exports

The announcement by the head of Yemen’s Presidential Leadership Council, Rashad al-Alimi, to resume oil exports starting July 20 following a halt that began in late 2022 has revived hope that the Yemeni government’s most important source of foreign currency will be restored. The government, struggling economically and facing continued Houthi rebel control over Yemen’s northwest, needs the money – and has pledged to direct the revenues towards paying salaries, improving services, and supporting economic stability.

However, the flow of oil from Yemen’s fields to global markets does not depend solely on a decision made by politicians; it requires creating a security environment, after years of war, that allows for the protection of facilities, pipelines and ports, in addition to restoring the confidence of shipping and insurance companies, as well as international buyers.

With Yemen’s war threatening to escalate after a four-year period of calm, the stability the country needs to resume oil exports may be elusive.

The export test

Yemen has proven oil reserves estimated at about three billion barrels, primarily concentrated in the Masila, Marib and Shabwa basins. While the United States Energy Information Administration (EIA) indicates that the country still holds sufficient resources for production and export, the security environment hinders their extraction and transport to global markets.

Yemen’s oil production reached a historical peak of about 439,000 barrels per day (bpd) at the beginning of the millennium, but it has gradually declined due to the depletion of some old fields. This decline accelerated with the outbreak of the war in 2014 and the targeting of oil infrastructure, settling at a level of 19,000bpd in 2024, according to the International Monetary Fund (IMF).

A report published by S&P Global estimated actual production, following the halt in exports, at about 7,000bpd to 10,000bpd in 2023 and 2024, almost all of which was for domestic use.

Yemeni Minister of Oil and Minerals Mohammed Bamqaa said that export revenues would be deposited in the Central Bank as part of a government directive to bolster the state’s financial resources, pointing out that there are oil stockpiles exceeding 1.7 million barrels ready for export.

Bamqaa added that total production will initially reach about 60,000bpd. He explained that the ministry has directed oil companies to prepare timelines to increase production and develop the fields, in a way that raises production capacity by up to 25 percent during the first month after exports resume.

Professor of financial economics at Hadramout University, Mohammed al-Kasadi, told Al Jazeera that while he expected oil production to meet the 60,000bpd figure mentioned by Bamqaa, the figure does not reflect the actual volume of exports, as the local market consumes about 20,000bpd to operate refineries and power plants, which makes the quantities available for export likely to hover at about 40,000bpd.

Hassan Mohammed Moghalis, an expert in Yemeni affairs, told Al Jazeera that most of the fields located in government-controlled areas remain capable of production. At the forefront of these are the Masila fields in Hadramout and the al-Uqla fields in Shabwa, which represent the fundamental base for any anticipated resumption. Moghalis explained that crude oil can be transported via pipelines to Arabian Sea ports.

However, Moghalis pointed out that resuming exports does not simply mean opening the valves, as some fields require maintenance and restoration after a long period of suspension. Additionally, pipelines and pumping stations require technical reviews to ensure their readiness before resuming regular operations.

Market confidence

Despite the importance of restarting production at the oilfields, experts believe bigger obstacles await after the oil reaches Yemen’s ports. Houthi attacks targeting export ports in Hadramout and Shabwa in late 2022 made shipping and insurance companies more wary of handling Yemeni crude, pushing up insurance costs and weakening buyers’ willingness to enter into contracts.

The Houthis have conditioned the resumption of exports on them receiving a share of the revenues to cover public sector salaries.

Al-Kasadi, of Hadramout University, says that the government’s success in pumping oil to the port does not automatically guarantee a successful export process. Maritime transport and insurance companies primarily assess the level of security risks and the likelihood of ports or tankers facing renewed attacks – currently a particular concern in light of Houthi attacks on shipments tied to Saudi Arabia, which supports the Yemeni government.

Al-Kasadi added that the oil market relies heavily on trust and stability. Therefore, any export operation requires buyers to be convinced that shipments will depart safely and that export activities will not suddenly halt again.

Moghalis, the expert, believes that providing military protection for ports and pipelines is the first step, but not the only condition. It is also imperative to restore the confidence of insurance companies and international buyers, as oil does not reach markets solely through production, but rather via an interconnected system of transport, financing and insurance.

He added that any new attack on the ports, even if it does not cause significant material damage, could be enough to send the sector back to square one, given shipping companies’ sensitivity to risks in conflict zones.

But, as al-Kasadi pointed out, a resumption in exports is vital. He argued that the halt in exports was not merely an oil sector crisis, but rather developed into a comprehensive financial crisis. The government lost its most crucial source of foreign currency, which negatively impacted the Yemeni rial’s exchange rate and the state’s ability to finance basic services.

Economic pressure

Despite the importance of resuming exports, Yemeni affairs expert Abdul Karim al-Ansi warned against overstating its immediate impact on the Yemeni economy.

He told Al Jazeera that the resumption of exports will undoubtedly provide a vital source of foreign currency and afford the Central Bank greater leeway to support monetary stability. However, it will not be enough on its own to end the economic crisis, as the Yemeni economy faces broader challenges related to the division between government- and Houthi-controlled areas, weak non-oil revenues and declining economic activity.

Al-Ansi added that the extent to which Yemenis benefit from oil revenues will ultimately depend on how these funds are managed and the government’s ability to channel them into salaries and basic services, rather than solely on the volume of exports.

And while successful initial shipments could send a positive signal to markets and investors, al-Ansi stressed that the real test would be whether exports can be sustained. Yemen’s economy needs a steady flow of foreign currency, rather than sporadic shipments that stop whenever security conditions deteriorate.

The suspension of oil exports has not only deprived the government of its most important source of revenue, but also intensified pressure on the foreign exchange market. As dollar inflows from oil sales have dried up, demand for foreign currency has remained high to finance imports of essential goods, particularly food, fuel and medicine. The resulting shortage has weakened the Yemeni rial and contributed to rising inflation.

These pressures have been compounded by the monetary division between the Central Bank in Aden and the Houthis in Sanaa, which has created two separate financial systems and exchange rates. The split complicates monetary policy and limits the authorities’ ability to use oil revenues in a coordinated way to stabilise the economy.

Al-Kasadi said that Saudi financial support for the government had recently helped contain currency volatility in government-held areas. However, he stressed that such support was no substitute for a steady and sustainable flow of oil revenues – which needs a period of stability, something that may be difficult if the conflict escalates in Yemen, as it is currently threatening to do.

Iran accelerated oil exports through Asia after the United States temporarily eased restrictions in mid-June, allowing the country to move an estimated 70 million barrels of crude before sanctions were reinstated, The Wall Street Journal reported Sunday, citing analysts and shipping data.

South Korea’s exports of K-pop albums hit a record high in the first half of the year, government data showed Friday, driven in part by BTS‘ fifth studio album, “Arirang.”

K-pop album exports reached US$257.48 million in the January-June period, up 125 percent from a year earlier, according to import and export trade statistics from the Korea Customs Service.

The United States was the largest importer of K-pop albums during the period, with imports totaling $74.12 million, followed by China and Japan at $61.18 million and $45.61 million, respectively.

Rounding out the top 10 were Germany, Taiwan, Hong Kong, the Netherlands, Britain, France and Poland.

BTS, one of the world’s top boy bands, released its first new album in three years and nine months in March. Both the album and its lead single topped Billboard’s main charts.

Earlier in February, BLACKPINK released its third mini album, “Deadline,” which had sold nearly 2 million copies as of June.

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Ukraine says drones hit 11 Russian vessels in the Azov Sea, targeting tankers, dry cargo ships, and a tugboat overnight.

Russia says it is working to reroute ⁠grain shipments from the Sea of Azov after its vessels came under Ukrainian attacks in the sea, as Kyiv claimed it hit 11 more Russian vessels in overnight strikes.

Russia was preparing to use “alternative shipping routes” and may redirect cargo “to other modes of transport”, Russia’s Ministry of Agriculture said in a statement on Tuesday.

The ministry added that “the situation in the Azov Sea will not affect the domestic market’s food supply or our country’s export capabilities.”

Ukrainian military commander Robert Brovdi said on Telegram on Tuesday that drone attacks hit 11 Russian vessels in the Azov Sea overnight. The targets included five tankers, five dry cargo vessels and a tugboat, bringing the total number of vessels struck in the past nine days to 116, he said.

Russia’s Foreign Minister Sergei Lavrov accused Ukraine of carrying out “acts of terrorism”.

“What the ‌Ukrainian regime is doing goes beyond even piracy. Pirates, at least, plunder and keep the spoils for ⁠themselves. But here, it ⁠benefits neither them nor anyone else – the goal is simply ⁠to cause damage and ⁠intimidate. It is ⁠terrorism, pure and simple,” Lavrov said.

The attacks come as Ukraine steps up long-range strikes on Russian oil refineries and other energy infrastructure, triggering a fuel crisis in Russia.

Russia’s Ministry of Defence said its air defences intercepted 288 Ukrainian drones across the country overnight. Russian authorities said falling debris from a drone attack injured one person and damaged houses in several villages.

One attack sparked a fire at the Afipsky oil refinery, authorities in Russia’s Krasnodar region reported.

Ukraine also struck another oil refinery in the republic of Bashkortostan, which had been hit twice in September 2025. Governor Radiy Khabirov said on Telegram that the attack hit an industrial area in the city of Salavat.

Ukrainian strikes on Russian oil refineries have contributed to a fuel crisis, leading Moscow to ban some fuel exports amid a global surge in energy prices.

Russia’s Defence Ministry also said it hit targets in Kyiv, port infrastructure in Ukraine’s Odesa region, and fuel storage facilities for Ukrainian forces in the port of Yuzhny.

Ukrainian navy spokesman Dmytro Pletenchuk said ⁠Russian forces struck ⁠a civilian vessel ⁠near Ukraine’s Black Sea port ‌of Odesa. Pletenchuk ⁠reported no casualties ⁠in the ⁠attack.

Meanwhile, Ukrainian military officials said their forces shot down seven missiles and 108 drones across the country.

China has raised its purchases of oil from the Middle East in recent days, with deep discounts offered by its main supplier Saudi Arabia expected to further boost its buying, the Financial Times reported Monday.

China bought at least 26M

June 22 (UPI) — China announced Monday that it is adding 10 U.S. defense companies to its export control list, restricting business with those firms.

The move prohibits Chinese companies from exporting certain items to those companies, including drones, robotic hardware and software that is used for defense and national security capabilities. There are also items for nonmilitary uses that are restricted.

The companies added to the export control list are: AVEOX, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace and Technologies, Oshkosh Defense, L3Harris Maritime Services, MP Materials and USA Rare Earth.

“Exporters are prohibited from exporting dual-use items to the aforementioned 10 entities, and any organization or individual from any country or region is prohibited from transferring or providing dual-use items originating in China to the aforementioned entities; any ongoing related export activities must be immediately ceased,” the Chinese Ministry of Commerce announced.

The Chinese Finance Ministry also announced that 46 U.S. companies are banned from participating in government procurement projects. Many of those companies are also defense contractors.

Companies that are banned from participating in government procurement projects include Lockheed Martin, Raytheon and General Atomics.

Both bans take effect immediately, however China has included some flexibility in situations where exporting is “truly necessary.”

China’s new trade restrictions are in response to the Pentagon accusing a number of Chinese companies of aiding its military. The Pentagon updated its list of companies believed to be aiding the Chinese military earlier this month, blocking the Department of Defense from awarding direct contracts to those companies.

The update included the additions of Alibaba Group, Baidu and BYD, a Chinese automaker.

June 19 (Asia Today) — South Korea is seeking to transform its defense industry into a national growth engine by integrating military procurement, weapons exports, advanced technology and industrial policy, government and industry officials said Friday.

Officials at a public-private seminar in Seoul rejected the long-standing argument that growing foreign orders could divert production capacity from the South Korean military and delay domestic weapons deliveries.

Instead, they said an analysis of about 2,000 South Korean defense companies found that exports increased factory utilization, encouraged investment in research and production facilities and eventually reduced manufacturing costs.

The findings were presented at a seminar titled “A New Leap Forward in Acquisition and the Defense Industry,” held at the Fairmont Ambassador Seoul in the city’s Yeouido financial district.

The Defense Acquisition Program Administration organized the event as it marked the 20th anniversary of its establishment.

Participants included lawmakers, officials from the defense, industry, science and small-business ministries, defense company executives and academic researchers.

They called for an end to treating military procurement and defense exports as separate policy areas.

Lee Yong-cheol, minister of the Defense Acquisition Program Administration, said South Korea’s annual defense exports had grown from about $250 million when the agency was established to $15.4 billion last year.

“Defense exports are no longer merely a supplement to domestic military procurement,” Lee said. “They have become a central growth engine driving the Republic of Korea as a whole.”

Lee said South Korea also needed to move beyond selling individual weapons.

He proposed combining weapons with energy systems, infrastructure, maintenance, repair and overhaul services and other forms of industrial cooperation.

“The era of selling weapons as stand-alone products is over,” Lee said. “We will transform the K-defense paradigm through cross-industry package cooperation.”

Lawmakers from South Korea’s governing and opposition parties pledged bipartisan legislative support for faster procurement and stronger financing for small and midsized defense companies.

They said a system that can take about 15 years to plan, develop and deploy a weapon is not suitable for an era in which artificial intelligence, drones and robotic systems evolve rapidly.

Participants also cited research indicating that financial instability among smaller suppliers, rather than export production, was a more important cause of delivery delays.

They called for expanded government-backed financing to prevent small manufacturers in the defense supply chain from being overwhelmed by debt and working-capital shortages.

Study links exports to stronger domestic production

South Korea’s defense industry has long debated whether large export contracts weaken or strengthen the country’s own military procurement.

Critics have warned that foreign orders could occupy production lines and delay the delivery of weapons to South Korean forces.

Supporters have argued that exports create economies of scale, preserve production capacity and lower the price paid by the South Korean military.

Research presented at Friday’s seminar supported the second view.

A team led by researchers from Myongji University analyzed data from about 2,000 South Korean defense-related companies.

The analysis found that increasing exports produced an immediate rise in factory utilization. Higher utilization was then associated with greater investment in research, development and production facilities.

Researchers said the benefits became more evident about three years after an export increase.

The analysis identified improvements in operating profit, lower production costs and greater independence in critical technologies after that period.

Repeated production also allowed factory workers and engineers to improve their skills and reduce defects, a process commonly described as a learning effect.

At the same time, producing weapons in larger quantities spread fixed development and manufacturing expenses across more units.

Researchers said those effects increased the competitiveness of South Korean products in foreign markets while potentially lowering the cost of weapons purchased by the South Korean military.

Industry experts cited South Korea’s large exports of K2 tanks and K9 self-propelled howitzers to Poland as an example.

They said the contracts increased domestic production, helped reduce unit costs and accelerated work on upgraded models.

Kim Myung-keun, an executive at Hyundai Rotem, said the company achieved economies of scale after receiving Poland’s large K2 tank order.

“Mass production lowered costs, reduced the acquisition cost for our own military and accelerated the development of upgraded models,” Kim said.

Yoon Byung-jo, an executive at SNT Motiv, said repeated production generated through large export orders also strengthened technical capabilities on factory floors.

“The learning effect accumulated by technicians during repeated production is the most powerful tool for reducing defects in critical components and increasing technological independence and localization,” Yoon said.

Lee Jung-hyun, a Myongji University professor involved in the study, said the analysis did not identify export volume as the principal cause of delayed deliveries.

“The real causes of delivery delays were companies’ debt ratios and financial soundness,” Lee said. “Exports instead improved operating profits and technological capabilities after a time lag of about three years.”

Lee said the government should strengthen the financial stability of smaller defense companies rather than restrict exports.

Officials seek to shorten 15-year procurement cycle

Government officials said South Korea’s traditional weapons acquisition process is too slow to keep pace with civilian advances in AI, drones, robots and human-machine teaming systems.

Weapons programs can take about 15 years from initial planning through development and operational deployment.

Officials said that schedule risks delivering technology that has already become outdated by the time it reaches military units.

Won Jong-dae, an assistant defense minister, said the existing system had become a national security obstacle.

“In the age of AI and drones, an acquisition process that takes 15 years is an impediment to security,” Won said.

He said the government would seek legislation tentatively called the Advanced Defense Capabilities Projects Act to shorten the process from initial requirements planning through deployment.

Kim Seong-su, a senior research and development official at the Science and Technology Ministry, said innovation in the civilian sector was advancing more quickly than military technology.

Kim called for an adaptive research and development system that would allow mature commercial technologies to be introduced into the military without passing through the full conventional development process.

The acquisition agency said it plans to expand rapid-introduction programs, particularly for drones and AI-related technologies.

The programs would allow the military to test and deploy promising civilian products more quickly while making adjustments based on operational experience.

Jeong Hwan, chief executive of infrared sensor manufacturer i3system, said smaller companies with advanced commercial technologies often cannot withstand the military’s complicated testing requirements and lengthy acquisition schedule.

He urged the government to make rapid acquisition programs more flexible and accessible to technology companies.

Financial support sought for smaller suppliers

Officials said South Korea must also strengthen small and midsized companies that produce components and materials for major weapons manufacturers.

Park Yong-soon, a senior official at the Ministry of SMEs and Startups, said the research presented Friday showed that financial weakness was a major source of supply-chain disruption.

Park said the government would shift policy toward stronger financial support for vulnerable suppliers and seek to increase the share of domestic defense revenue generated by small companies.

Smaller companies currently account for about 18% of South Korean defense industry sales. The government aims to raise the proportion to 25%.

Officials said those businesses can face severe cash-flow pressures because defense contracts require lengthy development, testing and certification before companies receive full payment.

The problem can become more serious when a small supplier must expand production rapidly to meet a major overseas order.

Park said the government must ensure that otherwise competitive companies do not collapse because they cannot obtain sufficient operating capital.

Park Dong-il, a senior official at the Industry Ministry, also warned that South Korea’s export portfolio remained concentrated in ground weapons.

More than 60% of the country’s defense exports come from land-based systems, he said.

Park said the government would work to diversify the industry into aerospace, next-generation satellites and advanced naval vessels while strengthening the domestic manufacturing and component ecosystem.

South Korea plans national security export packages

The acquisition agency said future export efforts would go beyond individual tanks, aircraft or artillery systems.

The government plans to package defense products with energy projects, transportation and industrial infrastructure, information and communications technology, maintenance services and technology transfers.

Officials described the approach as exporting an integrated security platform rather than a single weapon.

They cited Poland as a model.

South Korean arms agreements with Warsaw have included not only K2 tanks, K9 howitzers and other weapon systems but also plans for local production, technology cooperation, training and long-term maintenance.

An industry official said future transactions could involve building a partner country’s broader security and industrial system.

“The business will no longer be about exporting one tank,” the official said. “It will become a platform business that exports an entire national security system.”

Such packages can help importing countries create domestic jobs, develop supply chains and maintain weapons locally.

They can also give South Korean companies access to long-term revenue from training, spare parts, upgrades and depot-level maintenance after the initial sale.

The approach, however, requires coordination among several ministries because infrastructure, export financing and industrial cooperation extend beyond the authority of the acquisition agency.

Kim Il-dong, deputy minister of the Defense Acquisition Program Administration, said procurement and exports should be viewed as two sides of the same coin.

Kim said the acquisition agency could not achieve South Korea’s defense industry goals on its own.

He called for coordinated action by the defense, science, industry and small-business ministries to develop the sector as a strategic national industry.

Seoul targets 5% share of global defense market

The Defense Acquisition Program Administration said it aims to increase South Korea’s share of the global defense market to at least 5% and establish the country as one of the world’s four largest defense exporters.

Officials said South Korea’s defense industry had already approached the global top five based on its 2025 export performance.

Future growth will depend on moving beyond the country’s current strength in tanks, armored vehicles and artillery, they said.

The government plans to support companies working in AI, space systems, drones, advanced ships and autonomous and human-machine teaming technologies.

It also wants to foster globally competitive defense startups and companies capable of reaching valuations of more than $1 billion.

Officials and industry representatives said South Korea’s defense sector had completed an initial period of quantitative growth and now needed to focus on technology, productivity and supply-chain resilience.

“The past 20 years were a period of quantitative growth in which K-defense built weapons capabilities from the ground up,” seminar participants said. “The next 20 years should be remembered as an era of qualitative growth centered on AI, space, drones and unmanned systems.”

They said military procurement and the defense industry should no longer be treated as separate areas.

Instead, both should be viewed as parts of a single strategic industry supporting South Korea’s security, technological development and economic growth.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260619010006831

DUBAI, United Arab Emirates — President Trump threatened Thursday to launch major strikes on Iran and seize control of its oil industry as escalating attacks between the countries pushed the Middle East closer to the resumption of a full-scale war.

Trump said in a social media post that the U.S. would hit Iran “VERY HARD TONIGHT” and would “assume total control” of Iran’s oil and gas industries, including the vital Kharg Island oil terminal, in the “not too distant future.”

The American leader’s latest threats came as efforts to negotiate an end to the war appeared stuck. Trump has voiced his frustration with the stalled negotiations, warning earlier in the week that Tehran would “pay the price” for taking too long to reach a deal.

Iran’s monthslong stranglehold on the Strait of Hormuz has disrupted global energy supplies, driven up fuel prices and made food and other basics more expensive well beyond the region.

The U.S. and Iran traded strikes for a second straight day Thursday after reaching a tenuous ceasefire more than a month ago. While the strikes have increased tensions in the region, they have been more limited compared to the early weeks of the war and negotiations between the U.S. and Iran are ongoing.

Trump’s threats on Thursday, while stark, represented his latest verbal escalation in the Iran war. In April, he warned Iran that “a whole civilization will die tonight, never to be brought back again” if it didn’t agree to his terms, before extending a ceasefire.

Trump weighs trying to seize Iran’s main oil terminal

Kharg Island — located on the other side of the Persian Gulf from U.S. bases in Kuwait and Saudi Arabia — is the beating heart of Iran’s oil industry, through which 90% of its exports pass. It is important because Iran’s coastline is mostly too shallow for tanker ships to dock.

It was unclear how serious Trump was about his threat to seize it.

“My preference has always been to take Kharg Island,” Trump said in an interview Thursday on Fox News. “I don’t know that America has the stomach for it to be honest.”

American troops would be vulnerable on Kharg Island because of its close proximity — about 21 miles — to the Iranian mainland, from which missiles, drones and artillery could be fired.

Trump indicated in the interview that he remains averse to sending U.S. forces into Iran. “We could walk in there tomorrow. We could take soldiers — I don’t want to have boots on the ground. But if I wanted to we could put a small group of soldiers and take over the place.”

Trump compared his threat to take over Iran’s oil industry to how the U.S. assumed control of Venezuela’s oil sector after capturing then-president Nicolás Maduro in January.

Iran says US attacks have made ceasefire `meaningless’

American strikes on Iran that lasted into Thursday morning appeared more intense and widespread than the day before.

Tehran released little information on the extent of the damage and said it fired back at Kuwait, Bahrain and Jordan, as it had the previous day.

It was the third time this week that back-and-forth strikes have rattled the Middle East. The first involved attacks between Iran and Israel, followed by the two rounds of fire between the U.S. and Iran, which hit countries in the region that host American bases.

Iran’s Foreign Ministry said in a statement Thursday that the U.S. attacks had “effectively rendered the ceasefire … meaningless,” without saying it was abandoning it.

U.S. Treasury Secretary Scott Bessent said in a social media post that the U.S. would extract funds from frozen Iranian accounts to offset the costs of damage to American allies as well as any tolls Iran imposes on ships seeking passage through the Strait of Hormuz.

Beyond the deadlock over the strait, the two sides also remain at odds over Iran’s nuclear program, which Tehran insists is peaceful but which the U.S. and Israel fear could be used to build an atomic weapon due to its stockpile of highly enriched uranium. The U.S. and Israel said a major reason they went to war on Feb. 28 was to ensure that Iran would never be able to do that.

Iran has insisted that any deal to end the war must also end fighting in Lebanon between its ally Hezbollah and Israel. But Israeli Prime Minister Benjamin Netanyahu appears intent on pursuing his goal of destroying the militant group.

U.S. strikes Iran and Iran fires back at Gulf states

Central Command said its latest round of airstrikes came “in response to Iran’s unwarranted and continued aggression” and targeted “Iranian military surveillance capabilities, communication systems and air defense sites.” It did not elaborate on the damage done by the strikes, which it said ended just before sunrise Thursday in Iran.

Explosions from the strikes echoed around Iran’s capital, as well as the port city of Bandar Abbas and other southern areas along the Strait of Hormuz. Iran’s paramilitary Revolutionary Guard later said sites hit included a manufacturing complex, a military barracks and a local Guard base outside of Tehran.

Kuwait closed its airspace for several hours because of the attack, but did not elaborate on any damage. Jordan said it intercepted 20 Iranian missiles fired toward an area that is home to a base hosting U.S. troops, though no one was hurt.

Bahrain’s Interior Ministry said an 11-year-old girl was hurt and cars and homes were damaged by debris from interceptions responding to the Iranian attack.

Meanwhile, Israel warned residents in the country’s north to seek shelter after the detection of suspected incoming fire from Lebanon, where Israel is fighting the Iran-allied Hezbollah militant group.

U.S. fires on another merchant ship to enforce blockade

The U.S. military’s Central Command said Thursday that it struck a Guinea-Bissau-flagged tanker attempting to evade the American blockade on Iranian ports. It said the M/T Jalveer was transporting Iranian oil when it was disabled late Wednesday after its crew failed to obey U.S. orders.

It’s the ninth merchant vessel the U.S. military says it disabled to enforce the blockade.

Three Indian sailors were killed when American forces struck the Palau-flagged M/T Settebello on Tuesday, India’s minister overseeing ports and shipping said Thursday on X.

U.S. Central Command said American forces issued warnings before firing on the ship, which it accused of trying to evade the blockade.

The leader of the International Maritime Organization, a United Nations agency, condemned the attack.

Gambrell and Madhani write for the Associated Press. Madhani reported from Washington. AP writers Will Weissert, Collin Binkley, Michelle L. Price and Konstantin Toropin in Washington; Sheikh Saaliq in New Delhi; Munir Ahmed in Islamabad, Victoria Eastwood in Cairo and Russ Bynum in Savannah, Ga., contributed to this report.

Kazakhstan’s Energy Minister Yerlan Akkenzhenov said international partners are urging the country to increase oil exports as concerns grow over disruptions to energy supplies linked to tensions around the Strait of Hormuz.

According to Akkenzhenov, buyers are seeking the maximum possible increase in Kazakh oil shipments due to uncertainty surrounding one of the world’s most important energy transit routes. However, he noted that Kazakhstan faces infrastructure and production constraints that limit how quickly exports can be expanded.

To support higher output, Kazakhstan has postponed planned maintenance work at the Kashagan Oil Field until 2027. The country is also considering increasing crude shipments through the Baku Tbilisi Ceyhan Pipeline, potentially raising volumes from 1.5 million tons to 2.2 million tons annually and beyond.

The development comes as global energy markets remain sensitive to geopolitical tensions involving Iran and the Strait of Hormuz, a key route for international oil and gas exports.

Why It Matters

Kazakhstan’s growing importance highlights how global energy markets are seeking alternative supply sources amid rising geopolitical risks in the Middle East.

Any disruption in the Strait of Hormuz could affect a significant share of global oil shipments, prompting importers to diversify supply chains and reduce dependence on vulnerable routes. Kazakhstan, one of the world’s major oil producers, is increasingly viewed as a reliable alternative supplier.

The decision to delay maintenance at Kashagan signals that Kazakhstan is prioritizing production stability and export capacity at a time when energy security has become a major concern for consuming nations.

The move could also strengthen Kazakhstan’s strategic position in global energy markets, giving it greater influence as countries seek dependable suppliers outside conflict affected regions.

Key Stakeholders

• Kazakhstan – Seeking to expand exports while balancing OPEC+ commitments.
• Yerlan Akkenzhenov – Overseeing the country’s energy strategy.
• Kashagan Oil Field – One of the world’s largest oil fields and a key source of future production growth.
• OPEC+ members monitoring compliance with production agreements.
• Energy importing countries seeking alternative crude supplies.
• Oil traders and global energy markets responding to supply risks.
• Countries along the Baku Tbilisi Ceyhan Pipeline route that facilitate exports to international markets.

Future Outlook

Kazakhstan is likely to face increasing pressure from international buyers if instability around the Strait of Hormuz persists. While production constraints may limit immediate gains, the postponement of Kashagan maintenance suggests authorities are positioning the country to maximize output over the coming years.

The expansion of exports through the Baku Tbilisi Ceyhan pipeline could become increasingly important as energy consumers seek routes that bypass geopolitical hotspots. This would further enhance Kazakhstan’s role in global energy diversification efforts.

However, Kazakhstan must also balance market demand with its commitments under the OPEC+ framework. Any significant increase in production could attract scrutiny from fellow producers seeking to maintain supply discipline and price stability.

If Middle East tensions remain elevated, Kazakhstan is likely to emerge as one of the key beneficiaries of the global search for secure and reliable oil supplies.

With information from Reuters.

June 2 (Asia Today) — U.S. crude oil exports reached a record high in May as demand from Asian and European refiners surged, market data showed.

U.S. crude exports averaged 5.6 million barrels per day in May, surpassing the previous record of 5.2 million barrels per day set in April, according to data from analytics firm Kpler.

The increase was driven in part by a widening price gap between West Texas Intermediate, the U.S. benchmark crude, and Brent crude, the global benchmark.

The spread between WTI and Brent widened to as much as $20.69 a barrel in March, the largest gap in 13 years. In April, the gap averaged $8.86 a barrel, wider than the prewar average of $4.85.

Supply disruptions in the Middle East caused by the war involving Iran also prompted refiners in Asia and Europe to seek more U.S. crude as an alternative.

Asia imported an average of 2.45 million barrels per day, making it the largest destination for U.S. crude for a second consecutive month.

Japan was the biggest Asian buyer, importing 808,000 barrels per day, up 32% from the previous month.

Europe ranked second, importing 2.4 million barrels per day.

Italy led European demand with imports of 335,000 barrels per day. Bulgaria, Croatia, Turkey and Greece also made rare purchases of U.S. crude, according to the data.

Industry analysts expect U.S. crude exports to decline from June. Consulting firm Energy Aspects projected exports would fall to an average of 4.9 million barrels per day in June and 4.6 million barrels per day in July.

Sources and analysts said declining WTI inventories in the United States are expected to encourage domestic storage and reduce export volumes.

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260602010000543

Mérida, June 2, 2026 (venezuelanalysis.com) – The Venezuelan government launched the First National Meeting of the 2026 Communal Coffee Plan on Saturday, May 30, as part of efforts to deepen popular control and increase coffee production for export. 

The central event took place in the Ospino municipality of Portuguesa state, where authorities inaugurated the El Cafetal social property company (EPSDC), a coffee-processing plant transferred to collective communal management.

According to officials, the infrastructure will serve nearly 80 coffee-producing communes from the central-western states of Portuguesa, Lara, Yaracuy, and Trujillo. The facility, previously ran by the state-owned Venezuelan Coffee Corporation, was transferred to a network of several communes.

Acting President Delcy Rodríguez opened the event, emphasizing the role of grassroots production in the sector. 

“Coffee is one of the most important items where the communal economy already has the entire production chain organized,” she stated during a tour of the relaunched plant.

Rodríguez hailed output growth to nearly 4 million quintals in the 2025-2026 cycle, with 1.8 million quintals destined for national consumption and 2.1 million for export. According to official figures, production increased by around 25 percent over the past five years.

In her address, Venezuela’s acting president emphasized the importance of increasing exports to international markets while maintaining accessible prices domestically. “This is the path of a country that builds a sovereign future,” Rodríguez concluded.

Communes Minister Ángel Prado, who led an assembly with thousands of coffee producers and communards on Saturday, echoed the target of boosting non-oil exports from communal organizations. “You can count on the communal economy, President,” he said in his speech.

Agriculture Minister Vladimir Padrino López, who previously served as defense minister, also attended the event and called for joint efforts between his ministry and communal structures to support coffee producers. 

“We have to merge, work with a special synergy because in the end, where is the campesino? Where is the coffee grower? He is in a communal circuit, he is in a commune,” Padrino expressed. 

For their part, grassroots producers hailed the transfer of the processing plant as a long-awaited conquest. Yamileth Ortiz, a spokeswoman from El Cafetal Commune in Portuguesa state and a worker at the plant since 2008, emphasized the project’s potential to elevate coffee production in the Caribbean nation.

“There is an expectation to receive crops from at least 10 states and strengthen the national links between coffee-producing communes,” she told reporters.

The Venezuelan government has facilitated fuel supplies, seeds, and technical guidance to support producers taking part in the El Cafetal project. In recent years, Venezuelan coffee growers have highlighted fuel shortages, overpriced inputs, and a lack of access to credit as obstacles to maintaining production levels. Rural organizations have likewise denounced the influence of agribusinesses in establishing crop prices.

Edited by Ricardo Vaz in Caracas.

The central bank on Thursday raised its economic growth forecast for South Korea to 2.6 percent for 2026 amid solid exports driven by a semiconductor super cycle.

The revision by the Bank of Korea (BOK) represents a 0.6 percentage-point increase from its previous forecast of 2 percent issued in February.

It is the largest upside revision since May 2021, when the BOK raised its growth projection by 1 percentage point from 3 percent to 4 percent.

For 2027, the central bank estimated its growth outlook at 2.1 percent.

The South Korean economy grew 1.7 percent in the first quarter, marking the sharpest quarterly growth in 5 1/2 years.

The revised outlook broadly aligned with forecasts from other institutions.

The International Monetary Fund (IMF) projected growth of 1.9 percent this year, while the Asian Development Bank (ADB) projected 1.9 percent growth.

The Korea Development Institute (KDI) earlier improved its growth forecast to 2.5 percent for 2026 from 1.9 percent.

The BOK also revised up its inflation prediction to 2.7 percent from 2.2 percent, citing higher international oil prices in the aftermath of the U.S.-Iran war.

For 2027, consumer prices are estimated to rise 2.3 percent, according to the BOK.

“The Korean economy is projected to expand by 2.6 percent this year, well above the February forecast of 2 percent, driven by robust semiconductor exports, while government measures, including the supplementary budget, partially offset the Middle East-driven supply shock,” the BOK said in a release.

BOK Gov. Shin Hyun-song said in a press conference that strong exports will likely contribute 0.7 percentage point to the country’s growth this year, alongside the 0.2 percentage point gains generated by the government’s fiscal support and the 0.1 percentage-point increase brought on by the local stock market rally. On the other hand, the ongoing U.S.-Iran war will drag down the economy by 0.4 percentage point, he added.

“Based on our analysis, we concluded that if the situation in the Middle East is resolved early, this year’s growth rate could exceed 2.6 percent,” he said. “We do not think the growth is a short-lived trend.”

The central bank presented an optimistic scenario in which semiconductor-driven exports gain further momentum, raising its growth forecast by 0.5 percentage point for 2026 and 0.3 percentage point for 2027.

Under a pessimistic scenario, however, a possible slowdown in artificial intelligence investments would lower economic growth by 0.3 percentage point this year and 0.2 percentage point next year, the central bank said.

In line with the upbeat outlook, the BOK kept the key interest rate unchanged at 2.5 percent but signaled a possible rate hike in the second half.

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The latest developments surrounding Nvidia’s H200 chip sales to China highlight the growing complexity of the technological rivalry between the United States and China. Although Washington has reportedly approved several major Chinese firms to purchase Nvidia’s advanced artificial intelligence chips, no deliveries have taken place so far.

The situation reflects how geopolitical competition is increasingly disrupting even officially approved commercial agreements in the semiconductor sector.

Nvidia, the world’s leading artificial intelligence chip manufacturer, now finds itself caught between United States export control policies and China’s push for technological self reliance.

What Is the H200 Chip?

The H200 is Nvidia’s second most powerful artificial intelligence chip and is designed for advanced AI model training and data center operations.

The chip is particularly valuable for companies developing large language models, cloud computing systems, and next generation AI applications.

Before export restrictions tightened, Nvidia dominated China’s advanced AI chip market with an estimated market share of around 95 percent.

China also represented a major source of revenue for Nvidia, making access to the Chinese market strategically important for the company’s long term growth.

Which Chinese Companies Were Approved?

According to reports, the United States Commerce Department approved around ten Chinese firms to purchase H200 chips.

These reportedly include major Chinese technology companies such as:

• Alibaba
• Tencent
• ByteDance
• JD.com

Several distributors were also reportedly approved, including:

Under the licensing terms, each approved customer could reportedly purchase up to 75,000 chips.

However, despite these approvals, no actual sales or deliveries have yet been completed.

Why Have the Sales Stalled?

The delays appear to stem from concerns on both the United States and Chinese sides.

Chinese Concerns

Chinese authorities reportedly fear that reliance on Nvidia chips could undermine Beijing’s efforts to strengthen its domestic semiconductor industry.

China has invested heavily in local AI chip development, particularly through companies such as Huawei.

Beijing increasingly sees semiconductor self sufficiency as a national security priority amid escalating technological competition with Washington.

There are also concerns within China regarding supply chain security and possible vulnerabilities linked to imported American technology.

Recent Chinese regulations aimed at reducing foreign dependence in critical technology sectors have reportedly intensified scrutiny of these chip purchases.

United States Restrictions

The United States has simultaneously imposed strict export control requirements on advanced semiconductor sales to China.

Chinese buyers must reportedly prove that the chips will not be used for military purposes and that adequate security procedures are in place.

Nvidia must also satisfy inventory and compliance conditions under American export laws.

Additionally, reports suggest the Trump administration negotiated an unusual arrangement in which the United States would receive a portion of revenue generated from the chip sales. This reportedly requires the chips to pass through American territory before shipment to China.

Such conditions have further complicated the transaction process.

Jensen Huang’s Diplomatic Push

Nvidia Chief Executive Officer Jensen Huang has emerged as a key figure in efforts to preserve Nvidia’s access to the Chinese market.

Huang reportedly joined President Donald Trump during a diplomatic visit linked to talks with Chinese President Xi Jinping.

His participation underscores the economic significance of the semiconductor dispute and the importance of China to Nvidia’s business strategy.

Huang has repeatedly warned that export controls risk permanently weakening Nvidia’s position in China while encouraging Chinese firms to accelerate domestic alternatives.

The Larger Strategic Battle

The Nvidia dispute reflects a broader struggle between the United States and China over technological dominance in artificial intelligence.

Washington increasingly views advanced semiconductor technology as a strategic national security asset. American policymakers fear that unrestricted access to advanced AI chips could strengthen China’s military and technological capabilities.

China, meanwhile, sees semiconductor independence as essential to reducing vulnerability to foreign pressure and sanctions.

As a result, both sides are attempting to balance economic interests with long term strategic competition.

Implications for the Global AI Industry

The uncertainty surrounding Nvidia’s China business could have major implications for the global artificial intelligence industry.

If Chinese companies lose access to Nvidia chips, they may accelerate investment in domestic alternatives, potentially reshaping the global semiconductor market over time.

At the same time, restrictions on AI chip trade risk fragmenting the global technology ecosystem into competing American and Chinese spheres.

This could reduce international collaboration, disrupt supply chains, and intensify geopolitical competition over emerging technologies.

Future Outlook

Despite current delays, neither the United States nor China appears willing to completely sever technological and commercial ties.

However, the Nvidia case demonstrates that semiconductor trade between the two powers is becoming increasingly politicized and strategically sensitive.

The future of AI competition may ultimately depend not only on innovation, but also on which country can build the most resilient and independent technology ecosystem.

For Nvidia, maintaining its position between the world’s two largest economies will likely remain one of its greatest strategic challenges.

Conclusion

The stalled Nvidia H200 deal illustrates how deeply geopolitical tensions now shape the global technology industry.

Although the United States has approved limited chip exports to China, political distrust, national security concerns, and strategic competition continue to obstruct implementation.

As artificial intelligence becomes central to economic and military power, semiconductor trade is no longer simply a commercial issue. It has become a defining arena in the broader contest between Washington and Beijing for technological leadership in the twenty first century.

With information from Reuters,