Business

June 19 (UPI) — Cuba’s parliament approved a package of 174 economic reforms in just one week, marking the most significant shift in government policy in at least 15 years. Driven by President Miguel Díaz-Canel in response to the country’s deepening economic crisis and mounting pressure from the United States, the plan approved Thursday opens the door to private capital and reshapes the rules governing the island’s economy.

Economists and analysts, however, warned that the real impact of the measures will depend on their implementation and on broader institutional changes that remain absent from the government’s plans.

Cuban economist Alfie Ulloa, a professor at the University of Chile’s Law School, told UPI the reforms represent a significant change in official rhetoric but questioned whether they will translate into meaningful change.

“They are a profound adjustment in discourse and, if implemented, would represent an important adjustment to the model. But for now they are nothing more than another declaration like many made in the past. I do not believe they will be implemented, nor that they will truly free the private sector,” Ulloa said.

The package includes 23 areas of transformation and more than 170 measures aimed at loosening state control over the economy. Among the most significant are allowing direct foreign investment in small and medium-sized private businesses, reviewing activities currently prohibited to the private sector, authorizing direct imports and exports by both state and non-state actors, granting greater autonomy to enterprises and gradually replacing broad subsidies with targeted assistance for vulnerable populations.

The reforms also eliminate broad price controls, a policy Díaz-Canel acknowledged had failed after years of inflation, shortages and expansion of the informal market.

While presenting the plan, the president admitted that part of the country’s current crisis stems from longstanding internal problems.

“There are obstacles that do not come from abroad or from the embargo. There is bureaucracy, delays, regulations that prevent people from producing and decisions that we have postponed,” Díaz-Canel said.

The proposal amounts to an implicit acknowledgment of economic policy failures that Cuban authorities had largely attributed to the U.S. embargo for decades. Analysts noted that several of the measures had been debated previously and rejected by the country’s communist leadership.

Many of the initiatives mirror reforms introduced decades ago in China and Vietnam, although they arrive as Cuba faces one of its worst economic crises since the collapse of the Soviet Union.

Cuban economist Mauricio de Miranda, a professor at the Pontifical Xavierian University in Cali, Colombia, argued in social media posts that the program points toward a transition from bureaucratic socialism to a form of capitalism controlled by political elites.

“It will become the fast track for relatives and close associates of those in power to become shareholders without anyone knowing where their capital came from,” he warned.

De Miranda said Cuba will inevitably need to privatize part of its state-owned assets to attract investment and rebuild its struggling economy. However, he argued that the process lacks the institutional safeguards needed to prevent wealth from being concentrated among groups close to the government.

“Something like this would require a capital market with clear rules, transparency and equal opportunity,” he said.

Questions about legal protections for investors have also emerged as a central criticism.

“None. Cuba is not a state governed by the rule of law. Citizens are completely defenseless before the state,” Ulloa said when asked about protections for potential investors.

He added that investing in Cuba remains highly risky because government power faces few constraints and judicial institutions lack independence.

Cuban economist Pedro Monreal also criticized the process, questioning the secrecy surrounding the package in a lengthy post on X.

“It should not be surprising that the first act of the ‘transformation proposals’ show has reaffirmed public frustration over the secrecy of those proposals,” Monreal wrote.

Monreal also pointed to the failure of the so-called “Monetary Reorganization Task,” a 2021 reform that eliminated the country’s dual-currency system but became associated with surging inflation and declining purchasing power. He argued that experience severely undermines the credibility of the new package.

Despite the skepticism, several specialists acknowledged that some measures could help address urgent problems if fully implemented.

Ulloa said a genuine opening to private investment, particularly from Cubans living abroad, could help revive agriculture, services and food production. He cautioned, however, that critical sectors such as energy, infrastructure, transportation and banking require investment levels that are unlikely to materialize in the near term.

The Cuban government said Thursday that former President Raúl Castro explicitly endorsed the reforms and expressed full support for the package, describing it as what “best serves the Revolution today.”

For critics, that endorsement highlights one of the process’ central contradictions.

The measures acknowledge problems that independent economists have identified for years, yet leave intact the political structure that many blame for creating the crisis.

“The most important point from my perspective is that we are not talking about deep reforms within a new globalized economy. We are simply talking about removing obstacles,” Manuel Cuesta Morúa, vice president of the Council for Democratic Transition in Cuba, told Radio Martí.

He said the reforms arrive too late because Cuba’s economy now operates under extensive U.S. sanctions.

According to Cuesta Morúa, progress will require political and diplomatic negotiations to make the measures viable. He argued that the package merely liberalizes some restrictions but does not yet constitute a genuine economic reform program.

He added that authorities must first address citizens’ immediate needs, create confidence through legal certainty and open Cuban society in broader ways.

Analysts agree that the central question is whether this latest reform effort will produce tangible change or join a long list of initiatives that were announced and later postponed.

Regarding the matter, Vice President JD Vance said, “Right now, we are talking with the Cuban government about how they might change their behavior to achieve that. We’ll see what they do and, obviously, if they do one thing, we’ll do another. If they make smart decisions, we’re going to have a much better relationship with that island.”

Just hours later, details of the measures emerged. For now, however, the White House has remained silent.

June 18 (UPI) — The U.S. military on Thursday lifted naval blockades in the Persian Gulf and Gulf of Oman, with reports showing that shipping vessels have departed the region through the Strait of Hormuz.

U.S. Central Command said in a series of posts on X that, following direction from President Donald Trump, blockades on maritime traffic along the coasts of Iran have ended.

Centcom noted, however, that the U.S. Navy will stay in the “general area” to be sure that “all aspects” of the peace agreement signed by the United States and Iran “are adhered to, obeyed and in full force and effect.”

Trump signed the agreement Wednesday at the Palace of Versailles in France after the G7 Summit wrapped up, which included among its 14 points reopening the Strait of Hormuz, which is a vital shipping route for the region and much of the world.

Iranian President Masoud Pezeshkian had signed the deal earlier in the day.

“American forces are not impeding the transit of vessels to or from Iranian ports,” Centcom said in one of the posts on X on Thursday.

“All U.S. military blockade efforts have ceased,” it said.

At least 12 energy tankers transited the Strait on Thursday, reopening a sailing route through which roughly 20% of the world’s oil supply is shipped around the globe, CNBC and the New York Post reported.

Among the vessels that transited the Strait were three Saudi Arabian supertankers, which together are carrying six million barrels of crude oil and are the kingdom’s first tankers to sail the shipping route since before the three-month-long U.S.-Iran war launched in February.

Vice President JD Vance also told reporters that more than 12 million barrels of oil had shipped through the Strait overnight Wednesday after the deal had been signed.

June 18 (UPI) — President Donald Trump said Thursday that Apple is partnering with Intel to design computer chips that will be manufactured in the United States.

The U.S. government took a 10% stake in Intel last year, investing $8.9 billion in its stock as it sought to boost its manufacturing capabilities in the United States.

“I decided to help Intel because we need to design and build our Chips right here in America,” Trump posted on social media.

Premarket trading of Intel stock jumped by more than 9% on Thursday.

Apple, based in California, currently produces a majority of its processors for devices like the iPhone, iPad and Mac computer in Taiwan.

Computer chips are becoming more and more crucial to the U.S. and global economy due to the demand for processing power, memory and storage chips from artificial intelligence.

Tim Cook, CEO of Apple, said the company’s efforts to “mitigate the huge increases that are being passed to us,” as well as “shield our customers from the increases.”

“But the situation has become unsustainable,” Cook told the Wall Street Journal earlier this week, noting that price hikes on Apple products are “unavoidable.”

Seoul stocks surged by more than 2 percent past another historic landmark, surpassing the 9,000-point level for the first time in history, as investors bet on chipmakers in the face of a hawkish stance by the Federal Reserve and Iran uncertainty.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 199.6 points, or 2.25 percent, to 9,063.84, after rising as high as 9,106.07.

The KOSPI continued its winning streak for the sixth consecutive session on the back of optimism over artificial intelligence (AI) and related sectors.

Trade volume was heavy at 505.9 million shares worth 49.9 trillion won (US$32.7 billion). Foreigners were net buyers, snatching up 1.3 trillion won, while retail and institutional investors net sold a combined 1.2 trillion won.

Losers outnumbered gainers 109 to 788.

The index bucked overnight losses on Wall Street caused by Fed policymakers’ remarks that a rate hike would be inevitable to tame inflation.

The continued rally was led by the country’s two major chipmakers, Samsung Electronics and SK hynix, said analyst Kim Seok-hwan from Mirae Asset Securities.

“Investors are anticipating that semiconductor companies could gain better bargaining power due to a sustained supply bottleneck,” the analyst said.

A risk appetite was also revived on anticipation the U.S.-Iran war is nearing its end. The United States has said Iran has agreed to reopen the Strait of Hormuz, a key oil shipping route, and revealed a signed memorandum of understanding on ending the war.

The rate freeze from the Fed, the fourth consecutive on-hold decision, appeared to have a limited impact on investor sentiment.

Market top cap Samsung Electronics rose 4.62 percent to 362,500 won, while its rival SK hynix jumped 6.51 percent to 2,685,000 won.

Non-semiconductor sectors lost ground.

Defense giant Hanwha Aerospace fell 2.86 percent to 1,189,000 won, ship builder HD Hyundai Heavy Industries retreated 3.25 percent to 684,000 won, and major financial firm KB Financial inched down 0.55 percent to 163,100 won.

The Korean won was quoted at 1,527.1 won against the U.S. dollar, down 13.7 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 4 basis points to 3.75 percent, and the return on the benchmark five-year government bonds added 5.2 basis points to 3.949 percent.

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For half a century, a handful of wealthy Western democracies wrote the rules of the global economy.

But the world order is becoming crowded, and even as the Group of Seven (G7) remains one of the world’s most influential clubs, a challenger has emerged.

BRICS has expanded, and says it wants a bigger voice for the Global South. This bloc of nations speaks for nearly half the world’s population – and accounts for a growing share of global output, energy and raw materials.

In the space between the two, a third force is gathering pace: the so-called middle powers, nations too big to ignore and unwilling to pick a side.

BROOKLYN Beckham spoke about struggles he was facing with his hot sauce business, Cloud23, just weeks before his controversial World Cup ad.

The aspiring chef appeared to have cashed in on his ongoing family drama this week as a new advert to promote DoorDash – a food delivery service – was released.

The big-money ad – which saw Brooklyn hint at his reason for not attending the World Cup, which his dad is currently enjoying – has been widely received as a swipe at his famous family.

Swipe or not, the payday could have come at a good time for Brooklyn, who revealed just weeks before its release that he was ‘figuring out’ things in his business.

The eldest child of David and Victoria launched hot sauce brand Cloud23 in October 2024, and has admitted he has faced ‘ups and downs’ with the brand since.

Speaking at the Tribeca Festival in New York last week, Brooklyn explained of his company: ‘I didn’t really know what I was getting into when I was creating this.

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“There have been a lot of ups and a lot of downs. There are things we’ve had to figure out.

“I’m still learning every single day. I’m going to continue to learn forever.”

Brooklyn also detailed how he wanted the brand to be much more than his famous name, which was built by his footballer dad and popstar mum.

“When I was creating this, I didn’t want to create another celebrity brand. I wanted to create the cleanest hot sauce there is with the most beautiful bottle,” explained the 27-year-old.

Brooklyn’s DoorDash ad has been widely seen as a nod to his estrangement from famous parents David, 51, and Victoria, 52, as well as his brothers and sister and wider family for over a year.

In the ad, he says to the camera: “You’re probably wondering why I’m watching the FIFA World Cup 2026 from home…”

Smirking Brooklyn then laughs: “It’s a long story.”

He goes on to throw down his tickets onto the coffee table.

The advert then says: “It’s complicated. More soon.”

Beloved England player Becks famously played in three FIFA World Cups in 1998, 2002 and 2006.

He’s out in America promoting the World Cup – watching the opening match with Tom Cruise.

June 16 (UPI) — Oil prices have fallen to their lowest levels since the start of the Iran war with Brent crude oil declining to less than $80 per barrel on Tuesday.

Brent crude oil, the international benchmark, traded for $79.96 on Tuesday morning. It is the first time since the war started that it has traded below $80 per barrel. It has since inched above the $80 mark to about $80.19.

The price of West Texas Intermediate, the U.S. benchmark, has dipped by about 3.8% on Tuesday to $77.71 per barrel.

Tuesday marks the second consecutive day of descending oil prices spurred along by Sunday’s announcement that the United States and Iran have come to terms on a peace agreement. Prior to the announcement, oil prices had risen by about 14% since the start of the war.

Iran closed the Strait of Hormuz after the United States and Israel launched attacks on Feb. 28. The United States later instituted a naval blockade on the strait, stopping any vessels using Iranian ports.

The terms of the peace deal have not been made public. The United States and Iran have electronically signed a preliminary agreement and are expected to officially sign off on the peace deal on Friday.

While oil prices have fallen significantly, gas prices have moved more slowly, dropping by three cents on Tuesday. The national average for a gallon of regular-grade gas is $4.04, AAA reports. Gas prices remain elevated by about 36% since the start of the war.

President Donald Trump said Sunday that the traffic on the Strait of Hormuz would resume immediately. However, it may still take weeks for operators on the strait to actually allow tankers to pass through.

About 20% of the Middle East oil trade uses the Strait of Hormuz.

June 15 (UPI) — The Korean Federation of Community Credit Cooperatives, or KFCC, said Monday that it will provide AI-powered companion robots to elderly residents as South Korea faces the social challenges posed by rapid population aging.

The nationwide cooperative federation noted that a total of 200 robots will be supplied to senior citizens living alone, with the aim of dealing with social isolation.

The robots are designed to offer various support functions, including interactive conversations, medication reminders, and motion-detection capabilities. When emergencies arise, they can alert authorities and connect users with relevant services, according to KFCC.

Information collected by the robots can be shared with caregivers and social welfare workers to help track their health status and identify potential signs of social isolation, the cooperative said.

“The problem of social isolation among elderly people living alone is becoming more severe amid population aging and the growing number of single-person households,” KFCC said in a statement.

“We will continue our social contribution activities to help build warm and inclusive communities where no neighbor is left behind,” it added.

South Korea is one of the fastest-aging societies in the world. Data from the Ministry of the Interior and Safety show that people aged 65 and older accounted for 21.21% of the population as of the end of last year. When the proportion surpasses the 20% mark, a country is classified as as uper-aged society.

Single-person households represented 36.1% of all households in the nation as of the end of 2024.

KFCC is not a publicly listed company.

June 15 (UPI) — South Korea’s Hyundai Rotem said Monday that the company is showcasing its AI-powered anti-drone technologies at Eurosatory 2026, a defense fair that takes place in Paris this week.

The affiliate of Hyundai Motor Group noted that it has publicly unveiled the system designed to counter unmanned aircraft, including drones, for the first time.

The solution aims to protect troops and military assets from drone attacks by combining AI-driven threat detection and automated response functions, according to Hyundai Rotem.

The firm said that the platform can assess a wide range of battlefield scenarios in real time, analyzing various factors such as the type, distance and altitude of incoming threats to determine the most effective countermeasures.

Built around an unmanned turret platform, the multi-layered defense solution integrates both soft-kill and hard-kill capabilities, Hyundai Rotem said.

The growing importance of such technologies has been recognized by recent conflicts, including the wars in Ukraine and Iran.

Hyundai Rotem is also displaying an export-oriented version of its K2 main battle tank at the exhibition. It has emerged as one of South Korea’s most successful defense exports, as Poland purchased hundreds of the tanks over the past few years.

“By strengthening our capabilities in AI-based protection solutions, including multi-layered defense systems, we will further diversify our business portfolio and enhance our presence in the global market,” Hyundai Rotem said in a statement.

“We will continue to advance key protection and unmanned technologies geared toward preserving human lives, reinforcing our leadership and competitive edge in the defense industry,” it added.

The share price of Hyundai Rotem rose 2.16% on the Seoul bourse on Monday, while the benchmark KOSPI jumped 5.2%.

The lawsuit originally filed in September focused on broader alleged misappropriation of confidential information.

A United States federal judge has dismissed a lawsuit by Elon Musk’s artificial intelligence company xAI that accused rival Sam Altman’s OpenAI of stealing trade secrets for chatbots.

US District Judge Rita Lin in San Francisco said on Monday that xAI failed to show that OpenAI induced former xAI senior engineer Xuechen Li to divulge confidential information related to its Grok chatbot, or that OpenAI engineers knew Li might have disclosed any.

Lin dismissed the lawsuit with prejudice, saying it would be “futile” to continue. She dismissed an earlier version in February. The lawsuit originally filed last September focused on broader alleged misappropriation of confidential information, including source code, by xAI employees who left for jobs at OpenAI.

Monday’s decision is Musk’s second legal loss against OpenAI in four weeks.

On May 18, a federal jury ruled against Musk, the world’s richest person, in his $150bn lawsuit accusing OpenAI and Altman of “stealing a charity” by betraying the company’s original mission as a nonprofit to enrich themselves.

The xAI business is part of Musk’s rocket, satellite and AI company SpaceX.

Lawyers for xAI did not immediately respond to requests for comment. OpenAI and its lawyers did not immediately respond to similar requests.

Discussing past work

The amended complaint focused on a presentation that Li gave while OpenAI was recruiting him.

Musk’s company said OpenAI wanted secrets related to the July 2025 release of Grok 4, knowing its forthcoming update to ChatGPT “could not compete” on complex reasoning, and because OpenAI was “lagging” in reinforcement learning and post-training techniques that Li understood.

But the judge said asking job candidates to discuss their prior work was routine, and one could not infer that OpenAI pushed Li to leak anything confidential.

“To hold otherwise would potentially expose employers to liability any time they inquire about a candidate’s past work,” Lin wrote.

OpenAI has said Li never worked for the company and that it never acquired xAI secrets.

In seeking dismissal, lawyers for OpenAI wrote: “OpenAI does not need or want anyone’s trade secrets, especially not from xAI, which is failing in the marketplace and hemorrhaging talent.”

Li is being sued separately by xAI and has denied wrongdoing.

June 12 (UPI) — The U.S. Department of Justice on Friday said the proposed merger between Paramount Skydance and Warner Bros. Discovery does not harm competition or consumers in the United States.

The Justice Department said that it finds the proposed merger is unlikely to harm competition among similar companies or the ability of American consumers to access video-based media, it said in a press release.

Paramount in January hiked up its offer well beyond what Netflix had offered for the entertainment conglomerate, circumventing the streaming leader from acquiring it, and triggering antitrust investigations in a number of nations both operate in.

At least ten state attorneys general said last week they would sue the federal government to stop the proposed merger, which would create a monolith company comprised of several of the most significant companies in television, film and entertainment.

“This investigation included a review of reams of documentary evidence, hours of deposition testimony of senior-level executives, interviews with third-party witnesses and staff-led meetings with the parties themselves,” the Justice Department said in the release.

“These investigative efforts all led to the same conclusion: The film and television industry is highly dynamic and the proposed transaction is not likely to harm competition or American consumers,” the department said.

The Justice Department said in the release that, among other discoveries that drove its decision, the fact that Warner Bros. has “been a repeated acquisition target in the media and entertainment industry” shows that it is appropriate to approve the merger.

June 12 (UPI) — SpaceX began trading Friday at $150 and has gone as high as $176 as SPCX in its initial public offering, the largest one in history.

Elon Musk and SpaceX President and COO Gwynne Shotwell rang the opening bell Friday. Musk was in Texas and Shotwell was at the Nasdaq in New York City.

After trading opened, the stock topped $160, sending the company to more than a $2 trillion market cap. By early afternoon, the stock was at $176.52.

“I love the incredible people of SpaceX beyond words,” Musk wrote Friday afternoon on X.

The company had traded more than 360 million shares as of 2 p.m. EDT Friday. It has more than 172 million shares on the Nasdaq alone, CNBC reported. Polymarket bettors believe, at 70%, that SpaceX will close at more than $2 trillion Friday. Five other U.S. companies have reached the $2 trillion market cap: Nvidia, Apple, Alphabet, Microsoft and Amazon.

Already a trillionaire, Musk is about to be CEO of two of the Top 10 most valuable publicly traded companies at the same time.

Musk said before the IPO that SpaceX had been cash-flow positive since around 2015, CNBC reported. He said he chose to take the company public now to raise capital for “a significant growth phase.” Some plans for that growth include putting more than 100,000 satellites in orbit for communications and building artificial intelligence data centers in space.

“Having a private company was important to us early on because we weren’t really focused on quarterly financials, we were so focused on the long-term outlook for the company,” Shotwell told CNBC in an interview.

Shotwell said interest from investors also helped drive the decision.

“We’ve been feeling, over the last few years, a lot of pressure from everyday Americans and our friends that wanted to buy stock, and there was just no way for these folks to get in,” Shotwell said.

According to its prospectus, SpaceX has had a total loss of $41.3 billion since it was founded in 2002. Originally founded as a maker of reusable rockets, the only profitable part of the business has been the Starlink satellite Internet service.

In February, SpaceX acquired Musk’s startup xAI, which has been embattled this year for its ability to undress people in AI-generated images. Several countries and people have sued the company to force it to not allow the bot to do so against the victims’ will.

Citadel Securities, which helps execute trade orders, processed more retail activity for SpaceX than any other IPO auction on record, CNN reported the company said. Retail investors are regular people trading stocks instead of professionals.

Seoul stocks rose by more than 4 percent Friday, as investors snapped up tech heavyweights amid hopes the war between the United States and Iran could end soon.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 359.67 points, or 4.63 percent, at 8,123.62 after rising as high as 8,434.40.

After opening sharply higher on renewed hopes that the war between the U.S. and Iran is near its end, the index trimmed earlier gains on profit taking ahead of the closing bell.

Trade volume was heavy at 490.3 million shares worth 51.1 trillion won (US$33.6 billion). Winners outnumbered losers 753 to 144.

On Thursday (U.S. time), U.S. President Donald Trump said he has reached a “great settlement” that would resolve the monthslong conflict with Iran and the deal would be signed as early as over the weekend, possibly in Europe.

Media outlet Axios also reported that four U.S. Air Force C-17 planes departed for Europe on Thursday, moving equipment for possible travel by Vice President J.D. Vance, raising the possibility a signing ceremony could take place in Geneva, Switzerland.

“Market sentiment improved as foreign investors shifted to net buying after a 25-session selling streak, on anticipations for peace negotiations,” said Lee Kyoung-min, an analyst from Daishin Securities.

But the rise was limited, amid reports that global banks are curbing hedge funds’ leveraged bets on the country’s two semiconductor heavyweights: Samsung Electronics and SK hynix, Lee added.

Foreigners and institutional investors net purchased a combined 4.4 trillion won. Retail investors net sold 4.3 trillion won.

In Seoul, shares closed higher across the board.

Market top-cap Samsung Electronics rose 7.86 percent, to 322,500 won, while its chipmaking rival SK hynix moved up 2.33 percent to 2,150,000 won.

Semiconductor equipment maker Hanmi Semiconductor vaulted 24.05 percent to 361,000 won, after the company said in a regulatory filling it is seeking to invest in SpaceX, Elon Musk’s space company set to make its Nasdaq debut on Friday (local time).

Shipmakers also gathered ground as investors went bargain hunting. Hanwha Ocean added 7.85 percent to 112,700 won and HD Hyundai Heavy Industries increased 0.62 percent to 650,000 won.

Portal operator Naver jumped 10.27 percent, to 247,000 won, financial firm KB Financial climbed 6.4 percent to 161,200 won, and top car maker Hyundai Motor added 1.68 percent to 607,000 won.

The Korean won was quoted at 1,519.8 won against the U.S. dollar as of 3:30 p.m., up 9.1 won from the previous session’s close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 9.6 basis points to 3.808 percent, and the return on the benchmark five-year government bonds declined 10.9 basis points to 3.971 percent.

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June 11 (Asia Today) — South Korea needs to reform its electricity market to respond to surging power demand from artificial intelligence and the expansion of renewable energy, the Korea Chamber of Commerce and Industry said Wednesday.

The chamber said the current power market structure is not enough to support private investment or the growth of new energy businesses, including energy storage systems and virtual power plants.

The business group raised the issue during a seminar in Seoul co-hosted with the Korean Resource Economics Association. Participants discussed ways to reform the electricity market and promote new energy businesses as AI adoption and renewable power generation expand.

“As the power industry shifts from a centralized structure to a distributed and digital-based system, various new businesses are emerging,” said Cho Hong-jong, president of the Korean Resource Economics Association and a professor at Dankook University. “To make the energy transition a reality, it is necessary to build a competitive system based on market principles.”

Joo Sung-kwan, a professor at Korea University, said South Korea’s current electricity market has structural limits because wholesale prices are set a day before electricity is supplied, based mainly on fuel costs.

“This creates significant rigidity because real-time supply and demand conditions cannot be flexibly reflected in prices,” Joo said.

Joo said the market needs pricing signals that respond to supply and demand. Prices should rise when electricity supply is tight to encourage lower consumption and fall when supply is sufficient to promote use, he said.

For new energy businesses to secure profitability and increase investment, Joo said South Korea should move from the current day-ahead market to a real-time market. He also called for a price-bidding system in which power generators and electricity retailers submit bid prices.

Panelists also said South Korea needs a market environment and regulatory system that can attract private investment.

Lee Seo-jin, a professor at Hongik University, said tailored compensation systems for new energy businesses and a predictable policy environment are more important than simple market opening.

Huh Yoon-ji, a professor at Dankook University, said wholesale price normalization and retail electricity rate reform must proceed together to secure economic viability. She also called for independent governance to supervise the electricity market.

Industry officials said the pace of reform should accelerate.

Lee Hyo-seop, vice president of Encored, said his company is preparing a virtual power plant business using AI-based forecasting technology, but uncertainty over the schedule for electricity market reform is making business development difficult.

Yeom Sung-oh, Seoul representative of Gurin Energy, said power supply flexibility and sustainability will be crucial in the AI era. He called for preemptive institutional support covering power grids, energy storage systems and data centers.

The Korea Chamber of Commerce and Industry said private-sector energy businesses are essential to address rising electricity demand from AI and the growing variability of renewable energy.

“Companies need a more predictable electricity market so they can invest in high-cost new technologies,” said Kim Min-seok, head of the chamber’s Green Energy Center. “Institutional foundations, including regulatory innovation and a supportive market environment, must be established.”

“To secure competitiveness in power infrastructure in the AI era, discussion on electricity market reform can no longer be delayed,” Kim said.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260611010003798

Californians couldn’t escape billionaire Tom Steyer’s political ads — during newscasts, sitcoms, or sporting events; on streaming services, YouTube, influencers’ social media feeds, or their mailboxes. Even the Puppy Bowl.

Yet despite spending a record-shattering $216 million of his wealth on his run for governor, the Democrat failed to win enough votes in last week’s primary to advance to the November general election to replace termed-out Gov. Gavin Newsom.

“Money isn’t everything, even though it obviously helps,” said Andrea Godfrey Flynn, a marketing professor at the University of San Diego. “It boosted Steyer way up. … But there are so many other factors at play that it may not have been enough.”

Steyer, a hedge fund co-founder turned environmental warrior, polled at 1% shortly before he entered the governor’s race in November, according to a survey by UC Berkeley’s Institute of Governmental Studies that was co-sponsored by the Los Angeles Times.

He climbed in subsequent polls, hitting 19% in the same poll shortly before the June 2 primary, putting Steyer in contention for winning one of the top two spots in the contest that would allow him to advance to the November election. But then he hit a ceiling, and on Tuesday, it became official that he failed to advance.

Steyer emailed supporters Tuesday expressing gratitude for their efforts backing his campaign, endorsements and votes.

“Together, we fought for a California that belongs to the people who keep it running every day, and we insisted that they do not have to settle for a system that protects corporate profits at the expense of working people,” he wrote. “I’m proud of how we never compromised our values or lowered our sights for what California can and should be.”

He pointed with pride at major corporations such as Chevron and Meta spending heavily to oppose his bid, and said their tens of millions of dollars spent attacking him shows the flaws in the electoral system. And he acknowledged that may be part of the reason some voters were skeptical of voting for a billionaire.

“I’m proud of the enemies we made,” Steyer said. “This campaign proved that business-as-usual depends on politics-as-usual, and there is no going back. We must continue to fight for a system where democracy serves Californians, not corporations — and where you do not have to be a billionaire to run on single-payer, or on breaking up monopolies, or on calling out a corrupt system when you see it. Because people are fed up with a system rigged to benefit billionaires and leave them behind.”

As of Tuesday evening, Steyer had received more than 1.9 million votes of the more than 9 million cast, lagging behind the two candidates who will appear on the November ballot: Republican Steve Hilton, a former Fox News commentator, and Democrat Xavier Becerra, a longtime elected official who most recently served in President Biden’s cabinet. Steyer was trailing Hilton, the second-place finisher, by just over 200,000 votes.

Steyer immediately endorsed Becerra, whom he had relentlessly attacked in the closing weeks of the campaign as beholden to corporations with business in front of the governor.

California has a history of unsuccessful self-funders. Former Northwest Airlines co-chairman Al Checchi spent more than $40 million of his money on an unsuccessful gubernatorial primary campaign in 1998, which broke records at the time.

More than a decade later, former EBay chief Meg Whitman spent $144 million of her wealth on her bid to become California’s governor, setting a new national record for spending on a state election. She won the GOP nomination but lost in the general election.

This year’s gubernatorial contest is not the first time Steyer has spent an inordinate sum seeking office. In 2020, he spent $342 million on a brief, unsuccessful presidential campaign.

Sheri Sadler, a veteran Los Angeles-based Democratic media buyer, said Steyer’s 2026 gubernatorial deluge was notable.

“I literally saw his spots ad nauseam,” she said. “They left almost no stone unturned.”

Sadler worked for Steyer in the final weeks of his presidential bid and scheduled $50 million of billionaire Rick Caruso’s money on ads during his unsuccessful 2022 Los Angeles mayoral campaign.

She believes that Steyer hit a ceiling because voters who are bombarded by ads eventually feel that the candidate is trying to purchase their affection.

“It’s one thing to give me a message I can resonate with. If they’re just trying to buy my vote, that feels different to me,” she said, adding that Steyer’s wealth undermined his platform, which included support for raising taxes on billionaires. “That’s my gut. And I feel like that’s what happened to us on Caruso and possibly why he didn’t run” for governor this year.

Steyer, 68, made his fortune founding a hedge fund that included investments in fossil fuels, private prisons and other businesses that are controversial among Democrats. He told voters that he walked away from the firm 14 years ago, leaving an enormous amount of money on the table, because it did not align with his morals. Steyer adds that he and his wife have pledged to give away most of their wealth before they die.

And unlike many wealthy self-funders, Steyer did not leap into a campaign as a political neophyte who assumed their business skills would translate into being an effective elected official.

Steyer and his wife, Kat Taylor, are longtime donors to Democratic candidates, but for well over a decade, they have spent hundreds of millions of dollars on liberal causes such as fighting climate change, mobilizing young voters, urging the impeachment of President Trump, opposing an effort by oil companies to suspend California environmental standards, increasing the state cigarette tax and supporting last year’s redrawing of the state’s congressional districts to counter Trump.

Darry Sragow, a veteran Democratic strategist who advised Checchi, said that Steyer’s focus on such causes had the potential to be meaningful to voters who are often skeptical about the sincerity and motives of rich candidates.

“Tom Steyer has done a good job in that respect, because if you’re going to overcome that skepticism, it’s very helpful for the candidate to show that he or she has actually been involved in the world of public policy and politics for an extended period,” and Steyer has, Sragow said.

Assemblyman Isaac G. Bryan (D-Los Angeles), who endorsed Steyer, argued that he promoted proposals that were against his personal interests, such as the proposed billionaire’s tax that is expected to appear on the November ballot.

“Interestingly enough, Tom Steyer is also the only candidate who’s talked about campaign finance reform and wanting to get money out of politics, including his money, to return power to the people and have publicly financed elections,” Bryan said after a Steyer rally near downtown L.A. on May 31.

Former Orange County Rep. Katie Porter and state Supt. of Public Instruction Tony Thurmond also campaigned on limiting the influence of corporate PAC money in elections, or implementing publicly financed elections in California. Porter often criticized Steyer for running as a “change agent” while spending millions he earned from investments in oil and gas.

“You paid the lowest tax rate on this stage and yet you made the billions that you’re using to fund your campaign off fossil fuels,” she said to Steyer during an April 28 debate in Claremont.

Political experts argue that messages that seem contradictory to a candidate’s background, as well as drowning voters with incessant ads, can be jarring and off-putting to the electorate.

“It can be an overload to voters where they hit that tipping point where they’re no longer interested,” Flynn said.

Despite Steyer’s foundational argument that his wealth meant he was not beholden to anyone, she said voters may be unable to reconcile a billionaire’s ability to understand or empathize about an average Californian’s needs.

“The messaging still is a giant factor,” Flynn said. “I’m curious [about] how believable it came across to voters — can you trust a billionaire to really care about affordability, someone who made money working with business or in business not to care about special interests?”

While Steyer campaigned as a hard-left liberal, he failed to be the top pick for progressives. Steyer had the support of 35% of likely voters who identified as strongly liberal while Becerra was backed by 37%, according to Berkeley’s May poll.

After talking to college Democrats at UCLA on the eve of the primary, Steyer said regardless of what happens in the primary, he will remain politically involved, though he would not run for president in 2028.

“I’m going to keep working on these issues, because I’ve been working full-time on these issues for 14 years,” Steyer said. “There’s no question what I’m going to do. How I do it is a little bit up in the air.”

Times staff writer Dakota Smith contributed to this report.

BUENOS AIRES, June 9 (UPI) — International fashion, luxury and sports brands are accelerating expansion into Argentina after years of absence, driving multimillion-dollar investments and prompting the country’s leading shopping mall operators to expand capacity to meet growing demand for retail space.

The renewed interest from foreign companies reflects Argentina’s changing economic environment since President Javier Milei took office.

Looser import restrictions and other market-opening measures have revived the appeal of a market that for years had been left out of the expansion plans of many international firms.

The expansion comes despite a challenging consumer environment. According to consulting firm Scentia, sales of mass-market consumer goods fell 3.8% year over year in April 2026 and were down 3.3% during the first four months of the year.

Federico Vaccarezza, an economist and professor in Austral University’s Faculty of Business Sciences, told UPI that international brands closely monitor sales data from Argentina’s leading shopping malls because they reflect the behavior of the consumers targeted by their products.

He noted that many of these brands are not seeking to reach the broader population, but rather higher-income consumers — a segment that has shown greater resilience in maintaining spending levels despite economic difficulties.

Vaccarezza said those groups represent roughly the top 10% to 20% of income earners in Argentina.

The international chains that have announced plans to enter Argentina are focusing their projects on Buenos Aires’ most exclusive shopping centers and key cities across the country. The trend includes companies entering the market for the first time, brands returning after years away and firms expanding existing operations.

International companies view Argentina as a long-term opportunity because of its market size, with more than 45 million residents, and expectations surrounding recent economic changes.

The influx of brands is already affecting the commercial real estate sector. Shopping mall operators report growing demand for retail space from foreign companies.

To meet that demand, several groups have accelerated expansion and construction projects. Chilean retailer Cencosud, one of Latin America’s largest retail groups, will invest $60 million to expand Unicenter, Argentina’s largest shopping mall, betting on rising demand for commercial space from international brands.

The project will add more than 215,000 square feet of space and 85 new stores by 2027.

“This expansion represents a concrete long-term commitment to Argentina,” Dolores Fernández Lobbe, country manager of Cencosud Argentina, told La Nación.

Meanwhile, IRSA, Argentina’s largest shopping mall operator and owner of some of the country’s most valuable retail assets, including Alto Palermo, Patio Bullrich, Alcorta Shopping and DOT, is moving forward with three new developments in the Buenos Aires area and the cities of La Plata and Mar del Plata. The company has not opened a new shopping center since 2015, when it inaugurated a project in the Patagonian province of Neuquén.

“Shopping mall customers are still there. What has changed is that competition on prices is now more intense,” IRSA President Eduardo Elsztain told La Nación.

According to business news outlet iProfesional, the expansion spans multiple sectors. Fashion, beauty, sports equipment, accessories and luxury goods are among the industries seeking to capitalize on Argentina’s new economic environment.

June is expected to be one of the busiest months for store openings. U.S.-based Skechers will open a new location, while Dolce & Gabbana will launch its first store in Argentina.

In July, Bullpadel, a company specializing in padel equipment, will enter the market. Padel has experienced rapid growth across Latin America in recent years.

U.S. apparel company Lucky Brand will enter Argentina through a partnership with local group Oxford. According to La Nación, the company plans an initial $1 million investment, will open its first store in July and aims to develop a network of 30 standalone stores across the country.

The company also plans to align prices with those in the U.S. market to compete with other brands in the segment.

Spanish fashion retailer Mango confirmed its return to Argentina through a franchise agreement with local group Grimoldi. The company plans to open five stores over the next five years, including a first location at Alto Palermo scheduled for September.

Vaccarezza said 2025 was a favorable year for Argentina’s shopping malls, although the trend began to weaken in 2026, with sales declining about 5% in the first quarter compared with the same period a year earlier.

The economist said looser import regulations and previously unmet demand help explain foreign companies’ interest in Argentina. He added that investment decisions by international brands are driven primarily by market-specific studies rather than broader economic indicators.

“It is a calculated risk. Companies have a clear understanding of the consumers they want to reach. The results will become evident later,” he said.

Economist and consultant Néstor Requelme expressed a similar view, saying the arrival of new international brands reflects recent economic changes and the presence of consumers with strong purchasing power.

Martín Burgos, an economist and researcher at the Latin American Faculty of Social Sciences, or Flacso, said the arrival of new companies could increase competition and help lower clothing prices in Argentina, a market that has historically been more expensive than many others.

“There is a policy aimed at reducing clothing prices. For years, apparel prices in Argentina were above international levels, and the easing of import restrictions is facilitating the arrival of these brands,” he told UPI.

However, Burgos agreed that many of the companies entering the country are primarily targeting higher-income consumers, one of the segments that has best withstood recent economic changes.

“The data show that overall consumption remains weak, but these brands are targeting consumers with greater purchasing power. For that reason, their expansion does not necessarily reflect a broad recovery in consumer spending,” he said.

June 9 (UPI) — The European Commission ordered Meta to allow competing artificial intelligence assistants to access WhatsApp while it investigates the company for antitrust violations.

The company must restore access by next week as it was until October, when the competition could use WhatsApp for free.

“In rapidly evolving markets, competition can be lost long before a final decision is adopted. This is why these interim measures will remain in place for the duration of the investigation, in order to prevent harm that would be almost impossible to repair,” Teresa Ribera, executive vice president for Clean, Just and Competitive Transition, said in a statement. “These interim measures will safeguard competition in the growing market for AI assistants, by preserving a key entry point to reach consumers in Europe — WhatsApp — and allowing AI companies to innovate, scale up and reach their full potential.”

The EC began its investigation in December around the same time Italy called foul of the alleged anti-competitive move by the company. Italy folded its complaint into the EC probe. After Brussels warned in February that it may force the company to open back up, in March Meta allowed the other companies in but began charging them fees. Brazil has levied similar complaints.

Meta has said WhatsApp’s business platform was not built to carry AI chatbots and that competitors can reach users through other channels.

“The European Commission has decided that OpenAI and some of the largest companies in the world can use the paid-for WhatsApp Business product for free. This is regulatory overreach subsidized by the many European companies that pay. We will appeal,” a Meta spokesperson told Politico.

Meta is also appealing a $228.34 million fine from the EU for violations of the Digital Markets Act.

If the company ignores the order, it can face fines of up to 10% of its annual revenue.

June 8 (UPI) — British Prime Minister Keir Starmer issued an ultimatum on Monday to tech companies, including Apple and Google, to prevent explicit images from being taken or viewed on children’s mobile phones within three months or face legislation compelling them to comply.

Speaking at the London Tech Week show, Starmer said the initiative, requiring operating system developers to enable nudity-detection software or other technical fixes, was a global first that would make Britain the first country where children would not be able to shoot, share or view naked images.

“For too long, people have been told that [children sharing explicit images] is simply the price of modern tech — that nothing could be done. That government is powerless. That parents just have to accept it,” said Starmer.

“I reject that completely because tech should adapt to the needs of society, not the other way round. If we are serious about unlocking the opportunities that tech can bring then we must also be serious about preventing those who want to abuse it — the online predators.

“That is why today, I am calling for tech companies operating in this country to introduce vice controls that prevent children from sending and receiving sexually explicit images. Because this is not an impossible challenge. If they choose not, then we will act and we will change the law,” he added.

Adult phone users are exempted from the changes, but will be required to complete an age-verification process to prove they are over the age of 18.

The phone companies have until September to make the change or legislation will be introduced to Parliament requiring the appropriate software is installed on all phones and tablets sold in the four countries of the United Kingdom.

Starmer’s move came four weeks after Minister for Safeguarding and Violence Against Women and Girls Jess Phillips resigned, citing his failure to act on her recommendations to remove the ability for children to take explicit photos of themselves or others.

The government dismissed criticism from advocates of privacy and the right to expression, accusing it of trampling on people’s democratic freedoms.

“The government mandating that all phones in Britain require ID and surveillance software is a crossing of the Rubicon that would make the U.K. one of the most authoritarian internet regimes in the world,” said Big Brother Watch director Silkie Carlo.

Silkie warned it also raised the specter of spyware in the pocket of every person with a phone that would end up being “exploited for other purposes before long.”

Home Secretary Shabana Mahmood said the government’s motivation was stopping the coercion and sextortion of children and that it was not interested in “surveilling or policing” people’s phones.

“There is no reporting, no data collection, no monitoring, and no images leaving the device,” she explained.

The leader of the Conservative opposition Kemi Badenoch questioned how it would be achieved and said the approach was piecemeal, saying there needed to be a total ban that included social media for children younger than 16.

The BBC’s science team said the technical hurdles were considerable because so much of the child sexual abuse material was shared via encrypted apps such as WhatsApp, Signal and Discord, where the content being sent cannot currently be detected.

In April, the government announced it will pass legislation banning children from using smartphones in schools in England. The law will only apply to England because education policy is devolved to the parliaments and assemblies of the other countries of the United Kingdom — Scotland, Wales and Northern Ireland.

The law, an amendment to the government’s flagship education and child well-being bill, formalizes what is already policy in many schools but introduces a “clear legal requirement” that would empower them to enforce it — including removing phones from children before class.

The government is currently also running a public consultation on whether to implement an Australia-style ban on social media for children younger than 16 and a separate initiative to develop screen-time guidance for children older than 5, including the minimum age at which a child should be given first phone and how much time they should be on it.

South Korean stocks nosedived more than 8 percent Monday, extending their losing streak to a third consecutive session, as investors dumped market heavyweights on renewed woes over artificial intelligence (AI) profitability and concerns over a possible hawkish pivot of the U.S. Federal Reserve.

The local currency rose against the U.S. dollar after opening at a 17-year low, in the face of verbal intervention by financial authorities.

The benchmark Korea Composite Stock Price Index (KOSPI) plunged 676.18 points, or 8.29 percent, to close at 7,484.41, after falling as low as 7,442.73. The secondary KOSDAQ index sank more than 9 percent to end at 911.39.

The KOSPI’s trade volume was heavy at 448.3 million shares worth 47.8 trillion won (US$31.2 billion), with losers sharply outnumbering winners 873 to 42. Foreigners and institutions dumped local shares worth 355.5 billion won and 1.6 trillion won, respectively, while retail investors scooped up 1.76 trillion won.

The Monday crash was largely anticipated on sharp losses on Wall Street last week, fueled by semiconductor shares’ biggest daily percentage drop since March 2020 and fears over a possible rate hike by the Fed sparked by a hotter-than-expected U.S. jobs report for May.

The Dow Jones Industrial Average closed 1.35 percent lower Friday (local time), while the S&P 500 dipped 2.64 percent and the tech-heavy Nasdaq composite slid 4.18 percent.

Major U.S. chip shares sharply lost ground, with Nvidia slumping 6.2 percent, Broadcom contracting 7.92 percent and Micron shooting down 13.25 percent.

The Korea Exchange (KRX) had activated a circuit breaker for the KOSPI about three minutes after opening, halting trading for 20 minutes, and implemented a consecutive sell-side sidecar at around 9:34 a.m.

The KRX had also issued a sell-side sidecar for the secondary KOSDAQ market about six minutes after opening, suspending trading for five minutes, and activated a circuit breaker for the index later in the day after the KOSDAQ fell by more than 8 percent.

“Today’s pullback appears to be driven not by the weakening of market fundamentals, but by profit-taking sentiment among investors, mainly targeted at the semiconductor sector, as the market reacted more sensitively to negative developments after an extended rally of chip shares,” a report by Samsung Securities said.

The KOSPI has been one of the best performing stock indexes across the world in recent months, surging to near the unprecedented 9,000-point mark on Tuesday last week from the 5,000-point level earlier this year, mainly driven by major semiconductor shares, including Samsung Electronics and SK hynix.

“There is a lot at stake in this week’s financial market, with U.S. inflation data, treasury yields and the ongoing debate over the sustainability of AI-related investment all unfolding simultaneously,” said Seo Sang-young, an analyst at Mirae Asset Securities.

Han Ji-young, a researcher at Kiwoom Securities, also anticipated a “challenging” week for the KOSPI, noting that the release of the U.S. Consumer Price Index for May, the SpaceX listing and Oracle’s earnings results planned for this week may weigh on the market.

Market analysts also said news that Iran and Israel traded strikes dampened investors’ risk appetite, dimming hopes for peace in the Middle East.

Market top-cap Samsung Electronics slid 10.18 percent to 295,500 won, while its chipmaking rival SK hynix dipped 7.68 percent to 1.91 million won.

AI investment firm SK Square nosedived 11.13 percent to 1.12 million won.

Samsung Life Insurance lost 8.97 percent to 375,500 won, and Samsung C&T plunged 11.29 percent to 408,500 won.

Top automaker Hyundai Motor plummeted 8.71 percent to 639,000 won, and its auto parts making affiliate Hyundai Mobis shot down 12.2 percent to 612,000 won.

Leading battery maker LG Energy Solution pulled back 6.16 percent, and its smaller rival Samsung SDI sank 11.44 percent.

Home appliances maker LG Electronics slipped 11.55 percent to 268,000 won, while power plant manufacturer Doosan Enerbility shed 10.25 percent to 85,800 won.

Internet portal operator Naver was among the few winners, jumping 9.2 percent on news that the company is conducting a joint project with U.S. AI chip giant Nvidia to build a massive global AI factory and the nomination of Han Seong-sook, former chief executive officer (CEO) of Naver and incumbent minister of small and medium-sized enterprises (SMEs), as South Korea’s new prime minister.

SK Networks surged 30 percent to 14,170 won on SK Group and Nvidia’s announcement of a broader partnership for AI infrastructure.

The Korean won was quoted at 1,535.0 won against the U.S. dollar at 3:30 p.m., up 4.1 won from the previous session, after opening at 1,555.2 won, the lowest mark since March 6, 2009, when the global markets were in a financial crisis.

The local currency turned higher after financial authorities vowed stern action against excessive volatility and one-sided movements in the foreign exchange market.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 5.8 basis points to 3.940 percent, and the return on the benchmark five-year government bonds gained 7 basis points to 4.190 percent.

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As the World Cup nears, many Iranians say their normal enthusiasm for the event has been dampened by the co-host US’s war against their country as well as economic hardships.

June 7 (UPI) — The Organization of the Petroleum Exporting Countries on Sunday agreed to increase production by nearly 200,000 barrels per day despite the Strait of Hormuz remaining closed, making it near-impossible to ship any of it.

Ordinarily, OPEC increasing oil production among the group of nations that comprise it would lower its cost, but experts have called the move largely symbolic because of the ongoing war in Iran, The New York Times and Wall Street Journal reported.

The Strait of Hormuz, which 20% of the world’s oil supply ordinarily would pass through daily, has been closed since early in the war as part of Iran’s effort to counter the war launched by the United States and Israel in February.

The OPEC members that agreed to the 188,000-barrel increase for July — the fourth month in a row that the group is increasing production — include Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

The countries agreed to the increase as part of the group’s “commitment to support oil market stability” and said the latest production increase would also allow the participating nations to “accelerate their compensation,” OPEC said in a statement.

“The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of a cautious approach,” the group said in the statement.

The Trump administration continues to negotiate an end to the war that would lead to the reopening of the Strait, in addition to working to limit Iran’s ability to build a nuclear weapon, amid a shaky weeks-long cease-fire.