Energy Crisis

As treasurer Jim Chalmers weighs ‘extreme uncertainty’, one economic scenario sees global growth plunging to just 2% in 2026Get our breaking news email, free app or daily news podcastThe International Monetary Fund has warned the US-Israel war on Iran risks creating an “energy crisis of an unprecedented scale” that could tip the global economy towards recession.The grim warning contained in the IMF’s latest World Economic Outlook comes as Jim Chalmers prepares to attend the organisation’s spring meetings in Washington DC this week, where he said he would be “joining with other countries continuing to call for an enduring end to the war”. Continue reading...

• Finance ministers and central bank governors gathered in Washington for IMF and World Bank Spring Meetings are confronting an unprecedented global energy shock caused by the Iran war and Strait of Hormuz closure, according to IMF Managing Director Kristalina Georgieva. • Georgieva warned that "there will be no neat and clean return to the status quo ante," indicating long-term economic impacts regardless of ceasefire outcomes or efforts to reopen shipping routes. • The energy crisis is already affecting hundreds of millions of people globally, with decisions made at the meetings regarding resource allocation and emergency funding expected to have tangible impacts on livelihoods in the coming weeks.

• Cuba announced the release of 2,010 prisoners on April 4 following intense US pressure linked to the island's worsening energy crisis. • Gesture aims to ease bilateral tensions as Trump administration leverages geopolitical leverage. • Amid blackouts and shortages, release signals Havana's bid for concessions or sanctions relief.

Former government adviser Polly Billington urges bigger steps to shield people in UK from effects of Iran warMiddle East crisis – live updatesKeir Starmer should convene a global energy summit of the same order as Gordon Brown’s response to the 2008 financial crisis and put Britain on a “war footing” to reduce its exposure to fossil fuels, a Labour MP and former government adviser has said.Polly Billington, who was an aide in Brown’s government, warned that economic pain was “hurtling down the tracks” and a bigger response was needed to protect the British people from the consequences of the US-Israeli war on Iran. Continue reading...

• Brazil and Paraguay finalized a bilateral agreement on Thursday to jointly develop and operate expanded hydroelectric capacity along the Paraná River, addressing critical energy shortages affecting both nations and the broader South American grid. • The $8.7 billion infrastructure project aims to increase regional electricity output by 28% within five years and includes provisions for technology transfer and workforce development across both countries. • The agreement emerged from emergency regional meetings convened by the Union of South American Nations (UNASUR) following cascading power grid failures that left 85 million people without electricity across South America in early March.

Government keen to avoid panic as oil price surges, but perhaps households need advice on reducing consumptionLabour ministers sent out in recent days to respond to the looming energy crisis sparked by the Iran war have essentially stuck to that reassuring wartime slogan: keep calm and carry on.“I think people should go about their lives as normal, knowing that the government is taking action to bring energy bills down,” James Murray, the chief secretary to the Treasury, told BBC Radio 4’s Today programme on Tuesday. Continue reading...

As the war in Iran continues, ministers debate several options for extending support to households Middle East crisis – live updatesFamilies hardest hit by the looming energy crisis caused by the conflict in the Middle East could be given funds dispensed by local councils, under plans being considered by UK ministers keen to keep a lid on costs.As concerns increase about the impact of rising fuel and energy costs in response to a drawn-out war in Iran, a government official said several options for extending support were being debated inside Whitehall. Continue reading...

US president says he is extending deadline for strait of Hormuz to reopen to 6 April; Houthis tell Lloyd’s List ‘no reason’ to prevent Saudi oil using Red Sea routeFull report: Trump extends deadline Analysis: Trump pitches peace plan but military buildups rarely veer to off-rampHello and welcome to our continuing live coverage of the US-Israel war on Iran and the consequences for the region, the world, and the global economy.Here are the latest developments:Donald Trump said he will extend – once again – his pause on his threat to attack Iran’s energy infrastructure for 10 days until 6 April, claiming that the request came from Tehran and that talks were going “very well”. The US president threatened last Saturday to would strike Iranian energy infrastructure if Tehran did not reopen the strait of Hormuz. Then, on Monday he postponed his threat for five days (until Friday), citing “very good and productive conversations” with Iran on ending the war (which Tehran dismissed as “fake news” designed to “manipulate” the oil markets). Now, he’s pushing that deadline back, again.The price of Brent crude also dropped following Trump’s latest announcement. Oil prices rose to their highest level this week, with Brent crude trading at roughly $108 a barrel after Trump’s cabinet meeting earlier on Thursday.Yemen’s Houthis have said there is no need to worry amid fears that if Donald Trump follows through on threats to seize Iran’s Kharg Island, Tehran may ask them to attack shipping in the Red Sea.A day after Tehran dismissed Trump’s 15-point ceasefire plan, the US president claimed that Iran was “begging to make a deal,” and that he wasn’t the one pushing for negotiations. Earlier, he told Tehran to “get serious soon” on negotiating a deal to end the war.Trump rejected reports that he was looking for an exit ramp, as oil prices soar and political pressure mounts to avoid the kind of drawn-out Middle East war he once spurned. “I read a story today that I’m desperate to make a deal,” Trump told reporters. “I’m the opposite of desperate. I don’t care.”A US proposal for ending nearly four weeks of fighting is “one-sided and unfair”, a senior Iranian official told Reuters on Thursday.However, Trump said Iran is allowing some oil tankers through strait of Hormuz as a sign of good faith for talks. He said that Iran allowed 10 oil tankers to pass through the strategic strait as a “present” to show it was serious about negotiations to end the war.The Pentagon is looking at sending up to 10,000 additional ground troops to the Middle East to give Trump more military options even as he weighs peace talks with Tehran, the Wall Street Journal is reporting, quoting defence department officials with knowledge of the planning.The Israel Defence Forces’ chief of staff has warned that the military will “collapse in on itself” as it faces increasing demands and a growing manpower shortage while fighting on multiple fronts, according to Israeli media reports.A Thai-flagged cargo ship that was hit by unknown projectiles in the strait of Hormuz earlier this month has run aground off Iran’s Qeshm Island, Iran’s Tasnim news agency said on Friday. Continue reading...

Rationing is not under consideration yet as hundreds of retailers report being without one or more types of fuelGet our breaking news email, free app or daily news podcastPetrol stations are reporting a surge in demand of up to 25% in the last fortnight alone on top of already major spikes earlier in the Iran war as Anthony Albanese comes under pressure to devise a national plan to cushion Australia against the “biggest energy crisis in history”.The Australasian Convenience and Petroleum Marketers Association has revealed the scale of the demand on retailers, which has left hundreds of stations across the country without one or more types of fuel. Continue reading...

PM Sanae Takaichi says about 80m barrels of stockpiled oil to be provided to refiners – equivalent to 45 days of domestic demand • Middle East crisis – live updatesJapan will begin the biggest-ever release of oil from its strategic reserves this week, the prime minister, Sanae Takaichi, has said, as the country braces for possible shortages caused by the US-Israel war on Iran.The government last week approved the release of 15 days’ worth of private-sector reserves, amid concern that the conflict in the Middle East will continue to hinder the flow of tanker traffic along the strait of Hormuz. Continue reading...

Iranian parliament speaker says ‘no negotiations’ held with US, as Trump postpones energy strikes for five days; European Commission chief says war must come to negotiated endTrump claims ‘productive’ talks with Iran but Tehran denies contactIsrael launches new strikes on Tehran as Trump pauses Iran energy attacksWelcome to our ongoing coverage of the US-Israeli war on Iran and its wider repercussions in the Middle East and globally.Donald Trump has claimed the US and Iran have held talks in which the two sides had “major points of agreement”, and speculated that a deal could soon be done to end the war, a claim contradicted by Tehran.Trump said the threatened US strikes on Iranian power plants had been postponed after “very good and productive” discussions with Iran about a “complete and total resolution of our hostilities” in the Middle East. After hitting a four-year high, the price of oil fell dramatically following Trump’s comments, while stocks in Asia rallied.Benjamin Netanyahu, meanwhile, said he had spoken with Trump, who saw a chance of an agreement with Iran, but added that Israel would continue its strikes against Iran and Lebanon. Trump believed there was a possibility of “leveraging the mighty achievements obtained by the Israeli and the US military, in order to realise the goals of the war in a deal – a deal that will preserve our vital interests”, the Israeli prime minister claimed in a video statement released by his office.Israel said it had launched “wide-scale” strikes on Iran on Monday morning, while Tehran continued to fire missiles at the UAE and Saudi Arabia. The Israeli military also claimed to have hit struck the main security headquarters of Iran’s Islamic Revolutionary Guard Corps as part of a “wave of strikes that was completed a short while ago in the heart of Tehran”.An Israeli strike also hit Beirut’s southern suburbs on Monday, Agence France-Presse quoted state media as saying, hours after the Israeli army issued an order for residents of the area to evacuate. An AFPTV live broadcast showed a cloud of smoke over the densely populated southern suburbs, which are considered a Hezbollah stronghold and have not been hit since Friday night. Continue reading...

Fatih Birol says effects on energy markets from Iran bombings and closure of strait of Hormuz not initially understood by world leaders. Plus, feminist magazine reclaims Charlie Kirk-style campus toursGood morning.The global energy crisis caused by the war in Iran is equivalent to the combined force of the twin oil shocks of the 1970s and the fallout from Russia’s invasion of Ukraine, the head of the International Energy Agency has said.Why is the ex-CIA chief Leon Panetta in the news? He has spoken out about Donald Trump’s attack on Iran, telling the Guardian the US president is “sending a message of weakness” to the world.What’s the latest in Iran? Its government is threatening to lay mines across entire Gulf if its coasts are attacked.This is a developing story. Follow our liveblog here.What happened? The aircraft hit the fire truck while travelling at about 24mph, according to the flight-tracking website Flightradar24. In the moments before the crash, an air traffic controller could be heard giving clearance to a fire vehicle to cross part of the runway, then trying to stop it. The controller can then be heard quickly diverting incoming aircraft from landing. Continue reading...

Fatih Birol says effect on energy markets of Iran bombings and closure of Hormuz strait not initially understood by world leadersMiddle East crisis live – latest updatesThe global energy crisis caused by the war in Iran is equivalent to the combined force of the twin oil shocks of the 1970s and the fallout of Russia’s invasion of Ukraine, the head of the International Energy Agency has warned.Fatih Birol, the IEA’s executive director, said the growing fallout could be seriously compounded through interuptions to the “vital arteries of the global economy”, including petrochemicals, fertilisers, sulfur and helium. Continue reading...

Fatih Birol says world is losing 11m barrels of oil per day, more than the 1973 and 1979 energy shocks combined; IRGC threatens to completely close strait of Hormuz if Trump acts on infrastructure threatsIran vows to destroy Middle East water and energy facilities if US attacks power plantsAFP is reporting that stocks have fallen while oil prices rose after Donald Trump and Iranian leaders traded threats over the key strait of Hormuz and Israel said the Middle East war could last several more weeks.The escalation hammered stock markets, with Seoul and Tokyo – which had been the standout performers before the war started – taking the brunt of the selling, shedding as much as six and five percent, respectively, at one point.Iranian president Masoud Pezeshkian said “threats and terror” are strengthening Iranian unity, after Donald Trump yesterday warned he would “obliterate” Iranian power plants if the strait of Hormuz is not opened within 48 hours.The price of oil increased early on Monday after Trump’s 48-hour ultimatum for Iran to open the strait of Hormuz or face decimation of its energy infrastructure – and Israel warned the war would continue for several more weeks. Shortly after the 2200 GMT open, the price of West Texas Intermediate – the US benchmark crude – for May delivery was up 1.8% to just over $100 a barrel, before retreating slightly.The US treasury secretary, Scott Bessent, gave an interview to NBC News earlier today. When asked if Trump was “winding” down the war or “escalating” it, Bessent said: “They are not mutually exclusive. Sometimes you have to escalate to de-escalate.”In the same NBC interview, Bessent said the US government has “plenty of money” to fund the war against Iran, but is requesting supplemental funding from Congress to ensure the military is well supplied in the future.Lebanon’s health ministry said Sunday that 118 children and 79 women are among those killed, and at least 2,786 others have been wounded, according to the Associated Press. The country’s death toll as of Saturday was 1,024 people.The director general of the International Atomic Energy Agency (IAEA), Rafael Grossi, said he hopes to “re-establish” talks between Iran and the US about Tehran’s nuclear program despite the escalating nature of the conflict. “I’ve been having important conversations here at the White House, and also with Iran. There are some contacts, and we hope to be able to reestablish that line,” Grossi told CBS News.UK prime minister Keir Starmer and US president Trump spoke by phone Sunday evening, according to a statement from the UK government. “The leaders discussed the current situation in the Middle East, and in particular, the need to reopen the Strait of Hormuz to resume global shipping.”Pope Leo on Sunday said death and suffering caused by the war in the Middle East are a “scandal to the whole human family”, as he once again pleaded for an immediate ceasefire. “We cannot remain silent in the face of the suffering of so many people, the defenseless victims of these conflicts. What hurts them hurts the whole of humanity,” Leo said at his weekly Angelus prayer in St. Peter’s Square. Continue reading...

As other Asian economies race to conserve energy, China has huge reserves of oil and gas as well as alternative energy sources like wind and solarMiddle East crisis – live updates Xi Jinping has been preparing for a crisis like this for years. China must secure its energy supply “in its own hands”, its president was reported to have said during a visit to one of its vast oilfields in 2021.The US-Israel war on Iran plunged the Middle East into a deep conflict, with the strait of Hormuz – one of the most important waterways in global trade – all but closed and key energy facilities across the region under attack. Continue reading...

Falling costs and government incentives made solar an attractive option for many, which has reduced need for gasAfter prices of liquefied natural gas surged to record highs following Russia’s full-scale invasion of Ukraine in 2022, millions of people in Pakistan were repeatedly left without electricity. An intense heatwave and gas shortages amid record-breaking prices resulted in power cuts across the country.But people soon started to realise there was an alternative. The falling costs of solar panels and generous government incentives to feed excess power back to the grid made rooftop solar an attractive option. Continue reading...

• Iran has threatened to block the Strait of Hormuz and destroy oil tankers in retaliation for U.S. airstrikes on its oil infrastructure, creating unprecedented pressure on global oil supplies. • The world's oil supply is now under intensifying pressure, with the effective closure of the Strait of Hormuz representing a critical chokepoint for international energy commerce. • President Trump is calling on U.S. allies to deploy warships to maintain the strait's openness, with 2,200 Marines and a quick reaction force being deployed aboard three Navy amphibious ships.

Cuba's president confirmed his government held recent discussions with US officials as the nation faces a severe energy crisis attributed to the ongoing American blockade. The talks address humanitarian power shortages affecting millions, with blackouts persisting for weeks. US diplomats renewed alerts for Iraq but no direct link to Cuba noted. Observers see potential for eased restrictions if negotiations advance.

Cuba's president confirmed his government held recent talks with US officials as the nation grapples with a major energy crisis exacerbated by the ongoing American blockade. The discussions aim to address crippling power shortages affecting millions. This diplomatic outreach occurs against backdrop of US Middle East deployments drawing resources. Outcomes of the talks remain undisclosed, with energy imports strained.

Cuba's president confirmed on March 14, 2026, that his government held recent discussions with U.S. officials as the nation grapples with a severe energy crisis exacerbated by the American blockade. The talks focused on humanitarian aid and potential easing of restrictions, amid blackouts affecting millions. Cuban officials described the dialogue as 'constructive,' while U.S. sources noted exploring limited cooperation. Analysts suggest this could signal a diplomatic thaw with implications for regional stability.

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From fuel caps to four-day work weeks, the Middle East conflict has left the world’s top crude oil importing region desperate to shore up suppliesDonald Trump has scrambled in recent days to reassure the world that the economic impact of his war on Iran can be contained.Sure, one of the most important waterways in global trade has, in effect, been shut for almost two weeks – but it might reopen before long. In the meantime, US oil-related sanctions on “some countries” will be lifted. And besides, the entire conflict could be over soon. Continue reading...