Soaring inflation and plummeting economy test Iran's ability to withstand war and US blockade
TEHRAN, Iran (AP) — The struggles of Iran's economy are testing its ability to withstand the war and defy Washington’s demands. Iranians have been hit by spiraling prices for food, medicine and other goods. At the same time, the country has seen mass job losses and business closures caused by strike damage to key industries and the government’s monthslong shutdown of the internet. Hadi Kahalzadeh is an Iranian economist and research fellow at Brandeis University. He says the economic cost of the war and the U.S. naval blockade has been substantial. But, he added, Iran has withstood decades of economic pressure and sanctions and its capacity to adapt has not been dismantled.
Asian shares trade mixed as AI excitement fades and war worries continue
TOKYO (AP) — Asian shares are trading mixed, as the enthusiasm over AI and other technology stocks gradually faded, braking Wall Street’s record-setting run. Benchmarks rose slightly in early Wednesday trading in Tokyo and Seoul. Shares were lower in Sydney, Hong Kong and Shanghai. The Kospi index sank 2.3% earlier in the week from its all-time high on worries that the government may redistribute windfall AI profits from companies to its citizens. On Wall Street, the S&P 500 dipped 0.2% from its all-time high set the day before. The Dow Jones Industrial Average added 0.1%, and the Nasdaq composite sank 0.7% from its own record.
Some Japanese snack packages are turning black-and-white as Iran war depletes ink supply
TOKYO (AP) — The packaging on some snacks in Japan is turning a somber black-and-white, as the war in Iran disrupts the supply of an ingredient in colored ink. Calbee, which makes potato chips and cereal, says what’s inside remains the same. Calbee snacks are popular in Japan’s omnipresent convenience stores and shipped to the U.S., China and Australia. Calbee’s lightly salted chips, known as “usu shio,” originally came in a bright-orange bag with an image of yellow chips and a potato-man mascot wearing a hat. The new packaging just has monochrome lettering. It's the latest impact from the effective closure of the Strait of Hormuz because of the war in Iran.
Trump set to meet with Xi in Beijing as war and inflation weigh on his presidency
BEIJING (AP) — President Donald Trump is set to land in Beijing on Wednesday for a highly-anticipated summit with Chinese leader Xi Jinping. Trump told reporters that trade will be the main focus of their discussions. The Trump administration hopes to establish a “Board of Trade” with China to address differences and prevent further trade conflicts. The visit comes at a delicate moment for Trump, with his popularity affected by the U.S. and Israel's war with Iran and rising inflation. Trump also plans to discuss Taiwan and an $11 billion weapons package. He expressed optimism about future relations with China.
US grocery prices rose in April, but gas spikes weren't the only reason
Americans paid more for their groceries in April, but high gas prices were only one of the reasons why. Government figured released on Tuesday showed prices for food eaten at home rose 2.9% last month compared to a year earlier. That was the highest year-over-year inflation for the category since August 2023. Rising fuel prices were a factor. But tariffs and extreme weather also have weighed on U.S. food prices. Two Purdue University economists say the costs to produce, process, store and transport food can take up to six months to show up on supermarket shelves. That means the full impact of rising energy costs on food likely hasn't hit retail grocery prices yet.
Musk, Cook and other prominent US executives invited to join Trump on trip to China
Prominent U.S. executives from Big Tech, agriculture as well as aerospace and defense have been invited to join President Donald Trump on his trip to China this week. Trump leaves Tuesday for Beijing to meet with President Xi Jinping. Aside from discussions about Iran, Trump and Xi are expected to discuss trade and artificial intelligence. Executives that have been invited include Nvidia’s Jensen Huang, Tim Cook of Apple, Goldman Sachs’ David Solomon, and Elon Musk, who heads Tesla and SpaceX.
US hotel operators say promised boon from hosting World Cup hasn’t materialized yet
NEW YORK (AP) — U.S. hotels say the promised economic boon from the World Cup hasn’t materialized yet for them. The American Hotel & Lodging Association recently released a report that found room bookings are lighter than expected in most of the 11 U.S. host cities with roughly a month to go before the start of the most watched sports tournament in the world. The group’s survey found that in Boston, Philadelphia, San Francisco, and Seattle, nearly 80% of hotels responding reported the pace of bookings was tracking behind a typical summer. Experts say the weaker-than-expected demand shouldn’t have come as a surprise to hotel operators.
What a US gas tax suspension could mean for drivers and the prices they see at the pump
NEW YORK (AP) — President Donald Trump wants to suspend the federal gas tax to ease financial strain from high fuel prices during the war with Iran. It's a move he can't do on his own, but lawmakers on both sides of the aisle are already pushing for such a pause. Supporters believe a suspension could provide relief for struggling families and businesses. But the tax accounts for a small portion of what consumers pay for gas — and critics argue it won't significantly lower costs. The federal gas tax also funds highway and public transit programs, and some warn that suspending it could carry longer-term ramifications for funding.
OpenAI chief Sam Altman makes a high-stakes appearance in his court bout with Elon Musk
OAKLAND, Calif. (AP) — OpenAI CEO Sam Altman took the witness stand Tuesday to defend his business record in a trial pitting him against Elon Musk, rebutting testimony that disparaged his leadership at a pivotal time for the ChatGPT maker. Musk, the world’s richest man, is seeking Altman’s second ouster from the company leadership as part of a civil lawsuit accusing him of betraying their shared vision for OpenAI. Altman testified to a number of concerns he had about Musk’s attempts to gain more control over OpenAI, which was aiming to safely build a better-than-human form of AI called artificial general intelligence.
Shipping industry fears fuel shortages as Iran war squeezes bunker fuel supply
BANGKOK (AP) — The global maritime industry is facing a looming shortage of the fuel that powers ships as the Iran war chokes off a key shipping lane in the Strait of Hormuz. About 80% of globally traded goods are transported by sea. Ship operators rely on a sludgelike substance known as bunker fuel to move those goods. The world’s largest ship refueling hub is Southeast Asia, which places the region at the center of growing concerns as prices skyrocket. Experts say consumers and companies should brace for price spikes to shipping costs and impacts to bottom lines. Interest in “green” fuels could grow.
