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Iran war threatens $11.7 trillion global travel industry as passengers get caught in crossfire

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Iran war threatens .7 trillion global travel industry as passengers get caught in crossfire


Zoey Gong, a Chinese medicine food therapist, was days away from boarding an Emirates flight from Paris to Shanghai via Dubai, United Arab Emirates, when the U.S. and Israel attacked Iran last Saturday.

Gong, 30, had her flight plans derailed as a result, and she told CNBC that she had to pay $1,600 to get to Shanghai, more than double the price of her original ticket.

She’s one of millions of travelers swept up in war and other conflicts from Iran to Mexico this year, problems that are threatening the global tourism industry that’s worth an estimated $11.7 trillion to the world’s economy, according to industry group World Travel & Tourism Council. It’s showing that people who are far from falling missiles, drone attacks and other geopolitical flashpoints aren’t immune to ripple effects.

‘Aviation quagmire’

Stranded passengers wait with their luggage outside the Hazrat Shahjalal International Airport in Dhaka on March 3, 2026 after carriers cancelled flights amid the Middle East conflict.

Munir Uz Zaman | Afp | Getty Images

The U.S.-Israel attack on Iran set off massive aviation, travel, and safety crises.

More than a million people around the world were stranded because of airspace closures that have grounded over 20,000 flights since Saturday, according to aviation data firm Cirium. Some were also stuck on cruise ships. Inquiries for more expensive “cancel for any reason” travel insurance policies surged 18-fold this week, said Chrissy Valdez, senior director of operations for Squaremouth, an online insurance marketplace.

Since the Feb. 28 attacks on Iran, that country has launched retaliatory strikes on the United Arab Emirates — home to Dubai International Airport, the world’s busiest for international passenger traffic, according to Airports Council International — as well as Qatar, Jordan, Israel and Cyprus. The back-and-forth attacks have left airlines with little recourse to repatriate travelers.

Days after the attack, the U.S. State Department told citizens in a large part of the region to leave immediately, with few options at hand. The department said it is organizing charter flights for U.S. citizens who want to return from Saudi Arabia, Israel, UAE and Qatar.

“This has spiraled into an aviation quagmire,” said Henry Harteveldt, a former airline executive and founder of travel consulting firm Atmosphere Research Group.

Other sectors of the travel industry are also dealing with the war’s impact. Debris rained down near Accor‘s Fairmont The Palm Hotel in Dubai over the weekend. The company said four people were injured, but none were guests, visitors, or staff. Meanwhile, the iconic Burj Al Arab hotel had a fire earlier this week after it was hit by debris from an Iranian drone.

(L to R) The Malta-flagged cruise ships Aroya Manara and MSC Euribia are anchored at the port of Dubai on March 4, 2026.

Giuseppe Cacace | AFP | Getty Images

MSC Cruises’ more than 6,300-passenger MSC Euribia ship has been stranded in Dubai and the company is trying to get flights for affected guests, it said. “We are requesting priority for our guests from our partners,” the company said in a statement.

“In order to speed up the repatriation, we are working on other options such as chartering flights” from Dubai, Abu Dhabi, UAE, or Muscat, Oman, but the situation on board “remains calm,” the cruise company said.

Earlier this week, MSC said it would cancel its remaining sailings from Dubai for the winter. “We understand that this will be disappointing, but we are sure that guests impacted will understand this decision,” it said.

Putting aside the Covid-19 health crisis that ground most international travel to a halt, Harteveldt called this week “the most chaotic event we’ve seen frankly since 9/11 when the U.S. chose to close its airspace. We haven’t seen anything that has had such a long and geographically widespread impact on travel.”

Global conflicts

Flightradar24 still of flight traffic across the Middle East on March 4th, 2026.

Source: Flightradar24.com

Read more about military conflicts’ impact on commercial flights

Then in February, flights were grounded in parts of Mexico, including in the coastal resort city of Puerto Vallarta and in Guadalajara, after violence broke out following the Mexican army’s killing of a cartel leader.

Executives have already had to make costly changes: rerouting or cancelling sailings, issuing flexible booking and refund policies, grounding planes and changing flight plans altogether, or discounting hotel rooms.

The cost of these conflicts is still being tallied, including for fuel, one of the biggest expenses for cruise companies and airlines, along with labor, and is usually passed along to consumers, but signs are emerging on how customers will be affected.

First: Pricier tickets and stays are in the cards.

Higher airfare

United Airlines CEO Scott Kirby said on Thursday that jet-fuel prices, which have surged 60% since the U.S. and Israel’s first strikes on Iran last week, would hit first-quarter results, if not the second quarter as well. That will likely translate quickly to higher airfare, he added.

Despite the higher fuel, which accounted for 20% of United’s operating expenses last year, according to a securities filing, with few flights operating in the Middle East, bookings have jumped from regions like Australia for United flights because it offers different routes to the U.S., he said.

Speaking outside an event at Harvard University, Kirby said that demand overall has remained resilient since the conflict broke out.

Airlines around the world have been forced to take longer, more costly routes because of airspace closures.

Australian carrier Qantas, for example, told CNBC that its flight from Perth, Australia, to London will now take a route that requires it to refuel in Singapore, though that will also allow it to pick up another roughly 60 passengers. 

Best year ever?

Passengers look at departure screens showing cancelled flights to Puerto Vallarta at Benito Juarez International Airport after authorities reinforced security following roadblocks and arson attacks carried out by organized crime in several states, after a military operation in which a government source said Mexican drug lord Nemesio Oseguera, known as “El Mencho,” was killed in Jalisco state, in Mexico City, Mexico, February 22, 2026.

Luis Cortes | Reuters

Travel executives started off 2026 as they often do: upbeat. Some airline executives, including those at the most profitable U.S. carriers, Delta Air Lines and United, forecast record earnings within reach this year.

The war and other incidents erupted as the travel industry has been leaning on premium options to woo wealthier customers, who make up a greater share of spending overall. Losing the base for more expensive trips could be extra disadvantageous to those companies and local economies.

In Mexico, for example, tourism makes up close to 9% of the economy and international tourist arrivals rose 13.6% last year to 98.2 million people, who spent close to $35 billion, according to the country’s Tourism Ministry.

Now, airlines are pulling back on traveling to Puerto Vallarta, at least from the United States in the near term. Delta cut routes from April 3 through the end of the month to the city, except for once-daily flights from Los Angeles and Atlanta, according to the Cranky Network Weekly newsletter, which covers the airline industry’s network changes. Alaska Airlines and Southwest Airlines also cut service in March.

“Perhaps people will forget about the PVR [Puerto Vallarta International Airport] concerns now that headlines will shift to the Middle East and bookings will rebound, but we will be watching capacity changes as leading indicators,” Brett Snyder and Courtney Miller, the newsletter’s authors, said in the March 1 edition.

Smoke billows amid a wave of violence, with torched vehicles and gunmen blocking highways in more than half a dozen states, following a military operation in which a government source said Mexican drug lord Nemesio Oseguera, known as “El Mencho,” was killed, in Puerto Vallarta, Jalisco, Mexico, February 22, 2026.

@morelifediares via Instagram | Reuters

The recent issues also come three months ahead of the FIFA World Cup, which is set to be hosted by cities in Canada, Mexico and the United States.

Some hotels in Mexico are starting to notice a change, too.

Victor Razo, manager at the Rivera del Rio hotel in Puerto Vallarta, told CNBC that bookings are down around 10% compared with last year.

“We’ve had some promotions given what had happened,” he said, adding it brought down rates between 10% and 20% ahead of the busy spring break and Holy Week period in the coming month.

He added that the hotel wasn’t near the problems, which included road blockades, and that bookings have since stabilized.

“It’s not like the beginning of the pandemic,” he said. “There is no comparison.”

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US justice department drops probe into Fed chairman Jerome Powell

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US justice department drops probe into Fed chairman Jerome Powell


Powell’s term is nearing its end and the US Senate is considering Trump’s nominee for his replacement, Kevin Warsh. A key Republican, Thom Tillis, has withheld his support for Warsh unless the Trump administration would drop its investigation into Powell.



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Intel bags big gains! Chipmaker’s shares jump 26% on blockbuster results; how Trump admin benefits – The Times of India

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Intel bags big gains! Chipmaker’s shares jump 26% on blockbuster results; how Trump admin benefits – The Times of India


Intel share price soared sharply on Friday after the chipmaker delivered a first-quarter performance that exceeded market expectations. And the win was not just for the chipmaker, but also the whole of US!The stock climbed 26.7% during trading on Friday, marking what could be its strongest single-day gain since 1987. Momentum continued after the closing bell, with shares rising a further 20% in after-hours trading as investors reacted to signs of a sustained turnaround driven by artificial intelligence.Intel reported revenue of $13.58 billion (€11.6bn) for the quarter, ahead of the $12.3 billion (€10.5 bn) forecast and up 7.2% from a year earlier. Adjusted earnings per share came in at $0.29, far exceeding expectations of $0.01.A key contributor to this performance was the company’s Data Centre and AI (DCAI) division, which delivered revenue of $5.05 billion (€4.2bn), up 22.4% year-on-year and well above analyst estimates of $4.41 billion (€3.77bn). The results indicate strong demand for Intel’s Xeon 6 processors and Gaudi 3 AI accelerators, particularly among enterprise clients and cloud service providers.Chief executive Lip-Bu Tan pointed to a broader shift in artificial intelligence usage as a major factor behind the growth. He said, “the next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic.” He added, “This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”The company also issued an upbeat outlook for the second quarter, forecasting revenue in the range of $13.8 billion (€11.8billion) to $14.8 billion (€12.6billion), surpassing investor expectations of $13 billion (€11.1billion).

But how is Washington winning?

The rally has had a direct impact on the US administration’s investment in Intel. In 2025, during a period of severe financial strain for the company, the administration of Donald Trump acquired a 9.9% stake in a move aimed at stabilising the business. The government invested $8.9 billion (€7.8bn) at a share price of $20.47 (€18.01), with $5.7 billion (€5bn) of that amount coming from previously approved but unpaid grants, according to the Euro News.At the time, Intel was facing multi-billion dollar losses and operational challenges, prompting concerns over its viability. As part of the intervention, the company cancelled planned factory projects in Germany and Poland, redirected focus towards US-based manufacturing, and reduced its global workforce by 25%, cutting around 25,000 jobs.Following the latest jump, Intel’s shares are now trading at $81.3 (€71.5), representing an increase of nearly 300% since the government first took its stake. The sharp rise highlights how the company’s improved financial performance has translated into substantial gains for the US administration.



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The investment issues Labour must fix before the public can back its bid to join in

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The investment issues Labour must fix before the public can back its bid to join in


On the whole, Britain is not a nation of investors and the government wants that to change.

Following on from Rachel Reeves’ plans last year, the advertising campaign to create more retail investors is underway and with further changes afoot, the overall picture is one of Labour steering savers towards understanding why, and how, they can create better long-term returns with their money.

The cut to the cash ISA limit, however crude and unpopular, is one such upcoming change. We’ve just entered the final year of the £20,000 allowance being able to be put entirely into a cash ISA; as of April 2027, £8,000 of it will be reserved for investing-only. For those who don’t save over that amount annually it’ll make no material difference, but even the existence of the change can be argued is a prod to the consciousness of people to wonder if they should be doing something else entirely.

Then there’s targeted support.

Among industry insiders there is hope this could make a material difference, given time – in essence, those who have significant savings in cash being able to be spoken to by their bank or provider over other options, potentially including investing.

At Innovate Finance this week, a key summit of UK FinTech Week,The Independent heard from a senior executive at one neobank that the average client with them had savings in excess of £15,000 – precisely the sort of consumer who could benefit from targeted support to explain how, over the long term, they might be better off putting a portion of that excess cash into… well, something other than cash, which loses its value over time due to inflation.

Another suggested an uptick in app users branching out from just having current and savings accounts, to other products within their sphere including stocks and shares ISAs – where investing returns will be tax free for consumers.

Economic secretary to the Treasury Lucy Rigby launched the nationwide ad campaign, along with chancellor Ms Reeves, at the London Stock Exchange on Thursday.

“With greater awareness of the benefits of investing, more people will be able to make informed decisions about how to make their savings work harder for them,” Ms Rigby said. “That will mean greater prosperity and financial resilience for households across the country and strengthened domestic capital markets too.”

The aforementioned plans and prospects certainly all align with raising awareness. That is a first step.

But there are greater key issues to deal with.

(Getty)
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The advert campaign with Savvy the squirrel – conversational cab rides, explain-it-all website and more – will hopefully fill some painful gaps in the first instance around British people’s knowledge around the subject. Unlike in the US and several European countries, where investing is fairly commonplace, in the UK it’s not often spoken about, let alone fully understood.

Research from Barclays and their Investment Readiness Index showed this week that over a third of people (34 per cent) say fear of losing money is their main reason for not starting to invest, while nearly a quarter (23 per cent) said they believed there was a chance that a portfolio of well-known global companies could become “totally worthless” within five years.

Barclays’ report added for context that outcome was “an extremely unlikely” one.

But to really change some of those would-be investors’ minds, perhaps the response should have been more blunt. Perhaps the Treasury, the government and the campaign as a whole could stand to be a bit more…direct.

There is, in all probability, next to no chance that such a mix of companies would become worth zero in five years – unless something genuinely catastrophic happens to the world in which case we’ve all got more important issues to deal with than our portfolio performance. Maybe the Barclays report itself could likewise have benefited from feeling more freely able to state as such?

So, yes, financial education is absolutely one part, but so too is the language and understanding and framing of risk for people.

Articles, videos, all the learning activities across the web and within companies to help introduce people to investing – in every one of them you’re liable to find the disclaimer-style warning along the lines of: investments can go up as well as down, you may get back less than you invest and so on. Some find it off-putting to begin with, some barely even notice it.

In the words of the FCA, you must always “give a balanced impression of the benefits and risks of an investment product or service”.

That same pointing-out-of-the-risks wording and tone is another aspect which is being re-evaluated and could be switched up.

Now, while nobody wants that removed or watered down unduly to the point that bad actors or bad products are being pushed on newly introduced people to investing, there is still a misrepresentation of what risk means – it’s not always about you could lose all your money.

And, the reward (in theory) for taking on board risk is the possibility for higher returns, over time, than just cash alone (through interest) would give you.

Industry insiders have long also pointed out that the same – or reverse – warning is not applied to cash savings products: the risk here being you lose buying power over time due to inflation.

So language, as well as education, must remain on the table to improve and perhaps nudge people more forcefully towards a choice which helps them, similarly to reminding them to check employer contributions to their workplace pensions or taking out travel insurance before they fly.

(Getty Images)

There will still be one remaining gap though, even after people tentatively read the info, breathe in the adverts and eventually follow Savvy the squirrel down a new journey to take the plunge in investing: where are those people starting?

The ad campaign will not direct people to choose a particular platform or product, though many – Barclays, Hargreaves Lansdown, NatWest and more – are sponsoring the campaign and will be placed on the website as a result. But people still have to choose, and that particular analysis paralysis point has already left many ready to take the first steps, but unsure where to place their feet.

There are more new stocks and shares ISA providers available, loads of low-cost platforms as well as established, recognised names to choose from and deciding which suits any given person’s initial investment plan is as much a key decision as parting with their first few pounds in the first place.

It is important, for the long-term wealth of families, that more people start to invest. It is a positive thing that more information is therefore being pushed in front of them, to be able to make that call in an informed fashion.

But the reason it’s all needed in the first place is an overabundance of caution, a generational stepping-away from investing as a run-of-the-mill part of individual money management. Getting Brits back on board might therefore require less, not more, of that gentle approach to remedy the situation.



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