iran war

The GOP’s YOLO caucus is small but growing. That may spell trouble for Trump’s congressional agenda

The YOLO caucus is in session.

In a Republican-led Congress defined by deference to President Trump, there’s a small but steadily growing cohort who have found themselves more willing to break with the White House. Although the president maintains a firm grip on Republican voters, the expanding club could hinder his agenda on everything from the Iran war to immigration funding at a moment when his party holds a tenuous majority on Capitol Hill.

Sen. Bill Cassidy of Louisiana is the newest member of the club. Just days after losing his primary to a Trump-backed challenger, Cassidy on Tuesday reversed himself on legislation involving the war in Iran and voted with Democrats to rein in U.S. military action.

“The way our Constitution is set up, Congress should hold the executive branch accountable,” he told reporters the day before.

Sen. John Cornyn of Texas could be next after Trump endorsed Ken Paxton, Cornyn’s rival for the Republican nomination in next week’s runoff.

Rep. Thomas Massie of Kentucky is perhaps a founding member of the YOLO caucus — slang for “you only live once,” used to punctuate unbothered or even foolhardy behavior. He frustrated Trump since the president’s first term, and his status was solidified after losing his primary on Tuesday to a Trump-backed challenger. Massie has enraged Trump by voting against his signature tax and spending bill and by pushing for the release of the Jeffrey Epstein files.

He hinted there’s more to come before he leaves office.

“I got seven months left in Congress,” Massie said with a grin during his concession speech as the crowd erupted.

More Republicans feel free to shrug off Trump

Other similarly situated Republicans include Sen. Thom Tillis, who was a fierce critic of former Homeland Security Secretary Kristi Noem and has more recently turned his attention to Defense Secretary Pete Hegseth. There’s also Sen. Lisa Murkowski of Alaska, who joined Democrats last week in a bid to curb Trump’s war powers in Iran. Sens. Susan Collins of Maine and Mitch McConnell of Kentucky have voted against some of Trump’s Cabinet picks. And in the House, Rep. Don Bacon of Nebraska has pushed to reclaim congressional power over tariffs.

“If the legislative branch always votes with the president, we do have a king,” Massie said in his concession speech Tuesday.

This hardly amounts to a revival of the Never Trump movement that some Republicans unsuccessfully hoped would curb the president’s excesses during his first term or block him from returning to office. Many in the party, including Trump’s occasional detractors, have either stood by or been unable to block the president as he launched the war in Iran and presided over an aggressive immigration enforcement operation and the dismantling of the federal workforce.

Today’s unencumbered Republicans don’t fit into an ideological box. But they are united by a sense of emboldening that can only be attained in a few ways in Trump’s Washington.

Many, like Tillis, McConnell and Bacon, have decided to retire and can cast votes knowing they’ll never again have to face Republican primary voters. Others like Collins and Murkowski have more leeway because they represent states that tend to reward political independence. And some like Massie banked on the idea that voters could support both Trump and someone who occasionally crossed him.

It’s a paradox for Trump. As he demands total loyalty and pushes out Republican dissenters, he’s left with a growing cohort who, for one reason or another, owe Trump nothing.

Democrats look to capitalize

That could be a problem for Senate Majority Leader John Thune and House Speaker Mike Johnson, who are already governing with threadbare majorities. Shifting loyalties of even a few Republican lawmakers could dramatically complicate the ability for either chamber to pass substantial legislation ahead of the November midterm elections.

Thune called Cornyn a “principled conservative” and “very effective senator” on Tuesday.

“None of us control what the president does,” he said.

The next tests could come later this week as Thune pushes a funding package for Immigration and Customs Enforcement and Customs and Border Protection designed to pass on a party line basis.

Democrats are eager to pounce.

Speaking at an event in Washington on Tuesday sponsored by the Center for American Progress, House Democratic leader Hakeem Jeffries said he would aim to drive a wedge between Republicans by using a so-called discharge petition to bring issues directly to the floor for a vote.

That tactic has been successful in securing House passage on issues including the Epstein files and temporary protection of Haitian immigrants.

“When we’re disciplined and when we’re focused and when we put pressure in particular on the so-called swing seat Republicans, they have been breaking with us,” Jeffries said.

California Gov. Gavin Newsom told reporters on Tuesday that Trump’s endorsement of Cornyn’s rival was a sign that his political power lies within the Republican base — not the American public at large.

“He’s showed the only influence he has, and that’s an outsize influence within the base of the party,” the potential 2028 Democratic presidential contender said. “Otherwise he’s shown little to no influence with the American people.”

Counting the votes

That leaves Republicans gaming out how they might cobble together the votes needed to pass legislation.

Sen. John Hoeven of North Dakota called Cassidy a “good friend” and said the loss was “tough for him.” He said Cassidy “will always vote in line with what he thinks is best” but doubted he will become a less reliable Republican vote.

His fellow Louisianan, Sen. John Kennedy, said Cassidy deploys power “rationally and maturely” and “will continue to do the same thing.”

Cassidy repeatedly rejected the notion that he will spend his final months in Washington as a troublemaker for Trump, saying he’s going to do “what’s good for my country and my state.”

Yet the independent streak that ended his political career quickly resurfaced. A week after Trump visited China, Cassidy spoke of a Western alliance that’s “totally falling apart” and will be unable to “push back on the threat China represents.” He seemed stunned that the administration would create a nearly $1.8-billion fund to compensate Trump allies who they believe have been unjustly investigated and prosecuted.

“I just came off the campaign trail,” he said. “People are concerned about making their own ends meet, not about putting a slush fund together without a legal precedent.”

Sloan and Cappelletti write for the Associated Press. AP writer Stephen Groves in Washington contributed to this report.

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Senate advances bill aimed at ending Iran war as Cassidy, after primary loss, flips to support it

The Senate advanced legislation Tuesday that seeks to force President Donald Trump to withdraw from the Iran war, as a growing number of Republicans defied the president’s wishes.

Since Trump ordered the attack on Iran at the end of February, Democrats have forced repeated votes on war powers resolutions that would require him to either gain congressional approval for the war or withdraw troops. Republicans had been able to muster the votes to reject those proposals, but Louisiana Sen. Bill Cassidy — fresh off a primary election loss in which Trump endorsed his opponent — switched sides to deliver a crucial vote to pass the legislation.

The 50-47 vote tally demonstrated the small but crucial number of Republicans voting to halt the war with Iran. The legislation will get a vote on final passage, but the timing was not immediately clear.

Republican Sens. Rand Paul of Kentucky, Susan Collins of Maine and Lisa Murkowski of Alaska had all previously voted for similar war powers resolutions and did so again Tuesday. Cassidy voted for the legislation for the first time.

After his primary election loss last week, Cassidy returned to Washington saying that he was proud of his work to uphold the Constitution and would carefully consider how he would vote on several priorities of the Trump administration.

Groves writes for the Associated Press.

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Pentagon halts deployments to Poland and Germany to cut troop numbers in Europe, AP sources say

The Pentagon is drawing down thousands of troops in Europe by canceling deployments to Poland and Germany as opposed to yanking forces already stationed there, U.S. officials say, as President Trump has tussled with allies over the Iran war and called for changes.

Several U.S. officials confirmed that 4,000 troops from the Army’s 2nd Armored Brigade Combat Team, 1st Cavalry Division were no longer en route to Poland this week. The Trump administration had previously said it was cutting U.S. forces only in Germany, and the decision spurred questions and criticism in both Warsaw and Washington.

Two officials told the Associated Press that the deployments were canceled after Defense Secretary Pete Hegseth signed a memo directing the Joint Chiefs of Staff to move a brigade combat team out of Europe. One of them said the choice of which unit was left to military leaders.

Besides the Army combat team based in Fort Hood, Texas, the memo also led to the cancellation of an upcoming deployment to Germany of a battalion trained in firing long-range rockets and missiles, according to the two officials, who like the others spoke on condition of anonymity to discuss sensitive military operations.

Three U.S. officials said the changes were part of an effort to comply with a presidential order issued at the beginning of May to reduce the number of troops in Europe by about 5,000. The reasoning does not appear to have been well communicated because others based in Europe said they did not know if the halted deployment to Poland was part of the previously announced reduction.

Trump and the Pentagon have said in recent weeks that they were cutting at least 5,000 troops to Germany after Chancellor Friedrich Merz said the U.S. was being “humiliated” by the Iranian leadership and criticized Washington’s lack of strategy in the war.

The drawdown reflects a growing rift between the administration and traditional European allies, with the U.S. leader repeatedly criticizing fellow NATO members for a lack of support for the Iran war.

Polish officials on Friday insisted that the U.S. withdrawal was not targeted directly at Poland but was a consequence of Trump’s decision to reduce the number of troops in Germany.

Polish Prime Minister Donald Tusk said he “received assurances” that the decision was of a logistical nature and said it does not directly affect deterrence capabilities and Poland’s security.

Military officials say the decision to halt unit to Poland made recently

Joel Valdez, a Pentagon spokesman, said, “the decision to withdraw troops follows a comprehensive, multilayered process” and he argued that it was “not an unexpected, last-minute decision.”

Speaking to Congress in a hearing Friday, Army Secretary Dan Driscoll and Gen. Christopher LaNeve, the Army’s chief of staff, told lawmakers that discussions around the halted deployment occurred over the last two weeks but noted the decision itself was made in the last couple days.

Republican Rep. Don Bacon of Nebraska said he spoke with Polish officials on Thursday and they noted they were “blindsided.”

The move also left many U.S. military personnel in Europe in the dark about how the Trump administration was reducing forces. A U.S. official based in Europe said a meeting was called with 20 minutes’ notice on Monday to discuss the cancellation of the deployment to Poland.

At that time, troops had already been sent to Poland and some, still in the U.S., were told shortly before departure not to travel to the airport, that official said. Another official said most of the Army unit’s equipment had already made it to Europe and was sitting in ports.

Change to troop deployment to Poland draws bipartisan criticism

The reductions drew criticism from Democratic and Republican lawmakers about the move sending the wrong signal both to allies and Russian President Vladimir Putin, whose forces this week have launched one of the deadliest attacks on the Ukrainian capital in the 4-year-old war.

At the House Armed Services Committee hearing Friday, LaNeve said he worked with U.S. Gen. Alexus Grynkewich, commander in Europe of both U.S. and NATO forces, after Grynkewich received the instructions for the force reduction.

“I’ve worked with him in close consultation of what that force unit would be, and it made the most sense for that brigade to not do its deployment in theater,” LaNeve said.

Bacon called the decision “reprehensible” and said it was “an embarrassment to our country what we just did to Poland.”

Republican Rep. Mike Rogers of Alabama, who chairs the committee, said the military is required to consult with lawmakers and that did not happen.

“So we don’t know what’s going on here,” Rogers said. “But I can just tell you we’re not happy with what’s being talked about.”

A State Department official said Friday at a security conference in Tallinn, Estonia, that the U.S. reductions in Europe were “right there in black and white” but also noted that “the U.S. isn’t going anywhere.”

“We’ll continue to work with the Pentagon and work with our partners to make sure we get the right fit and right mix of what’s happening here on the ground,” said Thomas G. DiNanno, U.S. undersecretary of state for arms control and international security.

NATO says the change in Poland won’t affect defense

With the halted deployments, the U.S. military presence in Europe will now be at pre-2022 levels, before Russia commenced its full-scale invasion of Ukraine, one U.S. official said.

European countries have been bracing for a U.S. reduction since Trump returned to the White House, with the administration warning that Europe would have to look after its own security, including Ukraine’s, in the future.

A NATO official said the U.S. decision to cancel its rotational deployment to Poland would not impact NATO’s deterrence and defense plans. Canada and Germany have increased their presence on the alliance’s eastern flank, which contributes to NATO’s overall strength, the official said, insisting on anonymity in line with NATO regulations.

Ben Hodges, former commanding general of U.S. Army Europe, said the move “reinforces the perception that the United States just does things without consultation with allies,” which ultimately “damages cohesion inside the alliance.” The decision would in the long run harm the U.S. defense industry as it reduces the trust of partners, he said.

Around 10,000 U.S. troops are typically stationed in Poland, the majority of them present in the country on a rotational basis. Only about 300 troops are permanently stationed in the country, according to the U.S. Congressional Research Service.

Polish officials had hoped they would be spared from any cuts as Poland spends the most in NATO on defense as a proportion of its economy — around 4.7% in 2025. Hegseth has called it a “model ally” in NATO for spending so much on defense.

When Poland’s conservative president, Karol Nawrocki, visited the White House in September, Trump said he didn’t intend to pull U.S. troops out of Poland. “We’ll put more there if they want,” Trump said at the time.

Toropin, Burrows, Finley and Ciobanu write for the Associated Press. Burrows reported from Tallinn, Estonia, and Ciobanu from Warsaw.

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Republican resistance to Iran war grows in the Senate as Murkowski flips

Senate Republicans on Wednesday again blocked Democratic legislation that would halt President Trump’s war with Iran, but the number of GOP senators voting against the war grew.

Republican Sen. Lisa Murkowski of Alaska voted against the war for the first time since it began at the end of February. Two other Republicans, Sens. Susan Collins of Maine and Rand Paul of Kentucky, also voted against the war, as they had done previously.

The war powers legislation ultimately failed to advance 49-50, with Sen. John Fetterman of Pennsylvania the only Democrat to oppose it, yet the close tally reflected growing unease with Trump’s war. Several other Republican senators have signaled they want Congress to weigh in on the direction of the conflict.

“There will be a day — and it might be soon, I believe — where this Senate will say to the president, ‘Stop this war,’” Democratic Sen. Tim Kaine of Virginia, who has spearheaded his party’s tactic of forcing repeated votes on the war, said before the vote.

Even if it passes the Senate, a war powers resolution would have a slim chance of passing the House and would also certainly be vetoed by Trump. But Democrats say the votes are about building political pressure on the president either to withdraw from the conflict or seek congressional authorization to wage the war.

Trump officials downplay role for Congress

The White House, meanwhile, has asserted that it does not need congressional authorization for the war and has circumvented legal requirements to gain approval from Congress to continue the military campaign. It claims that it has “terminated” hostilities with Iran because the U.S. has entered a ceasefire.

That posture has created tension between the Republican-controlled Congress and the White House because presidents under the War Powers Resolution of 1973 are required to obtain authorization from Congress after 60 days of engaging in a conflict.

Defense Secretary Pete Hegseth told lawmakers this week that the U.S. could start attacking Iran again without the White House seeking congressional approval. He told Murkowski during a hearing on Tuesday that the Trump administration believes it has “all the authorities necessary.”

Murkowski voiced skepticism about that argument. She pointed to the troops and war ships deployed to the region, saying, “It doesn’t appear that hostilities have ended.”

GOP leaders back the war, but unease grows

Republican leadership has continued to back the war with Iran, arguing that the stalemate in the Strait of Hormuz that has blocked most commercial shipping puts more economic pressure on Iran than it does on the U.S.

“Iran’s economy is on life support. Its leadership is eliminated,” said Sen. John Barrasso, the No. 2 Republican in leadership, during a floor speech Wednesday.

He also argued that the Democratic effort on the war is all about undermining Trump. Forcing the issue just as he arrived in China for a summit would “pull out the rug from under him,” Barrasso said.

Still, Republicans are also growing uneasy about the high gas prices, especially as the November elections draw near.

Sen. Mike Rounds, a Republican from South Dakota, said Wednesday he’d prefer that the two branches of government work out the constitutional issues instead of a congressional war powers vote or a potential challenge in court.

The two sides should sit down together and say “we have shared constitutional responsibilities,” Rounds said.

Democrats plan to keep forcing weekly votes on war powers resolutions and are looking ahead to put limitations on Trump during the debate over annual legislation that authorizes and funds the military.

Sen. Jeff Merkley, an Oregon Democrat who sponsored Wednesday’s resolution, told reporters that he believes there is an “erosion of support, erosion of enthusiasm, an increase in skepticism” about the war from Republicans.

Groves writes for the Associated Press.

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Trump arrives in Beijing for talks with China’s Xi on Iran war, trade and U.S. arms sales to Taiwan

President Trump arrived in Beijing on Wednesday for his hotly anticipated talks with Chinese President Xi Jinping on the Iran war, trade and U.S. arms sales to Taiwan.

The meat of the summit doesn’t start until Thursday, when the leaders hold bilateral talks, visit the Temple of Heaven, where Chinese emperors once prayed for bumper crops, and take part in a formal banquet. But the Chinese offered Trump a pomp-filled welcome, literally rolling out the red carpet for him after Air Force One landed in the Chinese capital.

The president was greeted by Chinese Vice President Han Zheng; Xie Feng, China’s ambassador to Washington; Ma Zhaoxu, executive vice minister of foreign affairs; and the U.S. envoy to Beijing, David Perdue.

The welcoming ceremony included a military honor guard, a military band and some 300 Chinese youths waving Chinese and American flags and chanting, “Welcome, welcome! Warm welcome!” as Trump made his way to his waiting limousine. The youth greeters were decked out in white and robin’s egg blue outfits that matched the paint job of the iconic presidential plane.

President Trump walks with China's Vice President Han Zheng during an arrival ceremony

President Trump walks with China’s Vice President Han Zheng during an arrival ceremony Wednesday at Beijing Capital International Airport, as Eric and Lara Trump, Elon Musk, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and U.S. Trade Representative Jamieson Greer follow.

(Mark Schiefelbein / Associated Press)

“We’re the two superpowers,” Trump told reporters as he departed the White House on Tuesday for the long flight to Beijing. “We’re the strongest nation on Earth in terms of military. China’s considered second.”

While Trump likes to project a sense of strength, the visit occurs at a delicate moment for his presidency as his popularity at home has been weighed down by the U.S. and Israel’s war with Iran and rising inflation as a consequence of that conflict. The Republican president is seeking a win by signing deals with China to buy more American soybeans, beef and aircraft, saying he’ll be talking with Xi about trade “more than anything else.”

The Trump administration hopes to begin establishing a Board of Trade with China to address differences between the countries. The board could help prevent the trade war ignited last year after Trump’s tariff hikes, an action China countered through its control of rare earth minerals. That led to a one-year truce last October.

But Trump is visiting Beijing when Iran continues to dominate his domestic agenda. The war has led to the effective closure of the Strait of Hormuz, stranding oil and natural gas tankers and causing energy prices to spike to levels that could sabotage global economic growth. The U.S. president declared that Xi didn’t need to assist in resolving the conflict, even though Iran’s Foreign Minister Abbas Araghchi was in Beijing last week.

Fellow rescuers carry the coffins of two members of the civil defense who were reportedly killed in Israeli airstrikes

Fellow rescuers carry the coffins of two members of the civil defense who were reportedly killed in Israeli airstrikes in Nabatieh the previous day, during their funeral in the southern city of Sidon on May 13, 2026. Israel hammered south Lebanon with strikes on May 12 ahead of talks between the two countries in Washington, as Beirut reported 380 people killed in Israeli attacks since an April 17 ceasefire took effect.

(Mahmoud Zayyat/AFP via Getty Images)

“We have a lot of things to discuss. I wouldn’t say Iran is one of them, to be honest with you, because we have Iran very much under control,” Trump told reporters Tuesday.

Taiwan high on the agenda

The status of Taiwan also will be a major topic as China is displeased with U.S. plans to sell weapons to the self-governing island, which the Chinese government claims as part of its own territory.

Trump told reporters on Monday that he would be discussing with Xi an $11 billion weapons package for Taiwan that the U.S. administration authorized in December but has not yet begun fulfilling. The arms package is the largest ever approved for Taiwan.

But Trump has demonstrated greater ambivalence toward Taiwan, an approach that’s raising questions about whether the U.S. leader could be open to dialing back support for the island democracy.

The Taiwanese flag at Democracy Boulevard is lowered at the Chiang Kai-shek Memorial Hall

The Taiwanese flag at Democracy Boulevard is lowered at the end of the day as the Chiang Kai-shek Memorial Hall is seen in the background in Taipei on May 13, 2026.

(I-Hwa Cheng/AFP via Getty Images)

At the same time, Taiwan — as the world’s leading chipmaker — has become essential for the development of artificial intelligence, with the U.S. importing more goods so far this year from Taiwan than China. Trump has sought to use Biden-era programs and his own deals to bring more chipmaking to America.

The Chinese Communist Party’s news outlet, People’s Daily, published a strongly worded editorial ahead of Trump’s arrival underscoring that Taiwan is “the first red line that cannot be crossed in China-U.S. relations” and is “the biggest point of risk” between the two nations.

Trump was already portraying the trip as a success before he even left White House grounds. He openly mused about Xi’s planned reciprocal visit to the U.S. later this year, lamenting that the White House ballroom under construction would not be completed in time to properly fete the Chinese leader.

“We’re going to have a great relationship for many, many decades to come,” Trump said of the U.S. and China.

Counter snipers and other security forces watch over Air Force One while refueling at Joint Base Elmendorf

Counter snipers and other security forces watch over Air Force One while refueling at Joint Base Elmendorf during a trip with US President Donald J. Trump in Anchorage, Alaska, on May 12, 2026. Donald Trump was due in Beijing on May 13, 2026 on the first visit to China by a US president in nearly a decade, as he seeks to ramp up trade despite potential friction over Taiwan and Iran.

(Brendan Smialowski/AFP via Getty Images)

Trump embarked on Air Force One for the big meeting with a coterie of aides, family members and business world titans, including Nvidia’s Jensen Huang and Tesla and SpaceX’s Elon Musk. While en route to Beijing, he posted on social media that his “first request” to Xi during the visit will be to ask the Chinese leader to bolster the presence of U.S. firms in China.

“I will be asking President Xi, a Leader of extraordinary distinction, to ‘open up’ China so that these brilliant people can work their magic, and help bring the People’s Republic to an even higher level!” Trump wrote.

Tajikistan's President Emomali Rahmon and China's President Xi Jinping attend a welcoming ceremony

Tajikistan’s President Emomali Rahmon and China’s President Xi Jinping attend a welcoming ceremony at the Great Hall of the People on Tuesday, in Beijing.

(Maxim Shemetov—Pool / Getty Images)

Despite Trump’s outward confidence, China appears to be entering the meeting from “a much stronger place,” said Scott Kennedy, a senior adviser on Chinese business and economics at the Center for Strategic and International Studies, a Washington think tank.

China would like to reduce tech restrictions on accessing computer chips and find ways to reduce tariffs, among other goals.

“But even if they don’t get much on any of those things, as long as there’s not a blow-up in the meeting and President Trump doesn’t go away and look to re-escalate, China basically comes out stronger,” Kennedy said.

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met on Wednesday to discuss economic and trade issues at Incheon International Airport, just west of the South Korean capital of Seoul, according to the Chinese state run Xinhua News Agency.

Bystanders are kept back by police tape as they film the motorcade of President Donald Trump as he arrives

Bystanders are kept back by police tape as they film the motorcade of President Donald Trump as he arrives at the Four Seasons Hotel on Wednesday in Beijing.

(Kevin Frayer / Getty Images)

Trump wants 3-way nuclear arms deal

Trump also intends to raise the idea of the U.S., China and Russia signing a pact that would set limits on the nuclear weapons each nation keeps in its arsenal, according to a senior Trump administration official who briefed reporters ahead of the trip. The official spoke on the condition of anonymity under ground rules set by the White House.

China has previously been cool to entering such a pact. Beijing’s arsenal, according to Pentagon estimates, exceeds more than 600 operational nuclear warheads and is far from parity with the U.S. and Russia, which each are estimated to have more than 5,000 nuclear warheads.

The last nuclear arms pact, known as the New START treaty, between Russia and the United States expired in February, removing any caps on the two largest atomic arsenals for the first time in more than a half-century. As the treaty was set to expire, Trump rejected a call by Russia to extend the two-country deal for another year and called for “a new, improved, and modernized” deal that includes China.

The Pentagon estimates China will have more than 1,000 operational nuclear warheads by 2030.

Madhani, Weissert and Boak write for the Associated Press. Boak reported from Washington. AP writers Darlene Superville in Washington, Huizhong Wu in Bangkok, Hyung-jin Kim in Seoul, South Korea, and Kanis Leung in Hong Kong contributed to this report.

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Two-thirds of Europe’s LNG imports to come from the US amid increased reliance

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Europe’s reliance on American liquefied natural gas is set to increase further next year as the EU continues efforts to phase out Russian fossil fuel imports, according to new analysis published by the IEEFA on Wednesday.


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The report estimates that the US could supply close to two-thirds of Europe’s LNG imports in 2026, reinforcing Washington’s dominant position in the continent’s gas market after Russia’s invasion of Ukraine and the Iran war reshaped global energy flows.

According to IEEFA, the US already accounted for 57% of Europe’s LNG imports in 2025, a sharp increase compared with pre-war levels.

The organisation warned that the share could continue rising over the coming years if current import trends persist and additional long-term supply contracts enter into force.

The findings come as most European governments seek to fully eliminate Russian gas imports by 2027 under the European Commission’s REPowerEU strategy.

Since 2022, EU member states have rapidly expanded LNG purchases, particularly from the US, to compensate for declining Russian pipeline deliveries.

The IEEFA stated that the shift had improved Europe’s short-term energy security but also created a growing concentration risk.

The think tank argued that replacing dependence on Russian gas with heavy reliance on another single alternative supplier could expose Europe to future political and market instability.

Lower demand but higher imports and investment

The report noted that LNG imports from the US generally come at a higher cost than pipeline gas because of liquefaction, shipping and regasification expenses.

The IEEFA estimates that EU countries spent roughly €117 billion on US LNG imports between early 2022 and mid-2025.

Several European policymakers and regulators have previously warned against excessive dependence on imported LNG.

Earlier this year, European Commission Executive Vice President Teresa Ribera said the bloc should avoid replacing one energy dependency with another and accelerate investment in renewable power and electrification instead.

The European Union Agency for the Cooperation of Energy Regulators has also raised concerns about supply concentration risks linked to the growing role of US LNG in the European market.

The increase in LNG imports also comes despite a broader decline in European gas consumption in recent years.

High prices following the energy crisis, industrial weakness, energy-saving measures and faster deployment of renewable energy have all contributed to lower demand.

The IEEFA data shows Europe’s LNG imports declined in 2024 as gas consumption fell to its lowest level in more than a decade. However, imports rebounded in 2025 amid colder weather conditions and efforts by governments to replenish storage sites.

At the same time, several EU countries continue expanding LNG import infrastructure.

Germany, which previously relied heavily on Russian pipeline gas, has rapidly developed floating LNG terminals and emerged as one of the largest buyers of US LNG in Europe.

Analysts have also questioned whether Europe risks building excess LNG import capacity as long-term gas demand is expected to weaken further during the energy transition in the coming years.

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Hegseth faces bipartisan grilling about weapons drawdown during the Iran war

Defense Secretary Pete Hegseth faced tough questions Tuesday from Republican and Democratic lawmakers about the Trump administration’s end game for the Iran war, the cost of the conflict and its impact on diminishing U.S. weapons stockpiles.

For his part, the Pentagon chief softened his tone from hearings before Congress nearly two weeks ago, notably avoiding the same pointed criticism of lawmakers in his opening remarks as he outlined the Trump administration’s efforts to ramp up production of weapons and other military capabilities.

Even so, Hegseth insisted that the military has plenty of missile defense systems and other munitions for the Iran war or future conflicts as both Republicans and Democrats hammered him with those concerns.

“I take issue with the characterization that munitions are depleted in a public forum,” Hegseth said. “That’s not true.”

The cost of the Iran war has risen to about $29 billion, the vast bulk of which — $24 billion — is related to replacing and repairing munitions but also includes operational costs to keep forces deployed, Pentagon comptroller Jay Hurst said. That’s up from $25 billion that he told lawmakers nearly two weeks ago.

The powerful House and Senate Appropriations subcommittees that oversee defense spending are holding back-to-back hearings to review the Trump administration’s 2027 military budget proposal, which calls for a historic allocation of $1.5 trillion. The discussions in the House quickly veered into the handling of a war that appears locked in a stalemate as higher fuel prices pose political problems for Republicans in the midterm congressional elections.

Hegseth and Caine face bipartisan pushback on munitions stockpiles

Rep. Rosa DeLauro, the ranking Democrat on the House Appropriations Committee, told Hegseth that the “question must be answered at the end of this crisis: What have we accomplished and at what cost?”

“This administration has not presented Congress with any kind of clear or coherent strategy week to week, day to day, hour to hour,” DeLauro said. “The rationale shifts, the objectives change. The end game is ill-defined when it is defined at all.”

California Republican Rep. Ken Calvert, the House subcommittee’s chair, also asked about the impact of the Iran war on military funding as well as the U.S. military’s weapons stockpiles.

“Questions persist about whether we are building the depth and reliance required for a high-end conflict,” Calvert said.

Minnesota Rep. Betty McCollum, the defense subcommittee’s ranking Democrat, pressed Hegseth on whether the military has a plan to draw down troops in the Middle East if Congress passes so-far-unsuccessful efforts to end the Iran war.

“We have a plan to escalate if necessary,” Hegseth said. “We have a plan to retrograde if necessary. We have a plan to shift assets.”

He said he would not reveal any next steps publicly. Noting repeated questions from lawmakers over the military’s weapons stockpiles, drawn down from the Iran war, Hegseth said the concerns have been “unhelpfully overstated” and that “we have plenty of what we need.”

He said the defense industry has been told to “build more and build faster,” blaming the military industrial base’s inadequate capacity on previous administrations and U.S. aid to Ukraine in its war with Russia.

Trump administration faces pressure from impact of the Iran war

President Trump is facing increasing pressure from the economic shocks of Iran effectively closing the Strait of Hormuz, a vital shipping corridor where 20% of the world’s oil normally flows. The U.S. military in turn has blockaded Iranian ports and the two sides have traded fire, with American forces thwarting attacks on their warships and disabling Tehran-linked oil tankers.

Trump said Monday that the ceasefire is on “massive life support” and criticized Iran for its latest proposal, pointing to his demands that Iran significantly limit its nuclear program.

“I would call it the weakest right now after reading that piece of garbage they sent us,” Trump said.

The Republican president also said he wanted to suspend the federal gas tax to help Americans shoulder surging fuel prices. He has previously said higher costs are worth it to prevent Iran from getting a nuclear weapon.

Tuesday’s hearings are giving a mostly new group of lawmakers the chance to grill or applaud Hegseth and Gen. Dan Caine, chair of the Joint Chiefs of Staff, on the planning and execution of the war.

The Senate hearing later Tuesday will include Sen. Susan Collins of Maine, a Republican whose reelection this year is far from guaranteed. She voted with Democrats on an effort to halt the conflict late last month, saying she wants to see a defined strategy for bringing the war to a close.

Alaska Sen. Lisa Murkowski, another Republican on the Senate Appropriations defense subcommittee, has voted against the string of unsuccessful war powers resolutions but spoken of the need for congressional authorization so Americans will know the war’s limits and objectives.

He also will face plenty of friendly Republicans, including the Senate subcommittee’s chair, Sen. Mitch McConnell of Kentucky, and perhaps the Iran war’s biggest booster in Congress, Sen. Lindsey Graham of South Carolina.

Finley, Toropin and Barrow write for the Associated Press. Barrow reported from Atlanta.

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Oregon Democrats found a way to improve roads. Now their gas tax goes before voters as prices soar

Appealing to voters’ anxieties about the soaring cost of living is central to Democrats’ messaging in their hopes of big wins in this year’s midterm elections. In Oregon, a question on the primary ballot is complicating that strategy.

The Democratic-controlled Legislature raised the state gas tax and a range of fees last fall as a way to pay for road improvements and plug a hole in the state’s transportation budget. Republicans responded with a petition to repeal the increases, leading to a referendum that will land before voters just as the Iran war is causing the price of gas to skyrocket around the United States.

“It is a hell of a time to be raising gas taxes on people,” said Jeanine Holly, filling up her tank on a recent morning in Portland.

The gas tax repeal on the state’s May 19 primary ballot comes amid widespread disruptions in the oil industry from the war with Iran started by Israel and President Trump. Discontent is high among U.S. consumers across the political spectrum, with the price of gas topping $4.50 a gallon nationally on Friday and averaging about 80 cents more per gallon in Oregon.

The referendum will give voters a chance to weigh in on a hot-button issue hitting them directly in the pocketbook at a time when prices remain elevated for everything from housing to groceries. Nationally, Democrats have focused on the affordability concerns similar to those that helped propel Trump to victory in 2024. Some of their candidates have even proposed ways to cut taxes as a way to promote their agenda and counter a traditional GOP strategy.

“It’s difficult to imagine a worse situation for … a gas tax increase than right now in American politics,” said Chris Koski, professor of political science and environmental studies at Portland’s Reed College.

Republicans sense an opportunity

Republicans wasted no time in appealing to voters after the Legislature and Democratic governor signed off on the tax increase, which also included a higher payroll tax for transit projects and a boost in vehicle registration and title fees.

They needed 78,000 voter signatures to qualify the referendum for the ballot. They quickly got 250,000.

“That is a remarkable number,” Republican strategist Rebecca Tweed said.

Republicans in Oregon have countered Democrats’ affordability messaging by portraying the tax and fee increases as further fueling the high cost of living.

“Do Oregonians want to pay more? The answer is no,” said GOP state Sen. Bruce Starr, who helped lead the referendum campaign. “Everything they’re looking at is expensive.”

Under the legislation, Oregon’s gas tax would rise from 40 cents to 46 cents a gallon. That would make it tied with Maryland for the eighth-highest gas tax of any state when factoring in other state taxes and fees, according to figures from the U.S. Energy Information Administration.

At the Portland gas station, Michael Burch said he used to spend $70 to fill three-quarters of his pickup truck’s tank, but now pays $80 for just over half a tank.

“I’m sick and tired of taxes,” the 76-year-old retiree said. “Gas is certainly dampening the spirits and the coffers of folks that aren’t as well off.”

Hannah Coe, a 30-year-old student, said she was not sure how she would vote on the primary ballot referendum.

“I think I would be in favor of it if it was going to go to the things that it was saying it was going to go to, such as fixing our roads,” she said. “I also kind of feel like that’s just a grab at trying to get more money from the people who live here.”

Democrats blame the Iran war

Oregon Democrats spent much of last year fighting to pass a transportation funding bill to help raise money for services such as road paving and snow plowing. The debate came amid projections of declining gas tax revenue as more people adopt electric, hybrid and fuel-efficient cars.

They finally passed a narrower version of their plan during a special session called by Gov. Tina Kotek.

She recently acknowledged the challenging timing of the referendum.

“Certainly, the conversation at the ballot this year … is a tough sell right now, because I think everyone is feeling a pinch on their household budgets,” she told reporters.

But she and other Democrats said the root cause of the jump in gas prices is Trump’s decision to go to war with Iran. She suggested the federal government consider reducing the federal 18-cent-a-gallon gas tax if it wants to provide relief at the pump for Americans.

Some Oregonians are receptive to the Democrats’ reason for passing the legislation last year. Kurt Borneman, 68, said he would support the gas tax increase, even though he’s now paying at least $10 more to fill up his tank.

“I realize that money’s tight and roads need to be improved,” he said at the Portland gas station. “I want less government, but I also want nice roads.”

Democratic state Rep. Paul Evans said his party lost the battle over how to frame the gas tax increase to the public. So far, there has been no organized effort from Democrats and their allies to oppose the ballot referendum.

“When anything is reduced to, ‘Do you want a tax or not?’ Most people are going to say no,” he said. “The messaging got away from us, and it became focused upon the price instead of the value.”

Rush writes for the Associated Press.

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Rubio presses Europe on Iran action as he seeks to mend ties with Italy and Vatican

U.S. Secretary of State Marco Rubio urged European allies Friday to move beyond rhetoric and take concrete action against Iran, even as he sought to repair strained ties with Italy and the Vatican during a two-day visit following tensions over the U.S.-Israeli war in Iran.

Speaking after meetings with Premier Giorgia Meloni and Foreign Minister Antonio Tajani, Rubio warned that Tehran was attempting to assert control over the strategic Strait of Hormuz, calling the move “unacceptable” and a threat to global security.

“Everybody says Iran is a threat. Everybody says that Iran can’t have a nuclear weapon … but you’ve got to do something about it,” Rubio told reporters in Rome. “If the answer is no … then you better have something more than just strongly worded statements to back it up.”

Clear ‘red line’

Rubio said Iran was trying to normalize control over an international waterway, a precedent he warned could encourage similar actions elsewhere. He also cautioned Tehran against targeting U.S. maritime assets, saying the United States had thwarted attacks on three Navy ships in the strait.

“The red line is clear. They threaten Americans, they are going to be blown up,” he said.

Rubio said Washington was pursuing a diplomatic track, including a proposed U.N. Security Council resolution aimed at preserving freedom of navigation. He added the U.S. was awaiting Iran’s response on Friday to ongoing diplomatic efforts.

Rubio’s visit comes after weeks of sharp disagreements between Washington and Rome over the Iran war, tariffs and President Trump’s criticism of both Meloni and Pope Leo XIV.

Differences remain over Iran war

Meloni described her meeting with Rubio as “constructive, frank and productive,” focused on both bilateral relations and major international issues. She said the talks covered strategic topics, including the Middle East, freedom of navigation in the Strait of Hormuz, Ukraine, China and areas of Italian interest such as Libya and Lebanon.

“We both understand how important the trans-Atlantic relationship is, but we also understand that each country must defend its own national interests,” Meloni stressed after the meeting.

Tajani struck a more conciliatory tone after meeting his U.S. counterpart, reaffirming the importance of the trans-Atlantic alliance.

“I am convinced Europe needs America — Italy needs America — and the United States also needs Europe and Italy,” Tajani said, adding he hoped “tensions have been calmed.”

He said discussions covered the Iran conflict and its spillover into Lebanon, as well as Venezuela and Cuba. The U.S. State Department said Rubio also raised the need to protect economic interests and end the war in Ukraine.

Despite the effort to ease tensions, differences remain over the Iran conflict. Italy has opposed the U.S.-Israeli bombing campaign, with Meloni calling it “illegal,” and has resisted involvement in offensive operations.

Tajani said Italy would be prepared to contribute naval forces to demine the Strait of Hormuz once a permanent ceasefire is reached, and would maintain its role in the U.N. peacekeeping mission in Lebanon. He also stressed the importance of continued U.S. troop presence in Europe amid concerns about possible reductions.

No final decision on NATO troops adjustments

Rubio said “no final decision” had been made on NATO troop adjustments, noting that any changes would depend on U.S. national interests and global priorities.

The U.S. has announced a decision to pull 5,000 military personnel from Germany and Trump has threatened to withdraw more troops from Italy and Spain over their stance on the war.

Italy, a key logistics hub for U.S. and allied operations in the Mediterranean and beyond, has already signaled limits to its cooperation. In March, it declined to allow U.S. bombers bound for the Middle East to use a base in Sicily without parliamentary approval, reflecting constitutional constraints and strong domestic opposition to the war.

Meloni, weakened by a recent referendum defeat and facing public unease over the conflict, has insisted that any use of Italian bases for offensive operations would require parliamentary backing.

The war has also raised economic concerns in Italy, with Meloni warning that disruptions in the Strait of Hormuz risk driving up energy costs and inflation, while U.S. tariff threats weigh on the country’s export-driven economy.

An attempt to de-escalate at the Vatican

Rubio also sought to ease tensions with the Vatican following Trump’s criticism of the pope’s calls for peace. After a lengthy meeting on Thursday with the pontiff and Vatican Secretary of State Cardinal Pietro Parolin, Rubio said Washington remained committed to a “productive and fruitful” relationship with the Catholic Church.

“The president’s perspective is clear. He thinks that Iran is a threat, and it needs to be addressed. And that position remains unchanged,” Rubio said.

Rubio confirmed that Cuba was also discussed at the Vatican, with Washington hoping the church’s Caritas charity organization would continue distributing humanitarian aid.

Rubio said the U.S. has provided about $6 million in humanitarian aid to Cuba, to be distributed through Caritas, should the Cubans allow it. He added Washington has also offered up to $100 million in additional aid, but the Cuban government has not accepted it so far. Rubio blamed Cuba’s government for blocking assistance and worsening conditions, describing it as “incompetent.”

U.S. officials said the Vatican talks underscored strong bilateral ties and a shared commitment to promoting peace, even as differences over the Iran war persist.

Zampano and Winfield write for the Associated Press.

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Vatican and State Department stress solid ties after Rubio’s fence-mending visit over Trump attacks

The Vatican raised the “need to work tirelessly in favor of peace” in talks Thursday with U.S. Secretary of State Marco Rubio, who came to Rome on a fence-mending visit after President Trump’s criticisms of Pope Leo XIV over the Iran war.

Both the Vatican and the U.S. State Department stressed that Rubio’s meetings with Leo and the Vatican’s top diplomat underscored strong bilateral ties. Those relations, though, have been strained over Trump’s repeated broadsides about Leo’s calls for peace and dialogue to end the U.S.-Israeli war.

Rubio, a practicing Catholic, has often been called on to tone down or explain Trump’s harsh rhetoric. He had an audience first with Leo, which was complicated at the last minute by Trump’s latest criticism of the Chicago-born pope. During a 2½-hour visit, Rubio then met with the Vatican secretary of state, Cardinal Pietro Parolin, who on the eve of his visit had strongly defended Leo and criticized Trump’s attacks.

“Attacking him like that or criticizing what he does seems a bit strange to me, to say the least,” Parolin said Wednesday.

After the meetings, the U.S. State Department said that Rubio and Parolin discussed “ongoing humanitarian efforts in the Western Hemisphere and efforts to achieve a durable peace in the Middle East. The discussion reflected the enduring partnership between the United States and the Holy See in advancing religious freedom.”

In a separate statement about the audience with Leo, U.S. State Department spokesperson Tommy Pigott said that the two discussed the situation in the Middle East and the Western Hemisphere. “The meeting underscored the strong relationship between the United States and the Holy See and their shared commitment to promoting peace and human dignity,” he said.

The Vatican, for its part, said that during Rubio’s meetings with both Leo and Parolin, “the shared commitment to fostering good bilateral relations between the Holy See and the United States of America was reaffirmed.”

It said the two sides exchanged views on the current events “with particular attention to countries marked by war, political tensions, and difficult humanitarian situations, as well as on the need to work tirelessly in favor of peace.”

Rubio also has meetings Friday with Italian Premier Giorgia Meloni and Foreign Minister Antonio Tajani. Those meetings might not be much easier for Washington’s top diplomat, given both have strongly defended Leo against Trump’s attacks and have criticized the Iran war as illegal — drawing the president’s ire.

A mission to smooth ties

The tensions began when Trump lashed out at Leo on social media last month, saying the pope was soft on crime and terrorism for comments about the administration’s immigration policies and deportations as well as the Iran war. Leo then said that God doesn’t listen to the prayers of those who wage war.

Later, Trump posted a social media image appearing to liken himself to Jesus Christ, which was deleted after a backlash. He has refused to apologize to Leo and has sought to explain away the post by saying that he thought the image was a representation of him as a doctor.

Rubio said that Trump’s recent criticisms of Leo were rooted in his opposition to Iran potentially obtaining a nuclear weapon, which he said could be used against millions of Catholics and other Christians.

Leo has never said Iran should obtain nuclear weapons and that the Catholic Church “for years has spoken out against all nuclear weapons, so there is no doubt there.”

“The mission of the church is to preach the Gospel, to preach peace. If someone wants to criticize me for announcing the Gospel, let him do it with the truth,” Leo said late Tuesday, after Trump again accused him of being “OK” with Iran having a nuclear weapon.

By Thursday, tensions seemed to have eased.

Rubio gave Leo a small crystal football paperweight. He acknowledged Leo’s known allegiance to the Chicago White Sox, saying “you’re a baseball guy,” but noted that the football had the seal of the State Department on it.

“What to get someone who has everything?” Rubio joked as he gave Leo the paperweight.

Leo, for his part, gave Rubio a pen apparently made of olive wood — “olive being of course the plant of peace,” Leo said — with his coat of arms on it and a picture book of Vatican artworks.

Trump also has criticized Meloni and other NATO allies for a lack of support for the Iran war, recently announcing plans to withdraw thousands of American troops from Germany in the coming months.

Vatican seen as willing to have dialogue

Giampiero Gramaglia, former head of the ANSA news agency and its onetime Washington correspondent, said that he didn’t expect much to come out of Rubio’s visit for Italian or Vatican relations. He, and other Italian commentators, believe Rubio instead was looking to smooth over relations with the pope for his own political ambitions, as well as the upcoming midterm U.S. congressional elections and 2028 presidential race.

“I doubt Rubio has the role of conciliator for Trump,” he told Italy’s Foreign Press Association. “I have the perception that Rubio’s mission is more about himself” and his political ambitions as a prominent Catholic Republican.

The Rev. Antonio Spadaro, undersecretary in the Vatican’s culture office, said that Rubio’s mission wasn’t to “convert” the pope to Trump’s side. Rather, Washington “has come to acknowledge — implicitly but legibly — that (Leo’s) voice carries weight in the world that cannot simply be dismissed.”

“The situation created by President Trump’s remarks required a high-level, direct intervention, conducted in the proper language of diplomacy: a semantic corrective to a narrative of frontal conflict with the church,” he wrote in an essay this week.

Cuba is also on the agenda

Rubio said that topics other than the Iran war were on the agenda for the Vatican visit, including Cuba. The Holy See is particularly concerned about the Trump administration’s threats of potential military action there following its January ouster of Venezuelan President Nicolás Maduro.

Trump has said frequently that Cuba could be “next,” and even suggested that once the Iran war is over, naval assets deployed in the Middle East could return to the United States by way of Cuba.

Rubio is the son of Cuban immigrants and a longtime Cuba hawk.

“We gave Cuba $6 million of humanitarian aid, but obviously they won’t let us distribute it,” Rubio said. “We distributed it through the church. We’d like to do more.”

Winfield and Lee write for the Associated Press. Lee reported from Washington.

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Lufthansa posts record revenue but warns Iran war fuel costs will hit annual profit

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The surge in jet fuel prices has become a primary concern for the European travel industry, with Lufthansa finding itself at the centre of this crisis.


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According to Lufthansa’s latest earnings report, the airline expects an additional €1.7 billion ($2bn) fuel cost burden in 2026 as soaring jet fuel prices continue to weigh on the industry.

The need to avoid certain airspaces has led to longer flight times, which naturally increases consumption. These adjusted routes also require more staff hours and higher maintenance cycles, adding layers of complexity to an already strained global supply chain.

As reported by Euronews, global airlines have already cancelled approximately 13,000 flights this May, while Lufthansa alone has axed 20,000 short-haul flights through to October in a bid to cut fuel consumption.

This reduction in capacity is a direct response to the unsustainable cost of operating older, less fuel-efficient aircraft during price peaks.

While Lufthansa has managed to stay profitable, the jet fuel price spikes have forced the firm to advise passengers to book their holidays as early as possible to avoid further surcharges.

The company is currently investing heavily in its “fleet modernisation” programme to mitigate these risks in the long term, though the immediate impact of fuel volatility continues to weigh on the balance sheet.

Lufthansa remains committed to its financial targets, but the volatility of the global oil market remains the largest variable in its 2026 outlook.

“We are satisfied with the first quarter […] at the same time, the current situation compels us to rigorously examine every lever available to reduce costs, improve efficiency and mitigate risks in order to maintain our ability to act decisively. Our annual profit will likely be lower than originally anticipated,” CFO Till Streichert stated.

The Lufthansa Group has announced a landmark financial performance, revealing that it generated the highest revenue in its history in 2025. Revenue rose by 5% compared with the previous year to €39.6 billion.

According to the latest figures, the airline group also saw its operating profit grow by 20% compared with 2024, highlighting a robust recovery in passenger demand.

In the first quarter of 2026, year-on-year revenue climbed 8% despite challenges linked to the conflict involving Iran, including €1.7 billion in additional costs caused by volatile jet fuel prices and the suspension of dozens of routes.

The firm kept its capacity broadly stable with slight growth in long-haul traffic compensating for capacity reductions in short and medium-haul segments.

Lufthansa Technik and Lufthansa Cargo also significantly contributed to earnings with demand for maintenance, repair and overhaul services increasing, as well as through the marketing of ITA Airways’ cargo space.

Global demand for air travel remains high and continues to prove resilient even in times of crisis, as Lufthansa Group again expects a strong summer travel season.

“In the first quarter, we significantly improved on the previous year’s financial results […] but the ongoing crisis in the Middle East, combined with rising fuel costs and operational constraints, poses enormous challenges for the world as a whole, for global air travel and for our company as well,” CEO Carsten Spohr stated.

“However, we are resilient in our ability to absorb these impacts. This applies both to our above-average hedging against fuel price fluctuations and to our multi-hub, multi-airline strategy, which provides us with greater flexibility in our route network and fleet development,” Spohr added.

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Broken Spirit: Jet Fuel Surge, Iran War Rattle Airlines

Amid Spirit Airlines’ bankruptcy, airlines that were once confident in their financial resilience are now navigating a volatile geopolitical landscape.

The collapse of Spirit Airlines, the scrappy low-cost carrier, underscores the fragile economics of air travel amid $4-per-gallon jet fuel and high crude prices.

From Atlanta-based Delta Air Lines to Hong Kong-based Cathay Pacific, carriers are reassessing routes and fares as soaring fuel costs threaten profits, while the Iran war disrupts shipping through the Strait of Hormuz.

Airlines and investors had anticipated stable fuel costs in the second quarter, but analysts have had to adjust their outlooks. Forward-looking projections indicate fuel prices will remain above previous forecasts, a development that could continue to pressure airline profit margins and ticket pricing strategies.

“Fuel forward expectations for the second quarter haven’t changed, but what has changed are expectations for the rest of the year,” Matt Woodruff, head of aerospace and defense/transports at CreditSights, told Global Finance. “[Fuel prices] will be higher for longer than we were thinking a month or two ago.”

‘Good Aircraft’ Grounded

On April 23, former President Donald Trump publicly mused about rescuing Spirit Airlines, calling the carrier “virtually debt-free” and noting its “good aircraft, good assets.” He suggested buying the airline and potentially profiting when oil prices decline, adding, “I’d love to be able to save those jobs … I like having a lot of airlines, so it’s competitive.”

The plan never materialized, and Spirit shut down on May 3. Travelers remained stranded as jet fuel prices hit unprecedented highs amid the Iran war, now more than two months old.

“We regret to inform you that all Spirit Airlines flights have been canceled, effective immediately,” read a notice when opening the carrier’s app.

The ripple effects were felt beyond Dania Beach, Florida, where the airline is based. Spirit operated international flights throughout Latin America, the Caribbean, and Central America, including Colombia, Mexico, the Dominican Republic, Jamaica, Peru, Costa Rica, and Aruba. Its sudden closure left 17,000 direct and indirect employees without work.

The Trump administration and Treasury Secretary Scott Bessent quickly blamed Biden-era opposition to the much-debated Spirit/JetBlue Airways Corp. merger. The two carriers had a $3.8 billion deal in the works, which Bessent argued “would have given them much more resiliency.” Spirit filed for bankruptcy protection in November 2024, saddled with more than $2.5 billion in losses since 2020.

But no airline, not even one with low-cost appeal, is immune to the whims of the global oil market.

At the time of Spirit’s first bankruptcy under Biden, U.S. airlines were paying an average of $2.31 per gallon for jet fuel. Under Trump, that figure has nearly doubled, with the Argus US Jet Fuel Index reporting $4.26 per gallon as of May 4.

Consider the Warnings

Brent crude prices are hovering above $100 per barrel, while regional conflicts near the Strait of Hormuz—through which a significant share of the world’s oil passes—continue to heighten supply concerns.

Fuel is often the largest single operating expense for airlines. Delta Air Lines, for example, disclosed in a March filing that its 2025 fuel costs accounted for 31.3% of its operating expenses. The company noted that a one-cent increase in jet fuel adds about $40 million to its fuel tab for the year.

Delta paid $2.7 billion for fuel in the first quarter of 2026.

The airline produces some of its own jet fuel, which means it avoids paying full market prices for fuel conversion, shielding it from the worst of the “crack spread” costs, Woodruff said. “They’re getting a benefit relative to everyone else, but they’re still feeling it.”

Cuts are underway. Starting May 19, the company will no longer offer food or drinks on flights under 349 miles.

Other carriers are responding to the latest volatility by raising fares, canceling routes, rerouting aircraft to avoid restricted airspace, and reconsidering expansion plans. Airfares have increased five times since the war in Iran began, with a sixth hike underway late last month, according to the Wall Street Journal.

“The routes that aren’t doing well, those are going first,” Woodruff said. “Regional jets, for example, often don’t make much money — those are, for sure, a target.”

What’s Next

Spirit isn’t the only airline feeling the effects of this new norm. Its former suitor, JetBlue, is reevaluating routes that may no longer cover rising fuel, airport, and maintenance costs. Delta is canceling hundreds of flights, while international carriers — including Paris-based Air France, Cologne-based Lufthansa, and Cathay Pacific — are trimming routes to protect margins.

This shift stands in stark contrast to late 2024, when Delta CEO Ed Bastian welcomed the incoming Trump administration as a “breath of fresh air.” Through much of 2025, that optimism seemed justified, as major U.S. carriers forecast continued profitability into 2026.

And that might still be the case despite the war in Iran rattling global energy markets and upending long-held assumptions about fuel stability and travel demand.

Each airline is now telling a two-sided story about how robust demand is while also raising fares. United Airlines’ fare numbers, for example, will be 15% to 20% higher than last year. 

Whether consumers will tolerate such a price hike remains to be seen. “Ultimately, consumers are going to decide what they are willing to pay and what they aren’t, not a formula,” Southwest CEO Bob Jordan told reporters in April.

Chevron CEO Mike Wirth echoed the concern, telling CBS’s Face the Nation on April 23 that instability in the Strait of Hormuz was likely to continue driving up energy costs.

Even the forward fuel curves today indicate that, even if the war ended today, costs wouldn’t normalize until well into next year, Woodruff said.

By 2027, airlines expect to offset most, if not all, of the recent fuel cost increases through higher fares, he added. But that outlook assumes forward fuel prices in the first quarter of 2027 will be lower than they are today. If they’re not, carriers could continue to face significant financial pressure.

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Hegseth’s Day 2 clash with Democrats in Congress over Iran war

Defense Secretary Pete Hegseth clashed with Democratic lawmakers in Congress for a second day Thursday, rejecting senators’ accusations that the Iran war was launched without evidence of an imminent threat and waged with no coherent strategy.

The three-hour hearing of the Senate Armed Services Committee mostly traced the well-worn positions of Republicans and Democrats on the conflict, Hegseth’s leadership and the ways in which President Trump has used the American military.

In his opening statements, Hegseth called Democratic lawmakers “reckless naysayers” and “defeatists from the cheap seats” who have failed to recognize the many successes of the U.S. military against the Islamic Republic.

Hegseth said Trump has had the courage “unlike other presidents to ensure that Iran never gets a nuclear weapon and that their nuclear blackmail never succeeds. We have the best negotiator in the world driving a great deal.”

Democrats peppered Hegseth with questions about his efforts to remake military culture, U.S. support for Ukraine and whether Trump would seek congressional approval for the war. The Defense secretary said the ceasefire postpones the deadline for securing such approval.

Hegseth seemed to emerge with solid Republican support, though a few GOP senators asked about the dismissal of a top Army general and sought assurances that the Pentagon is doing everything possible to prevent civilian deaths.

The hearing was convened to discuss the Trump administration’s 2027 military budget proposal, which would boost defense spending to a historic $1.5 trillion. Hegseth and the chairman of the Joint Chiefs of Staff, Gen. Dan Caine, emphasized the need for more drones, missile defense systems and warships.

Top Democrat argues that war has left U.S. in worse position

Sen. Jack Reed, the committee’s ranking Democrat, argued that the war has left the U.S. in a worse strategic position, with 13 American troops killed, more than 400 injured and equipment destroyed.

The Strait of Hormuz remains closed, sending fuel prices skyrocketing, Reed said. Iran still has enriched uranium and retains enough combat effectiveness to keep the conflict locked in an impasse, while Iran’s hard-line government is still in charge.

“I am concerned that you have been telling the president what he wants to hear instead of what he needs to hear,” Reed said. “Bold assurances of success are a disservice to both the commander in chief and the troops who risked their lives based on them.”

Reed also lambasted Hegseth for his firing of top military leaders and suggested the Defense secretary had failed to recognize the accomplishments of women and people of color in the military. Reed noted that 60% of about two dozen officers fired by Hegseth have been female or Black.

Hegseth said that any firing is based on performance and that previous Pentagon leaders “were focused on social engineering, race and gender in ways that we think were unhealthy for the department.”

Republican chairman offers warmer welcome

Hegseth received a warmer welcome from Sen. Roger Wicker, the Republican chairman of the committee, and other GOP lawmakers. Wicker kicked off the hearing by noting that the U.S. is in the most dangerous security environment since World War II.

Through the war against Iran, Trump “has worked to remove the regime’s conventional military capabilities and force it back to the table for a permanent solution,” Wicker said.

He also commended the budget proposal for 2027, saying it “is chock-full of important programs and initiatives that are absolutely necessary to secure American interest in the 21st century.”

Sen. Deb Fischer, a Republican from Nebraska, praised Hegseth’s statement on the need for nuclear deterrence as well as the development of Trump’s Golden Dome missile defense program.

“For years, this committee has known that we must improve our ability to defend our homeland against a wider variety of threats,” Fischer said.

Sen. Tom Cotton, an Arkansas Republican, asked Hegseth whether he ever lied to Trump, pushing back against Reed’s claim that Hegseth tells the president what he wants to hear.

“I only tell the truth to the president,” Hegseth said.

Questions about civilian deaths

Senators also focused on civilian deaths in the Iran war and the Pentagon decision to hollow out a congressionally mandated office set up specifically to reduce civilian casualties.

The Associated Press has reported that growing evidence points to U.S. culpability for a deadly strike on an Iranian elementary school adjacent to a Revolutionary Guard base that killed more than 165 people, including children.

Democratic Sen. Kirsten Gillibrand of New York asked Hegseth, “What is your response to targeting that has resulted in the destruction of schools, hospitals, civilian places? Why did you cut by 90% the division that’s supposed to help you not target civilians?”

Hegseth responded that the Pentagon has an “ironclad commitment” to do more than other countries to prevent civilian deaths.

A day earlier, he battled with Democrats during a nearly six-hour House Armed Services Committee hearing, where he faced sharp questioning over the war’s costs in dollars, lives and diminishing stockpiles of crucial weapons.

Hegseth said Wednesday that the strike on the Iranian school remains under investigation.

War powers resolutions fail to pass

Democrats have called the conflict a costly war of choice that lacks congressional approval or oversight. But they have failed to pass multiple war powers resolutions that would have required Trump to halt the conflict until Congress authorizes further action.

Under the War Powers Act of 1973, Congress must declare war or authorize use of force within 60 days — a deadline that arrives Friday. The law provides for a potential 30-day extension, but the Republican administration has not indicated publicly whether Trump will seek it.

Sen. Tim Kaine, a Democrat from Virginia, asked Hegseth whether Trump will seek congressional authorization or ask for the 30-day extension. The Defense secretary said the clock pauses during a ceasefire. Kaine disagreed based on his reading of the law.

The Trump administration is in “active conversations” with lawmakers on addressing the 60-day timeline, according to a White House official, who spoke on condition of anonymity to discuss private deliberations.

Finley, Groves and Kinnard write for the Associated Press. Kinnard reported from Columbia, S.C. AP writer Seung Min Kim contributed to this report.

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Oil temporarily surges above $126 per barrel as Iran war seemingly intensifies

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Brent crude, the international standard for oil prices, jumped by over 7% during early trading on Thursday, touching $126 per barrel, the highest intraday level since 2022 when Russia initiated the full-scale invasion of Ukraine.


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The US benchmark crude, WTI, also rose more than 3% and hit over $110 per barrel.

At the time of writing, prices have corrected slightly with the front month contract for Brent trading at around $122 per barrel and WTI at roughly $108.5.

Prices are now the highest they have been since the start of the Iran war.

The surge in oil prices is a direct consequence of stalled negotiations over the reopening of the Strait of Hormuz, the absence of a clear path toward ending the war and a seemingly increased chance of US-Israeli military action returning.

US President Donald Trump is set to meet with the head of the US Central Command, Admiral Brad Cooper, on Thursday and receive a briefing on new military options for action in Iran, according to Axios which cites two unnamed people.

The meeting signals the potential for fresh escalation in the Middle East as the resumption of combat operations is reportedly “seriously under consideration” and oil markets have reacted swiftly to the news.

A ceasefire has held since early April but recent negotiating efforts have fallen flat with the two sides refusing to meet. Meanwhile, the US and Iran both maintain their blockade of the vital Strait of Hormuz.

US Central Command has also reportedly asked for hypersonic missiles to be sent to the Middle East, which would mark the first time the US army has deployed that type of weapon.

The persistent blockade of ports and the threat of expanded combat have fundamentally reshaped market expectations.

A shifting landscape for OPEC and global supply

The spike in prices is occurring against a backdrop of significant structural change within the global oil hierarchy.

Earlier this week, the United Arab Emirates officially withdrew from the Organisation of the Petroleum Exporting Countries (OPEC) and its wider alliance (OPEC+), a move the nation claimed was necessary to prioritise its own national interests.

Under normal market conditions, the exit of a major producer from the cartel might be expected to signal a potential increase in supply or a decrease in price stability.

However, the sheer scale of the Iran war has rendered the UAE’s departure secondary in the minds of traders.

Despite the UAE’s exit, which was expected to potentially weaken OPEC’s grip on production quotas, prices have continued their upward trajectory.

This suggests that the “war premium” currently dominates all other market fundamentals.

Investors are currently less concerned with the internal politics of oil-producing nations and more focused on the immediate physical absence of Iranian crude, suspended shipping routes through the Strait of Hormuz and the threat to regional infrastructure.

However, the transition of the UAE to an independent actor still highlights a growing fragmentation in global energy governance at a time when the world’s energy security is at its most vulnerable.

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Skeptical Democrats confront Hegseth about Iran war for the first time since conflict started

Making his first appearance before Congress since the Trump administration went to war in Iran, Defense Secretary Pete Hegseth faced withering questioning from skeptical Democrats Wednesday over a costly conflict being waged without congressional approval.

The war has cost $25 billion so far, according to Pentagon numbers presented to the House Armed Services Committee during the contentious hearing, ostensibly focused on the administration’s 2027 military budget proposal, which would boost defense spending to a historic $1.5 trillion.

While Republicans focused on the details of military budgeting and voiced support for the operation, Democrats pivoted to the ballooning costs of the war, the huge drawdown of critical U.S. munitions and the bombing of a school that killed children. Some lawmakers also questioned President Trump’s dealings with allies and his shifting justification for the conflict.

Hegseth dismissed the criticism as political and rebuked lawmakers who pushed him for answers.

“The biggest challenge, the biggest adversary we face at this point are the reckless, feckless and defeatist words of congressional Democrats and some Republicans,” Hegseth said.

Democrats press about reasons for war

Wednesday’s hearing stretched nearly six hours as Democrats and some Republicans questioned Hegseth over the war and his ouster of several top military leaders.

In one tense exchange, Hegseth told Rep. Adam Smith (D-Wash.) that Iran’s nuclear facilities were obliterated in a 2025 attack by the U.S., prompting Smith to question the Trump administration’s reasoning for starting the Iran war less than a year later.

“We had to start this war, you just said 60 days ago, because the nuclear weapon was an imminent threat,” said Smith, the ranking Democrat on the committee. “Now you’re saying that it was completely obliterated?”

Hegseth responded by saying that Iran “had not given up their nuclear ambitions” and still had thousands of missiles.

Smith said the war “left us at exactly the same place we were before.”

Democrats accused Hegseth of misleading Americans about the reasons for the conflict and said rising gas prices are now threatening the pocketbooks of millions of people in the U.S.

“Secretary Hegseth, you have been lying to the American public about this war from day one and so has the president,” said Rep. John Garamendi of Walnut Grove, who called the war “a geopolitical calamity,” a “strategic blunder” and a ”self-inflicted wound to America.”

Hegseth blasted Garamendi’s remarks.

“Who are you cheering for here?” he asked the lawmaker. ”Your hatred for President Trump blinds you” to the success of the war.

Hegseth defends firings of officers

The Defense secretary faced intense questions from Rep. Chrissy Houlahan (D-Pa.) about his decision to oust the Army’s top uniformed officer, Gen. Randy George, one of several top military officers to be dismissed since Trump’s reelection.

Houlahan said George was deeply respected by both members of the military and Congress and asked why Hegseth fired him. Hegseth’s response that “new leadership” was needed failed to satisfy Houlahan.

“You have no way of explaining why you fired one of the most decorated and remarkable men —” Houlahan began before Hegseth interrupted her. “We needed new leadership,” he repeated.

The Pentagon announced this month that Navy Secretary John Phelan was stepping down. Hegseth previously removed Adm. Lisa Franchetti, the Navy’s top uniformed officer, and Gen. Jim Slife, the Air Force’s No. 2 leader, while Trump fired Gen. Charles “CQ” Brown Jr. as chairman of the Joint Chiefs of Staff.

Republican Rep. Don Bacon of Nebraska said that while Hegseth is empowered to make personnel changes, he shares what he called “bipartisan concern” about the firings.

“We had a huge bipartisan majority here that had confidence in the Army chief of staff and the secretary of the navy,” Bacon said. “And I would just point out it may be constitutionally right … but it doesn’t make it right or wise.”

Hegseth has said the changes are part of building a “warrior culture” at the Pentagon.

Republican Rep. Nancy Mace of South Carolina defended Hegseth’s personnel moves, saying he is “trying to innovate and trying to change the way we do business.”

“I’m glad that you’re firing people,” Mace said. “There are people there that are getting in your way. They need to go.”

Republicans back Trump on Iran

During the extended hearing, Hegseth detailed plans to increase pay for service members and upgrade munitions while also announcing that, as of Tuesday, the Pentagon had authorized $400 million in military aid for Ukraine in its fight against Russia.

But the debate and the questions were dominated by the war in Iran.

While a fragile ceasefire is now in place, the U.S. and Israel launched the war Feb. 28 without congressional oversight. House and Senate Democrats have failed to pass multiple war power resolutions that would have required Trump to halt the conflict until Congress authorizes further action.

Republicans say they back Trump’s wartime leadership, for now, citing Iran’s nuclear program, the potential for talks to resume and the high stakes of withdrawal. Still, GOP lawmakers are eager for the conflict to end, and some are eyeing future votes that could become an important test for the president if the war drags on.

Democrats questioned Hegseth over the war’s economic impact and rising gasoline costs, noting Trump’s promise to lower consumer costs. Hegseth responded by citing the threat posed by Iran.

“What is the cost of Iran having a nuclear weapon that they wield?” he said.

Republicans expressed support for Trump’s decision to strike Iran, including Mace, who in late March had expressed concerns about the justification for the war. “The longer this war continues, the faster it will lose the support of Congress and the American people,” she wrote in a social media post.

On Wednesday, Mace noted her past concerns but said she is “impressed with where we are today.” She told Hegseth: “Everything I have seen, you have surpassed all of my expectations.”

Iran’s closing of the Strait of Hormuz, a vital shipping corridor for the world’s oil, has sent fuel prices skyrocketing and posed problems for Republicans ahead of the midterm elections. The U.S. has imposed a naval blockade of Iranian shipping and three American aircraft carriers are in the Middle East for the first time in more than 20 years.

The countries appear locked in a stalemate. Trump told Axios on Wednesday that he is rejecting Iran’s proposal to reopen the Strait of Hormuz in exchange for lifting the U.S. blockade.

Finley, Groves, Klepper and Toropin write for the Associated Press.

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Oil prices rise despite UAE exit from OPEC as Iran war ceasefire hangs in balance

Oil markets face renewed instability following the United Arab Emirates’ formal exit from the Organisation of the Petroleum Exporting Countries (OPEC) and its wider alliance (OPEC+), announced on Tuesday and taking effect on Friday.


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The move, which ends decades of membership, comes as the global economy continues to reel from the ongoing war with Iran and the blockade of the Strait of Hormuz remains in place.

Investors are currently weighing the potential for higher future output from the UAE against the immediate and acute risks posed to global supply routes, as well as the increased chances that more countries drop out of OPEC and OPEC+.

Following the announcement, markets reacted swiftly as the potential for oversupply from the UAE was priced in. Oil prices fell by between 2% and 3%, particularly in futures contracts a couple of months ahead.

However, the move was just as quickly offset by the risk premium associated with the Middle East conflict and the current halt to US-Iran negotiations.

At the time of writing, US benchmark crude, WTI, is trading above $105 a barrel, while Brent crude, the international standard, is over $112. Both prices are around 4% higher on Wednesday from the UAE announcement low.

The UAE’s decision follows years of simmering tension between Abu Dhabi and Riyadh over production quotas. The UAE has invested over $150 billion (€128bn) in the state-owned Abu Dhabi National Oil Company (ADNOC) to expand its capacity to five million barrels per day.

However, under OPEC’s restrictive framework, much of this capacity remained underutilised, now prompting the government to prioritise its national interest.

The departure of the group’s third-largest producer is a significant blow to the cohesion of the 60-year-old organisation. Maurizio Carulli, global energy analyst at Quilter Cheviot, noted the limitations this exit places on the remaining members.

“Until tanker traffic through the Strait of Hormuz is safe again, OPEC’s ability to stabilise prices is sharply constrained, while US producers have gained outsized influence,” Carulli explained.

While the UAE has pledged to bring additional production to the market in a “gradual and measured” manner, the sudden lack of coordination within OPEC has introduced a new layer of uncertainty.

For the UAE, the blockade served as a final catalyst for its exit. With its primary export route under threat, Abu Dhabi has sought the diplomatic flexibility to forge independent security and trade partnerships outside the traditional cartel structure.

Despite the geopolitical turmoil, energy equities have remained resilient.

According to Carulli, “integrated majors such as BP, Shell, TotalEnergies, ENI, Chevron and ExxonMobil are benefitting from a price uplift that could add 5-10% to operating cash flow for every $10 increase in oil prices.”

Standoff over the Strait of Hormuz

In a separate but related development, the security situation in the Middle East remains precarious despite a fragile ceasefire. Iran has recently offered a ten-point proposal to reopen the Strait of Hormuz.

In exchange for restoring maritime traffic, Tehran is demanding a full withdrawal of the US naval blockade and an end to the current hostilities.

US President Donald Trump, who recently extended the two-week ceasefire mediated by Pakistan, described the latest Iranian offer as “much better” than previous iterations but still did not accept the terms.

Shortly after, Trump posted on social media claiming that Iran is in a dire and desperate condition with no leverage to negotiate.

Washington continues to insist on a permanent settlement regarding Iran’s nuclear programme and an “unconditional” reopening of the waterway before sanctions are lifted.

The impact of this blockade on global energy security cannot be overstated.

“The prolonged closure of the Strait of Hormuz has removed roughly 12% of global oil supply from the market, according to the IEA, a bigger disruption than the Yom Kippur war, the Iran‑Iraq conflict, the invasion of Kuwait or even the fallout from Ukraine,” Carulli highlighted.

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UAE To Exit OPEC, Fracturing Powerful Gulf Oil Alliance

UAE exits OPEC, exposing Gulf rift over oil strategy, Iran policy, and market stability.

The United Arab Emirates’ announcement to leave OPEC on May 1 marks more than a policy shift: It signals the unraveling of a long-eroding Gulf consensus on oil, economic strategy, and Iran. The announcement comes on the heels of the Gulf Creators event in Dubai on April 27.

“Every Gulf state had its own policy of containment toward Iran, and all of those containment policies have failed,” senior Emirati official Anwar Gargash said at the event. “All our policies have failed miserably,” he added—a rare public admission of strategic exhaustion that underscores why Abu Dhabi is recalibrating its regional and energy posture.

That recalibration now includes leaving the Organization of the Petroleum Exporting Countries. The UAE joined the bloc in 1967, when Abu Dhabi—now the federation’s capital—emerged as an oil producer. In announcing its exit from both OPEC and OPEC+ (a larger coalition that includes Russia), the UAE said the move aligns with its long-term strategy and will allow it to increase output in line with market demand gradually.

Widening Divide

At the heart of the split is a widening divide between Riyadh and Abu Dhabi. Oil policy has long been a source of tension between the two Gulf powerhouses. The UAE’s exit now leaves Saudi Arabia to shoulder a heavier burden in stabilizing global oil markets.

The UAE isn’t the only country to abandon OPEC cohesion. Qatar exited OPEC in 2019, breaking with the Saudi-led bloc amid an ongoing boycott.

Angola and Ecuador also left in recent years. The UAE’s similar move underscores that politics continues to shape the cartel, even as it focuses on stabilizing oil prices through production decisions. And because of its status as a major producer, the UAE’s exit is structurally more consequential for global supply management.

Experts say the UAE produced about 3.4 million barrels per day—about 13% of OPEC’s total output—and had the capacity to reach 5 million barrels per day before the US-Iran war began on February 28.

In effect, OPEC is not just losing a member—it is losing a key balancing force at a moment when geopolitical instability and oil market fragmentation are accelerating.

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EU leaders back US president after attack

Good morning from Brussels.


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Events in Washington DC this weekend caught Brussels off guard as officials were enjoying the start of spring.

A 31-year-old man named as Cole Tomas Allen has been arrested after opening fire Saturday evening outside the reception hall of the annual White House Correspondents’ Association (WHCA gala), which Donald Trump was attending for the first time. The White House says it was a targeted attempt at the life of Trump and his officials.

Fortunately, no one was killed.

In Europe, EU leaders quickly voiced support for the US President, who had skipped the event for years before agreeing this time to attend, despite strained relations between the White House and the press corps under his second term.

“I just spoke to @POTUS Donald Trump to express my solidarity with him and @FLOTUS after the attempted attack,” European Commission President Ursula von der Leyen wrote on X. She added that “political violence has no place in our democracies”.

French President Emmanuel Macron called the incident “unacceptable”, while German Chancellor Friedrich Merz said: “We decide by majorities, not by the gun.”

Transatlantic tensions briefly faded, even as Reuters reported the US could seek to suspend Spain from NATO over its refusal to back the US and Israel’s war in Iran.

Spanish Prime Minister Pedro Sánchez played down the threat and joined EU leaders in condemning the attack. “Violence is never the answer,” Sánchez wrote on X. “Humanity will only move forward through democracy, coexistence and peace.”

On Sunday, Trump rejected any link between the armed intrusion at the WHCA dinner and the Middle East war. He said the incident would not “deter” him from “winning the war”.

Earlier in the weekend, Trump cancelled a trip to Pakistan planned for envoys Steve Witkoff and Jared Kushner, writing on social media: “Too much time wasted on traveling, too much work!” He added, referring to Iran: “There is tremendous infighting and confusion within their ‘leadership’.”

On his side, after going to Oman and Pakistan over the weekend, Iranian Foreign Minister Abbas Araghtchi landed in Russia to meet Vladimir Putin.

According to the Iranian news agency Fars, Tehran has sent, via Pakistan, written messages to Washington regarding its “red lines” in the negotiations.

After talks with French Foreign Minister Jean-Noël Barrot, Araghchi wrote on Telegram that he had briefed his French counterpart on ceasefire developments and ongoing diplomatic efforts “to end the imposed war”. He stressed “the importance of European countries playing a constructive role in this process”.

Meanwhile, in Lebanon, the situation remains fragile. Over the weekend, Israel and Hezbollah accused each other of violating the ceasefire.

The Shia Islamist political party and military organisation released several statements on Sunday saying its fighters targeted Israeli troops and positions in response to Israeli ceasefire violations and attacks on Lebanese villages.

On Sunday evening, Israeli Prime Minister Benjamin Netanyahu convened a group of ministers and senior security officials to discuss both Iran and the situation in Lebanon, according to local media. One option under consideration is escalating strikes against Hezbollah, including targeting areas beyond southern Lebanon.

At least 2,509 people have been killed and 7,755 injured in Lebanon since the start of Israeli strikes in early March, the country’s health ministry said.

Lebanon’s Minister for Displaced Persons, and Technology and AI, Dr. Kamal Shehadi told Euronews’ Europe Today that “the truce is not holding” but there are “clear signs that both sides are making an effort” to avoid escalation beyond the current level of violence.

Shehadi said the government’s most important leverage to help disarm Hezbollah is having the vast majority of the Lebanese people backing them and calling for Hezbollah to surrender its weapons to the Lebanese Armed Forces.

“The international community is supportive of Lebanon’s intention to control all the weapons on Lebanese territory. Now, that’s not enough, clearly, and so what we need to do is continue to put pressure on Hezbollah to get Hezbollah to accept and to relinquish its weapons, because the weapons today are only going to bring more retaliation from Israel,” Shehadi said. Watch the full interview here.

Meanwhile, Brussels is preparing for the visit of Péter Magyar, whose opposition party won Hungary’s 12 April election.

“I will travel to Brussels on Wednesday for informal talks with the President of the European Commission on unlocking EU funds,” he wrote on X. “We have no time to waste.”

A honeymoon now begins between Budapest and Brussels after 16 years of tension under outgoing Prime Minister Viktor Orbán, who announced on Saturday he won’t take up his seat in parliament after his Fidesz party suffered a heavy loss in the 12 April vote.

Meanwhile, incoming Prime Minister Magyar said on Saturday he had information that wealthy figures linked to Orbán’s outgoing government were moving assets abroad and called on authorities to detain fleeing oligarch families.

“I am aware that Hungary’s National Tax and Customs Administration (NAV), based on reports from banks, has suspended several high-value transfers linked to Antal Rogán’s circle on suspicion of money laundering. I call on the leadership of NAV to immediately freeze these stolen funds,” Magyar wrote on X, referring to the outgoing top minister under Orbán’s administration.

On 40th Chernobyl disaster anniversary, Zelenskyy accuses Russia of committing ‘nuclear terrorism’

As Ukrainians marked the 40th anniversary of the Chernobyl disaster, Ukrainian President Volodymyr Zelenskyy accused Russia of “nuclear terrorism”, alleging it repeatedly sends attack drones over the site.

On social media, Zelenskyy warned that Russia’s invasion of Ukraine has once again pushed the world to “the brink of a man-made disaster”.

He also said drones now regularly fly over Chernobyl. “The world must not allow this nuclear terrorism to continue, and the best way is to force Russia to stop its reckless attacks.”

Russian strikes on Ukraine continued through the anniversary, with Moscow launching 144 drones in a barrage during the night between Saturday and Sunday.

Read the full story by Lucy Davalou.

Germany suspects Russia of Signal phishing attacks targeting politicians

The German government believes Russia is behind a new phishing campaign targeting lawmakers and senior officials via the Signal messaging app.

The incident is the latest in Moscow’s hybrid war targeting Europe.

Victims are said to receive messages posing as Signal support, prompting them to enter a PIN, click a link or scan a QR code. If successful, the scam gives hackers access to messages, group chats, and any photos or files shared by the user.

Media reports say at least 300 accounts belonging to political figures were compromised. Civil servants, diplomats, military personnel and journalists were also targeted.

Vice-President Andrea Lindholz (CSU) has ruled out banning Signal, saying MPs should be free to decide how they communicate.

You can read the story of Sonja Issel & Evelyn Ann-Marie Dom here.

More from our newsroom

Zelenskyy says he is ready to meet Putin in Azerbaijan. On a visit to Azerbaijan, Ukrainian President Volodymyr Zelenskyy said he is ready to meet Vladimir Putin there, as US-led diplomatic talks have stalled in recent weeks. Read **Sasha Vakulina’**s story here.

Kenya’s Sabastian Sawe becomes first person to run marathon in less than two hours. In London, Kenya’s Sabastian Sawe made history by becoming the first athlete ever to break the two-hour barrier in the marathon. Jesús Maturana has the full story.

Today we are also keeping an eye on

– European Parliament plenary session kicks off in Strasbourg. A debate on the “Importance of consent-based rape legislation in the EU” is scheduled later today.

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Contributor: Carlson’s cautious apology does little to repair Trumpism’s damage

When you break a promise as clear as “No new wars,” you shouldn’t be surprised when even your most loyal supporters revolt. And that’s exactly what is happening to President Trump.

One such disillusioned supporter is Tucker Carlson — who on a recent podcast with his brother Buckley admitted, in essence, “My bad.”

“You wrote speeches for him. I campaigned for him. I mean, we’re implicated in this, for sure,” Tucker Carlson said during the conversation.

“In real ways, you and me, and millions of people like us, are the reason this is happening right now,” Calson confessed, referring to the Iran war. “We’ll be tormented by it for a long time. I will be, and I want to say I’m sorry for misleading people, and it was not intentional.”

Having worked for Carlson for six years at the Daily Caller, I’ve always found him intelligent and funny and generous, even as I have profoundly differed with him on a variety of issues throughout the Trump era.

It did my heart good to hear him accept some responsibility for what Trump has wrought.

A lot of people were complicit in boosting Trump, and some of them have even subsequently criticized him for various sins (failing to release the Epstein files, going to war with Iran, etc.). But this is the first time I can recall anyone of this stature explicitly apologizing for helping elect Trump. And that warrants a certain amount of respect.

Still, let’s be clear-eyed about what Carlson is — and isn’t — saying here. Specifically, it’s worth noting that the apology doesn’t extend to validating those of us who opposed Trump from the beginning.

In fact, it almost can’t.

Doing that would require the confessor to reinterpret not just Trump’s presidency, but also the entire ecosystem that made supporting Trump a viable option in the first place.

It would mean admitting that the framework he used to evaluate Trump was flawed, not just the outcome.

That would end up being perceived as an indictment on the broader Republican electorate — and on Carlson’s worldview and judgment — not just on Trump’s recent performance or (even more conveniently) the notion that Trump has changed or was co-opted by Israel (or whomever) since 2024.

It’s a much bigger ask than saying, “I regret this specific result.”

Specifically, Carlson is not conceding that the “Never Trump” crowd got it right — which is what those of us who have spent a decade opposing Trump (with little fanfare) have been dying to hear for a decade (even more so than “I’m sorry.”)

This is an important distinction, partly because it means that, although Carlson is now a convenient ally in the “resistance,” he is not opposing Trump for the same reasons that most Democrats or Never Trump conservatives oppose Trump.

If you put aside Trump’s decision to go to war with Iran, the Carlsons’ second-biggest criticism of Trump (based on their two-hour-long podcast) is his failure to more vigorously defend the Jan. 6 Capitol rioters.

That’s right. It’s not that he sicced immigration enforcers on immigrants and that they subsequently killed two American citizens. It’s not that DOGE fired lots of good people. It’s not that this president tried to use the Department of Justice to seek vengeance on his political rivals. It’s that Trump — the person who pardoned these people — wasn’t aggressive enough in defending the criminals who stormed the U.S. Capitol while trying to overturn the 2020 election results.

And while there’s no reason to doubt Carlson’s remarks are sincere (he has been a vocal opponent of war with Iran) and meaningful (he’s an influential figure), his comments may also signal something else: a recognition that opportunity awaits.

Consider this: Trump’s political standing is in deep trouble (Trump’s approval rating is down to 33%, according to a new AP-NORC poll).

What is more, Trump’s fading fortunes aren’t just isolated to Trump. As always, there is collateral damage: JD Vance.

Once seen as Trump’s obvious heir, Vance now finds himself in a difficult position, defending the war in Iran and attacking the pope, while simultaneously releasing a book about his Catholic conversion.

In that sense, Carlson’s apology could be less a grudging epiphany than a strategic recalibration. It acknowledges that Trump has gone off the rails but stops short of examining why it was destined to go wrong in the first place.

Carlson gets close to the answer when he tells his brother, “there were signs of low character. We knew that,” but then dismisses it by saying “there are tons of people of low character who outperform their character.”

Without deeper reflection, this apology risks becoming just another pivot — one that has as much to do with positioning as it does with repentance.

And that would be a shame.

It’s easy to regret an outcome. It’s much harder to interrogate the instincts that led you (and tens of millions of Americans) to enable it.

Apologies like Carlson’s won’t close the chapter on this long national nightmare.

Matt K. Lewis is the author of “Filthy Rich Politicians” and “Too Dumb to Fail.”

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Some key groups moved toward Trump in 2024. Here’s what they think now, according to AP-NORC polls

Many of the groups that helped elect Donald Trump as president again are deeply unhappy with his performance, according to a new AP-NORC poll.

Trump’s return to the presidency was fueled by a wide-ranging coalition that built on his loyal base of supporters. Now that Trump has been in the White House for more than a year, the survey of more than 2,500 U.S. adults from The Associated Press-NORC Center for Public Affairs Research finds that many key groups — including Hispanic adults, younger adults and men — are increasingly dissatisfied with his presidency.

The poll was conducted from April 16 through Monday, as oil prices fluctuated and Americans spent more at the gas pump.

It’s a particularly bad moment for Trump, a Republican whose economic approval slumped over the past month as the Iran war drives prices higher. But AP-NORC polls show that discontent has been building among critical segments of the population over the past year.

Trump’s overall approval among Hispanic adults has fallen 16 percentage points since March 2025, and his support has declined by 9 percentage points among men.

And while Trump’s base is still largely behind him — most Republicans approve of his performance — there are signs that his second term may not be living up to their expectations.

Here’s what polling shows about Trump’s current status with four important groups:

Hispanic adults

Hispanic Americans have grown increasingly discontented with Trump over the past year.

About one-quarter of Hispanic adults approve of how he’s handling the presidency in the new poll, down from about 4 in 10 in March 2025.

That decline has been visible since late last year — suggesting that it’s not just the war in Iran or recent spikes in gas prices that are leaving this group unhappy.

Trump’s restrictive immigration approach may be playing a role. Only about one-quarter of Hispanics approve of his handling of immigration, down from 36% at the beginning of his term.

His immigration tactics appear to be particularly unpopular among younger Hispanics — a group with which he made gains in 2024. Only 18% of younger Hispanic adults approve of his performance on immigration, compared with 40% of Americans overall.

There is also broad discontent about the state of the U.S. economy among Hispanics. Only about one-quarter of Hispanic adults approve of how Trump is handling that issue, and about 2 in 10 say they approve of his approach to the cost of living. Few Hispanic adults, about 2 in 10, describe the nation’s economy as “good.”

Young adults

Trump’s overall approval with Americans under age 45 has slid over the past year, falling from 39% in March 2025 to 28% in the latest poll.

Younger women have a particularly dim view of Trump’s handling of the economy.

Only about 2 in 10 women under age 45 approve of how Trump is handling the economy, including only 7% of younger Hispanic women who approve of his economic approach. More young men, about 3 in 10, approve of him on this issue.

Trump’s struggles among young adults extend to other groups, too. Only about one-third of white adults under age 45 approve of his overall performance, compared with 45% of white adults age 45 or older.

A downtick among men

Trump made broad appeals to men throughout his 2024 campaign, and most male voters backed Trump in the presidential election over Democrat Kamala Harris. In particular, he made slight but significant gains with Black and Hispanic men, who were drawn by his vows to revitalize the economy.

Since he reentered office, though, American men have become slightly less likely to approve of his performance, declining from 47% at the start of his second term to 38% in the most recent poll.

There are signs that Black men, in particular, aren’t seeing Trump’s economic promises pan out. Black men are more likely than white or Hispanic men to disapprove of Trump’s approach to the presidency, as well as his approach to the economy, the cost of living and Iran. Only about 1 in 10 Black men say they approve of how Trump is handling the cost of living, and roughly 2 in 10 approve of how he’s handling the economy.

Hispanic men, too, have a relatively dim view of Trump’s overall performance. About 3 in 10 approve of how Trump is handling the presidency, regardless of their age. That support is stronger among white men, with about half approving of Trump.

While young Republicans are frustrated, MAGA still backs Trump

Trump has benefited from Republicans’ loyalty for years, but there are recent signs of frustration even within his base.

Roughly two-thirds of Republicans approve of Trump’s job performance. That is down slightly from 82% near the start of his second term and is generally in line with the GOP low point from his first term.

But only about half of Republicans overall approve of Trump’s approach to the cost of living, and a majority of Republicans under age 45 disapprove of him on that issue.

Trump is still buoyed by the support of his MAGA base, even as he faces backlash from conservative media figures on some of his recent actions in Iran.

About 9 in 10 MAGA Republicans — those who consider themselves supporters of the “Make America Great Again” movement — approve of Trump’s job performance, and a similar share approve of his handling of Iran.

It’s a good sign for Trump that his most robust supporters are still in his corner, but not all Republicans identify with MAGA. About half of Republicans, 54%, say they consider themselves MAGA supporters.

Among non-MAGA Republicans, Trump’s approval is much lower, at 44%.

Sanders and Thomson-Deveaux write for the Associated Press. The AP-NORC poll of 2,596 adults was conducted April 16-20 using a sample drawn from NORC’s probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for adults overall is plus or minus 2.6 percentage points.

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UK inflation hits 3.3% as Iran war drives energy costs higher

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The cost of living in the UK accelerated throughout March, propelled by a significant increase in petrol and diesel prices following the outbreak of the Iran war.


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According to the Office for National Statistics, the annual consumer price inflation rate moved to 3.3% from 3% the previous month, a shift that matched the forecasts.

This inflationary pressure is largely attributed to an 8.7% monthly jump in motor fuel costs, which represents the sharpest rise seen since the summer of 2022, following Russia’s full-scale invasion of Ukraine.

Beyond the petrol stations, the fallout from higher energy prices has trickled down into airfares and food supplies, complicating the economic landscape for the government and the Bank of England.

UK Treasury chief Rachel Reeves noted that while the conflict is not a domestic one, it is directly pushing up bills for families and businesses across Britain.

Lindsay James, an investment strategist at Quilter, observed that “this morning’s inflation data showed CPI creeping back up to 3.3%, confirming that price pressures are re-accelerating rather than fading away since the outbreak of the war in Iran.”

While international markets have shown some signs of recovery in equity prices, the physical market for oil delivery into Europe remains under immense strain.

Experts suggest that a swift reopening of the Strait of Hormuz is the only viable path to unwinding the current inflationary trend, yet the situation remains volatile and unpredictable.

The Bank of England’s policy dilemma

The timing of this inflation surge is particularly problematic because it coincides with a period of cooling in the domestic economy.

Recent data from the labour market indicates that payrolled employment is falling and economic inactivity is on the rise, while wage growth has started to ease.

For the average British worker, the combination of rising essential costs and stagnating earnings growth creates a challenging environment for real purchasing power.

As for the Bank of England, this sudden spike in prices has disrupted the projected path of beginning to lower borrowing costs this spring.

Prior to the escalation of the Iran war, there was a growing consensus that the central bank would reduce its main interest rate from 3.75% as inflation appeared to be heading back toward the official 2% target.

However, with inflation now expected to potentially hit 4% in the coming months, the Monetary Policy Committee faces a much more difficult decision during its meeting next week.

There is a growing debate among economists regarding whether traditional interest rate hikes are the correct tool to address this specific crisis.

According to James “a rise in rates risks misdiagnosing the problem. This inflationary pulse is being driven by supply disruption, not excess demand. Higher interest rates will do nothing to increase the flow of oil or other goods from the Middle East.”

This sentiment suggests that the Bank of England may choose to maintain its current stance, keeping rates on hold while monitoring whether these price increases begin to manifest in higher wage demands across the broader economy.

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S&P 500 and Nasdaq hit new all-time highs despite Iran war effects

The benchmark US equity indices surged to new territory entering price discovery, reflecting a market that appears to be looking past immediate geopolitical risks in favour of potential de-escalation and corporate strength.


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On Wednesday the S&P 500 closed 0.8% higher at 7,022 points, up on the day and surpassing its previous peak from January of this year.

The S&P 500 is now 11% higher since it bottomed on 30 March and after it first dropped 9% during last month.

The Nasdaq Composite also posted a record, rising 1.6% to over 24,000 points while the Dow Jones Industrial Average edged 0.15% lower and continues significantly below its all-time high.

The advance comes despite persistent headwinds.

Shipping through the Strait of Hormuz, a critical chokepoint for roughly one-fifth of the global oil supply, has been severely disrupted since late February following Iranian actions and a subsequent US naval blockade.

Traffic has dropped sharply, with Iran declaring the strait closed to vessels linked to the US, Israel and their allies.

The US Central Command also confirmed its blockade of Iranian ports took full effect earlier this week, stating that “ten vessels have now been turned around and ZERO ships have broken through since the start of the US blockade on Monday”.

Oil prices, while easing in the last two weeks, remain elevated.

At the time of writing, Brent crude stands at around $96.5 per barrel and WTI at $92.5, still well above pre-war levels and contributing to inflationary concerns.

The International Monetary Fund has responded by lowering its global growth outlook. In its latest World Economic Outlook, released on Monday, the IMF cut the 2026 forecast to 3.1% from 3.3% previously projected, citing energy price spikes and supply disruptions.

Headline inflation is now seen at 4.4% for the year, under a reference scenario assuming a short-lived conflict, with risks of even weaker growth and higher prices if tensions escalate and prolong.

The modest decline in energy prices followed reports that the two-week ceasefire is holding and that fresh talks between the US and Iran could resume soon.

US President Donald Trump also indicated that negotiations for lasting peace might restart by the end of the week.

Investors appear to be pricing in an eventual reopening of the Strait of Hormuz and a contained negative impact of the war in general.

Speaking to Euronews, Alan McIntosh, chief investment officer of Quilter Cheviot Europe, explained that “although the first round of talks led to no agreement, a likely extension of the ceasefire gives optimism that an early resolution can be reached”.

“Assuming a fairly swift end to hostilities and a resumption of oil shipments, the economic damage to global inflation and growth should be fairly limited,” he added.

Why US indices defy the odds

Analysts point to several factors behind the market resilience.

Hopes of a swift end to hostilities have encouraged risk-taking, while corporate America is showing strength. Bank executives highlighted a strong US consumer and a healthy pipeline for deals and initial public offerings.

Earnings expectations for the first quarter have been revised higher, with S&P 500 companies now forecast to report combined profits of over $605 billion (€513bn), up from earlier estimates.

Tech shares, particularly those linked to AI, provided additional support. The Nasdaq’s outsized gain reflected renewed enthusiasm for growth-oriented stocks even as broader economic projections softened.

McIntosh told Euronews that “the capital spending boost relating to AI shows no sign of slowing down so this continues to support US economic growth. We have just started the US quarterly results season and so far there is limited evidence of a negative impact from the current Middle East conflict”.

The indices also include defence companies that have all performed well with the war in the backdrop pushing governments, in particular the US, to increase military budgets.

History also offers context for the current rebound. In past US-involved wars, equity markets have frequently experienced short-term volatility followed by recovery and gains.

During the 2003 Iraq War, for example, the S&P 500 rose over 25% in the first full year after the invasion began.

The Gulf War of 1990-1991 saw an initial 11% decline in the index, but a strong relief rally followed the swift coalition victory, delivering positive returns in the subsequent year.

Similar patterns emerged in the Korean War and Vietnam War eras, where stocks posted solid long-term advances despite prolonged uncertainty.

Data compiled by the Royal Bank of Canada and other sources indicate that, across multiple conflicts, equities rose in the first year of hostilities around 60% of the time.

Markets have tended to focus on eventual outcomes rather than immediate shocks, rewarding resolution and economic adaptability. The latest record for the S&P 500 and the Nasdaq underscore this enduring pattern.

While risks remain if the Iran conflict worsens, investors are currently betting that diplomacy and corporate fundamentals will prevail.

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