We know what’s coming and we are prepared.
Is it possible that NATO forces could become directly involved in the military conflict between Russia and Ukraine?
Until recently, such a question seemed very hypothetical given the high risks of escalation of the military confrontation between the US-led bloc and Russia into a large-scale armed conflict. But this scenario should be taken seriously now, writes Ivan Timofeev, programme director of the Valdai Club
“A significant escalation factor that would amplify the risk of a direct clash between Russia and NATO, could be the appearance of military contingents form bloc members on the territory of Ukraine. The prospect of such a scenario has already been mentioned by some Western politicians, although their view has not been supported by the US and isn’t an official NATO position.”
“Each of these scenarios involves a direct clash between Russian and NATO forces. Such a situation would inevitably raise the question of deeper bloc involvement and, in the longer term, the transfer of military conflict to other areas of contact with Russia, including the Baltic region. At this stage, it will be even more difficult to stop the escalation. The more losses both sides suffer, the more the maelstrom of hostilities will grow and the closer they will come to the threshold of using nuclear weapons. And there will be no winners.”
https://www.rt.com/russia/599286-russia-nato-ukraine-conflict/
Mercuria shipping head says fuel shortages could idle 10% of global fleet
This would trigger immediate and severe breakdowns in global supply chains, as container ships, tankers, and bulk carriers sit idle, halting the movement of food, fertilizer, fuel, and critical imports that modern economies depend on.
"The shipping sector is fast approaching a fuel crisis that could paralyze a tenth of the global fleet, Larry Johnson, global head of freight at commodities trading house Mercuria, said in an interview.
Since the Middle East war erupted, markets have been preoccupied with potential shortfalls in the diesel and jet fuel traditionally exported in large quantities from the Persian Gulf.
However, as refiners strain to capture soaring clean product cracks, residual fuels have suffered. Increasingly, feedstocks have been held back from the marine fuel market to kept for further processing, leaving the shipping sector at risk of crippling shortages, Johnson said.
"My view on marine fuel...
Inflation in Europe is rising rapidly:
Eurozone Manufacturing PMI Input Prices spiked to 80 points in May, the highest since May 2022.
This also marks the largest monthly increase in costs for firms over the last 4 years.
Furthermore, PMI Output Prices surged to 62 points, the highest in 3.5 years.
The rate companies are increasing the prices they charge for goods they produce has surged +12 points, or +24%, since the start of 2026.
This surge has been primarily driven by rising energy and raw material costs.
Meanwhile, supply chain delays are up to the highest level since the pandemic supply squeeze of 2022, adding further pressure on prices.
As a result, factories are forced to pass higher costs on to customers, which will push inflation even higher over the next few months.
Price pressures across Europe are accelerating.
(@TheKobeissiLetter)
US inflation is set to rise further:
ISM Services Prices rose +0.6 points in May, to 71.3, the highest since August 2022.
Since February, the index has risen +8.3 points, the biggest 3-month increase since 2021.
Diesel, gasoline, oil, and related commodities were the most frequently cited as "up in price" in the survey.
In May alone, no commodities were reported as "down in price."
Historically, rapidly rising services prices have led CPI inflation with a ~3-month lag.
The current reading suggests CPI could rise above 5.0% for the first time since early 2023, from the 3.8% seen in April.
Inflation pressures are mounting.
(@TheKobeissiLetter)
