crisis

Local authorities have issued fresh warnings against the risk of wildfires and urged people to take shelter, as Southern Europe experiences the summer’s first severe heatwave and as experts link the rising frequency and intensity of soaring temperatures to climate change.

Acute heatwaves were recorded in Italy, Greece, Spain and Portugal through the weekend and into Sunday, with locals and tourists alike battling the sweltering conditions.

Ambulances were also on standby near tourist hot spots.

Two-thirds of Portugal was on high alert on Sunday for extreme heat and wildfires, with temperatures in Lisbon expected to top 42C (107F).

In Lisbon, 39-year-old pharmacist Sofia Monnteiro told the AFP news agency that despite advising people “not to go out” during the hottest hours of the day, “we have already had some cases of heat strokes and burns”.

Several areas in the southern half of Portugal, including Lisbon, are under a red warning until Monday night due to “persistently extremely high maximum temperature values”, said the Portuguese Institute for Sea and Atmosphere (IPMA).

Much of Portugal was also on high alert Sunday for extreme heat and forest fires – as was the Italian island of Sicily, where firefighters tackled 15 blazes Saturday.

In Italy, a few regions — Lazio, Tuscany, Calabria, Puglia and Umbria — were planning to ban some outdoor work activities during the hottest hours of the day in response to the record-high temperatures. Italian trade unions pushed the government to expand such measures at a national level.

On Sunday, the Italian Health Ministry placed 21 out of 27 monitored cities under its highest heat alert, including top holiday destinations like Rome, Milan and Naples.

Hospital emergency departments across Italy have reported an increase in heatstroke cases, according to Mario Guarino, vice president of the Italian Society of Emergency Medicine.

“We’ve seen around a 10-percent increase, mainly in cities that not only have very high temperatures but also a higher humidity rate,” he told the AFP.

It is mainly elderly people, cancer patients or homeless people, presenting with dehydration, heat stroke, fatigue.”

Greece was again on high wildfire alert with the heatwave there expected to continue throughout the weekend.

A large wildfire broke out south of Athens on Thursday, forcing evacuations and road closures near the ancient Temple of Poseidon.

Greek authorities deployed 130 firefighters, 12 planes and 12 helicopters to battle the blaze, while police evacuated 40 people, with five areas under evacuation orders.

In Spain, locals and tourists were desperately trying to keep cool, as temperatures reached as high as 42C (107F) in the southern city of Seville along with other locations in the south and central parts of the country.

Southern regions of Spain recorded temperatures above seasonal averages, prompting health alerts and safety recommendations from authorities. The country’s State Meteorological Agency (AEMET) has said that June is set to break yet another record, becoming the hottest such month since records started.

The ‘urban heat island’ effect

Extreme weather events are becoming increasingly common across Europe’s southern region due to global warming.

A Lancet Public Health study published last year highlighted the increasing risk of heat-related deaths due to climate change. The study predicted that heat-related deaths could more than quadruple by mid-century under current climate policies.

While more people die from cold than heat, the study stressed that rising temperatures will offset the benefits of milder winters, leading to a significant net increase in heat-related mortality.

Scientists say climate change is stoking hotter and more intense heatwaves, particularly in cities where the so-called “urban heat island” effect amplifies temperatures among tightly packed buildings.

“The heatwaves in the Mediterranean region have become more frequent and more intense in recent years, with peaks of 37 degrees [Celsius, 100F] or even more in cities, where the urban heat island effect raises the temperatures even further,” said Emanuela Piervitali, a researcher at the Italian Institute for Environmental Protection and Research (ISPRA).

Experts have warned that intense heat can affect daily life, especially for vulnerable populations such as the elderly and children.

Local authorities have advised against any physical activity during the hottest hours of the day, and recommended drinking plenty of fluids.

Southern Europe struggles with soaring heat as temperatures hit 40C, sparking fears of wildfires and health risks.

Europeans are braced for the first heatwave of the Northern Hemisphere summer, as climate change pushes thermometers on the world’s fastest-warming continent further into the red.

With temperatures expected to rise to 37 degrees Celsius (99 degrees Fahrenheit) in the Italian capital, Rome, on Saturday, the Eternal City’s many tourists and Catholic pilgrims to the Vatican alike have been converging around the Italian capital’s 2,500 public fountains for refreshment.

In France, with residents of the southern port city of Marseille expected to have to cope with temperatures flirting with 40C (104F), authorities ordered public swimming pools to be made free of charge to help residents beat the Mediterranean heat.

Two-thirds of Portugal will be on high alert on Sunday for extreme heat and forest fires with 42C (108F) expected in the capital, Lisbon.

Meanwhile, visitors to – and protesters against – Amazon tycoon Jeff Bezos’s Friday wedding in Venice were likewise sweltering under the summer sun.

“I try not to think about it, but I drink a lot of water and never stay still, because that’s when you get sunstroke,” Sriane Mina, an Italian student, told AFP news agency on Friday in Venice.

Meanwhile, Spain, which has in past years seen a series of deadly summer blazes ravaging the Iberian peninsula, is expecting peak temperatures in excess of 40C (104F) across most of the country from Sunday.

Scientists have long warned that humanity’s burning of fossil fuels is heating up the world with disastrous consequences for the environment, with Europe’s ever-hotter and increasingly common blistering summer heatwaves a result of the long-term warming.

With peaks of 39C (102F) expected in the cities of Naples and Palermo, Sicily has ordered a ban on outdoor work in the hottest hours of the day, as has the Liguria region in northern Italy.

The country’s trade unions are campaigning to extend the measure to other parts of the country.

In Greece, the first heatwave of the summer arrived on Thursday when a fast-moving wildfire engulfed holiday homes and forest land on a section of the Greek coastline just 40km (25 miles) south of the capital, Athens.

More than 100 firefighters, supported by two dozen firefighting aircraft, battled the wildfire that tore across the coastal area of Palaia Fokaia. The flames were whipped up by high winds as temperatures approached 40C (104F).

The heatwave comes hot on the heels of a series of tumbling records for extreme heat, including Europe’s hottest March ever, according to the European Union’s Copernicus climate monitor.

As a result of the planet’s warming, extreme weather events including hurricanes, droughts, floods and heatwaves like this weekend’s have become more frequent and intense, scientists warn.

Coastal blaze triggers evacuation orders, days after state of emergency declared over fires on Aegean island of Chios.

A fast-moving wildfire has engulfed holiday homes and forest land on a section of the Greek coastline just 40km (25 miles) south of the capital, Athens.

More than 100 firefighters, supported by two dozen firefighting aircraft, battled the wildfire that tore across the coastal area of Palaia Fokaia on Thursday, officials said. The flames were whipped up by high winds as temperatures approached 40 degrees Celsius (104 degrees Fahrenheit) in the country’s first heatwave of the summer.

Fire department spokesman Vassilis Vathrakogiannis told reporters that 40 people had been evacuated by police, with evacuation orders issued for a total of five areas. A seaside roadway running across the affected areas was protectively cordoned off, he added.

The coastguard said two patrol boats and nine private vessels were on standby in the Palaia Fokaia area in case an evacuation by sea became necessary.

“We’re telling people to leave their homes,” local town councillor Apostolos Papadakis said on Greece’s state-run ERT television.

The cause of the fire was not immediately known, but the fire department spokesman said that an arson investigation unit had been sent to the area.

Local mayor Dimitris Loukas said on ERT television that several houses were believed to have been damaged by the blaze.

The wider Athens area, as well as several Aegean islands, were on Level 4 of a 5-level scale measuring the risk of wildfires owing to the weather conditions, with the heatwave expected to last until the weekend.

Early in the week, hundreds of firefighters took four days to bring a major wildfire under control on the eastern Aegean island of Chios, where a state of emergency was declared and more than a dozen evacuation orders issued.

The fire department said one woman had been arrested on suspicion of having contributed to the sparking of that fire.

Greece has spent hundreds of millions of euros to compensate households and farmers for damage related to extreme weather and to acquire new equipment to deal with wildfires.

It has increased its number of firefighters to a record 18,000 this year.

Scientists say human-caused climate change is contributing to extreme weather conditions and extending heatwaves for billions of people across the world.

The Norwegian Refugee Council says the ‘deliberate denial of energy access’ undermines human needs in Gaza.

The lack of reliable energy sources is a key threat to survival in war-torn Gaza, an NGO has warned.

The “deliberate denial of energy access”, like electricity and fuel, “undermines fundamental human needs” in the war-torn enclave, a report published on Monday by the Norwegian Refugee Council (NRC) cautioned. The alert is just the latest regarding the dire humanitarian crisis in Gaza, which is driven by Israel’s blockade amid its war against Hamas.

Israel halted the entry of food, water and fuel in March, putting the Palestinian territory’s population at risk of famine.

Electricity supply has also been limited. The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) estimates that 2.1 million people in Gaza have no access to power.

“In Gaza, energy is not about convenience – it’s about survival,” Benedicte Giaever, executive director of NORCAP, which is part of NRC, said.

“When families can’t cook, when hospitals go dark and when water pumps stop running, the consequences are immediate and devastating. The international community must prioritise energy in all humanitarian efforts,” she added.

NRC’s report noted that without power, healthcare facilities in Gaza have been adversely impacted, with emergency surgeries having to be delayed, and ventilators, incubators and dialysis machines unable to function.

Lack of electricity has also impacted Gaza’s desalination facilities, leaving 70 percent of households without access to clean water and forcing households to burn plastic or debris to cook, NRC said.

The humanitarian organisation also highlighted how the lack of power has increased the risks of gender-based violence after dark.

“For too long, the people of Gaza have endured cycles of conflict, blockade, and deprivation. But the current crisis represents a new depth of despair, threatening their immediate survival and their long-term prospects for recovery and development,” NRC’s Secretary General Jan Egeland said, urging the international community to ensure the people in Gaza gain access to energy.

Amid the humanitarian crisis in Gaza, hundreds of people have been killed by the Israeli military as they have sought food and other vital supplies from aid stations set up by the controversial Israel- and US-backed Gaza Humanitarian Foundation (GHF).

In its latest daily update released on Monday, the Health Ministry in Gaza said the bodies of at least 39 people had been brought to hospitals over the previous 24 hours. At least 317 people were wounded, it added.

Since Israel eased its total blockade last month, more than 400 people are reported to have died trying to reach food distribution points.

The UN’s top humanitarian official in the occupied Palestinian territory issued a stark warning on Sunday over the deepening crisis.

“We see a chilling pattern of Israeli forces opening fire on crowds gathering to get food,” said Jonathan Whittall, who heads OCHA in Gaza and the occupied West Bank.

“The attempt to survive is being met with a death sentence.”

Cambodia’s PM Hun Manet announced that the decision would take effect from midnight on Sunday.

Cambodia has announced it will stop all fuel imports from its neighbour Thailand as relations have plunged to their lowest ebb in more than a decade after a Cambodian soldier was killed last month in a disputed area of the border.

Prime Minister Hun Manet announced the decision on Sunday, posting on social media that it would take effect from midnight.

Manet said energy companies would be able to “import sufficiently from other sources to meet domestic fuel and gas demands” in the country.

Separately, on Sunday, Cambodia’s Foreign Ministry urged its citizens not to travel to Thailand unnecessarily. Concurrently, Thailand’s consular affairs department warned Thais in Cambodia to avoid “protest areas”.

The ongoing escalation between the two countries began last month after a brief exchange of gunfire in the disputed border area killed a Cambodian soldier.

For more than a century, Cambodia and Thailand have contested sovereignty at various un-demarcated points along their 817km (508-mile) land border, which was first mapped by France when it colonised Cambodia in 1907.

But following the soldier’s death, the two countries have taken several measures to secure their borders, with both announcing closures of border checkpoints and crossings.

Leaked phone call

The border dispute created wider political turmoil after a leaked phone call on Wednesday between Thailand’s Prime Minister Paetongtarn Shinawatra and the former Cambodian leader, Hun Sen, who remains a powerful influence in his nation.

During the call, the Thai premier told Hun Sen that she was under domestic pressure and urged him not to listen to “the opposite side”, including a prominent Thai military commander at the border.

Soon after the leak, a major coalition partner, the Bhumjaithai Party, quit the ruling alliance, overshadowing Paetongtarn’s premiership.

But on Sunday, the Thai leader said all coalition partners have pledged support for her government, which she said would seek to maintain political stability to address threats to national security.

Following a meeting with her coalition partners, she said, “The country must move forward. Thailand must unite and push policies to solve problems for the people.”

A rally has, nevertheless, been called for June 28 to demand that Paetongtarn, the daughter of influential former Prime Minister Thaksin Shinawatra, resign.

Iran and Israel have exchanged a barrage of missiles after the United States bombed key Iranian nuclear sites, dramatically escalating tensions in the Middle East.

Iran on Sunday launched two volleys of 27 missiles, targeting Israel’s main Ben Gurion airport near Tel Aviv, research facilities, and command centres, an Iranian state news agency reported.

Air raid sirens were sounded across most of Israel, sending millions of people to safe rooms and bomb shelters as explosions and missile interceptions were seen above the commercial hub of Tel Aviv, Jerusalem, the port city of Haifa, and other parts of the country.

At least 20 people were wounded, according to Israeli emergency workers.

“This is certainly the first time that we have seen two volleys coming in such close succession. Usually, there are hours between each volley of missiles. This time, it was less than half an hour,” said Al Jazeera’s Nour Odeh, reporting from Amman, Jordan.

The targeted areas spanned the occupied Golan Heights in Syria to the Upper Galilee to northern and central Israel, affecting 10 separate sites either directly by missiles or by large shrapnel, Odeh said.

“There is extensive damage in those sites, especially in the Tel Aviv area and Haifa,” Odeh said.

Videos from Tel Aviv and Haifa towards the north showed rescue teams combing through debris, apartments reduced to rubble, mangled cars along a street filled with debris, and medics evacuating injured people from a row of blown-out houses.

In a statement, the Israeli army said it was investigating why no air raid warnings were sounded in Haifa.

Israel also carried out another wave of bombings on “military targets” in western Iran. The Israeli military earlier said its strikes destroyed Iranian missile launchers and targeted soldiers.

The latest exchange of missiles between the Middle Eastern enemies followed the US bombing of Iran’s nuclear sites at Natanz, Isfahan and Fordow, with President Donald Trump saying the attacks had “obliterated” the three facilities.

Trump said Iran’s future held “either peace or tragedy” and that there were many other Iranian targets that could be hit. “If peace does not come quickly, we will go after those other targets with precision, speed and skill,” he said.

Iran responded by saying it “reserved all options” to defend itself and warned of “everlasting consequences” if the US joined the war.

In a statement, Iran’s Ministry of Foreign Affairs condemned the US attacks on its nuclear facilities as a “gross and unprecedented violation” of international law.

“The world must not forget that it was the United States that, in the midst of a diplomatic process, betrayed diplomacy” by supporting Israel’s “aggressive action”, and is now waging “a dangerous war against Iran,” the ministry said.

It has become clear that the US “adheres to no rules or ethics, and in order to advance the aims of a genocidal and occupying regime, spares no lawlessness or crime”, it added.

Meanwhile, Israel said it will temporarily reopen its airspace for flights from 11:00 GMT on Sunday as it repatriates thousands of citizens left stranded overseas by its war with Iran, the country’s airport authority said.

Ben Gurion Airport “will open for landings from 02:00pm-8:00pm as part of Operation Safe Return”, the authority said in a statement, referring to the government’s efforts to bring home citizens.

Most airlines continue to avoid large parts of the Middle East after the US attacks on Iranian nuclear sites, according to the flight tracking website, FlightRadar24.

The amount of money that the city of Los Angeles pays annually for police misconduct, trip and falls, and other lawsuits has ballooned, rising from $64 million a decade ago to $254 million last year and $289 million this fiscal year.

The reasons are complicated, ranging from aging sidewalks to juries’ tendency to award larger judgments to possible shifts in legal strategy at the city attorney’s office to an increase in the sheer number of lawsuits against the city.

The biggest chunk of payouts over the past five years were for “dangerous conditions” — lawsuits singling out faulty city infrastructure, such as broken elevators — at 32%, followed by civil rights violations and unlawful uses of force at 18%, and traffic collisions involving city vehicles also at 18%.

City officials have cited the legal payouts as a significant factor in a nearly $1-billion budget shortfall for fiscal year 2025-26 that was closed with layoffs and other spending cuts.

City Atty. Hydee Feldstein Soto, who took office in December 2022, heads the office that defends the city against lawsuits.

In an interview with The Times and public appearances throughout the city, Feldstein Soto cited a backlog of cases from the COVID-19 pandemic, when courts were barely moving, that were settled or went to trial in recent years.

“Structured settlements” negotiated by her predecessor, Mike Feuer, which are paid out annually rather than in one lump sum, have also contributed to the tab, she said.

Feldstein Soto also said she believes juries are increasingly antagonistic to city governments, resulting in larger verdicts.

Feuer said in an interview that the city was entering into structured settlements before he took office, and he does not believe he increased their use.

To explain the rise in legal liability payouts during his tenure — from about $40 million in 2013 to about $91 million in 2022 — Feuer cited a lack of investment in city infrastructure like streets and sidewalks during the 2008 financial crisis.

In public appearances, Feldstein Soto has sometimes blamed plaintiffs for trying to get financial compensation for what she characterized as risky behavior or interpersonal disputes.

Speaking to the Sherman Oaks Homeowners Association earlier this year, she said that two types of lawsuits — “dangerous conditions” lawsuits and those brought by city employees over working conditions — are ripe for abuse. Some employees who sue the city simply don’t like their bosses, Feldstein Soto said, citing a lawsuit by an LAPD captain, Stacey Vince, who alleged that higher-ups retaliated against her after she complained about her boss. Vince was awarded $10.1 million by a jury, and the city subsequently settled the case for just under $6 million.

Feldstein Soto also described one man who sued the city as an “idiot.” The man was riding his electric scooter without a helmet, Feldstein Soto said, when he crashed on an uneven sidewalk and into a nearby tree, suffering a traumatic brain injury.

According to Feldstein Soto, taxpayers ultimately pay the price for these lawsuits.

“Please understand that every dollar you award is your money,” she said.

The number of lawsuits filed against the city has risen each year since the pandemic, from 1,131 in 2021 to 1,560 in 2024.

At the same time, the average amount the city pays per case has increased dramatically, from under $50,000 in 2022 to $132,180 in 2024. A contributing factor is the increase in payouts of least $1 million, with 17 such cases in 2022 and 39 in 2024. (The city counts settlements or jury verdicts in the fiscal year they are paid out, not when the dollar amount is decided.)

From July 2024 to March 2025, the city paid $1 million or more in 51 lawsuits.

Feldstein Soto said these “nuclear verdicts” cut deep into the city budget and could raise payouts for similar cases in the future.

Total annual payouts in police misconduct cases jumped from $15 million in 2020 to $50 million in 2024. Dangerous conditions cases rose from around $41 million in 2020 to about $84 million in 2024.

Earlier this year, the city paid $21 million to plaintiffs in a series of lawsuits related to a botched LAPD bomb squad fireworks detonation that injured more than 20 people and displaced many residents.

Also this year, the city paid out a $17.7-million verdict to the family of a man with mental health issues killed by an off-duty LAPD officer.

This coming fiscal year, the city increased its allocation for liability payouts from about $87 million to $187 million — far less than what it has been paying in recent years — out of a $14-billion budget.

City Councilmember Eunisses Hernandez, who chairs the council’s public works committee, said the rising payouts stem in part from the city’s long-term lack of investment in infrastructure. The city spent about 10% of its overall budget on streets and other public works last year — substantially less than it spent on police, said Hernandez, who favors a smaller LAPD.

“As a city, we don’t invest in the maintenance of our city,” she said. “I have felt like I’ve been screaming into the void about some of these things.”

In one lawsuit paid out this year, the city agreed to give $3 million to a man who tripped over a slightly uneven sidewalk and suffered a traumatic brain injury.

Last April, the city reached a $21-million settlement with a man whose skull was broken by a street lamp part that fell on him. The city had gone to trial, with a jury awarding the man $22 million, but the parties eventually settled for the slightly lower amount.

“I believe the driving force is the delays and lack of maintenance of the city that has caused an increase in such incidents,” said Arash Zabetian, a lawyer for the man hit by the streetlight.

Some plaintiffs’ attorneys say that Feldstein Soto’s legal strategies are contributing to the rising liability costs. They assert that she is taking more cases to trial, resulting in larger verdicts than if she had settled.

Matthew McNicholas, an attorney who often sues the city on behalf of police officers, said he recently went to trial in five cases and won all of them, for a total payout of more than $40 million.

He would have been happy to settle all five cases for a total of less than $10 million, he said.

One of the lawsuits, which ended with a $13-million verdict, was filed by two male officers accused of drawing a penis on a suspect’s abdomen. The officers alleged that higher-ups did not cast the same suspicion on their female colleagues.

In another of the lawsuits, a whistleblower alleged that he was punished for highlighting problems in the LAPD Bomb Detection K-9 Section. A jury also awarded him $13 million.

“It’s not a tactic to say we’re going to play hardball. It’s just stupid,” McNicholas said. “I am frustrated because she goes and blames my clients and runaway juries for her problems.”

Greg Smith, another plaintiffs’ attorney, said he has also noticed a tendency at Feldstein Soto’s office to push cases to trial.

“Everything is a fight,” Smith said. “I have been suing the city for 30 years, and this has been the worst administration with respect to trying to settle cases.”

Feldstein Soto said her office settles “every case we can.”

“It’s in nobody’s interest to go to trial. It’s a waste of resources,” she said. “But we will not settle cases where we don’t think we’re liable or where the demand is unreasonable.”

To stem the flood of large payouts, Feldstein Soto is looking to Sacramento for help, proposing a bill that would cap lawsuits against California cities at $1 million or three times the economic losses caused by an incident, whichever is greater. Caps on damages exist already in 38 states, according to Feldstein Soto’s office.

She has yet to find a state legislator to sponsor the bill.

Ukraine’s leader was denied a meeting with his most powerful ally, after Donald Trump left the summit a day early.

The Group of Seven summit in Canada has ended without leaders issuing a joint statement in support of Ukraine, as Ukrainian leader Volodymyr Zelenskyy warned that “diplomacy is now in a state of crisis”.

The summit of major industrial democracies, which wrapped up in the Canadian Rocky Mountain resort of Kananaskis late on Tuesday, had been intended to showcase unity on major global issues.

But unlike in previous years, when the group had jointly denounced Russian “aggression” against Ukraine, this time it was unable to issue a statement in support of the embattled Western ally, in a sign of growing differences within the group amid escalating global crises.

Zelenskyy met the leaders of Canada, the United Kingdom, France, Germany, Italy and Japan, along with NATO chief Mark Rutte, on the final day of the conference. However, a meeting with the leader of the group’s most powerful member, the United States – President Donald Trump – did not take place after he left the summit a day early to address the escalating hostilities between Israel and Iran from Washington.

Zelenskyy said after the meeting that he had told the remaining G7 leaders that “diplomacy is now in a state of crisis”, and asked them to continue calling on Trump “to use his real influence” to press for an end to the war, according to a post on his official Telegram account.

Statement on US resistance retracted

A Canadian official initially told reporters on the sidelines of the summit that plans for a joint statement on Ukraine had been dropped after meeting resistance from the US, which wanted to water down the content, news agencies reported.

But Emily Williams, a spokesperson for Canada’s prime minister, later retracted the briefing statement and said “no proposed statement regarding Ukraine was distributed to other leaders”, agencies reported.

A Canadian official said there had never been an attempt to issue a joint statement on Ukraine because of Trump’s wishes to continue negotiating with Russian President Vladimir Putin, the AFP news agency reported.

“It was clear that it would not have been feasible to find detailed language that all G7 partners could agree to in that context,” the official said on condition of anonymity.

Trump had underlined the differences in views towards Russia within the group on Monday, when he said it had been a mistake to expel Moscow from what was formerly the G8 in response to its invasion and annexation of Ukraine’s Crimea in 2014.

Canada pledges military support

Zelenskyy had arrived at the summit calling for support from Ukraine’s allies, and declaring he was ready for peace negotiations.

“We are ready for the peace negotiations, unconditional ceasefire,” he said. “But for this, we need pressure.”

He left with a pledge from Canadian Prime Minister Mark Carney to provide 2 billion Canadian dollars ($1.47bn) in new military assistance for Kyiv, as well as to impose new financial sanctions on Russia.

Trump did agree to a group statement before his departure, calling for a resolution of the Israel-Iran conflict. The statement, issued on Monday, backed Israel, calling Iran the principal source of regional instability and terror, and asserting that Israel has the right to defend itself.

The statement called for a “de-escalation of hostilities”, despite some bellicose social media posts from Trump hinting at greater US military involvement in the conflict.

Published on
18/06/2025 – 8:06 GMT+2

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Asian shares were mixed and oil prices remained high on Wednesday as investors closely tracked the escalation of the conflict in the Middle East.

US benchmark crude oil was down around 0.43% at $74.52 per barrel in the afternoon in Asia — or the morning in Europe. Brent crude, the international standard, slipped around 0.43% at $76.12, although both WTI and Brent remain historically high on the month.

Crude prices rose more than 4% on Tuesday after US President Donald Trump left a Group of Seven summit in Canada early and warned that people in Iran’s capital should evacuate immediately.

Within about eight hours, Trump went from suggesting a nuclear deal with Iran remained “achievable” to urging Tehran’s 9.5 million residents to flee for their lives. Iran and Israel continued to exchange air strikes on Wednesday.

The fighting has driven prices for crude oil and gasoline higher because Iran is a major oil exporter and it sits on the narrow Strait of Hormuz, through which much of the world’s crude passes. Past conflicts in the area have caused spikes in oil prices, though they’ve historically proven brief after showing that they did not disrupt the flow of oil.

Japan, meanwhile, reported that its exports fell in May as the auto industry was hit by Trump’s higher tariffs, with exports to the US falling more than 11%. But Tokyo’s Nikkei 225 jumped 0.78% to 38,837.48.

Hong Kong’s Hang Seng dropped 1.17% to 23,698.65 while the Shanghai Composite Index rose 0.3% to 3,388.77.

The Kospi in Seoul gained 0.54% to 2,966.20 while Australia’s S&P/ASX 200 shed 0.1% to 8,533.10.

On Tuesday, US stocks slumped under the weight of higher oil prices and weaker than expected retail sales in May.

Trump raised the temperature on Israel’s fight with Iran by calling for “Unconditional surrender!” on his social media platform and saying, “We are not going to” kill Iran’s leader, “at least for now”.

The S&P 500 fell 0.8% to 5,982.72 and the Dow Jones Industrial Average dropped 0.7% to 42,215.80. The Nasdaq composite fell 0.9% to 19,521.09.

On early Wednesday morning in the US, S&P futures rose 0.11% to 5,991.50, Dow Jones futures increased less than 1% to 42,245.00, while Nasdaq futures advanced by 0.13% to 21,759.00.

The markets will be looking to the Federal Reserve as it makes a decision on its interest rates today. The nearly unanimous expectation among traders and economists is that the Fed will make no move.

In currency trading early Wednesday, the US dollar fell 0.2% to 144.94 Japanese yen. The euro edged 0.18% higher, to $1.1502.

Crude oil prices jump more than 4 percent amid fears the US may join Israel’s offensive against Iran.

Oil prices have spiked amid fears that the Israel-Iran crisis could spiral into a broader conflict involving the United States.

Brent North Sea Crude and West Texas Intermediate – the two most popular oil benchmarks – rose 4.4 percent and 4.3, respectively, on Tuesday as US President Donald Trump demanded “unconditional surrender” from Tehran.

The benchmarks stood at $76.45 per barrel and $74.84 per barrel, respectively, following the jump.

Oil prices edged up further in early trading on Wednesday, with both benchmarks about 0.5 percent higher as of 03:30 GMT.

US stocks fell on the rising geopolitical tensions overnight, with the benchmark S&P500 and tech-heavy Nasdaq Composite declining 0.84 percent and 0.91 percent, respectively.

Israel has bombed multiple oil and gas facilities in Iran since Friday, including the South Pars gasfield, the Fajr Jam gas plant, the Shahran oil depot and the Shahr Rey oil refinery.

While there has been little disruption to global energy flows so far, the possibility of escalation – including direct US involvement in Israel’s military offensive – has put markets on edge.

On Tuesday, Trump ratcheted his rhetoric against Iran, adding to fears that his administration could order a military strike against Iran’s uranium enrichment facility at Fordow.

In a thinly veiled threat against Iranian Supreme Leader Ayatollah Ali Khamenei, Trump said in a Truth Social post that the US knew his location but did not want him killed “for now”.

Iran has the world’s third-largest reserves of crude oil and second-largest reserves of gas, though its reach as an energy exporter has been heavily curtailed by US-led sanctions.

The country produced about 3.99 million barrels of crude oil per day in 2023, or 4 percent of global supply, according to the US Energy Information Administration.

Iran also sits on the Strait of Hormuz, which serves as a conduit for 20-30 percent of global oil shipments.

Nearly all of Iran’s oil exports leave via the Kharg Island export terminal, which has so far been spared from Israeli bombing.

“In the context of seeking to destabilize Iran, Israel may choose to strike its oil exports, believing that working to finish off a hostile regime is worth the risk of alienating allies concerned with potential price escalation,” Clayton Seigle, a senior fellow at the Center for Strategic and International Studies in Washington, DC, wrote in an analysis on Monday.

“Israeli strategists are likely well aware that Iran’s oil export capacity is quite vulnerable to disruption. Its offshore oil export terminal at Kharg Island accounts for nearly all of its 1.5 million barrels per day average export volume.”

Sao Paulo, Brazil – In the far north of Brazil, where the Amazon River collides with the sea, an environmental dilemma has awakened a national political debate.

There, the Brazilian government has been researching the possibility of offshore oil reserves that extend from the eastern state of Rio Grande do Norte all the way to Amapá, close to the border with French Guiana.

That region is known as the Equatorial Margin, and it represents hundreds of kilometres of coastal water.

But critics argue it also represents the government’s conflicting goals under Brazilian President Luiz Inácio Lula Da Silva.

During his third term as president, Lula has positioned Brazil as a champion in the fight against climate change. But he has also signalled support for fossil fuel development in regions like the Equatorial Margin, as a means of paying for climate-change policy.

“We want the oil because it will still be around for a long time. We need to use it to fund our energy transition, which will require a lot of money,” Lula said in February.

But at the start of his term in 2023, he struck a different stance. “Our goal is zero deforestation in the Amazon, zero greenhouse gas emissions,” he told Brazil’s Congress.

As the South American country prepares to host the United Nations Climate Change Conference (COP30) later this year, those contradictions have come under even greater scrutiny.

Nicole Oliveira is one of the environmental leaders fighting the prospect of drilling in the Equatorial Margin, including the area at the mouth of the Amazon River, known as Foz do Amazonas.

Her organisation, the Arayara Institute, filed a lawsuit to block an auction scheduled for this week to sell oil exploration rights in the Equatorial Margin. She doubts the government’s rationale that fossil-fuel extraction will finance cleaner energy.

“There is no indication of any real willingness [from the government] to pursue an energy transition,” Oliveira said.

“On the contrary, there is growing pressure on environmental agencies to issue licenses and open up new areas in the Foz do Amazonas and across the entire Equatorial Margin.”

Last Thursday, the federal prosecutor’s office also filed a lawsuit to delay the auction, calling for further environmental assessments and community consultations before the project proceeds.

A government reversal

The fate of the Equatorial Margin has exposed divisions even within Lula’s government.

In May 2023, the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) — the government’s main environmental regulator — denied a request from the state-owned oil company Petrobras to conduct exploratory drilling at the mouth of the Amazon River.

In its decision, the IBAMA cited environmental risks and a lack of assessments, given the site’s “socio-environmental sensitivity”.

But Petrobras continued to push for a licence to drill in the region. The situation escalated in February this year when IBAMA again rejected Petrobras’s request.

Lula responded by criticising the agency for holding up the process. He argued that the proceeds from any drilling would help the country and bolster its economy.

“We need to start thinking about Brazil’s needs. Is this good or bad for Brazil? Is this good or bad for Brazil’s economy?” Lula told Radio Clube do Para in February.

On May 19, the director of IBAMA, a politician named Rodrigo Agostinho, ultimately overruled his agency’s decision and gave Petrobras the green light to initiate drilling tests in the region.

Petrobras applauded the reversal. In a statement this month to Al Jazeera, it said it had conducted “detailed environmental studies” to ensure the safety of the proposed oil exploration.

It added that its efforts were “fully in line with the principles of climate justice, biodiversity protection, and the social development of the communities where it operates”.

“Petrobras strictly follows all legal and technical requirements established by environmental authorities,” Petrobras wrote.

It also argued that petroleum will continue to be a vital energy source decades into the future, even with the transition to low-carbon alternatives.

Roberto Ardenghy, the president of the Brazilian Petroleum and Gas Institute (IBP), an advocacy group, is among those who believe that further oil exploitation is necessary for Brazil’s continued growth and prosperity.

“It is justified — even from an energy and food security standpoint — that Brazil continues to search for oil in all of these sedimentary basins,” he said.

Ardenghy added that neighbouring countries like Guyana are already profiting from “significant discoveries” near the Equatorial Margin.

“Everything suggests there is strong potential for major oil reservoirs in that region. The National Petroleum Agency estimates there could be around 30 billion barrels of oil there. That’s why we’re making such a major effort,” he said.

A ‘risk of accidents’

But critics have argued that the area where the Amazon River surges into the ocean comprises a delicate ecosystem, lush with mangroves and coral reefs.

There, the pink-bellied Guiana dolphin plies the salty waters alongside other aquatic mammals like sperm whales and manatees. Environmentalists fear exploratory drilling could further endanger these rare and threatened species.

Indigenous communities at the mouth of the river have also resisted Petrobras’s plans for oil exploration, citing the potential for damage to their ancestral fishing grounds.

In 2022, the Council of Chiefs of the Indigenous Peoples of Oiapoque (CCPIO) formally requested that the federal prosecutor’s office mediate a consultation process with Petrobras, which has not taken place to this date.

The federal prosecutor’s office, in announcing Thursday’s lawsuit, cited the risk to Indigenous peoples as part of its reasoning for seeking to delay the auction.

“The area is home to a vast number of traditional peoples and communities whose survival and way of life are directly tied to coastal ecosystems,” the office said.

However, in its statement to Al Jazeera, Petrobras maintains it had a “broad communication process” with local stakeholders. It added that its studies “did not identify any direct impact on traditional communities” resulting from the drilling.

But some experts nevertheless question the safety of oil exploration in the region, including Suely Araujo, who used to chair IBAMA from 2016 to 2018.

Now the public policy coordinator for the advocacy coalition Observatório do Clima, Araujo pointed to practical hurdles like the powerful waters that gush from the Amazon River into the ocean.

“The area is quite complex, with extremely strong currents. Petrobras has no previous exploration experience in a region with currents as strong as these,” Araujo said. “So it’s an area that increases the risk of accidents even during drilling.”

Still, she fears there is little political will within the Lula government to stop the oil exploration — and that awarding drilling licences could be a slippery slope.

“All the evidence is there for this licence to be approved soon,” she said, referring to the project planned near the river mouth.

“The problem is that if this licence gets approved — let’s say, the 47 new blocks in the Foz do Amazonas that are now up for auction — it will become very difficult for IBAMA to deny future licences, because it’s the same region.”

Oliveira, whose organisation is leading the legal fight against the exploration licences, echoed that sentiment. She said it is necessary to stop the drilling before it starts.

“If we want to keep global warming to 1.5 degrees [Celsius], which is where we already are,” she said, “we cannot drill a single new oil well”.

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