The crisis in the Middle East has triggered price increases and wage stagnation in the US, UK, and other developed nations.
According to Oxu.Az, the Financial Times reports that the closure of the Strait of Hormuz has sharply raised fuel and airfare prices, pressuring consumer spending in the US, Britain, and several other countries.
In April, annual inflation in the US reached 3.8%, while average hourly wages grew only 3.6%. This marks the first time in two years that prices have risen faster than wages.
The Eurozone is experiencing an energy shock, delivering another blow to workers who had just recovered from the 2022 inflation crisis.
The Financial Times also highlights the impact of the EU's new climate regulations. Major European airlines will see additional costs rise by at least 1.5 billion euros each.
Brussels is considering extending the Emissions Trading System (ETS) to flights within the union. According to consulting firm Transition Metrics, this change will primarily affect large carriers like Lufthansa, British Airways, and Air France-KLM.
By 2027, their extra costs will reach €1.8 billion, €1.7 billion, and €1.5 billion respectively. Transition Metrics head Jan Arens warns that if passed to passengers, a Frankfurt-Beijing ticket could increase by €100.
Airlines are already struggling to hedge against 2027 requirements, as ticket sales for next year's long-haul flights begin now.
