US war costs near $29bn as Iran conflict rattles global economy
US military spending is climbing toward $29 billion, with Harvard research indicating approximately $2 billion is spent daily on immediate war costs. Harvard war budgeting expert Linda Bilmes warned this is "the tip of the iceberg." The Iran conflict has disrupted supply chains, with lubricant manufacturers absorbing a 50 percent production cost increase. Car dealerships like Vertu Motors reported lower profits as fuel costs rose 31 percent since late February.
China asks Pakistan to help mediate US-Iran crisis
China's Foreign Minister Wang Yi called on Pakistan to intensify mediation in the Iran crisis during a call with counterpart Ishaq Dar, expressing Beijing's support for Islamabad's role in facilitating negotiations between Washington and Tehran. US President Trump arrived in Beijing for his first summit with President Xi Jinping since 2017, with the Iran war threatening to overshadow discussions. Trump said Washington will "win it one way or the other" and does not need China's help with Iran. China is diversifying energy sources, with 15 tankers departing the US for China in April alone amid Gulf disruptions.
War on Iran Tests BRICS Unity at New Delhi Talks
The US-Israeli war on Iran is testing the BRICS grouping's ability to reach a unified position at a foreign ministers meeting in New Delhi. Iran urged India, the 2026 BRICS chair, to build consensus condemning US and Israeli actions in the Gulf conflict launched on February 28. Main differences have emerged between Iran and the United Arab Emirates, which carried out military strikes in retaliation. Some BRICS members are directly involved in the conflict, making consensus difficult. China has taken a nominally neutral stance and will be represented by Ambassador Xu Feihong rather than Foreign Minister Wang Yi.
Wholesale Inflation Jumps Most Since 2022 on Hormuz Conflict
U.S. wholesale inflation jumped 1.4 percent in April, the biggest monthly gain since March 2022, according to the Labor Department. The year-over-year Producer Price Index rose 6.0 percent, the largest increase since December 2022, well above the 0.5 percent gain economists had forecast. Energy prices alone surged 7.8 percent, driven by the U.S.-Israeli conflict with Iran disrupting shipping through the Strait of Hormuz. The acceleration poses a challenge for the Federal Reserve, which tracks the Personal Consumption Expenditures price index for its 2 percent inflation target.
SoftBank posts $12B profit as OpenAI investment soars
SoftBank Group reported a net profit of 1.9 trillion yen ($12.05 billion) for the January-March quarter, its fifth consecutive profitable period. The Vision Fund recorded a 3.1 trillion yen investment gain driven almost entirely by OpenAI, in which SoftBank holds an approximately 13% stake after committing $64.4 billion, including $30 billion pledged in 2026. S&P Global Ratings revised its outlook for SoftBank to "negative" in March, citing concerns about the company's debt load. SoftBank is responding by divesting stakes in T-Mobile and Nvidia while issuing bonds and loans backed by Arm.
BYD in talks to take over European factories from Stellantis
BYD confirmed on May 13 it is negotiating with Stellantis and other European automakers to take over underused factories in the region. The talks mark a significant shift in the global automotive landscape as Chinese manufacturers seek to establish European production capacity. By acquiring existing facilities, BYD could sidestep logistics challenges and tariff concerns while strengthening its presence closer to European consumers. The negotiations come as Chinese EV brands aggressively expand into European markets amid intensifying competition in the continent's electric vehicle sector.
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- Third Passenger Dies as Andes Hantavirus Spreads on Cruise Ship. Three dead and 11 infected aboard the MV Hondius in what scientists call the first documented person-to-person spread of the Andes virus strain outside South America, with a 40% fatality rate and no vaccine.
- Oil stocks fall at record pace as Hormuz closure squeezes supply. The IEA said nations are depleting strategic oil reserves at a record pace after Iran closed the Strait of Hormuz to Gulf exports, with 164 million barrels already released from emergency stocks and shortages feared ahead of summer travel.
- Airlines cancel 13,000 flights in May as fuel costs soar. Jet fuel prices have doubled as the Middle East conflict squeezes supply, prompting carriers including Turkish Airlines and Lufthansa to slash thousands of flights while airlines raise ticket prices and baggage fees.
- Ancient proteins reveal H. erectus bred with Denisovans. Proteins extracted from six H. erectus individuals in China show a mutation shared with Denisovans and some modern humans, providing the first genetic evidence of interbreeding between the two hominin groups.
- Philippine senator barricaded in Senate over ICC warrant. Senator Ronald Dela Rosa, who ran Duterte's anti-drug campaign, faces a crimes-against-humanity warrant. The Senate is blocking his arrest as protests mount outside the building.