Business and Economy

Military and law enforcement clashed with demonstrators outside La Paz, Bolivia, in an attempt to clear roadways that had been blocked as part of nationwide antigovernment protests.

As many as 3,500 soldiers and police were deployed as part of the operation that began in the early hours of Saturday. Around 57 people were arrested, according to the citizens’ rights ombudsman’s office.

Miners, schoolteachers, Indigenous groups and unions have helped to organise the protests, which aimed to convey outrage against the government of centre-right President Rodrigo Paz.

Bolivia is in the grips of an historic economic crisis, considered the worst the country has seen in decades.

The government’s foreign currency reserves have cratered, as exports from Bolivia have slowed down.

Key among those was natural gas. Vast reserves of the fuel were discovered in the late 20th century, and for nearly three decades, those natural gas deposits powered Bolivia’s economy, transforming the South American country into a major energy exporter.

But in 2022, the dynamic switched, amid mismanagement and dwindling supplies. Since then, Bolivia has had to import fuel from abroad, exacerbating its economic crisis.

Currently, many parts of the country have experienced long lines for fuel and shortages of basic supplies like food.

Paz, who was elected in October, had campaigned on alleviating the economic stress. But since taking office, he has spurred outrage by ending a two-decade-old fuel subsidy and pushing to privatise state-owned companies.

Earlier this month, the protests forced the repeal of a land reform measure, Law 1720, that critics claimed could be used to dispossess small, rural landowners, in favour of bigger holdings.

The Bolivian government has estimated that 22 roadblocks have been erected across the country in recent weeks.

Some of the protesters have demanded Paz’s resignation: His election in October marked the end of nearly two decades of rule by the Movement for Socialism (MAS).

But Paz’s office has blamed the demonstrations for cutting off key supplies to cities like La Paz, which holds the seat of government.

Food prices have increased since the blockades began, and the government claims three people have died after being unable to reach hospitals.

According to presidential spokesperson Jose Luis Galvez, Saturday’s crackdown on the protesters was designed to create a “humanitarian corridor” to ensure the free flow of supplies to hospitals in La Paz.

Earlier this week, Paz also thanked his Argentinian counterpart, Javier Milei, for delivering humanitarian assistance to Bolivia.

“This gesture of solidarity not only strengthens the historic bonds of brotherhood between our nations, but also represents vital relief for our communities in times of great need,” Paz wrote on social media on Friday.

Milei responded by denouncing the protesters as anti-democratic.

“Argentina stands with the Bolivian people and supports their democratically elected authorities against those who seek to destabilise the country and obstruct the path toward freedom and progress,” the Argentinian president said.

Early signs point to the United States and China moving towards a relationship focused on pragmatic areas of common interest following US President Donald Trump’s trip to China, according to analysts, setting aside the turmoil that marked 2025.

Trump was in Beijing for three days this week to meet with Chinese President Xi Jinping, accompanied by a delegation of American CEOs, including the heads of Apple, Nvidia, BlackRock and Goldman Sachs.

The meeting between the two leaders came just over six months after they agreed to pause the US-China trade war for a year on the sidelines of a multilateral summit in South Korea. While a frequent critic of China’s economic policies at home, Trump appeared to get along with Xi in person throughout his trip and lavished praise on the Chinese leader.

“It’s an honour to be with you, it’s an honour to be your friend, and the relationship between China and the USA is going to be better than ever before,” Trump told Xi on Thursday.

The White House readout of the Trump-Xi meeting on Thursday stressed areas of common ground, stating that the leaders had “discussed ways to enhance economic cooperation between our two countries” by “expanding market access for American businesses into China and increasing Chinese investment into our industries”.

Notably absent from the statement was any mention of China’s export controls on rare earths, critical materials used across the tech, defence and energy sectors. China controls nearly the entire industry, and it has moved to restrict US access.

William Yang, senior Northeast Asia analyst at the Crisis Group, told Al Jazeera that Trump’s remarks showed he would likely try to compartmentalise US-China relations into areas where the two sides can work together without being overshadowed by geopolitical concerns.

Xi, while less effusive, also spoke of his desire to move towards a new US-China framework based on “constructive strategic stability”, meaning that the US and China should try to “minimise competition, manage differences and allow stability to be the foundation of the bilateral relationship”, according to Yang.

Both leaders appear to have sidestepped other controversial issues, such as the status of Taiwan, a 23 million-person democracy claimed by Beijing but unofficially backed by Washington.

Xi told Trump during their meeting that Taiwan was the “most important issue” in the US-China relationship, and that mishandling it could lead to “clashes and even conflicts” between the two sides. Beijing objects to Washington’s ongoing military support of Taiwan and has pressed the US to take a more explicit line on Taiwan’s political status.

Although the US does not recognise the government in Taipei, it maintains a deliberately vague policy on China’s territorial claims. Despite the controversy, neither the Chinese nor the US readout mentioned whether Trump discussed Taiwan or the future of arms sales – suggesting he either disagreed with Xi or avoided the topic.

Analysts like Yang say it is still too soon to know whether Trump will heed Xi’s remarks by blocking or delaying a $14bn arms deal reportedly in the works for Taiwan. The deal would need Trump’s sign-off to move forward, according to US legislators.

Xi was equally circumspect on Iran and the Strait of Hormuz, which has been shuttered since the US and Israel launched a war on Iran on February 28.

Trump has previously pushed China to encourage Iran to reopen the strait, through which a fifth of the world’s oil and gas passed each year before the war, because of its close relationship with Tehran. China and Iran signed a 25-year “strategic partnership” in 2021, and Beijing buys 80 to 90 percent of Iran’s oil annually.

Trump raised the points again in his meeting with Xi in Beijing, according to the US readout, which said the two leaders “agreed that the Strait of Hormuz must remain open to support the free flow of energy”.

“President Xi also made clear China’s opposition to the militarisation of the Strait and any effort to charge a toll for its use, and he expressed interest in purchasing more American oil to reduce China’s dependence on the Strait in the future. Both countries agreed that Iran can never have a nuclear weapon,” the readout said.

The Chinese readout of their meeting on Thursday did not include mention of Iran or its nuclear programme.

Chucheng Feng, founding partner of Hutong Research based in Beijing, told Al Jazeera that the omissions reflect that Xi and Trump still disagree on key issues, including Iran, but that the overall message from the summit was a desire to move forward.

“For Beijing, the most important thing is to find a floor for the relationship, to set up and enhance guardrails so that no surprises or uncontrolled escalations suddenly emerge. For that, item-by-item disagreements are largely secondary,” he said.

Before arriving for his high-stakes summit with Chinese leader Xi Jinping, United States President Donald Trump aimed to set expectations high.

He said he would urge Xi to “open up” China’s economy and announced a delegation of top business executives, including Tesla’s Elon Musk, Apple’s Tim Cook and Nvidia’s Jensen Huang, to accompany him.

As Trump and Xi prepare to wrap up two days of meetings on Friday, the expectations for their summit’s outcome among observers generally are modest at best.

While Trump and Xi are anticipated to extend the one-year pause in their trade war agreed to in South Korea in October, the expectations are for a stabilisation – not revitalisation – in ties between the world’s two largest economies, which are locked in a rivalry that spans everything from trade and artificial intelligence to the status of Taiwan.

“It is important to be clear-eyed about the state of relations here,” Claire E Reade, a senior counsel at Arnold & Porter who previously worked on China at the Office of the US Trade Representative (USTR), told Al Jazeera.

“China does not trust the US, and China wants to beat the US in what it sees as long-term global competition,” Reade said.

“This limits what can be agreed.”

While Trump and Xi have yet to announce the final contours of any trade agreement, the US side has flagged various business deals in the pipeline.

In a pre-recorded interview with Fox News that aired on Thursday, Trump said that China would invest “hundreds of billions of dollars” in companies run by the CEOs in his delegation, without providing further details.

Trump also said that Beijing had agreed to purchase US oil and 200 Boeing aircraft.

Trump administration officials have said that the sides are also discussing the establishment of a “Board of Investment” to manage investments between the countries.

“A realistic ‘opening up’ of the Chinese market would likely focus first on sectors where the economic complementarity is most obvious,” Taiyi Sun, an associate professor of political science at Christopher Newport University in Newport News, Virginia, told Al Jazeera.

“Agricultural goods such as soybeans and beef, as well as high-value-added manufacturing products like Boeing aircraft, are natural areas for expansion because they match existing Chinese demand with American export strengths.”

Sun said a “gradual” opening for US firms in sectors such as financial services could also be possible.

“But those areas are politically and institutionally more sensitive inside China, so progress would likely be incremental rather than immediate,” he said.

Gabriel Wildau, a senior vice president at global business advisory firm Teneo, said both sides will be seeking to address supply-chain vulnerabilities exposed by their trade war.

“The Iran war has likely increased the US’s vulnerability to export controls on rare earths, given the need to rebuild the munition stocks depleted in that war,” Wildau told Al Jazeera.

“Washington will therefore be willing to offer tariff relief – or at least assurances not to impose new tariffs – in exchange for Beijing’s commitment to keep rare earth exports flowing.”

While Trump and Xi agreed to roll back some trade barriers at their summit in South Korea, US-Chinese business and trade remain severely constrained after a decade of tit-for-tat economic salvoes between the sides.

The average US tariff on Chinese goods stood at 47.5 percent after the South Korea summit, up from 3.1 percent before Trump’s first term, according to the Peterson Institute for International Economics.

China’s average tariff on US goods stood at 31.9 percent, up from 8.4 percent in 2018, according to the think tank.

Two-way goods trade amounted to about $415bn in 2025, down sharply from its 2022 peak of $690bn.

Carsten Holz, an expert on the Chinese economy at the Hong Kong University of Science and Technology, said China has less incentive to make concessions to the US than before, amid the rise of its domestic industries.

“Across many industrial sectors, PRC [People’s Republic of China] firms hold leading or controlling positions,” Holz told Al Jazeera.

“As a result, the PRC economy has little to gain from opening further to the US and is likely to only offer largely symbolic gestures.”

Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore, voiced similar sentiments about the limits of US leverage.

“Basically, Trump expects China to buy more stuff from America and let US companies operate more freely in China,” Elms told Al Jazeera.

“What is he offering?” Elms said. “Very little, largely because Trump sees the bilateral relationship as one where the US has been fair and China has not.”

Reade, the former USTR official, said Xi would not agree to any measures that “harm Chinese interests in any way.”

“Instead, China will potentially give the US no-cost ‘gifts,’” Reade said, suggesting such measures could include the removal of trade barriers it placed on US beef.

“It may buy US goods it needs,” Reade said.

“If it allows purchases of US tech products, it will only be because it needs them right now,” she added, “But this does not interfere with China’s strategic plans to eliminate dependence on US technology over the longer term.”

Protesters have demanded the resignation of President Rodrigo Paz, who was elected on a platform of economic reform.

Demonstrators, led by mining groups and rural unions, have clashed with law enforcement in Bolivia as tensions simmer over the country’s economic crisis, the worst in decades.

On Thursday, small explosions were heard in the midst of the protest in La Paz, credited to miners setting off small sticks of dynamite. Some protesters were reported as attempting to breach the presidential palace.

The unrest follows weeks of road blockades, as miners, farmers, teachers and rural workers express frustration over the country’s ongoing economic turmoil.

Bolivia used to be a major exporter of natural gas, but in recent years, its reserves began to shrivel, and its production has plummeted. Now, rather than being a fuel exporter, it has become a net importer, reliant on oil and natural gas from abroad.

The collapse of the natural gas industry has been coupled with dwindling supplies of foreign currency in the country. The result has been soaring inflation, supply shortages and higher prices.

Bolivians have experienced long lines for fuel, and hospitals have reported a lack of basic supplies like oxygen and medication.

Centre-right leader Rodrigo Paz was elected in October last year in part on a promise to address the economic tailspin.

His victory marked a political sea change in Bolivia. For much of the past two decades, except for a brief period in 2019, the country has been governed by the Movement Towards Socialism (MAS).

The decline of MAS has been credited, in part, to the uproar over the economy.

But on Thursday, Paz likewise faced calls from protesters for his resignation, just as his MAS predecessor, Luis Arce, had.

Earlier in the day, a group of 20 miners were invited to the presidential palace to meet with Paz and discuss their demands, according to the Reuters news agency.

Ahead of the meeting, Economy Minister Jose Gabriel Espinoza said his government was “open to dialogue”.

Among the issues reportedly discussed were fuel subsidies, welfare benefits and changes to an agrarian reform measure, Law 1720, that was repealed on Wednesday after outcry.

Still, officials have refused demands that Paz step down. “The president is not going to resign,” Mauricio Zamora, the minister of public works, services and housing, said earlier this month.

Some of Paz’s allies have blamed the unrest on former President Evo Morales, a former trade union leader who continues to draw popular support in Bolivia’s rural areas.

Morales, who led Bolivia from 2006 to 2019, previously supported protests against Paz’s predecessor Arce, after splitting from MAS.

He is also the subject of an arrest warrant: Morales has been accused of statutory rape and was held in contempt of court for failing to show up to a hearing last week.

A prolific social media user, Morales posted multiple times on Thursday about the protests, accusing the government of using him as a scapegoat. He also echoed calls for officials to address the shortages of food, fuel and other basic supplies.

“They believe that the thousands of Bolivians currently protesting — in the streets and on the roads — are merely obeying a single individual,” Morales wrote in one post.

“The outraged are driven by their social conscience and their fury against a government that, from day one, betrayed its constituents and the nation.”

Istanbul, Turkiye – When investigations by Al Jazeera and other media outlets in 2024 revealed that Israeli-linked artificial intelligence (AI) systems such as Lavender and Gospel had helped generate thousands of military targets in Gaza, critics warned that warfare was entering a new era – one driven not only by soldiers and bombs, but by algorithms, data, and surveillance technology.

Then, in September 2024, thousands of pagers and walkie-talkies used by members of Hezbollah exploded in coordinated attacks in Lebanon, widely attributed to Israeli intelligence operations that had turned ordinary communication devices into weapons.

And, last year, reporting by Al Jazeera also raised concerns about the use of cloud and data infrastructure linked to major US technology companies in Israeli surveillance operations involving Palestinians.

For a growing number of scholars, economists and political thinkers, such developments reflect more than just the changing nature of conflict. They show how power in the modern world is increasingly exercised not just through military force, but through technology, finance and control over information.

That argument has revived broader debates around decolonisation – a term historically associated with the dismantling of European empires after World War II, when countries across Asia, Africa and the Middle East gained formal independence.

But many proponents of what is termed “decolonial theory” – a school of thought arguing that colonial-era systems of power and hierarchy still shape modern politics, economics and knowledge – argue that colonial power structures never fully disappeared. Instead, they evolved, embedding themselves in global financial systems, technology platforms, media networks and even the production of knowledge itself.

Dependence of Global South countries on Western technology, digital infrastructure and global markets can create new forms of political and economic vulnerability, particularly across the Global South.

“A generation may have grown up believing they had never experienced colonialism or exploitation,” Esra Albayrak, board chair of the NUN Foundation for Education and Culture and daughter of Turkish President Recep Tayyip Erdogan, told Al Jazeera during the World Decolonization Forum in Istanbul on May 11-12.

“Yet, mentally, they may still be living under colonial influence.”

The war in Gaza marked a turning point, Albayrak says, shining a spotlight on how international principles are not applied equally. Global institutions have so far failed to stop what many countries and rights groups have described as genocide against Palestinians.

“The world is sounding an alarm, and we can no longer afford to remain indifferent to it,” she said.

A techno-feudal era

Albayrak argues that a handful of technology companies are emerging as new, invisible centres of power, shaping how information is produced, circulated and consumed in the digital age.

She describes the digital sphere as the realm of what she calls “future colonialism”, warning that AI systems trained largely on Western-centric data risk reinforcing existing global inequalities.

“When AI systems are run by those tech companies and trained on Western sources, they risk carrying the hierarchies of the past into tomorrow’s digital world, as they now have personalised data, suppressing identity,” Albayrak said.

By this, she means that most major AI models are still trained largely on English-language and Western-produced data – a pattern critics say risks sidelining non-Western languages, cultures and perspectives.

On social media platforms, algorithms tend to amplify some conflicts while rendering others nearly invisible, effectively shaping what billions of users see, discuss and remember online.

Walter D Mignolo, professor at Duke University, argues that while what we historically see as “formal colonialism” may have largely ended, systems of Western dominance continue through economics, culture, technology and knowledge production.

“Coloniality is not over. It is all over the world,” Mignolo said, arguing that modern ideas of development and progress often have the effect of pressuring societies to conform to Western norms.

Rather than simply resisting those systems, he said, societies must find a way to “re-exist” by rebuilding intellectual and cultural autonomy outside dominant global frameworks.

Colonisers in the financial age

The March 2026 Global Debt Report by the Organisation for Economic Co-operation and Development (OECD) reveals that 44 countries face severe debt burdens, often aggravated by global conflicts, forcing some governments to spend more on interest payments than on health or education.

This is not a new phenomenon, as developing countries have been labouring under the weight of foreign debt for decades.

But British political economist and author Ann Pettifor told Al Jazeera that modern forms of domination are now increasingly embedded not in empires or nation-states, but in financial systems operating beyond democratic oversight.

Pettifor points to the growing influence of “shadow” banking networks – financial institutions operating largely outside traditional banking regulations – and giant asset managers such as BlackRock, which manages $13 trillion in assets.

Much of the global financial architecture now functions largely outside the regulatory control of governments, she says, including that of Western states themselves.

“This is not a state colonising other states,” Pettifor said. “This is the financial system colonising the whole world, including my country and the US.”

She argues that elected governments increasingly struggle to control key economic realities – from energy prices to commodity markets – because those systems are dictated by global financial actors operating far beyond public accountability.

In Nigeria, for example, Pettifor says, efforts to expand domestic refining capacity continue to face pressure from international financial institutions and global energy markets to keep fuel prices tied to global markets and maintain reliance on imported refined oil products, despite its vast oil reserves.

Coordinated cooperation between developing nations may be necessary to challenge the dominance of Western-centred financial systems, Pettifor says, pointing to growing efforts across parts of West Africa to expand regional refining capacity and reduce dependence on imported fuel. Yet such ambitions can also leave critical sectors dependent on the decisions and influence of a small number of powerful private actors.

Global financial markets, algorithm-driven platforms, and foreign-controlled digital infrastructure increasingly define everyday life – from fuel and food prices to the information people consume online and the technologies governments and societies depend on, observers say.

A ‘mastery complex’

As wars become increasingly influenced by AI, digital infrastructure and financial dependency, debates around colonisation are focusing less on territorial control and more on who influences energy prices, lending systems, access to technology and the flow of information across borders, observers say.

Albayrak draws a parallel between today’s debates around technology and global power and Rudyard Kipling’s 1899 poem “The White Man’s Burden”, published as the US took control of the Philippines following the Spanish-American War. The poem framed colonial expansion as a moral obligation to “civilise” other societies rather than an exercise of domination.

Albayrak said such traces of “mastery complex” still survive today, though in different forms – not necessarily through military occupation, but through technological, financial and informational influence.

But what the world really needs, she argues, is a global order built not on hierarchy, but on shared responsibility.

“The burden should belong to humanity collectively.”

The next global food crisis is unfolding in a narrow stretch of water.

The United Nations warns that if fertilisers cannot pass through the Strait of Hormuz within just a few weeks, the world could face mass starvation.

It says the consequences could be severe if shipping disruptions linked to the Iran conflict drag on.

Food prices are already at a three-year high, while fertiliser costs critical for agriculture have rocketed.

Aid agencies fear a prolonged disruption could push tens of millions more people into hunger.

For vulnerable economies already struggling with debt and high import costs, the risks are growing fast.

After successfully launching Nigeria’s only operational oil refinery in 2024, billionaire businessman Aliko Dangote has set his sights on East Africa as the next location for another mega refinery project, according to recent reports.

It comes as African countries are actively seeking ways to make energy more secure, following huge global disruptions amid the US and Israel’s war on Iran and Tehran’s subsequent closure of the Strait of Hormuz, through which about 20 percent of the world’s oil and natural gas is shipped.

Dangote, Africa’s richest man, appeared to be one of the winners from this fallout when his newly operational refinery, located in Nigeria’s commercial Lagos State, began selling large volumes of crude oil across the continent as the war on Iran escalated in March and global oil prices soared.

At present, West, South and East Africa rely primarily on importing refined petroleum products from the Middle East, meaning they are highly vulnerable to disruptions there.

Neighbours of Nigeria – Cameroon, Togo, Ghana and even Tanzania, further to the east – are among the countries that have turned to Nigeria as supplies from the Middle East dry up.

By the end of March, the refinery, which has the capacity to produce 650,000 barrels per day (bpd), reported it was also receiving orders from beyond the continent, especially for severely scarce jet fuel as hundreds of flights were cancelled across regions.

Supply from Dangote’s refinery has cushioned the impact of the war in terms of fuel supply for Nigeria and neighbouring countries, analysts say.

Nigeria is Africa’s largest oil producer, and the $19bn project in Lagos is currently the world’s largest single-train refinery, meaning it employs a single processing line rather than multiple units. But it hit full production capacity in February 2026, the same month the war with Iran started.

Nigeria has no functional state-owned refinery, so Dangote’s refinery is now positioning the country to be a net exporter of jet fuel and diesel.

Here’s why more refining capacity in Africa matters for the continent:

What is Dangote’s plan for an East Africa refinery?

In April, Kenya’s President William Ruto announced that East African countries were in talks to build a joint oil refinery at Tanzania’s Tanga port, which would have a similar capacity to Dangote’s Lagos operation.

“We do not want to be held hostage any more by the Strait of Hormuz,” Ruto said at a Nairobi business event in April, which Dangote was present at.

“We do not want to be held hostage by wars that are started by other people. We have our resources here, and we are saying we are going to use our African resources to industrialise our region.”

In an interview with the Financial Times on Sunday, however, Dangote said he would prefer to build the new operation in Kenya rather than Tanzania.

“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” the billionaire told the UK newspaper.

“Kenyans consume more. It’s a bigger economy,” he said, adding that “the ball is in the hands of President Ruto … Whatever President Ruto says is what I’ll do.”

He has projected construction costs of between $15bn and $17bn.

But venturing into East Africa, which has a very different commercial landscape from West Africa, could prove a challenge, analyst Dumebi Oluwole of Lagos-based intelligence firm Stears told Al Jazeera.

“Dangote has proven it [his operation] can build at scale,” she said. “The East African test will be whether it can also navigate the political and logistical landscape of a fragmented, multi-country market.”

Why aren’t African countries already producing more oil?

Despite having sizeable crude reserves, African countries only refine about 44 percent of the total oil consumed themselves, with imports making up the rest, according to a 2022 African Union report.

The top producers of refined oil are Algeria, Egypt and South Africa. There are about 21 refineries in North Africa.

Southern Africa has another seven, while West Africa has 14. However, most refineries in the two regions are either not operating or are producing below the capacity they are equipped to.

East Africa’s only existing refinery is in Mombasa, but it stopped operating in 2013 due to a combination of slow government policies and exiting investors, who deemed it commercially unviable as a result.

There is currently no refining capacity at all in East Africa, despite the region having about 4.7 billion barrels of crude reserves, according to the African Union, mainly in Uganda, South Sudan, Kenya and the Democratic Republic of the Congo.

Kenya imported 40 million barrels of petroleum in 2025. It regularly buys oil from the UAE, Saudi Arabia, India and Oman, all of which have been hampered by Iran’s closure of the Strait of Hormuz.

Nigeria itself is Africa’s biggest net crude producer with a 1.5 million to 1.6 million bpd capacity. The country has not refined meaningfully since 2019.

What difference will local refineries make for African countries?

Exporting most of its crude to then import refined products is expensive and puts Africa on the back foot, analyst Oluwole said.

More oil refined on the continent would mean lower petrol pump prices, lower transport costs, and more energy available for people and businesses, in theory. It would also mean greater access to by-products like fertilisers for farmers, for example, or petrochemicals for manufacturers.

“Dangote has demonstrated that a viable, scalable, intra-African energy supply option is possible – that proof of concept matters enormously,” said Oluwole.

“It reflects a growing continental conviction that Africa can provide for itself, and that this is no longer wishful thinking,” she added.

In Nigeria’s case, Dangote’s refinery is yet to ease pressures, though. Local airlines, for example, have complained about having to pay high prices for jet fuel even with improved local supplies. Analysts say that could be because Nigeria’s government removed fuel subsidies in 2023. Bureaucracy within the state oil company also forced Dangote’s refinery to import crude.

Still, the refinery is contributing to “a more transparent and competitive market”, Oluwole said, adding that results should eventually show.

Other countries are stepping up. Last week, Angola’s $470m Cabinda refinery began supplying domestic as well as foreign markets. The project is owned primarily by the United Kingdom’s Gemcorp Capital and has a capacity of 30,000bpd, with plans to double by the end of 2026.

Dangote’s planned refinery in Kenya, if completed, could also help to reduce East Africa’s reliance on the Middle East.

A separate, government-funded refinery project in Uganda’s Hoima region is also in the works. Authorities expect the project to be able to refine 60,000bpd when it starts operations in 2029. It will be fed by the joint Uganda-Tanzania East African Crude Oil Pipeline (EACOP), an ongoing project which will transport crude from Uganda’s Lake Albert to Tanzania’s Tanga Port.

Uganda also plans to produce diesel, jet fuel, kerosene and Liquefied Petroleum Gas (LPG).

With big plans in place, Oluwole says it’s now left to African governments to create enabling business environments for the private sector.

“Dangote has opened the door,” she said. “The question now is whether African institutions and governments will walk through it.”

US Department of Energy moves to transfer 53.3 million barrels amid rising oil prices.

The United States has announced its latest release of emergency oil stockpiles in coordination with the International Energy Agency (IEA).

The US Department of Energy said on Monday that it had begun transferring 53.3 million barrels from the strategic petroleum reserve after awarding contracts to nine companies under its emergency exchange programme.

Trafigura Trading LLC, a Texas-based commodities trading company, was granted the biggest haul of nearly 13 million barrels, with Marathon Petroleum Corporation and ExxonMobil set to receive 12.4 million barrels and 11.4 million barrels, respectively.

Macquarie Commodities Trading US, Atlantic Trading & Marketing, BP Products North America, Energy Transfer Crude Marketing, Mercuria Energy America and Phillips 66 will receive between 1.05 million and 6.55 million barrels each, according to the Energy Department.

Under the department’s exchange scheme, participating firms are required to replenish the stockpile with new barrels at a later date.

“These actions continue to move oil swiftly into the market, address near-term supply needs, and ensure that the Strategic Petroleum Reserve remains strong through the return of premium barrels,” Kyle Haustveit, the head of the department’s Hydrocarbons and Geothermal Energy Office, said in a statement.

The transfer comes after US President Donald Trump’s administration agreed in March to release 172 million barrels of crude as part of the IEA’s coordination of the largest unloading of global stockpiles in history.

Oil prices have surged since the US and Israel launched their war on Iran in late February, with Tehran’s retaliatory blockade of the Strait of Hormuz paralysing one of the world’s most important trade routes.

Maritime traffic in the strait has ground to a halt amid Iranian threats against commercial shipping, disrupting about one-fifth of the global oil trade.

Oil prices continued to edge higher on Monday after Trump dismissed Iran’s latest peace proposal and warned that the ceasefire between the sides was “on life support”, dampening hopes for a quick resolution to the conflict.

Facing growing public discontent over rising fuel prices, Trump on Monday also pledged to waive the 18.4 cents-per-gallon federal tax on petrol, though taxation is the purview of the US Congress.

Futures for Brent crude, the international benchmark, were up about 1 percent in Asia on Tuesday morning, topping $105 a barrel.

Senator Hawley plans legislative action supporting President Trump’s bid to waive the petrol tax amid rising consumer costs.

United States President Donald Trump said he will cut the 18-cent federal tax on petrol to offset surging prices that have continued to soar after his comments that the US ceasefire with Iran is on “life support”.

On Monday, Trump said he would suspend the petrol tax, but did not specify an end date.

“Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in,” Trump told CBS News.

Trump later told reporters that he would waive the tax, which generates $2.5bn in funds used for US roadway infrastructure, “till it’s appropriate”.

The US administration hinted at the idea on Sunday, when US Energy Secretary Chris Wright told the NBC News programme Meet the Press that the White House was considering suspending the tax.

While the Republican president claimed he would waive the tax, that is not within the White House’s authority. Suspending a federal tax requires an act of the US Congress.

However, key Trump ally Senator Josh Hawley, a Republican from Missouri, said on the social media platform X that he would introduce legislation on Monday to do that.

In March, Senator Mark Kelly, a Democrat from Arizona, proposed suspending the tax until October.

“I anticipate it would pass, but there could be a procedural delay. It also suggests that President Trump doesn’t see a quick end to the reduced volumes and is trying to cushion the American consumer,” Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, told Al Jazeera.

“The impact could be greater in states that have also reduced their own petrol taxes and could reinforce differentiation between petrol prices by region.”

US states also tax petrol, with Indiana, Kentucky and Georgia moving to make cuts to give consumers some relief at the pump.

Petrol prices have continued to climb since the initial strikes of the US-Israel war on Iran on February 28. The average price for a gallon (3.78 litres) of regular petrol is $4.52, according to the American Automobile Association, which tracks daily petrol prices, compared with $2.98 when the strikes first began.

However, news of the stumbling ceasefire has sent oil prices surging. Brent crude futures were up $3.17, or 3.13 percent, at $104.46 a barrel, while US West Texas Intermediate crude was at $98.32 a barrel, up $2.90, or 3.04 percent. Brent reached a session high of $105.99 and WTI hit a peak of $100.37.

On Wall Street, stocks for oil and gas giants are trending upward. Shell was up 1.6 percent in midday trading, Exxon rose 3.1 percent, BP gained 2 percent, and Chevron climbed 1.7 percent.

Airline bailout?

Trump was also asked by CBS on Monday whether a bailout was planned for the airline industry, which has taken a hit since the war on Iran began.

The president told the outlet that a bailout had not “really been presented” and that “the airlines are doing not badly”.

However, earlier this month, budget carrier Spirit Airlines ceased operations after 34 years. Court documents said the airline shut down because of “recent geopolitical events resulting in a massive and sustained increase in fuel prices”.

That comes as other major US carriers raise prices. In April, United Airlines said it would raise fares by 20 percent amid a surge in jet fuel costs.

Official says US president will likely ‘apply pressure’ on China over Beijing’s purchase of Iranian oil amid war.

Donald Trump is set to arrive in Beijing on Wednesday evening to discuss the Iran war and other issues with his Chinese counterpart President Xi Jinping.

White House Principal Deputy Press Secretary Anna Kelly said an opening ceremony and meeting will be on Thursday morning, and the trip will conclude on Friday. The US plans to host the Chinese leader during a reciprocal visit later this year.

Kelly said that this week’s trip would be of “tremendous symbolic significance” and focus on “rebalancing the relationship with China and prioritising reciprocity and fairness to restore American economic independence”.

Trump’s visit, initially scheduled for earlier this year but postponed in March due to the US-Israel war on Iran, comes as the US president struggles to contain the fallout from the war, both at home and abroad.

A senior administration official told news outlets in an anonymous briefing on Sunday that Trump could “apply pressure” to China on Iran in areas such as oil sales and Tehran’s purchase of potential dual-role military-civilian goods.

US Treasury Secretary Scott Bessent last week accused China of “funding” Iran.

“Iran is the largest state sponsor of terrorism, and China has been buying 90 percent of their energy, so they are funding the largest state sponsor of terrorism,” Bessent told Fox News.

Iran closed the Strait of Hormuz in response to US-Israeli attacks, restricting passage through a key artery of global energy transport.

China has said that it wants to see the war end and hosted Iranian Foreign Minister Abbas Arraghchi last week. At the same time, Beijing has refused to recognise Washington’s “unilateral” sanctions on Iran’s oil sector.

Disruptions stemming from the war have disrupted the global economy, with Asian states that depend on imports from the Middle East especially hard hit.

Trump could also bring up China’s support for Russia during the talks, along with trade and rare earth minerals, a vital resource for the US tech sector. Business executives from aerospace manufacturer Boeing and a handful of agricultural companies are set to travel with the US delegation.

The anonymous administration official said that no change was expected regarding the US stance on Taiwan, a main sticking point in relations between Washington and Beijing. China considers the self-ruling island a part of its territory, but the US has deep security and economic commitments to Taiwan.

Tehran, Iran – Skyrocketing inflation is jeopardising food security among households in conflict-hit Iran, new figures show, as diplomatic efforts to end the war launched by the United States and Israel intensify.

“The people must realistically understand the conditions and restrictions of the country,” President Masoud Pezeshkian told a group of officials who gathered on Sunday to discuss rebuilding structures damaged or destroyed in US and Israeli attacks.

“It is natural that there are difficulties and problems in this path, but through people’s cooperation and reliance on national cohesion, problems can be solved,” he was quoted as saying by state media.

Pezeshkian’s comments came a day after the Statistical Center of Iran (SCI) said Farvardin, the first month of the Persian calendar year that ended on April 20, had an inflation rate of 73.5 percent compared to the same month of the previous year. The SCI also noted that inflation was five percent higher in Farvardin compared to the previous month.

The Central Bank of Iran, which reports figures based on a different method and with different data sets, reported a slightly lower inflation rate of 67 percent for Farvardin compared to a year earlier, and a seven percent monthly increase.

Although not matched, both figures indicate a considerably accelerating pace for general inflation, which has been among the highest in the world over recent years, and is continuously making Iranians poorer.

A Tehran resident told Al Jazeera she could no longer afford some of the items she could just last month.

“And it’s not just me – I think most people in society right now can’t afford many of the things they want,” she said.

Figures from the institutions also showed that food inflation is much higher than headline inflation, meaning that people are increasingly forced to pay an expanding share of their shrinking salaries on basic items.

The SCI reported a staggering 115 percent food inflation rate for the first month of the year, compared to the same period the year before, with several staple items more than tripling in price.

Solid vegetable oil had the highest increase at 375 percent, followed by liquid cooking oil at 308 percent; imported rice at 209 percent; Iranian rice at 173 percent; and chicken at 191 percent. The lowest price hikes were for butter, at 48 percent, followed by infant formula at 71 percent and pasta at 75 percent.

Majid, a young man who works at a liver kebab shop in the capital, said the eatery has increased prices three times in recent months.

“The price of liver has doubled. When we ask suppliers why, they either say there’s a shortage or that sheep are being exported. Honestly, there’s no real oversight,” he said.

The state-run Consumers and Producers Protection Organization said in a directive sent to 31 governors across Iran on Sunday that new price hikes for cooking oil are “illegal” and “must be returned to previous levels”, without saying how officials expected that to happen amid deteriorating economic conditions.

The country’s embattled currency, the rial, has also been registering new all-time lows over the past two weeks. On Sunday afternoon, it stood at about 1.77 million against the US dollar in Tehran’s open market after marginally recovering. The rate was about 830,000 per US dollar a year ago.

Subsidies and ‘enemy plots’

The response from the government has included offering subsidies and coupons, while trying to crack down on acts such as hoarding that are perceived to be contributing to price hikes.

But this has not been accompanied by a clear macroeconomic stabilisation package as the US presses on with a naval blockade of Iranian ports.

As Iranian media reported on Sunday that Tehran had sent an official response to the text for an agreement earlier proposed by the US through mediator Pakistan, Pezeshkian said, “If there is talk of negotiations, it does not mean surrender.”

The government hands out monthly cash subsidies and electronic vouchers to buy essential goods at select stores, which together amount to less than $10 each month per person. Authorities are considering raising the amount, but a hefty budget crunch has made that more difficult.

Pezeshkian and Central Bank chief Abdolnasser Hemmati have said they are aware of the price increases, but have blamed the war that began in late February while coordinating with the judiciary to act against price gauging and hoarding.

A number of lawmakers in Iran’s hardline-dominated parliament, as well as state television hosts and outlets linked to the Islamic Revolutionary Guard Corps (IRGC), have said the price surges are suspicious. They have described the runaway prices as being part of an “economic revenge” campaign by enemies who suffered failures in the military arena.

“I want the people of Iran not to be fooled by the enemy-made price hikes,” a guest on state television’s Ofogh network said on Saturday. “Great things have happened, and great things are ahead. The economic achievements of the war are unrivalled by any other period.”

But some of the economic pain continues to be inflicted as a direct result of a near-total internet shutdown now being imposed by Iranian authorities for a 72nd day.

Numerous officials in the government, internet infrastructure firms, telecommunication companies and other state-linked organisations have emphasised that they are against a tiered internet system that is now being implemented. But they have said they bear no responsibility, since the blackout, which is expected to remain in place until the war ends, is ordered by the Supreme National Security Council.

In the meantime, the combined impact of local mismanagement, Western sanctions, blockade, war and the internet shutdown is squeezing people and businesses hard.

“The startup ecosystem of the country is dead, we are searching for a tombstone for it,” the Guild Association of Internet-based Businesses said in a statement on Saturday.

San Francisco, United States – Greer Dove’s days are packed with studying business and finance, as well as doing administrative work at college, along with caring for her eight-year-old daughter with special needs. But once a week, Dove, a single mother, makes sure to drop in at the food bank in California’s Marin County to pick up vegetables, fruit and other food. Along with the federal government’s food benefits, they keep her housing running.

“We need this so we can keep functioning at a high level,” she says. “She loves fruit, so I make sure to get it,” she says of her daughter.

Dove, who is also looking for a full-time job, has worked in restaurants, event management, retail, television shows, office administration and payroll over the years. But she has been on the federal government’s Supplemental Nutritional Assistance Program (SNAP) for six years, and with the food bank, for more than three years. Before she got food benefits, Dove fed her daughter all she had and skipped meals or looked around for snacks in the offices she worked at to get her through the day.

United States President Donald Trump’s One Big Beautiful Bill Act (OBBBA), passed in June, cut SNAP benefits by more than $186bn over the next 10 years to make up for extending cuts to income tax. This could lead to more than 3 million people nationwide, and 665,000 recipients in California, losing such food benefits, according to estimates.

“This will bring a series of cuts that collectively present an existential threat to food benefits,” says Andrew Cheyne, managing director of government relations and public affairs at the County Welfare Directors Association of California.

California’s proposed billionaire tax, which seeks to impose a one-time 5 percent tax on the assets of the state’s more than 200 billionaires to make up for the funding gap created by the OBBBA, got more than 1.5 million signatures in April. It is likely to be on the ballot for the November midterm election.

While most of the nearly $100bn expected to be raised through the tax will go towards filling the gap in health insurance created by the OBBBA, 10 percent will be used to make up for the retrenchment in food benefits.

In California, where more than 5.3 million people, more than any other state, receive food benefits, the impacts of the cuts began to be felt in April when 72,000 immigrants started losing benefits. June onwards, nearly 600,000 recipients will be screened for work eligibility. Recipients, including those who are homeless, seniors, foster youth and veterans, will have to work, study or volunteer to receive food benefits. Failing the screening to meet work requirements for three months will lead to their food benefits being cut.

Brian Galle, professor of law at the University of California at Berkeley and one of the tax measure’s authors, says that in California, the state that introduced gig work, “jobs are increasingly precarious. You may find enough work or not. You may get tips or not. But nutrition needs are steady.”

Making impossible choices

On a recent Friday morning, new members lined up to enrol at a whitewashed, bunting-festooned La Ofrenda food bank in San Francisco’s Mission district. The food bank doles out fresh vegetables, fruit and bread that have been donated by large grocery stores once those products neared expiration date.

Gladys Lee had taken a 45-minute train ride after a friend told her about it. Lee worked at downtown San Francisco’s Hyatt hotel as a room cleaner for three decades until a back injury meant she could not push the heavy cleaning carts any more and had to leave. After seven years of struggling to find work, food was getting scarce, and Lee found her way to La Ofrenda. She packed what she could into a carton and held it in her arms for the train ride back.

Food benefit rolls have shrunk by more than 3.3 million nationally in the six months from July 2025, when the OBBBA was enacted, to January 2026.

In California, the rolls of Calfresh, as food benefits are known in the state, shrank by 288,000 or 6 percent from July 2025 to February 2026, according to analysis by the Center for Budget and Policy Priorities, a Washington, DC-based think tank. This reduction in rolls happened even before the OBBBA cuts began.

Brooke Rollins, the agriculture secretary, wrote in a recent essay that the shrinking of SNAP rolls reflected an ebullient economy and buoyant job growth.

“The drop in SNAP recipients affirms that many Americans are moving from welfare to work,” she wrote. “It is no secret that Trump’s massive tax cuts and deregulation efforts are unleashing robust, private sector-led economic growth, which are fueling trillions in investments, booming wage growth”.

But unemployment remained stable at about 4.4 percent since July 2025, according to the Bureau of Labor Statistics data, while SNAP rolls shrank.

“This last time we saw such a steep, quick decline, other than during natural disasters, is three decades ago when welfare reform was enacted,” says Dottie Rosenbaum, senior fellow and director of  Federal SNAP Policy at the Center for Budget and Policy Priorities.

Nationally, SNAP rolls shrank by 8 percent, while in California, they shrank by 5.5 percent, in part because the work eligibility requirements were delayed until June, while some other states have already implemented them.

At La Ofrenda, Roberto Alfaro, executive director of the nonprofit Homey, says he started the food bank when food costs went up during the pandemic. They have stayed high, he says. Now he sees people doing day jobs and night jobs and coming for food when they have paid rent.

“People are making impossible choices,” says Keely O’Brien, a policy advocate at the Western Center for Law and Poverty.

While California is the world’s fourth-largest economy, growth has come with a soaring cost-of-living crisis.

“With rising housing and utility costs, few households can dedicate that much of their income towards food,” O’Brien says.

The OBBA has also shifted the administrative cost of meeting work eligibility requirements to states, and beginning next year, part of the cost of SNAP will also fall on states.

“To make requirements more stringent, you are creating more government, more bureaucratic logjam,” says Jaren Sorkow, state director for the Children’s Defence Fund.

This has already led to a 51 percent drop in SNAP rolls in Arizona, which has begun implementing the OBBBA cuts, according to data by the Center for Budget and Policy Priorities.

Making something from nothing

Several measures to counter the $100bn gap in funding for health insurance and food benefits created by the OBBBA have been floated in California. The biggest of these is the one-time 5 percent tax on those with assets of more than a billion dollars. The tax will raise $100bn, its authors estimate.

As it seems set to be voted on in the November election, it faces mounting opposition from the state’s tech entrepreneurs who have funded measures to undercut the tax.

Tech entrepreneurs have called it an economic 9/11, saying taxing their assets, including shareholding in startups, will lead to a flight of capital and innovation from the state. Sergey Brin, a cofounder of Google Inc, now spends a week in Nevada and a week in his Bay Area offices and has spent more than $57m on opposing the billionaire tax. He has backed two measures that undercut the billion tax, which have also received 1.4 million and 1.5 million signatures and are also set to be on the ballot for the November election.

One of these measures prohibits future taxes on personal property, including financial assets, savings and retirement accounts, as well as intellectual property. The other would increase audits of taxpayer-funded programmes, and includes language that would essentially invalidate the billionaire tax.

In a recent statement to The New York Times, Brin said, “I fled socialism with my family in 1979 and know the devastating, oppressive society it created in the Soviet Union. I don’t want California to end up in the same place.”

The coalition of unions backing the billionaire tax is bracing for the fight ahead. “We expect to be outspent,” says Kris Cuaresma-Primm, director of partnerships for the coalition that is backing the billionaire tax. “We will keep communicating to people that there is a tidal wave of pain coming from the cuts, and we want to reclaim the losses from the OBBBA.”

Giulia Varaschin, senior tax policy adviser at the International Tax Observatory, who recently coauthored a study on wealth taxes, says there is little academic evidence that such taxes cause the wealthy to leave at a notable scale. “There is only a marginal flight with very little, if any, economic impact,” she says.

The study, coauthored with the economist Gabriel Zucman, who supports the California billionaire tax, did find that wealth taxes had not raised as much revenue as estimated in several European countries and became less popular as a result.

Varaschin says this was because these taxes were levied on a larger set of the wealthy, which included homeowners or small businesses, rather than the ultra-rich or billionaires. The taxpayers could hardly afford to pay it, and the government made exemptions instead. These taxes also did not touch assets, where much of the wealth of the ultra-rich lies, Varaschin says.

The California tax remedies this by taxing only billionaires and taxing assets, including shares in companies.

Daniel Shaviro, Wayne Perry professor of taxation at New York University, says, “Traditionally, these taxes can be hard to enforce because tax administration don’t want to go after these people.”

Even if it passes, “The governor could just say this is not a high priority for him and not enforce it,” Shaviro says, referring to Governor Gavin Newsom, who has opposed the tax.

But Primm says, “The governor is out of touch with Californians on this”.

Newsom is in the last year of his last term as governor. However, nearly all the candidates running for the June 2 primary for governor, except billionaire Tom Steyer, who is running as a progressive Democrat, also oppose this measure. While some have said this will lead to a flight of capital, others say the spending plan does not include expenses for education, which was not cut in the OBBBA.

Greer Dove, who gets food through Calfresh and the San Francisco Marin Food Bank for herself and her daughter, says the looming food benefit cuts are worrying. “The anxiety of it all is adding up. I could be next.”

Caught between rising inflation and slowing growth, the United States Federal Reserve, the European Central Bank and the Bank of England are keeping interest rates and borrowing costs steady.

That’s despite rising energy bills, fuel and food costs squeezing businesses and households worldwide.

The International Monetary Fund is warning of a global slowdown, and no one knows how long the energy shock set off by the US-Israel war on Iran will last.

The impact will be felt hardest in emerging markets and developing nations. Central banks face a tough choice: fight rising prices or support a weakening economy.

Brent crude rises amid clashes in critical waterway.

Oil prices have jumped after clashes between United States and Iran in the Strait of Hormuz pushed their tenuous ceasefire to the brink.

Futures for Brent crude rose as much as 7.5 percent during a volatile trading session on Thursday, before easing as Asia’s markets opened on Friday morning.

The international benchmark stood at $101.12 per barrel as of 03:00 GMT, down from the day’s high of $103.70.

The latest rise came after the US and Iran exchanged fire in the critical strait, a conduit for about one-fifth of global oil and natural gas supplies, despite the truce announced between the sides on April 7.

US Central Command (CENTCOM) said it launched strikes on Iran after three US Navy guided-missile destroyers came under attack from Iranian missiles, drones and small boats in the strait.

Iran’s Khatam al-Anbiya Central Headquarters earlier accused the US of violating the ceasefire by attacking an Iranian oil tanker and another vessel in the vicinity of the waterway.

The Iranian military headquarters also accused the US of targeting civilian areas, including Qeshm Island.

US President Donald Trump on Thursday appeared to downplay the clashes, saying the ceasefire remained in effect, while Iran’s state-run Press TV said the situation had gone “back to normal”.

Shipping in the strait has been at a near standstill since late February amid the threat of Iranian attacks on the massive oil tankers that usually transport much of the world’s energy supplies.

Brent prices are up about 40 percent compared with before the war amid an estimated shortfall in daily production of 14.5 million barrels.

Asian stock markets opened lower on Friday amid the heightened tensions, with Japan’s benchmark Nikkei 225, South Korea’s KOSPI and Hong Kong’s Hang Seng Index each falling more than 1 percent.

On Wall Street, the benchmark S&P 500 fell about 0.4 percent overnight after hitting an all-time high the previous day.

Ministry of Commerce says sanctions against refineries accused of importing Iranian oil violate international law.

China has announced an injunction to block US sanctions placed on five Chinese refiners accused ‌of buying oil from Iran.

The sanctions announced by the United States Department of the Treasury late last month bar the companies from the US financial system and seek to penalise anyone doing business with the firms.

In a statement on Saturday, China’s Ministry of Commerce said the sanctions “improperly” restrict business between Chinese enterprises and third countries “in violation of international law and the basic norms governing international relations”.

The Commerce Ministry said it had issued a “prohibition order” stipulating that the sanctions “shall not be recognized, enforced, or complied with” to “safeguard national sovereignty, security, and development interests”.

“The Chinese government has consistently opposed unilateral sanctions that lack UN authorisation and basis in international law,” the ministry added.

It said the order blocked US measures against Hengli Petrochemical (Dalian) Refinery and four other so-called “teapot” refineries: Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical and Shandong ⁠Shengxing Chemical.

Announcing the sanctions on April 24, the US Treasury Department called Hengli “one of Tehran’s most valued customers”, saying it had generated hundreds of millions of dollars in revenue for the Iranian military through crude oil purchases.

The Trump administration imposed sanctions on the other four refineries named by the Chinese ministry, among other facilities, last year.

China gets more than half of its oil from the Middle East, much of it from Iran.

According to commodities data firm Kpler, China bought more than 80 percent of the oil Iran shipped in 2025.

China’s “teapot” refineries operate independently and are generally smaller than the facilities run by state-owned oil giants, such as Sinopec.

The facilities, which have been crucial to China’s efforts to secure its oil supplies, capitalise on heavily discounted crude sold by countries under sanctions, such as Iran, Russia and Venezuela.

Teapots account for a quarter of Chinese ⁠refinery capacity, operate with narrow and sometimes negative margins, and have been squeezed recently by tepid domestic demand.

US sanctions have created additional hurdles for refiners, including difficulties selling refined products under their correct place-of-origin markings.

Mukalla, Yemen – At the Mukalla Creative Hub, a man in a black T-shirt leans over a desk to help a colleague with his project, while other men remain fixed on their laptop screens. Nearby women sit in ergonomic office chairs, writing or scrolling on their phones. On the other side of the space in Yemen’s coastal city of Mukalla, a sleek cafe-style counter stands at the entrance, while colourful armchairs are neatly arranged and occupied by a few people working among rows of computers.

What draws entrepreneurs, remote freelancers, and students here is not just the stylish setting or uninterrupted electricity, but something far more essential: fast, reliable Starlink satellite internet.

“Four Starlink devices power the space, delivering speeds of 100 to 150 Mbps and allowing users to stay constantly connected,” Hamzah Bakhdar, a digital freelancer who also works at the hub, told Al Jazeera.

In a country where war has devastated telecommunications, eroded salaries and cut off remote areas, Starlink is helping create a small but growing digital workforce of designers, developers, teachers, and freelancers who can now work for clients abroad and earn far more than Yemen’s crumbling local economy would otherwise allow.

Internet access in Yemen has also been weaponised, with buried land cables sometimes cut, leaving parts of the country abruptly disconnected. The Houthi rebels, who are based in the Yemeni capital Sanaa and have fought the internationally recognised government since 2014, control the country’s major internet providers. That allows them to block websites they view as linked to their opponents inside and outside the country, including key platforms used by tech developers and remote workers.

The arrival of Starlink satellite internet has provided an alternative, allowing people to bypass the Houthis’ tight grip on telecommunications and stay online even in remote areas.

Mohammed Helmi, a video editor and motion graphics designer, was juggling projects for three clients in Yemen, Saudi Arabia and the United States. Thanks to the fast internet at the cafe, he no longer worries about losing connection or missing deadlines, problems he said repeatedly disrupted his work in the past.

“In the past, when I downloaded files to my laptop, it would stop as soon as my data ran out,” Helmi, a young man with a thin moustache, told Al Jazeera at the cafe. “I had to buy another gigabyte and start the download all over again. Because of this, I often had to turn down projects.”

Control over the internet

Starlink is operated by billionaire Elon Musk’s SpaceX company, and delivers internet by linking a ground dish to low-orbit satellites owned and operated by the company.

While other satellite internet companies exist, and others are quickly entering the space, Starlink is the only low-orbit satellite internet service legally available in Yemen after the internationally recognised government signed an agreement with the company in September 2024.

But it’s not for everyone.

The kits cost about $500, a price that remains unaffordable for the vast majority of Yemenis, living in one of the poorest countries in the world, where more than 80 percent of people live below the poverty line.

Owning a dish is therefore still a distant dream for many Yemenis desperate to get online.

University students, like Mariam, a student at Hadramout University, says that even buying internet vouchers from local providers who resell Starlink access is beyond her reach – let alone purchasing a device herself.

“People are using vouchers because they cannot afford Starlink devices, whose prices are very high,” Mariam, who preferred to be identified only by her first name, told Al Jazeera.

The Houthis have also reacted aggressively to the arrival of Starlink, launching a campaign warning people against using the service and threatening legal action against anyone found in possession of the device.

They have accused the company of serving as a “US espionage agent” and said it posed “a major threat to national security”. Experts have worried that data gathered over Starlink’s internet service could be used for “intelligence gathering and economic exploitation“.

There are also concerns internationally over the concentration of satellite internet services and infrastructure in the hands of Starlink, particularly in light of Musk’s ownership, with the South African-born billionaire increasingly associating himself with far-right causes in the United States and Europe.

Connecting Yemen’s remote areas

But despite Houthi threats and the high cost of the devices by Yemeni standards, Starlink has spread across the country, reaching areas that had long been isolated.

Omer Banabelah, a mobile app developer, said that before Starlink arrived, a visit to his home village in Hadramout’s countryside meant disappearing from the digital world altogether. He could not make a phone call, let alone connect to the internet, leaving him anxious that clients would move on when their messages went unanswered. With Starlink now available in rural parts of the province, Banabelah said he no longer fears losing work every time he travels.

“I can reply to their messages anytime, from anywhere,” he told Al Jazeera. “Work that takes 10 minutes with Starlink could take an entire day without it.”

Similarly, Yemeni teachers, struggling with poor and delayed salaries that have stagnated for years, have also benefited from the spread of the internet service, which has allowed them to offer uninterrupted online classes and earn badly needed extra income.

Raja al-Dubae, a school director in Taiz, told Al Jazeera that her school began offering online classes based on the Yemeni curriculum to Yemeni students living abroad in the United Arab Emirates, Saudi Arabia, Egypt and China in 2023. It started with just 50 students, with teachers connecting through local networks.

But when internet traffic surged in the densely populated city each afternoon, the connections would collapse, forcing teachers to abandon classes mid-session.

“Teachers were often disconnected from their students, and by the time the internet stabilised, the next class had already begun, leaving them frustrated and unable to finish their lessons,” she said.

Al-Dubae said she initially rejected her nephew’s proposal to buy Starlink because of the high upfront cost, but now regrets the delay. Since installing the service, the number of students has climbed to more than 200, revenues have grown, and teachers have begun earning better additional pay.

“With Starlink, the internet is very fast and reaches every corner of the school,” she said. “Teachers no longer disconnect from their students. I never imagined it would make such a difference. Videos load quickly, we no longer turn away new applicants, and our reputation for fast internet has spread.”

For Yemenis who have grown used to Starlink’s high-speed internet, and the better incomes and business opportunities it has helped create, the worst-case scenario is a return to the slow, unreliable service of local networks.

“Go back to the headache of local networks? Perish the thought. We hope the service will continue to improve,” al-Dubae said, scoffing at the idea of reverting to local internet providers.

Helmi reacted similarly. “If Starlink were cut off, I would be devastated and forced back into the local market, which cannot cover my expenses or living costs,” he said, shifting in his seat and smiling at the thought. “I would need to take on three or four jobs just to match what I earn from a single project from abroad.”

Seoul – Shekinah Yawra had no other option but to spend the night at a South Korean jjimjilbang, a 24-hour bathhouse, after every hotel near central Seoul sold out in late March.

But sleep was secondary for the 32-year-old Filipino who had made her way to Seoul’s Gwanghwamun Square at 7am to secure a spot in a crowd that city officials estimated would grow to hundreds of thousands.

All this was for a glimpse at the seven-member K-pop supergroup BTS, who returned to the stage on March 21 after almost four years away from the limelight for their staggered, mandatory military service.

Though she failed to secure one of 22,000 free tickets for BTS’s first return concert in the square, Yawra was still ecstatic to stand on the sidelines and watch the concert live on a big screen set up for the occasion.

“We all came just for this,” she told Al Jazeera, recounting how friends had flown in from the Philippines for a single night to catch the concert.

Worldwide, more than 18.4 million viewers tuned in for the Netflix livestream of the concert.

With an estimated 30 million fans worldwide – who refer to themselves as the BTS ARMY – the K-pop group is the most visible symbol of “Hallyu”, or the “Korean Wave”, and the global surge of interest in South Korean popular culture and the financial revenues being generated as a result.

In late March, BTS’s 10th studio album, Arirang, topped the charts in the United States, Japan and the United Kingdom, the world’s three largest music markets. The group’s upcoming world tour is expected to generate more than $1.4bn in revenue across more than 80 shows in 23 countries.

Domestically, inbound tourist numbers for the first 18 days of March rose 32.7 percent from the previous month, according to Ministry of Justice data, as the return concert approached and hotel prices surged across central Seoul amid the demand for rooms.

In the week leading up to the concert, sales of BTS merchandise – from BTS glow sticks to blankets – surged 430 percent at the Shinsegae Duty Free retail outlet in central Seoul, the company said.

Over the concert weekend, revenues also rose 30 percent at the city’s Lotte Department Store and 48 percent at Shinsegae overall, compared with the same March weekend a year earlier, in 2025.

As far back as 2022, the Korea Culture and Tourism Institute (KCTI) – a government-sponsored think tank and research organisation – estimated that a single BTS concert in Seoul could generate up to 1.2 trillion won ($798m) in overall economic impact.

KCTI researcher Yang Ji-hoon told Al Jazeera that a sample study of the crowd at the BTS comeback event at Gwanghwamun Square highlighted the uniqueness of fandom-driven tourism. More than half of those at the concert were foreign visitors and many required long-haul travel to attend.

“In Europe and the United States, travel tends to be concentrated within its own regions,” Yang said.

“So, for people to overcome such travel barriers and come to South Korea, it usually requires more than just ordinary motivation or typical spending – it’s not something that happens easily,” he said.

K-pop’s transition to the global mainstream

The scale of BTS’s return to the entertainment world reflects a broader state-backed strategy.

When music promoter Hybe requested Seoul city support for the Gwanghwamun square comeback concert, authorities approved it on public-interest grounds, treating the event as a showcase of national cultural influence.

Almost befitting an official event, more than 10,000 state personnel were deployed for security, logistics and crowd control.

According to data retrieved by South Korean publication Sisain, through a public information disclosure request to the Seoul government, close to 130 million won ($87,400) of city funds were spent as part of logistics for the comeback concert.

South Korean government support for BTS has a precedent.

As members of the boyband approached South Korea’s mandatory military service age, policymakers debated special exemptions for members of BTS, which was estimated to have generated $4.65bn annually to the country’s economy.

After BTS’s forthcoming concerts in Mexico City sold out in just 37 minutes, Mexican President Claudia Sheinbaum urged South Korea’s President Lee Jae Myung to “bring the acclaimed K-pop artists more often”, noting nearly one million fans in Mexico had attempted to secure 150,000 tickets.

South Korea’s cultural influence is also extending beyond music.

South Korea’s cosmetics exports surpassed $11bn last year, according to global accountancy firm PricewaterhouseCoopers (PwC), overtaking France in cosmetics shipments to the US, while South Korean food and agricultural exports reached a record $13.6bn, according to data from the Ministry of Agriculture, Food and Rural Affairs.

KCTI researcher Yang described the growing interest as a phase of “transition to the global mainstream”, where South Korean products are internationally recognised and content output is measured against worldwide benchmarks such as the Billboard charts and the Academy Awards.

He also warned that structural reform is now essential to keep pace with the wave of interest in South Korea.

“As the industries expand in scale, they must also evolve in its underlying systems, infrastructure, and workforce,” he said.

“Rather than focusing solely on direct financial support, future governmental policies should move toward strengthening foundational conditions – such as improving labour environments, addressing unfair practices, building relevant infrastructure, and establishing more robust statistical and data systems,” he said.

Politicians appear to be paying attention.

During his election campaign last year, President Lee framed the next phase of cultural expansion as “Hallyu (Korean Wave) 4.0”, with promises to grow the sector into a 300 trillion won ($203bn) industry with 50 trillion won ($34bn) in exports.

In line with this vision, the government set the budget to bolster “K-content”, support the “pure” arts sector and strengthen the overall culture-related fields at a record 9.6 trillion won ($6.5bn) — reflecting the president’s view of the cultural sector as a strategic national industry rather than merely a consumer market.

South Korea’s strategy appears to be paying off.

South Korea now ranks 11th globally in “soft power”, according to Brand Finance’s Global Soft Power Index, placing the country as both “influential in arts and entertainment” and “products and brands the world loves”, just behind the US, France, the United Kingdom and Japan.

The darker side of K-pop: Pressure to become a perfect idol

Amid its global success, the darker side of the K-culture industry has received more scrutiny.

Mega-promoter Hybe has been embroiled in a prolonged dispute with K-pop’s New Jeans, a band considered to be a potential heir to BTS and their all-female colleagues Blackpink. The highly public legal dispute that started in 2024 highlights industry tensions over creative control and artist autonomy.

Since the early 2000s, K-pop has also grappled with the legacy of “slave contracts”, or highly restrictive agreements limiting artists’ freedom. Although reforms by the Fair Trade Commission have improved protections for performers, contractual obligations in the K-pop industry are exacting on new performers and their strict work routines have long been documented.

From their trainee years, aspiring idols endure gruelling schedules that involve long workdays and little sleep.

Many top stars often face contractual restrictions on socialising, using their phones or dating. They are also typically limited in what they can say publicly, relying on agency-managed messaging to communicate with fans and the media.

While the rise of social media and other online platforms has opened new avenues for more direct expression and interaction in recent years, concerns over burnout and depression have continued to shadow the industry, with several high-profile stars taking their own lives.

Beauty standards associated with the K-culture genre have also become another flashpoint for controversy.

A 2024 report by South Korean economy news site Uppity found 98 percent of 1,283 respondents born between 1980 and 2000 viewed physical appearance as among the most desirable “social capital” an individual can possess.

Nearly 40 percent of respondents in the survey had undergone cosmetic procedures, while more than 90 percent held neutral or positive attitudes regarding undergoing medical procedures to enhance beauty.

According to the International Society of Aesthetic Plastic Surgery, South Korea has the world’s highest rate of procedures, with 8.9 per 1,000 people compared with 5.91 per 1,000 people in the US and just 2.13 per 1,000 in neighbouring Japan.

Yoo Seung-chul, a professor of media studies at Ewha Womans University in Seoul, said that K-culture has reinforced the normalising of beauty as a significant metric of personal and social value.

“K-culture has reinforced systems and structures around self-expression,” Yoo told Al Jazeera.

“With the rise of webtoons that incorporate themes like plastic surgery, there has been a noticeable reduction in the stigma towards going under the knife among younger audiences in their teens and early twenties,” Yoo said, explaining that popular plastic surgery platforms such as Unni have further normalised the trend by connecting people to clinics and reviews of these clinics and their surgeons.

At the same time, globalisation has reshaped the K-culture industry itself. Many new K-pop acts now include international members to broaden appeal.

Hybe has expanded this strategy through its US subsidiary, Hybe America, producing globally oriented groups like Katseye, which only has one South Korean member in its six-member girl group.

The shift has prompted debate.

Even BTS’s latest album Arirang – a nod to South Korea’s most iconic folk song – has divided fans over its use of English lyrics and foreign producers.

“K-content is being designed with global audiences in mind from the outset. In film, there has been a noticeable rise in genres like horror and science fiction, which are easier to export internationally,” Yoo said.

“This global orientation is also reflected in K-pop agencies recruiting foreign members for idol groups,” he said.

But international audiences do not always prefer highly globalised versions of Korean content, Yoo said, adding, in fact, that many are drawn to K-pop’s “sense of locality”.

As audiences increasingly seek authenticity, Yoo argues the industry faces a defining challenge.

“Industries and companies need to figure out how to preserve a sense of local identity while effectively marketing to global audiences,” Yoo added.

“Striking that balance will be crucial in shaping the next phase of Korea’s cultural exports.”

Workers are gathering in cities around the world to mark International Labour Day, with some demonstrations, such as those in Istanbul, Turkiye, turning to scuffles with police.

Trade Unions are calling for solidarity and the protection of workers’ rights as the United States-Israeli war on Iran and rising energy costs raise concerns about the global economy.

“Working people refuse to pay the price for Donald Trump’s war in the Middle East,” the European Trade Union Confederation, which represents 93 trade union organisations in 41 European countries, told the media. “Today’s rallies show working people will not stand by and see their jobs and living standards destroyed.”

Josua Mata, leader of the SENTRO umbrella group of workers’ groups in the Philippines, said: “Every Filipino worker now is aware that the situation here is deeply connected to the global crisis.”

Renato Reyes, a leader of the left-wing political group Bayan in the Philippines, told The Associated Press: “There will be a louder call for higher wages and economic relief because of the unprecedented spikes in fuel prices.”

In Indonesia, Said Iqbal, president of the Indonesian Trade Union Confederation, told reporters: “Workers are already living pay cheque to pay cheque.”

Some of the largest demonstrations are being held in South America, including in Chile, Bolivia and Venezuela. In Argentina, angry workers protested on Thursday in the capital of Buenos Aires over President Javier Milei’s recent overhaul of long-held labour protections.

In Cuba, the foreign ministry held a gathering on Thursday in defiance of what it called the US’s “aggressions, threats, intensified blockade, and energy siege”.

On Friday, Cubans are expected to mark International Labour Day with a mass rally and a march in Havana.

In many countries, Labour Day rallies attract large crowds because May 1 is a public holiday. In the Turkish city of Istanbul, roads around Taksim Square were closed to make way for marches during the day. Later on Friday, demonstrators clashed with police, international media reported.

In France, where most people have the day off for May Day, workers’ unions using the slogan “bread, peace and freedom” called for protests in Paris and other cities.

Global recession fears

Fears of a global recession are looming over Labour Day rallies at a time when income inequality is growing.

In Gaza, Palestinian workers have cancelled May Day events because of the economic crisis caused by Israel’s genocidal war on Gaza and poor conditions on the ground.

The Palestinian General Federation of Trade Unions said that about 550,000 workers across Gaza and the West Bank have no income and that the situation is unprecedented.

The International Trade Union Confederation has reported that at least four CEOs of major corporations each pocketed more than $100m in pay and bonuses last year, while many workers are facing potential job cuts.

Workers’ rights coalitions are calling for urgent action to curb extreme wealth. They want governments to impose higher, fairer taxes on the wealthiest and limit excessive executive pay.

While Labour Day began in the US, when workers protested for an eight-hour workday in the 1880s, the US does not count May Day as a public holiday.

However, an umbrella group of activist and workers’ groups known as May Day Strong has called for protests under the slogan, “workers over billionaires”. Hundreds of demonstrations and marches have been planned across the US.

More commercial flights have been departing from Iran’s largest airport following its reopening last week.

Iranian authorities announced the resumption of flights at Imam Khomeini international airport after approximately 58 days of suspension since the launch of the US-Israel war on Iran. Flight information boards also went offline after the closure of Iran’s airspace.

For weeks, the suspension of flights stranded many travellers, disrupted businesses, and separated families.

Air traffic gradually resumed from April 25 with flights to 15 destinations operated by eight domestic airlines, covering regional and international destinations such as Medina, Istanbul, Muscat, China and Russia. Yet the number of flights is a fraction of what it was before the war.

Maryam, a passenger who planned to go to Toronto to see her daughters, told Al Jazeera: “After a lot of stress and problems, now I’ve found a ticket with an Iranian airline — flying first to Armenia with a long layover, and then on to Canada.”

Before the war, the airport was bustling with travellers and would witness 150 flights on a typical day. Now, terminals that were packed, then empty, are slowly filling up again as flights resume.

Ramin Kashef Azar, CEO of Imam Khomeini Airport City, told Al Jazeera that the return of foreign carriers, many of which have operated in the country for years, “will depend on political stability and their own risk assessments.” According to the Iranian Civil Aviation Organization, 20 aircraft have been destroyed and are no longer operational. However, the airport infrastructure has not been damaged and is approximately 95 percent ready.

These developments come after Iran’s gradual reopening of its airspace from April 19, in four phases. It encompasses transit flights followed by domestic flights, culminating in the full resumption of operations at international airports, as stated by the Iranian aviation regulator.

Foreign companies are apprehensive about returning to operate at Iranian airports amid the uncertainty surrounding the political and negotiating landscape between Tehran and Washington.

Targeting of airports

Iran’s civil aviation sector has suffered damage as a result of the war. More than 3,300 people have been killed in Iran, and thousands have been injured, in addition to widespread destruction of civilian infrastructure.

Another airport that was subject to US-Israel attacks several times was Mehrabad airport, also in Tehran. The airport mainly handles domestic flights. Located in the west of the capital, it was the official airport for international and domestic flights before the construction of Imam Khomeini airport in 2009.

In addition to Mehrabad, airports in Kashan, Tabriz, Ahvaz, Mashhad, Khoy and Urmia were also targeted. Several civilian aircraft have been damaged.

It is not the first time Mehrabad Airport has been attacked. In June 2025, it was reported that Israel targeted Mehrabad airport during the 12-day war. Iranian authorities, however, said the airport and its runways escaped damage.

The impact of the war goes beyond airports. It has affected other businesses, causing revenue losses, layoffs and operational disruptions.

Babak, a tour guide, said he and many of his colleagues lost their jobs “because there were no incoming or outgoing tours, as flights were suspended and the war was ongoing”.

Nowruz, the Persian New Year, which comes with a peak aviation season for Iranian airports, also witnessed flight suspensions and caused major disruption. According to Bijan, a travel agent, this affected tours, charter flights, and hotel bookings. He added that they are processing refunds and had to cut staffing from 20 to just two.

Airports are coming back to life, and passengers are returning, hinting at a fragile normalcy after weeks of silence. Each departure signals renewed connection with the world, even as uncertainty on the ground endures.

American Airlines has resumed flights as Donald Trump moves to rebuild ties following the abduction of Nicolas Maduro.

The first direct commercial flight between the United States and Venezuela has landed in Caracas, ending a seven-year suspension imposed by the US Department of Homeland Security over security concerns.

Flight AA3599, operated by Envoy Air, a regional subsidiary of American Airlines, departed Miami at 10:11am ET (14:11 GMT) on Thursday, five minutes ahead of schedule, according to airport data.

It arrived in the Venezuelan capital roughly three hours later and was due to return to Florida later in the day. Earlier, the airline said that a second daily flight between Miami and Caracas would start on May 21.

The return of nonstop flights comes months after a dramatic shift in US-Venezuela relations, following Washington’s January operation that led to the abduction of former President Nicolas Maduro, and marks the first direct air link between the two countries since diplomatic ties were severed in 2019. For years, travellers had used indirect routes through other Latin American hubs.

Translation: “For nearly seven years, there were no direct commercial flights between the United States and Venezuela. Under President Trump, we are changing that today. Flights between Miami and Caracas have resumed,” The US State Department posted on X. 

Coffee and arepas in the aeroplane

At Miami International Airport, American Airlines marked the occasion with a small ceremony, decorating the departure gate with Venezuelan flags and balloon displays in the country’s yellow, blue and red colours.

Passengers were served coffee and arepas, a traditional Venezuelan dish, on board the flight.

Thursday’s service was operated by an Embraer E175 regional jet with a capacity for about 75 passengers.

US Transportation Secretary Sean P Duffy said the flight signalled more than the return of an air route.

“Today is about more than just another flight, it’s a critical milestone in strengthening the United States relationship with Venezuela and unleashing economic opportunity in both countries,” Duffy added.

He added that the resumption followed extensive work by the department and praised American Airlines for restoring a route he described as vital, saying more flights are expected in the coming months.

High ticket prices

Despite the celebratory mood, high ticket prices remain a key barrier, alongside strict US visa requirements that have left many potential travellers without the documentation needed to fly.

Recent searches on the airline’s website show return fares for early May starting at more than $1,200, before dropping to just more than $1,000 later in the month, suggesting prices may ease as services expand.

By comparison, flights via Bogota typically range from $390 to $900 round-trip, with Avianca among the main carriers.

American Airlines was the last US carrier operating in Venezuela before suspending flights in 2019, while Delta and United had already withdrawn in 2017 amid a deepening political crisis that drove millions to leave the country.

“Parents will be able to reconnect with children, grandparents with grandchildren, and families with the place they once called home,” Miami-Dade County Mayor Daniella Levine Cava said before the departure. “Miami-Dade is home to the largest Venezuelan community in the United States.”

Islamabad, Pakistan – Pakistan has opened six overland transit routes for goods destined for Iran, formalising a road corridor through its territory as thousands of containers remain stranded at Karachi port because of the United States blockade of Iranian ports and ships trying to pass through the Strait of Hormuz.

The Ministry of Commerce issued the Transit of Goods through Territory of Pakistan Order 2026 on April 25, bringing it into immediate effect. The order allows goods originating from third countries to be transported through Pakistan and delivered to Iran by road.

The announcement coincided with Iranian Foreign Minister Abbas Araghchi’s visit to Islamabad for talks with Prime Minister Shehbaz Sharif and army chief Asim Munir, the latest in a series of diplomatic engagements as Pakistan seeks to mediate an end to the two-month war between Washington and Tehran.

Federal Minister for Commerce Jam Kamal Khan described the initiative as “a significant step toward promoting regional trade and enhancing Pakistan’s role as a key trade corridor”.

Iran has not publicly commented on the move, and Al Jazeera’s query to the Iranian embassy in Islamabad went unanswered.

The notification does not extend to Indian-origin goods. A separate Commerce Ministry order issued in May 2025, following the India-Pakistan aerial war that month, bans the transit of goods from India through Pakistan by any mode and remains in force.

Routes and regulations

The six designated routes link Pakistan’s main ports, Karachi, Port Qasim and Gwadar, with two Iranian border crossings, Gabd and Taftan, passing through Balochistan via Turbat, Panjgur, Khuzdar, Quetta and Dalbandin.

The shortest route, the Gwadar-Gabd corridor, reduces travel time to the Iranian border to between two and three hours, compared with the 16 to 18 hours it takes from Karachi – Pakistan’s biggest port – to the Iranian border. The Gwadar-Gabd route could cut transport costs by 45 to 55 percent compared with costs from Karachi port, according to officials.

But for Iran, firms sending their goods to the country, and transporters, all routes into Iranian territory today are viable options, with the principal maritime passage they have traditionally used – the Strait of Hormuz – blockaded by the US Navy.

Corridor shaped by conflict

The current US-Iran war began on February 28, when US and Israeli forces launched attacks on Iran.

In the weeks that followed, Iran restricted commercial navigation through the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil and gas passes during peacetime, disrupting one of the most critical arteries of global trade.

Pakistan brokered a ceasefire on April 8 and hosted the first round of direct US-Iran talks on April 11, in Islamabad. The negotiations lasted nearly a day but ended without a deal. Two days later, Washington imposed a naval blockade on Iranian ports, throttling Tehran’s maritime access.

A second round of talks has since stalled. US President Donald Trump cancelled a planned visit to Islamabad by special envoys Steve Witkoff and Jared Kushner last weekend.

Iran has ruled out direct negotiations with Washington while the blockade remains in place, though Araghchi told Pakistani officials that Tehran would continue engaging with Islamabad’s mediation efforts “until a result is achieved”.

The transit order appears to be a direct economic response to that impasse.

More than 3,000 containers destined for Iran have been stuck at Karachi port for several days, with vessels unable to collect the cargo. War-risk insurance premiums have surged from about 0.12 percent of a vessel’s value before the conflict to roughly 5 percent, making shipping to the region too expensive for many operators.

Shifting regional dynamics

The corridor also signals a shift away from Afghanistan, whose relations with Pakistan have deteriorated sharply.

The two sides engaged in clashes in October 2025 and again in February and March this year, with skirmishes continuing along the northwestern and southwestern borders.

The Torkham and Chaman crossings have ceased to function as reliable commercial routes since tensions escalated, limiting Pakistan’s overland access to Central Asian markets.

“This is a paradigmatic shift. Pakistan’s relations with the Afghan Taliban, the de facto rulers in Kabul, have no reset switch,” Iftikhar Firdous, cofounder of The Khorasan Diary, told Al Jazeera.

“Kabul has been diversifying away from Pakistan towards Iran and Central Asia, but this move flips the equation. Pakistan can now bypass Afghanistan entirely for westbound trade. The impact on Kabul’s transit relevance and revenue is strategic, not immediate – but it is real.”

Firdous said the implications extend beyond bilateral ties.

“This corridor also reduces Pakistan’s reliance on longer maritime routes through the Gulf. Geopolitics, security, and infrastructure will ultimately determine which corridors dominate, but it places Pakistan as the main overland gateway for China-backed trade routes into West Asia and beyond,” he said.

Minhas Majeed Marwat, a Peshawar-based academic and geopolitical analyst, urged caution. “A cornered Afghanistan is a destabilised Afghanistan, and Pakistan knows better than most what that costs,” she wrote on X on April 27.

“The opportunity here is real. So is the risk. Security on the northwestern and southwestern borders remains the variable that could unravel everything. Pakistan is positioned well. It is not yet positioned safely. Those are different things.”

Canadian Prime Minister Mark Carney took office last year amid a flurry of aggressive actions by his country’s southern neighbour. A recently sworn-in United States president, Donald Trump, slapped tariffs on Canadian exports and threatened to make the US neighbour the 51st state.

The actions were particularly damning as Canada had deep trade and security ties with the US, not only sending nearly 80 percent of its exports to that market, but also often following lockstep on geopolitical policy and strategic moves.

All that was thrown aside when Trump took office, and Canada, under former Prime Minister Justin Trudeau, was one of the first countries he slapped with tariffs.

After a year of dealing with a mercurial and unpredictable US president, experts applaud Carney as “standing strong and resolute”, not just in the face of Trump’s threats, but also against internal critics.

“The most notable aspect of the last year was both a bullet dodged and a savvy bit of statecraft to avoid a rush to do a deal on trade and invest with the US the way many other countries did,” said Brett House, a senior fellow at the University of Toronto’s Munk School of Global Affairs & Public Policy.

“Commitments from this president are absolutely worthless, and the biggest accomplishment of the first year has been standing strong and resolute in the face of internal critics,” House told Al Jazeera.

Indeed, Carney has used Trump’s attacks on allies and others to refocus Canada’s foreign policy and place in the world.

With the US no longer the anchor of a rules-based order, and with there now being a “deep rupture” caused by changes in Washington, “Carney has aimed to build at home and diversify abroad, as Ottawa’s dependence and long ties have now become a source of weakness,” said Vina Nadjibulla, the vice president of the Asia Pacific Foundation of Canada.

“And he’s doing this at a speed, scale and ambition that we haven’t seen in recent years” in Ottawa, Nadjibulla said.

‘Rupture’ in global order

Some of that stance was evident in January, when Carney, in a speech in Davos, said there was a “rupture” in the global rules-based order and that Middle Powers like Canada and others had to rise strategically to address geopolitical tensions.

But it was visible in his actions even before Davos, when he had reached out to countries that had historically been important trade partners but where relations had been frozen due to political tensions under his predecessor, Trudeau.

For instance, Carney invited Indian Prime Minister Narendra Modi to the G7 meeting in Canada to initiate a reset of ties with New Delhi that had been in a deep freeze since Trudeau alleged in 2023 that India was involved in the killing of a Sikh separatist activist on Canadian soil.

Carney also recalibrated Canada’s relations with China, which had been tense since Canadian authorities arrested a key official of Chinese telecommunications firm Huawei as she was transitioning through the Vancouver international airport in December 2018. China retaliated against the arrest of Meng Wanzhou, which was carried out at the request of US authorities, by detaining two Canadians.

Carney has also deepened relations with Japan, South Korea, Australia, and others, making sure to align on security and economic issues, and has drawn Canada closer to Europe, Nadjibulla pointed out.

Domestic push

In the lead-up to elections last year, Carney “positioned himself as a centrist, a moderate, and went to great lengths to distance himself from the image of Justin Trudeau,” said Sanjay Jeram, the chair of the political science department at Simon Fraser University in Burnaby, Canada.

“He hasn’t shown much interest in discussing things outside the economy, international relations and trade, and even when asked, has avoided those questions and steered the conversation back to what he believes is his true purpose. Or that could be his political strategy, or a bit of both.”

Under that pragmatist persona, “Carney takes the world and the economy as it is, rather than what we hope it to be”, which allows him to be judged on pragmatist metrics, Jeram said, referring to criticisms that Carney is overlooking concerns related to political interference or human rights in his dealings with foreign partners.

“Canadians have bought that [stance] so far,” Jeram added.

Indeed, Carney’s approval ratings are up. According to a March Ipsos poll for Global News, 58 percent of Canadians approve of him, up 10 percent from a year before, while 33 percent do not.

While there has also been significant movement on paper to remove federal barriers to facilitate business and trade within the country, there have also been concerns about certain policy pushes. A major projects bill, for instance, is meant to fast-track big infrastructure projects, but critics are concerned that it undermines the importance of consultation, especially with the Indigenous communities whose land these projects could go through.

“Carney recognises we need more of infrastructure to be able to diversify trade,” the Asia Pacific Foundation’s Nadjibulla said.

As he settles into his second year, Carney’s main challenge will be to see if he can deliver on his first-year announcements.

One of his biggest challenges this year will be a successful conclusion of the review of the trade pact between the US, Canada and Mexico, known as the USMCA, which starts on July 1 and which has helped shield Canadian exports from US tariffs.

The “US has signalled that a successful review could hinge on Canada lining its external tariffs in line with US tariffs, but that’s at cross purposes with Canada’s efforts”, said the University of Toronto’s House, especially as Canada has lined up deals with China on electric cars and agriculture.

Nadjibulla added that “2026 will be harder, because it will be about implementation and delivery, especially against the US-Canada dynamics.”