Economy

Judge fines government for failing to fund universities as protests over Milei’s cuts turn violent.

“This cannot go on!” students shout during an assembly in the middle of the central hall of the University of Buenos Aires Exact and Natural Sciences building.

It is part of Argentina’s prestigious public university system.

The faculty’s central hall is covered with dozens of banners protesting President Javier Milei’s spending cuts. Students have called an assembly to announce the occupation of the university, a traditional form of protest in Argentina meant to raise public awareness and pressure the government.

They say they will take over the building for a day. Many students and professors here are concerned about the impact of Milei’s austerity policies on public universities and say the future of free higher education is at risk.

“Our best professors are leaving en masse. With salaries that cannot cover their basic needs, they are leaving for private universities,” Emiliano Gato, a physics student who is part of the group, told Al Jazeera.

“I dream of doing research and teaching at the public University of Buenos Aires. It’s a prestigious school. But now, with this austerity plan, I don’t know what will happen.”

Public universities in Argentina have become a major battleground of Milei’s austerity plan. Students and professors are protesting the lack of funding and the erosion of salaries, which they say is a major threat to the country’s public education.

Milei is implementing one of the harshest austerity plans in Argentina’s history.

Since taking office in 2023, he has laid off thousands of state employees, shut down ministries, reduced subsidies and cut government-funded programmes. The measures were meant to fight high inflation, which was a major problem in Argentina. Almost three years later, inflation has fallen to around 2 percent a month. Milei says his plan is going well.

“Argentina is growing at a remarkable pace. We have now recorded 27 consecutive months of sustained growth, and today the country is expanding at four times its historical rate. This growth is being felt across almost every sector of the economy,” said Milei during a recent visit to Washington.

Ripple effects

But not everyone agrees. His plan is also having a profound impact on public education, welfare plans for people with disabilities, pensioners and others who depend on state support. The opposition has tried to block many of Milei’s reforms.

Last year, Congress overturned presidential vetoes and approved two laws, one increasing funding for public universities and another declaring a disability emergency. But Milei’s government has refused to implement them, arguing that Congress failed to identify how they would be financed.

A federal judge has now begun fining the government 100,000 pesos (around $70) a day for failing to implement parts of the financing law, which requires Milei’s government to restore university salaries and student scholarships lost to inflation, regularly update budgets and provide funding for research, hospitals and infrastructure.

And that’s why thousands of people took to the streets on Thursday to demand that the government implement it. All around Buenos Aires, long columns of people blocked the centre of the city as they called for a general strike. Although the protest was meant to be peaceful, it soon turned violent. Police fired tear gas and rubber bullets as protesters threw rocks.

The plaza in front of Congress resembled a battleground. At least 25 people were detained, and several others were injured, including members of the security forces.

Maria Teresa de Jesus is a professor in the University of Buenos Aires chemistry department. She says she makes around $700 a month and it has become difficult to make ends meet. “I have come to this protest as a last resort. I am professor. I love teaching, doing research. I shouldn’t be here,” she told Al Jazeera. “Public education is crucial in this country, to make education accessible to all. And the government is ignoring it.”

Many in Argentina continue to support Milei’s economic plan. They are hoping the government’s plan to exploit the country’s vast natural resources will pay off and translate into more jobs, higher wages and improved living standards.

But many others have stopped believing and are prepared to raise the stakes. They accuse Milei’s government of protecting the interests of a privileged few while asking the rest of the country to bear the cost of his economic plan.

Fuel theft cited in Baniyas-Homs leak as gas export line in Hasakah catches fire.

Two pipelines carrying gas and oil products were damaged in separate incidents in Syria, state media reported, the latest disruptions to the country’s energy infrastructure following a series of suspected sabotage attacks.

The state-owned Syrian Petroleum Company announced the damage on Thursday, according to the Syrian Arab News Agency (SANA). The incidents add to a number of attacks on Syria’s oil and gas network in recent months, as the government tries to revive its energy sector.

An explosion struck the Jbessa gas pipeline in southern Hasakah province in the late afternoon, hours after damage to a pipeline transporting oil products from the coastal city of Baniyas to Homs caused a fuel leak.

The company said the gas pipeline had been targeted in a “sabotage attack”, according to SANA.

Neither SANA nor the company named a suspect or group responsible for the attacks.

Repairs under way

Oday al-Satouf, head of the company’s media office, told SANA that a hole was found in the Baniyas-Homs pipeline in the Hadida area, west of Homs. Crews isolated the affected stretch and secured the surrounding area, he said, closing valves on either side of the damaged section. Repairs have begun, while other teams monitor the area for safety. State media said the leak was believed to be linked to an attempted fuel theft.

Al-Satouf said gas would continue to reach power stations through alternative arrangements, and that domestic gas supplies were unaffected, according to SANA.

A string of incidents

More than a week ago, the company said an oil pipeline near Tal Hamis in the northeastern province of Hasakah was damaged in a sabotage attack. It added that authorities had arrested those responsible.

In late September, a fire broke out on a gas pipeline between al-Shoula and Deir Az Zor in the east, halting gas flows from the Jbessa plant to power stations, SANA reported. Hisham al-Saleh, a gas sector official at the company, said gas pressure in the area fell as crews worked to extinguish the blaze.

Syria has been working to restore its energy infrastructure and increase domestic oil production. That includes resuming operations at oil fields in Hasakah to supply refineries in Homs and Baniyas. In January, the petroleum company announced plans to transport crude from recently recovered fields to the two refineries as part of efforts to revive the sector.

Baghdad, Iraq – Sitting anxiously in his small office in Jameela market, one of Baghdad’s main wholesale markets, food trader Hamza al-Rudayni is waiting to see what the coming days will bring.

A decision by the Iraqi government to devalue the country’s currency, the dinar, against the US dollar has left traders like him facing sudden losses and uncertainty over the prices they should charge for their goods.

“I don’t know what to do,” al-Rudayni told Al Jazeera after the devaluation reduced the dollar value of his dinar holdings, leaving him with less money to purchase imported goods.

“All I know is I woke up a few days ago to discover that I had lost 25 million Iraqi dinars (roughly $16,500 at the new exchange rate) because of this decision, while larger merchants lost billions,” he said.

Al-Rudayni entered the wholesale trade market last year after losing his previous job at a private Iraqi bank that he says was sanctioned by the United States Treasury. He sold his car and used his savings to start trading with a larger merchant before recently launching his own business.

With exchange-rate fluctuations making prices unpredictable, al-Rudayni said he and many other traders have chosen to suspend buying and selling until the situation stabilises.

“Market activity has ground to a halt,” al-Rudayni said. “Traders buy goods in dollars but sell them in dinars, as regulations prohibit them from selling in dollars.”

That is the root of the problem for traders: A weaker dinar means they have to pay more in local currency for goods imported in dollars, while making it harder to determine the right price they should charge customers for goods they already have in stock.

Why devalue?

On October 7, the Iraqi government introduced a new official exchange rate against the US dollar, in an attempt to ease a financial crisis triggered by the US-Israeli war on Iran and the  disruption of oil exports through the Strait of Hormuz.

Before the war, Iraq exported around 3.5 million barrels of oil per day through the Strait of Hormuz, accounting for 90 percent of Iraq’s government revenue.

The Central Bank of Iraq decision set the rate at 1,520 dinars per US dollar for cash sales to the public. It was previously set at 1,320 dinars per dollar.

Devaluing the Iraqi dinar by almost 15 percent against the dollar allows the government to receive more local currency for every dollar of oil revenue it converts, helping it cover public spending, including government employee salaries.

“It is my decision and I am responsible for it,” Iraqi Prime Minister Ali al-Zaidi said during a meeting with parliamentary leaders on Thursday.

“I was facing three challenging options to cover salaries and other mandatory expenditures,” al-Zaidi added. “The first is to cut salaries by 35 percent … the second is to pay the salaries every 45 days … while the third is to resort to foreign loans.”

Al-Zaidi, a former banker, also said that his government had inherited public debt exceeding 208 trillion Iraqi dinars ($139bn at the new rate) when it took office in May. He said the government needed approximately 10 trillion dinars ($6.7bn) each month to cover salaries and other essential expenditure.

A shortage of liquidity

The crisis in the Strait of Hormuz had caused a severe financial squeeze for the Iraqi government.

Although the situation has eased somewhat in recent weeks after Iraq’s oil exports partially recovered, they have yet to return to their pre-war levels.

Mudher Mohammed Salih, the Iraqi prime minister’s financial adviser, said in August that the Central Bank of Iraq’s foreign currency reserves had declined from $106bn to approximately $80bn.

To make up for the loss of revenue, the Iraqi government has also turned to borrowing from domestic banks to cover salaries and other expenses.

A Finance Ministry official told Al Jazeera that ensuring salaries were paid on time remained the government’s main priority, describing this issue as a matter of domestic economic stability.

“Our hands are tied regarding the revenue and how to maintain enough money to ensure that we can pay the salaries,” the official, who asked to remain anonymous because he was not authorised to speak publicly, said.

Economists have warned that while adjusting the exchange rate could ease some immediate fiscal pressures, it would not address the deeper weaknesses in Iraq’s economy.

“Nothing in economics is sacred, including the exchange rate,” said Nabil al-Marsoumi, professor of economics at Al Maaqal University in Basra. “It can be adjusted, but only after all other options have been exhausted.”

“In any case, the exchange rate shouldn’t be used as a cover-up for failures in the state’s economic and fiscal policies,” he added.

The G20 finance ministers and central bank governors are gathering in Bangkok, Thailand, on Thursday amid an uncertain global outlook shaped by the US-Israel war on Iran.

The meetings are being held in conjunction with the annual meetings of the International Monetary Fund (IMF) and the World Bank, taking place in the Thai capital from October 12 to October 18.

Here are some of the key details about the meetings:

What are the G20, the IMF and the World Bank?

The G20 is an economic forum comprising 19 large economies, including the United States, China, the United Kingdom, Australia, Brazil, India, Japan, Indonesia and Saudi Arabia, as well as the European Union and the African Union.

The grouping has an annually rotating presidency, currently held by the US.

Together, the G20 countries account for about 85 percent of global gross domestic product (GDP) and three-quarters of global trade.

The G20 was established in 1999 as a forum for finance ministers and central bank governors to address shared economic concerns in the wake of the Asian Financial Crisis, before expanding into a broader forum for national leaders.

The IMF, based in Washington, DC, is an international financial institution that promotes international cooperation on monetary policy, trade and economic growth.

Its membership includes all but a handful of the world’s sovereign states, including North Korea, Cuba, the Vatican City and Monaco.

The World Bank, also based in Washington, DC, primarily serves as a provider of loans and grants to developing countries. It has 189 member countries.

The IMF and the World Bank were created at the 1944 Bretton Woods conference in the US, convened by the Allied Powers to establish the contours of the post-World War II international financial order.

Who will be attending the meetings?

Most finance ministers and central bank governors of the G20 will be in Bangkok, along with IMF Managing Director Kristalina Georgieva and World Bank Group President Ajay Banga.

US Treasury Secretary Scott Bessent will be a notable absence from the gatherings, as the top economic official of the world’s biggest economy and G20 chair.

US officials have cited “domestic engagements” for Bessent’s decision to skip the events, at which Washington will be represented by Deputy Secretary Francis Brooke and Undersecretary for International Affairs Erin Browne.

The G20 meeting, one of several gatherings of the group’s finance ministers each year, will help shape the agenda for the headline leaders’ summit in Miami, Florida, taking place on December 14-15.

What is on the agenda?

The economic fallout from the US-Israel war on Iran is expected to dominate discussions.

Attacks across the Middle East have upended economic activity across the region, while disruption to shipping in the Strait of Hormuz has driven a surge in energy prices worldwide.

Crude oil prices have exceeded $100 a barrel for much of the past eight months, placing a strain on government coffers and household budgets, particularly in the Gulf region and the rest of Asia.

In advance of the meeting, Australia’s Treasurer Jim Chalmers MP said he would use the discussions to call for an end to the conflicts in the Middle East and the reopening of the Strait of Hormuz “because that’s what the global economy desperately needs”.

“The war in the Middle East is having a devastating economic impact and is pushing up fuel prices, inflation and interest rates around the world,” Chalmers said in a statement.

Other issues likely to feature on the agenda include the ballooning debt levels of many countries, which exceed 100 percent of GDP in the US, Canada, Japan, Italy and France.

In a speech on Wednesday, Georgieva warned that mounting debt posed a threat to the global economy and that there was no “magic” formula that would allow governments to avoid tax hikes or spending cuts.

G20 members will also bring more specific individual concerns to the table based on their economic and geopolitical priorities.

The US, for example, has repeatedly expressed concern about “global imbalances”, a veiled reference to China’s state-driven industrial model that has allowed Chinese exporters to flood overseas markets with cheap goods.

US President Donald Trump has long claimed that China’s large trade surplus, which stood at a cumulative $938bn in September, proves that international trade is stacked against US manufacturers.

In a statement addressed to the IMF on Wednesday, Bessent called for action to address mismatched trade balances.

“This especially includes strengthening its analysis and engagement on the role non-market policies and practices and exchange rates play in driving external imbalances,” Bessent said.

“Policymakers around the world are having difficult discussions about how to sustain market-based systems amid distortionary policies from some economies that skew competition and hurt employment.”

Divisions and competing interests cloud the prospects for coordination, however.

At the last meeting of G20 finance ministers in Asheville, North Carolina, US, held on August 31 and September 1, member countries failed to issue a joint communique after China objected to language to do with trade.

The President’s ally says conservatives “cannot give an inch” in Latin America as he accepts an award in Washington.

Argentine President Javier Milei has urged his ally, US President Donald Trump, to come out of the United States midterm elections in a stronger position, calling the vote important for the West as a whole.

Milei made the appeal on Wednesday at a Hispanic Heritage gala in Washington, where a Hispanic association gave him an award, ahead of November’s vote.

Conservatives, he said, “cannot give an inch in our reconquest of the hemisphere”, according to Agence France-Presse (AFP).

Milei flew into the US capital on Wednesday for meetings with investors and the gala. He is due to address the US Chamber of Commerce on Thursday.

Milei’s lifeline

Trump firmly backed Milei a year ago, when his government also faced crucial legislative elections. He has called Milei his “favorite president”.

That backing, together with a currency swap agreement with the US Treasury, helped Milei to success in those polls, analysts have argued.

The centrepiece of the package, announced by Treasury Secretary Scott Bessent, was a $20bn swap with Argentina’s central bank, in which the US exchanged dollars for pesos. The swap came shortly after Milei’s party lost a key provincial election.

Trump made clear at the time that the support hinged on a Milei victory. “I’m with this man because his philosophy is correct,” he said ahead of a White House lunch with the Argentine leader. “If he wins, we’re staying with him. And if he doesn’t win, we’re gone.”

Trump also warned that the US would not be “generous” if Milei lost. The remarks unsettled Argentine markets, with the main stock index giving up earlier gains and falling about 2 percent, The Associated Press reported.

The package drew criticism in the US. Democratic lawmakers accused Trump of prioritising a foreign bailout while the US government was shut down.

Tehran municipality has launched a series of welfare initiatives to help residents cope with soaring living costs, but the measures have raised questions about their financing and effectiveness, as well as whether the local authority is taking on responsibilities better handled by Iran’s national government.

The local authority has launched four projects it says are aimed at protecting citizens, including a housing project, freezes on the prices of 12 basic goods, and a maternity package.

Questions have been raised about how they will be funded and whether the municipality is overstepping its traditional functions.

In Iran, municipalities are responsible for local services and urban management, while the national government oversees broader economic policy, including efforts to control inflation.

Iranian law does give municipalities some responsibilites beyond conventional urban services, but Article 55 of Iran’s Municipal Law does call for municipalities to provide for public food markets, make certain essential goods more affordable, and provide social welfare facilities and low-cost housing.

The dispute is therefore less about whether Tehran municipality can provide the services, and more about their scale and financing.

The municipality’s price-freezing initiative, dubbed the “Zero Inflation” project, has been the most controversial. It comes as year-on-year inflation reached nearly 90 percent last month, while annual food inflation hit 108.8 percent.

Doubts have been raised about how the project will be funded and its effectiveness. Others believe that the measures could fuel inequality between the capital and other cities.

They are viewed as steps to address the huge economic challenges faced by Tehran residents, worsened since the United States and Israel launched a war on Iran on February 28.

Tehran Mayor Alireza Zakani said the municipality had recently guaranteed prices ranging between 5 percent and 50 percent below market rates for the next six months.

Yousef Akandeh, a political activist, told Al Jazeera that freezing the prices of some goods or providing free services will not reduce inflation to zero alone.

“Even if we assume that the Tehran municipality succeeded in stabilising the prices of 12 basic goods, what about the rise in rents, medicines, transportation prices, and the rest of living expenses,” Akandeh asked.

Real steps to tackle inflation, Akandeh said, would have to begin with controlling liquidity growth and monetary discipline, which he said are nearly impossible amid the ongoing war.

The municipality has also introduced a maternity support programme offering mothers of children born this year monthly credits worth up to 40 million rials ($15) for two years for each newborn.

Akandeh raised the issue of institutional overlap, noting that a similar national scheme already exists.

“The government implements a similar package and provides monthly financial amounts for all newborns across the country and not just in Tehran, and if the municipality’s package is independent of it, the Tehrani family may benefit from the national and municipal programme simultaneously,” Akandeh said.

Receiving support from both programmes would not, in itself, indicate wrongdoing. But critics are instead raising the question of whether it is an appropriate use of Tehran’s municipal resources, particularly when the city faces competing spending demands.

Amir Dabiri Mehr, a former adviser in the Tehran municipality, told Al Jazeera that although supporting the homeless falls under the municipality’s social responsibilities, the problem lies in a lack of transparency. The municipality is funded by taxes and building density licences.

“The people have the right to know what the municipality spends within the framework of its original tasks, and in tasks it has chosen for itself, and where it gets its resources from?” Dabiri Mehr said.

The municipality-affiliated Hamshahri newspaper said that the “Zero Inflation” project is not funded by municipal budget subsidies, but through direct purchases from producers and reducing commercial profit margins in council-run stores.

The biggest crisis facing Tehran’s residents is housing, which is the national government’s responsibility, Mehr said. Food and living expenses are the national government’s responsibility.

“If the goal is to solve the people’s problems, it seems that the biggest problem facing the residents of Tehran today is the housing crisis, and this dilemma cannot be solved by building an apartment building consisting of a few residential units,” he said.

Al Jazeera attempted to contact the Tehran municipality for comment but received no response.

Tehran Mayor Zakani has, however, defended the financing arrangements, telling a local newspaper, Hamshahri, that the Zero Inflation initiative would not rely on direct subsidies from the municipal budget, but instead on purchasing goods directly from producers and reducing commercial profit margins in city-run stores.

Zakani also said that the programme would draw on municipal resources, bank financing, and partnerships.

Without a quick deal to move fertiliser through the strait, agricultural productivity would ‘significantly drop’.

A senior United Nations official has warned that parts of Asia and Africa could face a food security crisis unless Iran and the United States quickly agree on a UN-backed plan to move fertiliser through the embattled Strait of Hormuz.

UN ⁠Under-Secretary-General Jorge Moreira da Silva said on Wednesday that it was “absolutely critical” that the two countries agree to the proposal within weeks as planting season approaches. It calls for a UN-staffed coordination centre in Oman to help register vessels and oversee their safe passage in the waterway, through which a large portion of key global fertiliser inputs traditionally flow.

“If we miss that planting season, the productivity of agriculture would significantly drop and the impact on prices will significantly increase,” Moreira da Silva told Reuters on the sidelines of International Monetary Fund and World Bank meetings in Bangkok, Thailand.

Farmers operate strict crop calendars, and even slight delays could severely affect yield.

‘Negligible’ fertiliser shipments

Traffic in the Strait of Hormuz has been severely disrupted since the start of the US-Israel war on Iran, with Iran targeting vessels in the strait and the US and Iran exchanging fire in and around the waterway.

The disruption has hit global supplies of urea, the world’s most widely used nitrogen fertiliser, as well as seaborne sulphur, a key input. Before the war, roughly a third of global urea shipments and nearly half of seaborne sulphur passed through the strait.

Although some ships have been able to sail through amid the crisis, fertiliser products have made up a “very negligible” share of moving cargo, according to the Washington-based International Food Policy Research Institute.

Moreira da Silva said the UN-backed fertiliser mechanism, drawn up in March, could be activated within seven to 10 days if both Iran and the US agree.

Under the plan, UN monitors would work alongside local authorities at Gulf ports to verify cargo loading. Ships would be tracked during transit, and additional inspections could ⁠be carried out if countries raised concerns about a vessel or its cargo, said Moreira da Silva. He did not say why the US and Iran have not yet agreed.

The passage of only five vessels per day through the Strait of Hormuz could keep fertiliser supplies flowing to countries in critical need, he added.

‘Let us do our job’

The UN mechanism could work alongside negotiations for a “comprehensive deal” to restore freedom of navigation in the strait, Moreira da Silva said.

Iran and the US have exchanged proposals through intermediaries since a June interim ceasefire collapsed. Efforts to reopen the Strait of Hormuz have stalled over Tehran’s conditions and Washington’s insistence on addressing Iran’s nuclear programme from the outset.

“What we are telling them is, while you continue your discussions towards a comprehensive deal, let us work, let us do our job,” said Moreira da Silva.

His plea comes amid growing concern that fertiliser shortages could hit global food supplies.

In May, the UN’s Food and Agriculture Organization warned that fertiliser scarcity could tighten food supplies from late 2026 into 2027, and would likely hit countries facing climate or other crises much harder.

In South Asia, where most rely on imported fertiliser, farmers are already struggling because of soaring costs and fertiliser scarcity. On Wednesday, farmers in Spain took to the streets to protest rising production costs amid high oil and fertiliser prices.

Economists divided on Fed rate hike as inflation creates uncertainty in run-up to US midterm elections in a tense market.

United States consumer prices jumped in September in the final inflation report before the midterm elections, increasing chances of an interest rate hike later this month.

Annual inflation accelerated to 3.7 percent, up from 3.4 percent in August. On a monthly basis, prices rose by 0.6 percent, according to the Consumer Price Index report released by the Labor Department’s Bureau of Labor Statistics (BLS) on Wednesday.

Petrol prices led the surge as tensions between the US and Iran, as well as Russia and Ukraine, weighed on global energy prices. Petrol prices rose 9.1 percent in September, accounting for more than half of the CPI monthly increase, according to the BLS. They were up 34.2 percent from the same time a year ago.

“The directionless war in Iran continues to disrupt global supply chains, driving up the prices of food and fuel,” Kyle Moore, chief economist at The Century Foundation, an economic think tank, said in a statement provided to Al Jazeera.

Petrol prices have continued to climb. The average price for a gallon of petrol is $4.33 ($1.14 per litre), compared with $4.31 a month ago, according to the American Automobile Association (AAA), which tracks daily petrol prices. Diesel prices are higher, at $6.29 per gallon (1.66 per litre), compared with $6.23 a month ago.

In a post on X, Patrick DeHaan, head of petroleum analysis for GasBuddy, said, “2026 has now seen more days with average gas prices over $4/gal than any year before: 158 days.”

Shelter costs also jumped 0.4 percent from the previous month, following a 0.3 percent increase in August. Food costs were a bright spot in the report, remaining unchanged overall.

Food away from home, including restaurant meals, rose 0.2 percent, but that increase was offset by a 0.1 percent decline in food-at-home prices, which track grocery costs.

At the grocery store, poultry prices jumped 0.7 percent, fruit and vegetable prices rose 0.5 percent, and juice prices increased 1.1 percent. However, milk prices dropped 2.1 percent and beef prices fell 0.9 percent.

Amid heavy investment in AI infrastructure, prices for computer software and accessories have jumped 28 percent from the same time last year.

“The AI boom is playing a huge part, and we have all read about the hundreds of billions being poured into data centers, AI firms, and models,” Rami Cassis, principal of Parabellum Investment, said in comments provided to Al Jazeera.

Fed pressures

The inflation data comes days before the US Federal Reserve’s interest rate decision later this month. Last month, the US central bank raised rates by 25 basis points, bringing the target range to 3.75–4.00 percent, the first hike in three years.

Economists are divided over whether the Fed will raise rates again or hold them steady. According to CME FedWatch, which tracks the likelihood of monetary policy decisions, there is a 52.9 percent chance that rates will remain in the 3.75–4.00 percent range, while a 47.1 percent chance of a quarter of a percentage point hike that would bring them to 4.00–4.25 percent.

The inflation data puts pressure on Republicans before the midterm elections on November 3. A recent Reuters/Ipsos poll showed that about 78 percent of Americans blamed US President Donald Trump’s policies for price increases.

US markets trended downward following the inflation report. The Nasdaq fell 0.8 percent and the S&P 500 dropped 0.6 percent, while the Dow Jones Industrial Average was roughly flat in midday trading.

The call comes as polls cast doubt on political leaders’ ability to manage AI risks amid US midterm elections.

A group of more than 300 scientists from around the world is calling for urgent changes to how artificial intelligence is developed and deployed amid growing concerns about its unpredictable behaviour.

The letter, released on Tuesday and signed by researchers representing universities and research institutes in 32 countries, warned that failures to follow basic cybersecurity practices could lead to damage to critical infrastructure.

Many recent incidents in which AI models escaped secure environments could have been prevented with stronger security systems, the scientists said.

They recommended that organisations developing and testing advanced AI systems capable of carrying out cyberattacks do so in more tightly controlled environments, including “air-gapped” systems that are not connected to the internet.

Growing concerns

The letter comes amid growing concerns about AI’s capabilities and its potential impact on everyday users. On Monday, Anthropic warned that its AI models could soon be capable of creating self-spreading malware that could affect everyday internet-connected devices, including smart TVs, security cameras and smart appliances such as ovens.

The report found that AI systems could identify unfamiliar devices without human intervention. The company, led by Dario Amodei, warned that smaller AI models could be capable of carrying out autonomous attacks by the end of the year.

The malware could also be difficult to contain because it might take days to infect a device and could spread across multiple machines rather than remain concentrated in a single, controlled location.

Taking control of internet-connected devices can have immediate consequences. In France, for example, hackers compromised cooling systems across hundreds of supermarkets, raising temperatures and causing more than $220,000 in damage.

Meanwhile, Axios news organisation reported on Friday that Anthropic, OpenAI and other major AI company executives are privately preparing for the possibility of a catastrophic AI-related incident that could disrupt access to major financial services, the internet and potentially critical infrastructure such as water and power systems. Several industry insiders believe a major incident could occur within the next six months to a year, it said.

The scientists also called for more safeguards, including the creation of an international organisation to establish a set of best practices for AI alignment and containment along with timely reporting of incidents.

One of the signatories, David Lie, a professor at the University of Toronto’s Department of Electrical and Computer Engineering, said his concerns began after OpenAI’s AI agents bypassed controls and hacked into servers at the tech company Hugging Face.

“One is that OpenAI, in setting up its test environment, didn’t appreciate how capable its agents were,” Lie said.

“These were the AI agents that they were designing. Second is that the AI agents independently found each other and chose to collaborate on this attack, and third is that they also intentionally tried to deceive and mislead their human creators.”

Political pressures

The letter underscores growing public concern about AI, including in the lead-up to the US congressional midterm elections. A recent Reuters/Ipsos poll found that 57 percent of voters said President Donald Trump’s administration was not taking AI risks seriously enough, while 54 percent said the same of Congress.

An AP-NORC poll echoed those findings, with about 80 percent of respondents saying the government should keep AI under human control. Respondents also expressed little confidence in either party’s ability to manage the technology: 39 percent said neither Republicans nor Democrats could be trusted to do a good job of reining it in, while 23 percent expressed greater confidence in Democrats and 21 percent in Republicans.

Hundreds of French supermarkets have suffered unprecedented cyberattacks resulting in tonnes of food perishing and raising fears about the vulnerabilities of food systems to advanced technology.

The attacks, which appeared to target internet-linked refrigeration systems manufactured by a Danish company, raised the temperature of fridges and freezers to as high as 50 degrees Celsius (122F) at more than 500 shops and supermarkets across the country. Supermarkets confirmed the attacks on Monday.

France’s cybersecurity agency has advised companies operating affected freezer models to immediately disconnect them from the internet – or restrict access to them – and to perform software updates.

It is unclear who may have been behind the attacks, but authorities say they have now launched an investigation.

Here’s what we know:

What happened?

Hackers gained internet access to the refrigeration systems and remotely cranked up temperatures in freezers and fridges to 50C during the night when shops were closed. Millions of euros worth of food was spoiled, according to retailers. In some cases, the raised temperatures sparked fires or melted equipment.

French supermarket groups E-Leclerc, Intermarche, Carrefour, Monoprix and Cooperative U were all hit.

At least 300 of Intermarche’s stores and its Netto brand were affected. Cooperative U said more than 100 of its supermarkets were targeted, while Carrefour said 80 supermarkets were affected and Monoprix reported that about 5 percent of its roughly 490 stores were hit.

Officials are still investigating who launched the attack and how it was carried out. French TV channel BFM reported that the attackers appeared to have remotely triggered a forced defrosting option in the refrigeration systems.

The systems targeted are built by Danish manufacturer Danfoss, according to France’s government cybersecurity agency. The refrigeration models attacked included the AK-SM800 and AK-SC355.

Danfoss told the AFP news agency that most of the affected control systems were “legacy” products that had “outdated firmware”. The company said it had previously advised supermarkets to update them.

AFP also reported that officials are liaising with other European countries which may have been affected.

It is unclear exactly how much food has been lost. The attacks come after President Emmanuel Macron ordered last month that the country’s critical infrastructure be protected from Russian “hybrid attacks”.

Have supermarkets been hit by cyberattacks before?

Yes. Attacks like these have been reported in other parts of Europe and in the United States.

In April 2025, British retailer and supermarket chain Marks and Spencer suffered a sophisticated ransomware attack that the company said cost it approximately 300 million pounds ($397m) after it was forced to suspend online and app orders. The attack was orchestrated by a hacker group called Scattered Spider, using ransomware from DragonForce, another criminal group. Ransomware attacks involve using malicious software to hide essential data unless a ransom is paid.

According to UK media, the same hackers also tried to attack Co-op and the iconic Knightsbridge store, Harrods.

Similar reports have also emerged from the US. In June 2025, United Natural Foods, a frozen food company which supplies big supermarket brands such as Whole Foods, said it had discovered a cyberattack that forced it to take its systems offline. The company did not reveal the nature of the attack.

In November last year, Ahold Delhaize USA said it was the victim of a cyberattack that disrupted operations at more than 2,000 stores, including Hannaford, Food Lion and Stop and Shop.

Why target supermarkets?

They are an easy target and the consequences can be widespread.

As food and agricultural systems increasingly digitise, analysts say supermarkets selling perishable foods are increasingly vulnerable to attacks due to the nature of their stocks.

The rising sophistication of cyberattacks now means that common people and local, third-party companies relying on big chains for business are also falling victim as attacks disrupt supply chains, experts say.

Speaking to Al Jazeera, tech and cybersecurity analyst Steven Lachance said smart appliances connected to the internet will always be vulnerable as hackers seize on security lapses to log in to the systems remotely and trigger malicious features.

“It’s the new reality of having these connected equipment,” Lachance said, pointing out that attacks could evolve to target medical or energy systems.

“This should come as a global wake-up call … Throughout society, we have connected infrastructure that is live on the internet, and that can be hacked. It’s a new reality, and we absolutely need national and international measures to prevent those attacks; otherwise, it’s just going to keep happening,” he warned.

Iraq, Bahrain, Kuwait and Qatar face double-digit declines in GDP amid the fallout from the US-Israel war on Iran.

The economy of the Middle East and Central Asia is set to shrink in 2026 amid the fallout of the US-Israel war on Iran, with countries such as Kuwait and Qatar facing double-digit contractions, according to the International Monetary Fund (IMF).

The region’s gross domestic product (GDP) is forecast to contract by 0.3 percent this year, a sharp downgrade from the 1.9 percent expansion projected in April, the IMF said in its latest economic outlook on Tuesday.

The IMF cited the prolonged disruption to shipping in the Strait of Hormuz, a conduit for one-fifth of global oil supplies in peacetime, for the downgraded outlook.

Kuwait, Iraq and Qatar are forecast to have the most severe economic contractions, with their GDPs expected to shrink by 16.7 percent, 16 percent and 15.6 percent, respectively.

Bahrain’s GDP is forecast to contract by 11.3 percent, while Iran’s economy is projected to shrink by 7.6 percent.

Saudi Arabia, which has partially offset the hit to its energy sector by boosting oil exports through the East-West pipeline, is projected to record negative growth of 3.3 percent.

Kyrgyzstan is expected to have the strongest growth in the region, with GDP forecast to expand 9 percent.

The Middle East and Central Asia is the only region that is expected to experience negative growth in 2026.

Emerging and developing Asia’s GDP is forecast to grow 5.1 percent, while the economies of Sub-Saharan Africa and Latin America and the Caribbean are projected to expand 4.5 percent and 2.3 percent, respectively.

The United States and China, the world’s two largest economies, are forecast to register growth of 2.3 percent and 4.5 percent, respectively, while the eurozone’s GDP is estimated to grow 1.1 percent.

The IMF said it expected global GDP to grow 3.1 percent, up from 3 percent in its previous outlook.

The Washington, DC-based institution said while economic activity had proved resilient this year, the global economy faced multiple risks.

“Further escalation in conflicts, a reassessment of expectations surrounding artificial intelligence (AI), renewed trade tensions, and fiscal vulnerabilities could weaken growth,” it said.

“On the upside, stronger momentum in AI investment and productivity gains from AI or a sustained easing of geopolitical and trade tensions could strengthen growth.”

United States President Donald Trump has insisted that Russia and Ukraine have agreed to stop striking each other’s energy infrastructure, as he called on both sides to end the “ridiculous” war.

Trump’s comments on Monday came even as Ukrainian President Volodymyr Zelenskyy said Russian forces had struck at least six Ukrainian energy facilities since the US president declared the truce on Sunday.

“Well, they agreed,” Trump told reporters, referring to Zelenskyy and Russian President Vladimir Putin. “Because I said, ‘You agree’. That’s why they agreed, because I said they agree.”

When pressed about the Russian strikes, Trump said, “Well, I’d have to look at it and see, because there’s been violations on both sides.”

The US president called the war, which began with Russia’s full-scale invasion of Ukraine in February 2022, a “disaster” and claimed, without offering evidence, that at least 32,000 people had been killed this month alone.

“All I know is that Zelenskyy and Putin have to get together and end that ridiculous war,” he said.

Kyiv blindsided

Trump had blindsided Kyiv and its European allies when he announced the purported energy ceasefire on Sunday. The announcement came two days after he temporarily eased US sanctions on Russian diesel, a move that drew outrage in Europe and Ukraine.

Zelenskyy said it reversed years of Western efforts to isolate Russia’s economy and would only embolden Putin.

Lawmakers from both major parties in the United States have also said the diesel decision appears to violate US law. Several Republicans have objected that it undercuts a law Trump himself signed to tighten restrictions on Moscow.

Zelenskyy said on Monday that Ukraine supported an energy ceasefire and had carried out no attacks on Russian refineries overnight. He said Kyiv was prepared to sign “guarantees to make sure they can be trusted”.

But he said it was “increasingly evident” that Moscow would not comply.

“Today alone, the Russians have attacked 6 energy facilities in Ukraine. 33 people were wounded across the country,” Zelenskyy wrote on social media. “This is what happens when Russia sees the prospect of higher revenues for its war machine.”

Russia, however, has rejected any pause in fighting, with Foreign Minister Sergey Lavrov promising to press ahead with the military campaign.

“I do not think he deserves a respite,” he said of Zelenskyy. “I don’t think we’ll be buying into assurances and promises again.” Russia, he added, would continue to pursue the goals of what it calls its “special military operation” in Ukraine.

US midterms

Trump, meanwhile, has portrayed Ukraine, rather than Russia, as the main obstacle to peace. He has said that Putin is more eager on a deal than Zelenskyy, and has called on Ukrainians to vote their president out of office – an unusually harsh turn in a relationship that has been strained since Trump returned to the White House in 2025.

Al Jazeera’s Alan Fisher, reporting from Washington, DC, said Trump has previously announced agreements between Russia and Ukraine that never materialised.

“He says he wants to protect industries in the US like farmers and ranchers, and to do that he needs the price to go down. But it seems that he thinks there’s a deal, but no one else is sure that there actually is one,” Fisher said.

The latest announcement, according to our correspondent, appeared to be driven by Trump’s desire to bring down diesel prices before the US midterm elections on November 3.

Most polls predict that Republicans will lose control of Congress as voters grow frustrated with rising prices, particularly for petrol.

An opinion survey published on October 1 by the Associated Press news agency and the University of Chicago suggested that 65 percent of US adults blame the White House for the high cost of living, especially Trump’s tariff policies and his new war against Iran.

Ukraine’s European allies, meanwhile, voiced scepticism about the energy ceasefire and approved the largest set of European Union sanctions since Russia’s 2022 invasion.

The bloc’s foreign ministers added some 1,569 people and businesses to the bloc’s sanctions list to maintain the pressure on Moscow.

“Russia will only negotiate seriously under pressure, which is why we are sticking to our sanctions against Russia,” German Chancellor Friedrich Merz said in Berlin.

As the United States maintains a naval blockade of Iran’s ports and imposes more sanctions on its oil exports, Tehran is confronting another problem: billions of dollars in revenue from previous oil sales that it says have gone missing.

A spokesperson for Iran’s judiciary said in September that a network of oil intermediaries known as “trustees” owed the Iranian government between 10 billion euros ($11bn) and 11 billion euros ($12bn). That figure was equivalent to half of the total oil revenue projected in Iran’s government budget for the current fiscal year.

US officials, including Treasury Secretary Scott Bessent, have tied Iran’s struggles to access oil revenues as evidence that its economic pressure campaign is having an effect. In August, Bessent said that “Iran’s shadow banking system was buckling” under pressure from the US campaign against the country, which has been ramped up as Washington seeks a way to force Tehran to capitulate in the war between the two countries, launched by the US and Israel in late February.

So who are the oil intermediaries, why does Iran depend on them, and what has happened to the billions of dollars they owe? Let’s take a closer look.

The debt, and the crisis it has created for the Iranian government, both stem from an oil-sales arrangement Tehran adopted in 2012 in response to US sanctions targeting Iranian oil exports.

American and European sanctions targeting Iranian oil sales and revenue collection began in 2012. The stated rationale behind both sets of measures was that revenue from oil sales helped finance Iran’s nuclear programme and that restricting Iranian oil exports could prevent the programme from advancing.

In response, the Iranian government devised a way to circumvent international sanctions on its oil sales. Unable to sell oil through the Oil Ministry and receive the proceeds through the Central Bank, it began selling oil to domestic buyers or using it to settle outstanding obligations to institutions and organisations owed money by the state.

This arrangement gave rise to a network of oil intermediaries often referred to in Iran as the “trustee network”. Rather than selling all its oil through official government channels, the state entrusted crude oil to institutions, individuals and companies to sell on its behalf. The proceeds were supposed to be transferred to the government’s treasury, with the sellers or recipient institutions subsequently recovering their agreed costs and outstanding claims. Some institutions sold the oil themselves, while others contracted private trading companies to handle the sales.

The Oil Industry Pension Fund, established for retired Oil Ministry employees familiar with the oil-sales process, was among the first institutions to receive crude oil for sale. Other recipients included Khatam al-Anbiya Construction Base, a major hub for large-scale infrastructure projects. Even the municipal police received payments owed to them by the government in the form of crude oil.

Effect of the nuclear deal

Even in those early experiments, discrepancies emerged between the revenue expected from oil sales and the amounts sellers actually deposited into the government’s treasury. These discrepancies eventually gave rise to some of Iran’s largest economic corruption cases.

The accounting discrepancies and the government’s inability to recover money from private sellers entrusted with Iranian oil persisted until 2016, when the Joint Comprehensive Plan of Action (JCPOA) nuclear deal was signed and when sanctions on Iranian oil sales were lifted. The government was subsequently able to regain control over oil sales.

Individuals who had sold Iranian oil but failed to return the proceeds were imprisoned. With the ability to sell oil again through legal and transparent channels, the government was able, for a time, to manage its oil revenues and spending with greater control.

How did money from oil sales go unreturned?

After US President Donald Trump withdrew the United States from the JCPOA in 2018 during his first presidential term, the Iranian government once again had to rely on private oil traders to sell its oil. But the problems associated with selling oil through intermediaries rather than official state channels, including delays in returning revenues, accounting discrepancies, debts owed by oil sellers to the government, and the occasional seizure of Iranian oil shipments at sea, once again constrained the government’s ability to manage its oil revenues.

Moreover, the US expanded its sanctions beyond Iranian government institutions and interests, adding bank accounts involved in transactions with the Iranian government, currency-exchange offices, companies, and individuals to its sanctions lists. As a result, the time between individuals participating in Iran’s oil-trading network and being sanctioned themselves, along with their assets and companies, and having their accounts blocked or frozen grew progressively shorter.

This contributed to an accumulation of debts owed by sanctioned oil traders – no longer able to access their accounts – to the government. It also left Iran with little choice but to expand its private oil-sales network. That meant increasing the number of people involved in trading Iranian oil, reducing the volume of oil allocated to each individual or company and, ultimately, increasing the risk that the proceeds would not be returned.

Iranian officials have also accused trustees of exploiting the sanctions workarounds to enrich themselves.

The billions of dollars owed by private oil sellers to the Iranian government are a combination of outstanding payments, disputed financial obligations and allegations of corruption. Iran’s judiciary chief recently addressed the issue, warning that oil sellers who refuse to return the proceeds from oil sales will face legal action. But such warnings do not change the sanctions environment or remove the obstacles that prevent some oil sellers from returning the money.

The Cuban government is pushing ahead with its plans to transition to renewable energy, amid a de facto oil blockade from the United States that has strangled the island’s economy.

In an interview with the Reuters news agency on Monday, Cuban Minister of Energy and Mines Vicente de la O Levy explained that the blockade has forced Cuba to explore domestic alternatives to foreign fuel imports.

“We are seeking our own alternative solutions, using our own resources, our sun, wind, tides, fuel, Cuban crude oil and the gas produced in our wells,” de la O Levy said.

He said 144 solar farms with a combined capacity of about 1,418 megawatts have been installed on the island in recent years.

China has been the largest supplier of solar panels to the island, and shipments have increased since the blockade began in early January.

At the time, US President Donald Trump halted all oil shipments from Venezuela, a close ally of the Cuban government.

Later that month, Trump also announced he would impose heavy tariffs on any country that exported oil to Cuba, justifying the threat by calling the island’s government a “national security” threat.

Since then, only a single oil tanker from Russia has reached Havana. The US has increased its shipments of oil to Cuba’s private sector, but it has largely barred fuel exports for nationalised industries on the communist-led island.

The government-run electrical grid, widely considered to be antiquated, relies heavily on fossil fuels. Only 40 percent of Cuba’s electricity comes from ‌‌‌‌domestic ‌‌‌‌oil production, according to the International Energy Agency.

As of 2023, only nine percent of the country’s energy consumption was covered by renewable sources.

De la O Levy admitted in his interview with Reuters that the country was facing difficulties. The blockade has caused shortages of medicine, water and fuel, pushing Cuba to the brink of a humanitarian crisis.

“We are surviving and moving forward, little by little, even if not at the pace we would like,” he said.

“We face long hours of blackouts and lack fuel for cooking and transportation. We lack fuel, but we are gradually making headway through our own solutions and our people.”

Cuba’s production of domestic crude oil remains stable, he added, but is almost entirely allocated to power plants.

The United Nations and human rights watchdogs have criticised the oil blockade as a violation of international law.

Cuban Foreign Minister Bruno Rodriguez Parrilla also condemned the oil blockade in his speech at the UN General Assembly last month.

“It is an unusual and unprecedented action,” Rodriguez said of the blockade.

“A superpower unilaterally deprives all states of their right to export the commodities that they wish to the country that they wish.”

The US has maintained an economic embargo on Cuba for more than 60 years, since the Cold War era.

But since taking office for a second term as president, Trump has sought to squeeze Cuba’s economy further, as part of a “maximum pressure” campaign. His administration has indicated that it wants to topple Cuba’s government.

On October 7, US authorities announced they had seized 90 biodiesel fuel shipments valued at over $2.8m destined for Cuba.

“These shipments were part of an attempt to unlawfully export fuel to Cuba in violation of federal export laws,” US Immigration and Customs Enforcement (ICE) said in a statement.

But in his interview with Reuters, de la O Levy denied the Cuban government had any link to the shipments.

“No Cuban state-owned company has managed to secure a fuel contract, whether for small or large quantities,” he said.

He added that any US oil shipments to private firms fall far short of the country’s requirements.

“I would venture to say that the amount entering the country doesn’t even cover 3 percent of its fuel needs,” de la O Levy said.

Tehran, Iran – Iranian authorities have signalled they intend to disrupt an Arab-operated and United States-assisted shuttle system that has enabled more energy exports through the Strait of Hormuz during the US-Israel war on Iran.

With the US naval blockade of Iran’s southern ports in place and sanctions tightening, Tehran has said it will pursue military and diplomatic efforts to put pressure on Washington to submit to its demands regarding reopening the Strait of Hormuz.

This strategic waterway, through which roughly a fifth of global oil and gas flowed before the war, has been largely closed to shipping following Iranian attacks since the US and Israel launched strikes on Iran on February 28.

But the US Navy has reportedly opened up a route so Gulf states can export oil and other commodities amid an energy crisis.

Iran’s security chief Mohsen Rezaei responded on Sunday night, saying the shuttle system is now an explicit target for Tehran.

Rezaei claimed that the US Central Command, with the assistance of the United Arab Emirates military, was using smaller vessels to transfer oil to larger tankers. He claimed Iran had been striking five or six participating vessels nightly for weeks.

“You are smuggling, but the strait is under Iran’s control, and we manage it,” he asserted.

This appeared to be a taunt aimed at US President Donald Trump, who has hailed energy exports at times reaching pre-war levels over recent weeks.

Rezaei appeared to give the impression that Iran wants to have lasting authority over Hormuz, and promised a harsh response if Iran’s energy and civilian infrastructure were attacked again.

His threats appeared aimed at Arab regional states, with a warning that digital infrastructure could be targeted. Rezaei threatened US-linked cables, data centres and artificial intelligence facilities in the UAE and around the Strait of Hormuz.

Rezaei also accused Saudi Arabia of helping the US move oil around Iran’s restrictions. But he did not threaten a direct attack against Riyadh – which is currently being targeted by Yemen’s Tehran-aligned Houthis.

In early September, Iran’s Islamic Revolutionary Guard Corps (IRGC) threatened tankers at ports and anchorages in Kuwait and Bahrain, citing US attacks on Iranian tankers. It accused both countries of complicity through hosting US armed forces.

Iran has claimed the US accepted some of Tehran’s seven conditions for the full reopening of the Strait of Hormuz and ending the war. But Tehran insists that a deal will only materialise when all its demands are met.

Hamidreza Azizi, a senior Iran analyst at the Crisis Group, said this reflects Tehran’s apparent assessment that it is under no immediate pressure to reach an agreement with the US since its pressure in the Hormuz has a global impact.

“The question, however, is whether Tehran is overestimating its ability to sustain this pressure, given the growing economic costs of the confrontation for Iran itself,” Azizi wrote on X.

Transfer system

The system involves very large crude carriers (VLCCs) and smaller vessels coordinating with the US military to load crude oil at Arab ports and use southern corridors near the coast of Oman to exit the strait.

Vessels often switch off their transponders and travel at night to minimise the risk of being targeted by the Iranians. After ship-to-ship transfers in the Gulf of Oman, some of the shuttles come back to load more.

Multiple vessels were targeted overnight Sunday to Monday, including two outbound tankers and one in anchorage near Oman’s port city of Sohar, where ship-to-ship transfers are allegedly being conducted.

Other vessels were targeted by projectiles last week, indicating that attacks have extended beyond the Strait of Hormuz to target the shuttle system.

The IRGC has also increasingly driven a narrative that naval mines, believed to have been planted across the Strait of Hormuz since the start of the war, pose a serious threat to vessels attempting to navigate the waterway without coordinating with Iran’s Persian Gulf Strait Authority.

The IRGC said three tankers suffered major damage over the weekend after being struck by mines. It also released footage of one ship ablaze that is said to have been struck by a mine, although the footage did not appear to show a mine going off.

‘Cascading impact’

The shuttle system has provided Arab national oil companies with a way out of Hormuz via the southern corridor near Oman.

Michelle Wiese Bockmann, a London-based senior maritime intelligence analyst at Windward, said this system has proven highly effective.

“Under international maritime law, which underpins 11 billion tonnes of seaborne trade annually, vessels have what’s called the right of transit passage,” Bockmann told Al Jazeera. “So, what Oman has done is allow vessels to go through under international maritime law, but they have had US military assistance.”

Tehran says shipping will be disrupted so long as the US continues its choking naval blockade against Iran, which has also stepped up its efforts to counter efforts by Arab states to export oil. At least 15 ships are believed to have been targeted in October so far, according to Winward.

“The more effective the route has become in facilitating the transport of oil and gas, the less leverage Iran has over Hormuz, and more attacks we are seeing on vessels that are using that southern corridor,” Bockmann said.

Windward’s data shows 31 ships transited the Strait of Hormuz daily in the final week of September. This was considerably lower than the 138 before the war.

Eighty-seven percent of the 45 ships targeted by Iran during the third quarter of 2026 were tankers.

Around 47 percent belonged to Gulf Arab energy companies’ national shipping fleets, Windward noted, and 93 percent of the strikes took place in the Strait of Hormuz. Most attacks targeted vessels transiting the southern corridor with their transponders turned off.

These attacks have contributed to a massive increase in freight costs. Freight represented 25-30 percent of Gulf crude’s cost, versus just 1 to 3 percent before the war, according to Windward. National oil companies have resorted to offering discounts of up to $35 per barrel below official selling prices.

The main reason for the rise is a shortage of tankers willing to make the dangerous crossing. Between 15 and 20 percent of very large crude carriers (VLCCs) are tied up with an inefficient logistics system that relies on shuttle transfers, complicated by escalating attacks and exposure at loading ports and anchorages.

“This is having cascading impacts for all vessel classes on freight and values across the world,” Bockmann said.

The Swedish academy says the academics’ models are ‘now used by central banks and ​governments around the world’.

The ⁠2026 Nobel Prize in Economic Sciences has been awarded to US academics Robert Hall and Michael ⁠Woodford for their work on how monetary and fiscal policy can help stabilise fluctuations in the economy, according to the Royal Swedish Academy of Sciences.

The winners of the prestigious award, formally known ⁠as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel and the final prize to be given out this year, were announced on Monday.

The two laureates developed new macroeconomic models that improve people’s ability to implement effective stabilisation policies, enabling fiscal and monetary policy measures that can reduce damaging swings in the economy.

“The laureates’ work has provided us ‌with a stable theoretical foundation for the models that are now used by central banks and governments around the world,” John Hassler, chair of the Committee for the Prize in Economic Sciences, said in a statement.

“With them, we are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume.”

During the oil crises in the 1970s, the existing Keynesian models used to determine when and how measures should be implemented to tackle recessions or other economic fluctuations stopped working. Hall and Woodford then developed new tools to understand what policy responses could be the most effective.

“Rather than basing the models on statistical links between macroeconomic variables, such as inflation, production and consumption, they chose to build them on a microeconomic foundation,” the academy said. “This encompasses an understanding of how the total mass of individual households and businesses affect the economy through their actions.”

The economics prize, first awarded ⁠in 1969, is not part of the five original awards ⁠created in the 1895 will of industrialist and dynamite inventor Alfred Nobel, but was instead established by Sweden’s central bank.

The majority of previous laureates have been from the United States. Only three women have ⁠ever won, most recently Claudia Goldin in 2023 for her work on how gender has affected pay and employment over time ⁠in the US.

Last year’s winners – Joel Mokyr, Philippe Aghion and Peter Howitt – won for ‌their work on “creative destruction” and how new technology and production methods can boost growth and living standards.

Like the other Nobel awards, the economics prize consists of a diploma, a gold medal, and a $1.2m cheque.

The Nobel prizes for medicine, physics, chemistry, literature and peace were announced last ‌week, with South African jurist Navi Pillay and Canadian writer Anne Carson among the winners.

US, Australia, Canada, Japan, South Korea and New Zealand among countries urging citizens to avoid travel to Kingdom.

Several countries have warned their citizens against travel to Saudi Arabia following a series of Houthi attacks on airports in the kingdom.

On Monday, Australia and New Zealand became the latest to issue advisories against travelling to the kingdom, following similar warnings from the United States, Canada, the UK, South Korea, and Japan.

Australia’s Department of Foreign Affairs and Trade said Australians should avoid King Khalid International Airport in Riyadh and “reconsider” travel to other Saudi airports.

New Zealand’s Ministry of Foreign Affairs and Trade urged citizens not to travel to the Saudi capital’s main gateway and the provinces of Najran, Jazan and Asir for any reason, and to avoid “non-essential” travel to Saudi Arabia as a whole.

The US embassy in Riyadh on Sunday advised US citizens to reconsider travel to the kingdom, citing the threat of attacks by Iran and the Iranian-backed Houthis.

Global Affairs Canada issued an advisory against non-essential travel to any part of Saudi Arabia.

South Korea’s Ministry of Foreign Affairs recommended that its citizens in Saudi Arabia leave unless they are on essential business and advised anyone planning to travel to the kingdom to cancel their trip.

The UK’s Foreign, Commonwealth and Development Office urged citizens to avoid travel to Jeddah and Dammam, and to all airports apart from Medina International Airport, except for essential reasons.

The warnings come as Saudi Arabia reels from five attacks on its airports in less than a week.

One person was killed and 11 others were injured on Sunday when a projectile struck King Khalid International Airport, according to Saudi Arabia’s General Authority of Civil Aviation (GACA).

A Houthi strike on the same airport on Saturday killed 13 people and injured more than 300 others, marking the deadliest attack on Saudi Arabia in more than a decade.

The Houthis claimed responsibility for all four strikes on Saudi airports before Sunday’s attack, which has yet to be claimed by any group.

King Khalid international airport and King Fahd international airport in Dammam remain closed following the attacks, causing significant disruption to aviation across the Middle East.

The attacks have also disrupted flights to and from King Abdulaziz International Airport in Jeddah.

More than 150 flights were cancelled and 374 flights were delayed at the Jeddah airport on Sunday, according to the flight tracking website Flightradar24.

Brendan Sobie, an independent analyst and consultant in Singapore, said it was too early to predict the ramifications of the attacks for aviation across the region and beyond.

“As has been the case with the Iran war and the impact from that crisis on the UAE, Kuwait and Bahrain, the impact of this latest crisis really depends on how long it lasts, how long Riyadh airport remains closed, and how long and to what extent are the restrictions once it reopens,” Sobie told Al Jazeera.