From Boston to Denver, US Drivers Cut Back as Iran War Pushes Fuel Costs Higher

 A nozzle pumps diesel into the fuel tank of bus in Orange, Calif., Tuesday, April 7, 2026. (AP)
A nozzle pumps diesel into the fuel tank of bus in Orange, Calif., Tuesday, April 7, 2026. (AP)
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From Boston to Denver, US Drivers Cut Back as Iran War Pushes Fuel Costs Higher

 A nozzle pumps diesel into the fuel tank of bus in Orange, Calif., Tuesday, April 7, 2026. (AP)
A nozzle pumps diesel into the fuel tank of bus in Orange, Calif., Tuesday, April 7, 2026. (AP)

Boston resident Pat Ouedraogo has cut longer-distance trips, while aspiring law student Skyler Burke drives extra miles to avoid pricier gasoline pumps closer to home. In Houston, auto broker David Wright has switched from a gas-guzzling race car to an all-electric vehicle.

These struggles are being echoed by motorists across the United States, many of whom have grown increasingly wary of the Iran war as it drives fuel prices toward record highs.

Energy market experts have described the six-week-old war as the worst oil-supply disruption ever as major production facilities have been hit and a key shipping passage has effectively closed.

"It's a situation where you feel powerless about these prices," Ouedraogo said, while pumping a few gallons of gasoline into his Nissan SUV at a Shell station that was charging $4.99 a gallon.

Average US gasoline prices stood at $4.16 a gallon on Friday, while diesel averaged $5.67, the most that consumers have paid at the pumps ahead of the peak summer travel season since Russia's February 2022 invasion of Ukraine roiled global energy markets, data from GasBuddy showed.

Those prices translate into an estimated $10.4 ‌billion increase in US gasoline ‌and diesel spending this year compared with the same March 1-April 10 period last year, since ‌the ⁠war began, GasBuddy's Patrick ⁠De Haan said.

For Houston-based trucker Eddie Esquivel, the surge in diesel prices has translated into a near-doubling of his weekly expenditures to $1,600-$1,700 from $800-$900 before the war.

"These prices are hitting real hard. Diesel was $2-something a gallon. Now, it could hit $6," Esquivel said at a QuikTrip filling station in South Houston, Texas.

"You got truck payments, you got to buy tires, you got to do oil changes, and you got a family," Esquivel said. "This is killing us."

POLITICAL FALLOUT FROM PUMP PRICES

To be sure, consumers are paying dearly for fuel across the world, as Iran's blockade of the Strait of Hormuz has starved Asian and European markets of Middle Eastern oil supplies.

The United States is the world's largest fuel consumer, so pump prices hold a unique significance in American politics.

The searing economic ⁠pain felt by motorists due to the persistence of Russia's war in Ukraine had been a ‌major influence in their decision to elect Donald Trump as president in November 2024.

Now, just ‌months ahead of midterm US elections in November, Americans' approval of Trump has crashed to new lows as they square his campaign promises of lower energy costs ‌against the sharpest increase in consumer prices in nearly four years in March due to the record surge in fuel prices.

"I definitely won't ‌be voting for (the Republican) party or anyone affiliated with this president right now who is in office at all," Kari DyLong said while filling up her pickup truck at a service station outside of Denver.

To make matters worse, the elevated gasoline prices are expected to linger even after Trump eventually decides to end US military involvement in Iran, according to the US government's own admission.

Delegations from the United States and Iran are set to hold talks in Pakistan on Saturday aimed ‌at reaching a permanent ceasefire deal after a fragile two-week truce announced earlier this week.

However, even if such a deal is struck, oil and fuel prices are unlikely to return to their pre-war levels ⁠in quick order, analysts said earlier this ⁠week. US consumers will continue to pay the highest prices in years to fill up their vehicles or fly over the summer, they said.

"We still expect a lingering geopolitical risk premium to remain in the market," said Wei Ren Gan, analyst at consultancy Rystad.

"Rather than a rapid recovery to pre-war levels, prices are likely to soften gradually and could remain relatively higher than pre-war benchmarks."

About 2 million barrels per day of Middle Eastern refining capacity has been knocked out of service due to damage in the ongoing war, according to Macquarie analysts.

DEMAND DESTRUCTION

Signs of demand destruction due to the high gas prices have begun to show in US government data. Gasoline demand in the country in the week before Easter stood at just 8.6 million barrels a day, down 9% from last year's Easter demand.

Other indicators show the extent of hardships consumers are facing: pawn loan transactions have surged 9% as gas prices surpassed $4 a gallon, said Tim Jugmans, financial chief at pawn loan provider EZCORP.

For Denver resident DyLong, the cratering of demand has come in the form of cutting back on personal excursions over the weekends. She faces a 40-minute commute to get to her job as a sales manager for craft brewer Oskar Blues.

"I'm doing things way more at home and not venturing out because I'm having to spend a bigger portion of my paycheck now towards gas to get me to work," she said.



China Factory Activity Returns to Expansion Riding AI Global Boom

 A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)
A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)
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China Factory Activity Returns to Expansion Riding AI Global Boom

 A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)
A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)

China's factory activity returned to expansion in June, driven by demand for chips, computers and other AI-related products, as robust export orders and front-loading to the United States to get ahead of tariffs offset weakness elsewhere in the economy.

The data suggest global AI investment is providing an important cushion for manufacturers in China's $20 trillion economy, even as disruption from the Middle East conflict and a prolonged property slump continue to weigh on broader growth.

The official manufacturing purchasing managers' index (PMI) rose to 50.3 in June from 50.0 in May, according to a survey by the National Bureau of Statistics (NBS). It beat a median forecast of 50.0 in a Reuters poll.

"Exports to meet international demand for chips and other AI-related products, as well as front-loading to get ahead of new US Section 301 ‌tariffs due late ‌July and improved domestic demand due to lower upstream costs underpinned the improvement," said ‌Dan ⁠Wang, China director ⁠of consultancy Eurasia Group.

The number of domestic infrastructure projects ticked up over the last month too, she added. US retailers have brought forward orders from China by four to six weeks to secure their inventories for Black Friday and Christmas holiday sales before the expected tariff hikes later this year, shipping executives said.

The sub-index for new export orders returned to expansion in June, rising to 50.1 from 48.6, while the production and overall new orders gauges edged up to 51.4 and 51.2 from 51.2 and 49.9, respectively.

Factory gate prices slipped to 48.2 from 51.9 in May, however, following five months of expansion, with ⁠employment also continuing to trend downward.

"The export strength is set to continue, driven by ‌global AI investment demand," said Xu Tianchen, senior economist at the Economist Intelligence ‌Unit. "Second, more policy easing will come."

"For example, fiscal spending has lagged behind budget arrangements, and it should accelerate in the coming months. There ‌is also room for monetary easing," he added.

The non-manufacturing PMI, which includes services and construction, improved to 50.2 ‌versus 50.1 in May, while the composite PMI came in at 50.6 compared with 50.5 a month earlier.

AI BOOM OR BUST

With the property crisis showing little sign of stabilizing and household spending remaining subdued, policymakers face the challenge of managing a two-speed economy.

There is enormous international demand for semiconductors powering data centers and advanced electronics, playing to China's manufacturing strengths, but there does not seem ‌to be much demand for anything else.

Exports of furniture, for example, grew just 1.9% in value terms year-on-year, according to the latest trade data for May, while shipments of ⁠automated data processing equipment ⁠jumped 60% over the same period.

Furthermore, retail sales, a proxy for domestic demand, fell for the first time in over three years, the most recent data for May showed, along with a faster slump in new home prices.

Julian Evans-Pritchard, head of China Economics at Capital Economics, said the improvement "remains heavily dependent on exports and AI-related tech," and warned that "despite the improvement in activity, the manufacturing sector appears to be slipping back into deflation."

China has set a 2026 growth target of 4.5% to 5.0%, slightly below last year's 5% expansion.

With signs of precautionary buying in the wake of Middle East-related price pressures fading, input costs rising and overseas customers running down inventories while awaiting a ceasefire, Chinese manufacturers may increasingly need demand from the world's largest consumer market to regain momentum.

A closely watched meeting in May between US President Donald Trump and Chinese leader Xi Jinping, however, produced no meaningful breakthroughs, whether on tariffs or Beijing using its influence over Tehran to end the Iran war.

"The sluggish data from the past few months will likely result in a notable slowdown in second-quarter GDP," said Lynn Song, chief economist for China at ING.

"We're looking for a slowdown to 4.6% year-on-year, with risks slightly balanced to the downside."


EU's Side of US Trade Deal to Come Into Force on July 1

FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa
FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa
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EU's Side of US Trade Deal to Come Into Force on July 1

FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa
FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa

The European Union's side of a trade deal struck with the United States last year, which will remove import duties on many US goods, will come into force on July 1, said a formal European Union regulatory filing.

The EU said this ⁠regulation would apply ⁠from July 1 until December 31, 2029, Reuters reported.

"Where appropriate, the Commission shall submit together with the comprehensive assessment a legislative proposal to extend ⁠the period of application of this Regulation," added the regulatory filing.

Under the agreement, the EU agreed to remove import duties on US industrial goods and provide preferential access to US farm produce.

It will also extend duty-free imports of ⁠US lobster, ⁠a mini-deal struck with Trump during his first term as president.

The EU legislation expires at the end of 2029 and includes multiple safeguards that would allow the EU to suspend concessions if the United States breaches the trade deal's terms.


Saudi Real Estate Developers Move to Capitalize on New Foreign Ownership Rules

A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)
A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)
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Saudi Real Estate Developers Move to Capitalize on New Foreign Ownership Rules

A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)
A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)

Saudi Arabia's real estate market has entered a new phase of testing the practical impact of the executive regulations governing property ownership by non-Saudis, as listed developers move swiftly beyond welcoming the decision and the initial positive market reaction to translating it into strategic growth plans.

While the sector index has extended its early gains on expectations that the new rules will broaden international demand, the competitive advantage is beginning to shift toward companies with high-quality assets that are ready to be marketed and sold.

The real estate index on the Saudi stock market posted a sharp gain following the announcement, rising from 2,924 points to 3,044 points. The increase was driven by investor expectations that allowing non-Saudis to own property under specific regulations would expand demand for Saudi real estate assets, particularly in cities and projects with strong investment and religious appeal.

Real estate stocks led the market's gainers in the session following the announcement. Shares of Umm Al Qura for Development and Construction (Masar) hit the daily 10 percent limit, while Knowledge Economic City rose about 9.3 percent. Jabal Omar Development, Retal, Emaar The Economic City, and Makkah Construction and Development also posted strong gains.

Financial and economic adviser Dr. Hussein Al Attas told Asharq Al-Awsat that allowing non-Saudis to own property represents an important structural shift for Saudi Arabia's real estate market, but said the impact will not be uniform across all developers. Instead, the market will increasingly differentiate between companies with attractive assets and projects in locations targeted by international investors and those without them.

Master plan of the Masar Makkah destination (Masar)

He added that asset quality, location, financial strength, the size of developable land holdings, and the ability to attract international investors will be among the key factors determining how much companies benefit from the decision in the coming period.

Al Attas expects the sector to perform positively over the medium to long term. However, he said the real impact of the decision will ultimately be measured by companies' ability to turn this opening into actual sales, partnerships, and cash flows, rather than by the initial rise in share prices following the announcement.

In the first concrete move by a listed company since the regulations were approved, Jabal Omar Development on Sunday outlined its strategy for capitalizing on the decision after its project in Makkah was included within the geographic areas where non-Saudis are permitted to own property.

The company said the decision would broaden its base of potential investors and property owners among Muslims around the world, supporting demand for its real estate assets. It also announced plans to offer 400 existing hotel residential units for sale this year as the first phase of the program, with the proceeds earmarked to reduce debt and lower financing costs.

The company also plans to redesign the seventh and final phase of the project by increasing the number of hotel residential units available for sale while making greater use of off-plan sales programs to reduce financing requirements and strengthen reliance on internally generated liquidity.

Al Attas said the market's response to the regulations has unfolded in two stages. The first was a broad wave of optimism that lifted most real estate companies. The second has begun as investors seek to identify the companies best positioned to convert the decision into tangible growth in sales, cash flow, and profitability.

The decision to allow non-Saudis to own property forms part of a broader package of measures introduced by the Kingdom in recent months to restore balance to the real estate market and strengthen its investment appeal.

These measures include allowing the sale, purchase, and development of land in new areas north of Riyadh, increasing fees on undeveloped land, imposing fees on vacant properties, and freezing annual rent increases in Riyadh for five years.

The decision also coincides with signs of improving real estate and construction activity across the Kingdom. The construction sector returned to growth in May, supported by stronger residential building activity and renewed growth in new orders.

Although the full impact of the regulations will take time to emerge, recent moves by real estate developers indicate that the market has already begun shifting from expectations to execution as companies seek to attract a new segment of investors and buyers from outside the Kingdom.