Mark Filipino hosts this Financial Times news briefing covering global energy crises, geopolitical tensions, and economic disruptions. Key contributors include Henry Foy, FT's Brussels Bureau Chief discussing EU fiscal policy, and Jude Weber reporting on Cuba's energy crisis.

The episode examines escalating U.S.-Iran tensions with Trump's Strait of Hormuz deadline, European Union concerns about energy subsidies creating fiscal instability, a significant downturn in private equity markets, and Cuba's desperate energy situation following oil import restrictions.

U.S.-Iran Standoff Over Strait of Hormuz Access

Iran rejected U.S. ceasefire proposals, demanding permanent war end, sanctions lifting, and safe ship passage protocol through Strait of Hormuz according to Iranian state media.

Trump called Iran's proposal 'significant' but insufficient, setting 8 p.m. Eastern deadline for reopening Strait of Hormuz with warning that 'the entire country could be taken out in one night.'

EU Warns Against Fiscal Crisis from Energy Subsidies

European Union officials urge governments to avoid excessive energy price support measures like subsidies, tax cuts, and price caps to prevent repeat of 2022 inflation crisis.

Spain allocated €5.8 billion for VAT reductions and fuel price cuts, while Poland spends approximately €350 million monthly in lost tax revenues from excise cuts.

Henry Foy explains EU concerns: 'If governments aren't clever and don't roll out measures that are targeted and temporary, Europe could be spending itself into a really big problem.'

Five EU governments called for windfall taxes on energy companies to fund household support while avoiding fossil fuel subsidies that contradict renewable energy goals.

Private Equity Buyouts Hit by AI Disruption Fears

First quarter PE buyouts valued at $172 billion, down 36% from previous quarter and 8% year-over-year according to Deal Logic data.

Software sector concerns drive the decline as artificial intelligence threatens to make certain software companies obsolete, impacting PE's most lucrative investment area.

Middle East war economic impact could worsen the buyout slump, though Q1 2025 still exceeded 2023 and 2024 first quarters.

Cuba's Grid Collapse Sparks Chinese Solar Lifeline

Cuba suffered two nationwide blackouts in March with residents experiencing power for only few hours daily, forcing rushed cooking and closing schools.

Trump's oil export cuts and pressure on other suppliers created crisis after Venezuela's Maduro capture eliminated Cuba's primary oil source in January.

China supplied one gigawatt of solar power in past year, helping address daily 1,500 megawatt electricity deficits according to Cuba Study Group report.

Home solar panels cost 100 times official minimum wage, limiting access to rooftop kits for isolated areas, schools, and hospitals.

Jude Weber notes bleak outlook: 'Things are probably going to continue to get worse for the near future' as Trump remains focused on Gulf situation.

Resources Mentioned

International Exhibition, 1876 (Classic Reprint) Reports and Awards, Group VIII

lar power in past year, helping address daily 1,500 megawatt electricity deficits according to Cuba Study Group report. Home solar panels cost 100 times official minimum wage, limiting access to roof

The Wisdom Group

tter than nothing. In fact, every day, Cuba has a deficit of electricity. And according to the Cuba study group, which has just published a big report on the electricity sector and the infrastructure