<p>Evergrande founder Hui Ka Yan pleaded guilty to multiple fraud charges in a landmark trial that marks another chapter in the spectacular collapse of what was once China’s largest real estate developer. Also known as Xu Jiayin, the 67-year-old stood trial alongside the company he founded. At the Shenzhen Intermediate People’s Court, he pleaded guilty to all fraud charges and expressed remorse in his final statement. He might receive a life term in jail and confiscation of property for some of the serious charges, such as illegal fundraising and bribery. The verdict is awaited. How did Evergrande collapse? Here is that story:</p><h2>A fundraising fraud: Charges against Hui Ka Yan and Evergrande</h2><p>Hui and Evergrande faced charges of taking deposits from the public without authorisation.<br>The fundraising fraud included misuse or embezzlement of corporate assets and funds.<br>They were also charged with illegally issuing or extending loans and the fraudulent issuance of securities. Other charges include corporate bribery.</p><p>Evergrande diverted pre-sale funds paid up by homebuyers for construction of projects to new projects instead, leading to hundreds of unfinished properties across China.</p><p>Regulatory findings from 2024 showed the company had inflated 2019 and 2020 revenues by a combined 564 billion yuan, or nearly $78 billion, enabling fraudulent bond issuance.</p><p>Hui was detained by authorities in September 2023 on suspicion of the crimes. In March 2024, China’s securities regulator, CSRC, fined him 47 million yuan, or around $6.5 million, banned him for life from the securities market, and penalised the company heavily for the accounting fraud.</p><p>Liquidators are seeking recovery of $6 billion in dividends and remuneration paid to Hui and his former spouse.</p><p>Also read: <a href="https://www.wionews.com/world/chinese-real-estate-firm-evergrandes-shares-dive-after-chairman-hui-ka-yan-cuts-stake-432892">Chinese real estate firm Evergrande's shares dive after Chairman Hui Ka Yan cuts stake</a></p><p>&nbsp;</p><h2>How Hui rose to be Asia’s richest man, with Evergrande fortunes</h2><p>Born into poverty in the rural Henan province and raised by his grandmother, Hui went on to build Evergrande, founded in 1996, into a real estate empire. The Guangzhou-based company, at its peak, was valued at over $50 billion. In 2017, Hui was Asia’s richest person, with a net worth of $42.5 billion.</p><p>Under Hui, Evergrande expanded aggressively into electric vehicles, football, food and drinks, and other sectors.</p><h2>Evergrande: How China’s biggest real estate firm collapsed</h2><p>Evergrande’s downfall was the result of a classic high-leverage real estate model that continued until regulators stepped in.<br>The business model was debt-fuelled. Having borrowed heavily to buy land, Evergrande pre-sold unfinished apartments to buyers who often paid up to 90 per cent upfront. This money was then used to buy more land.</p><p>This continuous expansion loop model worked during China’s property boom, and by 2020, Evergrande became China’s largest developer.</p><p>Also read: <a href="https://www.wionews.com/business-economy/ditched-by-communist-party-chinese-billionaire-loses-93-per-cent-of-fortune-554153">Ditched by Communist Party, Chinese billionaire loses 93 per cent of his fortune</a></p><p>&nbsp;</p><h2>Evergrande failed China’s ‘Three Red Lines’ test</h2><p>Things changed with China’s “Three Red Lines” policy in 2020. This imposed debt limits for developers to curb systemic risks.<br>The three aspects were: debt-to-asset ratio should be less than or equal to 70 per cent; net debt-to-equity ratio should be 100 per cent; and cash-to-short-term debt ratio should be greater than 1.<br>Evergrande failed all three of the red line tests.<br>Its borrowing ability was severely restricted, cutting off its lifeblood.</p><h2>A liquidity crisis and default of Evergrande, 2021</h2><p>Under regulatory scrutiny, Evergrande could neither borrow nor complete its projects. Even as the Covid pandemic hit China and the rest of the world, Evergrande stopped paying suppliers and contractors and halted construction on many sites. In late 2021, Evergrande defaulted on paying interest on offshore bonds. Soon, its total liabilities reached 2.39 trillion yuan, or $330 billion, equivalent to around 2 per cent of China’s GDP. Evergrande owed foreign creditors around $25 billion.</p><h2>Evergrande almost brought down the entire real estate sector in China</h2><p>Nearly 1 million homebuyers were left with unfinished apartments across 1,300 Evergrande projects in 280 cities. Mass protests and more than 1,300 lawsuits followed. Evergrande was the first domino: more than 50 other real estate developers defaulted on debt payments. In August 2025, Evergrande was delisted from the Hong Kong Stock Exchange after its shares lost nearly 99 per cent of their value. Talks for debt restructuring collapsed, and in 2024, a Hong Kong court ordered liquidation of Evergrande, the largest in Chinese corporate history.</p><p>&nbsp;</p><p><a href="https://www.wionews.com/videos/china-evergrande-delisted-china-s-300-billion-property-collapse-1756142932647/embed">https://www.wionews.com/videos/china-evergrande-delisted-china-s-300-billion-property-collapse-1756142932647/embed</a></p><h2>Accounting fraud behind Evergrande collapse</h2><p>To keep borrowing and meet targets, Evergrande forged sales and profit numbers. Hundreds of billions of yuan were overstated. This allowed it to continue issuing bonds while hiding the true debt burden.The guilty plea cemented Hui’s personal accountability.</p><p>Evergrande liquidation proceedings are continuing. Unfinished projects may be completed or sold to other developers with regulatory support.<br>But Evergrande and Hui have become a cautionary tale for China’s property market that once overheated. The realities of Chinese household wealth, local government finances, and investor confidence were also exposed by the fall of Evergrande.&nbsp;</p><p>The saga is seen as a symbol of the end of China’s debt-fuelled real estate boom era.</p>

Evergrande founder Hui Ka Yan pleaded guilty to fraud as China’s biggest property developer collapsed under massive debt. Accounting fraud and unfinished projects at Evergrande had triggered a wider real estate crisis in China. Here is the story of its fall

Evergrande founder Hui Ka Yan pleaded guilty to multiple fraud charges in a landmark trial that marks another chapter in the spectacular collapse of what was once China’s largest real estate developer. Also known as Xu Jiayin, the 67-year-old stood trial alongside the company he founded. At the Shenzhen Intermediate People’s Court, he pleaded guilty to all fraud charges and expressed remorse in his final statement. He might receive a life term in jail and confiscation of property for some of the serious charges, such as illegal fundraising and bribery. The verdict is awaited. How did Evergrande collapse? Here is that story: A fundraising fraud: Charges against Hui Ka Yan and Evergrande Hui and Evergrande faced charges of taking deposits from the public without authorisation. The fundraising fraud included misuse or embezzlement of corporate assets and funds. They were also charged with illegally issuing or extending loans and the fraudulent issuance of securities. Other charges include corporate bribery. Evergrande diverted pre-sale funds paid up by homebuyers for construction of projects to new projects instead, leading to hundreds of unfinished properties across China. Regulatory findings from 2024 showed the company had inflated 2019 and 2020 revenues by a combined 564 billion yuan, or nearly $78 billion, enabling fraudulent bond issuance. Hui was detained by authorities in September 2023 on suspicion of the crimes. In March 2024, China’s securities regulator, CSRC, fined him 47 million yuan, or around $6.5 million, banned him for life from the securities market, and penalised the company heavily for the accounting fraud. Liquidators are seeking recovery of $6 billion in dividends and remuneration paid to Hui and his former spouse. Also read: Chinese real estate firm Evergrande's shares dive after Chairman Hui Ka Yan cuts stake How Hui rose to be Asia’s richest man, with Evergrande fortunes Born into poverty in the rural Henan province and raised by his grandmother, Hui went on to build Evergrande, founded in 1996, into a real estate empire. The Guangzhou-based company, at its peak, was valued at over $50 billion. In 2017, Hui was Asia’s richest person, with a net worth of $42.5 billion. Under Hui, Evergrande expanded aggressively into electric vehicles, football, food and drinks, and other sectors. Evergrande: How China’s biggest real estate firm collapsed Evergrande’s downfall was the result of a classic high-leverage real estate model that continued until regulators stepped in. The business model was debt-fuelled. Having borrowed heavily to buy land, Evergrande pre-sold unfinished apartments to buyers who often paid up to 90 per cent upfront. This money was then used to buy more land. This continuous expansion loop model worked during China’s property boom, and by 2020, Evergrande became China’s largest developer. Also read: Ditched by Communist Party, Chinese billionaire loses 93 per cent of his fortune Evergrande failed China’s ‘Three Red Lines’ test Things changed with China’s “Three Red Lines” policy in 2020. This imposed debt limits for developers to curb systemic risks. The three aspects were: debt-to-asset ratio should be less than or equal to 70 per cent; net debt-to-equity ratio should be 100 per cent; and cash-to-short-term debt ratio should be greater than 1. Evergrande failed all three of the red line tests. Its borrowing ability was severely restricted, cutting off its lifeblood. A liquidity crisis and default of Evergrande, 2021 Under regulatory scrutiny, Evergrande could neither borrow nor complete its projects. Even as the Covid pandemic hit China and the rest of the world, Evergrande stopped paying suppliers and contractors and halted construction on many sites. In late 2021, Evergrande defaulted on paying interest on offshore bonds. Soon, its total liabilities reached 2.39 trillion yuan, or $330 billion, equivalent to around 2 per cent of China’s GDP. Evergrande owed foreign creditors around $25 billion. Evergrande almost brought down the entire real estate sector in China Nearly 1 million homebuyers were left with unfinished apartments across 1,300 Evergrande projects in 280 cities. Mass protests and more than 1,300 lawsuits followed. Evergrande was the first domino: more than 50 other real estate developers defaulted on debt payments. In August 2025, Evergrande was delisted from the Hong Kong Stock Exchange after its shares lost nearly 99 per cent of their value. Talks for debt restructuring collapsed, and in 2024, a Hong Kong court ordered liquidation of Evergrande, the largest in Chinese corporate history. https://www.wionews.com/videos/china-evergrande-delisted-china-s-300-billion-property-collapse-1756142932647/embed Accounting fraud behind Evergrande collapse To keep borrowing and meet targets, Evergrande forged sales and profit numbers. Hundreds of billions of yuan were overstated. This allowed it to continue issuing bonds while hiding the true debt burden.The guilty plea cemented Hui’s personal accountability. Evergrande liquidation proceedings are continuing. Unfinished projects may be completed or sold to other developers with regulatory support. But Evergrande and Hui have become a cautionary tale for China’s property market that once overheated. The realities of Chinese household wealth, local government finances, and investor confidence were also exposed by the fall of Evergrande. The saga is seen as a symbol of the end of China’s debt-fuelled real estate boom era.

<p>Evergrande founder Hui Ka Yan pleaded guilty to fraud as China’s biggest property developer collapsed under massive debt. Accounting fraud and unfinished projects at Evergrande had triggered a wider real estate crisis in China. Here is the story of its fall</p>

Evergrande founder Hui Ka Yan pleads guilty to fraud: How China’s biggest real estate firm went down due to greed and debt

Trump’s Strait of Hormuz blockade faces early strain amid Chinese tanker passage, Iranian mining of the area, and reported Saudi opposition. With rising oil prices and risks of escalation, economic disruption, and limited US enforcement, it could prove to be a costly mistake. Here is why

<p>Trump’s Strait of Hormuz blockade faces early strain amid Chinese tanker passage, Iranian mining of the area, and reported Saudi opposition. With rising oil prices and risks of escalation, economic disruption, and limited US enforcement, it could prove to be a costly mistake. Here is why</p>

US blockade of Hormuz Strait a costly mistake? Saudi wants it to end; Chinese ship passes anyway as Beijing fumes

Trump’s criticism of Pope Leo XIV echoes a long history of conflict between the rulers and the papacy. From Roman persecutions to Napoleon, popes faced exile, imprisonment, and death in clashes with emperors and kings. Here is a recap in the wake of the US president's remarks against the pope

<p>Trump’s criticism of Pope Leo XIV echoes a long history of conflict between the rulers and the papacy. From Roman persecutions to Napoleon, popes faced exile, imprisonment, and death in clashes with emperors and kings. Here is a recap in the wake of the US president's remarks against the pope</p>

Trump vs Pope Leo: Being the Pope can be a deadly business. Many pontiffs were ousted, persecuted, exiled or even killed

YouTube users are reacting strongly to rising Premium subscription prices in the US, and longer unskippable TV ads, which make the experience similar to cable TV. The platform is pushing for higher revenue through subscriptions and advertising changes, far from its creator community origins.

<p>YouTube users are reacting strongly to rising Premium subscription prices in the US, and longer unskippable TV ads, which make the experience similar to cable TV. The platform is pushing for higher revenue through subscriptions and advertising changes, far from its creator community origins.</p>

YouTube Premium Subscription fee hike and nearly two minutes of unskippable ads for TV viewers make users FURIOUS

Anthropic’s Claude Mythos Preview showed advanced ability to find and exploit vulnerabilities across computer systems. This is raising fears of AI-driven cyberattacks and financial instability. The US government has issued warnings to banking and financial industry leaders. Here is why it matters

<p>Anthropic’s Claude Mythos Preview showed advanced ability to find and exploit bugs across computer systems. This is raising fears of AI-driven cyberattacks and financial instability. The US government has issued warnings to banking and financial industry leaders. Here is why it matters</p>

Why Anthropic’s Claude Mythos is scaring financial sector and US officials: This AI model can end cybersecurity, if in wrong hands

<p>Elon Musk recently shared an interview with Robin Farrow, who wrote a 'hit piece' on Sam Altman, the CEO of OpenAI, the artificial intelligence firm behind ChatGPT. In the interview, the Pulitzer Prize-winning journalist behind the Harvey Weinstein sexual abuse exposé that sparked the MeToo movement, said that former associates of Altman described him as a sociopath and a pathological liar. Sharing the interview, the X chief, who was part of the founding team of OpenAI, said this man cannot be trusted with a superpowerful AI.&nbsp;</p><h2>Sam Altman accused of excessive lying</h2><p>Musk posted the Farrow interview, in which the journalist from The New Yorker highlighted allegations of repeated dishonesty, exaggeration, and misleading statements to board members and partners by Altman. Farrow claimed that Altman was fired from OpenAI in 2023 - before being reinstated - partly for excessive lying. He also spoke about untested AI models being released to India, and false assurances on AI safety provisions, under Altman. While sharing the interview, Musk wrote: "Not someone you want in charge of superpowerful AI."</p><h2>Farrow's allegations against Sam Altman</h2><p>Farrow made several allegations in a piece for the New Yorker, titled "Sam Altman May Control Our Future—Can He Be Trusted?". Written by Farrow along with Andrew Marantz and published on 6 April, the article came after 18 months of reporting and investigation. It is based on interviews with more than 100 people, including former and current OpenAI board members, executives, employees, investors, and colleagues. The article also claims to have reviewed previously undisclosed internal documents. This includes the “Ilya memos”, which contain Ilya Sutskever’s Slack messages and HR documents. Also reviewed were the private notes kept by Dario Amodei, the co-founder of rival AI firm Anthropic. Amodei was previously associated with OpenAI.</p><p>The article questioned whether Altman can be trusted with control over transformative AI technology, in the context that artificial general intelligence (AGI) could be humanity’s most dangerous invention and thus would require a leader of “uncommon integrity” to run a company like OpenAI.</p><h2>AI, leadership and integrity: Sam Altman is “unconstrained by the truth”</h2><p>The article seeks to establish a pattern of deception, manipulation, and prioritisation of power and profit over safety commitments in Altman’s conduct. It claims that this pattern has been repeated across his career, from Loopt to Y Combinator and now OpenAI.</p><p>Altman allegedly drifted from the AI safety mission, pushing aggressively for deals with businesses and governments.</p><p>Also read: <a href="https://www.wionews.com/technology/openai-brings-chatgpt-to-apple-carplay-for-hands-free-voice-interaction-while-driving-1775153637555">OpenAI brings ChatGPT to Apple CarPlay for hands-free voice interaction while driving</a></p><h2>Sam Altman had a consistent pattern of lying and misrepresentation</h2><p>In late 2022, Altman told the board that certain controversial features in an upcoming AI model had been approved by OpenAI’s safety panel. After board member Helen Toner asked for documentation, it turned out that the most controversial features had not been approved.</p><p>Altman told Mira Murati that ChatGPT's GPT-4 Turbo model didn’t need safety approval, citing general counsel Jason Kwon. However, Kwon later said he was “confused” and had no idea where Altman got that idea. In his private notes, running to more than 200 pages, Dario Amodei documented several incidents, including one involving the 2019 Microsoft deal with OpenAI. Amodei wrote that Altman’s words were “almost certainly bulls***t”.</p><p><a href="https://www.wionews.com/videos/openai-to-introduce-ads-on-chatgpt-as-new-revenue-stream-1774169954470/embed">https://www.wionews.com/videos/openai-to-introduce-ads-on-chatgpt-as-new-revenue-stream-1774169954470/embed</a></p><h2>The betrayal of OpenAI’s nonprofit and safety mission</h2><p>Some OpenAI founders, including Altman, privately doubted its nonprofit structure early on, according to the report. Greg Brockman wrote in his diary: "If three months later, we’re doing B-corp, then it was a lie."</p><p>One researcher reportedly told the board: “OpenAI has been going off the rails on its mission... We are prioritising product and revenue above all else.”</p><h2>Altman's deception and manipulation go back to his first startup</h2><p>According to the report, employees at his first start-up, Loopt, went to the board twice asking to fire Altman over a lack of transparency and a tendency for exaggeration. This included claiming he was a “Missouri high-school ping-pong champion” when he was not. He inspired loyalty in others but was accused of blurring the truth.</p><p>During his time at Y Combinator, partners complained of divided loyalties, with Altman making personal investments while serving as president. Paul Graham, co-founder of Y Combinator, reportedly told colleagues Altman “had been lying to us all the time”.</p><p>Altman was later pushed out as president but resisted and remained listed as chairman in SEC filings until 2021, which he said he was unaware of.</p><p>Also read: <a href="https://www.wionews.com/entertainment/hollywood/disney-exits-from-openai-deal-here-s-what-happened-1774549684205">Disney exits from OpenAI deal? Here's what happened</a></p><h2>Sam Altman's aggressive business dealings with questionable partners, and lobbying against regulation</h2><p>Altman reportedly sought funding and deals with Gulf autocracies in Saudi Arabia and the UAE for massive data-centre projects, despite security red flags. He internally discussed “playing world powers like China and Russia against each other in a bidding war for AI technology, according to the report. This plan was dropped after employee pushback.</p><p>At one point, he claimed, without evidence, that China had an “AGI Manhattan Project”.</p><p>Altman lobbied against AI regulation such as the European Union AI Act and bills in California, even as he publicly supported AI safety, said the report.&nbsp;</p><h2>Sister's abuse accusations and more: Sam Altman's personal character under scanner</h2><p>Sources cited in Farrow's reportage and interviews described Altman as having a “sociopathic lack of concern for the consequences”, and a desperate need to be liked.</p><p>The article notes deeply personal allegations from Altman’s sister Annie, including of sexual abuse, which Altman fought in the courts. He denied the allegations. There were unsubstantiated Silicon Valley rumours involving minors, on which no evidence was found by the New Yorker reporters.</p><h2>Altman's board coup: He was ousted in 2023, but was reinstated, with limited probe</h2><p>Altman was fired as OpenAI CEO in 2023 by the board, citing a lack of candour. But he quickly returned to the position after organising a counter-campaign. He made Thrive Capital’s $86 billion investment in OpenAI conditional on his return, among other factors. He was reinstated within five days, with the board that ousted him practically disbanded. The subsequent “independent” WilmerHale review, overseen by new board members chosen in consultation with Altman, produced no written report. An 800-word announcement only cited a “breakdown in trust” without explicitly blaming Altman.</p><h2>‘Can't change my personality’: Altman’s response to allegations on his leadership, personal qualities</h2><p>Altman attributed the criticism of him to his avoidance of conflict. He said he “can’t change my personality”, and denied lying.</p><p>He maintained that OpenAI would continue to run safety projects, “or at least safety-adjacent projects”.</p><p>He also characterised OpenAI's shift to for-profit operations and aggressive deal-making as normal competitive business rather than a betrayal.</p><p>The New Yorker article does not portray Altman as cartoonishly evil. It presents a complex, high-achieving figure whose traits led to breakdowns in trust. It suggests he exhibits a “reality-distortion field” and ruthless ambition.</p>

Elon Musk has shared a Robin Farrow interview citing allegations against Sam Altman, appearing to agree with the contents of Farrow's New Yorker ‘hit piece’ on the OpenAI CEO. Altman is accused of dishonesty, with the article questioning his leadership amid AI integrity and safety issues.

Elon Musk recently shared an interview with Robin Farrow, who wrote a 'hit piece' on Sam Altman, the CEO of OpenAI, the artificial intelligence firm behind ChatGPT. In the interview, the Pulitzer Prize-winning journalist behind the Harvey Weinstein sexual abuse exposé that sparked the MeToo movement, said that former associates of Altman described him as a sociopath and a pathological liar. Sharing the interview, the X chief, who was part of the founding team of OpenAI, said this man cannot be trusted with a superpowerful AI. Sam Altman accused of excessive lying Musk posted the Farrow interview, in which the journalist from The New Yorker highlighted allegations of repeated dishonesty, exaggeration, and misleading statements to board members and partners by Altman. Farrow claimed that Altman was fired from OpenAI in 2023 - before being reinstated - partly for excessive lying. He also spoke about untested AI models being released to India, and false assurances on AI safety provisions, under Altman. While sharing the interview, Musk wrote: "Not someone you want in charge of superpowerful AI." Farrow's allegations against Sam Altman Farrow made several allegations in a piece for the New Yorker, titled "Sam Altman May Control Our Future—Can He Be Trusted?". Written by Farrow along with Andrew Marantz and published on 6 April, the article came after 18 months of reporting and investigation. It is based on interviews with more than 100 people, including former and current OpenAI board members, executives, employees, investors, and colleagues. The article also claims to have reviewed previously undisclosed internal documents. This includes the “Ilya memos”, which contain Ilya Sutskever’s Slack messages and HR documents. Also reviewed were the private notes kept by Dario Amodei, the co-founder of rival AI firm Anthropic. Amodei was previously associated with OpenAI. The article questioned whether Altman can be trusted with control over transformative AI technology, in the context that artificial general intelligence (AGI) could be humanity’s most dangerous invention and thus would require a leader of “uncommon integrity” to run a company like OpenAI. AI, leadership and integrity: Sam Altman is “unconstrained by the truth” The article seeks to establish a pattern of deception, manipulation, and prioritisation of power and profit over safety commitments in Altman’s conduct. It claims that this pattern has been repeated across his career, from Loopt to Y Combinator and now OpenAI. Altman allegedly drifted from the AI safety mission, pushing aggressively for deals with businesses and governments. Also read: OpenAI brings ChatGPT to Apple CarPlay for hands-free voice interaction while driving Sam Altman had a consistent pattern of lying and misrepresentation In late 2022, Altman told the board that certain controversial features in an upcoming AI model had been approved by OpenAI’s safety panel. After board member Helen Toner asked for documentation, it turned out that the most controversial features had not been approved. Altman told Mira Murati that ChatGPT's GPT-4 Turbo model didn’t need safety approval, citing general counsel Jason Kwon. However, Kwon later said he was “confused” and had no idea where Altman got that idea. In his private notes, running to more than 200 pages, Dario Amodei documented several incidents, including one involving the 2019 Microsoft deal with OpenAI. Amodei wrote that Altman’s words were “almost certainly bulls***t”. https://www.wionews.com/videos/openai-to-introduce-ads-on-chatgpt-as-new-revenue-stream-1774169954470/embed The betrayal of OpenAI’s nonprofit and safety mission Some OpenAI founders, including Altman, privately doubted its nonprofit structure early on, according to the report. Greg Brockman wrote in his diary: "If three months later, we’re doing B-corp, then it was a lie." One researcher reportedly told the board: “OpenAI has been going off the rails on its mission... We are prioritising product and revenue above all else.” Altman's deception and manipulation go back to his first startup According to the report, employees at his first start-up, Loopt, went to the board twice asking to fire Altman over a lack of transparency and a tendency for exaggeration. This included claiming he was a “Missouri high-school ping-pong champion” when he was not. He inspired loyalty in others but was accused of blurring the truth. During his time at Y Combinator, partners complained of divided loyalties, with Altman making personal investments while serving as president. Paul Graham, co-founder of Y Combinator, reportedly told colleagues Altman “had been lying to us all the time”. Altman was later pushed out as president but resisted and remained listed as chairman in SEC filings until 2021, which he said he was unaware of. Also read: Disney exits from OpenAI deal? Here's what happened Sam Altman's aggressive business dealings with questionable partners, and lobbying against regulation Altman reportedly sought funding and deals with Gulf autocracies in Saudi Arabia and the UAE for massive data-centre projects, despite security red flags. He internally discussed “playing world powers like China and Russia against each other in a bidding war for AI technology, according to the report. This plan was dropped after employee pushback. At one point, he claimed, without evidence, that China had an “AGI Manhattan Project”. Altman lobbied against AI regulation such as the European Union AI Act and bills in California, even as he publicly supported AI safety, said the report. Sister's abuse accusations and more: Sam Altman's personal character under scanner Sources cited in Farrow's reportage and interviews described Altman as having a “sociopathic lack of concern for the consequences”, and a desperate need to be liked. The article notes deeply personal allegations from Altman’s sister Annie, including of sexual abuse, which Altman fought in the courts. He denied the allegations. There were unsubstantiated Silicon Valley rumours involving minors, on which no evidence was found by the New Yorker reporters. Altman's board coup: He was ousted in 2023, but was reinstated, with limited probe Altman was fired as OpenAI CEO in 2023 by the board, citing a lack of candour. But he quickly returned to the position after organising a counter-campaign. He made Thrive Capital’s $86 billion investment in OpenAI conditional on his return, among other factors. He was reinstated within five days, with the board that ousted him practically disbanded. The subsequent “independent” WilmerHale review, overseen by new board members chosen in consultation with Altman, produced no written report. An 800-word announcement only cited a “breakdown in trust” without explicitly blaming Altman. ‘Can't change my personality’: Altman’s response to allegations on his leadership, personal qualities Altman attributed the criticism of him to his avoidance of conflict. He said he “can’t change my personality”, and denied lying. He maintained that OpenAI would continue to run safety projects, “or at least safety-adjacent projects”. He also characterised OpenAI's shift to for-profit operations and aggressive deal-making as normal competitive business rather than a betrayal. The New Yorker article does not portray Altman as cartoonishly evil. It presents a complex, high-achieving figure whose traits led to breakdowns in trust. It suggests he exhibits a “reality-distortion field” and ruthless ambition.

<p>Elon Musk has shared a Robin Farrow interview citing allegations against Sam Altman, appearing to agree with the contents of Farrow's New Yorker ‘hit piece’ on the OpenAI CEO. Altman is accused of dishonesty, with the article questioning his leadership amid AI integrity and safety issues.</p>

Sam Altman a sociopath, pathological liar and abuser? Musk agrees to claims on OpenAI chief's past and leadership

Iran war uncertainty and Trump's shifting stances led to massive volatility in oil, gold, crypto and stocks. This enabled states, corporate firms, traders, and speculators to profit billions through bets, disruption, and strategic market moves. It was virtually a heist. Who made the money?

<p>Iran war uncertainty and Trump's shifting stances led to massive volatility in oil, gold, crypto and stocks. This enabled states, corporate firms, traders, and speculators to profit billions through bets, disruption, and strategic market moves. It was virtually a heist. Who made the money?</p>

Iran war, the multibillion-dollar heist: How states, companies and speculators cashed in on uncertainty and Trump  flip-flops

<p>The Iran war has shown that the Strait of Hormuz is no longer a fully reliable route for global oil trade. Oil-producing nations in the Gulf, caught in tensions involving the US, Israel and Iran, are now urgently advancing plans for new pipelines, transport corridors and infrastructure to bypass the chokepoint. These projects had been discussed for years, but were repeatedly delayed. Now, they are being treated as a strategic necessity despite high costs and political complexities.</p><h2>Existing pipelines are operating at full capacity</h2><p>Saudi Arabia’s East-West Petroline, stretching 1,200 km from Abqaiq to the Red Sea port of Yanbu, is operating at its full capacity of roughly 7 million barrels per day (mbpd). The UAE’s Abu Dhabi Crude Oil Pipeline (ADCOP), which carries up to 1.8 mbpd from Habshan to Fujairah outside the strait, is also at maximum capacity. Together, these routes provide around 8–9 mbpd of bypass capacity—far short of the estimated 17–21 mbpd that typically transits through the Strait of Hormuz.</p><h2>Alternative plans in the UAE, Oman and Iraq</h2><p>One key proposal is the expansion of the UAE’s Fujairah corridor. Plans include an additional pipeline that could add about 1.5 mbpd and link offshore fields directly to export terminals outside Hormuz. Another proposal is a pipeline to Oman’s Duqm port on the Arabian Sea, likely to cost around $10 billion. This would provide a direct outlet for Gulf crude beyond the Strait of Hormuz.</p><p>There are also plans to expand the Iraq–Turkey pipeline from Kirkuk to the Mediterranean port of Ceyhan, which has a nominal capacity of 1.6 mbpd. The project was delayed by political disputes, but possible extensions to southern Iraqi or Gulf-linked supplies make it a candidate for increased use. The long-dormant Iraq Pipeline through Saudi Arabia (IPSA), which runs to the Red Sea, is also being reconsidered for reactivation.</p><p>Also read: <a href="https://www.wionews.com/world/-indian-friends-are-safe-says-iran-on-strait-of-hormuz-transit-as-irgc-reportedly-charges-1-per-oil-barrel-in-yuan-and-stablecoins-iran-war-update-1775112816765">‘Indian friends are safe’, says Iran on Strait of Hormuz transit as IRGC reportedly charges $1 per oil barrel in yuan and stablecoins</a></p><h2>New overland energy corridors</h2><p>Several proposed corridors aim to link Gulf producers directly to the Mediterranean and possibly beyond. These include pipelines from Qatar and the UAE across Saudi Arabia, and potentially through Iraq or Jordan, to terminals in Israel or Egypt. Such routes would bypass not only Hormuz but also the Bab el-Mandeb strait in the Red Sea—another flashpoint during Iran-linked conflicts—as well as the Suez Canal. The India–Middle East–Europe Economic Corridor is another ambitious initiative with potential energy components.</p><h2>Rail and logistics networks</h2><p>Governments in the region are also examining rail and logistics corridors. Projects include Saudi Arabia’s planned landbridge and the UAE’s Etihad Rail. These could transport refined products and support pipeline distribution to alternative export hubs, including Oman’s Sohar and Duqm ports.</p><p><a href="https://www.wionews.com/videos/us-israel-war-with-iran-tehran-tightens-grip-on-hormuz-demonstrates-capabilities-to-strike-gulf-1775124006365/embed">https://www.wionews.com/videos/us-israel-war-with-iran-tehran-tightens-grip-on-hormuz-demonstrates-capabilities-to-strike-gulf-1775124006365/embed</a></p><h2>Costs, terrain and political barriers still persist</h2><p>Despite growing momentum, major obstacles remain. Many routes pass through countries that have political tensions with one another. Terrain challenges and regional rivalries add further complications. Approvals could take years for some projects. Tens of billions of dollars in investment will be required. Cross-border agreements and security guarantees will be difficult to secure.</p><p>Also read: <a href="https://www.wionews.com/world/uk-talks-reopen-strait-of-hormuz-oil-crisis-1775120014544">UK to lead talks on reopening Strait of Hormuz amid rising tensions with Iran</a></p><h2>Shift away from Hormuz dependence is the need of the hour</h2><p>In spite of these challenges, the Iran conflict has highlighted how easily threats to the Strait of Hormuz can disrupt global energy markets. This has pushed governments and industries to prioritise alternative routes and logistics. Contingency plans are now being treated as core investments in energy security. While change will take time, reliance on the Strait of Hormuz as the primary artery of global oil trade is set to decline.</p>

Days of dependency on Strait of Hormuz for global oil trade will be over, even if it takes several years, as the Iran war has proven how Tehran can put a chokehold on the chokepoint. Gulf states are accelerating pipeline and transport plans to bypass the strait. But will they succeed?

The Iran war has shown that the Strait of Hormuz is no longer a fully reliable route for global oil trade. Oil-producing nations in the Gulf, caught in tensions involving the US, Israel and Iran, are now urgently advancing plans for new pipelines, transport corridors and infrastructure to bypass the chokepoint. These projects had been discussed for years, but were repeatedly delayed. Now, they are being treated as a strategic necessity despite high costs and political complexities. Existing pipelines are operating at full capacity Saudi Arabia’s East-West Petroline, stretching 1,200 km from Abqaiq to the Red Sea port of Yanbu, is operating at its full capacity of roughly 7 million barrels per day (mbpd). The UAE’s Abu Dhabi Crude Oil Pipeline (ADCOP), which carries up to 1.8 mbpd from Habshan to Fujairah outside the strait, is also at maximum capacity. Together, these routes provide around 8–9 mbpd of bypass capacity—far short of the estimated 17–21 mbpd that typically transits through the Strait of Hormuz. Alternative plans in the UAE, Oman and Iraq One key proposal is the expansion of the UAE’s Fujairah corridor. Plans include an additional pipeline that could add about 1.5 mbpd and link offshore fields directly to export terminals outside Hormuz. Another proposal is a pipeline to Oman’s Duqm port on the Arabian Sea, likely to cost around $10 billion. This would provide a direct outlet for Gulf crude beyond the Strait of Hormuz. There are also plans to expand the Iraq–Turkey pipeline from Kirkuk to the Mediterranean port of Ceyhan, which has a nominal capacity of 1.6 mbpd. The project was delayed by political disputes, but possible extensions to southern Iraqi or Gulf-linked supplies make it a candidate for increased use. The long-dormant Iraq Pipeline through Saudi Arabia (IPSA), which runs to the Red Sea, is also being reconsidered for reactivation. Also read: ‘Indian friends are safe’, says Iran on Strait of Hormuz transit as IRGC reportedly charges $1 per oil barrel in yuan and stablecoins New overland energy corridors Several proposed corridors aim to link Gulf producers directly to the Mediterranean and possibly beyond. These include pipelines from Qatar and the UAE across Saudi Arabia, and potentially through Iraq or Jordan, to terminals in Israel or Egypt. Such routes would bypass not only Hormuz but also the Bab el-Mandeb strait in the Red Sea—another flashpoint during Iran-linked conflicts—as well as the Suez Canal. The India–Middle East–Europe Economic Corridor is another ambitious initiative with potential energy components. Rail and logistics networks Governments in the region are also examining rail and logistics corridors. Projects include Saudi Arabia’s planned landbridge and the UAE’s Etihad Rail. These could transport refined products and support pipeline distribution to alternative export hubs, including Oman’s Sohar and Duqm ports. https://www.wionews.com/videos/us-israel-war-with-iran-tehran-tightens-grip-on-hormuz-demonstrates-capabilities-to-strike-gulf-1775124006365/embed Costs, terrain and political barriers still persist Despite growing momentum, major obstacles remain. Many routes pass through countries that have political tensions with one another. Terrain challenges and regional rivalries add further complications. Approvals could take years for some projects. Tens of billions of dollars in investment will be required. Cross-border agreements and security guarantees will be difficult to secure. Also read: UK to lead talks on reopening Strait of Hormuz amid rising tensions with Iran Shift away from Hormuz dependence is the need of the hour In spite of these challenges, the Iran conflict has highlighted how easily threats to the Strait of Hormuz can disrupt global energy markets. This has pushed governments and industries to prioritise alternative routes and logistics. Contingency plans are now being treated as core investments in energy security. While change will take time, reliance on the Strait of Hormuz as the primary artery of global oil trade is set to decline.

<p>Days of dependency on Strait of Hormuz for global oil trade will be over, even if it takes several years, as the Iran war has proven how Tehran can put a chokehold on the chokepoint. Gulf states are accelerating pipeline and transport plans to bypass the strait. But will they succeed?</p>

Strait of Hormuz crisis: Gulf states rush with alternative pipelines, infra to bypass chokepoint amid Iran war. What can they do, what are problems?

<p>Multiple reports suggest that Gulf nations are slowly running out of air defence capacity amid a barrage of Iranian missile and drone strikes in retaliation for US–Israel attacks on the Islamic Republic in the ongoing war. This is forcing nations such as Saudi Arabia and the UAE to consider joining the war against Iran after remaining on the defensive for the first month. Here is how the air defence systems are holding up against the Iranian strikes.</p><h2>Iran fired thousands of missiles and drones at Gulf nations</h2><p>A report in Bloomberg claimed that Iran has launched 1,200 ballistic missiles and 4,000 Shahed drones and cruise missiles at US bases and military assets in Gulf countries since the war began on 28 February. Iran also targeted oil and gas facilities in several nations, including Saudi Arabia, Qatar and Kuwait. This past weekend alone, around 40 Iranian missiles were launched in a single wave, which is twice the daily average, the report said.</p><p><a href="https://www.wionews.com/videos/us-president-says-securing-the-strait-of-hormuz-is-not-our-job-1775022284664/embed">https://www.wionews.com/videos/us-president-says-securing-the-strait-of-hormuz-is-not-our-job-1775022284664/embed</a></p><h2>Gulf countries ended up firing double the number of interceptors</h2><p>The air defence systems of Gulf nations, mostly bought from the US, have fired more than 2,400 interceptors. This has nearly exhausted their pre-war stockpiles of these missiles, according to the Bloomberg report.</p><p>This is because the defence systems often have to fire at least twice at each missile or drone based on the ‘shoot, shoot, look’ doctrine. This means interceptors are launched twice and then the results are assessed. By implication, it can be estimated that at least 2,400 interceptors were fired over the course of the war, perhaps more. This is because, at times, additional interceptor missiles are needed to defend against incoming projectiles, the Bloomberg report noted.</p><p>Most of these interceptors were Patriot PAC-3 and GEM-T (Guidance Enhanced Missile–Tactical) missiles. Before the war, Gulf nations had fewer than 2,800 of these.</p><p>Also read: <a href="https://www.wionews.com/world/uae-to-join-iran-war-report-claims-gulf-nation-to-help-us-allies-force-open-strait-of-hormuz-1775023984485">UAE to join Iran war? Report claims Gulf nation to help US, allies force open Strait of Hormuz</a></p><h2>Iran targeted crucial military and fuel facilities of Gulf nations; layered defence under strain</h2><p>Iran has targeted US bases such as Prince Sultan in Saudi Arabia, Al Udeid in Qatar and Al Dhafra in the UAE, among others. Its missiles and drones have also hit ports and oil infrastructure.</p><p>Gulf states intercepted most of the threats, but the volume of attacks from Iran has created significant pressure.&nbsp;</p><p>Also read: <a href="https://www.wionews.com/world/-expect-destruction-irgc-threatens-attacks-on-us-firms-in-gulf-after-iran-leader-killings-which-companies-are-on-the-target-list-1774971791262">'Expect destruction': IRGC threatens attacks on US firms in Gulf after Iran leader killings. Which companies are on target list</a></p><h2>Interceptor missiles are expensive</h2><p>There is heavy dependence on US-supplied defence systems. Pre-war stockpiles of these specific interceptors were fewer than 2,800, whereas at least 2,400 have already been fired, leaving limited reserves.</p><p>They are not quickly replaceable in large quantities during active conflict, with Patriot PAC-3 missiles alone costing millions of dollars each.</p><p>Countries such as the UAE also use the US-made THAAD defence system, as well as fighter jets for intercepting drones and cruise missiles.&nbsp;</p><p>However, high-end ballistic interceptors are reserved for the most dangerous threats.</p><h2>Iranian strikes are getting through despite interceptions</h2><p>Some Iranian missiles or drones have managed to land in Gulf states and cause damage despite interception efforts.</p><p>Iran’s long-range missiles are harder to fully suppress.&nbsp;</p><p>Iran has managed to launch them from dispersed sites despite claims that US–Israel airstrikes have degraded two-thirds of these launchers.</p><h2>Gulf defence is running dry. Offence may be the next option</h2><p>Sustained Iranian attacks risk Gulf nations running out of key defensive munitions.</p><p>Some officials are privately questioning the security guarantees offered by the US, while others have reportedly asked it to ‘finish the job’ in order to deprive Iran of the ability to carry out such strikes in future.</p><p>This could eventually force them to join the war.</p><p><i><strong>Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.</strong></i></p>

Gulf nations are facing air defence strain as Iranian missile and drone attacks intensify. Interceptor stockpiles are depleting, raising concerns over security. This might force them to join the war 

Multiple reports suggest that Gulf nations are slowly running out of air defence capacity amid a barrage of Iranian missile and drone strikes in retaliation for US–Israel attacks on the Islamic Republic in the ongoing war. This is forcing nations such as Saudi Arabia and the UAE to consider joining the war against Iran after remaining on the defensive for the first month. Here is how the air defence systems are holding up against the Iranian strikes. Iran fired thousands of missiles and drones at Gulf nations A report in Bloomberg claimed that Iran has launched 1,200 ballistic missiles and 4,000 Shahed drones and cruise missiles at US bases and military assets in Gulf countries since the war began on 28 February. Iran also targeted oil and gas facilities in several nations, including Saudi Arabia, Qatar and Kuwait. This past weekend alone, around 40 Iranian missiles were launched in a single wave, which is twice the daily average, the report said. https://www.wionews.com/videos/us-president-says-securing-the-strait-of-hormuz-is-not-our-job-1775022284664/embed Gulf countries ended up firing double the number of interceptors The air defence systems of Gulf nations, mostly bought from the US, have fired more than 2,400 interceptors. This has nearly exhausted their pre-war stockpiles of these missiles, according to the Bloomberg report. This is because the defence systems often have to fire at least twice at each missile or drone based on the ‘shoot, shoot, look’ doctrine. This means interceptors are launched twice and then the results are assessed. By implication, it can be estimated that at least 2,400 interceptors were fired over the course of the war, perhaps more. This is because, at times, additional interceptor missiles are needed to defend against incoming projectiles, the Bloomberg report noted. Most of these interceptors were Patriot PAC-3 and GEM-T (Guidance Enhanced Missile–Tactical) missiles. Before the war, Gulf nations had fewer than 2,800 of these. Also read: UAE to join Iran war? Report claims Gulf nation to help US, allies force open Strait of Hormuz Iran targeted crucial military and fuel facilities of Gulf nations; layered defence under strain Iran has targeted US bases such as Prince Sultan in Saudi Arabia, Al Udeid in Qatar and Al Dhafra in the UAE, among others. Its missiles and drones have also hit ports and oil infrastructure. Gulf states intercepted most of the threats, but the volume of attacks from Iran has created significant pressure. Also read: 'Expect destruction': IRGC threatens attacks on US firms in Gulf after Iran leader killings. Which companies are on target list Interceptor missiles are expensive There is heavy dependence on US-supplied defence systems. Pre-war stockpiles of these specific interceptors were fewer than 2,800, whereas at least 2,400 have already been fired, leaving limited reserves. They are not quickly replaceable in large quantities during active conflict, with Patriot PAC-3 missiles alone costing millions of dollars each. Countries such as the UAE also use the US-made THAAD defence system, as well as fighter jets for intercepting drones and cruise missiles. However, high-end ballistic interceptors are reserved for the most dangerous threats. Iranian strikes are getting through despite interceptions Some Iranian missiles or drones have managed to land in Gulf states and cause damage despite interception efforts. Iran’s long-range missiles are harder to fully suppress. Iran has managed to launch them from dispersed sites despite claims that US–Israel airstrikes have degraded two-thirds of these launchers. Gulf defence is running dry. Offence may be the next option Sustained Iranian attacks risk Gulf nations running out of key defensive munitions. Some officials are privately questioning the security guarantees offered by the US, while others have reportedly asked it to ‘finish the job’ in order to deprive Iran of the ability to carry out such strikes in future. This could eventually force them to join the war. Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

<p>Gulf nations are facing air defence strain as Iranian missile and drone attacks intensify. Interceptor stockpiles are depleting, raising concerns over security. This might force them to join the war&nbsp;</p>

Iran war: Gulf states' air defences are under strain. It might force them to go on offensive

The war in West Asia between the US, Israel and Iran has caused widespread disruption in crude oil trade, as Iran started attacking facilities in Gulf States and disrupted the trade via Strait of Hormuz. Beyond the obvious products, each gallon of crude oil results in multiple products

<p>The war in West Asia between the US, Israel and Iran has caused widespread disruption in crude oil supply, as Iran started attacking facilities in Gulf States and disrupted the trade via Strait of Hormuz. Beyond the obvious products, each gallon of crude oil results in multiple products</p>

Crude oil is Black Gold: Iran war made us understand its importance, the hard way. How each barrel gives products we use daily

<p>An attack on a desalination plant in Iran, and the US President Donald Trump's threats and Iranian counterthreats, are increasing the risk that water-purifying facilities could be sitting ducks in the ongoing war. For nearly a century, desalination plants, which make the salty water in the region drinkable, have been the lifeline of the Gulf region. Any attack on them would render millions of people without water. Several desalination plants are operated by European and Asian companies, once again giving a global dimension to the Iran-US-Israel war. Here is what you should know about the consequences of a water war:</p><h2>Desalination is a lifeline for millions of people across the Gulf region</h2><p>In a region where natural freshwater is virtually non-existent due to an arid climate, minimal rainfall and depleted aquifers, desalination is the lifeline of the Gulf region.</p><p>In the UAE, nearly 42 per cent of drinking water comes through desalination plants , and up to 90 per cent in some emirates. The percentage is around 70 per cent in Saudi Arabia. For Qatar, it is 99 per cent of municipal and drinking water. For Kuwait, it is 90 per cent and for Oman, 86 per cent.</p><h2>Desalination plants also support industry and agriculture</h2><p>The GCC member countries produce nearly 40 per cent of the world’s desalinated water.</p><p>Without desalination plants, major cities like Dubai, Riyadh, Doha, Kuwait City, Muscat and Basra wouldn't be able to sustain current populations.</p><p>The daily per capita demand of up to 500 litres of water relies on desalinated seawater.</p><p>Amid population booms and climate change, dependence on desalination has increased for industry, agriculture and for holy sites like Hajj in Saudi Arabia.</p><p>Also read: <a href="https://www.wionews.com/photos/-water-war-trump-threatens-to-blow-up-iran-s-desalination-plants-how-could-retaliation-leave-gulf-cities-thirsty-1774938407674">'Water war': Trump threatens to blow up Iran’s desalination plants. How could retaliation leave Gulf cities thirsty?</a></p><h2>Sitting ducks: Attacks on desalination plants can lead to a humanitarian catastrophe</h2><p>Most desalination plants in the region are highly visible and large, located along coasts.&nbsp;</p><p>Many are located directly across the Gulf from Iran, within easy range of its missiles and drones.</p><p>In spite of their importance, which everyone knows, careless threats are being made against desalination plants by both sides in the Iran war.&nbsp;</p><p>A disruption would cause an immediate humanitarian catastrophe, including dehydration and halted services.</p><p>The long-term consequences could include economic collapse and potential mass displacement.</p><p>More than 90 per cent of Gulf desalinated water comes from just 56 large plants. A single-point failure could cut supply to millions within days.</p><p>Also read: <a href="https://www.wionews.com/world/indian-national-dies-in-iranian-attack-on-kuwait-power-plant-india-government-mea-embassy-response-1774828034256">Kuwait confirms death of Indian national in 'Iranian attack' on power, desalination plant; MEA yet to respond</a></p><h2>Desalination plant attacks are not new, but are rising</h2><p>Already, several Iranian and Gulf desalination plants have faced direct or indirect strikes. Iran has accused the US of hitting a Qeshm Island plant along the Strait of Hormuz, disrupting water supplies for 30 villages.</p><p>Bahrain reported an Iranian drone damaging one of its plants, while at least one person died in a similar attack in Kuwait.</p><p>Damage was reported at the UAE’s Fujairah F1 and Kuwait’s Doha West from missiles, drones or debris. Iran has explicitly threatened “irreversible destruction” of Gulf water infrastructure in retaliation for any further strikes on its energy or water systems by adversaries.</p><p>This is not the first time. In the 1991 Gulf War, Iraq damaged Kuwait’s desalination plants. Houthi rebels of Yemen have targeted desalination plants of adversaries in the recent past.</p><p><a href="https://www.wionews.com/videos/us-iran-war-iranian-drone-damages-desalination-plant-in-bahrain-1773007153294/embed">https://www.wionews.com/videos/us-iran-war-iranian-drone-damages-desalination-plant-in-bahrain-1773007153294/embed</a></p><h2>The global angle: Dozens of desalination plants are maanged or operated by foreign firms</h2><p>While up to 80 to 90 per cent of overall Gulf desalination infrastructure is state-owned or operated, dozens of desalination plants in the region have foreign co-ownership or are operated by foreign firms.</p><p>Leading players include ENGIE from France, which operates 13 plants across the region with 5.8 million m³/day total output.&nbsp;</p><p>Spain's Acciona/GS Inima operates and manages multiple plants in the UAE and Saudi Arabia.</p><p>Veolia from France, Mitsubishi and JERA from Japan, and PowerChina are also among the companies operating in the region.</p>

Callous threats by both the US and Iran are putting Gulf desalination plants at risk. Attacks on these plants, deliberate or accidental, could cut water supplies for millions. A humanitarian crisis in the short run, and economic collapse in the long term, could be the results

An attack on a desalination plant in Iran, and the US President Donald Trump's threats and Iranian counterthreats, are increasing the risk that water-purifying facilities could be sitting ducks in the ongoing war. For nearly a century, desalination plants, which make the salty water in the region drinkable, have been the lifeline of the Gulf region. Any attack on them would render millions of people without water. Several desalination plants are operated by European and Asian companies, once again giving a global dimension to the Iran-US-Israel war. Here is what you should know about the consequences of a water war: Desalination is a lifeline for millions of people across the Gulf region In a region where natural freshwater is virtually non-existent due to an arid climate, minimal rainfall and depleted aquifers, desalination is the lifeline of the Gulf region. In the UAE, nearly 42 per cent of drinking water comes through desalination plants , and up to 90 per cent in some emirates. The percentage is around 70 per cent in Saudi Arabia. For Qatar, it is 99 per cent of municipal and drinking water. For Kuwait, it is 90 per cent and for Oman, 86 per cent. Desalination plants also support industry and agriculture The GCC member countries produce nearly 40 per cent of the world’s desalinated water. Without desalination plants, major cities like Dubai, Riyadh, Doha, Kuwait City, Muscat and Basra wouldn't be able to sustain current populations. The daily per capita demand of up to 500 litres of water relies on desalinated seawater. Amid population booms and climate change, dependence on desalination has increased for industry, agriculture and for holy sites like Hajj in Saudi Arabia. Also read: 'Water war': Trump threatens to blow up Iran’s desalination plants. How could retaliation leave Gulf cities thirsty? Sitting ducks: Attacks on desalination plants can lead to a humanitarian catastrophe Most desalination plants in the region are highly visible and large, located along coasts. Many are located directly across the Gulf from Iran, within easy range of its missiles and drones. In spite of their importance, which everyone knows, careless threats are being made against desalination plants by both sides in the Iran war. A disruption would cause an immediate humanitarian catastrophe, including dehydration and halted services. The long-term consequences could include economic collapse and potential mass displacement. More than 90 per cent of Gulf desalinated water comes from just 56 large plants. A single-point failure could cut supply to millions within days. Also read: Kuwait confirms death of Indian national in 'Iranian attack' on power, desalination plant; MEA yet to respond Desalination plant attacks are not new, but are rising Already, several Iranian and Gulf desalination plants have faced direct or indirect strikes. Iran has accused the US of hitting a Qeshm Island plant along the Strait of Hormuz, disrupting water supplies for 30 villages. Bahrain reported an Iranian drone damaging one of its plants, while at least one person died in a similar attack in Kuwait. Damage was reported at the UAE’s Fujairah F1 and Kuwait’s Doha West from missiles, drones or debris. Iran has explicitly threatened “irreversible destruction” of Gulf water infrastructure in retaliation for any further strikes on its energy or water systems by adversaries. This is not the first time. In the 1991 Gulf War, Iraq damaged Kuwait’s desalination plants. Houthi rebels of Yemen have targeted desalination plants of adversaries in the recent past. https://www.wionews.com/videos/us-iran-war-iranian-drone-damages-desalination-plant-in-bahrain-1773007153294/embed The global angle: Dozens of desalination plants are maanged or operated by foreign firms While up to 80 to 90 per cent of overall Gulf desalination infrastructure is state-owned or operated, dozens of desalination plants in the region have foreign co-ownership or are operated by foreign firms. Leading players include ENGIE from France, which operates 13 plants across the region with 5.8 million m³/day total output. Spain's Acciona/GS Inima operates and manages multiple plants in the UAE and Saudi Arabia. Veolia from France, Mitsubishi and JERA from Japan, and PowerChina are also among the companies operating in the region.

<p>Callous threats by both the US and Iran are putting Gulf desalination plants at risk. Attacks on these plants, deliberate or accidental, could cut water supplies for millions. A humanitarian crisis in the short run, and economic collapse in the long term, could be the results</p>

Playing with fire, this time over water: Desalination, the lifeline of Gulf, could be Iran war targets if better sense does not prevail

<p>The Iran war is hitting the US where it hurts most: its own economy. In recent days, American markets have wiped out more than a trillion dollars in value, with indices hitting eight-month lows between March 26 and 30. Here are five key indicators showing that President Donald Trump’s Middle East outing is proving costly for American consumers and corporations, causing oil-price-driven inflation and a financial market rout.</p><h2>$1.2 trillion wiped off markets in a single day</h2><p>According to compiled data, at least $1.2 trillion was wiped off US markets in a single day. The S&amp;P 500 fell by 1.66 per cent, erasing around $1 trillion, while the Nasdaq dropped 2.09 per cent, losing about $600 billion, and the Dow fell by 1.2 per cent, shedding $300 billion. Late March is seeing some of the heaviest sell-off days.</p><p>Also read: <a href="https://www.wionews.com/world/gulf-tensions-explode-as-iran-hits-sets-ablaze-kuwaiti-oil-tanker-al-salmi-near-dubai-amid-war-with-us-and-israel-1774936019011">Gulf tensions explode as Iran hits, sets ablaze Kuwaiti oil tanker Al-Salmi near Dubai | Watch video</a></p><h2>US recession looming, according to prediction markets; corporate profits hit</h2><p>On the prediction website Polymarket, the odds favour a 37 per cent chance of a US recession by the end of 2026. This reflects crowd-sourced sentiment on war-driven risks to the American economy and businesses.</p><p>Corporate profits are being affected, and these costs are being passed on to consumers, leading to inflation as well as delays in investment and hiring. These factors are pushing recession odds to 37 per cent.</p><p>This represents real wealth destruction for 401(k)s, pensions and businesses. The financial conditions of both consumers and businesses are worsening faster than any Federal Reserve move could offset.</p><p>Also read: <a href="https://www.wionews.com/world/trump-willing-to-end-iran-war-without-reopening-strait-of-hormuz-1774923738453">Trump willing to end Iran war without reopening Strait of Hormuz: New report makes EXPLOSIVE claims</a></p><h2>US oil prices up by more than $50 a barrel</h2><p>The pressure of the war is slowly showing up at the pump. WTI crude was trading near $57 per barrel in late December. Now it is flirting with $106 a barrel, a surge of around $50. Brent crude is similarly between $100 and $110, marking one of the sharpest monthly price spikes on record.</p><p>The national average gasoline price is up 30 per cent in March, reaching $4 per gallon. Prices of diesel, jet fuel, and petrochemicals are also rising.</p><p>Supply-side shocks are occurring due to threats to the Strait of Hormuz, Iranian production and infrastructure risks, and its retaliatory targeting of Gulf energy infrastructure. Despite the US being a net oil exporter, oil prices represent a far greater cost of the war for it, outpacing its military spending. This is because the country still imports refined products and faces global pricing.&nbsp;</p><p><a href="https://www.wionews.com/videos/us-iran-war-rubio-says-talks-with-iran-ongoing-vows-hormuz-will-open-one-way-or-another-wion-1774942167548/embed">https://www.wionews.com/videos/us-iran-war-rubio-says-talks-with-iran-ongoing-vows-hormuz-will-open-one-way-or-another-wion-1774942167548/embed</a></p><h2>No cash for discretionary spending: US consumer economy takes a hit</h2><p>Consumer spending accounts for nearly 70 per cent of US GDP. Higher energy costs are hitting household spending, particularly on discretionary items such as travel and shopping, as disposable incomes are squeezed.</p><p>Demand is softening, with economists at Goldman Sachs and elsewhere raising 2026 inflation forecasts while trimming growth outlooks.</p><h2>Business margins are getting crushed</h2><p>Sectors linked to energy supply—such as transport, manufacturing, agriculture, and retail—are facing higher input and logistics costs.</p><p>In essence, this resembles the classic oil shocks of the 1970s.</p><p>This may become a key reason why Trump would want to end the war quickly, allowing oil flows to normalise through diplomacy or de-escalation.</p>

The Iran war is battering the US economy, wiping out $1.2 trillion in market value in a single day. The oil price shocks are increasingly looking like the 1970s. Inflation is creeping in,  and recession risks are looming

The Iran war is hitting the US where it hurts most: its own economy. In recent days, American markets have wiped out more than a trillion dollars in value, with indices hitting eight-month lows between March 26 and 30. Here are five key indicators showing that President Donald Trump’s Middle East outing is proving costly for American consumers and corporations, causing oil-price-driven inflation and a financial market rout. $1.2 trillion wiped off markets in a single day According to compiled data, at least $1.2 trillion was wiped off US markets in a single day. The S&P 500 fell by 1.66 per cent, erasing around $1 trillion, while the Nasdaq dropped 2.09 per cent, losing about $600 billion, and the Dow fell by 1.2 per cent, shedding $300 billion. Late March is seeing some of the heaviest sell-off days. Also read: Gulf tensions explode as Iran hits, sets ablaze Kuwaiti oil tanker Al-Salmi near Dubai | Watch video US recession looming, according to prediction markets; corporate profits hit On the prediction website Polymarket, the odds favour a 37 per cent chance of a US recession by the end of 2026. This reflects crowd-sourced sentiment on war-driven risks to the American economy and businesses. Corporate profits are being affected, and these costs are being passed on to consumers, leading to inflation as well as delays in investment and hiring. These factors are pushing recession odds to 37 per cent. This represents real wealth destruction for 401(k)s, pensions and businesses. The financial conditions of both consumers and businesses are worsening faster than any Federal Reserve move could offset. Also read: Trump willing to end Iran war without reopening Strait of Hormuz: New report makes EXPLOSIVE claims US oil prices up by more than $50 a barrel The pressure of the war is slowly showing up at the pump. WTI crude was trading near $57 per barrel in late December. Now it is flirting with $106 a barrel, a surge of around $50. Brent crude is similarly between $100 and $110, marking one of the sharpest monthly price spikes on record. The national average gasoline price is up 30 per cent in March, reaching $4 per gallon. Prices of diesel, jet fuel, and petrochemicals are also rising. Supply-side shocks are occurring due to threats to the Strait of Hormuz, Iranian production and infrastructure risks, and its retaliatory targeting of Gulf energy infrastructure. Despite the US being a net oil exporter, oil prices represent a far greater cost of the war for it, outpacing its military spending. This is because the country still imports refined products and faces global pricing. https://www.wionews.com/videos/us-iran-war-rubio-says-talks-with-iran-ongoing-vows-hormuz-will-open-one-way-or-another-wion-1774942167548/embed No cash for discretionary spending: US consumer economy takes a hit Consumer spending accounts for nearly 70 per cent of US GDP. Higher energy costs are hitting household spending, particularly on discretionary items such as travel and shopping, as disposable incomes are squeezed. Demand is softening, with economists at Goldman Sachs and elsewhere raising 2026 inflation forecasts while trimming growth outlooks. Business margins are getting crushed Sectors linked to energy supply—such as transport, manufacturing, agriculture, and retail—are facing higher input and logistics costs. In essence, this resembles the classic oil shocks of the 1970s. This may become a key reason why Trump would want to end the war quickly, allowing oil flows to normalise through diplomacy or de-escalation.

<p>The Iran war is battering the US economy, wiping out $1.2 trillion in market value in a single day. The oil price shocks are increasingly looking like the 1970s. Inflation is creeping in, &nbsp;and recession risks are looming</p>

$1.2 trillion erased in a single day, US recession looming – 5 ways the Iran war is hitting America where it hurts most: its own economy

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