Fresh Middle East Missile Strikes, Britons Rethink Brexit, More
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Hello, I'm Stephen Carroll. I'm in Brussels, where many of Europe's biggest decisions get made.
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Oil prices have risen by around 5% as fresh Israeli and Iranian strikes pile pressure on what appears to now be a ceasefire in name only. Iran has launched a new wave of attacks just hours after firing ballistic missiles at Israel. Israel has responded with strikes on military targets across western and central Iran. The Islamic Republic's semi-official Fars news agency reports that Israel also struck a petrochemical company in a fresh offensive over the past few hours. The renewed hostilities follow Hezbollah attacks on targets in northern Israel over the weekend, which prompted an Israeli strike on Beirut's southern suburbs. Honor Ant is Bloomberg's managing editor for the Middle East and North Africa.
Iran has repeatedly made it clear that it just sees one truth, one ceasefire, as one uniform cessation of hostilities across the whole region. It does not want to allow the groups that it supports, such as Hezbollah, to be treated as part of a different conflict or as part of a different diplomatic track. That's where the current flare-up is coming from.
The renewed escalation comes after Axios reported that US President Trump had called Israeli Prime Minister Benjamin Netanyahu to urge him to refrain from retaliatory strikes. Separately, the US President says the Israeli leader will have to accept any deal the US reaches with Iran. Speaking to the Financial Times, Trump said, I call the shots.
The global airline industry is facing an almost 50% drop in profits this year as a result of higher fuel costs and escalating tensions in the Middle East. The International Air Transport Association now says airlines expect to generate a combined net profit of $23 billion this year. That's down from $45 billion last year. IATA says the industry's fuel bill will rise by almost 40% this year, reaching $350 billion this year. The group's director general, Willie Walsh, says that's creating significant headwinds for the sector.
With the significant impact to disruption in the Gulf and the very significant impact on oil prices, we're now forecasting lower growth, principally as a result of the negative impact in the Gulf and then much higher costs for the industry. Fuel bill will be about 100 billion US dollars higher.
The current situation presents a challenge for airlines. He does not yet view it as a crisis for the industry.
European leaders are calling on Russian President Vladimir Putin to agree to an immediate ceasefire with Ukraine, allowing for talks about a lasting peace deal. Britain, Germany and France made the intervention after a meeting with Ukraine's Vladimir Zelensky in London, hosted by UK Prime Minister Keir Starmer. President Zelensky says his country has been forced to respond to Russian aggression.
we will not just silently die, and we will respond, and we will be stronger and stronger each day, day by day. That's why we show that our drones will come to them.
Ukraine's President Vladimir Zelensky.
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