Axios

Airline deal activity may heat up this summer, even if United has ended its pursuit of American Airlines.

The big picture: Global jet fuel prices are skyrocketing, and supply is dwindling, due to an Iran war that feels no closer to resolution today than it was several weeks ago.

The UAE may be a small country — but its decision to quit OPEC is a BFD with all kinds of market and geopolitical crosscurrents.

Why it matters: The departure of OPEC's third-largest producer, announced Tuesday, is a major blow to the market-managing cartel.

As the Iran war drags on, it's increasingly clear that there is likely no going back for the energy market.

Why it matters: Oil and gas prices will be higher for longer than investors expected, and the market dynamics are shifting — as countries and companies look for alternative sources of energy or oil and for new ways to move it around the world.

Tesla's admission that millions of its older cars can't support full self-driving underscores a new reality: software-driven vehicles are starting to age like smartphones — but without an easy upgrade path.

Why it matters: Cars last far longer than phones — about 13 years on average — setting up costly headaches as their hardware struggles to keep up with rapidly evolving features.

The Iran war is trapping the world's central banks with an energy shock that simultaneously undermines growth and stokes inflation, with no good policy response to either.

• Each of the world's most important central banks faces that dilemma in policy meetings this week.

Why it matters: From Tokyo to Washington, central banks that were on track to normalize policy are now paralyzed, unsure whether the energy price shock will prove more consequential in causing sustained inflation or in sapping growth.

Crude oil futures are at their highest levels in weeks amid the absence of a diplomatic endgame that frees up the Strait of Hormuz.

Why it matters: The soaring costs, combined with a spike in gasoline prices, mean further political pain for President Trump and Republicans.

Commonwealth Fusion Systems said Tuesday it has formally filed a request with grid operator PJM to connect its planned power plant in Virginia.

Why it matters: It's the first time a fusion developer has filed one of these detailed requests to link to a major grid region, Commonwealth said.

The chances of a mega-merger in the airline industry now appear slim, but a spike in jet fuel prices still has the weakest players scrambling for options.

Why it matters: A prolonged rise in jet fuel prices — a quarter of an airline's costs — will widen the divide between the haves and have nots in the industry, potentially winnowing out some of the budget players.

Meta has reserved generating capacity from Overview Energy, a startup that hopes to deploy satellites that direct solar energy to the ground round-the-clock.

Why it matters: Monday's announcement shows how AI giants are pushing the tech envelope in their quest for electricity.

The carbon removal industry isn't panicking over Microsoft's recent pullback — at least not yet.

Why it matters: Microsoft has been the sector's biggest buyer, so any shift raises questions about demand for a very new market.