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Mar 12, 2026 - World

The catastrophic rise in oil prices as a result of the war with Iran will last far longer than experts had first expected, a political analyst has warned.Elizabeth Saunders has suggested that the closure of the Strait of Hormuz will lead to a price hike on oil that will stick around for much longer than experts had first suggested. Speaking to Greg Sargent of The New Republic, Saunders claimed the longer-term struggles of the oil price hike would be felt in the US for some time yet. She said, "This is one of those shocks that is going to be very hard to get back to any sort of status quo before the war. And there’s also no end in sight, because this is not like when the container ship got stuck in the Suez Canal, right? Remember, istheboat stuck.com? Once the boat is unstuck, the canal reopens.""This is not going to be like that, because the Iranians have so much weaponry and power and they’re not going anywhere, because that’s where they live. And so you now basically have 20 percent of the world’s oil flow held hostage, essentially, by Iran."And this has always been a threat. And one of the big reasons why presidents for 20 years who’ve considered striking Iran have been deterred from doing so is because this is such a dramatic shock to the world economy. The oil market is global. And so it’s not as though we can just pump more oil out of the ground in the U.S. to make up for it. It’s a global energy market."Nobel Prize-winning economist Paul Krugman also wrote at the time, "Although we import some oil, mainly from Canada and Mexico, while exporting even more oil, mainly from Texas, we buy hardly any oil from the Persian Gulf."Some people have been shocked at the way U.S. gasoline, diesel and heating oil prices have soared over the past few days. But they shouldn’t have been surprised.""It’s almost inconceivable that 1970s-type price controls or excess profits taxes would be imposed today. So US prices of gasoline and other oil products reflect world crude prices, and the fact that America produces a lot of oil doesn’t matter at all."

Mar 12, 2026 - World

Trump is seething over Iran's exploitation of one of his biggest political vulnerabilities as soaring oil prices threaten to undermine his ability to declare victory in the war and devastate his economic messaging ahead of midterms.While the president attempts to put on a happy face over the military successes in Operation Epic Fury, Iran's deliberate disruption of energy markets has become an acute political headache. The regime is weaponizing oil prices—Trump's most visible economic liability—as a strategic response to the military campaign.According to Axios, Trump administration officials warn that the conflict could extend indefinitely if Iran successfully throttles the Strait of Hormuz and drives prices beyond Trump's tolerance threshold. "The Iranians f------ around with the Strait makes him more dug in," a senior administration official told Axios, describing a vicious cycle where energy market manipulation only hardens Trump's commitment to prolonging the conflict.RELATED: Iran is scheming to 'freak Trump out' by going after his 'soft underbelly': expertOil has already become Trump's obsession, consuming as much of his attention as battlefield intelligence. A Trump adviser acknowledged the internal tension: "The president sees the briefings. He sees the numbers. And he feels good about his decision, militarily. Oil is another matter. No one is panicking, but it's a concern. He's pulling out the stops. There's plenty of oil. It's just getting it on the market that's the thing."Trump's preferred price point is $50 per barrel. The oil industry targets around $60. Despite Trump's intervention, crude topped $100 Wednesday night after spiking as high as $120 earlier in the week.Iran has threatened to push prices to $200 per barrel—a move that would translate to approximately $5 per gallon at U.S. pumps, according to analysts.Domestically, the war is deeply unpopular. Trump's personal approval ratings are at historic lows, and gas prices—once his signature economic achievement—have become his most visible political liability heading into critical midterm elections.You can read more here.

Mar 12, 2026 - World

European Commission says it will suspend €2m grant if organisers of arts festival go ahead with proposalsThe European Commission has warned it will cut funding for the Venice Biennale if organisers go ahead with plans to include Russia.The commission reiterated that any breach of ethical standards by the art festival would be treated as a violation of contract, leading to suspension of the €2m (£1.7m) agreement. Continue reading...

Mar 12, 2026 - World

Iraq’s national security adviser Qassim al-Araji says he told Australian ambassador that countries should repatriate prisonersGet our breaking news email, free app or daily news podcastA senior Iraqi government official has implored Australia to repatriate a group of suspected Islamic State fighters, raising the issue with Canberra’s top diplomat in Baghdad just weeks after the detainees were transferred out of Syria.In a post on X, Iraq’s national security adviser, Qassim al-Araji, said he met with ambassador Glenn Miles last week, and told him that foreign detainees should be returned to their home countries. This is despite such a task being made more difficult by growing instability in the region, caused by the war in Iran. Continue reading...

Mar 12, 2026 - World

Chief executive of Acoss, who undertook the study, says ‘it’s clear this tax break funnels billions into the wealthiest parts of our country’Get our breaking news email, free app or daily news podcastInvestors who live in the wealthy electorate of Wentworth in Sydney’s eastern suburbs claimed about $1.8bn from the 50% capital gains tax discount, according to new research. It reveals how a handful of rich enclaves in Australia’s two biggest cities account for a fifth of the annual benefit from the tax break.The Australian Council of Social Services is lobbying for a halving of the CGT discount and has used analysis of Australian Taxation Office data from 2022-23 to highlight how the benefits “flow overwhelmingly to a small number of high-income, inner-city electorates in the eastern states”. Continue reading...