Business and Economy

Prices spiked as attacks on oil tankers escalated in the Middle East.

Oil prices have increased by four percent, with benchmark Brent crude hitting $105 a barrel after the biggest rise in attacks on shipping since the Iran war began spurred trader concerns about further supply disruptions.

Brent crude futures were up $4.05, or four percent, at $105.26 a barrel by 1215 GMT on Thursday. United States oil topped $100 a barrel for the first time since May, as West Texas Intermediate crude futures CLc1 rose $3.99, or 4.15 percent, to $100.04.

Brent prices have surged by more than 30 percent from lows touched in early August, as a permanent agreement between the US and Iran to cease attacks never materialised and fighting resumed.

Iran-aligned Houthis seized control of Yemen’s port of Mocha on Thursday, further threatening Red Sea traffic, while Gulf traffic remains restricted through the Strait of Hormuz as tanker attacks in the region have intensified in recent days.

“The recent run-up in prices lays bare the market’s approach: this conflict will last longer than anticipated even a month ago, let alone at the beginning of the summer. If oil supply and exports are diminished, the oil balance remains tight and prices remain elevated,” PVM analyst John Evans said.

Iran said it had attacked 10 ships near the Strait of Hormuz on Wednesday, after the US hit five Iranian oil tankers. Iran’s Islamic Revolutionary Guard Corps said it would escalate its response to any further attacks.

While fears of prolonged and more severe supply disruptions in the Gulf have lifted Brent above $100, analysts say the durability of the rally will hinge on China.

Chinese demand

China, the world’s largest crude importer, has stepped up purchases in recent weeks after months of subdued demand, boosting physical crude markets, ING analysts said in a note.

If Chinese buying continues to recover, it could amplify the impact of any supply disruptions and drive prices higher, while a pullback in imports could temper market gains, ING said.

“For months, the bearish case rested on soft Chinese demand,” said David Jorbenaze, global oil market lead at commodities information provider, ICIS.

Rising oil prices have worsened worries about inflation and cranked up pressure within the bond market, helping to lower stocks again on Wall Street.

The S&P 500 fell 0.6 percent and is on track for a fourth straight loss.

The increase in oil prices has pushed the price for a gallon of regular petrol to an average of nearly $4.28 across the US, according to the American Automobile Association. That is not only costing more at the pump but also through higher prices for all kinds of products that move by truck to store shelves.

Following Thursday’s reports, traders are betting on a close to 70 percent chance the Fed will raise the federal funds rate at its meeting next week. That’s up from the 61 percent probability seen the day before, according to data from CME Group. That’s also despite President Donald Trump’s consistent lobbying for interest rates to go lower rather than higher.

Bettiah, India – Neyaz Miya was adjusting a kitchen handle. Mehadi Hassan was fixing a bracket for a bed.

They were at different construction sites – Miya in a half‑constructed home, a little higher up the hill, while Hassan was on the ground floor of Ganesh Hotel, closer to the Trishuli River that flowed through Syafrubesi, a bustling market town near the Nepal‑Tibet border, now wiped off the map by the August 26 flash floods.

More than 1,200 bodies have been recovered since then, at least 4,000 people remain missing, and more than 13,000 have been rescued.

“First came the terrifying loud sound. Then the ground trembled, and dark clouds descended upon us,” recalls 34‑year‑old Miya, who ran further up the hill with his phone and slippers that morning, five or six others running alongside him.

Hassan, lower on the slope, did not wait to reach for his slippers or his phone. He just ran, climbing a narrow, stair‑like path, up the hill, stopping only when he reached roughly 60 metres (200ft) above the road.

At some point, Miya and Hassan found each other. Around them were 60 to 70 other survivors who had also gathered high up on the hill.

A decade earlier, Miya had arrived in Syafrubesi as a carpenter. Three years later, he brought Hassan with him – both men from Bihar’s Bettiah district. Over the years, they built the town’s interiors – sofas, beds, almirahs, and kitchens for hotels and homes.

On that Wednesday morning, they watched all of that washed away. The multi‑storey hotels where they had worked – Red Panda, Garden Hotel, Buddha Hotel, Sunrise Hotel – were all swallowed by the flood.

“The town was gone in a blink,” Miya recounts, now sitting in his home in Turhapatti village of Bihar, India, just across the Nepal border. “There were only three kinds of people who survived that day: Those who were out of town, those who were at work and managed to run, and those who lived a little higher up the hill.”

Based on what he witnessed, Miya says only a few hundred people in Syafrubesi, a town that had a population of 2,271 in the 2011 census, likely survived.

Miya and Hasan are among them. Three of their close friends and colleagues, also migrant workers from Bihar, are not.

A workday like no other

When the floods reached Syafrubesi, the men were already at work: Their shifts began at seven in the morning.

“To start at seven, we would wake up at four or five,” Miya recalls. They would leave with empty stomachs and were fed tea with doughnuts or biscuits at the construction site by building owners. Their first break came at 11am, when they returned to the rented one‑room space (3,500 Nepali rupees or $23 a month) that housed five to seven migrants at a time.

On the morning of August 26, they left for work alongside 34‑year‑old Arman Ansari, 20‑year‑old Samir Ansari, and 52‑year‑old Mukhtar Ansari, all migrants from Miya’s Turhapatti village.

In the rented room, two teenage boys, Arman’s 14‑year‑old son, Salman Alam, and his friend Shibu Alam, 17, remained asleep. They had come a month earlier to visit the hills.

“My father had cooked meat bhaat (rice with meat),” Salman recounts. He was waiting for his father to return at 11am so they could eat together.

Arman, his father, was working beside Hassan on the ground floor, pasting sunmica onto the same bed. Samir and Mukhtar were on the top floor of the Full Moon Hotel.

When Hassan ran out of the under-construction building and up the hill, he believed Arman was behind him. But by the time Hassan and Miya met higher up, there was no sign of the other three: Arman, Samir and Mukhtar.

Miya and Hassan found the boys, Salman and Shibu, terrified, on the hill. “Salman was crying, howling and searching for his father,” Hassan said.

The flood, which came with a high speed, took half an hour to recede. Soon, helicopters started hovering above them, airlifting the critically injured.

The four of them – Miya, Hassan and the boys – walked down the hill on foot to search for the three missing in the debris. They found nothing but sludge. Miya’s furniture-cutting tools and machines, worth 80,000 Nepali rupees ($530), were buried in the debris.

When they got back to their room, perched high on a slope, they found that it had survived.

But the army had taken charge, and soldiers herded survivors away from tenements near the river. “They said it [the flood] might come again,” Miya recalls.

They slept that night in a government school building in a village, he says. “At night, we were given daal bhat (rice and daal), and we wrapped ourselves in tarpaulin and slept.”

The next morning, a helicopter took them to another village. From there, another helicopter carried them to an army compound in a town. In the evening, they teamed up with five other migrants and hired an SUV to reach Nepal’s capital Kathmandu, each paying 3,500 rupees ($23).

The next morning, on August 28, they hired another SUV, which charged them 950 rupees ($6) each for a distance of 290km (180 miles) to Birgunj, a town on the India-Nepal border. They then crossed the border on foot before boarding buses for their villages.

It wasn’t the homecoming Indian migrants who work in Nepal usually plan.

‘No regular work’ back home

Turhapatti is among thousands of villages tucked along the 1,715km (1,066-mile) stretch of the India-Nepal border, where generations have crossed back and forth in search of work.

The two countries share an open border, and on both sides, especially in Bihar, the bond is known as a roti-beti ka rishta (a relationship of food and daughters), alluding to ties of livelihoods and matrimonial kinship. People live, work, and marry across the border.

Kathmandu is as close to Turhapatti as is Patna, the capital of Bihar. Per its 2021 Population and Housing Census, Nepal had 700,000 foreign-born residents, 97 percent of them from India.

Miya and Hassan say the wages for a carpenter or a mason on the Indian side are between 600-700 rupees, while for the same work in Nepal, wages are about 900 rupees. That drives migrant workers from India over the border into Nepal.

Nepal, for its part, is facing a major out-migration crisis — its per capita income is the lowest in South Asia, barring Afghanistan, and hundreds of thousands of young men and women leave each year to find work elsewhere. This creates a demand for migrant workers from Bihar, India’s poorest state that lies just across the border.

In Turhapatti, Miya owns only 0.03 hectares (0.06 acres), not enough to feed his family of six children, wife and parents. In recent years, he transitioned from being a carpenter to a contractor, which allowed him to bring in more workers from Bihar.

He had been sending 30,000 Indian rupees ($315) back to his family every month.

Hassan has even less back home: He inherited a 6×8-metre (20×25ft) room from his father and no agricultural land. “There is no regular daily work here,” he says. He would send 15,000 Indian rupees ($157) home from Nepal each month for his wife and four children.

Their story echoes in most homes in Turhapatti. The village had a population of 16,000 people in the 2011 census, India’s latest one. In nearly every household, men have left to work in other parts of India and abroad as carpenters, masons, or labourers mixing cement and sand into mortar.

The destinations are Kashmir, where close to 700 men from the village work; Nepal, with nearly 600; and thousands scattered across Indian cities: Chennai, Kolkata, Delhi, Mumbai. About 100 men have migrated to Dubai, Oman and Saudi Arabia.

The houses they built in Turhapatti stand in stark contrast to those of those who remain in India. The marble-fronted and iron-gated homes belong to men working in the Gulf, while semi-permanent dwellings belong to those who stayed behind.

Migrants in Nepal fall in between: Miya has been able to raise a brick house.

‘My body shivers at the thought’

This economic reality is what drove Arman Ansari to Syafrubesi. On July 26, Arman left for Nepal with Samir and Mukhtar. Arman’s son and his friend Shubu went with the three adults; the teenagers were on a trip to the hills.

Now, Arman’s brother-in-law. Jameel Miya, a carpenter in Kathmandu, scours the city’s hospitals for Arman’s body, telling authorities that his brother-in-law’s right hand and chest had deep scars, cut by shards of glass when he was young.

Arman’s wife, Sahrun Khatun, has only her last phone call with Arman to hold on to. They spoke two hours before the floods swept him away. “He was about to get his wages on September 1 and return home,” she says.

Salman, who had tagged along with his father to see the hills, hasn’t been able to sleep since the flood.

“The moment I close my eyes, I feel the flood is coming for me,” he says.

Mukhtar’s family lives a few lanes away.

Since the floods, Kasmun Khatun, Mukhtar’s wife, has been glued to the internet for any news of her missing husband. Joining her in that remote search are her daughter Asmana (18) and son Sadre Alam (14).

Her eldest son, Osama, 25, a tailor in Kathmandu, has been busy searching for his father in city hospitals.

“After waiting for a week and watching the videos, I submitted my DNA samples,” he says over a phone call. Osama manages to send home 6,000 rupees ($63), but that is no longer enough – his mother needs eye surgery that has already been delayed and cannot be put off much longer.

“The guardian has gone, all of a sudden,” he says, referring to his father.

At the far edge of Turhapatti stands the home of Samir Ansari, the youngest among the missing migrants and youngest of his five migrant brothers.

The Ganesh Hotel project he was working on was only three days from completion.

“He said he found another site to work on,” recalls his father, Hasmuddin Miya, remembering their last phone call on the evening of August 25.

Samir was a mason who specialised in marble tiles, a skill he had learned in Kashmir while working under his elder brothers at construction sites.

The three families are preparing to host a bhoj, the funeral feast – a custom of feeding hundreds of people – having given up on hope.

Meanwhile, the two survivors, Miya and Hassan, are already making calls to find work again. This time, their search turns towards Nepal’s plains. They pledge never to return to the hills.

“My whole body shivers at the thought of going there,” says Hassan.

For more than a decade, governments got used to cheap borrowing. That era may now be ending.

Government bond markets are flashing warnings around the world.

Across major economies, yields – the interest rates governments pay to borrow – are climbing to levels not seen in years and, in some cases, decades.

Investors are pricing in more risk before they’ll lend to governments already carrying heavy debt loads.

Inflation remains stubborn, geopolitical tensions are adding pressure, and central banks may have to keep interest rates higher for longer.

Those higher borrowing costs are pushing up what banks charge companies and homeowners.

London, United Kingdom – In a wheat field near High Wycombe in the rolling English countryside, Alex Nelms watched the harvest on his farm die in a matter of days.

His crop had looked strong until the first heatwave came in May, when temperatures surpassed 35 degrees Celsius (95 degrees Fahrenheit) just as his milling wheat entered its grain-fill phase, the critical weeks when the plant fattens its kernels.

“It just killed everything stone dead,” he told Al Jazeera. “Everything was finished really early, and when we were sort of full of optimism and hope, it was scuppered almost overnight.”

Nelms farms just over 2,000 acres (809 hectares) of arable land in south Buckinghamshire, on a business his grandparents founded in 1955. His uncle, who has worked the farm for more than 40 years, has just suffered the worst harvest of his career.

Last month, the Department for Environment, Food and Rural Affairs (Defra) said almost three-quarters of England, 71.3 percent, remained in drought. Rainfall in August reached just 34 percent of what would normally be expected by that point in the month, Defra said, and reservoir levels were 18.2 percentage points below where they should be for the time of year.

“We’re totally reliant on Mother Nature,” Nelms said, and nature did not deliver this year.

After a historically dry spring and a run of summer heatwaves, the farm is down roughly 1,000 tonnes on its average harvest, a shortfall of some $270,000 in revenue.

The farm, tucked in the Chiltern Hills, a steep, long ridge of white limestone rock, has no irrigation and never will.

“That has serious knock-on effects on our cash flow,” he said. A third consecutive difficult year would mean hard conversations with his bank and landlord, and farming to minimise risk rather than maximise output, “consequently, probably producing less food”.

‘Financial crisis point’

The National Farmers’ Union (NFU) says farmers are at a “financial crisis point” after the worst drought in 50 years, with historically low harvests, stunted grass growth, rising fuel and fertiliser costs, and a severe outbreak of bluetongue disease in livestock.

The union puts the gross production value loss of wheat at approximately $499m and the cost of replacing a shortfall in forage at roughly $45m.

NFU president Tom Bradshaw has said farmers now lack “breathing space” and are “increasingly exposed to geopolitical shocks, as well as repeated weather extremes, animal disease and global wars”.

He believes action is needed now to ensure the future of British farming “and enable the next generation to keep producing the nation’s food”.

To manage the risk, Nelms is diversifying, planting oilseed rape again on about 350 acres (142 hectares) for the first time in 20 years. He says that the crop’s usual insecticide protection, neonicotinoid seed treatments, is now banned, leaving it exposed to cabbage stem flea beetle and to game birds that can “absolutely nibble, eat, and destroy a crop”.

Growing it also means breaking a continuous wheat rotation that has kept a soil-borne disease called “Take-all”.

Tax allowances would make investing in grain storage and diversified income worthwhile, he said, as well as government-backed bridging loans, modelled on COVID-era support, to survive a bad year without permanent damage.

It is the kind of relief the NFU is pressing the government to provide nationally.

The union wants an interest-free “Keep Britain Growing” loan tied to drought losses, help covering the cost of disposing of livestock lost to bluetongue, faster planning permission for on-farm reservoirs, and clearer rules letting farmers access water as soon as levels allow, echoing Nelms’s case for storage on his farm.

“Drought conditions will continue to worsen until we receive sustained rainfall across the country and we still all have a role to play in conserving precious water supplies,” according to Philip Duffy, the Environment Agency’s chief executive, in a statement shared by Defra.

The Environment Agency has applied for a drought order to restrict abstraction from the River Severn, and 10 water companies, serving 30 million customers, now have restrictions in place.

“A few days or even weeks of wetter weather cannot reverse the impacts of several months of exceptionally dry conditions,” added Duffy.

Defra noted that the first meaningful rains since June have fallen but they have been patchy, so reservoirs and groundwater are still declining even as a handful of rivers see brief upticks in flow.

Despite the losses, Nelms is hopeful about farmers pulling together – sharing labour, machinery and market routes. He points to the Central Chiltern Farmer Cluster, where growers meet to talk through their problems and find solutions together.

“We’re working together, not competing with each other,” he said.

For a farm like Nelms’s, with no irrigation and no water in reserve, that patchiness is the problem. Soil parched from months without rain needs to absorb sustained rainfall before groundwater can even begin to recharge, let alone refill the reservoirs a future harvest might depend on.

“Our climate has changed,” Water Minister Emma Hardy, who chairs the National Drought Group, said late last month, “and we will continue to take all action necessary.”

Trade tensions soar as Canada matches US tariffs ‘dollar-for-dollar’, impacting 700 products and multiple industries.

Canada’s retaliatory tariffs on imports from the United States have taken effect, escalating the trade dispute between the two countries.

Tariffs ranging from 15 percent to 50 percent will apply to nearly $20bn worth of US imports from 12:01am ET (04:01 GMT) on Tuesday, matching US-imposed levies on Canadian goods including machinery, textiles and consumer products.

The new retaliatory tariffs apply to products including steel, household appliances, agricultural equipment and dairy.

“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Canadian Prime Minister Mark Carney told reporters in late August.

US President Donald Trump announced 50 percent tariffs against Canada in July, citing “discriminatory treatment” of US products. The announcement prompted the countries to enter trade talks in August, but a final deal failed to materialise before a deadline imposed by Trump.

“Canada wants the benefits of being a State, without being one!!!” Trump posted on Truth Social in response to Canada’s announcement in August.

The Canadian government said in a statement that the counter-tariffs will impact more than 700 products, adding that it would launch a $5.42bn support package for affected small and medium-sized businesses and workers.

On the eve of Ottawa imposing its tariffs, Trump threatened to block Canada-based aircraft manufacturer Bombardier from selling its planes in the US unless it began manufacturing them in the country.

The dispute has also extended beyond tariffs, with Trump signing an order last month renaming Lake Ontario “Lake America” for US federal use.

The retaliatory tariffs could place a financial burden on US automakers as Canada is the largest buyer of US-manufactured cars.

Americans could soon see increased prices on 550 consumer goods from Canada. According to a report from the Kiel Institute for the World Economy, US importers and consumers absorb 96 percent of the tariff burden.

Oil prices are rising to nearly a six-week high amid a wave of strikes between the United States and Iran in the Strait of Hormuz, through which roughly a fifth of the world’s oil supply travels during peacetime.

On Monday, Brent oil futures, the global benchmark, rose to hover around $97 a barrel — up 9 percent over the last five days and 19 percent over the last month. Monday’s market moves are approaching the highest point since July 24th, when prices topped $97.93.

US West Texas Intermediate crude similarly rose to $92.27 a barrel, up 79 cents, also a near six-week high.

In recent days, strikes escalated in the Strait of Hormuz. The US hit three Iranian oil tankers on Saturday, while Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had struck three tankers and three US-linked vessels in other areas.

“This is a reflection of continued conflict and exchange of fire. The supply deficits globally are persisting, and there is little end to these shortages,” Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security (CNAS), told Al Jazeera.

On Monday, Saudi Aramco’s Jizan facilities were struck for the second time in the last month, according to reporting from the Financial Times that cited two people familiar with the matter.

“The fact that a Saudi refinery in Jizan was hit, possibly delaying its return to production, didn’t help,” Ziemba added.

Amid increased strikes, there’s less traffic in the Strait of Hormuz, with an average of 10 commodity ships crossing the vital chokepoint each day over the last 10 days, according to Kpler, a data analytics platform.

“Crude went back down to what the pre-war level was in early July. Then it increased again, and then it reduced again, and now it’s increasing again on this weekend’s exchange plus the Aramco attack,” Arif Gasilov, a partner at the Gasilov Group, an energy advisory firm, told Al Jazeera.

“I would say that you might eventually see an inflection point, depending on how long this keeps going on, where a ceasefire doesn’t move the market at all, maybe by just a dollar or two.”

US consumers pinched

US consumers are feeling the impact of heightened oil prices at the petrol pump. The average price for a gallon (3.78 litres) of petrol has jumped 7 cents over the course of a week, reaching $4.15 nationally on Monday, up from $4.08 this time a week ago, according to the American Automobile Association (AAA), which tracks daily petrol prices.

That’s up from $4.04 this time a month ago and $2.98 from February 28th, when the US and Israel first struck Iran, marking a 39 percent increase since the war began.

Last week, diesel prices hit all-time highs at $5.85 per gallon.

“US diesel prices have never been this high, and now the countdown starts for the trickle-down to everything consumers buy… record diesel will start funnelling down into the economy,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a post on the social media platform X.

Prices have continued to climb since, with average prices on Monday topping $5.90 per gallon.

“Markets are pricing in longer disruptions. It continues to be in product markets where the biggest disruptions lie, though, including diesel,” Ziemba added.

Those price gains are weighing on Americans, who have spent an average of $764.59 per household on fuel since the war began. That’s $418.82 more than usual, according to Brown University’s Watson School of International and Public Affairs.

Ahead of the US’s September 5-7 Labor Day weekend, the unofficial end of summer and a popular time for US travel, AAA forecasts showed a 20 percent increase in flight costs compared to the same weekend last year.

Ahead of the midterm elections, the economy is emerging as a key issue for US voters — and a potential warning sign for Republicans. Polls show voters souring on President Donald Trump’s handling of the economy, with his economic approval rating falling to a new low in a recent Financial Times poll. Just 17 percent of Americans approve of his handling of the economy.

An Economist/YouGov poll similarly found that 39 percent of Americans believe Democrats are doing a better job handling the economy, compared with 32 percent who said Republicans are.

China pressures

Southeast and East Asian markets rely more heavily on imports travelling through the Strait of Hormuz directly than the US, but Beijing has moved to insulate itself from the disruption by turning to domestic sources, including its strategic petroleum reserve (SPR).

“China has been managing this situation successfully since the beginning of the war. We know that China has many domestic resources, despite rising oil prices,” John Gong, an economics professor at the University of International Business and Economics, told Al Jazeera.

“China has been conserving its oil and gas consumption for quite some time now. China was prepared for these challenges,” Gong said.

He also stressed that China’s close relations with Russia give Beijing another source of supply, with Moscow able to provide nearly half of China’s daily oil needs.

China has also begun tapping into its SPR while reducing its reliance on imports, as Beijing accelerates a broader shift towards alternative energy sources and vehicles that require little or no oil to operate.

“We have national strategies focused on transitioning to clean energies like solar and green power,” Gong said. “When we look at the vehicles purchased in China, more than 50 percent of cars sold on the Chinese market are electric.”

Kenya is beginning a crackdown on foreign nationals operating small retail shops and engaging in hawking, after President William Ruto directed authorities to shut down such businesses from September 7.

Ruto made the announcement on September 2 while addressing micro, small and medium-sized enterprise (MSME) traders at State House in Nairobi.

He said foreigners should not compete with Kenyans in businesses such as hawking and small retail, while foreign investment was welcome in activities requiring greater capital and investment.

What is Kenya doing?

Ruto directed authorities to begin shutting down small businesses operated by foreign nationals from September 7, saying hawking and small-scale retail should be reserved for Kenyans.

He said the government would take administrative action while the Parliament of Kenya considers the proposed Local Content Bill, 2025.

He also directed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to accelerate the bill’s passage through Parliament.

Why is Kenya moving against foreign traders and small retailers?

Hesbon Hansen Owilla, a professor at Aga Khan University in Nairobi, said the policy would help protect Kenyan traders.

“Yes, this is the best way to protect Kenyan small businesses and traders,” he told Al Jazeera. “Kenya is trying to bring in only investors who are bringing capital that can spur economic development by creating jobs rather than allow small-time foreign traders who only stifle Kenyan small traders while enjoying the robust infrastructure that Kenya has built and social securities.”

“It’s like expatriates. A country cannot allow expatriates in for jobs locals have expertise in,” he said.

The proposed Local Content Bill, 2025, would require foreign companies to increase local sourcing and employment, among other measures.

The bill is still being considered by Parliament and has not yet been enacted into law.

What businesses and traders are affected?

The directive is aimed at foreign nationals operating small retail shops and engaging in hawking. Ruto specifically referred to hawking and small shops when announcing the crackdown.

Kenya’s broader micro, small and medium-sized enterprise (MSME) sector covers a wider range of businesses. The government has not publicly provided a comprehensive list of all businesses covered by the September 7 directive or an estimate of how many foreign nationals will be affected.

Ruto also directed Ichung’wah to engage the State Department for Immigration’s principal secretary and establish the requirements governing permits issued to foreign investors and traders. It is therefore not yet clear how the directive will apply to foreign nationals who already hold permits to conduct business in Kenya.

Foreign Affairs Principal Secretary Korir Sing’Oei said on September 6 that foreign nationals who meet Kenya’s legal requirements, including holding the necessary work permits and licences, remain legally protected to operate businesses in the country. He said Ruto’s remarks had been taken out of context and were made in the context of the Local Content Bill, 2025.

How significant is foreign investment in Kenya?

Kenya’s 2024 Foreign Investment Survey, the latest such survey published by the Kenya National Bureau of Statistics (KNBS), put the country’s stock of foreign direct investment at  1.458 trillion Kenyan shillings ($11.27bn) at the end of 2023, up 8.5 percent from 1.343 trillion Kenyan shillings ($10.4bn) at the end of 2022.

These figures cover foreign investment across the Kenyan economy and are not limited to the small-scale trading activities targeted by Ruto’s directive.

Surveyed foreign-invested enterprises employed 224,769 people in June 2024, including 221,267 Kenyan employees. Foreign employees accounted for 1.6 percent of the workforce in those enterprises.

What is the Tata Chemicals case?

The Tata Chemicals dispute is separate from the small-business crackdown.

Tata Chemicals Magadi operates a soda ash business at Lake Magadi in Kajiado County. On July 28, the Kenyan government suspended the company’s mining operations, citing alleged compliance issues under the country’s mining laws. The suspension also affected its soda ash exports.

On September 3, Ruto said he had ordered Tata Chemicals to leave Kenya, saying the company had not provided sufficient benefits to the local community in Kajiado County. He said the government would bring in two new companies to establish glass and chemical manufacturing facilities in the area.

Tata Chemicals said it had submitted the information requested by Kenyan authorities and was awaiting further communication. The company has said it complied with regulatory requirements and remained committed to resolving the matter through legal and regulatory channels.

The Tata dispute concerns the company’s soda ash operations at Lake Magadi. This is separate from the directive targeting foreign nationals operating small retail businesses and hawking.

What does this mean for foreign investment?

International business consultant and Sols Inclinations Ltd Managing Director Solomon Kinyanjui said the distinction was not between welcoming foreign investment and rejecting it, but between foreign capital that complements Kenyan enterprise and activity that displaces it.

“The issue is not whether foreign capital is welcome, but what role it should play in Kenya’s economy,” he told Al Jazeera. “Foreign investment should complement Kenyan enterprise, not substitute for economic activities Kenyans can competitively undertake themselves.”

He said the stronger case for foreign investment was where it brought capital, technology, skills, industrial capacity and access to export markets, but warned that the government needed to draw the boundary clearly and apply its rules predictably.

Hafsa Abdiwahab Sheikh, a journalist, said the policy could have both benefits and costs depending on how it is implemented.

“The policy could create more jobs for Kenyans and encourage skills transfer, while helping protect local employment,” she told Al Jazeera.

“However, if implemented unpredictably, it may discourage foreign investment and increase business costs, leading to higher prices. It could also affect relations with foreign communities if foreigners are blamed for unemployment.”

The global ratings agency has also maintained the country’s sovereign rating at AA.

Fitch Ratings has removed Qatar from “Rating Watch Negative” while maintaining its sovereign rating at AA amid the US-Israel war on Iran and the Strait of Hormuz blockade.

The global ratings agency announced the decision on Friday, citing reduced risks to the country’s liquefied natural gas (LNG) facilities since March.

The agency, however, kept a negative outlook on the rating, citing ongoing risks surrounding the movement of gas exports through the blockaded Strait of Hormuz.

“The impact of the war on the credit profile will take longer to discern,” the agency said in a statement.

Qatar, one of the world’s largest gas exporters, continues to face export disruptions and shortages caused by damaged energy facilities during the war on Iran, which began six months ago.

Earlier this year, credit agencies S&P and Moody’s also affirmed Qatar’s ratings, noting that the country’s sizeable financial cushion helps protect it from the economic impact of the war.

US sanctions Turkish bank over alleged IRGC ties, accusing it of facilitating millions in transactions for Iran.

The United States Treasury Department has imposed sanctions on a Turkish bank and its subsidiaries over alleged ties to Iran, as Washington seeks to economically isolate Tehran.

The Treasury Department accused Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) on Friday of facilitating “tens of millions of dollars’ worth of transactions for the Islamic Revolutionary Guard Corps-Qods Force” and providing the Iranian government with banking access to move its funds internationally.

Washington alleged the bank “was established for the purpose of enabling Iran’s rahbar network [shadow banking system] to transfer oil revenues from China to Turkey” using gold and cash.

Golden Global Bank responded on Friday, saying it fulfilled all local and international banking compliance rules and would take legal action against the US-imposed sanctions.

There are no transactions conducted by Golden Global Bank that could substantiate the claims made by the US, the bank said in a news release.

“We will exercise all our rights of objection and legal recourse in the most effective manner and will take the necessary actions at the earliest against these allegations and the decision,” the Turkish bank added.

“Financial institutions continue to find out the hard way that we are serious about Operation Economic Outcast,” said Secretary of the Treasury Scott Bessent in a statement published by the department on Friday.

The sanctions place the bank and its two subsidiaries on the US Office of Foreign Assets Control (OFAC)’s Specially Designated Nationals list, cutting off access to the US financial system.

The bank said individuals and entities named in the OFAC decision “have never been and are not currently customers” of Golden Global.

US Ambassador to Turkiye Tom Barrack said on Saturday that it would be a mistake for Turkish officials “to read [the US’s] narrow measure as a judgement upon Turkiye”.

“The health of the Turkish financial system is not in question; the conduct of one institution was,” Barrack said on X.

Last week, the US took steps towards severing the UAE operations of Egypt’s second-largest bank from financial access after accusing it of processing transactions for companies linked to Iran’s shadow-banking system.

Bessent said on Tuesday on the sidelines of a G20 summit that Washington would likely announce a bank sanction this week and another next week, as it ramps up its economic campaign against Tehran.

The United States economy has added 162,000 jobs in August, with large gains in local government education and food services.

The unemployment rate remained unchanged, according to the monthly jobs report released by the US Department of Labor’s Bureau of Labor Statistics (BLS) on Friday.

The data was well above analysts’ expectations. Economists polled by Reuters had forecast 56,000 gains, the Wall Street Journal forecast 53,000, and Bloomberg had forecast 55,000, following a loss of 23,000 in July.

Local government education, or public schools, accounted for nearly 42,000 of the jobs added as the 2026–27 school year begins across much of the US. Teachers typically fall off payrolls during the summer months when school is not in session.

Food service jobs also saw large increases, with the sector adding 59,000 jobs for the month of August compared with the month prior.

There were also gains in construction, which added 22,000 jobs, and healthcare, which added 12,000.

The information sector, which accounts for industries like data processing, web hosting, publishing, broadcasting and telecommunications, fell by 23,000, with notable layoffs at companies including Scripps TV and Zillow, which fall under the umbrella of these industries.

The financial activities sector, which accounts for industries like insurance, commercial banking and real estate, dropped by 12,000.

Mixed data

The data comes in sharp contrast to the ADP national employment report, which tracks private payrolls and found 38,000 jobs added across the US economy.

Meanwhile, the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) report released on Tuesday revealed job openings were slightly changed, with 7.3 million in July, up from 7.2 million the previous month, while total separations fell to 5.1 million in July from 5.3 million in June.

The move in job gains comes ahead of the US Federal Reserve’s policy meeting later this month, where the central bank will vote on interest rates. Amid the job gains, CME Group’s FedWatch, which tracks the likelihood of monetary policy decisions, had a 60 percent chance of a 25 basis point rate increase to 3.75–4.00 percent, up from 49 percent on Thursday.

US President Donald Trump was quick to comment on the jobs report and push for rate cuts.

“Lower the interest rates because the U.S.A. is a much stronger credit than it was a short time ago!” he said in a post on his social media platform Truth Social.

He also ramped up threats to cut off trade with nations that the US has a deficit with if the central bank does not cut rates.

Despite a strong jobs report, US markets are trending downwards. The Nasdaq is down 0.2 percent, the Dow Jones Industrial Average is down 0.5 percent, and the S&P 500 is down 0.3 percent amid Trump’s comments.

Meanwhile, Canada released its jobs report amid the ongoing trade dispute with the US. The Canadian economy lost 41,700 jobs, according to Statistics Canada, with the unemployment rate holding steady at 6.4 percent.

“We expect the economy will continue struggling to create jobs in the near term as mounting headwinds from new US-Canada tariffs, greater uncertainty from a flare-up in the trade war, and the ongoing Iran conflict and a shrinking population weigh on hiring,” Tony Stillo, director of Canada Economics at Oxford Economics, said in a note provided to Al Jazeera.

ChatGPT creator’s latest release comes amid heightened fears following AI-led hacking of the startup Hugging Face.

OpenAI has announced the release of what it says is its most advanced AI model, amid heightened scrutiny of the risks of the frontier technology escaping human control.

The $852bn start-up said in its announcement on Thursday that GPT‑6 Astra, the “world’s most intelligent and aligned” AI model, earned perfect or near-perfect scores in key benchmarks of AI reasoning, beating both its prior release GPT 5.6 Sol and rival Anthropic’s Claude Fable 5.

The ChatGPT creator said GPT‑6 would become available to the general public in the coming days, following its initial launch with a “limited set of organisations”.

OpenAI’s latest release comes as the AI industry is at the centre of a lively public debate about the dangers of the cutting-edge technology following the AI-led hacking of the startup Hugging Face in July.

An independent probe into the cyberattack found that hundreds of OpenAI’s AI agents had begun communicating among themselves before breaking out of their controlled environment and compromising Hugging Face’s servers.

On Thursday, US Senator Bernie Sanders, an Independent, and US House Representative Greg Casar, a Democrat, unveiled legislation that would pause the development of advanced AI until the establishment of federal safety rules and an outright ban on the creation of “superintelligent” AI.

“Nearly every day, there is a frightening new story about how Big Tech companies are losing control of the technology they are developing, with potentially cataclysmic results,” Sanders said in a statement announcing the legislation, which is unlikely to advance due to the Republicans’ control of all three branches of the US government.

“The leaders of the major AI companies publicly acknowledge that they do not fully understand the technology and that it is escaping their control. It is irresponsible for society to allow them to move forward and make these products even more advanced.”

In its announcement, OpenAI devoted significant space to AI safety, highlighting both GPT‑6’s potential to do harm and its safety features.

Toby Walsh, a professor and AI expert at the University of New South Wales, Sydney, said that while OpenAI is clearly “neck and neck” in the race to lead AI, the technology remains inconsistent and in need of greater scrutiny.

“The intelligence in artificial intelligence is still today very jagged,” Walsh said. “There are simple things that even the best AI models do poorly.

“And it’s hard to see how the AI companies, including OpenAI, are slowing down to address justified concerns around cyber risk, when new models are being released at an ever greater and greater rate.”

Roman Yampolskiy, a computer scientist at the University of Louisville, said GPT‑6 marks a “meaningful” advance that raises the stakes for AI safety.

“The key question is whether capabilities are improving faster than our ability to reliably understand, predict and control these systems,” Yampolskiy said.

“I see little evidence that this gap is closing.”

The United States and Iran continue to make competing claims about who has greater control of the critical Strait of Hormuz in the Gulf.

Washington claims the strait is open and that dozens of ships, carrying millions of barrels of oil, are passing through each day. US President Donald Trump claimed last month that the US was in “total control” of the waterway, through which one-fifth of the world’s oil and gas is shipped during peacetime, but which has been closed since the US-Israel war on Iran began six months ago.

Iran, however, says the strait remains under its control and is closed except to pre-approved vessels using its designated channels. It has warned that other ships attempting to transit risk being targeted.

So what is really going on in the strait – and what explains the divergent accounts?

What are the latest US claims about the Strait of Hormuz?

The US says shipping through the Strait of Hormuz has significantly increased in recent weeks.

Two US officials told CNN that 40 commercial ships carrying some 18 million barrels of oil passed through the strait under US military escort on Tuesday, in what would be a new wartime record.

Trump gave a similar figure on Monday, saying the US Navy was helping some 30 ships pass through Hormuz every night. He later said the waterway was “under USA control”.

In terms of oil, US Treasury Secretary Scott Bessent said that “at least 10 million barrels” were getting through the strait each day, with between 15 million and 17 million on Tuesday.

The assessment comes after US CENTCOM commander Brad Cooper claimed last week that the US military had cleared Hormuz’s transit lanes of sea mines.

Before the war began, an average of around 100 ships and 20 million barrels of oil are estimated to have passed through the waterway each day.

According to figures from PortWatch, this has fallen to an overall average of seven vessels since March.

What does Iran claim about the strait?

Iran has acknowledged that some vessels are getting through the strait, but insists it remains in control of the waterway.

Iran’s Parliament Speaker Mohammad Bagher Ghalibaf on Tuesday said “the enemy managed to get some ships” through Hormuz, but stressed that Iranian forces remain “in complete control of the strait and will not allow it to be opened”.

Ghalibaf accused the US of giving ships “false guarantees” about their ability to cross a southern route in Hormuz, warning that ships that try to do so would be targeted.

The following day, Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed two oil tankers had hit mines and were disabled while trying to cross an “illegal route” in the strait. Saudi Arabia, meanwhile, claimed an Iranian attack hit a Saudi oil tanker, killing two Filipino sailors.

What does shipping data show?

The latest ship-tracking data paints a different picture than the US claims, with far fewer vessels recorded as transiting the strait.

According to marine analytics firm Kpler, just six vessels crossed the strait on Wednesday, 11 on Tuesday and five on Monday. It put the 10-day average at 13 vessels per day.

Other ship-trafficking services show a similar pattern. Maritime data firm Lloyd’s List Intelligence recorded an average of around 12 transits per day from August 26 to September 1, though the latest data may be incomplete “due to a lag in identifying dark transits”, said the firm’s maritime intelligence and research director, Bridget Diakun. This means that some ships are switching off their tracking beacons.

From August 17-23, Lloyd’s List Intelligence recorded “about 14 non-Iranian-linked ships each day”, Diakun told Al Jazeera.

All these figures are far lower than the US claim that 40 ships transited the strait on Tuesday.

The Joint Maritime Information Center (JMIC), which monitors threats to shipping in the region, said in a September 1 advisory that commercial traffic through Hormuz was “far below baseline”, despite a “modest uptick from recent lows”.

The advisory put the risk level for Hormuz at “severe”, citing a “continued risk of drifting or uncharted mines”, despite US claims to have cleared the strait of mines.

What explains the discrepancy?

Diakun told Al Jazeera that it is difficult to explain the gap between US-claimed transit figures and those recorded by ship trackers without insight into how the US tallies its own figures.

She said it’s possible the US includes smaller or non-cargo-carrying ships in its total, unlike Lloyd’s, which only counts “cargo-carrying vessels over 10,000 dwt [deadweight tonnage]”.

Eirik Hooper, a senior associate covering the ports and terminals sector for maritime research consultancy Drewry, also pointed to possible differences in how the US counts vessel transits.

“A US operational count plausibly includes everything that moved under or near naval protection: naval auxiliaries, offshore support and tugs, coastal and small craft [and] dhows,” said Hooper, noting that ship-tracking firm Kpler filters out such vessels “on size or cargo grounds”.

Hooper also said the US has access to “satellite, airborne and other sensor coverage plus its own convoy manifests”, which enables it to see vessels not immediately picked up by the normal automatic identification system (AIS) tracking system.

“By late August, the majority of Hormuz crossings were classified ‘dark’ or unknown by route, and AIS data counts often need to be revised to include vessels that switch off their transponders, with confirmed movements backdated,” said Hooper.

More generally, both the US and Iran have an incentive to play up their influence in the strait, the status of which has become a major sticking point in their six-month conflict.

Former US Ambassador Henry Ensher recently told Al Jazeera that he believes the latest cycle of US-Iran confrontation was likely triggered by CENTCOM’s claims to have de-mined that strait, and said “both sides would be well served to stop talking quite so much”.

China has long been a rare partner to Iran, with the economic heft to blunt the United States’ efforts to strangle the Iranian economy.

Yet even as China opposes US President Donald Trump’s latest pressure campaign, few observers expect it to go much further than the modest economic links it has thus far forged with Iran to shield it.

While China opposes the Trump administration’s military attacks and sanctions against Iran, Beijing’s relationship with Tehran is just one consideration in a foreign policy that seeks to balance relations with numerous countries, including the US and the Gulf states, limiting its appetite to prop up the Iranian leadership at any cost, analysts say.

“China, with broader global interests, can only actively promote de-escalation of the US-Iran conflict, and cannot and will not engage in fierce confrontation with the US for Iran’s sake,” said Hongda Fan, director of the China-Middle East Center at Shaoxing University in China.

“Ultimately, the US-Iran conflict must be resolved by the two countries themselves,” Fan said.

China and Iran share substantial trade links, particularly in energy, and a mutual suspicion of US dominance, but their relationship is heavily lopsided, with Tehran depending on Beijing far more than vice versa.

That asymmetry in ties was on full display this week at the annual gathering of the Shanghai Cooperation Organisation, a 10-member bloc widely seen as a counterbalance to US hegemony, where Chinese President Xi Jinping joined more than a dozen non-Western leaders, including Iranian President Masoud Pezeshkian.

While Iranian state media reported that Pezeshkian held a “brief meeting” with Xi on the sidelines of the summit in Bishkek, Kyrgyzstan, Chinese outlets made no mention of the encounter.

Xi immediately followed his attendance at the summit with his first visit to Egypt in a decade on Tuesday, using the visit to call on countries in the Middle East to oppose “external interference” and reiterate his calls for a diplomatic resolution to the Iran war.

As Iran’s top trade partner, China has taken up to 90 percent of Iranian oil exports since the US and Israel launched their war in late February.

Iranian crude, however, accounts for only about 2 percent of China’s overall energy mix.

While China’s oil purchases have been an economic lifeline for Tehran, Chinese importers have not been immune to fears of exposure to US sanctions.

China’s major state-owned refiners such as Sinopec and PetroChina have shunned Iranian oil for years, leaving the trade to independent “teapot” refiners with minimal links to the dollar-based global financial system.

Though the Trump administration has imposed sanctions on these “teapot” refiners and a limited number of China- and Hong Kong-based firms and individuals, it has yet to target major Chinese banks accused of facilitating Iranian oil purchases.

The Trump administration has hinted at targeting China’s financial system as part of its ramped-up sanctions campaign, dubbed “Operation Economic Outcast”, though analysts are sceptical that Washington will risk provoking Beijing’s ire as the sides seek to lower the temperature in their trade war before a scheduled summit between Xi and Trump on September 24.

“The legitimate question is why third countries should be expected to adopt Washington’s unilateral economic policy towards another sovereign state,” said Zichen Wang, deputy secretary-general of the Center for China and Globalization (CCG) think tank in Beijing.

“That does not, however, mean that Beijing will provide Tehran with a blank cheque,” Wang said.

“China is likely to continue opposing US secondary sanctions politically and to defend what it considers legitimate Chinese commercial interests. But past behaviour also shows that major Chinese banks and state-owned companies are highly conscious of sanctions exposure.”

Rhetoric versus reality

Even as Beijing and Tehran have forged closer ties, their relations have for years been marked by a substantial gap between rhetoric and reality.

While China pledged to invest up to $400bn in Iran over 25 years as part of a “comprehensive strategic partnership agreement” signed in 2021, few projects have materialised amid what analysts say is Chinese firms’ reluctance to navigate sanctions and the opaque Iranian bureaucracy.

In 2023, Iran’s then deputy economy minister, Ali Fekri, complained that he was “not satisfied” with China’s level of investment since the agreement, saying it had only amounted to about $185m.

“Iranian experts often blame their government for not doing enough to attract Chinese investors or not pushing Chinese companies to share more technology,” said Andrea Ghiselli, head of research at the ChinaMed Project.

“However, the reality is that there is no point for Chinese companies to give up their ties with the international financial system to expand their business in Iran,” Ghiselli said.

“It is much easier and more profitable to trade and invest elsewhere. Iran’s own domestic physical and bank infrastructure is also an obstacle.”

Meanwhile, the most tangible measure of China’s economic support, purchases of Iranian oil, has been dwindling amid the US blockade of Iranian ports.

Iranian crude exports via the Strait of Hormuz, mostly bound for China, fell from an estimated 1.85 million barrels per day (bpd) in March-April to just 240,000bpd in August, according to data from ship-tracking platform Kpler, though millions more barrels shipped before the blockade are still at sea.

In an interview with CNBC on Monday, US Treasury Secretary Scott Bessent said “only” about 30 million barrels of Iranian oil remained on the water and Chinese remittances to Iran were “going to run out”.

Kpler last month estimated that about 80 million barrels were in on-water shortage, enough to provide revenues to Tehran for up to six months.

“For China, Iran is valuable – but replaceable across many dimensions. Iranian oil matters, but China can obtain energy from Saudi Arabia, Russia, Iraq, the UAE, and numerous other suppliers,” said Mordechai Chaziza, an expert on China’s Middle East policy who lectures at Ashkelon Academic College in Israel.

“Iran offers geopolitical access, but China possesses relationships throughout the region. Iran supports China’s multipolar agenda, but so do many other states.”

China’s support for Iran is also not risk-free for Beijing, given its important relationships with Iranian rivals such as Saudi Arabia and the United Arab Emirates, Chaziza said.

“Saudi Arabia and the UAE are major energy and commercial partners.

“Gulf stability is vital because China obtains roughly half of its crude imports from the Middle East,” he added.

The “ideal outcome” for Beijing, Chaziza said, would be “a stable, sovereign, economically connected, and internationally non-Western” Iran, but not one “whose confrontation with Washington, Israel, or the Gulf monarchies forces China to choose sides”.

Wang, at the CCG, said that while Beijing appears determined to defend Chinese commercial interests, it is unlikely to sacrifice its broader interests in the region or elsewhere.

Beijing’s warning that it is ready to take countermeasures against unilateral sanctions is “not the same thing as promising to underwrite the Iranian economy”, Wang added.

For China, Iran is seen more as a customer than an ally, said Kerri Bitsoff, a former senior official at the US Treasury’s Office of Foreign Assets Control.

“I don’t think this is the alliance some people think it is, even though there’s real support. I think of a more like a customer relationship that Iran can’t walk away from,” Bitsoff said.

“And it was good for China – they got cheap oil, they got a US tied up in the Middle East, but I think that only lasts up until the point where it threatens China’s other interests,” she added.

Multiple new cases have been filed against OpenAI, alleging ChatGPT played a role in the Tumbler Ridge mass shooting.

OpenAI is facing another wave of lawsuits in the wake of the February mass shooting in Tumbler Ridge in Canada’s province of British Columbia, which left eight people dead.

On Wednesday, 30 new complaints were reportedly filed in a United States federal court in California, including teachers and students who were witnesses and survivors at the school where most of the shooting took place, joining seven initial lawsuits filed in April.

The lawsuits accuse the San Francisco, California-based artificial intelligence giant and its CEO, Sam Altman, of negligence, as well as aiding and abetting a mass shooting.

The suits, brought by lawyer Jay Edelson, allege that the company knew about the intentions of the 18-year-old shooter who, in her interactions with OpenAI’s chatbot ChatGPT, had described scenarios involving gun violence, but that the leadership did not report their concerns to law enforcement, echoing earlier lawsuits on the matter.

In April, Altman penned a letter to the community apologising that the company did not alert law enforcement about the shooter, Jesse Van Rootselaar.

“While I know words can never be enough, I believe an apology is necessary to recognize the harm and irreversible loss your community has suffered,” Altman wrote in the letter.

Authorities say that Van Rootselaar killed her mother and half-brother before going to the Tumbler Ridge Secondary School and opening fire. Five children and one educator were killed at the school. More than 25 others were wounded before Van Rootselaar died from what police described as a self-inflicted gunshot wound.

One of the new cases filed was on behalf of a 13-year-old identified as A C, who played dead after watching the shooter kill their classmates and the teacher. Another new case was brought by a grade seven teacher named Deidre Rushlow, who hid under her desk with her students during the rampage.

“There isn’t a day that goes by that I don’t think about what happened at Tumbler Ridge, or the victims of this devastating tragedy and their families. It’s a constant and sobering reminder of the important and incredibly difficult work that many people in my team do each and every day,” Jason Kwon, OpenAI’s head of strategy, wrote in a post on X on Wednesday.

“We’ve been approaching this litigation with respect for both the legal process and the families and victims of this tragedy, and we’ll continue to engage in good faith with that process.”

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

Growing legal pressure

In July, British Columbia’s Attorney General Niki Sharma announced that the province would also pursue “all legal avenues to hold OpenAI and its decision-makers accountable” for the shooting.

The company has faced a growing slate of suits, apart from the ones from British Columbia, alleging that its product played a role in incidents that led to users harming others and themselves.

A recent lawsuit in Florida alleges that the company “actively assisted and encouraged the mass shooting” at Florida State University in April 2025.

There are other complaints filed on behalf of victims across the US and Canada alleging that the victims took their own lives after being pushed by ChatGPT to do so, including a case in Quebec earlier this year.

United States President Donald Trump’s face has officially found its way onto the country’s currency.

On Tuesday at 12pm Eastern Time (16:00 GMT), the US Mint began circulating – and selling – a “once-in-a-generation” $1 coin bearing Trump’s likeness to commemorate the nation’s 250th anniversary.

The gold-coloured coins feature Trump’s portrait on one side, alongside inscriptions of “LIBERTY” and “IN GOD WE TRUST”. On the reverse is an illustration of the US presidential seal with “250” inscribed on its shield.

The US Mint says the coins “capture the spirit, pride, and legacy of a nation approaching its landmark anniversary”.

It’s the first time in nearly 100 years that a living person has been featured on US currency, drawing a heavy dose of criticism, since such honours are largely reserved for long-dead dignitaries.

How did this $1 coin come to be? Here’s what you need to know:

Why is this being done?

Since Trump returned to the White House last year, the administration has taken steps to put his name or image on an array of buildings and items, including the Kennedy Center, the US Institute of Peace, National Parks passes, a limited-edition passport and a $1m “gold card” visa that was announced last year.

The Trump administration has tied some of those efforts to celebrations of the country’s semiquincentennial, the 250th anniversary of the signing of the Declaration of Independence.

On July 15, US Treasury Secretary Scott Bessent first announced the coin in a post on social media. Bessent said the coin “celebrates the strength of American values, and the promise of a nation dedicated to preserving freedom for all”.

The Trump administration has also pointed to another anniversary coin as a precedent for the Trump-branded $1 piece.

In 1926, for the 150th anniversary of the country, the US Mint struck a coin featuring side-by-side portraits of George Washington and Calvin Coolidge, a president who was in office at the time.

But critics have pointed out that the 1926 coin was commemorative and not intended for circulation as currency.

Are there other proposals for Trump-themed currency?

In May, Bessent also said preparations were under way to print a new $250 banknote featuring Trump’s face.

Bessent added that the Trump administration was seeking congressional approval for the new bill.

How much are the new coins?

Despite the coin being valued at $1, consumers can purchase a 25-coin roll for $61 or a 100-coin bag for $154.50 — a significant mark-up.

While the coins are being sold at a premium, the US Mint emphasises they are not solely decorative.

They are valid currency and can be used to make everyday purchases, just like a $1 bill.

Is it legal?

US federal law states: “Only the portrait of a deceased individual may appear on United States currency and securities.”

Congress passed that law in 1866 after a Department of the Treasury official, Spencer M Clark, put his own face on a note valued at five cents, angering lawmakers.

However, during his first term, Trump signed legislation known as the Circulating Collection Coin Redesign Act of 2020 (CCRA), which gave the Treasury the authority to mint $1 coins “with designs emblematic of the United States semiquincentennial”.

That law prohibits the portrait of “any person, living or dead” on the reverse side of those coins. However, Trump’s image on the new $1 coin appears on the obverse — the front of the coin — meaning it likely complies with the law.

What opposition does this face?

Late last year, Democratic Senators Catherine Cortez Masto of Nevada and Jeff Merkley of Oregon introduced legislation that would block Trump from placing his face on the coin.

“While monarchs put their faces on coins, America has never had and never will have a king,” Cortez Masto said. “Our legislation would codify this country’s long-standing tradition of not putting living Presidents on American coins. Congress must pass it without delay.” Their bill did not become law.

The Treasury Department and US Mint did not immediately respond to Al Jazeera’s request for comment.

The United States Equal Employment Opportunity Commission (EEOC) has found that the networking technology company Cisco may have violated the civil rights of Middle Eastern and Muslim employees amid a wave of anti-Arab and anti-Muslim comments on internal messaging platforms at the company.

In June, the EEOC, which is tasked with enforcing the US’s anti-discrimination laws, said Cisco subjected its employees to a hostile work environment, according to a letter of determination obtained by Al Jazeera.

The letter, which was first reported by Politico Pro, stemmed from a complaint filed with the EEOC in December 2024 by a group of Cisco employees called “Bridge to Humanity” (B2H), who had been voicing concerns that the company’s technology was provided to the Israeli military for use in Israel’s genocidal war on Gaza.

Several months earlier, the group of employees had sent a separate open letter calling on the San Jose, California-based company to stop providing its technology to the Israeli government. The document was signed by more than 1,700 of the company’s more than 86,000 employees.

In its December complaint filed with the EEOC, the employees alleged that Cisco had removed the open letter from an internal site and that it was “under review”, and that subsequently, many of the signatories were harassed. Among the allegations was a remark that one employee had told another to “quit living”.

The employees also alleged that Cisco had not responded to their complaints until they created a 76-page report cataloguing the hate comments they had been subjected to in an internal messaging group called Connected Jewish Network.

The report, which was provided to Cisco’s Employee Relations and Ethics offices, according to documents made public by The Guardian, outlined the waves of hate comments. In one of these, from November 2023, an unnamed employee had said that “Israeli passersby killed 2 members of a Palestinian family in Jerusalem this morning, and I for one am extremely grateful.”

“These Cisconians have, among other things, repeatedly glorified violence, joked about sending people to their deaths, likened Palestinians and those with opposing viewpoints to animals, labeled Palestinians, Arabs, and Muslims as murderous, violent terrorists, joked about respecting a person’s gender identity,” the 76-page report said. It added that the Connected Jewish Network was not even a “safe space for all of our Jewish colleagues”.

The EEOC’s determination said that the company had retaliated against one unnamed staffer for “her involvement in pro-Palestine efforts by terminating the individual”.

‘Important step’

The employees’ complaint with the EEOC was filed by Legal Aid at Work, a nonprofit legal services organisation.

“The EEOC’s determination is particularly significant because it appears to be the first time in any legal context where a governmental or judicial finding has sided with Big Tech workers who have collectively organised to fight for corporate accountability around their employers’ sales of their technology to Israel,” Christopher Ho, director of the national origin and immigrants’ rights programme at Legal Aid at Work, told Al Jazeera.

Advocacy groups like the Council on American-Islamic Relations (CAIR) praised the decision.

“The EEOC’s finding is an important step toward accountability and a reminder that federal civil rights protections apply equally to Muslim, Arab, Palestinian, and other employees who speak out about Palestine,” civil rights managing lawyer Jeffrey Wang at CAIR’s San Francisco Bay-area chapter said in a statement.

“Employers have a legal responsibility to address harassment and discrimination fairly and consistently. Workers should not have to fear retaliation or a hostile work environment because of their religion, national origin, or association with protected communities.”

According to reporting by The Guardian, although the EEOC issues its determination in June, the agency’s mediation with the company has “not gone anywhere”.

Legal Aid at Work told Al Jazeera that it has also submitted a complaint against Cisco to the National Labor Relations Board (NLRB) and the California Labor Commissioner.

“[The complaints] allege, respectively, that Cisco unlawfully interfered with our clients’ federally protected right to engage in concerted activity to improve working conditions, and unlawfully interfered with their right to engage in political activities that is protected by the California Labor Code. Both these complaints are still pending at the respective agencies,” Ho said.

Al Jazeera reached out to the EEOC for comment.

“Under federal law, both charges filed with, and charge inquiries made to the EEOC are confidential. The EEOC can neither confirm nor deny the existence of any charge or charge inquiry,” an EEOC spokesperson said.

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

Six months into the war on Iran, the largest US oil companies have posted their biggest profits since 2022, selling less oil at far higher prices. But the conflict is also putting their longstanding Gulf investments at risk, exposing the industry’s uneasy balance between wartime gains and mounting geopolitical vulnerability for investors worldwide.

Since the war began on February 28, Brent crude has risen about 22 percent, from $72 to $88 a barrel.

The Strait of Hormuz – through which one-fifth of the world’s oil and natural gas was shipped before the war – remains largely closed to commercial traffic, though Iran and Oman agreed last week on a temporary maritime route. Iran says the strait will not fully reopen until the United States fulfils its commitments under a lapsed interim peace deal, leaving longer-term security and management arrangements unresolved.

In the absence of a lasting resolution, the disruption is likely to continue supporting higher energy prices and creating windfalls for producers, despite placing energy companies’ regional assets and future projects at greater risk.

Rahul Choudhary, vice president of Upstream Research at Rystad Energy, an independent energy research company, said the conflict has already reduced the amount of oil and gas US energy firms are drawing from the Gulf region.

“Overall we expect US companies’ share of gas supplies [from the region] to fall by around 40 percent this year compared to last year [and] the share of oil supplies to drop by 30-35 percent,” he told Al Jazeera.

While higher commodity prices have helped offset the immediate financial impact, Choudhary said prolonged disruption is likely to delay major projects and weigh on the future growth plans of US oil and gas companies with a presence in the region.

Who has profited?

The surge in the oil price since early March, when Iran first closed the Strait of Hormuz, has delivered a windfall for oil companies, but gains have been tempered by challenges in the Gulf.

Chevron has limited exposure to Arab Gulf supply disruptions, with the region accounting for just 5 percent of its total global output. The group reported its highest quarterly profit in six years of $12bn in adjusted earnings on July 31.

ExxonMobil, by contrast, has been far more exposed to disruption in the Middle East, with the closure of the Strait of Hormuz and Iranian attacks on US-linked infrastructure in the region affecting its operations in Qatar and the United Arab Emirates (UAE), which together account for 20 percent of its global equity upstream supply, according to Choudhary.

“We already saw in H1 [the first half of] 2026, the company’s upstream earnings dropped by around $1.3bn compared to H1 2025, due to lower upstream volumes from the Middle East. However, the shortfall was covered well by higher commodity prices,” Choudhary said.

The contrast highlights a broader divide between those US energy companies which have benefitted from tighter global supply – and the corresponding rise in the oil price – and those with assets, partnerships or operations in the Gulf at greater risk of disruption caused by recent attacks on energy facilities.

Where are US energy companies exposed in the Gulf?

The Gulf’s energy sector is dominated by state-owned giants such as Saudi Aramco, Abu Dhabi National Oil Company (ADNOC) and QatarEnergy.

Although these national oil and gas companies retain control over the region’s reserves and core infrastructure, US energy firms have carved out strategic positions across the region.

US companies generate revenue through stakes in production assets, joint ventures, production agreements, refining and petrochemical projects, as well as through long-term contracts to provide equipment, engineering and operational expertise.

ExxonMobil has some of the largest US commercial interests in the Gulf.

The company has been a major partner in Qatar’s LNG sector for decades, holding stakes in several QatarEnergy LNG joint ventures linked to the expansion of the North Field. The field is the Qatari section of the North Field-South Pars structure, the world’s largest natural gas field, which Qatar shares with Iran, where it is known as South Pars. ExxonMobil also holds an interest in the UAE’s Upper Zakum offshore oilfield alongside ADNOC.

Similarly, ConocoPhillips joined the North Field East (NFE) and North Field South (NFS) expansion projects with QatarEnergy in 2022 to increase export capacity at Ras Laffan.

The US group, Occidental Petroleum, has become one of the largest foreign producers in Oman, operating the Mukhaizna heavy oilfield, the country’s biggest producing oilfield. It also holds interests in UAE gas and pipeline projects.

Chevron maintains a smaller but strategically important Gulf footprint. Through Saudi Arabian Chevron, the company operates oil assets in the Saudi-Kuwait Partitioned Zone, including the Wafra field. In July, it said it was exploring potential routes to move Iraqi crude to Mediterranean export terminals, which could reduce reliance on the Strait of Hormuz.

Where have attacks on energy facilities taken place?

According to the Armed Conflict Location and Event Data (ACLED), a US-registered independent conflict monitor, Iran and Iran-backed groups in the region have carried out at least 172 attacks on nonmilitary infrastructure across the six Gulf Cooperation Council (GCC) countries since the US and Israel launched their war on February 28.

Energy infrastructure has been hit hardest, with oil and gas facilities, along with power plants and desalination plants, accounting for nearly half (48 percent) of all strikes on nonmilitary targets.

The UAE, Kuwait and Bahrain have suffered the highest number of successful strikes, with the majority aimed at oil and gas facilities.

Among the sites that have been struck are Kuwait’s Mina Abdullah and Mina al-Ahmadi refineries, the Bahrain Petroleum Company oil refinery, and ADNOC’s al-Ruwais Industrial City and the Habshan gas complex.

There have also been several strikes on Saudi Aramco facilities, most recently a drone strike on July 27 on the Abqaiq processing complex, one of the most critical nodes in Saudi Arabia’s oil infrastructure, processing more than seven million barrels of oil per day.

Nasser Khdour, Middle East assistant research manager at ACLED, said: “Oil and gas facilities, power plants and water desalination plants are likely to remain key targets for Iran because disruption to these sectors can increase economic pressure on Gulf states, while disruption to global energy supplies increases prices and pressure on the US during periods of escalation.”

In March, a drone attack close to the Saudi Aramco-ExxonMobil SAMREF refinery in Yanbu disrupted oil loading at the city’s Red Sea port. While the attack had only minimal operational impact, it highlighted the vulnerability of US-linked energy assets in the region.

Qatar’s Ras Laffan Industrial City, the world’s largest LNG export hub, which hosts major joint ventures between QatarEnergy, ExxonMobil and ConocoPhillips, also came under repeated attack in March, at one point forcing the plant to halt production entirely. In June, an explosion as a result of a “technical malfunction” on Qatar’s Barzan gas project, where ExxonMobil holds a stake, killed at least 13 people.

“In terms of gas assets being impacted, major blows have been [dealt to] companies [that are] part of LNG projects in Qatar: ExxonMobil and ConocoPhillips,” Choudhary said.

He added that ExxonMobil’s share of LNG supply from Qatar is expected to fall significantly this year to about four million tonnes compared with 13 million tonnes last year, while ConocoPhillips has also experienced reduced volumes to one million tonnes this year compared with 2.5 million tonnes last year.

The attacks on Qatar’s LNG infrastructure could have longer-term consequences. Damage to LNG trains at Ras Laffan could take years to repair, according to QatarEnergy, while delays to Qatar’s North Field expansion projects could push back planned supply growth.

“The attack on LNG trains 4 and 6 at Rasgas damaged roughly 13 million tonnes of capacity, which will take anywhere between three to five years to come back online with a total repair cost estimate of around $3bn,” said Choudhary.

He added that the second most impacted gas project has been the Shah gas project in the UAE, in which Occidental Petroleum has a 40-percent stake and where drone attacks in March caused a fire at the gas plant that halted operations.

The conflict has also affected ExxonMobil’s oil interests in the UAE, Choudhary said. Production from Upper Zakum, where ExxonMobil has a 28 percent stake, was reduced between March and May when export routes were disrupted, limiting the ability to move offshore crude.

Beyond the UAE, the most significant impact on US companies’ oilfield operations played out in Iraq. A drone attack hit the Sarsang oilfield in March, followed by an explosion at one of its storage facilities in April, together causing damage to the field.

Looking ahead, Choudhary said higher prices could support cash flows, but prolonged conflict risks could threaten future growth. ExxonMobil’s $10bn Upper Zakum and Qatar LNG expansions could face delays, while ConocoPhillips remains exposed through investments in higher-risk markets, including its planned 42-percent stake in BP’s Kirkuk operations in Iraq.

“For companies like Chevron and Occidental Petroleum, whose presence are in less volatile countries like Israel and Oman respectively, the impact of escalations will not be as severe, as we have not seen significant disruption in these countries,” said Choudhary.

US oilfield service companies in the Gulf

Oilfield service giants, including US firms SLB (formerly Schlumberger), Halliburton and Baker Hughes, provide drilling technologies, equipment and operational expertise across the Gulf, supporting Saudi Aramco, ADNOC and QatarEnergy.

For oilfield service companies, the outlook is mixed, according to Chinmayi Teggi, energy research analyst at Rystad Energy, a research group. While higher oil prices and energy security concerns could lift demand over time, near-term margins remain under pressure from higher logistical costs, supply-chain disruptions and delayed projects.

“For the Big Three (SLB, Baker Hughes and Halliburton), the conflict continues to weigh on regional revenues,” Teggi told Al Jazeera, adding that second-quarter Middle East revenues were down 8-10 percent compared with the previous year across the three companies, while higher oil prices meant revenues were higher in other geographies.

However, a recovery in suspended operations and production could help drive growth into 2027.

For US companies, therefore, the Gulf remains both an opportunity and a risk.

“The impact on US companies will depend on the extent of exposure and countries in which these companies are present,” Choudhary said.

Their investments have secured US access to some of the world’s most important oil and LNG projects, but the conflict has exposed the risk of operating in a region where energy infrastructure has become increasingly vulnerable to geopolitical conflict.

US President Donald Trump has repeatedly warned Iran against restricting access to the Strait of Hormuz, arguing that the waterway must remain open to global commerce.

But for companies with billions of dollars invested across the Gulf, the challenge isn’t just about keeping shipments moving – it is ensuring the infrastructure remains secure, they say.

Icelanders head to the polls on Saturday to decide whether their country should reenter negotiations to join the European Union, a vote that could have economic and security implications beyond the small Arctic country.

The election comes 13 years after Iceland, under a Eurosceptic government, paused the last EU accession talks, believing the country would fare better outside the bloc.

But much has changed since then.

Arctic security concerns have grown amid Russia’s war against Ukraine and United States President Donald Trump’s threats to invade neighbouring Greenland, the cost of living has climbed and Iceland’s currency has kept wavering.

Prime Minister Kristrun Frostadottir, whose Social Democrats party is pro-EU, said she will honour whatever choice the public makes.

If Icelanders vote “yes”, the country would likely start years of negotiations with Brussels to hammer out membership terms. It would then hold a second referendum on whether to formally become part of the EU.

Frostadottir has said a “yes” vote would see the nation “enter negotiations with our heads held high and stand together in seeking a good agreement”.

If the result is “no”, “all speculation about what [EU membership] might involve will be set aside”, she said.

Knife-edge vote

Recent surveys show Icelanders are almost evenly split on the proposal.

A Gallup opinion poll conducted this week found that 51.6 percent of respondents were against new EU membership talks, while 48.4 percent favoured them.

An earlier survey by Icelandic pollster Maskina showed a narrow majority of 51.3 percent of respondents backing new EU accession talks.

Gabriella Gricius, associate professor of strategy at the Norwegian Military Academy, said Iceland’s lack of armed forces has always left it “reliant on NATO and specifically the US for its security”.

“As the US has grown more unpredictable, and specifically, its rhetoric around Greenland has grown more concerning, it is not surprising that Iceland is seeking additional security guarantees through the EU,” Gricius told Al Jazeera.

Adam Fishwick, a lecturer in international relations at the University of Iceland, said the expected benefits of membership would be reduced inflation, a more stable currency and fewer customs barriers for consumers.

“There may also be opportunities for regional development in Iceland, which is an important issue here, with access to dedicated EU funds,” he told Al Jazeera.

However, the debate over EU accession remains “quite polarised”, he noted. Opponents fear the small nation of 395,000 people would “lose control over everyday policy decisions” and have limited sway in a bloc filled with larger European powers, Fishwick said.

Voters to weigh impact on inflation, currency

The benefits of EU membership for Iceland are not as obvious as for other potential candidates.

Iceland is a relatively wealthy country that, as a member of Schengen and the European Economic Area, already gets a lot of the single-market access that would come with EU membership.

However, the country has experienced growing economic pains in recent years, primarily regarding the cost of living. Consumer prices in 2025 exceeded those of any EU state and were 87 percent higher than the EU average.

Iceland’s currency, the krona, meanwhile, has been prone to exchange-rate swings that opponents say lower investment confidence and make it more costly to borrow money. Earlier this year, the Ministry of Finance and Economic Affairs concluded that the costs of maintaining Iceland’s own currency probably outweigh the benefits. Adopting the euro, it said in a report, may help reduce interest rates and transaction costs.

Joining the EU could help address both issues.

Iceland would become a part of the bloc’s customs union, in which goods move freely between members and face a common tariff when imported from non-member countries. It could also adopt the more stable euro as its currency.

Fishing industry concerns: ‘Backbone of the economy’

A major concern, though, is the impact on the country’s fishing industry, an economic pillar that in 2024 directly contributed about 8 percent of gross domestic product (GDP) and much more indirectly.

By joining the EU, Iceland would become subject to the EU’s Common Fisheries Policy, which governs European fishing fleets and fish stocks.

Iceland’s fishing industry fears this change could lead to new catch quotas, increased foreign competition and, more broadly, less control over local fishing policy.

“The fundamental objection to EU membership is that Iceland would not retain full control over its fisheries – the traditional backbone of the economy,” Valur Ingimundarson, professor of contemporary history at the University of Iceland, told Al Jazeera.

Even if Icelanders vote “yes” to proceed with EU negotiations, the country is unlikely to go forward with EU membership unless it secures “ironclad” exemptions regarding its fishing industry, said Ingimundarson.

‘Additional security guarantees’

Mounting security pressures in the Arctic, coupled with uncertainty about US commitment to its traditional European partners, are also contributing to Iceland’s renewed interest in the EU, say analysts.

Though Iceland is a founding member of NATO and has a 75-year defence treaty with the US, it has no standing armed forces of its own and is located in a geopolitical hotspot that both Russia and the US have sought to project power in.

While Russia has expanded its military presence in the Arctic in recent years, President Trump has repeatedly threatened to use force to seize nearby Greenland.

Ingimundarson said pro-EU Icelanders see “the EU as a source of political and economic protection for a small state confronted by coercive great-power politics and uncertainty about the US as a reliable security partner”.

Iceland’s Foreign Minister Thorgerdur Gunnarsdottir has said membership would be “a valuable addition” for Iceland, even though NATO and the US would still be its core security partners.

In comments to Reuters, Gunnarsdottir said Iceland has been “disappointed” with the US’s “pressure campaign waged against both Greenlanders and Denmark”.

Russia poses a security threat “in our waters and nearby, in the North Atlantic”, said Gunnarsdottir.

For the EU, bringing Iceland into its orbit would expand EU territory much deeper into the North Atlantic, potentially deepening its strategic focus there, said Gricius, the professor.

“Icelandic membership in the EU wouldn’t necessarily change Arctic security dynamics, as Iceland is and will continue to be an Arctic state,” she said. “However, it may influence how the EU behaves in the Arctic, as the EU would then include four of the eight Arctic states – Iceland, Finland, Sweden and Denmark.”

Canada’s economy has rebounded sharply in the second quarter after six months of virtually no growth, aided by a strong jump in exports and solid domestic demand, though a new round of tariffs from the United States brings renewed uncertainty.

The economy grew at an annualised rate of 3.3 percent in the second quarter, the fastest rate since 2023, after a revised 0.3 percent increase in the first quarter, Statistics Canada said on Friday.

The upward revision to first-quarter growth means Canada was not in a technical recession, usually defined as two straight quarters of contraction.

Healthy domestic demand, led by consumer spending and business investment, signals the economy is slowly brushing off the impacts of more than 18 months of US import tariffs that upended North American supply chains and increased costs.

Renewed tariff dispute

A strong domestic consumption and expenditure pattern puts Canada on a firm footing to withstand a new 50 percent US import tariff that President Donald Trump imposed this week on $20bn of Canadian exports. Canada retaliated with its own countermeasures on US imports.

“It seems like households and businesses were beginning to find ways of navigating the trade-related uncertainty before the latest round of tariffs,” Royce Mendes, managing director and head of macro strategy at Desjardins, wrote in a note.

“While it helps that the economy was on stronger footing heading into August, the fresh wave of protectionism injects a significant amount of uncertainty into the outlook,” Mendes said.

Michael Davenport, senior Canada economist at Oxford Economics, said in a note to Al Jazeera that while the gross domestic product (GDP) growth was along expected lines, “the economy is set to slow in the coming quarters amid escalating US-Canada trade policy uncertainty, new bilateral tariffs, and a shrinking population”.

The Canadian dollar weakened slightly after the GDP data, with the loonie trading down 0.01 percent at 72.17 US cents.

On a quarterly basis, GDP grew 0.8 percent for the period ended June, from an upwardly revised 0.1 percent in the previous quarter.

Second-quarter annualised growth was higher than the Bank of Canada’s July forecast of 2.5 percent growth.

Higher exports were one of the main contributing factors for the second-quarter growth, with outbound shipments growing 3.6 percent, the biggest increase in over three years, Statistics Canada (StatsCan) said.

Stronger household spending

Final domestic demand, the sum of all consumption and capital spending and a crucial metric to assess domestic health, rebounded to 1 percent in the second quarter, from a minor contraction in the first quarter.

Domestic demand has been muted for several quarters as consumers and businesses remain cautious while Canada navigates its trade war with the US.

But household final consumption expenditure, the main indicator of consumer spending, rose 0.8 percent, its highest level in three quarters, highlighting stronger household spending. This was mainly driven by higher wages and government benefits, economists said.

Business investment, or business gross fixed capital formation, sprang to a solid 2.3 percent growth in the second quarter from a contraction of 1.3 percent, the first time in the last year and a half that business investment has expanded.

That growth was led by investment in both residential and non-residential structures, machinery and equipment, StatsCan said.

However, the general gross fixed capital formation, essentially government expenditure for creating assets, continued to decline with a second-quarter contraction of 2.9 percent, after shrinking 2.6 percent in the previous quarter.

On a month-to-month basis, GDP for June grew 0.3 percent against a forecast of 0.2 percent, and an advance indicator showed that the economy was largely flat in July, the statistics agency said.

The Iran war is settling into attrition, with no regime collapse and Gulf economies facing growing uncertainty

Analysts broadly agree the United States and Israel’s war on Iran will not see regime collapse in Tehran or a definite victory for Washington, but rather a dragged-out affair of stagnation and attrition.

The hope among the US leadership at the start of the war, which began after surprise Israeli and US attacks on February 28, was that mounting economic and military pressure on Iran would force a structural shift in Tehran. Six months on, it is clear this vision will not come about, and instead many are preparing for a protracted war and managed fallout.

Oil-dependent economies are still absorbing supply shocks after traffic in the Strait of Hormuz slowed to a trickle of pre-war levels following Iran’s attacks on shipping and a US blockade on Iranian ports.

The US military is still entrenched in a region that remains its most militarised in years. Although the war’s intensity has lessened since a memorandum of understanding (MoU) was signed by Washington and Tehran in June, there is no sign it will conclude, leading to continued uncertainty about the future.

Existing tensions, such as those between the Houthi rebels and Saudi Arabia in Yemen, look only set to increase as the war drags on. The influence of rival powers, such as those of India and China, remains stalled rather than stopped, with Beijing’s Belt and Road Initiative having already established itself within the Middle East and North Africa. All in all, the region remains in flux where formal alliances with outside powers no longer guarantee safety.

The defence agreement between Turkiye, Pakistan and Saudi Arabia recently signed in Mecca will likely be the first of many such military pacts agreed in the region.

“The war has just accelerated trends, but hasn’t really started anything that wasn’t already under way. The Gulf countries were already diversifying their economies,” Sanam Vakil, director of the Middle East and North Africa Programme at Chatham House, told Al Jazeera. “Many were already looking at broadening their defence partnerships beyond existing US security guarantees, as well as increasing their own defence capability.”

Israel, for its part, is still pursuing its regional project of “paramountcy”, HA Hellyer of the Royal United Services Institute said, despite its failure to bring Iran to its knees this year.

“There is no chance of the government in Tehran falling in the next six months,” Hellyer told Al Jazeera. “If everything were to theoretically stay the same … with just increased economic pressure, that could eventually cause a ripple effect that could lead to state collapse in Iran. But we’re talking years, not months, and everything is not likely to stay the same.”

The effective closure of the Strait of Hormuz and strikes on regional cities have hindered Gulf states’ plans to use oil revenues as an engine to diversify their economies and build on their reputations as a safe haven to encourage investors.

Shipments of oil, derivative products and liquefied natural gas (LNG) have been repeatedly and severely disrupted since the US and Israel launched their attacks on Iran in February.

Transit through the Bab al-Mandeb Strait, which saw attacks on shipping by the Houthis during Israel’s genocidal war on Gaza, became even more hazardous in July, when the Iran-allied Houthis declared a naval blockade of Saudi Arabia.

“The price of oil has increased broadly in line with the Gulf states’ difficulties in exporting it,” John Sfakianakis, chief economist at the Gulf Research Center, told Al Jazeera. “Is this going to go for six months? Is it going to go on for longer?”

Exacerbating the Gulf states’ difficulties is that, although the price of oil has risen, so has inflation. In addition to the economic difficulties the war has created, there is also growing pressure for Gulf states to invest more in defence.

For now, the majority of the states caught in the middle will look at ways of living with the turmoil and managing the consequences.

US trade officials downplay French language dispute, calling claims fabricated.

Canada’s top trade negotiator with the United States, Dominic LeBlanc, says he “welcomes” a shift in the US position on “discoverability”, “labelling” and “measures to promote French language and Canadian culture” not being subject to US tariffs.

LeBlanc praised the move in a post on Thursday on X and added that Canada is looking “forward to further constructive U.S. clarifications on their other positions, which would create the possibility of a mutually beneficial trade agreement”.

Al Jazeera reached out to the White House for comment, but it pointed to an interview with US Trade Representative Jamison Greer on the Canadian broadcaster CBC in which Greer said French language discoverability on streaming services “is not something where we push hard or condition or red-line”.

Commerce Secretary Howard Lutnick echoed those comments at a news conference on Thursday outside the Kennedy Center in Washington, DC.

“Do I care about how the Quebecois speak? I mean, what could matter less to America? We don’t care. So the fact is we never brought those words up. This is manufactured, and that’s why the president put out a [post on Truth Social] saying it was a complete lie, right? It was manufactured,” Lutnick told reporters.

The comments come on the heels of tit-for-tat tariffs between Washington and Ottawa.

Canada announced retaliatory tariffs on roughly $20bn of US goods ranging from 15 to 50 percent that will go into effect on September 8. Those levies were in response to 50 percent tariffs announced by Washington on Canadian goods as negotiations collapsed over the weekend.

US President Donald Trump ramped up his rhetoric against Canada in recent days, including signing an executive order on Thursday to rename Lake Ontario, the easternmost of the five Great Lakes, which borders Ontario, to Lake America.

On Saturday, Canadian Prime Minister Mark Carney said US officials made “threats to the French language” as well as threats to the culture of Canada and Quebec specifically.

Canada’s retaliatory tariffs are to hit hundreds of consumer products, including ice skates, dishwashers and construction materials. However, on Wednesday, Ottawa scaled back some tariffs, including those on fish and other seafood products.

“Based on feedback, we have made select adjustments to protect against economic harms, including removing seafood and fish products from our list of counter-tariffs,” Canada’s Department of Finance said in a post on X.

“We are continually working with Canadian industries to assess the effectiveness of these measures, with a primary focus on industries that have been targeted by US tariffs.”