Business and Economy

A Russian tanker has delivered enough fuel to meet Cuba’s energy needs for up to 10 days, following a three-month blockade.

A Russia-flagged tanker carrying 730,000 barrels of oil has docked in Cuba, marking the first time in three months that an oil tanker has reached the island nation.

The administration of United States President Donald Trump allowed the Anatoly Kolodkin to proceed despite an ongoing US energy blockade. The Aframax tanker entered the Bay of Matanzas – the country’s largest supertanker and fuel storage port – on Tuesday at daybreak.

The vessel, under US sanctions, entered Cuban territorial waters late on Sunday, not far from the US Navy base at Guantanamo Bay. The United States said it was allowing the tanker to deliver fuel for humanitarian reasons.

The Anatoly Kolodkin entered the Bay of Matanzas under clear skies and light winds at sunrise. Much of the nearby city – and the majority of Cuba – was without power when the tanker arrived at the port area.

Cuba has not received an oil tanker in three months, according to President Miguel Diaz-Canel, exacerbating an energy crisis that has led to seemingly endless blackouts across the country of 10 million people and brought hospitals, public transportation, and farm production to the brink of collapse.

Cubans, including Energy and Mines Minister Vicente de la O Levy, cheered the ship’s arrival. A shortage of petroleum has exacerbated a deep economic crisis, leaving the population mired in long blackouts and facing severe shortages of food and medicine.

“Our gratitude to the Government and People of Russia for all the support we are receiving. A valuable shipment that arrives amidst the complex energy situation we are facing,” de la O Levy wrote on X.

The fuel, if delivered, would give Cuba’s communist-run government breathing room amid growing pressure from the Trump administration, which has promised change in Cuba.

It will take days before the crude on board the Anatoly Kolodkin can be processed domestically and turned into motor fuel and refined products, such as diesel and fuel oil for power generation.

The ship is carrying Russian Urals, a medium sour crude, which is a good fit for Cuba’s ageing refineries.

Cuba produces barely 40 percent of its required fuel and relies on imports to sustain its energy grid. Experts say the anticipated shipment could produce about 180,000 barrels of diesel, enough to feed Cuba’s daily demand for nine or 10 days.

Cuba used to receive most of its oil from Venezuela, but those shipments have been halted ever since the US attacked the South American country and abducted its leader, Nicolas Maduro, in early January.

The disruption in the Strait of Hormuz has cut access to one-fifth of the world’s oil and gas supply, leaving many countries scrambling for alternatives.

So what can they rely on to make up for the shortfall in a quick time?

Many Asian countries are turning to coal, reopening shuttered plants and expanding production.

Policymakers say immediate energy needs supplant environmental concerns.

Others are hoping to turn to renewables. Solar power is now the cheapest form of electricity in many parts of the world. But renewables, especially wind, have faced hostility from the Trump administration.

US Department of Defense demands retraction of report alleging broker sought multimillion-dollar investment for Hegseth.

The United States Department of Defense has demanded the retraction of a newspaper report alleging that a broker for defence chief Pete Hegseth attempted to make a large investment in weapons companies in the run-up to the war on Iran.

Pentagon spokesman Sean Parnell demanded the “immediate” retraction on Monday after The Financial Times reported that a wealth manager for the defence secretary contacted BlackRock about making a multimillion-dollar investment in a defence-related fund in the weeks leading up to the war.

Hegseth’s broker at Morgan Stanley ultimately did not go ahead with the investment in the exchange-traded fund, whose holdings include Lockheed Martin and Northrop Grumman, because it was not yet available for purchase at the time, The Financial Times reported, citing three unnamed sources.

“This allegation is entirely false and fabricated. Neither Secretary Hegseth nor any of his representatives approached BlackRock about any such investment,” Parnell said in a post on social media.

“This is yet another baseless, dishonest smear designed to mislead the public.”

Hegseth and his department “remain unwavering in their commitment to the highest standards of ethics and strict adherence to all applicable laws and regulations,” Parnell said.

Al Jazeera could not independently confirm the Financial Times report.

The Defense Department did not immediately respond to a request for comment sent outside of usual business hours.

The Financial Times and Morgan Stanley also did not immediately respond to inquiries.

BlackRock declined to comment.

The report comes amid scrutiny of well-timed trades in financial and prediction markets that have fuelled speculation that figures with insider knowledge may be profiting off of US President Donald Trump’s war plans.

While The Financial Times reported that the attempted investment by Hesgeth’s broker did not go ahead, the defence chief would not have made money on such a purchase in the month since the war began.

While the iShares Defense Industrials Active ETF has risen more than 25 percent over the past year, it has fallen nearly 13 percent since the US and Israel launched strikes on Iran on February 28.

DEVELOPING STORYDEVELOPING STORY,

Crude prices continue to climb as world faces its biggest energy crisis in decades.

Oil prices have surged to their highest level in nearly two weeks amid escalation on multiple fronts of the US-Israel war on Iran.

Brent crude, the global benchmark, rose more than 3 percent on Monday morning to top $116 a barrel.

The latest climb took the global benchmark to its highest point since March 19, when it briefly touched $119 a barrel.

The surge came after Iran said it was prepared for a US ground invasion, with the speaker of the country’s parliament warning that Tehran was waiting for the arrival of US troops to “set them on fire” and “punish” their regional allies.

Tehran’s warning came as the conflict deepened over the weekend, with the Iranian-backed Houthis launching missiles at Israel for the first time in the war, and Israel expanding its invasion of southern Lebanon.

Iran’s effective closure of the Strait of Hormuz in retaliation for the US-Israel war has disrupted about one-fifth of global oil and liquified natural gas (LNG) supplies, plunging the world into its biggest energy crisis in decades.

Oil prices have risen nearly 60 percent since the start of the war, driving up fuel prices worldwide and forcing numerous countries to adopt emergency measures to conserve energy.

Analysts have warned that oil prices are likely to keep rising unless maritime traffic returns to normal levels in the strait.

Greg Newman, the CEO the Onyx Capital Group, which began as an oil derivatives trading house, said that energy markets were only beginning to feel the fallout of the turmoil.

“Physical oil moves around the world in loading cycles , and Europe has taken around three weeks to really start feeling the effects of the oil shortage,” Newman told Al Jazeera.

“Brent is starting to reflect the reality, and we think it’s a steady rise from here towards $120 and beyond.”

Newman said the scale of the disruption had yet to be fully appreciated.

No one in the market has ever seen the outages we are now suffering from – physical premiums are the highest ever. There is still a sense that the macro world is not taking this seriously enough, but it is worse than anything that has come before it,” he said.

“The reality will come out in the economic numbers over the coming months.”

More to follow…

United States Secretary of State Marco Rubio has offered wide-ranging remarks upon his departure from the latest Group of Seven (G7) ministers’ meeting in France, denouncing Iran’s continued chokehold on the Strait of Hormuz as well as settler violence in the occupied West Bank.

Standing on an airport tarmac on Friday, Rubio fielded questions from journalists about reports that Iran plans to implement a tolling system in the strait, a vital waterway for the world’s oil supply.

Rubio used the topic to double down on pressure for countries to participate in securing the Strait of Hormuz, a demand US President Donald Trump has repeatedly made.

“One of the immediate challenges we’re going to face is in Iran, when they decide that they want to set up a tolling system in the Strait of Hormuz,” Rubio said.

“Not only is this illegal, it’s unacceptable. It’s dangerous for the world, and it’s important that the world have a plan to confront it. The United States is prepared to be a part of that plan. We don’t have to lead that plan, but we are happy to be a part of it.”

He called on the G7 members — among them, Japan, Canada, France, the United Kingdom, Italy, Germany and the European Union — as well as countries in Asia to “contribute greatly to that effort”.

Rubio calls toll plan ‘unacceptable’

The Strait of Hormuz is a key artery for the global transport of oil and natural gas, and prior to the start of the US and Israel’s war against Iran on February 28, an average of 20 million barrels of oil per day passed through the waterway.

That amounted to roughly 20 percent of the world’s liquid petroleum supply.

But since the outbreak of war, Iran has pledged to close the Strait of Hormuz, which borders its shores. The threat of attacks has ground most of the local tanker traffic to a standstill, though a few vessels, some linked to Iran or China, have been allowed to pass through.

Media reports suggest that Iran is setting up a “tollbooth system” that would require passing ships to put in a request through Iran’s armed forces, the Islamic Revolutionary Guard Corps (IRGC). There would also be a fee to secure passage.

“ They want to make it permanent. That’s unacceptable. The whole world should be outraged by it,” Rubio said on Friday.

He added that he conveyed a warning about the polling scheme to his colleagues at the G7.

“All we’ve said is, ‘You guys need to do something about it. We’ll help you, but you guys are going to need to be ready to do something about it,’” Rubio said.

“Because when this conflict and when this operation ends, if the Iranians decide, ‘Well, now we control the Strait of Hormuz and you can only go through here if you pay us and if we allow you to, that’s not only is it illegal under international law and maritime law. It’s unacceptable, and that can’t be allowed to exist.”

The Trump administration, however, has struggled to rally allies and world powers to join the US in its offensive against Iran.

Legal experts have criticised the initial strikes against Iran as an unprovoked act of aggression, though the Trump administration has cited a range of rationales for launching the attack, including the prospect that Iran may develop a nuclear weapon.

Many of the US allies in Europe have maintained that they would limit their involvement to defensive actions. Trump, meanwhile, has accused members of the NATO alliance of being “cowards”, adding in a social media post, “We will REMEMBER.”

In a statement following the G7 meeting, member countries reiterated their stance that there should be an “immediate cessation of attacks against civilians and civilian infrastructure”.

They also underscored the “absolute necessity to permanently restore safe and toll-free freedom of navigation in the Strait of Hormuz”. But the statement fell short of pledging any resources or aid to the US and Israeli war effort.

Achieving goals ‘without any ground troops’?

It is unclear when the war might end. On Saturday, it reaches its one-month anniversary, having stretched for four weeks.

Rubio on Friday echoed Trump’s assessment that the war was going as planned and that the US was achieving its objectives, including to destroy Iran’s navy, missile stockpiles and uranium enrichment programme.

“ We are ahead of schedule on most of them, and we can achieve them without any ground troops, without any,” he said, addressing an oft-raised concern about the prospect of US troops being deployed to Iran.

Rubio also briefly addressed the increasing levels of Israeli settler violence against Palestinians in the occupied West Bank.

Footage has shown settlers this month torching Palestinian homes and vehicles, as well as assaulting residents.

On March 19, the United Nations estimated that more than 1,000 Palestinians have been killed in the West Bank since Israel began its genocidal war in Gaza in October 2023. The international body underscored that a quarter of the victims were youths.

“ Well, we’re concerned about that, and we’ve expressed it. And I think there’s concern in the Israeli government about it, as well,” Rubio responded, adding that it was a “topic we follow very closely”.

He suggested that the Israeli government may take action to stop the violence, though critics argue that Israel has largely turned a blind eye to settler violence.

“Maybe they’re settlers, maybe they’re just street thugs, but they’ve attacked security forces, Israelis, as well. So, I think you’ll see the government going to do something about it,” Rubio said.

Upon taking office for a second term in January 2025, President Trump also moved to cancel sanctions against Israeli settlers accused of grave abuses in the West Bank.

It diversified energy supplies, built LNG terminals and reduced its dependence on Russia.

Europe thought it had learned its lesson after the war in Ukraine.
But today it’s facing another energy shock.

And this time it may be even worse, as the war in Iran disrupts supply through the Strait of Hormuz.

It’s happening when EU gas reserves are unusually low.

That means Europe will be competing with Asia to fill its storage tanks, which might force the price of LNG even higher.

Electricity bills are climbing.

Industry is under pressure.

Governments are stepping in to cushion the blow.

Kano, Nigeria – On a bustling day in northern Nigeria, Marian Shammah made her way to the Sabon Gari Market, one of the largest electronics hubs in Kano state.

The 34-year-old cleaner was in need of a refrigerator, but with rising costs and a meagre income, she saw the second-hand appliances sold at the market as a lifeline.

After locating the one she wanted, she paid the vendor 50,000 naira ($36) and took it home. But just a month later, the freezer collapsed.

“Only the top half of the refrigerator was working, and the freezer wasn’t working,” said Shammah.

Her food spoiled, her savings disappeared, and she was soon back in the market searching for another appliance.

Although Shammah could have bought a new local appliance for just over 30,000 naira ($30) more, she – like millions of Nigerians – believes second-hand products from America and Europe “last longer” than new products sold in Nigeria.

Observers say this trend is part of a larger crisis. Nigeria has become a major destination for the developed world’s discarded electronics – items often near the end of life, sometimes completely dead, and frequently toxic because they contain hazardous materials. When they break down, they add to landfills, worsening an already dire e-waste crisis on the African continent.

Around 60,000 tonnes of used electronics enter Nigeria through key ports each year, with at least 15,700 tonnes already damaged upon arrival, according to the United Nations.

The trade in used electronic goods is powered largely by foreign exporters. A UN tracking study between 2015 and 2016 showed that more than 85 percent of used electronics imported into Nigeria originated from Germany, the United Kingdom, Belgium, the Netherlands, Spain, China, the United States, and the Republic of Ireland.

Many of these imports violate international restrictions, like the Basel Convention, an environmental treaty regulating the transboundary movement and disposal of hazardous electronic waste to developing countries with weaker environmental laws.

Across West Africa, the Basel Convention’s “E-Waste Africa Programme”, a project focused on strengthening e-waste management systems across the continent, estimates that Benin, Ivory Coast, Ghana, Liberia, and Nigeria collectively generate between 650,000 and 1,000,000 tonnes of e-waste annually – much of it the result of short-lifespan second-hand imports.

Health risks

The United Nations describes e-waste as any discarded device that uses a battery or plug and contains hazardous substances – like mercury – that can endanger both human health and the environment. Several of the toxic components commonly found in e-waste are included on the list of 10 chemicals of major public health concern maintained by the World Health Organization (WHO).

According to the WHO, used electrical and electronic equipment (EEE) presents a growing public health and environmental threat across Africa, with Nigeria at the centre of the trade.

“Much of the equipment shipped as used electronics is close to becoming waste,” said Rita Idehai, founder of Ecobarter, a Lagos-based environmental NGO, warning that devices imported and sold as affordable second-hand goods often fail shortly after arrival and quickly enter the waste stream.

The consequences are far-reaching. Many imported fridges and air conditioners, for instance, still contain CFC-based and HCFC-based refrigerants such as R-12 and R-22 – chemicals banned in Europe and the US for causing ozone depletion or being linked to cancer, miscarriages, neurological disorders, and long-term soil contamination. These gases live for 12 to 100 years, meaning leaking equipment adds to a multi-generational environmental burden.

After these imported items stop working or fall apart, informal recyclers then dismantle the electronics with their bare hands, Al Jazeera observed. In Kano, the recyclers inhale poisonous fumes and manage the heavy metals without protection. Their work earns them a meagre 3,500–14,000 naira ($2.50-$10) per week, they said, and the after-effects linger – including persistent coughing, chest pain, headaches, eye irritation, and breathing difficulties after long hours of burning cables and dismantling electronic devices.

The health crisis extends into Kano’s communities.

Among casual recyclers and residents who live close to e-waste dumps, many report symptoms that range from chronic headaches and skin irritation to breathing issues, miscarriages and neurological concerns, according to health surveys done by the International Journal of Environmental Research and Public Health. These ailments are consistent with longtime toxic exposure, the researchers said.

Recent field assessments conducted by Nigeria’s Federal University Dutse also stressed that in and around Kano state, where the Sabon Gari Market is located, there are rising levels of heavy metals in soil and drainage channels.

Dr Ushakuma Michael Anenga, a gynaecologist at the Benue State Teaching Hospital and second vice president of the Nigerian Medical Association, warned that toxic exposure from informal e-waste recycling poses grave health risks to communities in Kano.

“Exposure to heavy metals and refrigerant gases in e-waste causes extreme brief and long-term health issues, generally affecting the breathing and renal organs,” he told Al Jazeera.

“Common casual practices like exposed burning and dismantling result in direct, high-level exposure for workers and nearby residents. Children and pregnant girls are particularly inclined due to the fact that those toxicants can disrupt development or even skip from mother to unborn baby, [while] recyclers who work without defensive equipment face repeated, frequently irreversible damage.”

Profits over protection

In Sabon Gari Market, second-hand electronics are advertised as less costly lifelines for households and poor business owners burdened by inflation.

Many customers say foreign-used home equipment appears sturdier and seems like better value for money than new imports from the developing world. Meanwhile, others are just looking for cheap options in difficult economic times.

“I usually go for second-hand or foreign-used electronics because brand-new ones are too expensive for me,” Umar Hussaini, who sells used electronics at the market, told Al Jazeera.

“Sometimes you can get them for half the price of new ones, and they look almost the same, so it feels like a good deal at the time.”

But the last refrigerator he bought stopped cooling after just three months. With no warranty or guarantee, the seller refused responsibility.

“For weeks, we couldn’t store food properly at home, and we ended up buying food daily, which was more expensive,” he said. “However, I have to buy another one again.”

For small business owners like Salisu Saidu, the losses can be even more devastating. He bought a used freezer for his shop, believing it had been serviced. Within weeks, it failed.

“I lost a lot of frozen food, which meant I lost money and customers,” he told Al Jazeera.

Around his neighbourhood, broken electronics are often dumped out in the street, sometimes emitting smoke or sparks.

“There’s also a lot of electronic waste piling up around,” he said, calling for tighter import controls, proper certification, and mandatory warranties to protect buyers from being sold what he described as “damaged goods disguised as fairly used”.

Bought as bargains, sold as burdens

At Sabon Gari Market, another vendor, Umar Abdullahi, is surrounded by imported refrigerators, air conditioners and washing machines stacked tightly together.

The products in his shop are advertised as “London use” or “Direct Belgium”, while he negotiates the sale of a double-door fridge for 120,000 naira ($87).

Abdullahi’s store is where Shammah returned after the refrigerator she bought failed. But he admits that much of what he sells to customers arrives unchecked.

“We buy them untested from suppliers in Europe, and we also sell them untested so we can make our profit,” he told Al Jazeera.

This despite the fact that international rules under the Basel Convention, as well as Nigerian environmental regulations, prohibit the shipment of material considered e-waste – with penalties including fines and jail terms.

Nwamaka Ejiofor, a spokesperson for Nigeria’s National Environmental Standards and Regulations Enforcement Agency (NESREA), said the country does not permit the import of e-waste. However, the entry of used electronics is allowed under regulated conditions.

“The importation of used electrical and electronic equipment is regulated and may be allowed only where such equipment meets prescribed conditions, including functionality and compliance requirements,” she told Al Jazeera.

“Nigeria applies a combination of regulatory, administrative and enforcement measures to ensure that imported used electronics comply with national law and the country’s international obligations,” she added, listing out measures including environmental regulations, cargo inspection and verifying that imported equipment is “functional”.

However, despite this, some traders find loopholes in the system, including declaring cargo they plan to sell as personal belongings or second-hand household goods to avoid scrutiny.

Although NESREA says enforcement has improved, critics say the steady flow of mediocre goods continues largely unchecked. Even dealers at Sabon Gari Market acknowledge that most appliances are sold “as is”, without certification or guarantees.

‘Loopholes’

Behind the second-hand electronics trade is a network of collectors and exporters who source discarded appliances across Europe.

Baban Ladan Issa, who ships used electronics from Ireland to Nigeria, said items are gathered from weekend markets, private homes that are replacing old gadgets, and contractors clearing out equipment from offices, hotels and hospitals.

“Some suppliers mix working and damaged goods together,” he told Al Jazeera, noting that while he tries to avoid faulty items, not all buyers do the same.

Once assembled, shipments worth millions of naira are sent to Lagos through ships then down to sellers in the market in Kano state, sometimes packed in containers or hidden inside vehicles to reduce inspection risks.

Shipping records seen by Al Jazeera showed consignments labelled as “personal effects”, a classification that can limit detailed checks at ports.

Chinwe Okafor, an environmental policy analyst based in Abuja, said the problem is systemic.

“Exporting nations regularly take advantage of loopholes by means of labelling nonfunctional e-waste as ‘second-hand goods’ or ‘for repair,’” she told Al Jazeera. “In some instances, research estimates that over 75 percent of what arrives in developing countries is truly junk.”

“This permits wealthy countries to keep away from highly-priced recycling at home while pushing unsafe materials into nations with weaker safeguards.”

Ibrahim Adamu, a programme officer with the NGO Ecobarter, added that mislabelling, poor inspection technology and corruption at ports make enforcement difficult.

“The highest profits are captured by exporters and brokers who arbitrage the gap between disposal costs in Europe or Asia and the strong demand for ‘tokunbo’ goods in Nigeria,” he said, using the local name for used imported electronics.

To forestall this, he said Nigeria “must reinforce border inspections” and implement a policy whereby producers and manufacturers bear financial responsibility. At the same time, “the international network has to adopt binding bans that [hold] manufacturers and exporters responsible”, Adamu said.

Little oversight, mounting risks

Although Nigeria has regulations governing the import of electrical and electronic equipment, enforcement gaps keep exposing markets like Kano’s Sabon Gari to ageing and near-end-of-life appliances, locals say.

Ibrahim Bello, a used electronics importer with a decade in the business, said many shipments that arrive from Europe are in less-than-ideal condition.

“Around 20 to 30 percent of the items we receive have issues when they arrive,” he told Al Jazeera. “Some are already damaged, while others stop working after a short time because they are old.

“That’s just part of the business.”

Retailer Chinedu Peter gave similar estimates. “From what I’ve experienced, maybe 40 percent of the electronics have some fault as they come,” he said, adding that environmental and protection checks don’t happen as they are meant to.

“Such a lot of items enter without special checks.”

Both men feel that clearer rules and certified testing systems will improve trust. But until then, thousands of ageing, unsuitable products will continue to flood Nigeria.

Shammah, back at Sabon Gari Market just weeks after her refrigerator broke, was once again searching through rows of stacked appliances, hoping her next purchase might last longer than the last.

“I don’t really trust these fairly used appliances again, but I still have to buy something because we need it at home,” she told Al Jazeera.

“This time I’m thinking … I can buy a new one from a proper shop, even if it takes longer, because I don’t want to lose my money again.”

Belarusian President Alexander Lukashenko gifted North Korean leader Kim Jong Un a gun after the two countries signed a friendship treaty during the Belarusian’s first official state visit.

A week into the United States-Israeli war on Iran, and Iran’s attacks on its Gulf neighbours, Jaya Khuntia spoke – as he often did – to his Doha-based son Kuna on the phone.

It was March 6, about 10pm, and Khuntia and the family were worried. “He told me, ‘I am safe here, don’t worry,’” the father recalled from the conversation with Kuna.

It was the last time they spoke.

The next day, the family in Naikanipalli village of India’s eastern Odisha state received a phone call from Kuna’s roommate telling them that the son had suffered a heart attack after hearing the sound of missiles and debris from interceptions falling near their residence. He collapsed and was later declared dead. Kuna’s body reached home days later.

Al Jazeera cannot independently confirm the cause of Kuna’s death, but the family of the 25-year-old, who worked as a pipe fitter in Qatar’s capital, is among millions across South Asia directly affected by the war in the Middle East.

Of the eight people killed in the United Arab Emirates in Iranian attacks, two were Emirati military personnel, a third a Palestinian civilian, and the remaining five were from South Asia: Three from Pakistan, and one each from Bangladesh and Nepal. All three people killed in Oman were from India. An Indian national and a Bangladeshi national are the only deaths in Saudi Arabia.

Migrant workers from South Asia total nearly 21 million people in the Gulf nations, a third of the total population of the region. At stake, for their families back home, is the safety of their loved ones and the future of their dreams.

The Khuntia family had taken on a 300,000-rupee ($3200) debt in 2025 for the marriages of their two daughters. Kuna’s income in Doha – where he had moved only in late 2025 – of 35,000 rupees ($372) was helping them collect what they needed to pay back the loan. Kuna had been sending back about 15,000 rupees ($164) every month.

“We thought our suffering was finally ending,” Jaya said, his voice trembling. “My only son would say, ‘Baba, don’t worry, I am here.’ He was our only hope… our everything.”

That hope is now extinguished. “That one call finished us,” Jaya cried. “He promised to return after clearing our debts … but he came back in a coffin. We have nothing left now. Losing our only son is the biggest debt we have to live with.”

‘I thought we would be next’

In all, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – the six Arab countries in the Gulf – host 35 million foreign nationals, who form a majority of their total population, 62 million.

They include 9 million people from India, 5 million each from Pakistan and Bangladesh, 1.2 million from Nepal, and 650,000 from Sri Lanka. Most of them are engaged in blue-collar work, building or supporting the industries and services that are at the heart of the Gulf’s success and prosperity.

But since the US and Israel launched their war on Iran, these migrant workers have often been among the most vulnerable. That vulnerability extends beyond deaths and injuries to the very nature of their work: Oil refineries, construction areas, airports and docks, where many work, have been targeted in Iranian attacks.

The suspension of work at many of these facilities, coupled with fears of a major economic downturn in the region, has also left many workers and their families worried about the future of their jobs.

Hamza*, a Pakistani migrant labourer working at an oil storage facility in the UAE, recalled a recent attack that he witnessed. “A drone struck a storage unit right in front of us. We were completely shaken. Most of us there are from India, Pakistan and Bangladesh.

“We couldn’t sleep for nights after that. The drone was so close that it could have killed us, too,” Hamza added. “For a moment, I thought we would be next.”

Despite these dangers, he said, leaving is not an option.

“We want to go back, but we can’t,” Hamza said. “Our families depend on us. It’s dangerous here, but if we stop working, they will have nothing to eat. We have no choice.”

Experts say Hamza’s sentiment is common across South Asian blue-collar workers in the Gulf, because of poverty and limited employment opportunities back home.

Imran Khan, a faculty member at the New Delhi Institute of Management working on migration economics, said migrant labourers from South Asia are often driven by desperation to take up jobs in the Middle East. He said Western countries have, in recent years, dramatically raised entry barriers for less-educated blue-collar foreign workers.

“These workers are the worst affected during crises – whether war or natural disasters,” he says. “I have been speaking to several migrant labourers, particularly Indians in the Middle East, and many are living in distress since the conflict began.”

But, like Hamza, most cannot afford to leave, Khan said.

“They cannot simply quit. Their income would stop immediately, and there are very limited opportunities back home,” he explained. “They have families to support, and without these jobs, survival becomes difficult.”

Families – and societies – that depend on remittances

Middle Eastern countries remain a key source of remittances for South Asian nations such as India, Pakistan, Bangladesh, Sri Lanka and Nepal. The remittances these five countries receive from the region, $103bn, are comparable to Oman’s total gross domestic product (GDP).

Just the remittances that India receives from the Gulf, $50bn, are more than Bahrain’s entire GDP. Pakistan receives $38.3bn in remittances, Bangladesh $13.5bn, Sri Lanka $8bn, and Nepal $5bn.

With the recent escalation of conflict in the Middle East, experts warn these flows could be significantly affected, especially if Gulf economies contract and layoffs follow.

Faisal Abbas, an expert in international economics and director at the Centre of Excellence on Population and Wellbeing Studies, a Pakistan-based research institute, said remittances from the Middle East form a crucial economic backbone for South Asian nations, not just families.

“Remittances are a critical pillar for Pakistan and other South Asian economies, and a large share comes from Middle Eastern countries,” he explained. “If the situation worsens, it will not be a positive development for the region.”

Pakistan’s remittances from the Gulf constitute nearly 10 percent of its GDP, about $400bn.

Abbas added that the effect may extend beyond remittance flows. “Migration patterns could also be disrupted. Many workers may return home, while those planning to migrate might reconsider,” he said. “This could further increase unemployment in a region already facing job shortages.”

Unlike Hamza, a number of South Asian workers are planning to return home.

Noor*, a migrant worker from Bangladesh employed at an oil facility in Saudi Arabia, said he no longer feels safe and plans to return home once his contract ends.

“I will never come back here again,” he said. “It’s too dangerous. We can’t even sleep at night. The fear never leaves us.”

Noor said drone attacks had occurred close to his workplace. “We saw it happen in front of us,” he said. “That fear stays with you… It doesn’t go away.”

His family, too, is deeply affected. “My children cry every time they call me. They are scared for my life,” he added.

He said he knows that returning to Bangladesh would mean more economic hardship for his family. But Noor said he had made up his mind.

“I would rather go back and struggle to survive with my family than live here in constant fear,” he said. “At least there, I will be with them.”

*Some names have been changed at the request of workers who fear retribution from contractors for speaking to the media.

Brent crude tops $104 a barrel as hopes fade for deescalation in US-Israel war on Iran.

Oil prices have climbed higher amid fading hopes of deescalation in the Iran war following Tehran’s denial that talks with the United States are under way.

Futures for Brent crude, the international benchmark, rose nearly 2 percent on Thursday to top $104 per barrel after Tehran dismissed reports of direct negotiations with US President Donald Trump’s administration.

The rise comes after oil prices eased on Wednesday following reports that Trump had shared a 15-point plan for ending the war with Iran.

Asian stock markets opened lower on Thursday, with Japan’s Nikkei 225, South Korea’s KOSPI and Hong Kong’s Hang Seng Index all seeing losses.

Iranian Foreign Minister Abbas Araghchi said in an interview with state media aired on Wednesday that Tehran was not engaged in direct talks with Washington and has “no intention of negotiating for now”.

White House Press Secretary Karoline Leavitt warned on Wednesday that Iran would be “hit harder” than ever before if Tehran did not accept military defeat.

Iran’s effective closure of the Strait of Hormuz, a conduit for one-fifth of global oil supplies, and its attacks on energy facilities across the Middle East have prompted a surge in energy prices worldwide.

Oil prices are up more than 40 percent compared with before the US and Israel launched strikes on Iran on February 28, prompting numerous countries to implement fuel rationing and other energy conservation measures.

Market-watchers say prices are likely to rise further until shipping is free to traverse the strait, despite efforts by countries to bolster supply by tapping emergency stockpiles in coordination with the International Energy Agency.

While Tehran has repeatedly claimed that the strait is open to ships that are not aligned with its enemies, daily transits have all but collapsed since the start of the conflict.

Four vessels were tracked transiting the waterway via their automatic identification systems on Tuesday, down from an average of 120 daily transits before the conflict, according to maritime intelligence firm Windward.

A California jury found ⁠Alphabet’s Google and Meta liable for $3m in damages in a landmark social media addiction lawsuit that accused the companies of being legally responsible for the addictive design of their platforms.

The decision was handed down by a Los Angeles-based jury on Wednesday after more than 40 hours of deliberation across nine days, and more than a month after jurors heard opening statements in the trial.

Among those who testified in the case were Meta CEO Mark Zuckerberg and Instagram head Adam Mosseri, although YouTube chief executive Neal Mohan was not called to testify.

The plaintiff in the case, referred to as KGM or Kaley, was awarded $3m in damages. The 20-year-old said she became addicted to social media at a young age, which exacerbated her mental health issues. She began using YouTube at age six and Meta-owned Instagram at age nine.

Kaley’s legal team alleged that the social media giants used designed features intended to hook young users, including notifications and autoplay features.

“Today’s verdict is a historic moment — for Kaley and for the thousands of children and families who have been waiting for this day. She showed extraordinary courage in bringing this case and telling her story in open court. A jury of Kaley’s peers heard the evidence, heard what Meta and YouTube knew and when they knew it, and held them accountable for their conduct. Today’s verdict belongs to Kaley,” lawyers for the plaintiff said in a statement shared with Al Jazeera.

Jurors were instructed not to consider the content of the posts and videos Kaley saw on the platforms. That is because tech companies are shielded from legal responsibility for user-posted content under Section 230 of the 1996 Communications Decency Act.

Meta consistently argued that Kaley had struggled with her mental health separate from her social media use, often pointing to her turbulent home life. Meta also said, “not one of her therapists identified social media as the cause” of her mental health issues in a statement following closing arguments. But the plaintiffs did not have to prove that social media caused Kaley’s struggles — only that it was a “substantial factor” in causing her harm.

YouTube focused less on Kaley’s medical records and mental health history and more on her use of the platform itself. The company argued that YouTube is not a form of social media, but rather a video platform, akin to television, and pointed to her declining use as she got older.

According to company data, she spent about one minute per day on average watching YouTube Shorts since its inception. YouTube Shorts, which launched in 2020, is the platform’s section for short-form, vertical videos that include the “infinite scroll” feature that the plaintiffs argued was addictive.

“We disagree with the verdict and plan to appeal. This case misunderstands YouTube, which is a responsibly built streaming platform, not a social media site,” Jose Castaneda, a spokesperson for Google, told Al Jazeera.

Meta did not respond to Al Jazeera’s request for comment.

Snap and TikTok were previously named in the suit but settled with the plaintiff for undisclosed terms before the trial began.

Shifting momentum

The verdict is the latest in a wave of lawsuits targeting social media companies. There is a looming federal social media addiction case slated to begin in June in Oakland, California.

On Tuesday in New Mexico, a jury found that Meta violated state law by misleading users about the safety of Facebook, Instagram, and WhatsApp, and by enabling child sexual exploitation on those platforms.

This case has been closely watched by legal experts, who say the verdict will shape future litigation.

“The fact the jury found Meta and Google liable represents that these cases have real exposure to the social media giants, and are going to frame how future litigation will proceed. Although this case will certainly be appealed, I would not be surprised if Meta and Google are already making changes within their platform to reflect the real exposure, and hopefully, the states will start to enact laws regulating social media in a manner congruent with the ruling,” entertainment lawyer Tre Lovell told Al Jazeera.

Professor Eric Goldman, associate dean for research at the Santa Clara University School of Law, echoed Lovell’s assessment.

“The Los Angeles jury verdict is the first of three bellwether trials in Los Angeles, with more bellwether trials to follow in summer, in the federal case. As such, today’s verdict is just one datapoint about liability and damages. The other trials could reach divergent outcomes, so this jury verdict isn’t the final word on any matter.”

Despite the ruling, Meta’s stock has not taken a hit, as it came the same day CEO Mark Zuckerberg was appointed to a new White House advisory council. The stock is up 0.7 percent. Alphabet’s stock, however, is trending downward in midday trading on the heels of the verdict, down 1 percent.

In a sharp escalation in the Middle East conflict, energy production itself is now in the firing line.

Iran targeted facilities across the Gulf – including the world’s largest liquefied natural gas hub in Qatar.

It was retaliation for an Israeli strike on an Iranian gasfield hours earlier.

Energy prices are soaring, and countries from Asia to Europe are scrambling for alternative supplies.

But, for Asia – the world’s largest LNG buyer – this is a severe energy shock.

The region depends on Gulf supplies to keep its lights on, its factories running, and its people fed.

As the United States-Israeli war with Iran sends tremors through the global economy, the poorest members of the Global South are the most exposed to the fallout.

In Asia, Africa and the Middle East, developing economies are bearing the brunt of surging energy costs prompted by the closure of the Strait of Hormuz and attacks on oil and gas facilities across the Gulf.

From Pakistan to Bangladesh and Sri Lanka, through to Jordan, Egypt and Ethiopia, policymakers are facing the double whammy of being both heavily dependent on imported energy and having limited financial firepower to absorb the shock of spiking prices.

In Pakistan, which imports about 80 percent of its energy from the Gulf and has lurched between economic crises for years, authorities have scrambled to roll out measures to conserve fuel.

Facing the depletion of the country’s petrol and diesel reserves within weeks, officials have closed schools, introduced a four-day working week for government offices, ordered half of the country’s public sector employees to work from home, and slashed fuel allowances for official business.

Pakistani Prime Minister Shehbaz Sharif said last week that he had decided against a proposed hike in petrol and diesel prices before the Eid Al-Fitr celebration, saying the government would “bear the burden” of rising costs.

Sharif’s announcement came after the government had earlier this month approved a 55 rupee ($0.20) rise in the price of a litre (0.26 gallons) of petrol or diesel.

While government subsidies have helped cushion the blow for the public, there are fears that petroleum prices will surge and bring economic activity to a halt if the war drags on, said S Akbar Zaidi, the executive director of the Institute of Business Administration in Karachi.

“The overall shock is quite severe, although it has not been fully passed on to consumers and to industry,” Zaidi said.

“I expect the next few weeks to make things far worse once the disruption and price factors pass through.”

In Bangladesh, which imports about 95 percent of its oil and is expected to run through its fuel reserves within days, petrol pumps in some districts have run dry despite the introduction of fuel rationing.

Sri Lanka, which imports about 60 percent of its energy needs and is still reeling from an economic meltdown that began in 2019, has declared every Wednesday a public holiday and introduced a mandatory fuel pass for vehicle owners to conserve petrol and diesel, stockpiles of which are projected to run dry within weeks.

In Egypt, one of the biggest energy importers and among the most indebted economies in the Middle East, the government has ordered malls, shops and cafes to close by 9pm on weekdays and 10pm during weekends, and cut back on public lighting.

Facing growing pressure on public finances due to the government’s heavy subsidisation of fuel prices, Egyptian officials on March 10 announced price hikes of between 15 and 22 percent for petrol, diesel and cooking gas.

While acknowledging the burden on the public, Egyptian President Abdel Fattah el-Sisi said the move was necessary to avoid “harsher and more dangerous outcomes”.

“For a majority of developing economies, especially those already grappling with debt and high import dependence, they are facing a potent mix of inflation, currency pressures and fiscal strains,” said Yeah Kim Leng, a professor of economics at the Jeffrey Cheah Institute on Southeast Asia at Sunway University in Kuala Lumpur, Malaysia.

“The hardest hit are net energy and food importers, especially those with fragile macroeconomic foundations and pre-existing vulnerabilities that typified countries with low per capita income and high poverty rates,” Yeah added.

Pakistan, Bangladesh, Sri Lanka, Jordan, Senegal, Egypt, Angola, Ethiopia and Zambia are among the most at risk, according to a recent analysis by the Washington-based Centre for Global Development, which looked at factors including dependence on fuel imports, public debt levels and foreign exchange reserve/import ratios.

Currency depreciation

The weakening of many developing countries’ currencies against the US dollar – the result of investors buying the greenback amid heightened geopolitical uncertainty – has compounded the situation by further driving up costs.

“Countries such as Indonesia and the Philippines have already seen their currencies at near record lows even before the start of the conflict, making imports, including oil, much more expensive,” said Azizul Amiludin, a non-resident senior fellow at the Malaysia Institute of Economic Research in Kuala Lumpur.

Much as the fallout of the war poses particular challenges for governments in developing countries, the effect on citizens is disproportionate, too.

In less advanced economies, citizens spend much more of their pay cheques on fuel and food, leaving them more exposed to rising living costs.

At the same time, governments in developing countries have less capacity to provide a safety net for those at risk of falling through the cracks.

“In vulnerable economies, governments often attempt to shield their populations from price hikes by subsidising fuel and food,” said Yeah, the Jeffrey Cheah Institute professor.

“However, with depleted fiscal buffers and shrinking revenues, this becomes unsustainable. The ensuing austerity, combined with hyperinflation, can trigger widespread social unrest and a full-blown fiscal crisis.”

With the US and Israel barely a month into their war and no clear timetable for its end in sight, many analysts expect things to get worse before they get better.

Khalid Waleed, a research fellow at the Sustainable Development Policy Institute in Islamabad, said rising transport costs would soon be felt at supermarket checkouts.

“Diesel is the backbone of Pakistan’s freight and agricultural economy,” Waleed said.

“Trucking costs have started climbing, and that will feed into everything from flour to fertiliser in the weeks ahead.”

Once Pakistan’s wheat harvest gets under way in April, food prices could spike well beyond their current levels, Waleed said.

“Combine harvesters, threshers, tractors for haulage from field to market, and the trucks that move grain from fields to flour mills and storage facilities all run on high-speed diesel,” he said.

“For a country where wheat flour is the single largest item in the food basket of the bottom two income quintiles, this is not a marginal concern,” Waleed added.

“If diesel prices stay elevated through April and May, Pakistan will harvest its wheat at the most expensive input cost in years, and that cost will transmit directly into food inflation at a time when households have almost no capacity left to absorb further price shocks.”

This is first big step by the ChatGPT maker to focus its business on potentially more lucrative areas, such as coding tools.

OpenAI is shutting down its social media app Sora, which went viral towards the end of last year as a place to share short-form videos generated by artificial intelligence but also raised alarms in Hollywood and elsewhere.

OpenAI said in a brief social media message on Tuesday that it was “saying goodbye to the Sora app” and that it would share more soon about how to preserve what users had already created on the app.

“What you made with Sora mattered, and we know this news is disappointing,” it said.

The company behind ChatGPT released Sora in September as an attempt to capture the attention, and potentially advertising dollars, that follow short-form videos on TikTok, YouTube or Meta-owned Instagram and Facebook.

But a growing chorus of advocacy groups, academics and experts expressed concerns about the dangers of letting people create AI videos on just about anything they can type into a prompt, leading to the proliferation of nonconsensual images and realistic deepfakes in a sea of less harmful “AI slop”.

OpenAI was forced to crack down on AI creations of public figures – among them, Michael Jackson, Martin Luther King Jr and Mister Rogers – doing outlandish things, but only after an outcry from family estates and an actors’ union.

Disney, which made a deal with OpenAI last year to bring its characters to Sora, said in a statement on Tuesday that it respects “OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere”.

But Disney did not see the move coming, the Reuters news agency reported.

On Monday evening, Walt Disney and OpenAI teams were working together on a project linked to Sora. Just 30 minutes after the meeting, the Disney team was blindsided with word that OpenAI was dropping the tool altogether, a person familiar with the matter said.

OpenAI announced the move publicly on Tuesday.

“It was a big rug-pull,” according to the person, who requested anonymity to discuss the matter.

Messy process

The move is the first big step by the ChatGPT maker to focus its business on potentially more lucrative areas, such as coding tools and corporate customers.

But the abrupt cancellation of Sora illustrates how messy the streamlining process may become as OpenAI prepares for a stock market debut that could come as early as later this year.

The Sora decision means the end of a blockbuster $1bn deal between Disney and the ChatGPT maker that was announced a little more than three months ago. As part of the three-year deal, Disney said it would invest $1bn in OpenAI and lend more than 200 of its iconic characters to be used in short, AI-generated videos.

But the transaction between the companies never closed, two other people familiar with the matter said, and no money changed hands.

The head of US Central Command says forces have struck Iranian coastal missile sites and infrastructure, degrading Tehran’s ability to threaten shipping in the Strait of Hormuz, as Washington vows to continue targeting its regional military capabilities.

Workers in India’s textile hub Surat are returning home after days without cooking gas, as an LPG crisis linked to Iran war disruptions halts supplies. Industries face shutdowns, while authorities invoke emergency measures to prioritise households.

First came the energy shock. Now, the Iran war is hitting something even more basic: Food.

With the Strait of Hormuz blocked, vessels are being rerouted and supply chains are under strain.

The disruption is pushing up the costs of almost everything from factories to supermarket shelves thousands of miles away.

The longer the Iran conflict continues, the greater the pressure on businesses and consumers worldwide.

The United Nations warns that rising food, oil and shipping costs could push an additional 45 million people into acute hunger – taking the global total above its record of 319 million.

Iran’s strike on Qatar’s Ras Laffan gas facility will cut an estimated 17% of the country’s Liquefied Natural Gas export capacity for up to five years, officials say. The damage is a major blow to the global energy market, which could disrupt supplies to Europe, Asia and beyond.

CEO Saad al-Kaabi says QatarEnergy may have to declare force majeure on long-term contracts for up to five years.

Iranian ⁠attacks on Qatar have wiped out ⁠17 percent of its liquefied natural gas (LNG) export capacity, causing an estimated $20bn in lost annual revenue and threatening supplies to Europe and ⁠Asia, QatarEnergy’s CEO says.

Saad al-Kaabi told the Reuters news agency on Thursday that two of Qatar’s 14 LNG trains, the equipment used to liquefy natural gas, and one of its two gas-to-liquids facilities were damaged in Iranian strikes this week.

The repairs will sideline 12.8 million tonnes of LNG production per year for three to five years, he said.

“I never in my wildest dreams would have thought that Qatar would be – Qatar and the region – in such an attack, especially from a ‌brotherly Muslim country in the month of Ramadan, attacking us in this way,” al-Kaabi said in an interview.

His comments came hours after Iran on Wednesday launched a series of attacks on oil and gas facilities across the Gulf region after the Israeli military bombed its South Pars offshore gasfield.

Tehran has been firing missiles and drones across the Middle East in response to the United States-Israeli war on Iran, which began on February 28.

It also has essentially blocked the Strait of Hormuz, a critical Gulf waterway through which about one-fifth of the world’s oil and LNG supplies transit, fuelling soaring petrol prices and global concerns about rising inflation.

Iran’s attacks on energy infrastructure have heightened tensions with its Arab Gulf neighbours, who have condemned the strikes as a violation of international law.

Iranian Foreign Minister Abbas Araghchi said on Thursday that his country would show “ZERO restraint” if its infrastructure is struck again as the Israeli attack on the South Pars gasfield continued to spur condemnation.

“Our response to Israel’s attack on our infrastructure employed FRACTION of our power. The ONLY reason for restraint was respect for requested de-escalation,” Araghchi wrote on X.

“Any end to this war must address damage to our civilian sites.”

‘Stay away from oil and gas facilities’

During Thursday’s interview with Reuters, al-Kaabi said QatarEnergy may have to declare force majeure on long-term contracts for up to five years for LNG supplies bound for Italy, Belgium, South ⁠Korea and China due to the two damaged trains.

“I mean, these are long-term contracts that we have to declare force majeure. We already declared, but that was a shorter term. Now it’s whatever the period is,” he said.

QatarEnergy had declared force majeure on its entire output of LNG after earlier attacks on its Ras Laffan production hub, which came under fire again on Wednesday. “For production to restart, first we need hostilities to cease,” al-Kaabi said.

The damaged units cost about $26bn to build, al-Kaabi said. He also told Reuters that the scale of the damage from the attacks has set the region back 10 to 20 years.

“If Israel attacked Iran, it’s between Iran and Israel. It has nothing to do with us and the region,” he said.

“And so now, in addition to that, I’m saying that everybody in the world, whether it’s Israel, whether it’s the US, whether it’s any other country, everybody should stay away from oil and gas facilities.”

The United States Federal Reserve will hold interest rates steady as the labour market cools and prices on goods and services surge following the US and Israel’s joint strikes on Iran.

The central bank will maintain its benchmark rate at 3.5–3.75 percent, consistent with the Fed’s decision last month, when it also held rates steady.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the US economy are uncertain,” the central bank said in a statement announcing its policy decision and referring to its Federal Open Market Committee.

“The Committee is attentive to the risks to both sides of its dual mandate.”

Holding rates steady was in line with estimates. CME FedWatch, a tool that tracks monetary policy decisions, forecast that there was a 99 percent chance that rates would hold steady.

The stall comes after three rate cuts in 2025.

Global gripes

Consumers are also facing the repercussions of US President Donald Trump’s trade and military policies in their daily expenses.

“Despite meaningful progress on inflation in 2024, Trump’s tariffs have stalled progress and kept inflation persistently above the Fed’s target. Wholesale prices are running hot as service prices surge, and now, Trump’s war in Iran is rocking commodity markets around the globe,” Elizabeth Pancotti, managing director of policy and advocacy at Groundwork Collaborative, an economic think tank, said in comments provided to Al Jazeera.

Last month, the US Supreme Court ruled against the president for his use of the International Emergency Economic Powers Act (IEEPA). The high court said the president exceeded his authority and that the tariffs imposed under that order must be refunded. However, the president then imposed new tariffs not covered by IEEPA.

The White House announced a 15 percent tariff through Section 122, which allows the president to impose tariffs for 150 days. Those changes were reflected in the producer price index report released by the US Department of Labor’s Bureau of Labor Statistics on Wednesday.

Wholesale prices rose by 0.7 percent for the month, marking the biggest one-month surge in a year. Goods prices rose 1.1 percent overall after tumbling for two months. Energy prices rose by 2.3 percent, with the cost of gas or petrol rising by 1.8 percent. Those costs are expected to get higher as tensions rise in the Strait of Hormuz following joint US-Israel strikes on Iran in late February and the subsequent retaliation.

“In the near term, higher energy prices will push up overall inflation; however, it is too soon to know the scope and duration of the potential effects on the economy,” Fed Chair Jerome Powell told reporters.

In the last month, petrol prices have jumped for US consumers. The average price for a gallon of regular gasoline is $3.84, up from $2.92 this time last month.

“The Fed’s inflation worries extend beyond weathering a fleeting wave of one-off price hikes associated with tariffs and, more recently, an energy price spike,” Stephen Stanley, chief US economist at Santander US Capital Markets, told the Reuters news agency.

Labour market stalls

Holding rates steady also comes as the job market stagnates. The latest jobs report, which was released earlier this month, showed that the US economy lost 92,000 jobs, with unemployment rising to 4.4 percent.

Meanwhile, the Job Openings and Labor Turnover Survey, or JOLTS report, which came out last week, showed 6.9 million open jobs in the US, unchanged from the month prior. That shows that employer hiring has stalled and that those who have jobs are seldom leaving for new ones.

“This might be one of the toughest moments in recent memory for the Federal Reserve’s Open Market Committee,” Michael Linden, Senior Policy Fellow at the Washington Center for Equitable Growth, said in remarks provided to Al Jazeera. “Recent data has revealed that economic growth in the back half of last year was extremely weak, the labour market seems to be on the precipice of disaster, and prices keep rising faster than anyone feels comfortable with.”

Political undercurrents

Wednesday’s decision is the second-to-last one of current Fed Chair Powell, whose term is up in May. Powell, who was first appointed by Trump during his first administration, has been a target of Trump’s scorn and criticisms for not cutting interest rates fast enough.

“When is ‘Too Late’ Powell lowering INTEREST RATES?” Trump posted on his social media platform Truth Social on Wednesday morning ahead of the decision.

Previously, Trump said he would not nominate someone to lead the central bank unless the nominee agreed with his position.

“Anybody that disagrees with me will never be the Fed Chairman!” Trump said in a post on Truth Social in December.

“We at the Fed will continue to do our jobs with objectivity, integrity and deep commitment to serve the American people,” Powell told reporters.

Trump’s nominee to succeed Powell, Kevin Warsh, has his nomination in flux as Republican Senator Thom Tillis said he would not vote to advance any of Trump’s nominees to the central bank until a criminal probe into the current chairman, Powell, is closed.

Tillis sits on the Senate Banking Committee, which vets nominees for the central bank, including Warsh. He said he will not approve Trump’s Fed nominees until the probe of Powell is closed. The criminal probe of Powell centres on Fed building renovations after a judge quashed grand jury subpoenas and called the investigation a pretext to pressure the central bank to lower interest rates.

If Warsh has not been confirmed by the Senate in time for the Fed’s June 16–17 meeting, Powell would continue to lead the rate-setting Federal Open Market Committee.

“If my successor is not confirmed by the end of my term as chair, I would serve as chair pro tem until he is confirmed. That is what the law calls for,” Powell said.

“On the question of whether I will leave while the investigation is ongoing, I have no intention of leaving the board until the investigation is well and truly over with transparency and finality.”

As United States President Donald Trump tries to build a coalition of navies willing to open the Strait of Hormuz, some countries are negotiating safe passage directly with Iran, underscoring a new de facto reality, analysts say: Regardless of military results, Tehran is calling the shots on who gets to use the world’s most important energy waterway.

After US-Israeli strikes on Iran began on February 28 and killed Supreme Leader Ali Khamenei, the Iranian military leadership responded by focusing on its most potent form of leverage – Iran’s geography. The country controls the northern shore of the Strait of Hormuz, through which 20 percent of global crude oil and natural gas supplies pass. It is 33km (20 miles) wide at its narrowest point, so any naval force that wants to cross it becomes easy prey for Iranian attacks coming from the mainland.

Considering insurance companies’ low appetite for risk, it took relatively few attacks on vessels in the strait – or just the threat of them – to undermine market confidence and send insurance premiums shooting up, causing a near paralysis in maritime traffic. About 20 vessels have been attacked since the start of the war.

“Iran has effectively proven that it dictates the terms of passage through the strait. They have now shown they are the gatekeeper of this important chokepoint. This will elevate the status of Iran in the geography of the Gulf,” said Andreas Krieg, an associate professor in Security Studies at King’s College London and a fellow at King’s Institute of Middle Eastern Studies. This will be the new reality for the foreseeable future, he added.

Meanwhile, crude prices have risen above $100 a barrel, more than 20 percent higher than pre-war prices, forcing countries to make the biggest releases of emergency reserves in history. Gas prices have risen by more than 40 percent since the war began.

Trump initially floated the idea of ordering the US Navy to escort vessels through the waterway. He then appealed to some countries to send warships and warned NATO members they would face “a very bad” future if these allies failed to help in opening the strait. But the appeal was either turned down or received noncommittal responses. Japan said it had no plans to deploy naval vessels. Australia ruled out sending ships. The United Kingdom said it would not be drawn into the wider war. Germany sent a clear message: “This is not our war”.

Others decided to take action – but not of the kind that Trump asked for. On Saturday, two India-flagged gas tankers passed through the strait after days of negotiations between New Delhi and Tehran, including a phone call between Indian Prime Minister Narendra Modi and Iranian President Masoud Pezeshkian. Ships from Pakistan, Turkiye and China also have transited through the Strait of Hormuz. The Financial Times has reported that Italy and France have also reached out to Iran for deals although Italian authorities have rejected making such an overture.

Meanwhile, Windward, a maritime intelligence tracking group, said that while traffic in the strait on Tuesday remained 97 percent below average, a growing number of ships have been passing through Iran’s territorial waters, suggesting that Tehran is allowing “permission-based transit”.

‘It is up to us to decide’

There is a precedent for US naval forces to escort convoys through the strait dating back to the Iran-Iraq War in the 1980s. But today’s scenario is different, experts said. Back then, the US, while it was backing Iraqi leader Saddam Hussein, was not a direct party to the conflict. Iran was still in a post-revolutionary process of consolidating power, and its Islamic Revolutionary Guard Corps was nowhere near as organised as it is today.

Today, Iran has drones that its factories are capable of producing on a large scale and has been using them. Iranian forces could also use small boats to assault tankers, deploy mines and engage in other guerrilla-style tactics. While there are conflicting reports on whether Iran has placed mines in the strait, experts said it would be a counterproductive move for Tehran because it would disrupt the passage for any ships – Iranian vessels included – and it would take away from Tehran the power to choose who may pass.

Iranian officials are aware of their geographic advantage. “This is up to our military to decide,” Iranian Foreign Minister Abbas Araghchi said on Sunday, referring to who will be allowed to use the strait.

Pro-government figures increasingly frame the Strait of Hormuz as a strategic bargaining tool beyond the war itself, suggesting the waterway could be used to extract compensation, sanctions relief or broader economic concessions after the war, Hamidreza Azizi, an expert on Iran and visiting fellow with the German Institute for International and Security Affairs, commented on X.

Recent attacks seem to suggest that Iran wants to increase its pressure on the energy market.

On Tuesday, a drone attack caused a fire at the port of Fujairah, the United Arab Emirates’s only crude export terminal. It is located outside the eastern entrance of the Strait of Hormuz, allowing its exports to circumvent it. The Iran-backed Houthis in Yemen could also further squeeze oil prices by disrupting the Bab al-Mandeb strait. That would force the US to operate across multiple maritime theatres. So far, the Houthis have not carried out such attacks, but this month, they said they were ready to strike at any ‌moment.

Still, the US is focused on applying maximum pressure on Tehran and forcing it to open the Strait of Hormuz. The US Central Command, the US military’s combat command responsible for operations in the Middle East, said early on Wednesday that its forces had used 2,270kg (5,000lb) bunker-busting munitions against antiship missile sites along Iran’s coastline near the Strait of Hormuz.

Trump has also ordered amphibious ships carrying thousands of US Marines to move to the Middle East, and some experts believe the US might try to seize Kharg Island, a tiny piece of land in the northern Gulf where 90 percent of Iranian crude oil is exported from. The US has already bombed what it said were military sites on the island.

Such an operation, however, might do little to force Iran into opening the Strait of Hormuz, Krieg said. The island is 500km 310 miles) from the strait, and should the US take control of it, it would expose US Marines to Iranian fire. Should Iran see its key terminal being seized, it could also opt to mine the strait outright, having fewer reasons to allow some vessels to pass through.

“The issue with the Strait of Hormuz is really not a military one. … It’s a market issue, and confidence cannot be restored by the military. Confidence can be restored through diplomacy only,” Krieg said.

The national power grid comes back on after Cuba’s 10 million people were plunged into darkness overnight.

Cuba has reconnected its power grid and brought online its largest oil-fired power plant, energy officials said, putting an end to a nationwide blackout that lasted more than 29 hours amid a United States move to choke off the island’s fuel supply.

After the country’s 10 million people had been plunged into darkness overnight, the Caribbean island’s national power grid had fully come back online by 6:11pm (22:11 GMT) on Tuesday. However, officials said power shortages may continue because not enough electricity is being generated.

In addition to cutting off oil sales to Cuba, US President Donald Trump has escalated his rhetoric against the Communist-run island, saying on Monday he could do anything he wanted with the country.

A US State Department official blamed the Cuban government for the grid collapse, calling blackouts a “symptom of the failing regime’s incompetence”.

Cuban President Miguel Diaz-Canel fired back at Washington, criticising its “almost daily public threats against Cuba”.

“They intend to and announce plans to take over the country, its resources, its properties, and even the very economy they seek to suffocate in order to force us to surrender,” Diaz-Canel wrote on social media on Tuesday night, shortly after power returned nationwide.

Cuba has yet to say what caused Monday’s nationwide grid failure, the first such collapse since the US cut off the island’s oil supply from Venezuela and threatened to slap tariffs on countries that ship fuel to the nation.

By midday on Tuesday, grid workers successfully fired up the Antonio Guiteras power plant, a decades-old behemoth that underpins the country’s power grid.

Daily blackouts

Electricity generation, hampered by dire fuel shortages and antiquated power plants, is still far below what is necessary to meet demand, providing scarce relief for Cubans already exhausted from months of blackouts.

Most Cubans, including those in the capital, Havana, were seeing 16 or more hours of blackout daily even before the latest grid collapse.

“It affects every aspect of our lives,” said Havana resident Carlos Montes de Oca, noting that the outages had thrown simple necessities such as food and water supply into disarray. “All we can do is sit, wait, read a book… otherwise the stress gets to you.”

Much of Cuba was overcast through the afternoon on Monday as a cold front neared the island, casting shadows on the solar parks that account for a third or more of daytime generation.

Cuba has received only two small vessels carrying oil imports this year, according to LSEG ship tracking data seen by Reuters on Monday. On Tuesday, a Hong Kong-flagged tanker that could be carrying fuel to Cuba resumed navigation after suspending its course weeks ago in the Atlantic Ocean, the data showed.

Cuba and the US have opened talks aimed at defusing the crisis, among the most acute since 1959, when Fidel Castro forced a US ally from power on the island.

Neither side has provided details of the ongoing negotiations, although Trump has portrayed Cuba as desperate to make a deal.

Cubans, no strangers to hardship, saw little choice but to stay calm.

“We still don’t have power at my house,” said Havana resident Juana Perez. “But we’ll take it in stride, as we Cubans always do.”