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The UK economy demonstrated resilience with a 0.5% growth in February, surpassing the 0.1% forecast by economists. This growth was primarily fueled by a strong performance from the services sector and manufacturing, both of which posted 0.5% growth, and a recovery in construction output, which was up 1%.The Office for National Statistics (ONS) reported that the economy had been gaining momentum before the Iran war dashed hopes of recovery. The growth in the three months to February was 0.5%, up from 0.3% in the three months to January, indicating strengthening growth.Grant Fitzner, the ONS chief economist, noted that growth was driven by broad-based increases across services, with wholesaling, market research, hospitality, and publishing performing well. The recovery of Jaguar Land Rover from a cyber-attack also contributed to the improving three-monthly picture.However, economists have downgraded forecasts for UK growth in 2026 due to soaring oil and gas prices resulting from the Iran war. Business and consumer confidence have declined sharply, and investors believe interest rates may have to rise to restrain the inflationary impact of the war.Martin Beck, chief economist at WPI Strategy, warned that February's growth might be the calm before the storm, with the conflict in the Middle East likely to drag overall Q1 growth down. Suren Thiru, chief economist at the ICAEW, also predicted that March would see a decline in economic activity due to skyrocketing fuel prices and supply chain chaos.

The UK is bracing for possible gaps on supermarket shelves this summer as the ongoing conflict in Iran threatens to disrupt carbon dioxide (CO2) supplies, a critical component in the food industry. CO2 is essential for the humane slaughter of livestock, packaging of fresh meats and produce, and production of fizzy drinks and beer.Government ministers are reportedly drawing up contingency plans for a 'reasonable worst-case scenario' if the Strait of Hormuz, a key shipping lane, remains closed. This could lead to shortages of CO2, impacting supplies of chicken, pork, and fizzy drinks.The business secretary, Peter Kyle, has reassured the public that ministers are making contingency plans to deal with possible consequences of the Iran war. The government has invested £100m to reopen the mothballed Ensus bioethanol plant on Teesside to mitigate potential CO2 shortages.The CEO of Tesco, Ken Murphy, has expressed confidence in the company's ability to manage supply chains, stating that they have 'seen nothing at this point' in terms of problems within their supply chain caused by CO2 availability issues. However, the UK is one of Europe's largest users of CO2, and any disruption could have significant impacts on the food industry and beyond.

Sudan, one of the world's most impoverished countries, has been ravaged by a civil war that began in 2023. The conflict, driven by a power struggle between the army and the paramilitary Rapid Support Forces (RSF), has left the nation unrecognizable. Over 40,000 people have been killed, and about 14 million – a quarter of the population – have been forced to flee their homes. Civilian infrastructure across the country has been extensively damaged.“We are not just facing a crisis – we are witnessing the systematic erosion of a country’s future,” Luca Renda, the United Nations Development Programme’s (UNDP’s) resident representative in Sudan, told Al Jazeera. A report by the UNDP and the Institute for Security Studies highlights the scale of Sudan’s economic collapse. Even under the most optimistic scenario of peace being achieved in 2026, Sudan would still lose an estimated $18.8 billion in gross domestic product (GDP) by 2043.The war has had a devastating impact on Sudan's infrastructure and basic services. $6.4 billion was lost in GDP in 2023 alone, reflecting a simultaneous collapse across all major parts of Sudan’s economy. The destruction of infrastructure has triggered displacement and made it difficult for people to secure adequate housing or access basic services. Up to 40 percent of power generation capacity has been lost, and key water infrastructure has been destroyed or seized, cutting communities off from clean water and sanitation.The labor market has also been severely affected, with agriculture – once the backbone of Sudan’s economy – severely hit. Cultivated land has shrunk, adversely impacting rural livelihoods. Average incomes have fallen back to levels last seen in 1992. About 90 percent of manufacturing activity has been destroyed in key economic hubs, eliminating thousands of jobs.The oil industry has suffered significantly, with oil output falling amid widespread instability and infrastructure damage. The Khartoum refinery, which previously processed up to 100,000 barrels per day, has been out of operation since July 2023. Key infrastructure, including pipeline routes carrying crude to Port Sudan, has been hit.The collapse of the Sudanese pound and supply chains has caused a sharp rise in living costs. Food prices have surged, with four pieces of bread now costing about 1,000 pounds, an amount that had previously bought six pieces. Wages have failed to catch up with inflation, leaving many households without access to necessities. Nearly half the population is now experiencing acute food shortages.The economic collapse has had a profound impact on Sudan's people, with 34 million people in need of assistance and 19 million facing acute food shortages. The war has caused death, trauma, and profound loss, casting a long shadow over Sudan’s future and dimming the prospects of a generation whose lives are being shaped by violence. If the conflict continues to 2030, Sudan’s economy in 2043 would be about $34.5 billion smaller than it would have been without the war, and GDP per capita would drop by roughly $1,700.

Japan has taken a significant step in its foreign policy by easing its arms export rules, marking a departure from its eight-decade-long pacifist stance. This move comes as trust in US President Donald Trump declines, with him wavering on security commitments to allies and involvement in conflicts in Iran and Ukraine.The Japanese government has approved a record defense budget of $58 billion for 2026, reflecting a push to strengthen military and coastal defenses amid rising global tensions. The new budget forms part of a broader $784 billion national budget for the fiscal year beginning in April 2026.Under the new budget, over $6.2 billion is earmarked to enhance Japan's 'standoff' missile capabilities, including the purchase of domestically produced and upgraded Type-12 surface-to-ship missiles. This move is seen as a response to China's growing military presence in the Asia-Pacific region.Japan's key defense contractors, Toshiba and Mitsubishi Electric, are hiring staff and adding capacity to capitalize on demand for arms. Countries such as the Philippines and Poland are expected to become customers of Japanese arms.The easing of arms export rules is part of Japan's efforts to shape its own security policy and reduce its military dependence on the US. This shift is driven by the need to build defense supply chains in Asia that do not rely on the US, particularly in light of Washington's preoccupation with wars in the Middle East and Ukraine.Japanese companies are eager to boost sales by selling their products abroad, with Toshiba planning to hire 500 people over the next three years and constructing new testing and manufacturing facilities. The company's vice president, Kenji Kobayashi, noted that 'reputational risk is not what it used to be.'The US has welcomed Japan's initiatives to boost defense spending and take regional security into its own hands, with US Secretary of Defense Pete Hegseth praising Japan's investment in its defense capabilities.

The prospect of a renewed U.S. oil blockade has sparked concerns across Havana’s tobacco fields, where the cigar industry remains a cultural and economic cornerstone. Analysts warn that restricting oil supplies could disrupt the energy‑intensive processes essential for curing, rolling, and transporting premium cigars, potentially undermining production volumes and export revenues. Cuba’s cigar sector accounts for a significant share of the island’s foreign‑exchange earnings, with premium brands commanding premium prices in markets worldwide. A sustained energy shortage would not only raise operational costs but could also force producers to scale back output or seek alternative, less efficient energy sources, eroding the competitive edge that Cuban cigars have long enjoyed. Beyond the immediate economic impact, the blockade could deepen existing tensions in U.S.-Cuba relations. The move may be interpreted as a strategic lever to pressure the Cuban government, yet it also risks alienating stakeholders in the global tobacco trade and could invite retaliatory measures. While the full extent of the blockade’s effect remains uncertain, experts stress that any disruption to the cigar supply chain would reverberate through related sectors—tourism, agriculture, and logistics—exacerbating the island’s broader fiscal challenges. Policymakers on both sides are therefore urged to weigh the economic costs against geopolitical objectives before implementing such a measure.

The United States' recent move to impose a naval blockade on Iran is poised to intensify the ongoing global energy crisis. By restricting Iran's ability to export oil, the blockade could further tighten an already constrained supply chain, potentially pushing oil prices higher and increasing volatility in international markets. Analysts warn that the measure may have ripple effects beyond the Middle East, affecting nations that rely on Iranian crude to meet domestic demand. With global fuel inventories already low, any additional disruption could heighten inflationary pressures and strain economies still recovering from recent shocks. While the blockade aims to achieve strategic objectives, its broader economic implications underscore the delicate balance between geopolitical actions and energy security. Stakeholders across the energy sector are closely monitoring the situation, anticipating possible policy responses to mitigate the impact on consumers and industries worldwide.

The humanitarian situation in Sudan has taken a devastating turn as the country prepares to mark the third anniversary of the brutal conflict between the army and paramilitaries. Nearly 700 civilians have been killed in drone strikes in Sudan since the beginning of 2026, according to the United Nations.The increasing use of drones in the conflict has been noted by the UN's humanitarian chief Tom Fletcher, who warned that the world has "failed to meet the test of Sudan". The conflict has disrupted life across Sudan, particularly in the southern Kordofan region and areas of the west controlled by the paramilitary Rapid Support Forces (RSF).Doctors Without Borders reported two more deaths following drone strikes launched by the Sudanese army in the Darfur region, and treated 56 people wounded in the attack. The UN Children's Fund (UNICEF) said that drones were "responsible for nearly 80 percent" of the at least 245 children reported killed or injured during the first three months of the year.The UN's World Food Programme (WFP) warned that the situation is being "dangerously compounded" by the war in the Middle East, which has disrupted supply chains for aid groups. The US-Israeli war on Iran has forced aid groups to use costlier, more time-consuming routes, driving up the cost of food, fuel, and fertilizer.Nearly 34 million people, almost two-thirds of the population, need humanitarian support, making Sudan "the world's largest humanitarian crisis". The situation is dire, with hundreds of thousands of children acutely malnourished, and millions being deprived of an education. Women and girls are facing systemic and brutal sexual violence.

Aid organizations are intensifying their efforts to deliver humanitarian relief into Iran, where the ongoing conflict between the United States and Israel has resulted in a severe humanitarian crisis. The International Federation of Red Cross and Red Crescent Societies (IFRC) has successfully delivered 'life-saving' aid and medical supplies into the country, marking one of the first humanitarian shipments since the conflict began.The aid convoy, which entered Iran through Turkey on Sunday, included 200 trauma kits containing emergency medical supplies, along with tents and blankets. This shipment is critical as humanitarian supply chains into Iran have been severely disrupted, making it increasingly difficult and costly for essential medical and relief items to reach those in need.The conflict has had a devastating impact on the population, with over 3,000 people killed and up to 3.2 million displaced, according to Iranian authorities. The Turkish Red Crescent Society has also dispatched four trucks carrying 48 tonnes of aid, including emergency shelters, hygiene kits, and first-aid supplies.The International Committee of the Red Cross (ICRC) has also contributed to the relief efforts, dispatching 14 trucks from Jordan carrying household supplies for around 25,000 people. Additionally, the ICRC has donated 200 generators and 100 motor pumps to the Iranian Red Crescent Society to support relief and rescue operations.The relief efforts are crucial as air and sea routes have been blocked by the conflict, making overland crossings through Turkey and Jordan critical for aid delivery. The humanitarian crisis in Iran continues to worsen, with 3.6 percent of the population displaced and 62,000 homes destroyed, according to the Turkish Red Crescent Society's president, Fatma Meric Yilmaz.

Sudan's civil war, now in its fourth year, has plunged the country into one of the world's most severe humanitarian crises. The conflict, which began on April 15, 2023, between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), has resulted in 14 million people being forced to flee their homes, roughly a quarter of the country's population.The war has caused widespread destruction, with 40,000 people estimated to have been killed and 21 million people facing acute food insecurity, including 6.3 million in emergency conditions. The country's healthcare system is in shambles, with over 200 attacks on healthcare facilities since the war began, resulting in at least 2,052 deaths.Human rights abuses are rampant, with serious violations including massacres, forced recruitment, and arbitrary arrests. Women and girls are particularly vulnerable to conflict-related sexual violence, with 3,396 survivors of sexual violence seeking treatment in MSF-supported health facilities across North and South Darfur between January 2024 and November 2025.The international community has attempted to mediate a ceasefire, but efforts have repeatedly failed. The conflict has also disrupted humanitarian operations, with regional instability affecting supply chains and limiting the movement of goods.The situation on the ground remains dire, with millions surviving on one meal a day and famine already confirmed in multiple areas. The international community must continue to pressure the warring parties to reach a ceasefire and provide urgent humanitarian assistance to those affected.