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Google banks on AI edge to catch up to cloud rivals Amazon and Microsoft

Thomas Kurian, Google Cloud’s CEO, says its AI chips and models can help the data centre business gain ground

Google’s cloud boss says that a pair of new chips and rapid advances at its DeepMind AI lab will help it close the gap with Microsoft and Amazon in the fiercely competitive cloud computing market.

Thomas Kurian said that after a slow start in AI and entering the cloud business late, Google’s “full-stack” AI strategy — which includes building chips, data centres, foundation models and products in-house — was starting to pay off. 

“We’re not just a hyperscaler reselling other people’s technology. Our differentiation comes down to the fact that we own the IP, the model and the chips are ours,” Kurian said in an interview.

“For every dollar of revenue, we’re not shipping 80 per cent of it to either a model or chip provider, which allows us to invest more,” he added.

Eight years after joining Alphabet from Oracle, Kurian has grown its cloud market share from 7 to 14 per cent — cementing his position as a contender to be Google’s next leader.

But Google Cloud remains a distant third to Amazon Web Services and Microsoft’s Azure in the $418bn cloud-computing market. Alphabet has also been criticised for allowing OpenAI and Anthropic’s chatbots and coding assistants to leapfrog its own AI products.

AI is now helping Google Cloud to grow faster than its rivals; it reported a 48 per cent jump in revenue in the final quarter of 2025 and is on track to generate more than $70bn this year, up from $43bn in 2024.

Google believes its TPUs and Gemini models are far ahead of Amazon’s Trainium chips and Nova AI system as well as Microsoft’s Maia processors and MAI models. This makes the search giant less dependent on partnerships with Anthropic and OpenAI or on Nvidia’s expensive GPU chips.

Kurian said that Google’s 12-year investment in DeepMind allowed it to continually improve its proprietary chips and deliver consumer and enterprise AI products at a lower cost with better margins.

Google unveiled two new chips this week at a splashy event in Las Vegas, the eighth generation of its TPUs, or Tensor Processing Units. One specialises in training AI models, while the other has more memory to run AI systems faster, known as inference.

“You need a large lab in-house to really build an amazing chip [and] I don’t think the other players are building their own models, of any quality at least,” Kurian said. Only Nvidia currently rivalled Google’s combination of AI hardware and integrated chip software, he added.

Google’s emergence as a competitor to Nvidia has strained the relationship between the two companies, even as Alphabet remains one of its biggest GPU customers.

A report from Epoch AI estimates that Google controls about a quarter of global AI computing power, about 3.8mn TPUs and 1.3mn GPUs. Microsoft is second with 3.2mn Nvidia GPUs.

In a recent podcast, Nvidia chief executive Jensen Huang criticised Google for not submitting its AI chips to independent tests and cast doubt on their performance and efficiency claims. 

He added that “100 per cent” of demand came from Anthropic and without the start-up “why would there be any TPU growth at all?”

Kurian responded that nine of the top 10 AI labs used TPUs, including ex-OpenAI executive Mira Murati’s Thinking Machines. OpenAI cannot because of an exclusivity deal with Microsoft.

“They have a choice of what to buy. If we were not competitive in performance, in price, in quality, they would choose not to do so,” he said.

Anthropic on Friday struck a deal under which it will buy more of Google’s chips. Google agreed to invest up to $40bn in the start-up and provide 5GW of computing capacity over five years, worth more than $200bn.

Google is also spending heavily on its in-house AI efforts, with capital expenditures forecast to rise to $185bn this year. Kurian argues the vast sums are justified by customer demand and strong revenues.

He said OpenAI and Anthropic face a more difficult financial path, which could also imperil Big Tech groups that rely on them. Both start-ups are losing tens of billions a year as they race to secure computing power to train and run their models.

“Those AI providers depend on private capital markets, which are reaching a saturation point,” he added. “If you’re going to go public, you can’t be lossmaking forever. And if you stay private, you cannot raise venture money forever.”

This year OpenAI and Anthropic raised more than $150bn in two of the largest private fundraisings in history as they prepared for IPOs. Dozens more start-ups have raised multibillion-dollar sums.

“Over the next year to two you will see some shakeout in the market,” Kurian said. Whether “particular providers are going to make it or not largely comes down to the economics”.

The average amount a borrower with negative equity carries on a vehicle has jumped more than 40% since 2021

Doug Horner has seen plenty of customers walk into his northeast Ohio Mercedes-Benz dealership who owe more on their trade-ins than those cars are worth. But being $40,000 underwater on a pickup truck is a scary sign of a growing trend.

A prospective buyer recently sought to trade in a Ford F-150 Lightning for a Mercedes GLE Coupe, but that potential customer owed about $87,000 on the pickup truck. Horner estimates the Ford pickup truck was worth about $47,000—leaving the buyer well underwater.

“This is a battle that we’re fighting every day,” Horner said in an interview.

More Americans turning in their cars to buy new ones are encountering a difficult reality: Their vehicles aren’t worth what they owe.

About 30% of borrowers in the first quarter who traded in a car to buy a new one had negative equity, whereby they owe more on their loan than their car is worth, according to car-shopping website Edmunds. Those borrowers owed about $7,200 on average before getting a new loan, a 42% jump compared with the same period five years prior.

“The higher it goes, the chances are that people are never going to get themselves out of the situation,” said Jessica Caldwell, head of insights at Edmunds.

About a third of Americans trading in an older car have negative equity, which has been typical in the industry for years. But the average amount Americans are underwater has skyrocketed, Edmunds said, as buyers try to unload cars bought during the pandemic at high prices.

The increased level of negative equity represents another strain on an auto market already under pressure from pricey vehicles and elevated interest rates.

To offset those costs, more car buyers are taking on longer loan terms to keep monthly payments digestible. In the first quarter, the average loan was 70 months on new cars, according to Edmunds data. Car payments in excess of $1,000 are no longer uncommon and can stretch out more than eight years.

But consumers who are underwater on their loan end up paying more on average after rolling over the negative equity into their next car, compounding their debt even more.

The current situation dates to the pandemic’s semiconductor supply crunch, which led to a severe shortage of new cars available on dealer lots. Vehicle prices soared in response, and buyers—who either had the disposable income to spend or lacked other transit options during lockdowns—were willing to pay up.

“You had a lot of dealerships in the Covid era that were overcharging, to say the least,” said Eric Frehsée, president of the Tamaroff Group in the Detroit area. “You’re seeing a lot of those cars coming back and there’s a lot of negative equity because of that.” Frehsée said that his dealerships opted not to charge over sticker prices during the pandemic.

In 2026, buyers with negative equity financed an average of nearly $56,000 for a new car in the first quarter, about $12,000 more than the typical new-vehicle buyer, Edmunds said. That translates to a monthly payment averaging $932 for negative-equity borrowers, the highest level ever recorded. In April 2021, the average new car cost about $41,000.

At the same time, the situation reflects another sign of the current K-shaped economy, where affluent individuals are thriving while others struggle. Even with the increased level of negative equity, the average trade-in equity for a car in March exceeded $6,800, according to JD Power.

“The average consumer is in a good position when buying a vehicle,” said Tyson Jominy, JD Power’s senior vice president of data and analytics. Borrowers with negative equity, however, can have a difficult time securing a loan for a new car, and it could put them at greater risk of falling behind on their payments, studies show.

Consumers who rolled over negative equity from a prior vehicle loan were more than twice as likely to wind up having their car repossessed within two years, compared with those who netted money on a trade-in, a 2024 study from the Consumer Financial Protection Bureau found.

More borrowers have been defaulting on their loan payments, which typically results in a repossession. Default rates on car loans in March rose to the highest levels seen since 2010, according to Cox Automotive, an industry-research firm.

The auto industry has already been grappling with the potential woes of higher gas prices because of the war in Iran. Auto executives have said they don’t expect sales to be significantly affected by the conflict unless it continues for months.

Caldwell said that higher negative equity amounts are likely to persist in coming months. Amid the pandemic and the semiconductor crisis, interest rates rose, she said, meaning borrowers have continued to pay higher costs to take on new car loans.

“We know that people paid an increased price either way,” she said. “I don’t think it’s going to go back down.”

Production bottlenecks and uncertainty over US munitions funding weigh on stock prices for weapons makers

Production bottlenecks and uncertainty over the US’s military budget have led investors to sell global defence stocks despite ongoing conflicts in the Middle East.

Share prices of leading American defence primes Lockheed Martin, Northrop Grumman, RTX, L3Harris and General Dynamics have all fallen since the US bombed Iran at the end of February, despite the military’s massive expenditure of ordnance over the past two months drawing attention to mounting production backlogs.

“[The US has] burned through munitions much faster than we can produce them. Defence companies may get some money up front, but they don’t typically profit until they deliver,” said Steven Grey, chief investment officer at Grey Value Management, which has positions in several global defence stocks.

“If that delivery takes time, why should stock prices have risen more than they already have on profits that won’t be realised for years?”

Lockheed Martin, Northrop Grumman and RTX’s stock all increased by about 50 per cent in the year up to the outbreak of the conflict, powered by US President Donald Trump’s budget request last year boosting defence spending, as well as ongoing turmoil in Ukraine and the Middle East.

Melius Research analyst Scott Mikus said RTX, whose defence subsidiary Raytheon produces the Tomahawk missile, “is poised to be an outsized beneficiary of the war in Iran and higher defence budgets”, noting the Pentagon’s 2027 budget request calls for a 189 per cent increase in missile procurement funding.

Meanwhile, as the prime contractor for the B-21 bomber and the Sentinel intercontinental ballistic missile, Northrop Grumman was likely to benefit from rising geopolitical tensions leading to increasing nuclear proliferation, Mikus said.

Both companies reported first-quarter sales increases on Tuesday, citing robust demand for their defence systems. “Our defence systems business growth is fuelled by the growing demand for solid rocket motors, smart munitions, ammunition and tactical missiles,” Northrop Grumman chief executive Kathy Warden told investors.

Since then, however, both companies’ shares have fallen about 10 per cent, while shares in Lockheed Martin have fallen roughly 5 per cent.

Funds have also flowed out of defence-oriented ETFs as investors pivoted towards “safe haven” sectors, such as energy and utilities, defying expectations that the war in the Middle East would turbocharge American defence stocks. Almost $1bn has been withdrawn from the $14bn iShares US Aerospace & Defense ETF, which is weighted towards the biggest US defence primes, since the conflict began.

“It is what we call a ‘buy the tension, sell the war’ dynamic,” Mikus said, noting that similar market dynamics had played out in the aftermath of Russia’s full-scale invasion of Ukraine in 2022 and the US-led invasion of Iraq in 2003.

The US military is estimated to have used about 1,000 Tomahawk missiles against Iran over the past two months, about 20 times the 58 Tomahawks funded out of this year’s US Navy budget.

Ron Epstein, a defence and aerospace analyst at Bank of America, said the need to replenish US stockpiles would only increase backlogs that leading defence companies were already struggling to address due to their limited production capacity, helping investors to shrug off the conflict.

“The top-line growth for these defence companies is not going to be constrained by demand, but by capacity,” he said.

In April, Trump released a budget proposal seeking a 50 per cent rise in the US defence budget to $1.5tn for 2027. But analysts said investors remained wary of the $1.5tn proposal’s prospects given the political opposition it faces.

“The $1.5tn budget has not been priced in because investors know there’s a long way to go,” said Epstein. “It’s a very unpredictable process in and of itself, and then you have midterm elections coming up that make it even more so.”

Senior Trump administration officials, including defence secretary Pete Hegseth, have coupled their demands for higher defence spending with sharp criticism of big contractors for delayed and over-budget programmes, pledging a radical overhaul of Pentagon procurement practices.

The administration recently held talks with General Motors and Ford to discuss how the Detroit automakers could contribute to US weapons supply chains.

The prominence of drones and autonomous missiles during the Iran conflict has also fuelled speculation that large contractors could miss out amid a pivot towards a new generation of low-cost defence technologies.

Investors have similarly cooled on European defence stocks in recent weeks. MSCI’s Europe Aerospace and Defense index dropped 9.2 per cent in March, its biggest monthly decline in five years.

Shares in recently listed Czech arms maker CSG have dropped almost a third since the conflict began, while Germany’s Rheinmetall and Renk are down about 10 per cent, and Sweden’s Saab is about 12 per cent lower. Shares in Thales slid on Tuesday after the French defence and technology group disappointed with a mixed outlook.

Robert Stallard, analyst at Vertical Research Partners, said it “could link back to war-related uncertainty, and some concern that we are seeing ‘peak defence’”.

“Where is your upside to a plus-50 per cent annual DoD budget request, with an unexpected military conflict on top?” he said. “Similarly in Europe, there continue to be periodic concerns over the impact of ‘peace in Ukraine’ and what that could do to the regional defence spending trajectory, especially for cash-strapped countries like France and the UK.”

Paris-based group in talks with its investors amid slump in high-end market

Luxury marketing collective The Independents has held talks with its investors over selling a stake in the business for more than $1bn, despite the slump in the high-end market. 

The Paris-based group, which counts Céline, LVMH, Saint Laurent and Cartier as clients, has appointed US investment bank LionTree to review its options, according to three people close to the situation.

This could include the sale of a stake in the company, they said, although no decision had been taken about the size of any equity sale.

“The Independents are exploring avenues to bring additional investors into the company,” said a person with knowledge of the negotiations.

Two of the people familiar with The Independents, where revenues reportedly totalled £600mn last year, said investors had been sounded out for their interest in a majority stake valued at more than $1bn.

The company operates about 20 creative agencies such as Italian brand-building firm Karla Otto and events and design group K2. It has about 1,200 employees working in offices from London and Los Angeles to Hong Kong and Dubai.

The Independents and LionTree declined to comment.

The company is owned by its co-founders including Isabelle Chouvet, alongside French media tycoon Stéphane Courbit’s Banijay Group and private equity firm TowerBrook.

Banijay has an option to convert its minority holding into control of the business, according to the people familiar with the matter. Banijay has until June to decide whether to take up this option, one said.

The talks also involve RedBird IMI, the investment group that merged its All3Media TV business with Paris-based Banijay Entertainment this year, the people added. Banijay and RedBird IMI declined to comment.

People familiar with the talks said the sale process had been complicated by the steep challenges facing the luxury market.

Upmarket fashion labels have suffered sharp falls in their valuations due to the impact of the Iran war on key Middle East markets and slowing Chinese demand.

LVMH, the world’s largest luxury group, last week blamed the conflict for its flatlining performance in the first quarter of 2026, with like-for-like sales up just 1 per cent compared with a year ago.

Courbit and TowerBrook led a $400mn investment round for The Independents in 2023, during a post-pandemic boom for the luxury market, to accelerate its development and international expansion.

That fundraising allowed a buyout of private equity group Cathay Capital, which acquired its stake when The Independents was founded in 2017.

China’s smartphone king takes on Elon Musk in Europe with premium EVs

Finance Minister Lars Klingbeil is a sensitive character. Such personalities tend to react irrationally and extremely defensively to criticism. They are prone to resentment and quick retaliatory reflexes.

So it was only a matter of time before the Federal Court of Auditors, too, felt the cold anger of the thin-skinned Social Democrat. Late last year, criticism from the auditors was promptly followed by a budget cut imposed by the Finance Ministry. The move was meant as a public warning shot across the bow of the recalcitrant watchdog, which traditionally plays the role of post-mortem critic. This comes with the unpleasant habit of describing the state of public finances as they actually are — not as Berlin prefers to imagine them.

The Court’s budget was subsequently reduced from €52 million to €47 million, officially on efficiency grounds. What Klingbeil failed to achieve, however, was to silence the auditors entirely.

It has become a bad tradition: as in every year, the Court again warned of an ever-accelerating debt spiral and a fiscal policy that appears to have lost all restraint. The state is living beyond its means, said President Kay Scheller. On the contrary, one might reply: this state is living beyond our means.

The current draft budget foresees total spending of €630 billion, with nearly every third euro financed through borrowing. By 2029, another €850 billion in new debt is planned — pushing visible public debt to €2.7 trillion, or roughly 67% of GDP.

Unfortunately, the Court’s analysis of debt dynamics remains superficial. In its assessment, however, it aligns with recent criticism from the Ifo Institute.

Both institutions criticize how the state handles new debt. We know from Ifo analysis that roughly 95% of the funds from special off-budget vehicles have been diverted to cover deficits across various layers of the welfare state. Germany is not investing — and the private sector is now running on negative net investment, effectively consuming its capital base.

Dig deeper into Germany’s debt swamp and it becomes clear why Berlin consistently avoids the issue.

A recent Ifo paper calculated non-contributory benefits in the statutory pension system. Economists concluded that these hidden costs could amount to as much as 50% of GDP in the long run. This explains why the overstretched state apparatus now acts merely as a firefighter, no longer capable of maintaining infrastructure. Even Scheller’s call to raise the public investment ratio from 8% to 10% is unlikely to materialize.

One can almost be grateful that the Court of Auditors is among the few institutions still attempting to describe the fiscal reality. Yet even it avoids addressing the root causes — deindustrialization, overstretched public finances, and structurally broken budgets at all levels of government. Unsurprisingly, Scheller and his team also steer clear of politically sensitive issues such as open-border policies, which are pushing the welfare state toward implosion.

There is no mention of the costs of the self-destructive Ukraine war, nor any call to halt funding for the sprawling NGO complex or dismantle the green subsidy machine.

The debate misses the core issue. The state is operating an unlimited welfare machine while committing itself to building eco-socialist economic structures. Under such conditions, a return to a lean state is impossible.

Those calling for a return to sound fiscal policy without naming the underlying causes only make it harder to reverse the ideological crash course. Their superficial criticism suggests that the current trajectory can be maintained with cosmetic reforms. The design of the state itself is not to be questioned.

Pressure for change will only arise when rising public debt — largely financed through new bond issuance — drives up refinancing costs. If bond markets eventually turn against Germany’s debt binge, the European Central Bank will likely step in as lender of last resort, pushing inflation sharply higher.

Already, around 8% of federal spending goes toward servicing interest on the growing debt pile.

Meanwhile, the government has outlined how it intends to deal with the incoming debt crisis — by targeting households. Family co-insurance in public health care will be scrapped, as will income splitting for married couples. Inheritance taxes will be broadly increased, and expect debate over a wealth tax alongside significantly higher social security contributions.

Extraction via the CO₂ mechanism will intensify, and wealthy individuals and capable businesses will leave the country. This is not a theoretical scenario but the result of a political relapse into socialist ideology. The spiral of impoverishment is accelerating.

Cover:

-Kevin Warsh testified before the Senate Banking Committee on April 21, asserting that the Federal Reserve is in need of reform and presenting himself as the solution. Nominated by President Trump to succeed Jerome Powell as chair, Warsh advocates for more aggressive monetary policy, including lower interest rates and a reduction in the Fed's $6.7T balance sheet. The conclusion of a criminal investigation into Powell's conduct has removed a key obstacle to Warsh's confirmation. While he has support among business and political circles, his proposed changes may face challenges amid persistent inflation and geopolitical tensions, particularly in relation to Iran. Current expectations suggest the Fed will maintain its interest rate range at 3.50% to 3.75% into 2027.

Interview:

-Rick Rieder, BlackRock's Chief Investment Officer of Global Fixed Income, shares insights on the Federal Reserve, bond-market prospects, and investment strategies in fixed income during an interview with Barron's Ben Levisohn and Lauren R. Rublin. Rieder, who oversees approximately $2.7T in assets and manages the iShares Flexible Income Active ETF (BINC), highlights current market conditions and potential investment opportunities. With a notable history in finance, including roles such as President of R3 Capital Partners and Vice Chairman for the U.S. Treasury, Rieder's extensive experience includes serving on various advisory committees, including those for Alphabet/Google and UBS. His notable accolades include being recognized by Morningstar for outstanding portfolio management and having multiple funds achieve Gold Medals for excellence in fixed income management.

Tech Trader:

-As Tim Cook steps down as CEO, Apple retains its status as the leading consumer electronics company, with 2.5B devices in use and a robust services business generating $109B in sales for fiscal 2025. However, under Cook's leadership, Apple has strayed from its core focus on user experience, a principle championed by Steve Jobs. Notably, newer interface changes and advertising in Maps have diluted this approach. John Ternus, the newly appointed CEO and a veteran of Apple's hardware design, is expected to realign the company with a strong emphasis on user experience. Cook transitions to executive chairman, allowing Ternus to focus on the essential integration of Apple's products and services while navigating global leadership challenges.

The Trader:

-Eli Lilly recently acquired Kelonia Therapeutics for $3.25B, with the deal potentially worth $7B contingent on milestones. Kelonia specializes in "In vivo CAR-T therapy," which offers an efficient method to treat cancer and is exploring applications for autoimmune diseases. While Eli Lilly’s stock initially dipped following the announcement, it has since rebounded slightly, although it is down 17% from a record high in November. Analysts have raised their sales and earnings forecasts, positioning the stock favorably at a multiple of 25 times expected earnings compared to the S&P 500’s 21 times. This acquisition further solidifies Lilly's presence in oncology, following its recent purchase of other companies in the same sector. Analysts express optimism, noting that this strategic move enhances Lilly's capability in cancer treatment.-Demand for retail goods remains strong despite geopolitical concerns and rising oil prices, with apparel stocks particularly appealing. EY-Parthenon's chief economist Gregory Daco notes that consumer spending continues to be resilient, even as sentiment readings appear bleak. Retail sales in March increased by 4% year over year, marking the fastest growth since November. A UBS survey reveals that U.S. consumers plan to spend 4.4% more on apparel and footwear in the next three months compared to last year. UBS analyst Jay Sole indicates that, despite the impact of Middle East conflicts and rising gas prices on consumer perceptions, the data suggests potential for increased spending. The retail sector's fundamentals are considered solid, and stocks are undervalued, trading at about 16 times expected earnings as opposed to the S&P 500's 21 times. This discrepancy could lead to higher stock prices if sales and earnings perform better than expected. Sole recommends several companies, including On Holding, Gildan Activewear, Burlington Stores, TJX Cos., Levi Strauss, and Signet Jewelers, as strong investment opportunities.

Features:

-Markets are displaying optimism despite the ongoing Iran conflict, with over 54% of participants in Barron's latest Big Money poll maintaining a bullish outlook for the next 12 months, an increase from 47% in the October survey. Bearish sentiment has decreased to 17%, and neutral responses dropped to 29%. Many investors perceive the market as fairly valued or undervalued, identifying opportunities in small-caps, international stocks, and notably, the energy sector. Conducted between March 25 and April 10, the poll garnered 105 responses from portfolio managers and strategists nationwide. However, concerns persist regarding geopolitical tensions, stagflation, and rising energy prices, with 59% noting these as primary worries. The average year-end target for the S&P 500 index was set at 7059, which is below Wall Street's consensus of 7460. -Investors are turning to trades like plumbing for job security amid AI disruption, while others can consider purchasing shares of Ferguson Enterprises, a leading plumbing distributor projected to increase by 25% over the next 12 to 18 months as it implements its growth strategy and expands market share. With over 35,000 employees and 1,700 locations, Ferguson serves a wide range of customers including contractors and DIYers through its online platform. Following its listing eligibility for the S&P 500 in August 2024, the company is generating substantial sales and is viewed as undervalued despite a recent earnings multiple increase to 23 times. Parnassus Investments, which owns a notable stake in Ferguson, praises the company’s disciplined management and capital allocation approach.

Europe:

-Amid global oil and natural gas price spikes due to war-related shortages, Texas is experiencing negative natural gas prices, particularly at the Waha pipeline intersection, where it trades at negative $7.05 per million BTUs. This situation arises from an oversupply of natural gas and insufficient pipeline capacity to transport it to demand areas like Asia and Europe. Although U.S. natural gas production is high, averaging 110 billion cubic feet daily, producers are cutting back output due to the inability to scale transportation quickly. Companies like EQT have begun to reduce production tactically, while others, such as Expand Energy, are facing declines. This paradox of demand and negative pricing underscores a significant challenge in the current energy landscape.

Emerging Markets:

-USA Rare Earth is rapidly establishing a complete rare earth supply chain, recently announcing a $2.8b acquisition of the Brazilian mining company Serra Verde Group, which controls the Pela Ema deposit of key magnetic rare earth elements. CEO Barbara Humpton emphasized the transformative nature of the deal, enhancing the company's goal of becoming a leading global producer in rare earth materials. In addition to this acquisition, USA Rare Earth is developing a mine in West Texas and has recently commissioned a magnet-making facility in Oklahoma, aiming to challenge China's dominance in rare earth processing, which currently controls 85% of global capacity. The acquisition involves a payment of $300M in cash and shares of common stock.

Commodities:

-The closing of the Strait of Hormuz during the Iran war has highlighted the vulnerability of the global supply chain, particularly concerning a worldwide sulfur shortage. Sulfur, a byproduct of oil and gas production, has seen curtailed shipments due to the conflict, leading to significant price increases—up 40% to approximately $600 per metric ton since mid-February. Economists Paul Bloxham and Jamie Culling emphasized that sulfur is vital for food production and metals mining. As a response to the shortage, countries like China are planning to limit sulfuric acid exports, exacerbating the situation. The impact extends to various sectors, including fertilizers and copper production, where a rise in sulfur prices is estimated to increase operating costs significantly.

Streetwise:

-The closing of the Strait of Hormuz during the Iran war has highlighted the vulnerability of the global supply chain, particularly concerning a worldwide sulfur shortage. Sulfur, a byproduct of oil and gas production, has seen curtailed shipments due to the conflict, leading to significant price increases—up 40% to approximately $600 per metric ton since mid-February. Economists Paul Bloxham and Jamie Culling emphasized that sulfur is vital for food production and metals mining. As a response to the shortage, countries like China are planning to limit sulfuric acid exports, exacerbating the situation. The impact extends to various sectors, including fertilizers and copper production, where a rise in sulfur prices is estimated to increase operating costs significantly.