Economics in the News – April 13-19, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Once the Strait of Hormuz eventually reopens, it will take a substantial amount of time for companies to regain confidence that hostilities are over in the region. That could lead to continued shortages for products such as jet fuel and natural gas.
For oil companies, the war and closure of the strait has led to 10 percent of the world’s oil supply being shut down, while more than 80 energy facilities have been damaged. According to experts, it could take up to two years to restore output to prewar levels. [The New York Times]
o Many high-end luxury brands invested heavily in selling and marketing their products in the Middle East in recent years. The region accounts for a significant portion of global wealth and sales in Europe and Asia were sluggish.
Since the war between the Unites States and Iran has broken out, many of the stores in the region have been closed. And the ones that have reopened have seen a sharp decline in sales. Before the war broke out, annual sales grew by as much as eight percent. Industry experts remain bullish on the region’s long-term prospects, as long as tourist hubs can once again attract travelers. [The New York Times]
o More companies are adding fees and surcharges, often hidden, on bills, as a way to recover their rising costs. A 2025 study from JD Power found that 34 percent of small businesses add credit-card surcharges, while closer to 20 percent of restaurants are now adding fees and surcharges to customer checks.
As companies are adding charges that consumers don’t see until the end of the transaction, research suggests that the consumer is more likely to pay because they’ve already committed to a product or service. For companies, it’s often an opportunity to blame someone or something else. For example, airlines adding a “fuel surcharge” for airplane tickets. [The Wall Street Journal]
o Did you remember to file your taxes? More than 100 million tax filers, as of April 3, received an average refund of $3,462 from the Internal Revenue Service (IRS). That is more than 10 percent higher than the average refund last year of $3,116.
The larger refund checks are due to major tax cut bill passed by Congress last July. Many workers withheld too much money from their paychecks, as the law went into effect midyear and were based on prior years taxes. Additionally, 70 percent of early filers received a refund this year, marking a three percent increase of refunds for early filers last year. [The Washington Post]
o United Airlines CEO Scott Kirby recently floated the idea of a mega-merger between United Airlines and American Airlines. The deal, if it were to go through, would reshape the airline industry on both a domestic and global scale. A potential merger would create an airline that boasts one-third of passenger traffic.
In many instances, a global crisis, specifically relating to oil, has led to consolidation of the US airline industry. The four largest carriers in America – Delta, American, United and Southwest – have all benefitted and grown from multiple mergers. Critics point to those mergers and question whether they have benefitted the flying public, as it has often come with higher prices, fees and fewer options. Any sort of United Airlines-American Airlines merger would likely see both companies shed significant assets in order to earn antitrust approval. [Bloomberg]
