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Donald Trump warns Nato faces ‘very bad future’ if allies fail to help US in Iran
Donald Trump has warned that Nato faces a “very bad” future if US allies fail to assist in opening up the Strait of Hormuz, sending a blunt message to European nations to join his war effort in Iran. The US president told the FT in an interview on Sunday that he could also delay his summit with China’s President Xi Jinping later this month as he presses Beijing to help unblock the crucial waterway. “It’s only appropriate that people who are the beneficiaries of the strait will help to make sure that nothing bad happens there,” Trump said, arguing that Europe and China are heavily dependent on oil from the Gulf, unlike the US. “If there’s no response or if it’s a negative response, I think it will be very bad for the future of Nato,” he added. Trump’s comments, made in an eight-minute phone call with the FT, came a day after he appealed to China, France, Japan, South Korea and the UK to join a “team effort” to open up the chokepoint through which a fifth of the world’s oil passes. Iran in effect shut the strait after the US and Israel launched their war more than two weeks ago, sparking fears of a new oil price shock for the global economy. Financial Times, March 16

India hails talks with Iran to open Strait of Hormuz
India has hailed its direct talks with Iran as the most effective way to restart shipping through the Strait of Hormuz, after Donald Trump called on countries to send warships to help the US force open the critical waterway for energy markets. Trump’s call for China, France, the UK and other countries to send “War Ships” to the Strait comes as governments hit by surging energy prices following Tehran’s closure of the waterway weigh up their options, including talks with Iran or military involvement that would risk dragging them into the spiralling Middle East conflict. India’s foreign minister S Jaishankar told the FT that negotiations between New Delhi and Tehran which allowed for two Indian-flagged gas tankers to pass through the Strait on Saturday were an example of what diplomacy could bring. “I am at the moment engaged in talking to them and my talking has yielded some results,” he said in an interview. “This is ongoing. If it is yielding results for me, I would naturally continue to look at it.” “Certainly, from India’s perspective, it is better that we reason and we co-ordinate and we get a solution than we don’t,” he added. “So, if that sort of allows other people to engage, I think the world is better off for it.” Financial Times, March 15

Starmer says UK 'working with allies' on plan for Strait of Hormuz after Trump call
The prime minister, Keir Starmer, says it is clear the US operation has "massively weakened" the military capability of the "abhorrent regime in Iran". But after the conflict Starmer says there is going to need to be some sort of "negotiated agreement" limiting Iran's ability to rebuild their nuclear programme and secure international shipping. He says the Strait of Hormuz must be reopened to "ensure stability in the markets". "That is not a simple task," he says, which is why the UK is working with "all of our allies" to bring a "viable plan" to restore freedom of navigation to the region. BBC news, March 16

UK: food prices will be forced up by Iran conflict, farmers warn
The Iran conflict will trigger the biggest spike in food prices since the invasion of Ukraine, the president of the National Farmers’ Union has claimed. His warning comes as ministers will promise for the first time to hold food production at present levels, as part of a government blueprint for land use this week. Tom Bradshaw told The Times that while food inflation was unlikely to surpass the 19.1 per cent rise in the year to March 2023, the conflict had triggered an “inflationary wave” that would probably peak in the autumn. He also said that profiteering by fuel and fertiliser suppliers may also be worsening inflation. By targeting tankers in the Strait of Hormuz, Iranian forces have disrupted trade in two of the biggest agricultural necessities: oil and fertiliser. Before the US and Israel bombed the Islamic Republic, a fifth of the world’s seaborne trade in oil and gas flowed through the strait, along with a third of that in fertiliser, which is made from gas. The Times, March 16

China urges US to correct 'erroneous ways' over trade probes ahead of Paris talks
Beijing said on Monday it has "lodged representations" and urged Washington to "correct its erroneous ways" after the US launched new trade probes last week, with negotiators from both countries meeting in Paris. Washington's trade investigations target 60 economies, including China, and will look into "failures to take action on forced labour" and whether these burden or restrict US commerce. Those investigations came a day after a separate set of US probes centred on excess industrial capacity that target 16 trading partners, including China, which Beijing's foreign ministry criticised as "political manipulation". "We urge the US side to immediately correct its erroneous ways, meet China halfway … and resolve issues through dialogue and negotiations," Beijing's commerce ministry said in a statement. France 24, March 16

Google scraps AI search feature that crowdsourced amateur medical advice
Google has dropped a new artificial intelligence search feature that gave users crowdsourced health advice from amateurs around the world. The company had said its launch of “What People Suggest”, which provided tips from strangers, showed “the potential of AI to transform health outcomes across the globe”. But Google has since quietly removed the feature, according to three people familiar with the decision. A Google spokesperson confirmed “What People Suggest” had been scrapped. The move came as part of a “broader simplification” of its search page and had nothing to do with the quality or safety of the new feature, the spokesperson said. The revelation comes as the company faces mounting scrutiny over its use of AI to provide millions of users with health information and advice. The Guardian, March 16

US temporarily lifts sanctions on Russian oil at sea as Iran war sees global prices surge
The United States has temporarily waived sanctions on Russian oil stranded at sea as Trump administration officials attempt to reverse a surge in prices that is causing mounting apprehension about global supplies. Scott Bessent, the US Treasury secretary, announced a “temporary authorization” late on Thursday, allowing countries to buy the stranded Russian oil for 30 days. Trump is “working to keep prices low”, he said, after average US fuel prices rose by 65 cents per gallon in a month. “This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction,” Bessent claimed. Brent crude, the international benchmark, remained above $100 per barrel during early trading on Friday despite this latest in a string of measures designed to soothe concerns around the economic impact of the US-Israel warn on Iran. The Guardian, March 13

Gulf states lose $15bn in energy revenues since start of war
Gulf oil producers have lost an estimated $15.1bn in energy revenues since the start of US and Israeli strikes on Iran, with millions of barrels of crude trapped by the near-shutdown of the Strait of Hormuz. According to estimates by commodities analytics firm Kpler, the strait typically carries about $1.2bn worth of crude oil, refined products and liquefied natural gas each day, based on average prices and volumes in 2025. Since the conflict escalated on February 28, traffic through the critical shipping route has largely stopped, with Iran attacking vessels and insurance premiums soaring. The total lost revenue lays bare the financial cost of the war for Gulf states that are heavily reliant on commodity sales to fund their governments. The waterway now sees only “negligible” flows compared with prewar levels, said Florian Gruenberger of Kpler. Among the halted shipments, crude oil accounted for the largest share, representing 71 per cent of the value. Financial Times, March 13

Zelensky in Paris to discuss increasing pressure on Russia as US peace talks stall
Ukrainian President Volodymyr Zelensky arrived in Paris on Friday, his spokesman said, for talks with President Emmanuel Macron on ways to increase pressure on Russia. "The president is already in Paris," Zelensky's spokesman Sergiy Nykyforov told reporters, including AFP journalists. The visit comes as talks brokered by the United States to end the four-year invasion have been derailed by the US-Israeli war with Iran. The talks between Macron and Zelensky will focus on increasing sanctions pressure on Russia by targeting its "shadow fleet" of tankers used to transport oil in breach of sanctions imposed over the 2022 invasion of Ukraine, the French presidency said. Zelensky and Macron are also expected to discuss diplomatic efforts to halt the war in Ukraine, Macron's office said. The Kremlin said the planned meeting would obstruct the peace process and that the "very idea of trying to put pressure on Russia is absurd". France 24, March 13

UK chancellor to make new push for greater single-market access
Chancellor Rachel Reeves will next week make another push for Britain to secure greater access to the single market against a backdrop of renewed trade strains between London and Brussels. Reeves will use her Mais economic lecture to pitch her vision for closer ties with the EU, which is central to a new growth strategy for the UK. “It will be a statement of intent,” said one person close to the chancellor. But her agenda is meeting resistance in some European capitals. Talks in Brussels about a limited “reset” of relations - covering a youth mobility scheme and a removal of barriers to trade in agricultural products and energy - have dragged on for months. Many European capitals and EU diplomats are also wary about Reeves’ idea of re-engaging with the single market on a sector-by-sector basis in future years. “When I speak to people in Paris and Berlin, there’s not much enthusiasm,” said Charles Grant, director of the Centre for European Reform, an independent think-tank. “It feels like it’s cherry picking.” Financial Times, March 13

UK economy saw zero growth in January ahead of Iran war
The UK economy unexpectedly failed to grow in January, ahead of the outbreak of the US-Israeli war with Iran. The zero growth for the month was weaker than had been predicted and followed growth of 0.1 per cent in December. The overall picture is "subdued", said the Office for National Statistics, while analysts called it a "disappointing start to the year". The figures underscore that the economy was fragile even before the outbreak of Middle East conflict, which has caused a major energy shock that could have a ripple effect around the world. The longer the war lasts, the more likely it is that there will be an effect on the UK economy, Prime Minister Sir Keir Starmer warned this week. While households under Ofgem's energy price cap will be protected from rising energy prices until July, increased fuel costs are already being felt at the petrol pump and by heating oil users. It could push up inflation, which before the conflict was on track to reach the Bank of England's 2 per cent target by spring. BBC news, March 13

Fujitsu failed to pay ‘a single penny’ of £2bn Horizon bill
Fujitsu has yet to contribute a single penny to the £2 billion cost of compensation for victims of the Post Office Horizon scandal despite acknowledging a moral obligation to do so more than two years ago, MPs will say today. A report by the House of Commons business and trade committee said progress had been made in compensating victims, with more than 11,300 claimants having received payments and £1.44 billion distributed so far. However, it noted that “serious structural failings persist” in the redress system and condemned Fujitsu for failing even to offer an interim payment while the taxpayer shoulders the bill. The MPs highlighted that the Japanese technology company continues to benefit from substantial public sector work. The committee’s intervention furthers growing political discontent that a firm so deeply entwined in the scandal has still not contributed anything to victims. Fujitsu supplied the Horizon computer system whose faulty accounting data was used for years as the basis for accusations of theft, fraud and false accounting against sub-postmasters. Yet the company says substantive decisions on redress should await the final publication of Sir Wyn Williams’s public inquiry report. The Times, March 13