Economy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Al Jazeera could not independently confirm the Financial Times report.

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

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

BlackRock declined to comment.

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

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

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

United States President Donald Trump said on Sunday that he wishes to “take the oil” in Iran, as the US-Israel war against Iran enters its second month.

On Monday, President Trump threatened to target Iran’s energy infrastructure, including oil wells, if Tehran does not reopen the Strait of Hormuz, which has been under a de facto Iranian blockade for weeks, triggering a global energy crisis.

The Trump administration has unveiled no clear goal behind its military campaign against Iran, one of the world’s biggest oil producers and under US sanctions for decades.

Here is more about what Trump says, how much oil Iran has, and whether Trump could take it.

What has Trump said about Iran’s oil?

Trump told the Financial Times that his “preference would be to take the oil” in Iran and that US forces could seize Iran’s export hub at Kharg Island.

Kharg is a 22-square-kilometre (8.5-square-mile) coral outcrop in Iran’s Bushehr province. Closely guarded by the Islamic Revolutionary Guard Corps (IRGC), entry to the island is restricted to those with official security clearance.

Kharg processes 90 percent of Iran’s total oil exports, handling approximately 1.5 million barrels every day.

On March 14, Trump announced that the US Air Force had bombed Iranian military facilities on the island.

“For reasons of decency, I have chosen NOT to wipe out the Oil Infrastructure on the Island. However, should Iran, or anyone else, do anything to interfere with the Free and Safe Passage of Ships through the Strait of Hormuz, I will immediately reconsider this decision,” Trump wrote on Truth Social.

Critics say the Trump administration was emboldened by the success of its brazen military operation in January to abduct Venezuelan President Nicolas Maduro from Caracas. Washington says it is now in control of Venezuela’s oil exports.

Earlier this month, Trump claimed that 100 ⁠million barrels of Venezuelan oil had been brought to refineries in Houston, Texas in the US. He added that ⁠an additional 100 ⁠million barrels of Venezuelan ⁠oil were on the way.

Ties between Venezuela, which has the world’s largest proven reserves of crude oil, and Washington had deteriorated under former President Hugo Chavez, who decided to nationalise the oil sector. Relations collapsed further under Maduro, who succeeded Chavez in 2013. Venezuela’s current interim president, Delcy Rodriguez, has since opened the sector for private investment.

How much oil does Iran have?

Iran is one of the world’s biggest oil producers.

The country holds the world’s second-largest proven natural gas reserves and the third-largest crude oil reserves, according to the United States Energy Information Administration.

Iran holds around 24 percent of the Middle East’s and 12 percent of the world’s proven oil reserves, with about 157 billion barrels of proven crude oil.

It is the ninth-largest oil producer globally, and the fourth-largest within the Organization of the Petroleum Exporting Countries (OPEC), producing about 3.3 million barrels of crude oil per day.

Before the war, Iran was exporting around two million barrels of crude and refined fuel each day, though its exports dropped dramatically after Trump slapped sanctions on Iran in 2018 during his first term in power. The Iran nuclear deal signed under US President Barack Obama in 2015 – the Joint Comprehensive Plan of Action (JCPOA) – placed limits on Iran’s nuclear programme in exchange for sanctions relief in place for decades.

The US cut diplomatic ties with Iran after pro-Washington ruler Shah Mohammad Reza Pahlavi was toppled in the 1979 Islamic Revolution and the subsequent hostage crisis involving US citizens.

Can the US seize Iranian oil?

The Pentagon is preparing for limited ground operations in Iran, potentially including raids on Kharg Island and coastal sites near the Strait of Hormuz, according to US officials quoted by the Washington Post newspaper.

The plans, which fall short of a full invasion, could involve raids in special operations and by conventional infantry troops, the newspaper reported on Saturday.

However, even if the US invades or occupies Kharg Island, this would not give the US access to Iranian oil.

In order to access Iranian oil, the US would have to occupy Iran’s oil production sites and refineries. In essence, the US would need to occupy mainland Iran.

What would it mean if the US were to take Iranian oil?

In 2023, Iran’s gross domestic product (GDP) was around $457.5bn, according to World Bank data.

In the same year, Iran’s net oil export revenues were estimated at $53bn.

That export figure is equivalent to roughly 12 percent of Iran’s GDP, although export revenues and GDP are not directly comparable.

At the same time, if the US were to lift sanctions on Iranian oil after seizing it, it could lead to a flow of more Iranian oil into global markets, bringing down oil prices.

Iran is one of the most heavily sanctioned countries in the world. The US first imposed sanctions on Iran in November 1979, after Iranian students stormed its embassy in Tehran and took Americans hostage. The hostage crisis ended when dozens of US citizens were released after more than a year.

The US-Israeli war on Iran has sent global oil prices soaring. Benchmark Brent crude rose to more than 3 percent on Monday to $116 a barrel – the highest level in nearly two weeks. The oil price was about $65 per barrel before the war.

Has the US tried to interfere in Iranian oil before?

Yes; this is not the first time the US has shown an interest in Iranian oil.

In 1953, the government of Mohammad Mossadegh, Iran’s first democratically elected prime minister, was toppled in a CIA-orchestrated coup after he nationalised the British-controlled firm Anglo‑Iranian Oil Company (AIOC), the predecessor of modern-day BP.

Washington framed the operation – codenamed “Operation Ajax” – as a Cold War necessity to keep Iran and its energy reserves out of Soviet hands.

The coup restored and entrenched the shah’s rule, a turning point that still haunts Iran’s relationship with the West.

Neighbouring Iraq’s oil revenue is still effectively under US control more than two decades after the US invaded the Middle East nation. Iraq’s oil revenues are deposited into an account at the Federal Reserve Bank in the US before making it to Baghdad.

DEVELOPING STORYDEVELOPING STORY,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

More to follow…

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

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

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

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

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

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

Rubio calls toll plan ‘unacceptable’

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

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

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

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

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

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

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

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

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

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

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

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

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

Achieving goals ‘without any ground troops’?

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

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

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

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

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

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

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

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

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

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

As the United States-Israeli war on Iran enters its fourth week this weekend, pressure on oil and gas markets continues to mount due to severe disruption to shipping traffic through the Strait of Hormuz as well as attacks on and around key energy facilities in the Gulf.

In peacetime, 20 percent of the world’s oil and gas is shipped from producers in the Gulf through the Strait of Hormuz – the only route to the open ocean – including 20 million barrels of oil per day.

To bridge the shortage its closure has caused, countries in the Middle East are exploring alternative routes to get energy exports out.

In this explainer, we look at three major pipelines in the Middle East that producers may be pinning their hopes on, and whether they can fill the gap.

What has happened in the Strait of Hormuz?

On March 2 – two days after the US and Israel began strikes on Iran – Ebrahim Jabari, a senior adviser to the commander-in-chief of Iran’s Islamic Revolutionary Guard Corps (IRGC), announced that the strait was “closed”. If any vessels tried to pass through, he said, the IRGC and the navy would “set those ships ablaze”. Since then, traffic through the strait has plunged by more than 95 percent.

Iranian officials have most recently stated that the strait is not completely closed – except to ships belonging to the US, Israel and those who collaborate with them – but have also laid down new ground rules. Any vessel must secure Tehran’s approval to transit through the narrow waterway.

As a result, over the past fortnight, countries have been scrambling to do deals with Iran to secure safe passage and a few, mostly Indian, Pakistani and Chinese-flagged tankers have been allowed to pass.

On Thursday, Malaysian Prime Minister Anwar Ibrahim thanked Tehran for granting Malaysian vessels “early clearance” through the strait.

Meanwhile, about 2,000 ships flying the flags of other nations are stuck on either side of the strait.

Which oil pipelines could serve as alternate routes?

The only alternative to shipping oil is piping it across land or under the sea. Three oil pipelines could work as ways around the Strait of Hormuz, including:

Saudi Arabia’s East-West Pipeline

The East-West pipeline is also known as the Petroline and is operated by Saudi oil giant Aramco. Aramco is one of the world’s largest companies, with a market capitalisation exceeding $1.7 trillion and annual revenues of $480bn. The oil giant controls 12 percent of global oil production, with a capacity of more than 12 million bpd.

It is a 1,200km (745-mile) pipeline which runs from the Abqaiq oil processing centre close to the Gulf in Saudi Arabia to the Yanbu port on the Red Sea, on the other side of the country.

However, the pipeline does not have the capacity to fully make up for the Hormuz closure.

In 2024, about 20 million barrels per day (bpd) passed through the Strait of Hormuz, according to data from the United Nations. Crude oil and condensate made up 14 million bpd of this, while petroleum was the remaining 6 million bpd.

The East-West pipeline has the capacity of transporting up to 7 million bpd. On March 10, Aramco said about 5 million bpd could be made available for exports, while the rest could supply local refineries.

Since the US-Israeli war on Iran began at the end of February, Saudi Arabia has ramped up its oil flow through this pipeline. In January and February, an average of 770,000 bpd flowed through the pipeline, according to data from Kpler, a data and analytics company. By Tuesday this week, this had increased to an average of 2.9 million bpd.

However, using the Saudi pipeline still carries a risk.

The Houthis, an Iran-backed Yemeni armed group whose attacks on ships in the Red Sea caused global shipping chaos during Israel’s genocidal war in Gaza from 2023 to 2025, could target the Bab al-Mandeb Strait, which connects the Red Sea to the Gulf of Aden, and the Indian Ocean beyond.

An unnamed Houthi leader told the Reuters news agency that the Houthis remain ready to attack the Red Sea again in solidarity with Tehran, the agency reported on Thursday.

“We stand fully militarily ready with all options. As for other details having to do with determining zero hour they are left to leadership and we are monitoring and following up with the developments and will know when is the suitable time to move,” the Houthi leader said.

The Bab al-Mandeb is the southern outlet of the Red Sea, situated between Yemen on the Arabian Peninsula and Djibouti and Eritrea on the African coast.

It is one of the world’s most important routes for global seaborne commodity shipments, particularly crude oil and fuel from the Gulf bound for the Mediterranean via the Suez Canal or the SUMED pipeline on Egypt’s Red Sea coast, as well as commodities bound for Asia, including Russian oil.

The Bab al-Mandeb is 29km (18 miles) wide at its narrowest point, limiting traffic to two channels for inbound and outbound shipments.

Iran could open a new front in the Bab al-Mandeb Strait if attacks are carried out on Iranian territory or its islands, Iran’s semiofficial Tasnim cited an unnamed Iranian military source as saying on Wednesday.

UAE’s Abu Dhabi Crude Oil Pipeline

The Abu Dhabi Crude Oil Pipeline is also called the ADCOP or the Habshan-Fujairah pipeline.

The 380km pipeline runs from Habshan, an oil and gasfield in the southwestern area of Abu Dhabi, United Arab Emirates, to the port of Fujairah on the Gulf of Oman.

The pipeline, which became operational in 2012, has a capacity of about 1.5 million barrels per day (bpd). It is unclear how much is now being transported through the pipeline.

However, oil exports from Fujairah do appear to have risen in the past month despite the closure of the strait, averaging 1.62 million bpd in March compared with 1.17 million bpd in February, according to Kpler analyst Johannes Rauball, who spoke to Reuters.

Iraq-Turkiye Crude Oil Pipeline

The Iraq-Turkiye Crude Oil Pipeline, also called the Kirkuk-Ceyhan Pipeline, links Iraq to the Mediterranean coast of Turkiye.

The pipeline, which has the capacity of 1.6 million bpd, currently carries about 200,000bpd.

Iraq is among the top five global producers of oil and is the second largest within the Organization of the Petroleum Exporting Countries (OPEC), exceeding 4 million bpd.

Can these pipelines replace the Strait of Hormuz?

No. While these pipelines can take on some of the capacity of Hormuz, their combined capacity is only about 9 million bpd, compared with about 20 million bpd for the strait.

Additionally, these pipelines are land-based and within the range of Iranian missiles and drones, which makes them just as vulnerable to attacks and damage in the ongoing conflict as ships travelling through the strait. Throughout the war, energy infrastructure all over the Gulf has suffered strikes.

Are there other options?

Theoretically, oil can be transported on trucks, but this is costly, slow and inefficient.

A standard truck can carry anywhere between 100 to 700 barrels per day, depending on the number of trips. Hundreds of thousands of barrels would be needed to meet needs, requiring thousands of trucks, which could also be targeted in strikes.

Malaysian leader says oil tankers granted clearance by Iran as government introduces measures to conserve fuel.

Iran has allowed Malaysian ships to pass through the Strait of Hormuz, Malaysia’s leader said, amid the global energy crunch driven by the United States and Israel’s war with Tehran.

In a televised address on Thursday, Malaysian Prime Minister Anwar Ibrahim expressed thanks to Iran’s President Masoud Pezeshkian for granting Malaysian vessels “early clearance” through the waterway, which has been effectively closed by Tehran.

“We are in the process of securing the release of the Malaysian oil tankers and the workers involved so they can continue their journey home,” Anwar said.

Anwar did not elaborate on how many vessels had cleared the strait, which normally facilitates the transport of about one-fifth of global oil and liquefied natural gas (LNG) supplies, or under what conditions the vessels were cleared for safe passage.

The Malaysian government, which has traditionally pursued a policy of non-alignment in international affairs, did not immediately respond to requests for comment.

Anwar said that while Malaysia had been affected by the disruption to energy supplies, the Southeast Asian country was in a “much better position” than other nations due to the capacity of the state-run oil and gas company Petronas.

As one of the world’s top suppliers of LNG, Malaysia is a net energy exporter, but the country imports nearly 70 percent of its crude oil from the Gulf region.

Anwar said his government would take a series of measures to conserve fuel, including reducing the individual monthly quota for subsidised petrol and “gradually and selectively” moving civil servants onto work-from-home arrangements.

“Food supplies are affected; prices will certainly rise. Fertiliser as well, and of course, oil and gas,” Anwar said.

“So there are steps we need to take. There are countries whose impacts are far worse than ours, but that does not mean we are spared entirely,” he said.

While Iran has stated that the strait is open to ships that are not aligned with the US or Israel, Tehran has claimed the right to exercise control over the waterway and admitted responsibility for at least two of 20 documented attacks on commercial vessels in the region.

Iran’s parliament is also pushing legislation that would establish a toll system in the strait amid reports that Iranian authorities have been demanding vessels fork over as much as $2m to guarantee their safe passage.

Five ships were tracked transiting the strait via their automatic identification systems on Wednesday, up from four the previous day, according to maritime intelligence company Windward.

Before the war, an average of 120 vessels transited the waterway each day, according to Windward.

Providing extra comfort for their economy passengers, a major airline that flies from the UK to more than 340 destinations, is set to launch seats that turn into a ‘flat bed’

A major airline flying to popular holiday destinations from the UK is introducing economy seats that transform into a ‘flat bed’.

United Airlines, which flies from the UK to more than 340 destinations worldwide, will launch a new dedicated row of three economy seats that can transform into a “lie-flat mattress-like space”. It will give passengers more room on long-haul flights while flying in economy.

The new seats will be individually adjustable with leg rests that fold up to a 90-degree angle, so travellers can either stretch out while watching a movie or use it as a bed to catch a restful night’s sleep. Passengers will be treated to a “custom-fitted mattress pad, specially sized blankets, extra pillows” as the seats adjust into a flat bed after takeoff.

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Children in the dedicated row will also receive a plush toy and a family travel kit as part of the additional amenities. The airline noted that the launch of the ‘United Relax Row’ will be ideal for families with young children, couples and solo travellers who would like more space.

After United Airlines shared the news on X, formerly Twitter, it was met with enthusiasm from travellers. One commented: “This is brilliant and I bet everyone is going to copy it.”

“Much needed. United is innovating faster than anyone”, a second said. A third added: “This is a brilliant and thoughtful idea to make customers feel more comfortable. Well done!”

“Gamechanger for travelling with small kids”, another traveller noted. “Brilliant, you have hooked me for many years but with this may be I am now double hooked. This is super helpful especially on those night European routes,” one more said.

Once launched, the initiative will be a first for a North American airline offering this type of seat and comfort for economy passengers. United Airlines flies from the UK to popular holiday destinations such as New York, LA, Chicago and Orlando.

The United Relax Row is expected to launch in 2027, with plans to offer the extra space on more than 200 of its Boeing 787 and 777 widebody aircraft by 2030. There will be up to 12 United Relax Row sections on each plane, located between United Economy and United Premium Plus.

United’s Executive Vice President and Chief Commercial Officer, Andrew Nocella, said: “As a leading premium airline, we’re committed to delivering new, industry-leading experiences for all of our customers – and the United Relax Row is the perfect example of that. Customers travelling in United Economy on long-haul flights deserve an option for more space and comfort, and this is one way we can deliver that for them.

“United is the only North American airline offering a product like the United Relax Row and is one of the many reasons why we’re continuing to win brand loyal customers.”

For more information or to check flights with United Airlines, you can visit their website.

Do you have a travel story to share? Email webtravel@reachplc.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Shifting momentum

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

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

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

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

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

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

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

AN American airline’s plan for new couches in economy has been hailed as a “game changer.”

It means a far more comfortable flight for travelers seeking additional space to sleep.

United Airlines has announced a “relaxed row” to allow travelers to stretch out and have a better rest in economy class.

It involves transforming economy seats into a couch between two rows of seats.

The initiative will provide more comfortable international travel, the airline said yesterday.

“Customers will get a custom-fitted mattress pad, specially sized blankets, extra pillows and a stuffed plush for children to help create a cozy, tranquil environment,” the carrier explained.

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“Sounds like heaven to me,” said one thrilled customer.

United‘s relax row option is expected to be available from 2027.

Prices for the perk haven’t been released as yet.

“Customers traveling in United economy on long-haul flights deserve an option for more space and comfort, and this is one way we can deliver that for them,” said Andrew Nocella, executive VP.

Once available, United will be “the first North American airline to offer this kind of seating option and holds North American exclusivity on the design,” the carrier said.

The lie-down couch-style seating will eventually be rolled out across some 1,000 United planes by 2030.

More on United Airlines’ ‘relaxed row’ economy seats that transform into a couch

The option will be available for United customers traveling in the economy cabin on long-haul flights from 2027

A new, dedicated row of three seats will be outfitted with individually adjustable leg rests that fold up at a 90-degree angle.

The formation of the couch will create more room to sleep, stretch out or watch a movie.

Customers traveling in United relax row will receive additional amenities for their international flight.

This includes a custom-fitted mattress pad, a specially sized plush blanket, two additional pillows, as well as a plush toy and children’s travel kit for families.

The airline plans to offer it on more than 200 Boeing 787 and 777 widebody aircraft by 2030.

The seats will be located between United economy and premium plus, with up to 12 relax row sections on each plane.

They aren’t just available for families, as single travelers can also purchase the row, added United.

Source: United Airlines YouTube

Around nine to 12 couches will be available per aircraft.

The seats will have individually adjustable, flip-up leg rests.

These can then be angled to create more room to sleep, stretch out or watch a movie.

Their provision follows a similar option offered by Air New Zealand, which already offers a row of economy seats that convert into a lie-flat couch after takeoff.

Travelers commenting on United’s version have said that it will be worth the extra money.

“I’ve used the sky couch a bunch, and for traveling with young kids on long haul flights it’s an absolute game changer, worth every penny,” raved one flyer on Reddit yesterday.

“I love the skycouch on Air New Zealand and have used it multiple times between the US and Auckland,” wrote another traveler.

“Obviously you don’t get the bells and whistles of a first class seat, but the lie flat feature is the only thing that allows me to sleep on airplanes so for me it’s perfect.”

“Family and I use the Air NZ sky couch every time we travel between NZ/US,” shared one parent.

“It’s a game changer and we always choose Air NZ for that reason. Will start looking seriously at UAL now for our travels.”

IF you thought being able to lay down on a plane was just for first and business class, think again.

United Airlines is introducing a new ‘Relax Row’ making travel in economy much more comfortable.

Launching in 2027, the Relax Row is a dedicated row of three seats that can transform into a ‘couch’, or lie-flat bed.

The seats will be designed with adjustable leg rests that can fold up and mattress pad placed on top.

Travellers can then stretch out whether they want to spend their journey sleeping or watching a film.

The airline said: “The United Relax Row is ideal for families traveling with small children, solo travelers and couples who want the value of United Economy but with a little extra comfort.”

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Along with a mattress pad, those on the Relax Row will get blankets, extra pillows, a toy and children’s travel kit.

The new Relax Row will appear on United Airlines aircraft in 2027.

By 2030, the airline said it will be on more than 200 of its Boeing 787 and Boeing 777 widebody aircraft with 12 Relax Row sections on each plane.

Andrew Nocella, United’s Executive Vice President and Chief Commercial Officer said: “Customers traveling in United Economy on long-haul flights deserve an option for more space and comfort, and this is one way we can deliver that for them.

“United is the only North American airline offering a product like the United Relax Row and is one of the many reasons why we’re continuing to win brand loyal customers.”

The cost of the new seat option is yet to be confirmed.

United Airlines has other perks for families including free family seating, which allows children under 12 to sit next to an accompanying adult for free at time of booking.

And while United Airlines will be the first North American airline to offer lie-flat seats in economy, there other airlines who already offer this for their passengers.

Air New Zealand has its Skycouch which is the same – a row of three economy seats that transform into a lie-flat bed.

Lufthansa have what they call the Sleeper’s Row which is for long-haul flights that are over 11 hours long.

Passengers get a full row of three or four seats with a mattress topper, pillow, and blanket at the airport.

The additional charge for this is between €169–€249 (£146.28-£215.52).

For more on airlines, here are the best ones in the world – and one in the UK makes the list.

And from one Travel Writer who has visited 50 countries – here’s why she rates this much-loathed budget airline.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Currency depreciation

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

OpenAI announced the move publicly on Tuesday.

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

Messy process

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

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

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

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

NEW economy seats being rolled out on easyJet flights will give passengers even more legroom, in a rare move.

More than ever, budget airlines are trying to squeeze in more passengers in an attempt to keep costs down.

But easyJet has reveals the “next generation” seats which will actually give you more space.

Designed by Mirus Aircraft Seating, the new Kestrel seats are much slimmer then standard seats as they’re made from carbon fibre rather than plastic.

They also weigh less, coming in at just under 7kg per seat which is 20 per cent lighter than current seats.

And the slimmer seats mean passengers will get an extra two inches legroom too.

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EasyJet currently offers around 28-29 inches of legroom, so the additional two inches will take it up to 31 inches.

Hate passengers who recline? The seats have a fixed 22 degree recline that don’t move or go back.

The Mirus website states: “Designed for airlines operating short to medium-range flights of around 5 hours in standard specification, but available in ‘Enhanced Comfort’ specification to comfortably open up longer routes — the Kestrel transforms travel for passengers through unbeatable levels of legroom.”

They’re set to be rolled out across the Airbus A320neo and A321neo fleet in 2028.

David Morgan, chief operating officer, said: “The additional legroom and enhanced comfort these seats will provide will also deliver an improved onboard experience for our customers which we know they’ll love.”

EasyJet isn’t the only airline making the economy experience better.

Air New Zealand is launching bunk beds which economy passengers can rent for up to four hours to get some sleep.

Last year, Thai Airways announced they would be launching lie-flat beds in premium economy.

Emirates is rolling out “gamechanger” new cheap seats, although little else has been revealed.

And a new economy seat design called the Skynook has been compared to business class, with a private sliding door

Asian stock markets saw major declines on Monday as gold futures dropped 8% and crude oil prices continued to climb amid heightened uncertainty in the Middle East.

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As the effective closure of the Strait of Hormuz continues to choke global supply, benchmark US crude rose above $100 a barrel on Monday morning in Europe.

Brent crude, the international standard, went up to more than $113 a barrel. The price of Brent crude has zigzagged lately from about $70 per barrel before the war began to as high as $119.50.

European stock indexes opened with losses, with the FTSE in London losing 1.5%, the CAC-40 in Paris being down by 1.6%, and the DAX in Frankfurt dropping by 2% at the opening.

Earlier on Monday, the International Energy Agency warned that the global economy faces a “major, major threat” because of the Iran war and that at least 40 energy assets across nine countries were damaged.

Meanwhile, the de-escalation of the conflict is nowhere near in sight.

Trump warned over the weekend that the US would “obliterate” Iran’s power plants if it does not fully open the Strait of Hormuz within 48 hours, prompting Tehran to say it would respond to any such strike with attacks on US and Israeli energy and infrastructure assets in the region.

“Trump’s ultimatum and Iran’s retaliatory warnings point to a widening conflict that keeps energy disruption and market volatility elevated, with no clear off-ramp in sight,” said Ng Jing Wen, analyst at Mizuho Bank in Singapore.

In Europe, the benchmark natural gas futures were trading above €60 per MWh at the market open.

This follows last week’s gains as escalating threats to Middle Eastern energy facilities heightened fears of deeper supply disruptions.

In Asia, stock markets were also significantly impacted by the uncertainty around the Middle East crisis, with Japan’s benchmark Nikkei 225 dropping 3.5%. In Taiwan, the Taiex shed 2.5%, South Korea’s Kospi dropped 6.5%, Hong Kong’s Hang Seng slipped 3.8% and the Shanghai Composite declined 3.6%.

Higher oil prices, which also shook stock markets on Friday, dashed hopes for a possible upcoming cut in interest rates by the Federal Reserve, analysts said. Before the war, traders were betting that the Fed would cut rates at least twice this year. Central banks in Europe, Japan and the United Kingdom also recently held their interest rates steady.

The S&P 500 fell 1.5% Friday to close its fourth straight losing week, its longest such streak in a year.

The Dow Jones Industrial Average dropped 443 points, or 1%, and the Nasdaq Composite tumbled 2%.

On Wall Street, roughly three out of every four stocks in the S&P 500 fell on Friday.

Stocks of smaller companies, which can feel the pinch of higher interest rates more than their bigger rivals, led the way lower. The Russell 2000 index of smaller stocks fell a market-leading 2.3%.

In the bond market, the yield on the 10-year Treasury finished last week with a jump to 4.38% Friday from 4.25% late Thursday and from just 3.97% before the war started.

The two-year Treasury yield, which more closely tracks expectations for what the Fed might do, rose to 3.88% from 3.79%.

In currency trading, the US dollar rose to 159.53 Japanese yen from 159.22 yen. The euro cost $1.1526, down from $1.1571.

Key indexes in Japan, South Korea and Hong Kong tumble as Iran threatens attacks on energy infrastructure across region.

Stock markets in the Asia Pacific have fallen sharply amid US President Donald Trump’s ultimatum warning Iran to reopen the Strait of Hormuz or face the annihilation of its energy infrastructure.

Japan’s benchmark Nikkei 225 and South Korea’s KOSPI plunged 4 percent and 4.5 percent, respectively, in early trading on Monday.

In Hong Kong, the Hang Seng Index tumbled about 2 percent.

Australia’s ASX 200 dropped about 1.6 percent, while the NZX 50 in New Zealand dipped about 1.3 percent.

Futures on Wall Street, which are traded outside of regular market hours, saw moderate losses, with those tied to the S&P500 and the Nasdaq Composite down about 0.5 percent.

Oil prices remained volatile amid fears of further disruption to global energy supplies.

Futures for Brent crude, the international benchmark, rose more than 1.5 percent to top $114 a barrel, before easing to about $112 as of 02:00 GMT.

Trump on Saturday threatened to “obliterate” Iran’s power plants within 48 hours if Tehran does not end its effective blockade of the strait, through which about one-fifth of global oil and natural gas exports usually transit.

Tehran has pledged to completely close the waterway, which is still being transited by a small number of Chinese, Indian and Pakistani-flagged vessels, and launch retaliatory attacks on energy and water infrastructure across the region if Trump follows through on his threat.

Based on the timing of Trump’s warning on Truth Social, the deadline for his ultimatum is set to expire at 23:44 GMT on Monday.

Trump’s threat has added to fears of a cascading global energy crisis as the US and Israel’s war on Iran approaches the one-month mark with no clear end in sight.

Oil prices have surged more than 50 percent since the start of the war, which began with US-Israeli strikes on February 28.

Analysts have warned that energy prices are likely to rise significantly further if the strait remains effectively closed, with some observers predicting oil to hit $150 or even $200 a barrel.

Trump on Sunday held a phone call with UK Prime Minister Keir Starmer to discuss the situation in the Middle East, including the effective closure of the strait.

The two leaders agreed that unblocking the strait is “essential to ensure stability in the global energy market”, Starmer’s office said in a statement.

Trump has provided conflicting messages about the goals of the war and how long it might last.

Hours before issuing his ultimatum on Saturday, Trump said that his administration was “very close to meeting our objectives as we consider winding down” military operations against Iran.

Israeli military spokesperson Lieutenant Colonel Nadav Shoshani last week told reporters that officials had detailed plans for at least three more weeks of war.

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

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

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

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

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

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

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

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

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

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

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

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

‘Stay away from oil and gas facilities’

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

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

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

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

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

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

Heavy social media use has contributed to ‘worrying decline’ in wellbeing in Western countries, World Happiness Report says.

Social media has played a large role in declining happiness among young people in Western countries, a United Nations-backed report has found.

Heavy social media use partly explains a “worrying decline” in the wellbeing of young people in the West, the latest edition of the annual World Happiness Report said on Wednesday.

In total, 15 Western countries, including the United States, Canada, Australia and New Zealand, saw significant declines in youth wellbeing over the past two decades, according to the report.

The trend was not observed globally, with young people in regions covering 90 percent of the world’s population reporting higher life satisfaction than before.

“The trends are caused by many factors, which differ between continents. However, the evidence in this report does suggest that heavy social media use, especially in some countries, provides an important part of the explanation,” researchers John F Helliwell, Richard Layard, Jeffrey D Sachs, Jan-Emmanuel De Neve, Lara B Aknin, and Shun Wang said in an executive summary of the report.

“Outside the English-speaking world and Western Europe, the links between social media use and wellbeing are more positive, and they vary between platforms,” the researchers added.

The report, published by the University of Oxford’s Wellbeing Research Centre in partnership with Gallup and the UN Sustainable Development Solutions Network, cited data from sources including the Programme for International Student Assessment (PISA) and research by the American social psychologist Jonathan Haidt.

Despite the decline in youth wellbeing, Western countries, particularly in Scandinavia, dominated the overall happiness rankings across age groups.

Finland ranked as the world’s happiest nation for the ninth consecutive year, followed by Iceland, Denmark, Costa Rica, Sweden and Norway.

The Netherlands, Israel and Switzerland also made the top 10.

Middle Eastern and African countries had the lowest happiness scores.

Afghanistan reported the lowest life satisfaction, with Zimbabwe, Malawi, Egypt, Yemen and Lebanon also ranking among the bottom 10 countries.

Social media use among young people has been a growing concern for governments amid reports linking platforms to bullying, sexual exploitation and worsening mental health.

Australia last year introduced the world’s first social media ban for under 16s, with plans for similar restrictions under way in Indonesia, France and Greece.

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

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

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

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

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

The stall comes after three rate cuts in 2025.

Global gripes

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

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

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

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

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

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

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

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

Labour market stalls

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

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

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

Political undercurrents

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

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

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

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

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

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

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

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

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

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

Qatar’s Foreign Ministry strongly condemns attack that caused “extensive damage” at the Ras Laffan complex.

Qatar’s Ministry of ⁠Interior says civil ⁠defence teams are responding to a fire at the country’s main gas facility after an Iranian attack.

In a statement on Wednesday, QatarEnergy said there was “extensive damage” following the “missile attacks” on Ras Laffan Industrial City.

“All personnel have been accounted for and no casualties have been reported at this time,” the world’s largest liquefied natural gas (LNG) producer added.

The announcements came hours after Iran threatened to attack oil and gas facilities across the Gulf region in retaliation for an Israeli attacks on its South Pars gasfield as the fallout from the United States-Israeli war on the country continues to escalate.

Iran’s warning was directed at Qatar’s Mesaieed Petrochemical Complex, Mesaieed Holding Company and Ras Laffan Refinery; Saudi Arabia’s Samref Refinery and Jubail Petrochemical Complex; and the United Arab Emirates’s Al Hosn Gas Field.

In a statement, Qatar’s Foreign Ministry strongly condemned “the brutal” Iranian targeting of Ras Laffan Industrial City.

“Qatar considers this assault a dangerous escalation, a flagrant violation of its sovereignty, and a direct threat to its national security,” it said.

On March 2, Qatar suspended LNG production following an attack on at its giant Ras Laffan facility, as well as on a water tank at a power plant in Mesaieed Industrial City.

Khan Younis, Gaza Strip – Historic landmarks often withstand centuries of volatile change, but when rockets and missiles fall, even the most enduring stones become fragile.

For generations of families in Gaza’s southern city of Khan Younis, the Grain Market was the first stop when they went shopping.

Reaching it meant walking past the historic Barquq Castle, a centuries-old structure dating back to 1387 and the very foundation of Khan Younis.

But for residents, the castle was more than an old monument; it was a familiar landmark marking the entrance to one of the city’s liveliest commercial spaces.

The aromatic scent of spices and dried herbs would accompany any walk towards the Grain Market.

But that was before Israel’s genocidal war on Gaza began. Israeli attacks inflicted heavy damage on the Grain Market and the Barquq Castle. The market has now been reduced to shattered alleys, with dust and heavy silence filling the air.

Sitting in his store along a row of damaged old shops, 60-year-old Nahed Barbakh, one of the city’s oldest and most well-known traders of staple food supplies, spent decades watching customers stream through the market. Now, only a handful pass by his shop.

“I’ve been in this spot for decades, day in and day out, watching people bring life to this place,” Nahed said. “Look at it now – it’s empty. These days, there shouldn’t even be space to walk because of the crowds preparing for Eid.”

He paused before gesturing towards the nearby castle.

“We always felt the weight of history here because we are so close to Barquq Castle. Now that history and life itself have been struck by the occupation.”

But Israeli fire did not take into account the market’s historic status. The Grain Market, long considered the economic heart of Khan Younis, was also among the first sites of destruction during the second month of Israel’s genocidal war on Gaza. More than two years of Israeli bombardment and repeated waves of displacement have left the market unrecognisable.

“The occupation killed many of our friends who worked here,” Nahed said quietly. “Those who survived have been financially broken. That’s why you see most of these shops are still closed.”

He pointed to some shelves behind him.

“My shop used to be fully stocked with goods at its high capacity. We even had extra warehouses to supply what people needed, especially during the busiest seasons.”

Before he could finish his sentence, a deafening blast interrupted him — the sound of an Israeli tank fire.

“And this is the biggest reason people are afraid to return,” Nahed said abruptly. “The yellow line is only a few hundred metres away from this street. At any moment, bullets can reach here.”

The yellow line is the name given to the demarcation line behind which Israeli forces withdrew as part of the first phase of October’s ceasefire agreement. It effectively divides Gaza into two, and Palestinians have repeatedly been shot for approaching it.

The yellow line has divided Khan Younis, dramatically reshaping the city’s geography. Israel has repeatedly shifted the line, moving it deeper into Gaza.

The Grain Market, once firmly at the centre of urban life, now sits close to the yellow line.

What used to be the city’s commercial heart has effectively turned into its edge, where people hesitate to walk, leaving the revival of daily commerce life a distant prospect.

Centuries of endurance

The Grain Market traces its origins to the late 14th century, when the Mamluk ruler Younis al-Nawruzi established Khan Younis in 1387 as a strategic stop along the trade route linking Egypt and the Levant.

Built as an extension of the Barquq Castle, which functioned as a caravanserai for travelling merchants, the market became a central commercial hub where traders and travellers exchanged goods, moving between Africa, the Levant and beyond.

The Grain Market occupies roughly 2,400sq metres (25,830sq feet). Its single-floor shops line a central street running east to west, intersected by narrow alleys branching towards smaller courtyards. The buildings preserve elements of their original construction, including sandstone walls and traditional binding materials that have survived centuries of repairs and modifications.

Over time, the market evolved into the primary commercial centre of Khan Younis, adapting to modern commerce while retaining its historic character.

But today, many of its shops stand damaged or shuttered.

According to Gaza’s Ministry of Tourism and Antiquities, the market is now among more than 200 heritage sites damaged in attacks by Israeli forces across the Gaza Strip since October 2023.

At the southern end of the Grain Market, where rows of vegetable stalls once overflowed with fresh produce, only one makeshift stand has opened.

Om Saed al-Farra, a local, stepped cautiously towards the stall, inspecting the small piles of vegetables laid out on a wooden crate. The expression on her face reflected more than surprise; it was disbelief at what the market had become.

“The market is deplorable now,” she said. “There used to be many stalls here and many choices for people.”

She gestured towards the empty stretch of the market’s vegetable section, once one of its busiest corners.

“These days were once filled with extensive joyful preparations for Eid, when families crowded the market to shop for food and essentials,” al-Farra said. “Now the market feels unusually gloomy, its stalls largely empty and its familiar vibrance gone. Everything is limited. Even if you have money, there are hardly any places left here for us to buy from.”

Economic collapse under fire

Although parts of the market’s infrastructure remain physically standing, many traders have not returned.

According to Khan Younis Mayor Alaa el-Din al-Batta, the Grain Market was once one of the city’s most vital economic lifelines.

“Just as it once connected continents, even under blockade, it continued to connect people across Gaza,” al-Batta said. “It holds a deep place in the memory of our residents. But once again, the occupation has brought destruction, targeting both our history and a critical lifeline for the people.”

For nearly two decades, Israel has controlled Gaza’s land crossings, airspace and coastline under a strict blockade. Since the genocide began in October 2023, restrictions have tightened further, pushing businesses and trade to collapse.

In a narrow western alley where scattered stones cover the ground, two cloaks hung outside a small shop. Inside, 57-year-old tailor Mohammad Abdul Ghafour leaned over his sewing machine, carefully stitching a torn shirt.

His shop was the only one open in the grey alley.

“I’ve been here since childhood,” Abdul Ghafour said. “My father opened this shop in 1956, and I grew up learning the profession right here in the market.”

Israel’s bombardment not only destroyed the place where he worked; it also killed dozens of his family members.

“On December 7, 2023, Israel committed a horrific massacre against my family,” he said. “I lost my father, my brothers, and more than 30 relatives.”

Burying his family members was only the beginning of the long, painful separation from the market and his shop.

“We were forced into displacement more than 12 times. I had many chances to leave as two of my children live in Europe,” Abdul Ghafour said. “But all I could think about was returning to my shop.”

When Israeli forces withdrew to the yellow line, he came back alone.

“I cleaned the street by myself. And if I had to do it again, I would. Whoever loves his land never abandons it,” he said. “I charge my batteries for my machine and come every day. My return encouraged some residents to come back too. But people still need shelter, water, and basic services before more families return.”

Resident Mohammad Shahwan stood in Nahed’s shop checking a list of items he hoped to buy.

“We left the crowded al-Mawasi as soon as we could to return to our damaged home,” he said, referring to the stretch of coastal Khan Younis that thousands of Palestinians have been forcibly displaced to. “But the number of residents here is still very small because of the destruction and lack of services.”

Still, Mohammad Shahwan said he was relieved to find the shop open at all.

“For the first time in two years, we’ll make traditional Eid biscuits,” he said, holding the list of ingredients. “The last two Eids were dark for my family after we lost my 17-year-old son, Salama. He and his aunt were killed by an Israeli strike.”

He could have bought the now-expensive supplies elsewhere, he said, but returning to the Grain Market carried its own meaning. “I wanted to buy them from here, just like we always did.”

Waiting for restoration

According to Mayor al-Batta, restoring the historic market will require a major reconstruction effort.

“The Grain Market needs a comprehensive restoration process to function again,” he said. “So far, our work has only been limited to clearing rubble and delivering limited water supplies for returning residents.”

The rebuilding process will require specialised materials and expert restoration work to preserve what is left of the historic structure. Municipal workers have already collected leftover stones from the ruins in the hope that they can one day be used in rebuilding parts of the market.

But reconstruction remains impossible under current conditions.

“More than five months have passed since the ceasefire began, yet not a single bag of cement has entered Gaza,” al-Batta said.

“We want to restore our historic identity and revive life for our people. But neither can happen while Israeli restrictions and violations continue.”