Business

The Iranian regime has been accused of extortion and threats to global energy security after reports emerged that Tehran has begun charging up to $2 million (€1.7 million) per vessel for "safe passage" through the Strait of Hormuz. The strait is the world's most indispensable energy corridor, squeezed between Iran and Oman. Before the Iran war, it carried one-fifth of all the oil and gas consumed worldwide. Iran's government has justified the fees as war reparations for damage suffered caused during US-Israeli attacks on the country, as well as payment for "navigational services," environmental protection and enhanced security.  The government announced that it was drafting a joint protocol with Oman to require ships to obtain permits before transiting the strait. While some Asian ship...

Ferrari presented its first fully electric car to reporters in Rome this week, a four-door, five-seater called the "Luce," developed with help from former Apple design chief Jony Ive and his collective LoveFrom. The first models of the Luce, which means "light" in Italian, are set to be ready for delivery from the fourth quarter of 2026, with a price tag in the region of €550,000 (roughly $640,000).  The launch comes at a testing time for carmakers and their electric mobility plans. Several manufacturers, Ferrari included, are paring back their targets for electrification — given factors like headwinds in the major US market, and fast-intensifying competition from domestic manufacturers in China. That said, it also comes as the war in Iran and subsequent pressures on fuel prices act as ...

Elon Musk has a habit of turning science fiction into reality. From reusable rockets to autonomous vehicles and humanoid robots, the billionaire's ventures often achieve what was once thought impossible. With SpaceX's initial public offering (IPO), he's aiming for even bigger milestones. The company, which has stayed fiercely private for 24 years, is now preparing to go public. In an S1 filing to US regulators on Wednesday, which runs to hundreds of pages, SpaceX plans to raise roughly $75 billion (€64.5 billion) from new investors, which would value the company at up to $1.75 trillion. Not bad for a firm that is still loss-making and which Musk — already the world's richest man — will effectively still control. SpaceX believes a million people could live on Mars in the futureImage: Ste...

Deadlocked, dysfunctional and dangerous: That is how the Strait of Hormuz standoff is increasingly being described. Now approaching its fourth month, the crisis off the coast of Iran is marked by mutual blockades. Tehran has been charging ships up to $2 million (€1.73 million) for safe passage through the strait, while the United States has imposed a naval embargo, turning back vessels carrying Iranian oil exports. These competing blockades have failed to deliver decisive results. Some Iranian ships continue to slip through, while several Asian shipping firms have agreed to pay tolls, despite such fees violating international maritime law. Fragile negotiations between the US and Iran to reopen Hormuz have, meanwhile, stalled several times, sparking the risk of escalation into a wider re...

New Federal Reserve chair Kevin Warsh promised to preserve the Fed's independence as he was sworn in at the White House on Friday. It was an unusual step, since Fed chairs are not normally sworn in at the White House, and presidents usually don't attend, given that the Fed is meant to be politically independent. At Warsh's confirmation hearing, US President Donald Trump insisted the incoming central bank chief would be "totally independent." But some, particularly Democrats, have questioned how independent Warsh will be as head of the world's most powerful central bank. Among them is Democratic Senator Elizabeth Warren, who described Warsh as Trump's "sock puppet” during his Senate confirmation hearing in April. Stressing that independence requires courage, Warren asked Warsh: "Let's c...

When Western firms pull production out of China or buy fewer parts from there in order to be less dependent on the country, this is called decoupling or de-risking. And you would think that China can’t stop the rest of the world from decoupling, right? Tell that to Beijing. Chinese authorities blocked Meta’s $2 billion (€1.7 billion) takeover of the artificial intelligence (AI) startup Manus last month, sending a clear signal that even deals structured outside China's borders are no longer safe. Manus is headquartered in Singapore, but has strong Chinese roots. China viewed the firm as one of its strategic assets in the global AI race and blocked the deal on national security grounds. The move followed Beijing's swift introduction of the Regulations on Industrial and Supply Chain Secur...

On Wednesday, German Transport Minister Patrick Schnieder arrived at Toyota's fuel cell factory in a German BMW iX5 Hydrogen, only to later depart in a Japanese Toyota Crown FCEV. The choice of cars was, of course, no coincidence, with both vehicles generating electricity from hydrogen in a fuel cell. Car makers BMW and Toyota are currently jointly developing the third generation of this drive technology. Three BMW employees have specifically moved to Japan to participate in the undertaking. Both companies are contributing components to help develop a more compact and efficient fuel cell. Once this stage is complete, BMW will manufacture this drive technology in an Austrian factory and Toyota will do the same at a Japanese production site. BMW plans to launch its first hydrogen series mo...

Japan's second largest carmaker Honda on Thursday confirmed its first operating loss since 1957, before it started selling mass-produced cars in the early 60s.  The company has embarked on a major overhaul of its electic vehicle (EV) strategy, particularly in its core market in the US, after previously betting on more rapid electrification of the industry.  Honda had already warned of a sizeable financial hit as a result of this shift in March, meaning that investors were largely unperturbed by Thursday's financial data. Indeed, Honda's stock rose sharply as the company also predicted a return to profitability in 2026.  What were Honda's losses and sales figures?  The company reported an operating loss of 413.4 billion yen (roughly €2.23 billion or $2.6 billion) amid huge write-downs i...

The former head of the European Central Bank Mario Draghi was presented with the prestigious Charlemagne Prize at a ceremony in Aachen, western Germany, on May 14. "You took charge of the euro during a time of crisis, and you stabilized the euro and the eurozone," Chancellor Friedrich Merz said during his speech honoring Draghi.  With his 2024 report on the future of European competitiveness, dubbed the Draghi Report, Merz said Draghi had "pointed the way toward reform with his unsparing analysis." "I think you'll understand why his friends call him Super Mario," the German chancellor joked. Who is Mario Draghi? Draghi is likely mostly remembered as the head of the Frankfurt-based European Central Bank (ECB), who worked to stabilize the eurozone during turbulent times. But he had many...

The Iran war is having a profound effect on the global aviation sector, with jet fuel shortages and surging prices wreaking havoc on flight routes. On Tuesday, April 21, Germany's largest carrier Lufthansa announced it had canceled 20,000 flights between May and October to try and save fuel. The airline said the short-haul flights being cut would remove "equivalent to approximately 40,000 metric tons of jet fuel, the price of which has doubled since the outbreak of the Iran conflict." Dutch airline KLM last week canceled 160 flights for the coming month, while other airlines in Europe and across the Asia-Pacific region are raising prices and grappling with the possibility of mass cancellations as the summer holiday period draws nearer. Fatih Birol, executive director of the Internation...