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The United States and Israel’s war on Iran has caused the largest energy supply shock in decades.

The Strait of Hormuz is in effect closed, and attacks are being carried out on energy facilities in the Middle East, rattling oil markets.

From Americans filling their tanks at the pump to European factories and Asian economies, the impact is already being felt.

US President Donald Trump says the rise in oil prices is a “very small price to pay” for “safety and peace”. But investors warn that if the conflict drags on, there’s danger of stagflation.

March 9 (UPI) — G7 finance ministers were set to hold an emergency meeting first thing Monday to discuss oil prices after Brent crude surged above $100 per barrel, with an option to release strategic reserves to calm the market on the table.

The virtual meeting, due to get underway at 8.30 EST, comes amid fears that disruption to oil and gas shipments from the Gulf via the Strait of Hormuz, which Iran has closed, could continue for some time, sending energy prices soaring and rattling financial markets.

The joint release of “emergency reserves,” if agreed, would be coordinated by the International Energy Agency, according to the Financial Times.

If G7 nations do release oil reserves, it would be the first time in four years since a crisis triggered by Russia’s full scale invasion of Ukraine triggered similar price shocks, although gas was hit the worst.

Exacerbated by escalating attacks on Gulf countries’ oil fields, refineries and storage plants — impacting their ability to produce and store product, as well as export it — Bent crude jumped more than 25% in Asian trade Monday, hitting a $119.50 per barrel high, before falling back with the price of West Texas Intermediate making similar moves.

Investors also reacted to fears that the crisis will push inflation and borrowing costs higher, with negative impacts for the global economy.

The key Nikkei 225 index in Japan slumped by more than 5% to end Monday down 2,892 points lower, with the jitters spilling over into Europe when the markets there opened.

At lunchtime Monday, the FTSE 100 in London was down 1.4%, Germany’s DAX was down 1.6% and the CAC 40 in Paris was off by more than 2.2%.

Former IEA head Neil Atkinson warned that unless there was a resolution to the situation in the Gulf and flows of oil resumed “very soon” the world faced a “potentially game-changing and unprecedented energy crisis,” even if the reserves were made available.

“Though there are oil stocks around the world, the point is that if this closure of the Strait persists, those oil stocks if they are deployed will be depleted and we are going to be in a situation where, with the oil production actually shut in, in Iraq and possibly in Kuwait and maybe even in time in Saudi Arabia, that we are going to be in a crisis the likes of which we have never seen before,” Atkinson told CNBC.

The South Korean won fell to a 17-year low against the U.S. dollar Monday amid heightened market volatility as oil prices spiked following the expanding conflict in the Middle East.

The won was quoted at 1,495.5 won per dollar at 3:30 p.m., down 19.1 won from the previous session, marking the weakest level since March 12, 2009, when the won-dollar rate hit 1,496.5 won during the global financial crisis.

After opening at 1,493 won, the won-dollar rate touched 1,499.2 won at 10:22 a.m., the lowest intraday level since that day, when the rate reached 1,500 won.

Investor sentiment was dampened by instability in global energy prices. The U.S. benchmark West Texas Intermediate (WTI) crude surpassed US$100 per barrel for the first time since July 2022 on Sunday (U.S. time).

The recent decline in the won has also been driven by a broad dollar rally amid concerns that the U.S.-Israeli operation could escalate into a prolonged regional war.

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OAKLAND — Betty Yee knows what people are thinking. She’s heard what they’ve said and read the many emails she’s gotten.

The former state controller has been running for California governor longer than just about anybody in the cheek-by-jowl field. And yet the Democrat is bumping along near the bottom, a blip in polls and a laggard in the money chase.

But no, Yee said, she has no intention of quitting the race, as she’s been urged, and no fear that, by staying in, she’ll help two Republicans advance to November’s runoff, locking Democrats out of the governor’s office for the first time since George W. Bush was president.

“I just don’t see it,” Yee said, given the way Chad Bianco and Steve Hilton, the top GOP contenders, are smacking each other around, hoping to emerge as the undisputed Republican standard-bearer.

Beyond that, she said, it’s not as if anyone’s running away with the contest; most polls have shown the leading candidate — which depends on the survey — standing atop the pile with around 20% support.

That isn’t exactly landslide territory.

“The public is still shopping,” Yee said. “In the next month or so, we’re going to try to get [a TV ad] on the air, basically make our case and hope that can spread as voters are getting more focused on the race.”

Which is not to say Yee is delusional.

“As a candidate, I make that assessment every day about whether we’re going to be viable or not,” she said last week, just before stopping by the Alameda County voter registrar‘s office to file paperwork for the June 2 primary.

“Right now, it’s less than a 50-50 chance,” Yee said, suggesting it’s her job to boost those odds by getting voters to appreciate what she offers, which amounts to unvarnished talk about the challenges facing the next governor and the ways Sacramento — which has been run for years by fellow Democrats — isn’t working.

“ ‘Accountability’ has kind of become a dirty word … where it’s about who we’re going to throw under the bus, rather than stepping back and saying, ‘What have we gotten for the dollars that we spend and, if we’re not getting those outcomes, how do we do better?’ ”

Yee served two terms as controller, in effect the state’s chief financial officer, and 10 years before that on the Board of Equalization, which oversees property tax assessments. She’s isn’t trying to buy the governorship, like billionaire Tom Steyer, or leverage her political celebrity, like cable-TV fixtures Katie Porter and Eric Swalwell. Instead, Yee is running a grassroots campaign, visiting nearly all 58 California counties and holding as many face-to-face meetings as humanly possible.

“I’m in the trenches,” she said. “I knock on doors every election cycle because to me, that’s the reality check of where people really are in terms of their lives.”

Which is certainly an admirable approach, albeit a rather idealistic strategy in a state of nearly 23 million voters, spread over roughly 800 miles from north to south. It would take more than two years of round-the-clock campaigning just to give each and every one a quick handshake.

The most notable feature of Yee’s candidacy is her message. She’s not selling barn-burning populism or viral take-downs of President Trump — “I don’t have any gimmicks, I don’t swear, I don’t have a reality-TV show personality” — but rather practical know-how and a deep understanding of state government.

It’s almost quaint in today’s theatrical political environment.

Seated at a sidewalk table outside a coffee stand in downtown Oakland, Yee focused on California’s stretched-thin budget, which happens to be her area of expertise.

“People ask what would you do in your first days as governor, if you have the privilege of serving,” Yee said, as her butterscotch latte sat cooling. “I’d come clean with the voters about where we are fiscally.”

After years of surpluses, she said, the state is spending more than it can afford. Facing a structural deficit, the next governor will have to cut programs and raise taxes, not just one or the other, with corporations and California’s richest residents being forced to cough up more. (She’s dubious, however, of a proposed November ballot measure imposing a one-time 5% tax on billionaires, questioning whether it would stand up in court.)

Sacramento’s credibility, Yee suggested, is on the line.

Before any expansive new programs can be implemented — and she has some notions for how to make life more affordable, increase access to healthcare and create jobs — Californians have to be convinced their tax dollars are being well spent and delivering proven results. “I would really insist on and invite stricter accountability of what we do with our money,” Yee said.

She’s not beyond criticizing the current administration.

“I mean, I’ve been termed out as controller since January 2023. I still get calls from companies in the [European Union], Canada, even Mexico about how we want to do business with California. Who do we talk to?” Yee said. “So I’ll send them over to the governor’s Office of Business Development and they tell me, ‘Well, we try to call people, but nobody’s answering our call.’ ”

(In response, a spokesman for the Office of Business and Economic Development touted California as “a premier hub for international business” and described foreign trade and investment as major drivers of the state economy.)

As for Gov. Gavin Newsom, while she supports his teenaged trolling of Trump, she said it shouldn’t be done through official channels, , or on the taxpayers’ dime.

“We have to focus on making the state work,” Yee said, “and that’s where I’m more focused on because people … want service delivery. They want government to be responsive to their needs. Somebody just pick up the damn phone on the other line to help them.”

Tough medicine, as she described it, and “stabilization” — which is “kind of my theme” — won’t make a great many hearts go pit-a-pat. But Yee hopes that straight talk and her distinct lack of ornamentation will count for something with California voters.

“The climate now is that people are very drawn by the performative approaches,” she said. “However, I think that will change. I want to give [voters] credit, because I do think they are very discerning when they’re ready to mark their ballot.”

The coming weeks will test that premise. And Yee is staying put.

March 6 (Asia Today) — LG HelloVision is still struggling to revive its mobile virtual network operator business, with subscriber growth and revenue showing little momentum despite broader expansion in South Korea’s budget mobile market.

The company said its budget mobile revenue rose to 156.7 billion won ($118 million) last year from 156.1 billion won ($117 million) a year earlier, an increase of just 0.4%.

The business remains one of LG HelloVision’s key revenue sources, accounting for about 10% of total sales. But its performance has remained largely flat as subscriber growth has slowed.

LG HelloVision said its budget mobile subscriber base, including internet-of-things lines, stood at about 770,000 in the first half of last year, up only about 20,000 from a year earlier.

Industry analysts said the company received limited benefit from increased number-transfer demand that followed last year’s telecommunications hacking incident.

South Korea’s three major wireless carriers responded with aggressive marketing campaigns to attract subscribers, reducing the spillover effect that smaller operators such as LG HelloVision had hoped to capture.

Its parent company, LG Uplus, reported about 21.7 million mobile subscribers last year, up 6.6% from about 20.4 million a year earlier. Mobile service revenue rose to 6.67 trillion won ($5.01 billion) from 6.43 trillion won ($4.83 billion).

One industry official said LG Uplus, which was seen as less affected by the hacking fallout, appeared to absorb a large share of switching demand through aggressive marketing.

Analysts also pointed to LG HelloVision’s cautious approach to new pricing plans and promotions as another reason for the prolonged slump.

The company has faced profitability pressure while growth in its core pay television business has stalled. After posting operating profit in the 40 billion won range in 2023, it has remained in the 10 billion won range over the past two years.

Aside from a new plan introduced late last year that included compensation for financial fraud such as voice phishing, the company has made few notable changes to its budget mobile offerings.

LG HelloVision said it plans to try to revive subscriber growth this year with a new promotion tied to next week’s launch of Samsung Electronics’ Galaxy S26 smartphone series.

Customers who buy a Galaxy S26 device and sign up for one of the company’s plans will receive a 30,000 won ($23) gift certificate. Subscribers to its Coupon Pack plan will also receive additional coupons worth 120,000 won ($90).

The company has also added artificial intelligence features to improve the sign-up process. On its website, users can enter their preferences and receive tailored plan recommendations along with summaries of customer reviews.

Still, analysts say competition with the three major wireless carriers is likely to remain a challenge.

Industry observers expect another round of large smartphone subsidies this year, led in part by KT, which reportedly lost a substantial number of subscribers earlier this year after penalty fees were waived for some customers.

Given the structure of the budget mobile market, analysts said LG HelloVision may need to focus more heavily on low-cost promotional plans and more specialized offerings aimed at specific customer groups.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260306010001749

March 6 (UPI) — The military escalation in the Middle East has shaken global energy markets and put Latin America on alert. The rise in oil prices opens an uncertain scenario if the conflict drags on, but it also generates expectations among the region’s exporting countries.

In that context, Argentina is following the crisis with caution, but also with interest. A more expensive barrel of oil can translate into higher export revenues, which is important for an economy that seeks to increase foreign currency inflows and strengthen its fiscal accounts.

Attention is focused on Vaca Muerta, one of the world’s largest reserves of unconventional oil and gas. The field is in the Neuquén Basin in Argentine Patagonia, and has become the country’s main energy bet.

From there, companies and analysts are closely watching every signal coming from the Middle East. In the sector, a cautious attitude prevails, summed up in the logic of wait and see.

According to data from consulting firm Gas Energy Latin America, the price of a barrel rose from about $64 to nearly $76 after the escalation of the conflict. The jump of around $12 benefits countries that sell crude abroad. Brent Crude was trading at about $93 on Friday as prices continue to rise largely because of oil tanker disruption in the Strait of Hormuz.

Álvaro Ríos Roca, former hydrocarbons minister of Bolivia and director and founder of the firm, told UPI that many Latin American countries depend on selling raw materials such as oil, minerals or agricultural products.

He said these countries earn money mainly from those resources because they do not produce or export much science or technology.

For that reason, when the price of oil rises, countries that produce it earn more money and the state also receives more taxes. That money helps them maintain their public finances, which are often weak.

In this scenario, the analyst identified three clear beneficiaries: Brazil, Guyana and Argentina. All three export more oil than they import, so the price increase is directly reflected in their revenues.

Even so, Ríos Roca believes Argentina has an advantage within the region.

“Argentina has the best prospects in oil and gas. Its exports will continue growing because the international market is demanding more energy,” he said.

Part of that expectation is explained by energy projects already underway. One of them is a mid-scale liquefied natural gas initiative led by Pan American Energy that aims to begin exports in the second half of 2027.

In parallel, another larger project promoted by YPF plans to start large-scale sales between 2030 and 2031. Both projects aim to turn Argentina into a significant exporter of natural gas in the global market.

The situation is different in Brazil. The country exports large volumes of oil, but does not have the same capacity to export gas. Much of the gas it produces is reinjected into oil fields to maintain the pressure that allows crude extraction to continue. Another portion is used in the domestic market.

Argentina, by contrast, bases its production on a technique known as hydraulic fracturing, or fracking. This involves injecting water, sand and chemicals at high pressure to fracture deep rock and release oil and gas trapped underground. It is the same system that fueled the U.S. energy boom over the past decade.

For now, the analyst believes oil prices will continue to be shaped by developments in the Middle East conflict.

“I don’t think it will reach $100. On the other hand, if the crisis eases in the coming weeks, the price could stabilize near $70 per barrel,” Ríos Roca estimated.

Daniel Dreizzen, former secretary of energy planning of Argentina, agrees that rising prices benefit all producing countries.

“Export revenues could increase by about 20%, in line with the rise in oil,” he told UPI.

Deizzen also pointed to a key factor in Argentina’s case: The country’s refining capacity is practically at its limit. That means any additional oil produced will be destined for international markets.

“Argentina cannot refine much more. So the extra crude is exported,” he said.

That scenario also benefits oil companies, which sell the same product at a higher price. If the domestic market follows the so-called “export parity,” internal prices tend to align with international ones. That improves profitability and may encourage new investments in the energy sector.

While some countries gain from the new scenario, others face a more complex outlook. That is the case of Mexico.

According to Ríos Roca, Mexican production will continue declining due to a lack of investment. State-owned Petróleos Mexicanos, or Pemex, carries heavy debt with contractors and has little room to finance new exploration projects.

“Mexico had very strong production for decades, but it has been in decline for years. Even Venezuela now has better prospects,” he said. In Venezuela’s case, some analysts see a possible return of international investment, which could reactivate part of its energy industry.

In contrast, several Latin American countries would be on the losing side if high prices persist. Net energy importers such as Central American countries, as well as Bolivia, Paraguay, Uruguay and Chile, will have to pay more for the fuel they consume. The same applies to many Caribbean economies, where energy costs have a direct impact on inflation and growth.

Beyond the current situation, analysts agree on a global trend: demand for natural gas will continue growing.

“There is no decarbonization of the planet without natural gas,” Ríos Roca said. In that context, liquefied natural gas trade is expanding rapidly and opening opportunities for new exporters.

Argentina seeks to position itself in that market through LNG projects being developed around Vaca Muerta. The same trend could also emerge in Venezuela, where initiatives to export gas in the coming years are under evaluation.

However, the immediate direction of the energy market largely depends on what happens in the Middle East. Both analysts concurred that the key factor is not only the duration of the conflict, but also the damage that oil and transport facilities may suffer.

“Productive infrastructure is being destroyed amid the attacks,” Ríos Roca said. If those facilities are seriously damaged, the effects on the market could last much longer than the conflict itself. In that case, the impact on oil prices would be deeper and more prolonged.

March 6 (UPI) — The Federal Bureau of Investigation is investigating what it calls a “suspicious” breach of networks containing information of ongoing investigations, though details of them have not been revealed.

The cybersecurity incident on a network used for wiretaps and intelligence surveillance warrants was confirmed Thursday by CBS News, CNN and Politico.

Investigators declined to offer more information on who was behind the breach or what may have been accessed during what the FBI called “abnormal log information” in mid-February.

The Bureau alerted Congress about the breach this week.

“The FBI identified and addressed suspicious activities on FBI networks and we have leveraged all technical capabilities to respond,” the bureau said.

The FBI, in its alert to Congress, said that the breach included efforts at “leveraging a commercial Internet Service Provider vendor’s infrastructure” in order to access the bureau’s networks.

The White House, FBI, National Security Agency and Cybersecurity and Infrastructure Agency are investigating the breach, noting to lawmakers that the system accessed in the hack contains information on targets of law enforcement investigations and it appears to have been “sophisticated.”

There have been reports that China is allegedly behind the breach, however a request for comment from UPI on Friday night about the reports had not been responded to by publication time.

“The affected system is unclassified and contains law enforcement sensitive information, including returns from legal process, such as pen register and trap and surveillance service returns, and personally identifiable information pertaining to subjects of FBI investigations,” the notice to Congress reportedly reads.

The breach has been compared to the 2024 Salt Typhoon breach that nabbed communications records for millions of people in the United States, including those of top level federal officials.

Salt Typhoon, a Chinese hacking group that is believed to be sponsored by China’s government, that year accessed a wide range of U.S. communications companies and U.S. government systems.

As the United States and Israel’s war on Iran unfolds over the coming days and weeks, the scale of the fallout for the global economy will be measured at the petrol pump.

The biggest threat the conflict poses to global economic health lies in rising energy prices.

Iran’s effective closure of the Strait of Hormuz and Iranian attacks on key energy production facilities in Qatar and Saudi Arabia have paralysed a substantial chunk of the world’s energy supply.

For a global economy already rattled by US President Donald Trump’s tariffs and what many see as his unravelling of the post-World War II order, much now depends on how long the disruption lasts.

A sustained surge in energy prices would drive up the cost of everyday goods.

Central banks would then likely raise borrowing costs to curb inflation, dampening consumer spending and dragging down economic growth.

“It’s really a question on how long the disruption of flows through the Strait of Hormuz lasts and whether there will be destruction of physical assets,” said Anne-Sophie Corbeau, an analyst at Columbia University’s Center on Global Energy Policy.

“For the moment, the market is pricing a short disruption and no destruction. But that may change in the future. We simply do not know right now how this whole crisis ends.”

While Iran’s threats to shipping have halted traffic through the Strait of Hormuz, the conduit for one-fifth of the world’s oil, crude prices have seen relatively modest gains so far.

Brent crude hovered about $84 a barrel on Friday morning, US time, up about 15 percent compared with pre-conflict prices.

That gain pales in comparison with past crises.

During the 1973-74 oil embargo led by OPEC’s Arab members, prices quadrupled in just three months.

Since then, the world’s dependence on Middle Eastern oil has declined substantially.

Today, the US is the biggest producer globally, producing some 13 million barrels a day, more than Iran, Iraq and the UAE combined, according to the US Energy Information Administration.

But if supply disruptions extend beyond a few weeks, oil prices could rise precipitously.

Storage capacity constraints

The seven oil-producing Gulf nations – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – are likely to run out of crude oil storage capacity in less than a month if the Strait of Hormuz remains closed, according to an analysis by JPMorgan Chase.

With storage capacity depleted, producers would be forced to cut production.

“While there will be some capacities elsewhere, and some options to use pipelines rather than shipping, it is incredibly difficult to replace the sheer volume as we are talking about an average of 20 million barrels of oil per day that usually cross the Strait of Hormuz,” said Sarah Schiffling, a supply chains expert at the Hanken School of Economics in Helsinki.

“This important maritime chokepoint provides very significant leverage in the global economy.”

This week, Goldman Sachs analysts estimated that global oil prices will likely hit $100 a barrel – a threshold not seen since Russia’s 2022 invasion of Ukraine – if shipping through the waterway stays at the current reduced levels for five weeks.

In an interview published by The Financial Times on Friday, Qatar’s energy minister Saad al-Kaabi warned that producers in the region could halt production within days and that oil could soar as high as $150 a barrel.

Such increases would reverberate through the global economy.

The International Monetary Fund has estimated that global economic growth is reduced by 0.15 percent for every 10 percent rise in oil prices.

The pain would not be spread evenly.

About 80 percent of the oil shipped through the strait goes to Asia.

India, Japan, South Korea and the Philippines, which are all highly dependent on foreign energy imports, would be among the economies most vulnerable to spikes in the cost of necessities such as food and fuel.

“The effect would be felt in Asia and Europe in particular,” said Lutz Kilian, an economist at the Federal Reserve Bank of Dallas.

“Some countries, such as China, have ample oil reserves to help weather a temporary outage, while others do not.”

Liquefied natural gas (LNG), which is also shipped through the strait and has fewer alternative suppliers outside the region than crude oil, has already seen much steeper price rises.

European prices of LNG surged by as much as 50 percent on Monday after state-run QatarEnergy, which ships about one-fifth of global supply through the waterway, announced a halt to production following drone attacks blamed on Iran.

“Gas will be more impacted because the market was still relatively tight and stocks are low in Europe as we are at the end of winter; also, there is no replacement for the LNG lost,” Corbeau said.

Prolonged uncertainty

With US President Donald Trump signalling that he intends to continue the assault on Iran for at least several more weeks, the extent to which Tehran is willing – or able – to keep the strait closed will be critical to the global economy.

At least nine commercial vessels have been targeted in attacks in or near the strait since the start of the conflict, prompting multiple insurance firms to cancel coverage for vessels in the Gulf.

While traffic through the strait has not halted, it is down about 90 percent compared with normal levels, according to ship tracker MarineTraffic.

“The uncertainty itself is probably the most dangerous part. Supply chains hate uncertainty,” Schiffling said.

“It is possible to plan for almost anything, but not knowing what will happen makes it really challenging to adapt operations.”

On Wednesday, Trump said he had ordered the US International Development Finance Corporation to start insuring shipping lines in the region in order to keep trade flowing.

Trump also said the US Navy could begin escorting vessels through the strait if necessary.

“As long as Israel and the US are able to suppress Iranian drone and missile attacks in the strait to the point that the bulk of the oil tankers gets through, and as long as the United States provides back-up insurance for shippers and their cargo, the global economy may make it through this war without a recession,” Kilian said.

“On the other hand, if there is a severe disruption of oil traffic, the economic costs will grow the longer the disruption lasts.”

BRITISH Airways is launching the world’s largest business class cabin this year.

This week, new information about British Airways‘ new business class seats was leaked.

The leak included the proposed seat plan, revealing the expected layout of the airline’s new A380 cabin.

The new Airbus A380 configuration will feature 110 Club World seats, making it the largest business class cabin on any aircraft.

BA is set to start refurbishing its A380s in the second quarter of this year and inside the refitted planes, passengers will find Club Suites – the newest business class offering.

The suites will feature a privacy screen door, a special lining that reduces noise, a 53.3cm-wide seat and a 200cm bed.

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Passengers will also be able to make use of a 47cm touchscreen as well as side bins and cabinets for their belongings.

Every seat will also have direct aisle access.

The number of premium seats will increase, meaning that the total capacity of the aircraft will be lower.

According to the leaked seat plan, the main deck will feature 12 new first class suites, 84 premium economy seats and 215 economy seats.

The upper deck will be just for Club World business class, with 110 seats in total.

In comparison, this will be a 48-seat reduction compared to the current layout which features 14 first class seats, 97 business class seats, 55 premium economy seats and 303 economy seats.

Club Suites are already available on all A350s, 787-10s, and most 777s from London Heathrow Airport.

In mid-2026, British Airways is also set to introduce its new First seat.

The seats are designed to have a “modern luxury hotel feel” with “home comforts” and “thoughtful British touches”.

The new First seat will be wider and longer and will feature an 81.2cm 4K touchscreen.

The seats will have a ‘buddy dining’ feature as well, which will allow two passengers to dine together in one suite.

There will be a multi-purpose ottoman too, and a floor-level wardrobe.

These seats also form part of the airline’s A380 retrofit plans.

British Airways mainly uses its A380s from London Heathrow to major long-haul destinations such as Los Angeles, Miami, Boston and Johannesburg.

In other flight news, British Airways has launched a business class sale with £500 off flights.

Plus, these are five of the best solo travel destinations according to British Airways experts from beach cities to A-lister hotspots.

March 6 (UPI) — Global shipping giant Maersk announced Friday it was temporarily halting two key routes linking the Middle East and Gulf region with the Far East and destinations in Europe as a precautionary step due to what it described as “the escalating” Iran conflict.

The company said in a news advisory that following an assessment of the risks to shipping in the Gulf region and an operational review, it had taken the decision “as a precautionary measure to ensure the safety of our personnel and vessels while minimizing operational disruption across our wider network.”

“For the ME11 [Middle East-Europe] and FM1 [Middle East-Far East] final eastbound voyage, we are finalizing the timing and vessel details and will update you as soon as this information is confirmed,” it added.

Maersk also said that it was suspending shuttle services within the Gulf region until further notice and that its ME1 service connecting the Middle East with Northern Europe would temporarily bypass Dubai in both directions and only stop in Oman before going straight on to India on the eastbound leg and Morocco on the return leg.

The suspensions ensure Maersk’s vessels stay clear of the Strait of Hormuz amid threats by Tehran to “set fire” to anything that tries to pass in or out of the Persian Gulf.

Markets see the Danish company as a bellwether of global trade, with the move adding to escalating supply chain disruptions due to the conflict engulfing the region following strikes launched against Iran by the United States and Israel at the weekend.

Shipping via the Strait of Hormuz, through which 20% of the world’s oil and gas is shipped out from Iraq, Saudi Arabia, Kuwait, Bahrain, the United Arab Emirates and Qatar to the rest of world, is effectively at a total stop.

At least 147 container ships are stranded on the wrong side of the strait, taking refuge in the Persian Gulf.

Security fears have prompted major shipping lines, including Switzerland’s MSC and France’s CMA CGM, to ditch plans to resume using the Suez Canal route and continue diverting the long way round via the tip of southern Africa. MSC has temporarily halted all bookings for the Middle East.

The disruption has thrown schedules, caused congestion at ports and sent freight rates for everything higher.

Shares in Maersk were trading 0.6% higher on the NASDAQ Copenhagen Exchange on Friday afternoon at $2,637 a share.

SACRAMENTO — Gov. Gavin Newsom plans to spend $19 million promoting California and dispelling “myths driven by misinformation and political rhetoric” in a marketing campaign that would run through the final months of his administration as he weighs a potential run for president.

The new contract, which is in the bidding process, comes as Newsom’s political future and national standing are closely tied to how voters view California’s economy, crime and quality of life — issues that have become central to attacks from President Trump and conservative media outlets.

The Governor’s Office of Business and Economic Development is seeking a contractor to design a statewide taxpayer-funded “California Brand Campaign,” with two-thirds of spending under the proposal to be used for paid advertising and media placements. Bidding on the contract opened Feb. 24 and is expected to end March 13.

The solicitation frames the campaign as an effort to push back on what Newsom has often described as misleading narratives about California. The campaign would launch during a period of financial uncertainty for the state, with Newsom’s January budget projecting a $3-billion deficit next fiscal year.

“California and its business climate have been falsely and maliciously maligned for years, and the state has a right to tell the true story — California is a great place to do live, work, invest and visit,” said Newsom spokesperson Tara Gallegos. “Setting the record straight will benefit every business, worker and resident of this state.”

Newsom is contemplating a run for president in 2028 and says he remains undecided about whether he will pursue the Oval Office.

State Sen. Roger Niello (R-Fair Oaks), who is vice chair of the Senate budget committee, said the language of the proposal request is concerning. He said it would make it easier to stifle criticisms of policies that he says make it difficult to do business in California.

“This is clearly part of the Gavin Newsom for President campaign, but what is most troubling to me is that this is a program to be developed by some private-sector contractor to define what is acceptable speech in the state of California,” Niello said. “That scares the stuffing out of me.”

The negative image of California — homeless encampments lining the streets, smash-and-grab robberies at malls and an exodus of residents and businesses fleeing high taxes and nanny-state governance — could be a liability for Newsom if he runs for president.

Newsom has seen his popularity surge in the last year after his fight-fire-with-fire approach to countering Trump’s rhetoric. The two-term governor has used his expanding platform, including a podcast and nationwide book tour for his recently released memoir, to repeatedly push back on Trump’s criticisms of California. He argues that California remains one of the world’s largest and most dynamic economies and the envy of other states.

The tone of the marketing campaign bid request itself echoes that message, with its introductory paragraph pulled directly from Newsom’s State of the State speech in January.

“California has never been about perfection,” it reads. “It’s about persistence. The courage of our convictions and the strength to embody them. That’s the California Way.”

Mike Madrid, a Republican strategist who runs the research nonprofit Latino Working Class Project, said scrutiny of the campaign will depend on whether the ads veer into politics or overtly promote Newsom in the way federal border security ads showcased the now ousted Homeland Security Secretary Kristi Noem.

“You have to ask why now?” Madrid said of Newsom’s timing for the California ad campaign. “He’s in the eighth inning of a nine-inning baseball game. Timing and tone are everything when considering the appropriateness.”

The use of taxpayer dollars to combat negative publicity about the state and the governor isn’t new under the Newsom administration.

Newsom tapped an employee in his communications office to serve as his “deputy director of rapid response” in 2024. Staff member Brandon Richards, who made $136,000 last year, is tasked with quickly dispatching responses to information the governor’s team deems inaccurate or misleading that is spread on social media and in the media.

When right-wing accounts claimed in February that Newsom allows dogs to vote in California, Richards responded with a CBS News article reporting that a woman was charged with five felonies for registering her canine. Richards and the governor’s office pushed back on false assertions that Newsom and his wife, First Partner Jennifer Siebel Newsom, were stealing money from the state through her office that same day.

Newsom’s frustration reached a boiling point over claims about the state’s response to the Los Angeles wildfires last year. President Trump publicly blamed Newsom and “his Los Angeles crew” for the disaster, though the Republican’s claims that a lack of water in Southern California led to a shortage for firefighters were widely debunked.

Newsom’s political team launched a website in January 2025 to fight misinformation about the L.A. fires, which he said at the time would “ensure the public has access to fact-based data.” The site, www.californiafirefacts.com, no longer appears to exist.

At one point, however, it redirected viewers to the redistricting campaign website for Proposition 50, according to internet archives. Newsom championed the successful redistricting ballot measure to add more Democrats to California’s congressional delegation, a direct response to Trump urging Texas and other Republican states to reconfigure their congressional boundaries to elect more Republicans to Congress.

Newsom adopted an even more aggressive social media strategy last summer after Trump deployed the National Guard and U.S. Marines to California during federal immigration sweeps. The governor directed his team to match the brash communication tactics emanating from the White House. His aides continue to shoot down criticism and launch their own snarky assaults on Trump and his allies.

The new ad campaign appears to be an extension of his work to refute the anti-California narrative.

The request for bids says “some look at this state and try to tear down our progress. They attack our values and caricature our culture. They distort the data to diminish our accomplishments.”

March 5 (UPI) — The United States and Venezuela will re-establish diplomatic and consular relations just over two months after former Venezuelan President Nicolas Maduro was deposed from power.

The U.S. Department of State made the announcement on Thursday evening after high-ranking U.S. officials met with their counterparts in Venezuela to negotiate greater access to oil, critical minerals and gold.

“This step will facilitate our joint efforts to promote stability, support economic recovery and advance political reconciliation in Venezuela,” the State Department said in a statement.

“Our engagement is focused on helping the Venezuelan people move forward through a phased process that creates the conditions for a peaceful transition to a democratically elected government,” officials said in the statement.

U.S. Secretary of the Interior Doug Burgum met with interim Venezuelan President Delcy Rodriguez, who was installed as the country’s leader after the U.S. military captured Maduro and brought him to the United States to face charges that include narco-trafficking.

Burgum and Rodriguez were discussing oil and critical mineral opportunities, in addition to finalizing an American-brokered deal with a Singapore-based company to mine and buy $100 million in gold, The New York Times reported.

Rodriguez said after Burgum’s two-day visit that her government has “full willingness to build a joint work agenda based on respect and mutual benefits,” specifically with regard to energy and other business cooperation, Axios reported.

March 5 (UPI) — Secretary of Health and Human Services Robert F. Kennedy Jr. announced on Thursday that the department will be pushing for increased nutrition education in medicine.

Kennedy made the announcement after having communicated with dozens of medical schools in the last couple of months to increase what doctors learn about human nutrition.

Fifty-three medical schools have agreed to start requiring that every medical student complete 40 hours of comprehensive nutrition education or an equivalent this fall, the HHS chief said at a presentation of the initiative.

The push for increased nutrition education follows Kennedy’s announcement in January of new dietary guidelines and a new food pyramid aimed improving Americans’ diets.

Kennedy called the initiative a “transformative program that will reshape the way that we train doctors in this country.”

“Chronic disease is bankrupting our health system and poor nutrition sits at the center of that crisis,” Kennedy said in a news release.

Surveys have found that medical students receive as little as 1.2 hours of formal nutrition education per year, three-fourths of U.S. medical schools do not require education courses and about 14% of residency programs require nutrition courses, according to HHS.

The 53 medicals, across 31 states, that have made agreements with the Trump administration will also be eligible for federal funding to

The administration also will now require U.S. Public Health Service officers to take a minimum number of continuing nutrition education hours as part of their overall continuing education requirements, HHS said.

Since the late 1960s, doctors and health experts have noted that nutrition education does not rank high enough in medical education, NBC News reported.

Among the topics that Kennedy and HHS have suggested be considered for school curricula — a list of 71 has been circulated as the department works with medical schools to join the initiative — include nutrient deficiencies, food allergies, dietary supplements, wearable devices, composting and food safety, The New York Times reported.

March 5 (UPI) — Argentina’s main business organizations issued an unusual public warning to President Javier Milei’s government, calling for “respect” for the private sector and warning about the difficult situation facing the country’s industrial base.

The statements followed remarks by Milei during the opening of the legislative year in Congress, when the president sharply criticized industrial business leaders and accused them of benefiting for years from a protectionist and corrupt economic system.

The reactions came mainly from the Argentine Industrial Union, known by its Spanish acronym UIA, and the Argentine Business Association, or AEA, two of the most influential groups representing the country’s private sector.

Under the premise that “without industry there is no nation,” the UIA defended the productive sector in a statement responding to the president’s comments and expressed concern about the situation of factories across several provinces.

“In this stage of transformation, we want to be clear: respect is a basic condition for development. Respect for those who produce, invest and create jobs across the country. Respect is the starting point to rebuild the confidence Argentina needs, both domestically and internationally,” the organization said, according to a report by Argentine newspaper Perfil.

The UIA also said business leaders should not be blamed for economic distortions accumulated over decades and called for clear rules to guide the transition toward a more open economic model.

Industrial representatives warned that many companies, especially small and medium-sized firms, are facing a difficult period marked by falling consumer demand, heavy tax pressure and financial constraints.

The group said Argentina’s industrial sector produces about 19% of the country’s gross domestic product and contributes 27% of national tax revenue. It also generates 19% of formal employment, with about 1.2 million workers, and supports another 2.4 million indirect formal jobs throughout the production chain.

The AEA, which represents owners of some of the country’s largest companies, adopted a more moderate tone.

The organization acknowledged progress by Milei’s administration in stabilizing the economy, but said relations between the state and the private sector must be based on respect and cooperation to facilitate new investment.

Despite the critical tone, the business statements avoided a direct confrontation with the government and stressed the need for cooperation, digital outlet Infobae reported. Both organizations said economic stabilization must be accompanied by policies that encourage productive investment and support the industrial sector.

Although much of Argentina’s business community initially supported Milei’s economic reforms, the episode marks one of the first public criticisms by major companies since he took office.

A growing number of factory closures and a slowdown in industrial activity have begun to trigger concerns within the private sector.

SEOUL, March 5 (UPI) — South Korean zinc producer Young Poong has become embroiled in a new controversy with shareholder KZ Precision, which manufactures hydraulic equipment.

Young Poong, a major shareholder of the world’s largest non-ferrous metals producer Korea Zinc, said Wednesday that it has brought KZ Precision, an affiliate of Korea Zinc, to court.

Young Poong accused KZ Precision of deliberately creating an illegal cross-shareholding structure during the Korea Zinc management control dispute ahead of Korea Zinc’s shareholders’ meeting early last year.

Young Poong alleged that KZ Precision sold its shares in Young Poong to an Australian-based Korea Zinc subsidiary with the aim of restricting Young Poong’s voting rights over Korea Zinc.

Over the past year, Korea Zinc has sought to fend off a takeover bid from Young Poong, which has joined with Korea’s top private equity firm, MBK Partners.

“We have filed a damages lawsuit against KZ Precision as our shareholder value was harmed by an unlawful restriction of voting rights,” Young Poong said in a statement.

“As the largest shareholder of Korea Zinc, we will keep playing a responsible role in normalizing the company’s corporate governance and enhancing shareholder value,” it added.

Meanwhile, KZ Precision criticized Young Poong’s management.

“Young Poong’s corporate value, reputation and internal control system have been damaged to an irreparable extent, resulting in adverse effects on shareholder value,” KZ Precision said in a statement.

“The current management of Young Poong was hesitant to make capital investments, which caused the corporation to lose competitiveness in its core smelting business and accumulate losses,” it said.

Young Poong has suffered from operating losses over the past few years, totaling $50 million in 2021, $74 million in 2022, $97 million in 2023, and $60 million in 2024. The Seoul-based company has yet to disclose last year’s results.

KZ Precision also took issue with the environmental concerns involving Young Poong, whose smelter operations in Korea were suspended for two months last year after discharging polluted wastewater without approval.

In response to Young Poong’s claim that it has channeled hundreds of millions of dollars to improve the environment around its smelter, KZ Precision argued that there may be accounting irregularities, which are reportedly under investigation by regulators.

South Korean stocks sharply rebounded on Thursday from the previous session’s sharpest decline ever, soaring almost 10 percent, amid signs of an easing oil price surge sparked by the ongoing Iran conflict. The local currency rose against the U.S. dollar.

The Korea Composite Stock Price Index (KOSPI) added 490.36 points, or 9.63 percent, to close at 5,583.9, snapping the three-session losing streak.

It marked the largest daily gain in terms of points in KOSPI history, renewing the previous record of 338.41 points set on Feb. 3.

Also, the 9.63 percent rise is the second steepest since Oct. 30, 2008, when the index rose 11.95 percent in the midst of the global financial crisis.

The country’s main bourse operator, the Korea Exchange (KRX), issued a buy-side sidecar around opening, suspending the selling of KOSPI futures for five minutes.

Trade volume was heavy at 1.6 billion shares worth 44.8 trillion won (US$30.5 billion), with gainers sharply beating decliners 898 to 21.

Individual investors drove the steep rally, scooping up a net 1.79 trillion won, while foreigners and institutions sold a net 144.6 billion won and 1.7 trillion won, respectively.

“The KOSPI experienced the sharpest decline in history and dropped near the 5,000-point line the previous day,” Roh Dong-gil, an analyst at Shinhan Securities, said. “Bargain hunters returned to the market to pull off a turnaround.”

Overnight on Wall Street, the Dow Jones Industrial Average rose 0.49 percent and the tech-heavy Nasdaq Composite climbed 1.29 percent on calmed oil price hikes.

In Seoul, market heavyweights led the rally.

Market bellwether Samsung Electronics surged 11.27 percent to 191,600 won, and chip giant SK hynix soared 10.84 percent to 941,000 won.

Top carmaker Hyundai Motor escalated 9.38 percent to 548,000 won, and its sister Kia jumped 6.19 percent to 166,400 won.

Defense shares were among the biggest winners as industry leader Hanwha Aerospace vaulted 4.38 percent to 1.38 million won and LIG Nex1 shot up 23.26 percent to 763,000 won.

Shinhan Financial Group rose 4.62 percent to 92,900 won, and internet giant Naver advanced 5.77 percent to 220,000 won.

Samsung Biologics, a leading pharmaceutical firm, mounted 8.64 percent to 1.65 million won, and entertainment giant CJ ENM increased 5.91 percent to 64,500 won.

The Korean won was quoted at 1,468.1 won against the U.S. dollar at 3:30 p.m., up 8.1 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 3.4 basis points to 3.189 percent, and the return on the benchmark five-year government bonds declined 3.5 basis points to 3.442 percent.

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WASHINGTON, March 4 (UPI) — The Supreme Court on Wednesday considered whether the brokers who connect shippers with trucking companies can be held liable for irresponsible drivers.

The case, Montgomery vs. Caribe Transport II LLC, stems from a 2017 incident in which Shawn Montgomery, the petitioner, suffered significant injuries after a tractor-trailer hit his parked truck on the side of an Illinois highway.

A key part of the case is the interpretation of part of the Federal Aviation Administration Authorization Act of 1994. It prevents state laws “related to a price, route or service” of trucking companies or brokers that connect them to shippers.

However, the statute also provides an exception, stating that it will “not restrict the safety regulatory authority of a state with respect to motor vehicles.”

The outcome could redefine liability standards for freight brokers and impact the broader transportation industry and interstate commerce landscape.

The driver of the tractor-trailer, Yosniel Varela-Mojena, had been involved in a crash months earlier, but was still employed by Caribe Transport II, an interstate trucking company. Freight broker C.H. Robinson recruited Caribe II to deliver a cross-country shipment. After the crash, Montgomery sued the broker for negligent hiring under Illinois state laws.

During the arguments, the two sides disagreed about whether the phrase “with respect to motor vehicles” includes brokers.

“We do believe that ‘with respect to motor vehicles’ is the crucial question here,” said Theodore Boutrous Jr., Caribe II’s counsel. He argued Congress did not intend for brokers to be included.

The attorney for the United States agreed that the two different sections of the law being discussed should, in context, be taken altogether to mean that brokers are not included in the realm of “motor vehicles.”

“Paragraph one uses the phrase ‘with respect to the transportation of property,’ [and] paragraph two [says] ‘with respect to motor vehicles,'” said Sopan Joshi, assistant to the U.S. solicitor general. “That seems like a conscious choice that Congress made to parallel the language, but change the noun to a much narrower noun.”

Associate Justice Brett Kavanaugh questioned Paul Clement, Montgomery’s counsel, on how brokers would address safety concerns if the court were to rule in favor of Montgomery and say that brokers are liable for consequences of negligent hiring.

For instance, Kavanaugh suggested drivers should be proficient in English to ensure safety. In April 2025, President Donald Trump signed an executive order to enforce English-language requirements for commercial motor vehicle drivers.

“If you’re hiring drivers who can’t read the signs, that seems like a safety issue,” Kavanaugh said.

Clement said brokers could work with larger trucking companies with deeper pockets and check that they have adequate programs in place to test drivers for drug use, check on prior accidents and address other potential concerns.

“One of the reasons, I think, that you do want [brokers] to have some duty of care in these circumstances is this is a margin business,” Clement said. “If they don’t have any sort of incentive to internalize any of the cost of not asking the question, they really have no good reason to ask the question. They want the cheapest carrier.”

Associate Justice Ketanji Brown Jackson asked Joshi to explain why he thought Congress did not think brokers should share responsibility for safety given the language in the 1994 law.

“The problem, I think, with the argument in the way that you’ve set it up is that you are assuming away any responsibility that a broker might have for safety,” Jackson said.

Joshi argued that Congress did not intend for brokers to have responsibility regarding safety and could have worded the law differently if it did.

“Congress has an entire chapter, several chapters, of the U.S. Code in Title 49 that deal with safety addressing carriers, safety of motor vehicles, driver qualifications, and they’re all addressed at carriers,” Joshi said. “Not a single one is addressed at brokers.”

Joshi acknowledged that the Federal Motor Carrier Safety Administration is “understaffed,” “overworked” and unable to review all of the federally registered carriers. However, he said Congress has provided ways of bringing consequences against carriers who violate federal requirements and regulations.

In his closing rebuttal, Clement told the court that 94% of registered carriers on the road do not have meaningful federal safety inspections — a number derived from 2021 Federal Motor Carrier Safety Administration data.

He said state tort law could provide a “backstop to the federal system.”

“This case doesn’t have to be that hard. The thing that triggers state tort liability is an 80,000-pound motor vehicle. That’s what devastatingly injured my client,” Clement said.

The court is expected to issue a ruling by summer.

The torta Chingona at Tacos Don Pillo is a beast of a sandwich, a tower of asada steak, jamon asado, tomato, onion, jalapeno, avocado and big slabs of salty, squeaky queso fresco. It’s enough to share, or satiate in a way that requires a nap shortly after. It is the star of the Tacos Don Pillo menu, an expansive list of tacos, quesadillas, burritos, salads, nachos and mulitas. Some days require the heft of the torta Chingona, others lean toward the tacos camarones. The trio of corn tortillas barely contain the plump, grilled shrimp, sweet and smoky grilled onions and slivers of avocado. Expect a perpetual line anywhere near an established meal time, but things move quickly.

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Lutnick’s relationship with the late financier and sex offender has come under scrutiny after files revealed closer ties than previously known.

US Secretary of Commerce Howard Lutnick has agreed to give testimony to lawmakers about his ties to Jeffrey Epstein, the head of a committee investigating the late sex offender has said.

Lutnick, who lived next door to Epstein in New York for more than a decade, “proactively agreed” to provide a transcribed interview to the House Committee on Oversight and Government Reform, panel chair James Comer said on Tuesday.

“I commend his demonstrated commitment to transparency and appreciate his willingness to engage with the Committee. I look forward to his testimony,” Comer, a Kentucky Republican, said on X.

Axios, which first reported the commerce secretary’s intention to testify, quoted Lutnick as saying he had done nothing wrong and he wished to “set the record straight”.

Lutnick’s relationship with Epstein, who died in 2019 while awaiting sex trafficking charges, has come under mounting scrutiny after he appeared to misrepresent the extent of his associations with the notorious financier.

In a podcast interview last year, Lutnick said he decided to “never be in the room” with Epstein again following an uncomfortable encounter at the sex offender’s Manhattan penthouse in 2005.

But files released by the Justice Department earlier this year showed that Lutnick met and communicated with Epstein for years after the reported 2005 encounter, and the commerce secretary later acknowledged that he visited the financier’s private island of Little Saint James in 2012.

Comer said on Tuesday that he had also sent letters to seven individuals seeking written testimony about their knowledge of Epstein’s crimes, including Microsoft cofounder Bill Gates, private equity investor Leon Black, and top Goldman Sachs lawyer Kathryn Ruemmler.

Gates, Black and Ruemmler have repeatedly denied wrongdoing in connection with Epstein, or having knowledge of his abuse of women and girls.

The committee’s requests for testimony come after former US President Bill Clinton and his wife, ex-Secretary of State Hillary Clinton, appeared before lawmakers last week to answer questions about their ties to Epstein.

Bill Clinton told the committee he did nothing wrong and “saw nothing that ever gave me pause” while interacting with Epstein.

Hillary Clinton told lawmakers she had no recollection of encountering Epstein and that she never “flew on his plane or visited his island home or offices”.

March 3 (UPI) — The price of Brent crude oil rose to $80 a barrel and the price of natural gas jumped 30% to $1.97 per therm on Tuesday after Iran effectively shut the key Strait of Hormuz shipping lane, with an official threatening its forces would “set fire to anyone who tries to pass.”

Prices continued their upward trajectory from Monday when markets reopened following the military strikes over the weekend on Iran by the United States and Israel and Tehran’s strikes on its oil and gas producing neighbors across the Gulf.

Concerns over supply disruptions are growing as the conflict widens across the region with Iranian strikes going beyond military bases used to launch attacks on Iran to target oil and gas production facilities, as well as Amazon data centers in the United Arab Emirates and Bahrain.

On Monday, Qatar Energy, one of the world’s largest exporters of liquefied natural gas, shut down production following “military attacks” on its Ras Laffan plant and Saudi Arabia’s state-run Aramco shuttered its giant Ras Tanura refinery near the port city of Dammam after it was set ablaze in a drone strike.

Analysts warned the oil price could surpass $100 a barrel if the disruption continued for very long — translating to a 25-cent-a-gallon rise in U.S. petrol prices.

The risk to maritime traffic was also pushing up the cost of moving oil from the Gulf to Europe and Asia and around the world with the leasing cost of a tanker to ship Middle East to China doubling to $400,000 a day on Monday.

The president of logistics technology platform Flexport, Sanne Manders, told the BBC that while Iran had not physically blockaded the strait, through which 20% of the world’s oil and gas transits, it was closed as far as global shipping was concerned.

Manders said it was partly that shipping lines were simply unwilling to expose their vessels, cargo and crews to potential jeopardy and partly insurance companies “not being willing to insure this risk anymore.”

He warned that expectation of higher fuel costs would feed through to movement of all goods by sea with carriers hiking rates “for any shipping in the world.”

That all fed into investor fears over the consequences for inflation and interest rates, sending global stock markets tumbling overnight, led by Japan’s Nikkei 225 Index, which ended Tuesday down more than 3%.

In mid-morning trade London’s FTSE 100 was down 2.8 %, Germany’s blue-chip DAX was trading 4% lower, down more than a thousand points, and the CAC 40 in Paris was off by 3.2%.

The pan-European Stoxx 600 Index continued its retreat, with across-the-board falls in all sectors pulling it 2.9% lower, while the blue-chip Euro Stoxx 50 was even lower, down 3.1%.

However, hotels, airlines and utilities took the biggest hits while energy firms and defense contractors performed better.

Ahead of the opening of U.S. markets, S&P 500 futures fell by 1.8%, Nasdaq 100 futures were down 2.3% and Dow Jones Industrial Average-linked futures moved lower by around 1.7%, or 821 points.

Defense and energy stocks rose on Monday led by Northrop Grumman, up 6%, and Palantir, up 5.8%, which together with a surge in NVIDIA’s share price, helped the overall market erase big losses early on to end the day in the black.

U.S. President Donald Trump was due to discuss the economic and cost-of-living impacts with Treasury Secretary Scott Bessent and Energy Secretary Chris Wright on Tuesday while Secretary of State Marco Rubio trailed administration plans to cope with energy price spikes.

“We knew that going in would be a factor. Starting tomorrow you will see us rolling out those phases to try to mitigate against that,” said Rubio.

The US-Israeli military campaign that began on Saturday has already killed Iran’s Supreme Leader Ali Khamenei and senior commanders, triggered retaliatory strikes across the region and raised the spectre of prolonged disruption to global energy flows.

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While diplomats scramble and the UN calls for restraint, certain defence contractors and energy majors have emerged as early market victors.

As the conflict enters its fourth day, demand for advanced weaponry, missile-defence systems and intelligence platforms is projected to surge.

Lockheed Martin’s stock, the world’s largest defence contractor by revenue, hit a new all-time high on Monday, closing at $676.70 after rising over 4%.

Its F-35 fighters, precision munitions and radar systems are central to the air campaign under way over Iran.

The rally extended across the defence sector.

Northrop Grumman shares jumped 6%, lifted by its stealth-bomber and missile-defence technologies.

RTX, formerly Raytheon, gained nearly 5% while L3Harris Technologies and General Dynamics also recorded solid increases.

Palantir Technologies, whose data-analytics tools support intelligence operations, rose almost 6%.

European companies followed the upward trend on a more modest scale. Germany’s Renk and Italy’s Leonardo posted gains as investors eyed possible increases in NATO procurement and export orders.

Analysts note that defence budgets, already earmarked for growth in 2026, now face even fewer hurdles in Washington and European capitals.

With President Trump stating that operations could last “four to five weeks” or “far longer”, and Iran continuing missile and drone barrages, markets are positioning for weeks of high-intensity military activity.

The gains reflect classic geopolitical risk pricing.

Other market outliers

These rises stand in sharp contrast to broader equity weakness, highlighting how narrowly the benefits are concentrated. Beyond the pure-play defence names, energy companies have been the other clear outperformers, riding the oil and gas wave.

Iranian retaliation has already included strikes to energy sites in Saudi Arabia and Qatar, threats to close the Strait of Hormuz, which could choke off roughly 20% of global oil supply and send energy prices soaring.

The international benchmarks for oil, Brent crude (BZ) and West Texas Intermediate (WTI), are trading at over $82.50 and $75.50 respectively, at the time of writing.

Alongside them, integrated oil majors moved swiftly higher.

ExxonMobil shares rose more than 4% recording a new all-time high, while Chevron, Occidental Petroleum and ConocoPhillips posted comparable gains.

In Europe, Shell and TotalEnergies advanced in line with the global pricing surge.

The QatarEnergy LNG production halt announced on Monday, following Iranian drone strikes on Ras Laffan and Mesaieed facilities, sent European benchmark TTF gas prices over 50% higher, reaching €62/MWh by Tuesday.

Markets reacted swiftly as the indefinite shutdown raised immediate fears of rerouted demand and renewed energy inflation risks in Europe.

LNG equities climbed notably since Monday’s open on the news.

Cheniere Energy, the largest LNG exporter in the US, Venture Global and Australia’s Woodside Energy, all saw intraday strength at the start of the week.

However, analysts caution that actual substitution will take time due to shipping and contract constraints, keeping price action geopolitically sensitive.

The European Commission announced it is closely tracking both price and supply developments and will convene an Energy Task Force with Member States, in liaison with the International Energy Agency, for a meeting sometime this week.

South Korean stocks plunged more than 7 percent Tuesday to close below the 5,800-point mark as investor sentiment was dampened by escalating geopolitical concerns triggered by the ongoing Middle East conflict. The Korean won lost sharply against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 452.22 points, or 7.24 percent, to close at 5,791.91, marking the lowest closing price since Feb. 20, when the index finished at 5,808.53.

It marked the largest-ever daily drop.

The country’s main bourse operator, the Korea Exchange (KRX), issued a sell-side sidecar for 5 minutes around noon, suspending the selling of KOSPI futures.

Trade volume was heavy at 1.2 billion shares worth 52.5 trillion won (US$35.8 billion). Losers sharply outnumbered winners 840 to 73.

Foreign and institutional investors led the daily sell-off, dumping a net 5.1 trillion won and 891.1 billion won, respectively. Retail investors, on the other hand, went bargain hunting and snapped up a net 5.8 trillion won.

Coordinated U.S. and Israeli air strikes on Iran over the weekend roiled global markets from the start of this week, but the Korean market closed on Monday in observation of the March 1 Independence Movement Day holiday.

“The main index experienced expanded volatility as the Middle East risk was realized after a long weekend,” Roh Dong-gil, an analyst at Shinhan Securities, said. “The stock market is expected to be affected by oil prices and interest rates as the situation develops.”

Most shares closed bearish.

Market bellwether Samsung Electronics tumbled 9.88 percent to 195,100 won, and its chipmaking rival SK hynix plummeted 11.5 percent to 939,000 won.

Top automaker Hyundai Motor dived 11.72 percent to 595,000 won, and leading battery maker LG Energy Solution sank 7.96 percent to 393,000 won.

Travel shares were among the biggest losers as flag air carrier Korean Air nosedived 10.32 percent to 25,200 won and major travel agency Hana Tour Service lost 6.65 percent to 44,900 won.

KB Financial Group, a leading banking group, fell 3.46 percent to 153,500 won, and Celltrion, a major pharmaceutical firm, dropped 5.66 percent to 225,000 won.

However, oil refinery and defense shares were bullish.

Leading refinery firm SK Innovation rose 2.51 percent to 130,900 won, and S-Oil, whose largest shareholder is Saudi Aramco, shot up 28.45 percent to 141,300 won.

Defense giant Hanwha Aerospace soared 19.83 percent to 1.43 million won, and LIG Nex1 surged 29.86 percent to 661,000 won.

The Korean won was quoted at 1,466.1 won against the U.S. dollar at 3:30 p.m., down 26.4 won from the previous session’s close. It marked the lowest since Feb. 6, when the won-dollar rate was 1,469.5 won.

Bond prices, which move inversely to yields, closed sharply lower. The yield on three-year Treasurys increased 13.9 basis points to 3.180 percent, and the return on the benchmark five-year government bonds declined 14.6 basis points to 3.424 percent.

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