UK, Germany and Italy ‘working together’ to navigate commercial shipping through strait of Hormuz - as it happened

Time to wrap up…Saudi Arabia’s state oil company has warned of “catastrophic consequences” for the world’s oil markets if the US-Israeli war with Iran continues to block shipping in the strait of Hormuz.The world’s biggest oil company expects to be able to export about 70% of its usual crude output despite the stranglehold on the vital trade artery, but its chief executive warned that there would still be “drastic” consequences for the world economy if the disruption continues.Oil prices have tumbled from four-year highs, capping an extraordinary 24 hours in global markets and prompting global stocks to rebound after Donald Trump suggested the US-Israel war on Iran could end “very soon”.The FTSE 100 opened higher on Tuesday, following an overnight rally in Asia, which has been one of the most exposed regions to higher energy prices.Europe’s largest automaker, Volkswagen, is to shed 50,000 jobs by the end of the decade, as it faces falling sales in China and North America and punitive US tariffs imposed by Donald Trump

Trump’s re-election may have helped Albanese – but the US war in Iran is creating economic conundrums

Donald Trump’s re-election helped Anthony Albanese win a landslide election, but now threatens to derail his second term of government, with the Labor government’s fortunes increasingly tethered to the US president’s policy agenda.Trump’s Middle East incursion triggered a huge spike in energy costs, propelling oil prices to their highest level in four years, as fears of a prolonged regional conflict took hold.An elevated oil price is a major global inflation trigger, given it drives up costs across goods and services in the economy, pushing central banks, including in Australia, to consider rate hikes to keep a lid on inflation.The resurgence of Australian inflation, already a factor before the Middle East conflict, now risks intensifying, creating a problem for the incumbent government.Sign up: AU Breaking News emailIf interest rates move higher, as expected, many voters will be paying increased mortgage rates at the same time as they face elevated prices for everything from fuel to food

Cathay Pacific offers £20,000 Sydney-London flight amid disruption in Gulf

The Hong Kong-based airline Cathay Pacific is selling seats from Sydney to London for more than £20,000 in April, as passengers search for scarce long-haul flights without changing in the Middle East.The tickets, listed at A$39,577 in business class for returns departing in mid-April, far outstrip the usual fares charged even in the first-class cabin.Travellers on routes around the world have had to look for different options after the US-Israel war on Iran closed critical airspace and airport hubs in the Middle East.A large proportion of UK-Australia traffic connects in the Gulf, travelling on airlines including Dubai-based Emirates, Abu Dhabi’s Etihad and Qatar Airways out of Doha. The three biggest carriers have now restarted limited operations at a fraction of normal schedules, and hundreds of thousands of travellers have had their flights cancelled over 10 days of full or partial airspace closure in countries near Iran

Crispin Odey was described as ‘sex pest’ by head of his hedge fund, court hears

The multimillionaire financier Crispin Odey was described by the head of his hedge fund as a “sex pest” and blamed an incident in which he allegedly groped a female staff member’s breasts on a sedative he had taken, a tribunal has heard.The Brexit-backing hedge fund chief’s behaviour came under the microscope on the first day of a lawsuit he has brought against the financial services regulator over his exile from the City.The Financial Conduct Authority (FCA) fined Odey £1.8m and banned him from the financial services industry last year, finding that he had displayed a “lack of integrity” by attempting to frustrate an investigation by his own hedge fund into allegations of sexual harassment, which he denies.Odey had already launched a £79m libel claim against the Financial Times, which first published claims about his behaviour towards junior female staff

VW to cut 50,000 jobs by 2030 amid Trump tariffs and falling Chinese sales

Europe’s largest automaker, Volkswagen, is to shed 50,000 jobs by the end of the decade, as it faces falling sales in China and North America and punitive US tariffs imposed by Donald Trump.The 10-brand group, whose luxury subsidiaries Porsche and Audi are also under pressure, said the jobs would go in Germany, affecting the entire group, as part of a restructuring drive amid the darkening global business climate.The group had already struck a deal with German trade unions at the end of 2024 to cut 35,000 jobs by 2030, in part by natural attrition through retirement and other staff departures.Volkswagen revealed the updated plans as it announced a 54% drop in pre-tax profits. The group has been scaling back its targets for electric vehicle (EV) production in recent months, including at its Italian supercar manufacturer, Lamborghini

Oil prices fall and stocks rebound after Trump says Iran war could end ‘very soon’

Oil prices have tumbled from four-year highs, capping an extraordinary 24 hours in global markets and prompting global stocks to rebound after Donald Trump suggested the US-Israel war on Iran could end “very soon”.Brent crude, the international benchmark, surged as high as $119.50 a barrel on Monday as the Middle East conflict intensified fears of a deepening energy supply crisis.Trump sought to play down this remarkable increase, claiming that oil prices had risen “probably less than I thought they’d go up”, while moving swiftly to reassure investors.Brent fell to about $91