Gold Is Heading For Its Fourth Consecutive Weekly Loss Despite Its Rise.
Money and Business Economy News – Follow-up Gold prices rose more than 1 percent on Friday, supported by buying, but are on track for a fourth consecutive weekly loss as rising energy prices fueled inflation concerns and reinforced expectations of a global interest rate hike.
By 0228 GMT, spot gold had advanced 1.1 percent to $4,428.30 an ounce, but the precious metal was down about 1.3 percent since the start of the week.
The dollar weakened, making gold, which is priced in US dollars, cheaper for holders of other currencies.
Gold has fallen by about 17 percent since the start of the US-Israeli war on Iran on February 28, pressured by the rise of the dollar, which has increased by more than two percent during that period.
Brent crude oil prices surpassed $105 a barrel, raising concerns about inflation as the conflict brought shipments through the Strait of Hormuz, a key waterway for about one-fifth of global crude oil and liquefied natural gas flows, to a near standstill.
Rising oil prices threaten to increase transportation and manufacturing costs, further fueling inflationary pressures. While inflation typically enhances gold’s appeal as a hedge, rising interest rates put pressure on the non-yielding metal.
According to the CME FedWatch tool, traders are completely ruling out any easing of US monetary policy in 2026, compared to previous expectations that pointed to two interest rate cuts before the outbreak of theconflict.
US President Donald Trump said he would extend the deadline before launching strikes on Iranian energy facilities until April, adding that talks with Iran were going “very well.”
However, an Iranian official criticized the US proposal to end the war, calling it “unilateral and unfair.”
As for other precious metals, the price of silver in spot trading rose 1.1 percent to $68.80 an ounce.
Platinum rose 2.1 percent to $1,865.13 in spot trading, while palladium gained 2.7 percent to $1,389.80.
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The European Central Bank Warns Of Financial Pressures Due To The Iran War
Banks Economy News – Follow-up Luis de Guindos, vice president of the European Central Bank, said that banks in the Eurozone have limited direct exposure to the war in the Middle East, but the conflict could lead to systemic pressures given the interconnectedness of vulnerabilities.
Financial markets have been under pressure in recent weeks due to the impact of the US-Israeli war on Iran, but selling outside the Middle East has remained limited even as some assets remain at levels above their fair value.
“The repercussions for the financial sector in the Eurozone remain limited so far,” De Guindos said in a statement on Thursday, according to Reuters.
He added: “The banks’ direct exposure to the region is limited, and the banking system is in a good position thanks to strong profitability and strong capital and liquidity reserves.”
But de Guindos said there were wider risks given the interconnectedness of the financial system, adding: “In an already heightened state of global uncertainty, this conflict could expose a web of vulnerabilities and cause systemic stresses.”
He stated that the war threatens to undermine market confidence at a time when asset valuations are rising, which could lead to a sharp repricing of risks for banks and governments, with increased pressure in the non-bank financial sector.
De Guindos reiterated the European Central Bank’s warning of rising inflation and slowing growth due to the war, but said it would take more time to understand the full impact. “We are firmly committed to ensuring that inflation reaches our 2% target over the medium term,” he said. https://www.economy-news.net/content.php?id=67164
How Has The Iran War Affected Global Air Freight Rates?
Money and Business Economy News – Follow-up The military escalation in the Middle East is no longer just putting pressure on oil and energy markets; it has begun to impact air freight, one of the most sensitive sectors of global trade. With the closure of major airspaces, disruptions to transit traffic in key hubs like Dubai and Doha, and soaring jet fuel and insurance prices, air freight rates have skyrocketed. Meanwhile, disruptions to maritime shipping have prompted some companies to shift from sea to air freight despite the higher costs.
World ACD Reveals Air Freight Data:
The average global air freight rate rose during the week ending March 15, 2026 by 10% week-on-week to $2.67 per kilogram inclusive of fees, following an 8% increase the previous week.
Global spot prices rose by 12% to $3.19 per kilogram, while the biggest jump was in the Middle East and South Asia, where spot prices reached $4.37 per kilogram, a weekly increase of 22% and an annual increase of 58%.
On some of the main tracks, the jumps appeared more pronounced:
Shipping costs from South Asia to Europe have increased by 70%.
From South Asia to North America, 58%.
From Europe to the Middle East, 55%.
This reflects the widening scope of the impact, from a regional crisis to a disruption affecting global supply chains.
Reduced Capacity Fuels Price Increases
This surge is not so much related to a normal increase in demand as it is to a shock in capacity. The closure of airspace, even partially, over a number of Gulf countries, coinciding with the disruption of shipping in the Strait of Hormuz, has pulled out a significant portion of available global capacity, forcing airlines to cancel flights or reroute them via longer and more expensive routes.
Professor of Aviation Management at Surrey University, Nadine Aitani, says that one of the main reasons for the rise in air freight prices is “the sharp decline in the capacity of Gulf airlines after they closed, even partially, the airspace over Qatar, the UAE, Saudi Arabia and Kuwait.”
She adds that Dubai and Doha are among the world’s largest air transit hubs, and that Middle Eastern airlines account for about 13% of global air cargo capacity, meaning that any widespread disruption to them is immediately reflected in the international market.
Aitani told Al Jazeera Net that the problem is not only related to the cancellation of some flights, but also that alternative routes consume more fuel, forcing planes to carry additional quantities of fuel, which reduces the space available for cargo and raises costs at the same time.
Longer Routes
Avoiding the conflict zone has altered the air traffic map on several major trade routes, particularly between Asia and Europe. Instead of transiting through Gulf distribution hubs, many airlines have been forced to operate longer flights with less efficient and flexible stopovers.
Aitani points out that the capacity of the China-Europe air corridor has decreased by more than 35% due to the closure of Gulf distribution centers, while resorting to the sea route around the Cape of Good Hope adds between 10 and 15 days to the transit time, a difference that is not commensurate with the nature of perishable goods or shipments that depend on rapid delivery.
This problem is also evident in what Cathay Pacific CEO Ronald Lam announced, when he explained that many cargo flights to Europe used to stop in Dubai to refuel and load more goods, but the company has started bypassing this stop and heading directly to Europe with cargo restrictions due to the inability to refuel along the way.
From Sea To Air
With some of the shipping traffic in the Gulf disrupted and more than 100 container ships stranded near the Strait of Hormuz, according to Reuters, some companies have turned to diverting some of their goods to air freight, even though this option is several times more expensive than sea freight.
Markets are particularly affected by this shift in the pharmaceutical, food and electronics sectors. Prashant Yadav, a pharmaceutical supply chain expert, told Reuters that some generic drugs and pharmaceutical ingredients coming from India used to be shipped by sea through the strait before being exported to Europe, Africa and some Arab countries, but a number of companies have started shipping them by air to avoid delays and maritime disruptions.
Aitani says that the closure of the Strait of Hormuz has made the ports of the Arabian Gulf unavailable for direct sea freight from Asia, making air transport “the only available option despite the high costs.”
She addsthat companies find themselves facing a difficult equation: either bear the increase in cost, or pass it on to the end consumer.
Fuel And Insurance Premium
The pressure on air freight came not only from a lack of capacity, but also from high operating costs. Jet fuel prices increased by 11% weekly, to about 94% higher than pre-war levels, prompting carriers to impose additional fuel surcharges and war risk surcharges.
Aitani explains that fuel and insurance are two key items in the cost of air transport, and that any increase in them is quickly passed on to customers through additional fees. She warns that continued disruption for three to six months could keep fuel and insurance costs high across global supply chains.
Economist Ahmed Aql says that the war and military tensions have raised oil prices by about 45% since the beginning of the crisis, which has automatically been reflected in the costs of shipping companies.
He adds that changing routes, higher insurance costs, and the closure of some air and sea ports all explain the current surge in prices.
During his interview with Al Jazeera Net, Aql points out that some estimates suggest insurance costs could increase fivefold in some cases, meaning that companies are not only facing a higher fuel bill, but also a larger risk bill related to passing through a conflict zone.
Businesses And Consumers
The escalating unrest began to force real changes in corporate decisions. Major shipping companies like Maersk imposed additional charges for fuel and war risks, while companies like FedEx and UPS resorted to temporary increases and fees on shipments related to the Middle East.
Major airlines have also announced a review of their networks and a reduction in some unprofitable capacity due to high fuel pressure.
Conversely, importing and manufacturing companies have begun to reassess their reliance on air freight itself. As prices rise, this mode of transport is increasingly limited to essential, high-value, or time-sensitive goods, such as pharmaceuticals, fresh food, and certain technological components.
Ahmed Aql believes that the impact of rising shipping costs cannot be separated from inflation, noting that most goods go through one or more stages of transport before reaching the consumer.
Therefore, increased transportation costs, according to reason, are reflected in the final price, weaken purchasing power, and, if they continue, may lead to a reduction in both demand and production, which reinforces fears of inflation, slowdown, and perhaps recession in some economies.
Despite some signs of partial recovery in shipping volumes out of the Middle East and South Asia, the overall picture remains highly volatile.
Some airports and airspaces have resumed limited operations, but capacity constraints, delays and bottlenecks remain, and the availability of jet fuel itself has become an uncertain factor at some key points.
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