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Italy’s defence minister warns of severe economic fallout if Bab al-Mandeb becomes impassable, bypassing EU delays.

Italy will deploy warships to ensure safe passage for its commercial vessels through the Bab al-Mandeb strait, Defence Minister Guido Crosetto said, adding that Rome would not wait for a joint decision from the European Union.

“We have the capabilities to protect the passage,” Crosetto said, warning that if the waterway became impassable, the economic consequences would be severe.

The Italian defence minister said that Rome “must not allow bureaucratic delays in decision-making to exacerbate an already complex situation”.

Bab al-Mandeb links the Red Sea to the Gulf of Aden, forming one of the world’s busiest shipping corridors between Europe and Asia and a critical route for oil, gas and container traffic heading to and from the Suez Canal.

Roughly 12 to 15 percent of global trade has historically passed through the narrow waterway, which separates Yemen from Djibouti and Eritrea on the African side and is only about 30km (19 miles) wide at its narrowest point.

The strait’s importance has grown sharply since Iran effectively seized control of the Strait of Hormuz earlier this year amid its war with the United States and Israel, choking off the world’s most important oil chokepoint and pushing much of the Gulf’s crude exports towards alternative routes.

Saudi Arabia, in particular, has increasingly relied on pipelines and Red Sea shipping to bypass Hormuz altogether, making the Bab al-Mandeb strait one of the last major arteries still open to Gulf oil reaching global markets.

Control of the strait has been contested for years, as Yemen’s government, Houthi rebels and, at times, forces in the region have held stretches of its coastline at different points since the war in Yemen began in 2015.

The significance of the strait has been hit dramatically in the past few weeks, when the Iran-backed Houthi movement launched a rapid offensive that brought the entirety of Yemen’s western Red Sea coast under its control, including several strategically located islands.

The advance has given the Houthis effectively unrestricted access to the waterway, a development seen as a major setback for international shipping, given the group’s history of attacking vessels it associates with the US or its allies in the region.

The US and the European Union have already carried out military operations aimed at better protecting merchant ships from Houthi attacks in the area, though those efforts have struggled to fully secure the route as fighting in Yemen has escalated.

UNITED NATIONS, United States: UN Secretary-General Antonio Guterres on Wednesday called for coordinated international action to address AI risks as fears rise about the dangers of the fast-evolving technology.

“National action is essential. But global coordination is also indispensable,” he told reporters. “AI does not stop at borders and neither do its risks.”

“AI has enormous potential — to accelerate sustainable development, enhance learning, strengthen health systems, boost climate resilience, and so much more,” Guterres said.

“But a growing number of those building it are sounding the alarm — warning that development is racing ahead of our understanding of the risks.”

“The world cannot afford a race to the bottom on AI safety,” he warned.

Concerns about AI safety have escalated in recent weeks, with workers at major AI developers resigning over concerns about the dangers posed by the technology.

President Donald Trump has dismissed warnings against AI risks as a “hoax” and pushed back against calls for tighter oversight.

Saudi Arabia has intensified air strikes against Houthi positions in Yemen as the Iran backed group expands its territorial gains along the Red Sea coast, opening a new front in the wider Middle East war and adding pressure to already disrupted global energy supplies.

The Houthis have swept through several Yemeni towns and seized islands near the Bab el Mandeb Strait, a strategically important maritime route connecting the Red Sea with the Gulf of Aden. The group has also released footage showing its fighters capturing armoured vehicles from Saudi backed forces.

Houthi military spokesman Yahya Saree claimed that the group had shot down a Saudi F 15 fighter jet and said Saudi Arabia had conducted as many as 450 air strikes in Yemen during the week. Saudi authorities have not confirmed the aircraft claim, while officials supporting the internationally recognised Yemeni government have acknowledged that Saudi and allied forces are carrying out strikes against Houthi positions.

Saudi Arabia faces growing security pressure

The escalation has brought the conflict closer to Saudi territory. The Houthis have repeatedly launched attacks toward Saudi Arabia over the past week, prompting alarms in cities across the kingdom’s south and west.

Saudi Arabia said its air defenses intercepted a Houthi drone south of Mecca before it entered restricted airspace over the holy city. Riyadh described the incident as a serious escalation because of the threat to religious sites. The Houthis denied targeting Mecca and accused Saudi Arabia of using the incident for propaganda.

The United States has also tightened its travel warning for Saudi Arabia, barring government employees from travelling within 20 miles of the Yemen border.

The latest escalation marks a sharp deterioration after several years in which the Saudi led conflict in Yemen had largely quietened under a ceasefire. The Houthis declared a naval blockade against Saudi Arabia in July and resumed attacks on areas in the kingdom before making rapid gains against forces aligned with the Saudi backed Yemeni government.

Energy markets face another shock

The renewed fighting is particularly significant because global energy markets are already under pressure from disruptions caused by the wider war involving Iran.

An attack blamed on Iran aligned fighters in Iraq last week knocked out Saudi Arabia’s East West Pipeline, an important route that allows the kingdom to move oil without relying entirely on the Strait of Hormuz.

Traders estimate that a prolonged closure of the pipeline could affect as much as 4% of global oil supply. Saudi Arabia has not given a timetable for restoring operations, although U.S. Energy Secretary Chris Wright said oil should begin flowing through the pipeline within days.

Brent crude was trading around $108 a barrel on Wednesday, close to its highest level since May. The average U.S. retail diesel price also reached a record above $6.30 a gallon.

The simultaneous disruption around the Strait of Hormuz and Saudi Arabia’s alternative export infrastructure increases the vulnerability of global energy markets to further regional escalation.

Washington faces another difficult choice

The developments also create a new challenge for the United States.

Saudi Crown Prince Mohammed bin Salman spoke with President Donald Trump last week seeking additional military support. So far, U.S. assistance has been limited to intelligence support.

The United States previously conducted a two month bombing campaign against the Houthis in 2025 before Trump announced a ceasefire with the group.

Washington now faces competing pressures. Greater support for Saudi Arabia could help contain the Houthi advance and protect regional energy infrastructure, but deeper military involvement could also expand the U.S. role in another theatre of the Middle East war.

What’s next

The immediate concern is whether the Houthi advance can be contained before the fighting causes further disruption to Saudi energy infrastructure and shipping routes.

For Saudi Arabia, the challenge is to push back against the Houthis while preventing the conflict from developing into a broader regional confrontation.

For global markets, the key issue will be whether disruptions to Saudi oil infrastructure remain temporary. Continued attacks on energy facilities or shipping routes could place additional pressure on already strained supplies.

The developments in Yemen therefore carry consequences well beyond the country’s existing conflict. The combination of Houthi territorial gains, pressure on Saudi Arabia and disruption to major energy routes has created another potential source of instability for the global oil market.

With information from Reuters.

Published on
15/09/2026 – 7:51 GMT+2

Government bond markets remain under pressure as rising energy prices revive inflation concerns and increase expectations that major central banks will keep interest rates higher for longer.

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The benchmark 10-year US Treasury yield briefly touched 5.011% on Monday, according to Dow Jones Market Data, before falling back below 5%. The level was the highest since October 2023.

The yield crossed the psychologically important 5% threshold as higher government borrowing, resilient economic growth and heavy corporate debt issuance linked to artificial intelligence investment compounded pressure on US bonds. Yields move inversely to bond prices.

Rising Treasury yields can feed through to mortgages, corporate loans and other forms of credit, potentially slowing economic growth. They can also make bonds more attractive relative to highly valued equities.

The latest rise followed the US Treasury’s previously announced expansion of its bond-buyback programme. Last week, it offered to purchase up to $6 billion of debt maturing in 10 to 20 years – three times the previous operation’s size.

The yield on the 30-year US Treasury bond, meanwhile, remained close to its highest level since 2007.

The sell-off has also spread across Europe. France’s 10-year government bond yield rose to 4.50% on Monday, while the equivalent Italian yield reached around 4.40%.

Germany’s benchmark 10-year Bund yield climbed as high as 3.538%, according to Dow Jones Market Data, its highest level in 15 years.

Energy prices are a major source of pressure. Brent crude rose to around $107 a barrel on Tuesday morning, while US West Texas Intermediate traded close to $103, as attacks on Saudi energy infrastructure and shipping in the Gulf intensified concerns about supplies through the Strait of Hormuz.

The European Central Bank raised its deposit rate by 25 basis points to 2.5% last week and warned that inflation could remain above its target for an extended period. Markets are pricing in at least one further ECB increase this year.

Attention now turns to three major central-bank decisions. The US Federal Reserve announces its decision on Wednesday, followed by the Bank of England on Thursday and the Bank of Japan on Friday.

A Reuters poll found that 85% of economists expected the Fed to raise rates by 25 basis points, while money markets placed the probability of an increase at around 93%.

The BoE is widely expected to leave rates unchanged. Economists surveyed by Reuters unanimously forecast no change, although some analysts have warned that a surprise increase cannot be ruled out. The BoJ is widely expected to raise borrowing costs.

SINGAPORE: Thailand accused Cambodia on Tuesday of “playing the role of a victim” in a dispute over maritime resources, as the Southeast Asian neighbours brought their long-standing feud before international mediators.

The hearing at the Singapore outpost of the Permanent Court of Arbitration (PCA) comes after the countries fought two rounds of deadly border clashes last year.

In May this year, Thailand unilaterally pulled out of a framework agreement with Cambodia that aimed to resolve overlapping maritime border claims, but denied any link to their land dispute.

Cambodia subsequently initiated a UN-backed conciliation process at the PCA, saying it hoped to return to constructive negotiations.

Opening Bangkok’s case before a five-member panel of international legal experts, Foreign Minister Sihasak Phuangketkeow said Cambodia sought to “vilify Thailand through false narratives, distortion of facts, and unfounded accusations… including at international forums”.

“It does this by playing the role of a victim with a sense of self-righteousness aimed at claiming the moral high ground,” he said.

Last year’s clashes left dozens of people dead and displaced more than a million before a truce was agreed.

Thailand has said it withdrew from the framework agreement, called “MoU 44”, because “no progress had been made” in implementing it. Prime Minister Anutin Charnvirakul denied the move was linked to the fighting.

The 2001 memorandum of understanding covers a resource-rich maritime territory of around 27,000 square kilometres (10,500 square miles) to which both Cambodia and Thailand lay claim.

Cambodia said last week that it had resorted to conciliation “after Thailand unilaterally terminated the agreed bilateral framework” through which the two nations had “negotiated their overlapping maritime claims for more than two decades”.

Prime Minister Hun Manet said in June that the move was also to “protect Cambodia’s sovereignty and maritime rights in accordance with international law”.

Foreign Minister Prak Sokhonn told the PCA panel on Tuesday that Phnom Penh saw the process “as a means to rebuild trust, not as a form of escalation”.

Cambodia’s goal was to agree with Thailand on a “single, all-purpose maritime boundary”, or alternatively agree to jointly develop and equitably share resources until a boundary is drawn, he said.

“Cambodia sincerely hopes that Thailand will engage constructively in this process.”

Sihasak said Thailand was also seeking maritime delimitation and to rebuild trust.

Set up in 1899, the PCA is the world’s oldest intergovernmental dispute-resolution body and resolves disputes between countries and private parties by referring to contracts, special agreements and various treaties, such as the UN Convention on the Law of the Sea.

The PCA office in Singapore is the Hague-based court’s first in Asia.

The commission’s recommendations are not binding and will take about a year to be decided.

WASHINGTON: The IMF said the global economy had weathered the energy shock caused by the war in the Middle East better than feared and global economic output was still expected to expand by about 3 percent in 2026, but it cautioned that risks remained high.

Julie Kozack, spokesperson for the International Monetary Fund, said oil and gas prices remained elevated and the energy shock from the war was not over.

Global debt pressures were also mounting and the disinflation process over the 2022 cost-of-living crisis had stalled.

Global inflationary expectations have risen but remain well-anchored ‌over the longer ‌run, Kozack told a regular IMF briefing.

“So far, despite six months of ‌war in the Middle East, the global economy has been resilient,” Kozack said, adding that the use of oil and gas reserves had allowed some countries to cope with energy shocks caused by the war, while others had shifted to new energy sources or acted to curb demand.

“We remain on track for world growth of around 3 percent but uncertainty, as we’ve been saying for quite some time, continues to remain high,” she said.

The IMF in July forecast 2026 global growth at a sluggish 3 percent, compared with an average of 3.5 percent seen in 2024 and 2025, and its April forecast of 3.1 percent.

At the time, it said that forecast assumed ‌the war would wind down in mid-July, but Iran and ‌the US have both escalated their attacks and the war has widened with increased military activity in Yemen.

The ‌global lender will release an updated forecast during the annual meetings of the IMF and the ‌World Bank in Bangkok from Oct. 12 to 18.

Pulled in opposite directions

Kozack said the global economy was being pulled in opposite directions by the negative energy supply shock that was driving prices of energy, fertilizers, food and other commodities sharply higher, while the AI-led technology cycle was providing a positive demand shock.

Risks remain high, with many countries needing to ‌restock their oil and gas reserves, and energy demands set to rise as winter approaches in the Northern Hemisphere, she said.

Pressures are also mounting on global public debt, which is already at nearly 100 percent of gross domestic product — the highest level since World War Two — and is set to rise further, Kozack said. Many advanced economies have particularly high public-debt-to-GDP ratios.

Liquidity problems are also building in developing countries, including in Africa, partly due to a reduction in bilateral assistance, Kozack said.

The IMF is urging central bankers to stick to their price stability mandates, while encouraging fiscal policymakers to develop medium-term consolidation plans, she said.

“We’re not in a situation where fiscal consolidation needs to take place overnight, but having a clear, laid-out plan and strategy for how deficits and debt are going to come down is very important for fiscal authorities,” Kozack said.

The IMF was also urging authorities to focus on lifting growth prospects through structural reforms and removing “self-inflicted” barriers to growth, she said.

Kozack said the IMF would look closely at the impact of new US sanctions against Iran, including secondary sanctions aimed at firms in third countries that support Tehran.

A fuller report was expected in the upcoming global outlook, she said.

MANILA: Saudi Arabia’s new national carrier Riyadh Air launched its first flight to Manila on Wednesday, marking the latest addition to its growing network of global destinations.

Riyadh Air operated a 290-seat Boeing 787-9 Dreamliner aircraft for the route between the Saudi and Philippine capital, with its arrival at the Ninoy Aquino International Airport around 3:55 p.m. marking the first operation of the service.

“The new … service adds another option for passengers traveling between the Philippines and Saudi Arabia, and another international carrier to NAIA’s growing network. Welcome to Manila, Riyadh Air!” NAIA said in a statement announcing the Riyadh Air service.

There are more than 910,000 Filipinos living and working in Saudi Arabia, as the Kingdom hosts the biggest number of overseas Filipino workers and was their top destination in 2024, according to Philippine government data.

In that year alone, almost 22 percent of Filipinos, or more than 480,000, who sought work abroad chose the Kingdom, driven in part by the Saudi Vision 2030 economic diversification program.

Saudi tourists are also one of the Philippines’ fastest-growing and highest-value markets, according to the Philippine Department of Tourism, with tourism receipts reaching over $37 million in 2024, a 46-percent rise from the previous year.

The Saudi carrier has swiftly expanded its air links with Asia with the launch of multiple flights across the region in recent months, including to Malaysia, Pakistan, India and Thailand.

Riyadh Air’s Manila route followed the airline’s launch of its Bangkok service last week, with Thailand eyeing more high-value tourism from the Middle East.

The Tourism Authority of Thailand is expecting about 600,000 travelers from the Middle East this year, after recording about 210,000 arrivals in the first half of 2026.

It shows similar trends across Asia, where popular holiday destinations are increasingly targeting tourists from the Middle East as part of their tourism growth strategy.

Reading scores among 15-year-olds in the United States have fallen to the lowest level in about 25 years, according to an international education assessment.

On Tuesday, the Organisation for Economic Co-operation and Development (OECD) released findings from the 2025 Programme for International Student Assessment (PISA), a global metric for educational achievement.

The results showed that US reading scores fell 14 points from 2022, the last time PISA results were released.

The decline was part of a broader international trend, with an OECD average from 23 countries also dropping 16 points.

But the US stood out for the size of its performance gap. Some 25.7 percent of US students were ranked as low performers in reading, while 13.3 percent were flagged as top performers.

“Looking across all 90 participating countries, there was not a single country with significantly wider inequality in reading scores than the US,” Michael Kieffer, a professor of literacy education at New York University, told Al Jazeera. “What is clear is that we are under-serving many students.”

The PISA results come as the administration of US President Donald Trump seeks to reshape the federal government’s role in education.

In March 2025, Trump issued an executive order calling on Education Secretary Linda McMahon to begin the process of dismantling the Department of Education, a federal agency that tracks student achievement, distributes federal education funds and enforces civil rights in schools.

The Education Department, however, does not establish school curriculums or academic standards. That responsibility has traditionally fallen to state and local authorities.

Still, Trump pointed to slipping test scores as a reason to shutter the department. He has also denounced the department for its “entrenched bureaucracy” and called for its responsibilities to be redistributed to the states.

In response to a request for comment on Tuesday, McMahon sent a statement to Al Jazeera echoing Trump’s push.

“The United States of America is a nation built to lead the world, yet our one-size-fits-all federal education bureaucracy has shortchanged our children and stifled our future,” McMahon wrote.

The White House has argued that federal education spending is excessive and has failed to translate into higher standardised test scores.

Since the Education Department was founded in 1979, it has spent more than $3 trillion, according to the White House.

“This moment is a stress test for our nation’s future,” McMahon said in her statement to Al Jazeera. “To pass it, we must enact a hard reset that stops protecting a failed status quo and instead builds a system that empowers state leaders and embraces innovative learning options through school choice.”

“School choice” has been a rallying cry for many US conservatives. The term refers to the practice of diverting taxpayer money away from public education to help parents finance alternative choices for their child’s schooling, like charter schools, homeschooling or private institutions.

The practice is controversial. Critics have accused the “school choice” system of weakening public education in favour of less regulated school systems that receive money with little oversight.

But since returning to office in 2025, Trump has embraced “school choice” as a form of “educational freedom”.

Last year, the Education Department announced $500m for its Charter School Program, touting the funds as the “largest investment” the initiative has ever received.

The money was earmarked to allow states to expand their charter school systems and fund new charter-school developers.

In July 2025, the One Big Beautiful Bill Act – Trump’s signature piece of legislation – also created the first federal tax credit for donations to organisations that provide scholarships for primary and secondary school students, including for private-school tuition and tutoring.

Last month, Trump hosted a “school choice”-themed event at the White House to kick off the start of the new school year.

But critics warn that greater investment in education is needed across the board to reverse diminishing test scores.

“PISA 2025 shows that reversing declines in student performance is urgent,” OECD Secretary-General Mathias Cormann said in a statement.

“The most successful education systems focus on fewer areas in greater depth, invest in teachers, engage parents and provide targeted support for the students and schools that need it the most.”

RIYADH: Saudi-Russian cooperation has proven vital in supporting the stability of global energy markets and achieving a balance that serves the interests of both producers and consumers, the Kingdom’s foreign minister said on Tuesday.

During a visit to Moscow, Prince Faisal bin Farhan said the partnership between Riyadh and Moscow contributes to sustainable global economic growth and fosters cooperation across the economic, trade, and investment sectors.

Prince Faisal met with his Russian counterpart Sergey Lavrov who said that the minister’s visit offers a valuable opportunity to discuss Russian-Saudi relations which are witnessing year-on-year development across the trade, economic, investment, cultural, and humanitarian spheres.

Lavrov also affirmed his country’s sincere desire to contribute to efforts aimed at de-escalating the situation in the region and addressing regional issues.

The two ministers emphasized the importance of supporting the diplomatic path to resolve current regional and international challenges — including the Palestinian cause and the situation in Yemen.

They underscored the necessity of ensuring the security and freedom of navigation in international waterways, particularly the Strait of Hormuz and the Bab El-Mandab Strait.

Both sides affirmed their aspiration to advance Saudi-Russian relations which were established a hundred years ago.

The Eastern Economic Forum (EEF) has been described as a successful solid platform since its creation. It increasingly attracts guests from widely different countries, especially leaders of China, India, Malaysia, Mongolia, and Myanmar. The leaders of Vietnam, Kazakhstan, Laos, and Thailand have visited it in various capacities. The business segment of the forum has long gone far beyond the geographical boundaries of Eurasia. Its frequent unprecedented large number of guests includes businesspeople from South America, Africa, and the Middle East. That, however, it remains open for entrepreneurial contacts with everyone whose natural interests are primarily in the trade, economic, and social spheres. This cross-platform cooperation between the structures is developing, growing deeper and creating a new agenda. The most essential feature is that the platform is guided by the principles of equality, mutual benefit, and honest dialogue, which are entirely different from those of Western-oriented structures. 

The EEF, which opened on 1st-4th September, in Russia’s Far Eastern city of Vladivostok, has become a solid platform for open and constructive dialogue among business leaders, government officials, and members of the expert community. It has also become a unique venue for discussing the strategic development of the Russian Far East and the country as a whole, while fostering and strengthening potential partnerships with counterparts, particularly from the Asia-Pacific region, in food production, infrastructure, logistics, industry, energy, and many other sectors of the economy. While recognizing the huge untapped economic potential of the region, it is also understandable that the development of the Far East largely depends on human capital, entrepreneurial efforts, and the ability of regions to create the necessary conditions for realizing the practical expectations.

On 2nd September, as part of the business program, the “Towards a Common Future: Inclusion as a Development Resource for the Far East” discussion was held with a strong focus on how to create an equal opportunity environment, develop human capital, and engage diverse groups in economic and social life. The following day, the majority of the participants in the “Inspiring Investments: A Development Strategy for Growth and Scaling” session touched on funding mechanisms for creative projects, opportunities to enter foreign markets, and collaboration between businesses, investors, development institutions, and government agencies. The key point focused on the development of the creative economy and international cooperation with Asia-Pacific countries, industry investments, the export of intellectual property and creative products, the media’s role in the development and positioning of regions in the Far East, new content formats, and training personnel for the economy of the future.

As part of the discussions at the forum, Russia and the United States continued their business dialogue, headed by Robert Agee, president and CEO of the American Chamber of Commerce in Russia (AmCham Russia), and with the participation of US representatives. It was spearheaded by the Roscongress Foundation in Russia.  Anton Kobyakov, Adviser to the President of the Russian Federation, noted, however, that there is a strong appetite on both sides for direct professional engagement. What matters most is to sustain the momentum and possibly broaden the agenda to include bilateral entrepreneurial partnership. 

“There is the need to facilitate more networking to identify specific strategic areas for cooperation,” said Robert Agee, president and CEO of the American Chamber of Commerce in Russia, and unreservedly agreed to continue their work on developing business ties and prepare for the participation of American representatives in the Russian Federation.

With many Asian and Pacific participants, explored opportunities for developing small and medium-sized enterprises. This is becoming increasingly important amid structural changes in the economy, as businesses look for new avenues for growth. The EEF made it possible not only to exchange experience but also to find concrete solutions that will help entrepreneurs adapt to changing conditions and unlock new opportunities for growth.

Developing trade, strengthening of interstate ties, and the creation of a common space for interaction among Asia-Pacific countries have assumed a new trend with Russia. The argument was logically based on Russia’s historical experience of cooperation with East Asian countries. It was further underlined that Russia and the Asia-Pacific attract politicians and entrepreneurs from around the world. In these current geopolitical circumstances, Russia needs to seek out new opportunities for development, particularly from the Asia-Pacific region, and with reference to the emerging new multipolar world. At the heart of the forum program was the search for new sources of growth and resilience for SMEs amid structural changes in the economy, from raising productivity and adopting new technologies to managing risks and adapting business models. One section of the program focused on the role of automation and artificial intelligence, changes in business processes, employees’ readiness to work with new technologies, and ways of improving productivity. 

In addition to the above, a special session was devoted to analysis where experts outlined the key economic trends across the Asia-Pacific region. As monitored, this session was set out in the analytical review entitled “Asia Trends 2026: The AI Boom, Industrial Relocation, and Geopolitical Fragmentation,” prepared ahead of the opening of the Eastern Economic Forum on 1st September. The review clearly noted, among other things, that Asia accounts for around 60% of global GDP growth and is becoming the world’s new center of trade, industry, technology, finance, and military power. Within the region, however, economic growth is highly uneven, while technology and capital are concentrated in a small group of states, making consolidation difficult. The ASEAN countries, meanwhile, face competition from Chinese manufacturers while also coming under growing geopolitical pressure from Washington. More broadly, the Asia-Pacific region is more exposed than any other to the effects of the energy crisis and to climate risks such as a super El Niño. 

According to the International Monetary Fund, Asian GDP grew by 5% in 2025, significantly ahead of global growth of 3.5%. Within the region, however, countries face a range of specific challenges, from high labor costs and insufficient industrial capacity to balance-of-payments difficulties and currency instability. These factors are driving increasingly divergent development paths among Asian economies. The region’s advanced economies, such as Japan and South Korea, posted lower growth rates, at 1.2% and 1%, respectively, in 2025. Asia’s emerging economies grew by 5.5% overall over the same period, with performance ranging from a 2% contraction in GDP in Myanmar to an 8% surge in Vietnam. 

Countries with the strongest growth prospects are attracting investment, leaving others with fewer opportunities to draw in capital. According to the United Nations Conference on Trade and Development, developing countries in Asia attracted US$644 billion in foreign direct investment in 2025. That is around 40% of the global total and more than 70% of all investment in developing countries. Capital flows are unevenly distributed: eight of the ten largest recipients of foreign direct investment among developing countries are in Asia, and together they account for around 60% of all inflows to developing economies and more than 80% of inflows to the region. 

Capital is becoming increasingly concentrated not only in a small number of countries but also in a narrow range of sectors, particularly artificial intelligence, clean energy, semiconductors, and critical minerals. In the longer term, this could deepen inequality and worsen the position of countries without a strong presence in these fields. Asia is one of the principal beneficiaries of the global AI boom. The investment cycle associated with its development has driven up demand for semiconductors, memory, servers, network equipment, and related electronics. The region occupies a central position in the global supply chain for these products. Technology exports will remain a powerful engine of economic growth in Asia, although the benefits will be distributed unevenly depending on each country’s position in the value chain.

South-East Asia’s role as an industrial center is growing as production capacity relocates there from China, which is no longer a low-cost manufacturing base. Chinese companies have begun redirecting production to Vietnam and Indonesia in particular in order to mitigate the impact of US tariffs. At the same time, China has increased its exports of industrial components and capital goods, supplying the equipment and parts needed by manufacturing centers in other countries. Exports of intermediate goods, including memory chips, other semiconductors, and industrial components, rose by 9% in 2025. Part of this represented an indirect offset to reduced shipments to the United States, as components, particularly in electronics, were used by manufacturers in other countries to produce goods that were subsequently exported to the US. A fall of roughly US$15 billion in smartphone exports, for example, was matched by a comparable increase in shipments of components, notably to India. 

In many other cases, however, the growth in exports of components and equipment was not linked to replacing sales China had lost in the US. Instead, it supported the expansion of production in third markets, especially developing ones, reinforcing China’s role as a supplier of production inputs rather than an exporter of finished goods. The result is an integrated supply chain taking shape across the region, encompassing research and development and the manufacture of high-technology components in China, assembly and packaging in an ASEAN country such as Malaysia or Vietnam, and the subsequent shipment of products to markets within the region and beyond. 

Amid the fragmentation of the global economy and trade, the development of the Eurasian space calls for resilient regional supply chains and logistical connectivity between states. Russia’s Far Eastern Federal District can play a strategically important role here. Thanks to its location, the district can serve as a resource and logistics gateway within the transport corridors linking European Russia with Asia. For a long time, infrastructure constraints held back the expansion of ties between Russia and Asian states, but the situation has begun to change with the development of the Eastern Operating Domain, which comprises the Baikal–Amur Mainline and the Trans-Siberian Railway. 

A program to modernize the Eastern Operating Domain has been under way since 2013, aimed at eliminating bottlenecks on the railways of Siberia and the Far East. Over that period, its carrying capacity has increased by 84%, reaching 180 million tonnes in 2025. The modernization is expected to raise that figure to 210 million tonnes by the end of 2030 and 270 million tonnes by the end of 2032. The development of the rail network and port infrastructure will largely determine the prospects for Eurasia and for the Asia-Pacific region in particular, as the world’s economic, financial, and trade center shifts towards the region. 

Emerging trends are reshaping the world; South-South economic partnership is seemingly becoming both the political and economic architecture. Logically, developing collaboration with Asian partners, anchoring discussions on technological leadership, and making breakthroughs in scientific fields and adopting innovative technologies are increasingly reshaping the world. Today, the role of academic institutions is to build a solid scientific and technological foundation that addresses applied industrial challenges while enhancing business efficiency, eco-friendliness, and sustainability. It is only through this synergy between science and the real economic sectors that can bring true multifaceted sovereignty. In conclusion, Asia-Pacific and Russia have to create a new model of economic and business and trade relations in the Global South.

As monitored from official reports, Russia is creating practically a new model of development of the Far East with maximally comfortable conditions for enterprises, as well as legal innovations for the investment climate in the region. Therefore, potential Asia-Pacific investors have to work on new ideas and new strategies for developing trade, agro-processing, industry, and other economic sectors in the Far Eastern region. The Eastern Economic Forum was held from September 1 to 4 on the campus of the Far Eastern Federal University. This year’s theme: “The Far East: Development for the Benefit of People.” It was the 11th EEF and organized by the Roscongress Foundation.

Bishkek, Kyrgyzstan –  It was a round table of some of the most influential men in the world. Representing Russia, China, India, Iran, Pakistan – and when they extended to the Shanghai Cooperation Organisation Plus – Turkiye, as well as the United Nations Secretary-General, Antonio Guterres. Gathered here in Kyrgyzstan were countries at the centre of some of the world’s biggest geopolitical tensions.

What brings them together is not necessarily agreement on everything. It is the space to pursue their interests outside a Western-led framework. Moscow sees that space as evidence of a changing world.

“Over the 25 years since its inception, the Shanghai Cooperation Organisation has evolved into one of the independent and influential centres of the emerging multipolar world,” Russian President Vladimir Putin told the summit.

The organisation, he said, had grown from six founding members in 2001 into what he described as the world’s largest regional association.

Kyrgyzstan is a small, mountainous, landlocked country with Russia to the north and China next door. The calculation is more immediate: how do you balance between giants?

As Europe and the United States are increasingly looking towards Central Asia, Kyrgyzstan needs to balance relations with all of them.

Shairbek Dzhuraev, president of the Crossroads Central Asia think tank, said the timing of the summit is particularly important.

“The members in the room are precisely heavyweights that are directly involved in key geopolitical conflicts of the day,” he said.

That balancing act is not new. Since independence in 1991, Central Asian states have largely operated through what is known as a multi-vector foreign policy.

Bishkek – like other Central Asian nations – operates by keeping Russia close and building ties with China, while keeping open doors to Europe and maintaining healthy relations with Washington.

For Kyrgyzstan, it is less about choosing sides than keeping options open, underscored by its geography. Being landlocked means dependence on transport corridors and being mountainous makes infrastructure more difficult. Dependence on imported energy and external markets leaves the economy exposed to shocks beyond its borders.

“The biggest weakness of Kyrgyzstan, geopolitically and geographically, is the dependence in terms of transport routes, in terms of energy, in terms of economic relationships”, Dzhuraev puts it bluntly.

So diversification becomes more than an economic ambition. Kyrgyzstan, being one of the smaller members, cannot dictate the SCO’s agenda. But it helped to shape the language.

For decades, Central Asia was viewed largely through the prism of the powers surrounding it. But the wars in the region and beyond have changed that – Russia is under sanctions, so is Iran, China is looking west, Europe is looking east. Suddenly the geography has acquired new value with highways, railways, pipelines, trade corridors, power networks and the periphery is becoming a strategically important passageway. Dzhuraev said: “Kyrgyzstan wanted the summit declaration to recognise that transformation, Central Asia’s movement into the centre stage of international politics”.

The Shanghai Cooperation Organisation is increasingly seen as a counterweight to US influence — a grouping through which China and Russia can advance a different vision of the global order. But the SCO is too diverse for a simple East-versus-West confrontation. That description comes with a qualification that the SCO is not a unified anti-American bloc.

Its members have competing interests, different relationships with Washington and, in some cases, deep disagreements with one another. The question is not whether the SCO rejects the West, it is whether it can resist being defined entirely in opposition to it.

Iran brings that to the centre stage – where geopolitical theory meets a much more immediate crisis. Tehran and Washington have returned to confrontation after more than a month of relative calm. Iranian President Masoud Pezeshkian used the SCO summit to put the diplomatic question directly on the table.

“I state explicitly that if the United States returns to its commitments under the aforementioned memorandum of understanding, the Islamic Republic of Iran will immediately take reciprocal action,” he said.

The Islamabad MoU signed in June collapsed, with Tehran and Washington blaming each other for violating its terms. Iran’s Foreign Minister, Abbas Araghchi, also called on Washington to return to what its president signed under the MoU. “In that case, everything can be put back on the right track,” he said.

For the SCO, however, Iran is not simply a diplomatic issue – it is an economic one. Washington has renewed sanctions on Tehran and expanded the threat of penalties for those doing business with Iran. For Central Asia, that matters, particularly for countries whose economies are deeply intertwined with Russia and increasingly connected to Chinese trade networks. Dzhuraev is sceptical whether countries such as Kyrgyzstan comply fully with sanctions, “The declaration will most likely not match the reality,” he said. “China and other countries have already rejected what they describe as unilateral sanctions.”

The reality is that sanctions can hurt, as they have hurt Iran and Russia. Not as intended for economic collapse, but they brought pain for the masses and put a spanner in their economies. But enforcement across a region built around cross-border trade is another matter. For Central Asian economies, complete compliance is difficult because the economic relationships are too dense, which is quite different from Western compliance. Both with Iran and Russia, transport and trade links have been growing steadily, so countries are unlikely to simply switch them off overnight.

That makes the SCO summit an important political moment.

Not necessarily because its members can defeat the sanctions regime, but because they can collectively signal where they stand on unilateral pressure.

When you speak to delegates from the global south, there is also a broader message: that the SCO is becoming a forum where countries that do not necessarily agree on everything can nevertheless agree on one principle: they want room to manoeuvre.

Putin calls that the emergence of a multipolar world,  Pezeshkian is using the forum to keep diplomacy with Washington alive on Iran’s terms,  China is defending its economic relationships, India is pursuing its own strategic interests, and Kyrgyzstan is trying to make sure none of these relationships closes the door to another.

But there is a second question confronting Kyrgyzstan — and it is not sitting around the summit table. How much of its rise belongs to Kyrgyzstan itself?

As transit trade has risen, the economy has been growing rapidly, wages have increased, construction has accelerated and exports have increased.

There is visible momentum in Bishkek, with new roads and buildings appearing to fill the empty spaces. Extraordinary circumstances have generated a lot, such as the war in Ukraine, which has altered regional trade and expanded Chinese investment. When trade routes shifted, money and demand moved across borders. The government is proud that much of the recent development has been undertaken without the external borrowing that characterised earlier periods. But buildings alone do not create a productive economy. External momentum can be a dangerous foundation for long-term growth, as Dzhuraev points out. “Productivity is growing. Exports are rising. More goods are being produced domestically. But much of the momentum remains connected to external factors — particularly the Russia-Ukraine war and Chinese investment. One of the biggest drivers of poverty reduction has been rising salaries.”

The harder question is what comes next? Where are the productive sectors that will sustain those incomes? Agriculture could be an obvious answer as Kyrgyzstan is an agricultural country. But glaciers are melting and climate change is having an impact. Plus, its long-term capacity to generate higher-value growth remains uncertain. That may ultimately be the more important story behind this summit. Not the speeches, the flags, nor the declaration.

Kyrgyzstan wants to convert geography into leverage and its vulnerabilities into options. But the wider questions remain, whether Central Asia can move from being the space between Russia, China, Iran and Europe to becoming a centre of its own? As well as whether today’s economic growth can survive when the external forces driving it inevitably change?

Kyrgyzstan finds itself at the centre of a changing region that brings opportunity but also pressure. Between the giants, keeping every door open may be the most important strategy of all.

Coral reefs make up just 1 percent of ocean coverage, but host a quarter of all life in the sea.

Coral reefs are experiencing bleaching events so frequently that they no longer have time to recover before the next one strikes, scientists have warned.

Global coral cover is now well below ⁠normal levels and at risk of irreversible decline, the Global Coral Reef Monitoring Network (GCRMN) said in a report released on Monday.

“If we give them enough time, they ‌have the capacity to recover,” lead author Manuel Gonzalez Rivero said. “But we haven’t seen that amount of time being allowed. In fact, the frequency of those bleaching events has pretty much doubled.”

Bleaching occurs when corals expel the colourful algae living in their tissues. Without this algae, they become vulnerable to starvation and disease. Bleached coral are not dead, but they need time in cooler water to recover.

“We had 40 years of coral cover around the world that had remained relatively unchanged until 2010,” said Gonzalez Rivero, a scientist at the Australian Institute of Marine Science. “Since 2010, there has ⁠been a very steep change.”

The latest bleaching in 2023 was the most extensive on record, impacting 77 percent of the world’s coral reef areas.

Rivero warned that another such event is “very likely” this year given elevated temperatures globally.

Coral reefs are critical barometers for global ocean health, supporting more than 25 percent of all marine life despite covering less than 1 percent of the ocean floor.

The GCRMN’s warning came as organisers of the annual Pacific Islands Forum announced that at least five leaders of the 18-nation group will skip the group’s summit.

The forum has been touted for decades as a symbol of regional unity, and is used to discuss pressing matters facing Pacific states, including climate change and ocean health.

Canadian Prime Minister Mark Carney supports a new global defense bank called the Defence, Security and Resilience Bank (DSRB), which aims to help allied countries rearm. The bank is looking to raise around €100 billion ($116 billion) to provide low-cost loans to governments and defense contractors for military projects. It will also guarantee loans for smaller, riskier firms. So far, Canada, along with Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey, and Ukraine, has expressed support for the initiative.

As of August, the DSRB had secured about €5 billion in commitments but aims for €20 billion in paid-in capital and an additional €80 billion available when necessary. However, major economies like Germany and Britain have not yet committed, which raises concerns about the DSRB’s ability to achieve the triple-A credit rating necessary for the lowest funding costs. Experts suggest that the participation of larger governments is essential to impress ratings agencies. Some potential members are hesitant about whether the DSRB can offer better financing terms than national governments, given their own budget limitations and existing commitments in similar initiatives.

Canada is actively engaging other countries ahead of the charter signing planned for autumn. DSRB founder Rob Murray emphasized the need for rearmament to address increasing security threats. He noted that many European nations are raising defense spending but are not close to meeting NATO’s targets. Carney has called for cooperation among middle powers to respond to what he sees as a changing world order.

The DSRB aims to provide funding for defense investments separate from current national debts but needs further backing to be impactful. Major European countries already have access to cheap borrowing but joining the DSRB would allow their domestic contractors to benefit from its funding. Some officials have raised concerns about overlap with existing financing programs like the EU’s SAFE program and Britain’s proposed Multilateral Defence Mechanism. There are worries about the upfront capital required for DSRB membership and the selection process for projects, as larger countries might need to contribute around €1 billion.

Murray highlighted that contributions could be spread over three years, and the DSRB could provide a more stable financing avenue for defense than existing programs. He stressed that increasing defense spending could lead to technology improvements, job creation, and economic growth while enhancing deterrence.

Canada hopes that under new Prime Minister Andy Burnham, Britain might reconsider its initial rejection of the DSRB, which was based on concerns over value for money. Burnham’s defense minister has described the DSRB as an innovative mechanism. If Britain joins, it may influence Germany’s decision to participate as well. Currently, Germany has been observing discussions but has not committed.

Industry groups in Britain and Germany are urging their governments to join the DSRB, fearing exclusion from projects financed by the bank. The DSRB has received about $10 million in support from various banks to help establish itself, and its proponents claim it is on track to achieve a high credit rating. Canada is willing to move forward with the current supporters, leaving room for other countries to join later, which could help secure the desired credit rating. The support of core shareholders is crucial for the creditworthiness of multilateral institutions.

With information from Reuters

Aug. 26 (UPI) — The U.S. Treasury issued sanctions Wednesday against British-based direct action group Palestine Action and two other organizations it called “violent far-left terrorist networks.”

The treasury declared Palestine Action a “specially designated global terrorist,” meaning that it can freeze the group’s assets, including bank accounts and property. The sanctions also prohibit people from giving funds, goods or services to the organization.

“Far-left extremists, their fronts and their enablers should be on notice: We will bring the full weight of our economic tools to bear,” said Scott Bessent, secretary of the treasury. “Political terrorism has no place in our society, and we will continue to cut the financial lifelines of these groups until they are eliminated.”

In response, Huda Ammori, the co-founder of Palestine Action, said the group’s activities in the United States and other countries “have always been about saving lives by disrupting the Israeli war machine, which is committing a genocide in Gaza with the support of the U.S. government,” The Guardian reported.

“Trump has been at the center of the mass murder of Palestinians, enabling the Zionist regime at every turn,” Ammori said.

Palestine Action was also the first direct action group named under Britain’s Terrorism Act in July 2025. The group is fighting the ban in a legal challenge before the country’s supreme court in November.

“The fact that Trump is now taking inspiration from Britain’s repression of the movement for Palestinian freedom exposes just how dangerous this ban is and should be a wake-up call to anyone who cares about free speech and civil liberties,” Ammori said.

The U.S. Treasury said Palestine Action “has supported numerous acts of terrorism since July 2020, including acts that have physically injured U.K. law enforcement personnel, as well as acts intended to intimidate lawful commercial enterprises and coerce the U.K. government.

“The group’s action include multiple high-profile instances of breaking into defense infrastructure and British military installations and causing millions of dollars’ worth of damage to military equipment,” it said.

In March 2025, Trump’s golf course in Scotland was targeted by Palestine Action supporters who painted graffiti on the clubhouse and damaged the course, spraying “Gaza is not 4 sale.” Trump at the time called those responsible “terrorists.”

Other groups named global terrorist organizations by the United States include Hamas, al-Qaida and the Islamic State.

The groups sanctioned Wednesday also include Autistici Inventati, an Italy-based group “that supplies specialized digital architecture, tools and services for Antifa cells and other violent far-left extremists,” and Masar Badil, “which operates as a front for the Popular Front for the Liberation of Palestine,” the treasury said.

TWG Global — the holding company of Dodgers owner Mark Walter — rejected allegations of financial impropriety in the purchase and operation of the Dodgers and reiterated the team is not for sale.

At a time insurance regulators and federal investigators are looking into allegations that insurance companies under Walter’s umbrella did not properly disclose and conduct transactions between other companies he controls, and after Walter sold his controlling interest in the Lakers at a record $12.5 billion valuation, potential bidders have monitored whether the Dodgers might be sold as well.

In a statement Tuesday, TWG Global decried “multipronged attacks against TWG … by unnamed sources with self-serving interests” and said no insurance policyholder has been hurt as a result of the company’s financial transactions.

“There is no victim here,” the statement said. “No one has been harmed, and no one has claimed they were harmed.”

In 2012, when Walter and his partners bought the Dodgers for $2 billion, The Times reported the use of $1.2 million from Guggenheim Partners insurance funds into the deal. At the time, rival bidders expressed concern over the unusual financing, but state insurance regulators cleared the deal and Major League Baseball approved it.

“The transaction was subject to a full investigation conducted by an outside law firm on behalf of insurance regulators from multiple states,” the statement said, “which identified no irregularities and resulted in no further action.”

Even with the Dodgers issuing over a billion dollars in deferred contracts and amid whatever transactions might have been conducted between TWG-related insurance companies and the Dodgers’ affiliates — including ones that hold the team’s television rights and ticket revenues — the Dodgers’ ability to fund player contracts is not at risk, according to the statement.

“The Dodgers have the highest revenue in baseball, and it significantly exceeds the team’s obligations to its players,” the statement said.

The statement reiterated that, as Dodgers president Stan Kasten has said, “the team is not being sold and no sale process has been initiated.”

The Dodgers, if sold, could likely command a price in the range of $10 million to $13 million, industry analysts have told The Times.

The Lakers sold at a record price for a North American sports franchise, although industry analysts have said a competitive bidding process likely would have resulted in an even higher sale price.

Said the statement: “Mr. Walter was approached by Josh Kushner and his team about this transaction and the agreement represents a 25% premium to the price paid by Mr. Walter less than a year ago (and an even higher premium to the $5.0 billion valuation Mr. Walter paid in 2021) — hardly a ‘fire sale.’”

The statement added: “TWG is not looking to sell its sports assets at ‘fire sale’ prices to raise capital for its insurance operations.”

TWG said it is “working cooperatively and in partnership with the Delaware Department of Insurance” to resolve the regulatory issues and “is committed to working with the U.S. Department of Justice and the Securities and Exchange Commission to resolve their inquiries.”

“TWG stands firmly behind the integrity of its business,” the statement read. “Despite what has been reported, there has been no fraud.”