Starmer fights for political survival

The FT News Briefing opens with a deep dive into the ongoing crisis in the Strait of Hormuz, where the closure due to the U.S.-Israeli war on Iran has disrupted global energy flows. Despite fears of jet fuel shortages, some airlines are cutting prices on short-haul European routes to encourage early bookings, while major oil companies like Shell, BP, and Total Energy are reaping billions from volatile markets. Meanwhile, Asian nations are turning to coal as an alternative, driving record imports. The Federal Reserve faces mounting pressure to raise interest rates as inflation hits 3.5%, fueled by energy shocks. Back in the UK, Prime Minister Keir Starmer is fighting for political survival after Labour’s disastrous local election results, with the party’s vote share plummeting to 17%. Starmer is expected to deliver a pivotal speech outlining his values and a renewed push for closer EU relations, while the upcoming King’s Speech will test his ability to present a coherent legislative vision. Analysts suggest the collapse of the traditional two-party system reflects voter fatigue and a desire for change, but internal divisions within Labour may prevent a leadership challenge. The episode captures a moment of global economic strain and political uncertainty, with Starmer’s survival hinging on his ability to inspire confidence amid deepening crisis.