Diet Coke is getting harder to find in India as summer demand collides with a global aluminium shortage. Producers rely on aluminium cans, but rising demand and disruptions linked to Middle East conflict are tightening supplies. With e-commerce stocks also wavering, the drink has turned into a Gen Z-style “missing product” moment, sparking questions about what happens when can supply falters.
India’s benchmark 10-year bond yield is expected to record its largest quarterly rise in four years. Escalating oil prices linked to the Middle East conflict are fanning inflation worries, which could pressure government borrowing costs. Banks may also see margins under strain as markets prepare for a tougher new fiscal year with higher yield expectations.
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The Indian rupee hit a record low, falling past 95 per US dollar for a third straight session. Traders saw only temporary support after the RBI tightened banks’ forex position caps, but broader Asian currency weakness and risks tied to the Middle East conflict continued to pressure the currency. Analysts warn the relief may be short-lived.
Bangladesh is facing scorching 40C temperatures alongside frequent power outages as demand for electricity outstrips limited generation capacity. The strain is worsened by fuel shortages tied to the ongoing conflict in the Middle East, disrupting supply. With the grid under pressure, the government is resorting to controlled load-shedding to keep essential services running and reduce strain.
Sri Lanka saw a sharp drop in tourist arrivals in March, with numbers falling to 183,979 from over 277,000 across January and February. The decline is linked to the West Asia conflict, which is disrupting transit hubs and reshaping travel itineraries. Despite the downturn, India remains the largest inbound source, supported by proximity and direct flights.
European shares fell on Friday and were on track for a weekly decline as investors grew uneasy over stalled progress toward a Middle East conflict resolution. Traders also kept a tight focus on upcoming corporate earnings, weighing whether results can offset geopolitical risk. With sentiment fragile, market moves remained driven by both headlines and company guidance.
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Dubai’s real estate transactions have reportedly fallen 14% amid regional conflict, but the city’s standing as a resilient global financial hub is not in question. Its strategic strengths and history of crisis management point to stabilization ahead, with market corrections potentially creating buying opportunities—especially if peace and expat inflows return.
UK consumer inflation climbed to 3.3% in March, up from 3.0% in February, with officials pointing to the Middle East conflict’s first direct price impact. The sharpest pressure came from an 8.7% jump in motor fuel costs, while services inflation also rose to 4.5%, extending concern beyond energy into everyday expenses.
Dubai’s booming property market cooled for the first time since 2020, with both home prices and sales volume falling in March. Regional conflict has weighed on demand, prompting developers to counter with incentives. Still, some analysts expect end-users to keep buying, though at a slower pace, betting on long-term resilience.
India’s ceramics and tile hubs, worth about $6.5 billion and employing hundreds of thousands, are shutting down as energy shortages bite. Blazing kilns that power production have gone cold amid an electricity fuel crunch that sources link to disruption pressures from the Middle East war, raising fears of lost jobs and export setbacks.
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Asia’s key rice export hubs are seeing limited activity as freight costs climb sharply following conflict in the Middle East. Traders say buyers are holding back until shipping rates ease, keeping prices muted. Still, Bangladesh’s domestic market remains firm ahead of Eid-ul-Fitr, with aromatic rice demand picking up despite the broader export slowdown.
ITA Airways says it will expand direct services to India and Thailand in August 2026, citing disruptions caused by the Iran war to routes through the Middle East. The airline plans to increase frequencies to Delhi and Bangkok, framing the move as a response to passenger demand and a bet on direct, reliable connectivity even as geopolitics makes travel planning harder.
The IMF has trimmed its 2026 global growth forecast, citing the ripple effects of the war in the Middle East. It links the downgrade to a major oil price shock and warns that higher energy and food costs could push inflation upward, complicating the outlook for economies already facing fragile demand and tighter budgets.
Volvo Group India president Kamal Bali says the Middle East conflict has not directly impacted India’s auto sector so far, but supply chain strain could become a real threat. He hopes for a swift end to the war, citing India’s resilience, while adding that Volvo is currently performing well with a strong market position.
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Attacks and threats have nearly halted all shipping through the Strait of Hormuz, disrupting oil flows and driving prices higher. The corridor has been weaponized before, including past threats from Iran, and even now some vessels continue to cross. With the wider war intensifying, energy markets are facing sharp shocks as supply risk grows.
Global business surveys due this week are expected to show worsening growth and rising inflation after seven weeks of Middle East conflict, with Europe seen as particularly vulnerable. Analysts warn the mix could trigger stagflation—weak economies with stubborn prices—forcing policymakers to reassess interest rate plans based on the latest data from Australia to the US.
Gold held in Dubai is being sold at notable discounts as conflict across the Middle East disrupts flights and shipping. With delivery costs and timelines uncertain, buyers are holding back, pushing traders to price bullion up to $30 per ounce below global benchmarks. Some shipments still move, but delays are affecting India’s physical availability even as inventories remain adequate.
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