#energy-costs--inflation

#energy-costs--inflation

Amazon is offering fuel savings for Prime members on Fridays - up to 20 cents per gallon - through May 29, aiming to attract cost-conscious shoppers.

Neil Bellamy, consumer insights director at GfK, stated that soaring fuel prices and the prospect of higher energy costs serve as constant reminders of the inflationary shock from the war, leading to consumer jitters.

Even post-conflict, we expect [that] some of the trade flows [will] tend to reset rather than return to what they were before the war, said Rob Wilson of the energy data and consulting firm East Daley Analytics.

China's stockpiling surged in 2025 due to relatively low oil prices tied to softer demand, rising geopolitical risks, and a new domestic energy law requiring more reserves.

Traders are simultaneously pricing in two contradictory scenarios: continued political de-escalation on one hand, and the possibility of renewed escalation on the other. This fragile balance leaves the market vulnerable to sudden movements, especially given oil prices' high sensitivity to geopolitical developments in the Middle East.

The IEA sees global oil demand falling by 80,000 barrels per day this year, compared with a projected year-on-year rise of 640,000 bpd in its previous monthly report.

The country is at risk of 'stagflation' - where slow economic growth is combined with rising inflation - as the energy crunch brought about by the war in the Middle East hits.

By weaponising the Strait of Hormuz, Tehran has helped drive energy prices sharply higher, forced the International Monetary Fund to slash its forecasts for UK growth and, now, has pushed the British government into preparing for food shortages at home.

Shipping costs have increased by more than 10 percent in the past month due to the US-Israel war on Iran. The 60-day waiver for the Jones Act aimed to lower energy costs but has had little impact on oil prices, which continue to rise amid the ongoing conflict.