decisions on summer cancellations and still avoid payouts.

The price of jet fuel has more than doubled since the start of the war in the Middle East, as Iran continues to have a stranglehold on tankers passing through the Strait of Hormuz. A Government spokesperson said: “UK airlines are clear that they are not currently seeing a shortage of jet fuel.

“Aviation fuel is typically bought in advance and airports and suppliers keep stocks of bunkered fuel to support their resilience. We continue to work with fuel suppliers, airports, airlines and international counterparts to keep flights operating.

“We are also consulting on measures to help airlines plan realistic flight schedules which will avoid last-minute disruption and protect holidays.”

easyJet boss has hit out at a new rule expected to come into force

Passengers flying within Europe could soon see a significant shift in baggage rules, and travellers are being put on notice.

At present, those travelling on basic fares with easyJet, as well as with Ryanair, are restricted to one small personal item, with any extra luggage attracting additional fees. Following changes to EU regulations, Ryanair was required to enlarge the maximum dimensions of its personal bags last year. The revised rules permit passengers to carry hand luggage measuring up to 40 x 30 x 20cm, a 20% boost from the former 40 x 20 x 25cm restriction.

easyJet’s personal bag specifications already complied with these requirements, meaning no adjustment was necessary. And now further EU regulatory shifts could enable travellers to bring both a cabin bag measuring up to 100cm and a personal bag without incurring additional charges.

In February, the European Parliament voted overwhelmingly to grant all passengers the entitlement to carry a small case in addition to the complimentary under-seat bags currently allowed. The Parliament’s proposal would give passengers the right to bring on board, at no extra charge, one personal item (such as a handbag, rucksack or laptop) and one small piece of hand luggage with maximum combined dimensions of 100cm (length, width and height) and weighing up to seven kilos.

The proposed reforms, which must receive approval from the European Council before becoming law, would apply to all travellers flying to or from an EU airport on an EU-based airline. This directly affects the overwhelming majority of short-haul flights departing from the UK.

While this may seem like a positive development for passengers, easyJet has slammed the proposals to enforce free additional baggage as a “lunatic idea”. Chief executive Kenton Jarvis insisted that granting all passengers the right to extra free carry-on luggage would be “crazy” and “terrible for the consumer”.

The easyJet boss described it as “politicians completely not understanding their subject and getting involved with things they shouldn’t”, adding: “There just isn’t the space in the cabin, so that’s another lunatic idea. We would go back to the days of having to offload cabin bags and put them in the hold – it was one of the number one causes of delayed boarding in the old days.”

Baggage fees accounted for a significant portion of easyJet’s more than £2.5bn in annual income from extras, or ancillary revenue, “and that would have to be passed on” through increased fares for all passengers, he warned.

May 12 (UPI) — Prices for consumer goods rose faster than expected in April, with food and energy prices driving the spike, the Bureau of Labor Statistics said Tuesday.

The Consumer Price Index for All Urban Consumers increased 0.6% on a seasonally adjusted basis in April, after rising 0.9% in March, the BLS said. Over the past 12 months, the all-items index increased 3.8% before seasonal adjustment.

The energy index rose 3.8% in April, which was more than 40% of the increase. That put the 12-month rise at 17.9%. The gasoline index rose 28.4% annually.

Airline fares rose 2.8%, making the 12-month rise at 20.7%, CNBC reported.

Food prices rose 0.5% for the month. The price of food at home rose 0.7%, which is the biggest monthly rise since August 2022, CNBC reported. The price for food away from home increased 0.2%, the BLS said.

When excluding energy and food, prices rose 0.4% in April. Those prices are calculated from household furnishings and operations, airline fares, personal care, apparel and education. That number puts inflation higher than the 2% goal set by the Federal Reserve, with the monthly rate at its highest since January 2025.

But the index for new vehicles, communication and medical care decreased in April. New vehicles and communication declined 0.2%, while medical care declined 0.1%. Used vehicle prices stayed flat.

Workers are feeling the pinch, too, as real average hourly wages dropped 0.5% for the month and 0.3% annually.

“Inflation is the key drag on the U.S. economy now,” said Heather Long, chief economist at Navy Federal Credit Union, CNBC reported. “This is hurting Americans. There is a real financial squeeze underway. For the first time in three years, inflation is eating up all wage gains. This is a setback for middle-class and lower-income households and they know it.”

Whether the Fed will lower interest rates in the wake of rising inflation is a concern for economists.

“Given that inflation is heading in the wrong direction and the labor market is holding up, it’s very unlikely that the Fed will be able to lower interest rates any time soon, and it’s possible that we may start pricing in rate hikes for next year,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management, CNBC reported.

PORTLAND, Ore. — Appealing to voters’ anxieties about the soaring cost of living is central to Democrats’ messaging in their hopes of big wins in this year’s midterm elections. In Oregon, a question on the primary ballot is complicating that strategy.

The Democratic-controlled Legislature raised the state gas tax and a range of fees last fall as a way to pay for road improvements and plug a hole in the state’s transportation budget. Republicans responded with a petition to repeal the increases, leading to a referendum that will land before voters just as the Iran war is causing the price of gas to skyrocket around the United States.

“It is a hell of a time to be raising gas taxes on people,” said Jeanine Holly, filling up her tank on a recent morning in Portland.

The gas tax repeal on the state’s May 19 primary ballot comes amid widespread disruptions in the oil industry from the war with Iran started by Israel and President Trump. Discontent is high among U.S. consumers across the political spectrum, with the price of gas topping $4.50 a gallon nationally on Friday and averaging about 80 cents more per gallon in Oregon.

The referendum will give voters a chance to weigh in on a hot-button issue hitting them directly in the pocketbook at a time when prices remain elevated for everything from housing to groceries. Nationally, Democrats have focused on the affordability concerns similar to those that helped propel Trump to victory in 2024. Some of their candidates have even proposed ways to cut taxes as a way to promote their agenda and counter a traditional GOP strategy.

“It’s difficult to imagine a worse situation for … a gas tax increase than right now in American politics,” said Chris Koski, professor of political science and environmental studies at Portland’s Reed College.

Republicans sense an opportunity

Republicans wasted no time in appealing to voters after the Legislature and Democratic governor signed off on the tax increase, which also included a higher payroll tax for transit projects and a boost in vehicle registration and title fees.

They needed 78,000 voter signatures to qualify the referendum for the ballot. They quickly got 250,000.

“That is a remarkable number,” Republican strategist Rebecca Tweed said.

Republicans in Oregon have countered Democrats’ affordability messaging by portraying the tax and fee increases as further fueling the high cost of living.

“Do Oregonians want to pay more? The answer is no,” said GOP state Sen. Bruce Starr, who helped lead the referendum campaign. “Everything they’re looking at is expensive.”

Under the legislation, Oregon’s gas tax would rise from 40 cents to 46 cents a gallon. That would make it tied with Maryland for the eighth-highest gas tax of any state when factoring in other state taxes and fees, according to figures from the U.S. Energy Information Administration.

At the Portland gas station, Michael Burch said he used to spend $70 to fill three-quarters of his pickup truck’s tank, but now pays $80 for just over half a tank.

“I’m sick and tired of taxes,” the 76-year-old retiree said. “Gas is certainly dampening the spirits and the coffers of folks that aren’t as well off.”

Hannah Coe, a 30-year-old student, said she was not sure how she would vote on the primary ballot referendum.

“I think I would be in favor of it if it was going to go to the things that it was saying it was going to go to, such as fixing our roads,” she said. “I also kind of feel like that’s just a grab at trying to get more money from the people who live here.”

Democrats blame the Iran war

Oregon Democrats spent much of last year fighting to pass a transportation funding bill to help raise money for services such as road paving and snow plowing. The debate came amid projections of declining gas tax revenue as more people adopt electric, hybrid and fuel-efficient cars.

They finally passed a narrower version of their plan during a special session called by Gov. Tina Kotek.

She recently acknowledged the challenging timing of the referendum.

“Certainly, the conversation at the ballot this year … is a tough sell right now, because I think everyone is feeling a pinch on their household budgets,” she told reporters.

But she and other Democrats said the root cause of the jump in gas prices is Trump’s decision to go to war with Iran. She suggested the federal government consider reducing the federal 18-cent-a-gallon gas tax if it wants to provide relief at the pump for Americans.

Some Oregonians are receptive to the Democrats’ reason for passing the legislation last year. Kurt Borneman, 68, said he would support the gas tax increase, even though he’s now paying at least $10 more to fill up his tank.

“I realize that money’s tight and roads need to be improved,” he said at the Portland gas station. “I want less government, but I also want nice roads.”

Democratic state Rep. Paul Evans said his party lost the battle over how to frame the gas tax increase to the public. So far, there has been no organized effort from Democrats and their allies to oppose the ballot referendum.

“When anything is reduced to, ‘Do you want a tax or not?’ Most people are going to say no,” he said. “The messaging got away from us, and it became focused upon the price instead of the value.”

Rush writes for the Associated Press.

Senator Hawley plans legislative action supporting President Trump’s bid to waive the petrol tax amid rising consumer costs.

United States President Donald Trump said he will cut the 18-cent federal tax on petrol to offset surging prices that have continued to soar after his comments that the US ceasefire with Iran is on “life support”.

On Monday, Trump said he would suspend the petrol tax, but did not specify an end date.

“Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in,” Trump told CBS News.

Trump later told reporters that he would waive the tax, which generates $2.5bn in funds used for US roadway infrastructure, “till it’s appropriate”.

The US administration hinted at the idea on Sunday, when US Energy Secretary Chris Wright told the NBC News programme Meet the Press that the White House was considering suspending the tax.

While the Republican president claimed he would waive the tax, that is not within the White House’s authority. Suspending a federal tax requires an act of the US Congress.

However, key Trump ally Senator Josh Hawley, a Republican from Missouri, said on the social media platform X that he would introduce legislation on Monday to do that.

In March, Senator Mark Kelly, a Democrat from Arizona, proposed suspending the tax until October.

“I anticipate it would pass, but there could be a procedural delay. It also suggests that President Trump doesn’t see a quick end to the reduced volumes and is trying to cushion the American consumer,” Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, told Al Jazeera.

“The impact could be greater in states that have also reduced their own petrol taxes and could reinforce differentiation between petrol prices by region.”

US states also tax petrol, with Indiana, Kentucky and Georgia moving to make cuts to give consumers some relief at the pump.

Petrol prices have continued to climb since the initial strikes of the US-Israel war on Iran on February 28. The average price for a gallon (3.78 litres) of regular petrol is $4.52, according to the American Automobile Association, which tracks daily petrol prices, compared with $2.98 when the strikes first began.

However, news of the stumbling ceasefire has sent oil prices surging. Brent crude futures were up $3.17, or 3.13 percent, at $104.46 a barrel, while US West Texas Intermediate crude was at $98.32 a barrel, up $2.90, or 3.04 percent. Brent reached a session high of $105.99 and WTI hit a peak of $100.37.

On Wall Street, stocks for oil and gas giants are trending upward. Shell was up 1.6 percent in midday trading, Exxon rose 3.1 percent, BP gained 2 percent, and Chevron climbed 1.7 percent.

Airline bailout?

Trump was also asked by CBS on Monday whether a bailout was planned for the airline industry, which has taken a hit since the war on Iran began.

The president told the outlet that a bailout had not “really been presented” and that “the airlines are doing not badly”.

However, earlier this month, budget carrier Spirit Airlines ceased operations after 34 years. Court documents said the airline shut down because of “recent geopolitical events resulting in a massive and sustained increase in fuel prices”.

That comes as other major US carriers raise prices. In April, United Airlines said it would raise fares by 20 percent amid a surge in jet fuel costs.

May 8 (UPI) — Consumer sentiment in the United States has hit another record low as Americans worry about the cost of life as gas prices continue to rise amid the war in Iran.

A monthly University of Michigan survey found that consumer sentiment dropped 3.2% in the last month — from 49.8 to 48.2 — and was down 7.7% over the course of the year, the university’s Institute for Social Research said on Friday.

Joanne Hsu, director of the university’s Surveys of Consumers, said that consumer sentiment is “essentially unchanged” from April, while the current economic conditions survey dropped 9% because of high prices affecting personal finances and whether people will make major purchases.

The decline in the current economic conditions survey was down nearly 19% from last year.

She pegged the survey results to the effects of the U.S.-Israeli war in Iran, and specifically the widespread effects that Iranian and U.S. blockades of the Strait of Hormuz have had on the global economy.

“Taken together, consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump,” Joanne Hsu, director of the survey, said in an analysis.

“Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall,” she said.

Hsu noted that, in the surveys, “about one-third of consumers spontaneously mentioned gasoline prices, and about 30% mentioned tariffs.”

The index of consumer expectations did, however, show a 0.8% gain from last month, and is up 1.3% over last year.

May’s consumer sentiment survey is the lowest going back to 1952 — April also set a record — although markets did not react significantly after the institute published its preliminary data for this month’s surveys.

The Bureau of Labor Statistics on Friday also released its April jobs report, which showed that the economy gained 115,000 non-farm payroll jobs — more than double what Wall Street expected — but down from the 185,000 added in March.

For the 12 months ended in April, BLS noted that net payrolls were relatively unchanged.

The unemployment rate for April was unchanged from March at 4.3%.

BRITISH Airways passengers face higher fares after its parent company warned rising oil prices will add about £1.72billion to its fuel bill this year.

International Airlines Group (IAG), which also owns Iberia and Aer Lingus, said it expects to pass on part of the extra cost through ticket prices, with business class and other premium long-haul passengers among those most likely to be affected.

Chief executive Luis Gallego said airlines need to increase fares to help offset fuel costs, which make up about a quarter of their spending.

The rise follows disruption linked to the Middle East conflict and the closure of the Strait of Hormuz, which normally carries about a fifth of the world’s oil and gas shipments.

IAG warned the crisis could deepen if the strait remains blocked, with global jet fuel supplies potentially restricted.

However, the group said it does not expect any disruption to summer fuel supplies.

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Mr Gallego said there is less jet fuel coming from the Middle East, but there are “other places with record supply” such as the US.

He said IAG has been “planning for situations like this for many years”, and has invested in its own jet fuel supply at its “main hubs”.

The company recorded a pre-tax profit of £365million during the three months to the end of March.

That was a 76.6% increase from £207million a year earlier.

The group now expects its annual fuel bill to reach £7.78billion.

Mr Gallego attributed the firm’s “strong first quarter” to “continued strong demand for our networks and airline brands”.

He added: “IAG is uniquely positioned to navigate the current headwinds created by the Middle East conflict thanks to our leading positions across diverse markets, strong brands, structurally high margins and strong balance sheet, as well as a strong track record of execution.”

IAG said about 3% of its capacity was “exposed to the Gulf region” at the start of the war on February 28, mostly with British Airways flights.

A large part of this has been redeployed, including boosting capacity at destinations where there are now fewer flights by Middle East carriers such as Bangkok, Singapore and the Maldives.

British Airways has also announced additional flights this summer on routes with higher demand for direct flights, such as India and Nairobi.

Brent crude rises amid clashes in critical waterway.

Oil prices have jumped after clashes between United States and Iran in the Strait of Hormuz pushed their tenuous ceasefire to the brink.

Futures for Brent crude rose as much as 7.5 percent during a volatile trading session on Thursday, before easing as Asia’s markets opened on Friday morning.

The international benchmark stood at $101.12 per barrel as of 03:00 GMT, down from the day’s high of $103.70.

The latest rise came after the US and Iran exchanged fire in the critical strait, a conduit for about one-fifth of global oil and natural gas supplies, despite the truce announced between the sides on April 7.

US Central Command (CENTCOM) said it launched strikes on Iran after three US Navy guided-missile destroyers came under attack from Iranian missiles, drones and small boats in the strait.

Iran’s Khatam al-Anbiya Central Headquarters earlier accused the US of violating the ceasefire by attacking an Iranian oil tanker and another vessel in the vicinity of the waterway.

The Iranian military headquarters also accused the US of targeting civilian areas, including Qeshm Island.

US President Donald Trump on Thursday appeared to downplay the clashes, saying the ceasefire remained in effect, while Iran’s state-run Press TV said the situation had gone “back to normal”.

Shipping in the strait has been at a near standstill since late February amid the threat of Iranian attacks on the massive oil tankers that usually transport much of the world’s energy supplies.

Brent prices are up about 40 percent compared with before the war amid an estimated shortfall in daily production of 14.5 million barrels.

Asian stock markets opened lower on Friday amid the heightened tensions, with Japan’s benchmark Nikkei 225, South Korea’s KOSPI and Hong Kong’s Hang Seng Index each falling more than 1 percent.

On Wall Street, the benchmark S&P 500 fell about 0.4 percent overnight after hitting an all-time high the previous day.

JUNIOR Andre has revealed he’s working on new music after talks to sign a huge new six-figure deal to team up with sister Princess for an exciting new project. 

Today The Sun told how Junior, 20, and Princess, 18, have sparked a bidding war amongst broadcasters desperate to work with them on their own podcast following the huge success of her ITV2 reality show. 

Now Junior, who released debut single Slide in 2022, has told fans he’s working on new tracks. 

He took to Instagram to share a clip of him in the car and said: “Just finished the gym, on my way to the studio now.

“I’m excited to make another banger, you lot just wait. I feel good.” 

Junior enjoyed huge success with his debut after Slide hit number one on the UK iTunes pop chart in 2022.

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We told how Junior and Princess, the children of Katie Price and Peter Andre, are still deciding to who sign with after the huge interest in them. 

A source exclusively told The Sun: “Princess and Junior are set to host their own podcast together. 

“There was a huge bidding war and they’re still deciding who to sign with.

“It’s worth six figures and everyone is really excited about it. 

“They really impressed a lot of podcast bosses on Princess’s TV show and during TV appearances, it’ll actually be their first time hosting together.”

Fans were obsessed with Princess and Junior’s dynamic on her reality show The Princess Diaries and it appears bosses are keen to replicate this on the podcast.

ITV2‘s The Princess Diaries follows Princess as she navigates social media influence, her personal branding and the challenges of being raised in the public eye while trying to trying to maintain a normal teenage life.

KATIE Price appeared to struggle to keep her ample assets protected as her tiny bikini struggled to handle her ‘biggest ever’ boobs.

The surgically-enhanced star shared a selfie of her enjoying a spot of sunbathing in Dubai – after jetting over to spend time with her fourth husband, Lee Andrews.

In the snap, a very busty Katie risked her boobs from spilling out of her tiny bikini top as it struggled to protect her modesty.

Katie underwent her 17th boob job in 2024 in Belgium where she had work done to refine the biggest chest she has ever had.

Her previous breast surgery saw her get massive 2120cc implants in order to have the title of Britain’s biggest boobs.

Katie first began having breast surgery in 1998 where she initially went from a natural B-cup to a 32C.

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The following year, she had two further boob jobs before she took a break of seven years before having a fourth operation in 2006.

Since then, Katie has had some form of breast surgery almost every one or two years in order to change their shape and size.

Her current boobs are the biggest they have ever been.

Katie briefly returned to her natural B-cup and was without implants after her chest became infected in 2015 following the surgeries.

However, she soon quickly opted to have implants put back in, despite the risks, months later and went from her natural size to a major 32GG.

Known for her cosmetic surgery, Katie underwent her biggest change in 2019 when she opted for a full body overhaul in Turkey.

During her visit to the surgeon, she underwent a third facelift, an eye and eyelid lift, her first BBL, a tummy tuck as well as her 14th breast surgery.

However, the following year, she was forced to jet to Belgium to correct some of the work after it was reported she was left with botched boobs from the Turkish clinic after undergoing the assortment of procedures.

Published on
05/05/2026 – 7:12 GMT+2

Oil prices fell back in early trade but remained elevated as investors kept an eye on escalating tensions between the US and Iran and progress on ships passing through the Strait of Hormuz.

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At the time of writing, Brent crude was trading 1.38% lower at $112.86 while US crude, or WTI, was down 2.27% at $104 per barrel. US futures edged 0.1% higher.

Elsewhere, regional trading was thin overnight with markets in Japan, South Korea and mainland China closed for holidays.

Hong Kong’s Hang Seng fell 1.1% to 25,805.98. Australia’s S&P/ASX 200 lost 0.5% to 8,649.80, while Taiwan’s Taiex traded 0.2% lower at 40,626.22.

The fragile ceasefire between the US and Iran was tested on Monday after the US military said it had sank six Iranian small boats targeting civilian ships, while two US-flagged ships successfully passed through the Strait of Hormuz.

The key waterway for oil and gas transport remains largely closed despite repeated demands from the US for Iran to reopen the strait and as the United States imposed a sea blockade on Iranian ports. US President Donald Trump’s “Project Freedom” plan under which the United States would help guide stranded ships through the Strait of Hormuz began on Monday.

Brent crude, the international standard, surged above $114 a barrel on Monday, gaining nearly 6%. Before the war began in late February, it was trading near $70.

HE’s the man whose been putting a smile on Katie Price’s face in her online videos – but it’s not her new husband Lee Andrews.

Last month, the former glamour model was hit with a six-month driving ban – her seventh one to date – and has had to find other means of getting around.

Thankfully, Katie hasn’t had to look too far from home for help, with cameraman Ben Algar taking on unofficial chauffeur duties of late.

As a result, ‘Big Ben’ – as he’s nicknamed – has found himself on the other side of the lens, making an increased appearance in her unfiltered day-in-the-life videos on her socials – and it’s not escaped fan attention.

“Car pool with Benjamin,” read the caption of one recent karaoke themed video that sees the two crack up as they give a very different rendition of Guns n Roses’ Sweet Child of Mine.

“You like a bit of 80s don’t you,” Ben says clearly knowing Katie intimately.

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“Yeah but what song did you sing at mine during karaoke the other night?” Katie replies, hinting at a late-night jam together.

“New man??” asked one curious fan in the comments, with another concerned follower penning: “have you split with Lee?”

While a third pondered: “I wonder if Lee is jealous of Benjamin and his wife getting all cosy and having banter lol.”

But contrary to speculation, Ben has been a firm fixture in Katie’s life for decades, with their friendship striking up after filming a number of her reality TV shows over the years.

Sources credit Ben as a ‘stable influence’ and the ‘second man’ in the ex-glamour model’s life, in what has been another whirlwind few months for the star, following her driving suspension and surprise Dubai wedding to Lee Andrews in late January.

“The second man in Katie’s life is Ben, who has been by her side for years,” a source tells The Sun. “But he’s really stepped up recently amid her latest drama.

“He is probably the only stable man she’s ever had in her life outside of her family.

“They’re incredibly close friends and Ben has always quietly guided Katie, not only in her career but in her private life

“The whole family love him- he’s a really great friend to Katie and the entire Price gang. They all think he’s a legend.”

The Sun has reached out to representatives for Katie Price.

Ben is such a trusted ally, in fact that he even has a sweet relationship with her children – most notably Harvey, who has been back home with Katie over Easter.

Katie’s eldest even has a cute nickname for Ben, who is a dad-of-five himself, and calls him ‘Bouncy Ben’.

It’s a stark difference to new husband Lee Andrews who is yet to meet his new wife’s brood.

A video shared in late December saw another Ben appearance, with the caption reading: “Our secret camera man showing himself.”

The reality TV star revealed in it how he’s known as ‘Bouncy Ben’ to Harvey and shared the anecdote behind it.

“Harvey calls him Bouncy Ben because when Harvey was smaller, Ben used to lift him up and bounce him like that,” she said on camera, doing an impression of a toddler being thrown into the air.

“But we tried to explain to Harvey that Bouncy Ben can’t do that anymore.

“One, because you’re bigger than Ben now and you weigh a ton and a half,” she added, before Ben cut in: “And two, I’m not that strong.”

Ben’s closeness to Katie and her clan must be something of a blow to Lee, whose distance is claimed to be due to a travel technicality.

There is ongoing speculation that the 43-year-old is unable to leave the United Arab Emirates city after allegedly forging his ex-girlfriend Dina Taji’s signature to secure a £200,000 loan – something he’s strongly denied.

But air miles aside, Katie revealed in an interview on Good Morning Britain that she “wants to get to know him more” before they meet in real life, even if the kids have spoken to Lee over FaceTime.

Lee’s travel ban isn’t the only scandal that’s come out about him, with Katie’s fourth husband having used AI to fake photos with Kim Kardashian and Elon Musk to drum up interest in his business, Aura Group.

The ‘Walter Mitty’ businessman has also been accused of scamming women by his ex-girlfriend Alana Percival, who he popped the question to in a nigh-on identical proposal to Katie’s.

Lee has strongly denied all claims, but the allegations haven’t eased her family’s concerns.

Buddy Ben’s frequent presence therefore couldn’t come at a better time for worried loved ones, who we’re told is quietly monitoring the marriage.

“Ben has definitely been concerned about some of Katie’s relationships and her marriage to Lee is no different,” our source tells us.

“Like Katie’s family who have some very valid worries about Lee, Ben is the same and has been quietly keeping an eye on it.”

The cameraman and confidante has a good relationship with Katie’s sister Sophie, working with the sibling duo on podcast The Katie Price Show.

Just this week, Sophie and Ben playfully teased Katie over a former boyfriend.

“He works with Katie all the time so is aware of what is going on in her life, it means he can keep watch over her,” the source adds.

“Katie is a grafter so work, along with her kids, will always be a priority. It means she’s always in contact with Ben.

“Her family know he looks out for her and are grateful for his input.”

WEST PALM BEACH, Fla. — Spirit Airlines, an impish upstart that shook the industry with its irreverent ads and deep discount fares, announced Saturday that it has gone out of business after 34 years.

The ultra-low-cost airline that once operated hundreds of daily flights on its bright yellow planes and employed about 17,000 people said it had “started an orderly wind-down of our operations, effective immediately.”

Although Spirit had gone bankrupt twice before, the company said high oil prices, which have been rising because of the U.S.-Israeli war with Iran, made it impossible to stay aloft.

The airline said on its website that all flights have been canceled and customer service is no longer available.

“We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come,” the announcement said.

U.S. Transportation Secretary Sean Duffy said Saturday that Spirit had a reserve fund set up for customers who bought directly from the airline to get refunds. People who bought from third-party vendors such as travel agents would have to seek refunds from them. He had a stark message for people flying with Spirit.

“If you have a flight scheduled with Spirit Airlines, don’t show up at the airport. There will be no one here to assist you,” Duffy said.

He said United, Delta, JetBlue and Southwest were offering $200 one-way flights for people who could confirm that they had Spirit confirmation numbers and proof of purchase for a limited time. Duffy also said other airlines would help with Spirit employees who might be stranded and would offer them a preferential application process as they look for work.

Spirit said in a statement that it was working to get more than 1,300 crew members to their home bases and that the final Spirit flight landed early Saturday at Dallas Fort Worth International Airport from Detroit Metropolitan Airport.

The company advised customers that they could expect refunds but there would be no help in booking travel on other airlines.

The Trump administration had considered a government bailout for the cash-strapped business to keep it from going under, but a deal was not reached. Of the potential bailout, Duffy said Saturday that “we oftentimes don’t have half a billion dollars laying around.”

President Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring since the start of the Iran war.

‘They get you there’

Five Spirit flights were still showing as “on time” on Saturday morning on the departure board in Atlanta. A trickle of passengers who hadn’t heard the news were still showing up.

“What!?” exclaimed Taylor Nantang as she, her husband and four children arrived for a Saturday afternoon Spirit flight from Atlanta to Miami for a spur-of-the-moment vacation. The family had driven down from Tennessee to the Atlanta airport.

“So the whole airline at every airport is out of business?” asked Nantang. “Oh my, that’s crazy.”

Other passengers wondered whether the airline would still answer its customer service phone, or when the refunds for canceled flights might arrive on their credit cards.

Joshua Sigler, who had bought a ticket Friday for a flight Saturday to Miami, said he would just return home after learning of the cancellation rather than try to take advantage of deals other airlines were offering to stranded Spirit passengers. He said he had gotten no communication from Spirit, which he had flown multiple times in the past.

“They get you there,” he said of his Spirit travels. “It was cheap.”

Waking to the news

Former Spirit flight attendant Freddy Peterson was on a Spirit flight from Detroit that arrived in Newark, N.J., around 11 p.m. Friday. He said that despite rumors flying on social media Friday, things seemed kind of normal, with more than 200 passengers on the plane.

“All our aircraft were packed,” he said.

Peterson, 60, said he set his alarm clock for 3 a.m. Saturday to check the company website at the hour of the rumored shutdown and learned all Spirit flights were canceled. He said Delta Air Lines brought him and another flight attendant back to Atlanta on Saturday morning, with Peterson leaving from there to drive to his home in Shellman in southwest Georgia.

“I’ll probably do my boo-hoo crying and all that other stuff once I get in the car.”

Peterson said he had been a flight attendant with Spirit for 10 years and the company has “done wonders for me.” He said the airline’s reputation for bargain-basement chaos was largely undeserved, but he did fault management for not communicating with the employees in the closing days, saying a promised employee town hall was canceled.

Bailout fizzles

As late as Friday afternoon, Trump had said his administration was looking at a bailout for Spirit and had given the budget carrier a “final proposal” for a taxpayer-funded takeover.

Spirit proudly disrupted the penny-pinching portion of the airline industry with its no-frills, low-cost flights and provocative ads like its “Check Out the Oil on Our Beaches” campaign after the Deepwater Horizon disaster in 2010, referencing suntan oil but alluding to the massive spill of crude along the Gulf Coast.

But Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.

The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.

White House blames Biden

The White House had blamed the Biden administration for Spirit’s tenuous financial situation, noting that President Biden opposed a proposed merger between Spirit and JetBlue in 2023. On Saturday, Trump administration officials took to social media to amplify voices of conservative critics who faulted that decision.

On Saturday, Duffy concentrated blame on Biden as well as Duffy’s predecessor, Pete Buttigieg. “Many at the time said that this was a disaster. This merger should have been allowed,” he said.

Tad DeHaven, a policy analyst at the Cato Institute, a libertarian think tank, said the Trump administration also bears responsibility, arguing that the airline’s latest crisis reflected a chain reaction of policy missteps rather than a single decision. He pointed specifically to Trump’s decision to strike Iran as “bad foreign policy,” noting the conflict drove up jet fuel prices and therefore Spirit’s operating costs.

“They were already in trouble,” DeHaven said, describing the situation as “a compounding effect in terms of policy.”

Supporters of a rescue including labor unions representing Spirit’s pilots, flight attendants and ramp workers said a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares. About 17,000 jobs could be impacted, according to Spirit lawyer Marshall Huebner.

Budget-conscious and leisure travelers are likely to feel Spirit’s absence the most, especially in places where the airline has a big footprint such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.

The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than during the same month a year earlier, according to aviation analytics firm Cirium. Spirit also has sharply reduced its capacity; about half as many seats had been available this month as in May 2024.

Madhani, Yamat, Amy and Catalini write for the Associated Press and reported from West Palm Beach, Las Vegas, Atlanta and Morrisville, Pa., respectively. AP writer Josh Funk in Omaha contributed to this report.

Price of petrol in US jumps by nearly 30 cents in one week amid Strait of Hormuz blockade and Iran diplomatic deadlock.

The average price of one gallon (3.8 litres) of gasoline in the United States has reached $4.30, according to the American Automobile Association (AAA), up from less than $3 before the February 28 start of the US-Israel war on Iran.

Thursday’s prices come as US President Donald Trump insists that time is on his side in the standoff with Iran, even as he refuses Tehran’s offers of a preliminary deal to reopen the Strait of Hormuz.

According to AAA, prices for gas or petrol went up by 27 cents over the past week amid the deepening impasse, with Iran blocking the strait and the US imposing a naval siege on Iranian ports.

“The national average is $1.12 higher than it was this time last year, as oil prices surge above $100/barrel with no indication of when the Strait of Hormuz will reopen,” AAA said in a brief report on Thursday.

“Gas prices are the highest they’ve been in four years, since late July 2022.”

California, home to nearly 40 million people, saw petrol prices hit more than $6 per gallon on Thursday.

The spike in energy prices has been fuelling inflation and economic uncertainty, adding to Trump’s political woes.

The US president’s approval rating is hitting record lows amid growing discontent with the conflict with Iran, recent public opinion polls show.

Since the start of the war, Trump and his allies have been trying to frame the hike in petrol prices as a temporary price worth paying to achieve the aims of the military campaign.

The US president reiterated that argument on Thursday when asked about the latest price increase.

“And you know what? And we’re not going to have a nuclear weapon in the hands of Iran,” the US president told reporters.

“The gas will go down. As soon as the war is over, it’ll drop like a rock.”

However, oil prices do not drop automatically after hostilities stop. Despite the ceasefire reached on April 8, the cost of gas in the US has continued to climb.

Iran denies seeking a nuclear weapon.

Although the US is one of the largest oil producers and is not heavily reliant on energy products from the Middle East, global prices affect what Americans pay at the pump.

On Thursday, Trump stressed that Iran is all but vanquished militarily and economically – a claim he has been repeating since the early days of the conflict.

“Iran is dying to make a deal,” he said, calling the naval blockade against the country “incredible”.

Tehran has projected defiance, refusing to hold direct talks with the US until the siege is lifted, even after Trump announced last week that he was dispatching his top envoys to Pakistan to negotiate with Iranian officials.

Earlier on Thursday, Iranian President Masoud Pezeshkian suggested that Iran is running out of patience with the current situation of no war and no peace amid the US siege.

“The world has witnessed Iran’s tolerance and conciliation. What is being done under the guise of a naval blockade is an extension of military operations against a nation paying the price for its resistance and independence,” Pezeshkian said in a social media post.

“Continuation of this oppressive approach is intolerable.”

Standoff in the Strait of Hormuz is pushing global oil prices above $120 per barrel, with average gas prices in the US hitting a four-year high.

Wildfire and insurance — issues amped by climate change — along with the price of gas, took center stage at the California governor’s debate on Tuesday night.

Here are some of the candidates’ defining statements, starting left of the stage:

Tony Thurmond

The Democratic State Superintendent of Public Instruction addressed the state’s wildfire insurance crisis, where private insurers have been dropping policies as climate changes fuels more frequent catastrophic fire. The state has allowed insurers to raise rates in return for writing more policies, but so far its backup FAIR Plan, meant to provide coverage when other companies will not, continues to grow.

Thurmond said he would withhold tax credits, subsidies and benefits from non-cooperative insurers, although moderators and other candidates raised questions about the legality of this strategy.

“The governor can certainly work with the Insurance Commissioner to say there should be no rate increase unless the insurance industry is actually writing policies. They have failed California in our greatest need. They’ve taken the money for premiums and then when people needed to have support to rebuild their homes, they said, ‘whoops, we’re not going to help you.’ Then they got a rate increase. I’m sorry, where I come from, when you do a bad job, you don’t get a raise.”

Chad Bianco

The Republican Riverside County Sheriff said insurers aren’t leaving California because of climate change, but because the state has failed to pass and enforce vegetation management and defensible space policies that would reduce wildfire risk.

“It wasn’t global warming, stop believing that. It was a failed environmental policy that doesn’t allow fire departments to prevent defensible space around our homes or clear out the brush for 30 years that are building in our mountains and in our hills that took out a city. [Insurers] specifically said we were going to lose a city, and our governor said ‘we don’t care.’ And so the insurance companies left.”

Inadequate brush clearance has contributed to other fires in the state, although it’s not a factor experts cite in the Los Angeles fires specifically.

Tom Steyer

The Democratic billionaire hedge fund founder who is positioning himself as the climate candidate in the race, touted his drive to make oil companies pay for damages from climate change, including rising insurance rates and homes lost to wildfires.

“In environmentalism, I have three real rules. Number one is polluter pays. It’s absolutely critical that if people are going to pollute and damage the environment and cause harm to their neighbors, they pay. Two, we have to include environmental justice in every single environmental rule. And third is we need to start to deploy all of the clean energy stuff that’s cheaper now and get us back to the front of the world in leading it.

“There is one person that the corporations are going after, including Big Oil, who is spending millions of dollars to stop me. The electric monopolies, PG&E, millions of dollars to stop me, because I’m the person on this stage who’s the change agent.”

Steve Hilton

The former Republican Fox News commentator said insurers should be allowed to raise rates consistent with actual wildfire risk. He also advocated for “modern forest management,” removing fuel from forests, as a way to protect against wildfires, reduce carbon emissions from fire, and revive the state’s timber industry.

“We can create jobs and opportunity in rural California and reduce carbon emissions in the process, because we won’t have the mega wildfires.”

Asked if he supports the transition to electrification, he promoted natural gas: “Yes, but let’s be sensible about electric. Right now, we have a fleet of gas fired power stations generating electricity that are running at 10 to 15% of their capacity, even though we have abundant natural gas in California that we could be using to generate affordable, reliable electricity that would lower the cost of electric bills for consumers and businesses.”

According to the U.S Energy Information Administration, California’s natural gas production provides less than one tenth of what the state consumes.

Xavier Becerra

The former Health and Human Services Secretary said he would call a state of emergency as governor to require wildfire insurers to freeze rates and come to the table.

“This affordability crisis is hitting every family, and we have to act as if this were a break glass moment … Rate payers have to understand what their risk is, so they understand why they are going to pay for what they’re going to pay for their home insurance. But an insurance company has to be open and transparent about how its pricing its policies so people can afford it.”

Moderator Julie Watts noted that California home insurance rates are below the national average and questioned the legality of a freeze.

Katie Porter

The former Democratic Orange County Congresswoman was asked whether California should keep its refineries. Two of them closed in the past year, reducing the state’s refining capacity by 20 percent and causing California to lean more heavily on imports.

She said the state should keep the remaining refineries open, but also rapidly scale up green energy to meet the state’s growing electricity demand: “Right now we need to keep all of our energy sources online. That’s just the reality that we’re in. … Right now those refineries, they’re up, they’re running, they’re creating good jobs. Let’s keep them there. But I want to be really clear … The people who work at those refineries, and the people who live in Kern County also face some of the worst pollution and lower life expectancies. Green energy gets us out of that.”

She also backed an idea to have state dollars cover insurance for insurers, known as reinsurance.

Matt Mahan

Democratic San Jose Mayor called to suspend the state’s 61 cent-per-gallon gas tax, used to fund road repairs, bridges, and public transport. The state is looking at a $216.4 billion revenue shortfall over the next decade due to increasing fuel economy and electric vehicles. The other Democratic candidates support keeping the tax; Mahan has instead proposed a flat fee on all vehicles.

He said: “I’m the only candidate on this stage who has pledged to suspend and then reform the gas tax. It is the most regressive tax in California. Working people, rural people, are spending three times as much maintaining our roads as wealthier EV owners.”

On the wildfire insurance crisis he said: “The government in Sacramento created so many restrictions, including taking over a year to approve any rate changes, prohibiting insurance companies from using climate data to project future costs, that they stopped writing new policies. The answer is bring them back, force them to compete, allow them to appropriately price risk, and then hold government accountable for maintaining our wildland, reducing all that vegetation and wildfire risk so that we don’t have these catastrophic fires.”

Antonio Villaraigosa

The former Democratic L.A. mayor expressed his concerns with the readiness of the state’s infrastructure to support a transition to electric vehicles.

“We need an all of the above strategy that understands we’ve got to transition from oil and gas to renewables. But here’s an example: the 2035 mandate [to ban gas-powered car sales]. We built 167,000 charging stations in the last 10 years. We need 2 million more to get to that mandate, and if we build them, we don’t have a grid. So we ought to build the grid instead of arguing about whether or not we need an all-of-the-above policy.”

Oil markets face renewed instability following the United Arab Emirates’ formal exit from the Organisation of the Petroleum Exporting Countries (OPEC) and its wider alliance (OPEC+), announced on Tuesday and taking effect on Friday.

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The move, which ends decades of membership, comes as the global economy continues to reel from the ongoing war with Iran and the blockade of the Strait of Hormuz remains in place.

Investors are currently weighing the potential for higher future output from the UAE against the immediate and acute risks posed to global supply routes, as well as the increased chances that more countries drop out of OPEC and OPEC+.

Following the announcement, markets reacted swiftly as the potential for oversupply from the UAE was priced in. Oil prices fell by between 2% and 3%, particularly in futures contracts a couple of months ahead.

However, the move was just as quickly offset by the risk premium associated with the Middle East conflict and the current halt to US-Iran negotiations.

At the time of writing, US benchmark crude, WTI, is trading above $105 a barrel, while Brent crude, the international standard, is over $112. Both prices are around 4% higher on Wednesday from the UAE announcement low.

The UAE’s decision follows years of simmering tension between Abu Dhabi and Riyadh over production quotas. The UAE has invested over $150 billion (€128bn) in the state-owned Abu Dhabi National Oil Company (ADNOC) to expand its capacity to five million barrels per day.

However, under OPEC’s restrictive framework, much of this capacity remained underutilised, now prompting the government to prioritise its national interest.

The departure of the group’s third-largest producer is a significant blow to the cohesion of the 60-year-old organisation. Maurizio Carulli, global energy analyst at Quilter Cheviot, noted the limitations this exit places on the remaining members.

“Until tanker traffic through the Strait of Hormuz is safe again, OPEC’s ability to stabilise prices is sharply constrained, while US producers have gained outsized influence,” Carulli explained.

While the UAE has pledged to bring additional production to the market in a “gradual and measured” manner, the sudden lack of coordination within OPEC has introduced a new layer of uncertainty.

For the UAE, the blockade served as a final catalyst for its exit. With its primary export route under threat, Abu Dhabi has sought the diplomatic flexibility to forge independent security and trade partnerships outside the traditional cartel structure.

Despite the geopolitical turmoil, energy equities have remained resilient.

According to Carulli, “integrated majors such as BP, Shell, TotalEnergies, ENI, Chevron and ExxonMobil are benefitting from a price uplift that could add 5-10% to operating cash flow for every $10 increase in oil prices.”

Standoff over the Strait of Hormuz

In a separate but related development, the security situation in the Middle East remains precarious despite a fragile ceasefire. Iran has recently offered a ten-point proposal to reopen the Strait of Hormuz.

In exchange for restoring maritime traffic, Tehran is demanding a full withdrawal of the US naval blockade and an end to the current hostilities.

US President Donald Trump, who recently extended the two-week ceasefire mediated by Pakistan, described the latest Iranian offer as “much better” than previous iterations but still did not accept the terms.

Shortly after, Trump posted on social media claiming that Iran is in a dire and desperate condition with no leverage to negotiate.

Washington continues to insist on a permanent settlement regarding Iran’s nuclear programme and an “unconditional” reopening of the waterway before sanctions are lifted.

The impact of this blockade on global energy security cannot be overstated.

“The prolonged closure of the Strait of Hormuz has removed roughly 12% of global oil supply from the market, according to the IEA, a bigger disruption than the Yom Kippur war, the Iran‑Iraq conflict, the invasion of Kuwait or even the fallout from Ukraine,” Carulli highlighted.

April 28 (UPI) — Average gas prices in the United States hit $4.18 on Tuesday, their highest level since the Iran conflict started, as peace talks between the country and Iran stalled again over proposals on reopening the Strait of Hormuz.

The price jump of 1.6% over Monday’s price was the highest increase in more than a month, The New York Times reported. AAA numbers show that the average price for a gallon of regular gas marks an increase from $4.11 on Monday and $3.98 a month ago.

The price is the highest since April 2022, soon after the Russia-Ukraine conflict started, and about a 40% increase for drivers since the Iran conflict began. Diesel prices are at $5.46, up about 45% in that time.

Meanwhile, officials from the United States and Iran appear at an impasse over reopening the strait and an Iranian proposal to postpone discussion of that country’s nuclear program, something that President Donald Trump has said he will not agree to, USA Today reported. The conflict, as of midday Tuesday, is in a ceasefire, but both countries continue to limit shipping in the region and face off over the Strait of Hormuz.

Trump on Tuesday posted on Truth Social in an apparent response to German Chancellor Friedrich Merz’s comments Monday criticizing the conflict. Merz said in comments to students that he hopes the conflict ends soon and that United States is being “humiliated” by Iranian leaders, USA Today reported.

“He doesn’t know what he’s talking about!” Trump wrote. “If Iran had a Nuclear Weapon, the whole World would be held hostage. I am doing something with Iran, right now, that other Nations, or Presidents, should have done long ago.”