Shipping firms are being whipsawed by changing stances and risks as they wait for Hormuz to reopen
NEW YORK (AP) — With hundreds of vessels still stuck in the Persian Gulf and costs piling up, shipping companies are being whipsawed by uncertainty over how and when the Strait of Hormuz might reopen more than two months into the Iran war. U.S. President Donald Trump first announced an effort in which the U.S. military would “guide” ships through the strait, then paused that to allow time for a deal to end the war. A French-operated ship was damaged attempting to transit the strait. Industry figures say a return to normal transit will take weeks even if there's a deal.
These numbers show the global impact of Iran's grip on the Strait of Hormuz
Iran’s grip on the Strait of Hormuz has jolted the world economy. It has also left tens of thousands of mariners and hundreds of ships stranded in the Persian Gulf. Iran effectively seized control of the critical waterway for global energy after the U.S. and Israel attacked it on Feb. 28. Weeks of heavy bombing and a U.S. naval blockade imposed last month have yet to loosen its grip. Iran says it will only reopen the strait if the war ends and the blockade is lifted. U.S. President Donald Trump is seeking wider concessions, including on Iran’s nuclear program.
Trump says EU has until July 4 to approve last year’s trade deal or it will face higher tariffs
WASHINGTON (AP) — President Donald Trump says goods from the European Union will face higher tariff rates if the 27-member bloc fails to approve last year’s trade framework by July 4. Trump's announcement on social media Thursday appears to be a deadline extension after the president said last Friday that EU autos would face a higher 25% tariff starting this week. Trump is displeased that the European Parliament has yet to finalize the trade arrangement reached last year. It was further complicated in February by the U.S. Supreme Court ruling that Trump lacked the legal authority to declare an economic emergency to impose the initial tariffs used to pressure the EU into talks.
Federal court rules against new global tariffs Trump imposed after loss at the Supreme Court
WASHINGTON (AP) — A federal court has ruled against the new global tariffs that President Donald Trump imposed after a stinging loss at the Supreme Court. A split three-judge panel of the Court of International Trade in New York found the 10% global tariffs were illegal after small businesses sued. The court ruled 2-1 Thursday that Trump overstepped the tariff power that Congress had allowed the president under the law. The tariffs are “invalid″ and “unauthorized by law,” the majority wrote. At issue are temporary 10% worldwide tariffs the Trump administration imposed after the Supreme Court in February struck down even broader tariffs the president had imposed last year on almost every country on Earth.
Lower-income Americans hit hardest by gas price spike, widening inequalities, study finds
WASHINGTON (AP) — Lower-income Americans sharply reduced their gas consumption in the month following the Iran war, yet spiking prices still forced them to spend more at the pump, worsening the economy’s disparities, new research released Wednesday showed. Higher-income households, meanwhile, ratcheted up their spending on gas while barely reducing their consumption, according to a report from the Federal Reserve Bank of New York. Middle-income households fell in-between. The figures suggest the gas-price surge has worsened what many economists call the “K-shaped economy.”
Why gasoline costs 52% more in the US than it did before the Iran war
NEW YORK (AP) — The price of a gallon of regular gasoline in the U.S. has climbed 31 cents in the past week and is now 52% higher than before the Iran war began. That's according to the latest data from AAA, which said regular gasoline reached an average of $4.54 per gallon on Wednesday. The main reason drivers are paying more for gas is because the war has stranded oil tankers near the Strait of Hormuz. Oil prices fell below $100 a barrel on Wednesday on renewed hopes of an agreement to end the war. That could pull gasoline prices down as well, but energy experts say it will take months for prices to return to pre-war levels.
McDonald's focus on value lifts first-quarter sales, but company says gas prices could dent demand
McDonald’s posted better-than-expected sales in the first quarter but said high gas prices and consumer anxiety could dent sales this spring. McDonald’s Chairman and CEO Chris Kempczinski said the company has been making progress bringing lower-income customers back into its stores with combo meal deals and value pricing. But he said gas prices will disproportionately impact lower-income consumers. McDonald’s global same-store sales rose 3.8% in the January-March period, which was better than Wall Street was expecting. But same-store sales slid in April. McDonald's said its revenue rose 9% to $6.52 billion in the first quarter, which also beat Wall Street's expectations
Both engines shut off and cockpit struggle came before 2022 China plane crash, NTSB data suggests
Both engines were intentionally shut down and there was a cockpit struggle before a China Eastern Airlines jet slammed into a mountain in 2022. All 132 people on board died. In response to a public records request, the National Transportation Safety Board released a report on what the Boeing 737-800’s flight data recorder revealed. Aviation safety experts agree that the data shows both engines stopped and someone sent the plane into a nosedive and a 360-degree roll. And the back-and-forth movement of the controls suggests a struggle in the cockpit. Chinese authorities have yet to release a final report.
Whirlpool has been rattled by rising costs and that now means higher prices for customers
With the war in Iran and economic concerns putting pressure on consumers and how they spend their money, Whirlpool is having to adjust to Americans delaying big-ticket purchases while also raising prices to help stabilize its North American business. The company known for brands such as KitchenAid, Maytag and its namesake, said that the Iran war led to a “recession-level industry decline” in America as consumer confidence collapsed in late February and March. Revenue dropped nearly 10% in the quarter as sales of major appliances in North America declined more than 7%.
US jobless claim applications rise to 200,000 but remain historically low despite economic headwinds
WASHINGTON (AP) — U.S. jobless claim applications rose last week but remain at historically low levels despite elevated inflation and other economic headwinds. The number of Americans filing for unemployment benefits in the week ending May 2 rose by 10,000 to 200,000, the Labor Department reported Thursday. That’s fewer than the 205,000 new applications analysts surveyed by the data firm FactSet were expecting. The previous week’s new claims figure, which was the fewest since 1969, was revised up by 1,000 to 190,000. Weekly filings for unemployment benefits are considered a proxy for U.S. layoffs. The total number of Americans filing for unemployment benefits for the previous week ending April 25 declined by 10,000 to 1.77 million.
