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As the Israel–Iran conflict enters its second week, the battleground is no longer limited to the skies. Both nations are now locked in a parallel war of numbers, where missile interceptions cost millions, oil exports vanish overnight, and households brace for tax hikes.&nbsp;For Israel, already burdened by long-running conflicts in Gaza and Lebanon, the question is urgent: Can Tel Aviv’s economy afford another war? For Iran, with its currency in freefall and energy infrastructure under siege, the challenge is one of endurance.&nbsp;And now, there’s a new risk looming on the horizon: the potential closure of the Strait of Hormuz, one of the world’s most critical energy chokepoints.Here’s a deep dive into how the war is straining both nations militarily, fiscally, and economically and what could happen if Tehran acts on its threat.<h2>Israel’s most expensive war yet</h2>In the first 48 hours alone, Israel’s confrontation with Iran reportedly cost a staggering 5.5 billion shekels ($1.45 billion), according to Ynet News.That reportedly amounts to over $700 million per day, and if hostilities continue for a month, the cost could cross $12 billion, surpassing the final bill for the 2023 Gaza war.&nbsp;Driving these soaring costs are Israel’s advanced defence systems. Each David’s Sling or Arrow-3 missile interception costs anywhere between $700,000 and $4 million, as reported by the Institute for National Security Studies.The deployment of F-35 fighter jets over Iranian territory adds further strain, with flight operations costing $10,000 per hour per jet, excluding ammunition and logistics.&nbsp;Israel could reportedly be spending up to $1 billion per day on military operations alone.<h2>Budget pressures and the deficit test</h2>To fund this military mobilisation, Israel has significantly expanded its defence budget, from $17 billion in 2023 to $28 billion in 2024, and a projected $34 billion in 2025. That would amount to nearly 9 per cent of GDP, second only to Ukraine, according to SIPRI.To finance the surge, the government has increased Value Added Tax (VAT) to 18 per cent, alongside hikes in healthcare and national insurance. However, these measures may fall short.&nbsp;The Ministry of Finance warns that Israel could breach its 4.9 per cent deficit ceiling (approximately $27.6 billion). Compounding the issue, GDP growth forecasts for 2025 have been slashed, from 4.3 per cent to 3.6 per cent, according to the Israel Central Bureau of Statistics.<h2>Civilian costs add to the burden</h2>The economic impact of the war is being felt far beyond the battlefield. Over 5,000 Israeli civilians have been evacuated due to missile strikes from Iran, with the government footing the bill for temporary accommodation in hotels, as per Israel’s National Public Diplomacy Directorate.Damage to urban infrastructure is extensive. Engineers quoted by Reuters say restoring just one damaged skyscraper in Tel Aviv could cost tens of millions of dollars.&nbsp;Meanwhile, day-to-day life remains disrupted: Israel’s main international airport was shut for several days, schools remain closed, and only partial workplace re-openings have been permitted by civil defence authorities.<h2>Tech resilience vs workforce crunch</h2>Israel’s high-tech sector remains a relative bright spot. Contributing 20 per cent of GDP and 64 per cent of national exports, the industry has shown resilience even during wartime.&nbsp;&nbsp;The Tel Aviv Stock Exchange continues to outperform global peers, reflecting cautious investor confidence.&nbsp;Yet cracks are emerging. For the first time in a decade, employment in the tech sector declined in 2024, according to the Israel Innovation Authority. Skilled workers are increasingly choosing to relocate abroad, triggering fears of a brain drain.&nbsp;At the same time, widespread reservist call-ups, the cancellation of Palestinian work permits, and logistical bottlenecks have caused over 60,000 Israeli firms to shut down this year, as reported by CofaceBDI.<h2>What if Iran closes the Strait of Hormuz?</h2>Amid mounting pressure, Iran has repeated its long-standing threat: to close the Strait of Hormuz. This narrow waterway, just 33 kilometres wide, is the world’s most critical oil transit chokepoint.&nbsp;Every day, around 21 million barrels of crude oil and over one-third of global liquefied natural gas (LNG) flow through this strait.It connects the Persian Gulf to global markets, enabling energy exports from Saudi Arabia, Iraq, Kuwait, Iran, and the UAE, most of which head to Asia.&nbsp;While Tehran has made similar threats in the past, it has never fully acted. Even during the 1980s “Tanker War,” when over 450 vessels were attacked, the Strait remained partially open. Today, the threat alone is enough to rattle global markets.&nbsp;According to Kpler, oil prices have already jumped, with Brent crude touching a five-month high. Analysts warn that if Iran attempts even a partial blockade, prices could cross $100 per barrel.&nbsp;However, a closure would hurt Iran, too. Over 90 per cent of Iranian oil, much of it routed unofficiallygoes to China.&nbsp;If the Strait shuts down, Tehran risks cutting off its own revenue lifeline. China, Iran’s top buyer, is unlikely to support such a move.The US, which sources most of its oil from Canada, would remain relatively insulated. Israel imports oil via the Mediterranean, largely from Azerbaijan, Gabon, and the US, so its direct exposure is minimal.&nbsp;But nations like India, Japan, and South Korea—heavily reliant on Gulf energy would face severe supply disruptions. Insurance and shipping costs through the Strait have already spiked amid growing security concerns.&nbsp;In short: the Strait of Hormuz is the global oil artery. Even short-term disruptions could cause lasting economic shockwaves.<h2>Oil market enters panic zone</h2>The financial markets are already showing signs of strain.&nbsp;From below $63 a barrel at the end of May, Brent crude surged above $77, driven by fears of conflict escalation, as per Reuters. While prices briefly fell by 2 per cent on Friday, Brent is still set for its third straight weekly gain.&nbsp;Citigroup has warned that if Iran closes the Strait of Hormuz, oil could spike to $90. Jennifer McKeown, chief global economist at Capital Economics, says if the US becomes directly involved in the war, Brent could surge to as high as $130–$150 per barrel.&nbsp;Almost 20 per cent of global oil flows through the Strait, making it a critical vulnerability. Current Brent prices also carry a $10 geopolitical premium, according to traders quoted by Bloomberg.&nbsp;Meanwhile, China’s record oil stockpiles are offering some buffer. As the biggest buyer of Iranian crude, Chinese refiners remain calm for now despite the crisis building in West Asia.&nbsp;However, a further jump in crude could derail monetary easing plans by central banks. A surge in oil-driven inflation is a risk major economies want to avoid, especially amid Trump’s renewed tariff policies.&nbsp;As Reuters reports, central banks are likely to delay rate cuts if oil breaches the $100 threshold again. For now, markets are bracing for volatility but haven’t fully priced in the worst-case scenario yet.<h2>What about Iran’s economy?</h2>Iran, long under US-led sanctions, is facing fresh economic wounds as Israeli airstrikes target its energy infrastructure.&nbsp;According to Kpler, Iranian oil exports have fallen sharply, from 242,000 barrels per day earlier this year to just 102,000 bpd in the week ending June 16. Israeli missiles have partially disabled the South Pars gas field, which is responsible for 80 per cent of Iran’s natural gas production.&nbsp;Meanwhile, Kharg Island, Iran’s primary export terminal for crude oil—has seen no tanker movement since last Friday, based on LSEG satellite data. That effectively freezes most of Iran’s seaborne oil exports.<h2>Tehran’s finances under fire</h2>Even before the latest conflict, Iran’s economy was running on thin margins. The Iranian rial has lost over 90 per cent of its value since 2018.Inflation is officially at 40 per cent, but independent analysts such as TS Lombard estimate it could be even higher.&nbsp;Iran’s oil revenue, once exceeding $100 billion in 2016—was just $50 billion across 2022–23, according to the US Energy Information Administration.Roughly 22–27 per cent of Iranians now live below the poverty line, according to the Institute of Labour and Social Welfare, as cited by Tasnim News.Tehran allocates about 3–5 per cent of GDP, around $12 billion annually for military purposes.&nbsp;&nbsp;While its $33 billion in foreign reserves provides a cushion, analysts warn that using these reserves to fund extended military operations would threaten Iran’s long-term solvency.<h2>Who will blink first?</h2>Both Israel and Iran are approaching economic red lines.&nbsp;For Israel, the challenge lies in juggling three simultaneous fronts—Gaza, Lebanon, and Iran—without crossing critical fiscal thresholds. Ratings agency S&amp;P has hinted that a prolonged conflict could trigger a credit downgrade, raising Israel’s borrowing costs and spooking investors.Iran’s situation is arguably more precarious. With energy revenues slashed, inflation surging, and no real access to global financial systems, Tehran has fewer levers to pull.&nbsp;Unlike Israel, it cannot borrow easily or attract foreign investment.&nbsp;Neither side wants a drawn-out war. But every extra day of conflict piles on economic risk and tests national endurance.As this isn’t just a military clash—it’s a test of economic survival. &nbsp;

Amid mounting pressure, Iran has repeated its long-standing threat: to close the Strait of Hormuz. This narrow waterway, just 33 kilometres wide, is the world’s most critical oil transit chokepoint.

As the Israel–Iran conflict enters its second week, the battleground is no longer limited to the skies. Both nations are now locked in a parallel war of numbers, where missile interceptions cost millions, oil exports vanish overnight, and households brace for tax hikes. For Israel, already burdened by long-running conflicts in Gaza and Lebanon, the question is urgent: Can Tel Aviv’s economy afford another war? For Iran, with its currency in freefall and energy infrastructure under siege, the challenge is one of endurance. And now, there’s a new risk looming on the horizon: the potential closure of the Strait of Hormuz, one of the world’s most critical energy chokepoints. Here’s a deep dive into how the war is straining both nations militarily, fiscally, and economically and what could happen if Tehran acts on its threat. Israel’s most expensive war yet In the first 48 hours alone, Israel’s confrontation with Iran reportedly cost a staggering 5.5 billion shekels ($1.45 billion), according to Ynet News. That reportedly amounts to over $700 million per day, and if hostilities continue for a month, the cost could cross $12 billion, surpassing the final bill for the 2023 Gaza war. Driving these soaring costs are Israel’s advanced defence systems. Each David’s Sling or Arrow-3 missile interception costs anywhere between $700,000 and $4 million, as reported by the Institute for National Security Studies. The deployment of F-35 fighter jets over Iranian territory adds further strain, with flight operations costing $10,000 per hour per jet, excluding ammunition and logistics. Israel could reportedly be spending up to $1 billion per day on military operations alone. Budget pressures and the deficit test To fund this military mobilisation, Israel has significantly expanded its defence budget, from $17 billion in 2023 to $28 billion in 2024, and a projected $34 billion in 2025. That would amount to nearly 9 per cent of GDP, second only to Ukraine, according to SIPRI. To finance the surge, the government has increased Value Added Tax (VAT) to 18 per cent, alongside hikes in healthcare and national insurance. However, these measures may fall short. The Ministry of Finance warns that Israel could breach its 4.9 per cent deficit ceiling (approximately $27.6 billion). Compounding the issue, GDP growth forecasts for 2025 have been slashed, from 4.3 per cent to 3.6 per cent, according to the Israel Central Bureau of Statistics. Civilian costs add to the burden The economic impact of the war is being felt far beyond the battlefield. Over 5,000 Israeli civilians have been evacuated due to missile strikes from Iran, with the government footing the bill for temporary accommodation in hotels, as per Israel’s National Public Diplomacy Directorate. Damage to urban infrastructure is extensive. Engineers quoted by Reuters say restoring just one damaged skyscraper in Tel Aviv could cost tens of millions of dollars. Meanwhile, day-to-day life remains disrupted: Israel’s main international airport was shut for several days, schools remain closed, and only partial workplace re-openings have been permitted by civil defence authorities. Tech resilience vs workforce crunch Israel’s high-tech sector remains a relative bright spot. Contributing 20 per cent of GDP and 64 per cent of national exports, the industry has shown resilience even during wartime. The Tel Aviv Stock Exchange continues to outperform global peers, reflecting cautious investor confidence. Yet cracks are emerging. For the first time in a decade, employment in the tech sector declined in 2024, according to the Israel Innovation Authority. Skilled workers are increasingly choosing to relocate abroad, triggering fears of a brain drain. At the same time, widespread reservist call-ups, the cancellation of Palestinian work permits, and logistical bottlenecks have caused over 60,000 Israeli firms to shut down this year, as reported by CofaceBDI. What if Iran closes the Strait of Hormuz? Amid mounting pressure, Iran has repeated its long-standing threat: to close the Strait of Hormuz. This narrow waterway, just 33 kilometres wide, is the world’s most critical oil transit chokepoint. Every day, around 21 million barrels of crude oil and over one-third of global liquefied natural gas (LNG) flow through this strait. It connects the Persian Gulf to global markets, enabling energy exports from Saudi Arabia, Iraq, Kuwait, Iran, and the UAE, most of which head to Asia. While Tehran has made similar threats in the past, it has never fully acted. Even during the 1980s “Tanker War,” when over 450 vessels were attacked, the Strait remained partially open. Today, the threat alone is enough to rattle global markets. According to Kpler, oil prices have already jumped, with Brent crude touching a five-month high. Analysts warn that if Iran attempts even a partial blockade, prices could cross $100 per barrel. However, a closure would hurt Iran, too. Over 90 per cent of Iranian oil, much of it routed unofficiallygoes to China. If the Strait shuts down, Tehran risks cutting off its own revenue lifeline. China, Iran’s top buyer, is unlikely to support such a move. The US, which sources most of its oil from Canada, would remain relatively insulated. Israel imports oil via the Mediterranean, largely from Azerbaijan, Gabon, and the US, so its direct exposure is minimal. But nations like India, Japan, and South Korea—heavily reliant on Gulf energy would face severe supply disruptions. Insurance and shipping costs through the Strait have already spiked amid growing security concerns. In short: the Strait of Hormuz is the global oil artery. Even short-term disruptions could cause lasting economic shockwaves. Oil market enters panic zone The financial markets are already showing signs of strain. From below $63 a barrel at the end of May, Brent crude surged above $77, driven by fears of conflict escalation, as per Reuters. While prices briefly fell by 2 per cent on Friday, Brent is still set for its third straight weekly gain. Citigroup has warned that if Iran closes the Strait of Hormuz, oil could spike to $90. Jennifer McKeown, chief global economist at Capital Economics, says if the US becomes directly involved in the war, Brent could surge to as high as $130–$150 per barrel. Almost 20 per cent of global oil flows through the Strait, making it a critical vulnerability. Current Brent prices also carry a $10 geopolitical premium, according to traders quoted by Bloomberg. Meanwhile, China’s record oil stockpiles are offering some buffer. As the biggest buyer of Iranian crude, Chinese refiners remain calm for now despite the crisis building in West Asia. However, a further jump in crude could derail monetary easing plans by central banks. A surge in oil-driven inflation is a risk major economies want to avoid, especially amid Trump’s renewed tariff policies. As Reuters reports, central banks are likely to delay rate cuts if oil breaches the $100 threshold again. For now, markets are bracing for volatility but haven’t fully priced in the worst-case scenario yet. What about Iran’s economy? Iran, long under US-led sanctions, is facing fresh economic wounds as Israeli airstrikes target its energy infrastructure. According to Kpler, Iranian oil exports have fallen sharply, from 242,000 barrels per day earlier this year to just 102,000 bpd in the week ending June 16. Israeli missiles have partially disabled the South Pars gas field, which is responsible for 80 per cent of Iran’s natural gas production. Meanwhile, Kharg Island, Iran’s primary export terminal for crude oil—has seen no tanker movement since last Friday, based on LSEG satellite data. That effectively freezes most of Iran’s seaborne oil exports. Tehran’s finances under fire Even before the latest conflict, Iran’s economy was running on thin margins. The Iranian rial has lost over 90 per cent of its value since 2018. Inflation is officially at 40 per cent, but independent analysts such as TS Lombard estimate it could be even higher. Iran’s oil revenue, once exceeding $100 billion in 2016—was just $50 billion across 2022–23, according to the US Energy Information Administration. Roughly 22–27 per cent of Iranians now live below the poverty line, according to the Institute of Labour and Social Welfare, as cited by Tasnim News. Tehran allocates about 3–5 per cent of GDP, around $12 billion annually for military purposes. While its $33 billion in foreign reserves provides a cushion, analysts warn that using these reserves to fund extended military operations would threaten Iran’s long-term solvency. Who will blink first? Both Israel and Iran are approaching economic red lines. For Israel, the challenge lies in juggling three simultaneous fronts—Gaza, Lebanon, and Iran—without crossing critical fiscal thresholds. Ratings agency S&P has hinted that a prolonged conflict could trigger a credit downgrade, raising Israel’s borrowing costs and spooking investors. Iran’s situation is arguably more precarious. With energy revenues slashed, inflation surging, and no real access to global financial systems, Tehran has fewer levers to pull. Unlike Israel, it cannot borrow easily or attract foreign investment. Neither side wants a drawn-out war. But every extra day of conflict piles on economic risk and tests national endurance. As this isn’t just a military clash—it’s a test of economic survival.

From missile defence bills to shrinking oil exports and inflation crises , Israel and Iran are both waging wars their economies might not afford. Here’s how the fighting is reshaping financial futures in West Asia.

Israel–Iran war strains economies: What happens if Strait of Hormuz shuts down?

The World Bank is sounding the alarm over a growing lack of transparency in how developing countries borrow money. In a new report released on Friday, the Bank called for “radical debt transparency”, urging both borrowers and lenders to reveal more detailed information about sovereign loans to prevent future financial crises.&nbsp;The warning comes amid rising concern over off-budget borrowing, opaque financial contracts, and secretive debt arrangements that are making it harder to assess the true financial health of many nations, particularly across Africa, Asia, and low-income economies.&nbsp;“When hidden debt surfaces, financing dries up and terms worsen,” said Axel van Trotsenburg, the World Bank’s senior managing director, as quoted by Reuters.&nbsp;“Radical debt transparency, which makes timely and reliable information accessible, is fundamental to break the cycle.”<h2>Why is debt transparency so urgent?</h2>As market volatility, inflation, and geopolitical tensions strain government budgets, many countries are resorting to complex and unconventional borrowing methods, such as central bank currency swaps, private debt placements, and collateral-backed loans—to raise funds.&nbsp;These financial instruments often bypass standard budget reporting, making it increasingly difficult for lenders, credit agencies, and even citizens to track a country’s real debt burden.&nbsp;According to the World Bank, more than 75 per cent of low-income countries now report some debt data, a significant rise from below 60 per cent in 2020.&nbsp;&nbsp;However, only 25 per cent disclose loan-by-loan information, meaning that in most cases, the specifics of individual loan agreements remain hidden from the public and global financial institutions.<h2>Countries under pressure&nbsp;</h2>Several nations are already facing the consequences of opaque debt structures.&nbsp;Senegal, for instance, has turned to private debt placements while engaging in talks with the International Monetary Fund (IMF) over misreporting of earlier obligations.&nbsp;&nbsp;In Nigeria, the central bank revealed in early 2023 that billions of dollars in foreign exchange reserves were tied up in secretive financial contracts signed by the previous administration.&nbsp;Angola was recently forced to pay a $200 million margin call after a sharp fall in its bond prices. Meanwhile, Cameroon and Gabon have been linked to so-called “off-screen” borrowing arrangements, raising fresh concerns over undisclosed public liabilities in the region.<h2>What the World Bank wants</h2>To prevent a systemic crisis, the World Bank is urging governments to undertake legal reforms and adopt stricter reporting mechanisms. These include mandatory disclosure of new debt agreements and greater transparency from both lenders and sovereign borrowers.&nbsp;The Bank has outlined a five-point plan:      •     Legal changes: Make loan contract transparency a legal obligation.      •     Public disclosures: Publish loan-by-loan data and the terms of any debt restructurings.      •     Creditor openness: Require lenders to disclose their loan and guarantee portfolios.      •     Regular audits: Improve oversight through independent and timely reviews.      •     Enhanced IMF tools: Equip global financial institutions to better detect debt misreporting.&nbsp;As quoted by Reuters, the Bank believes broader debt coverage and deeper, granular loan-level disclosures will help the global community accurately assess debt risks and exposures across emerging economies.<h2>A broader warning for the global debt market</h2>The World Bank’s message isn’t just for governments. It is also a direct challenge to creditors, especially those who operate outside traditional international lending frameworks.&nbsp;In recent years, Chinese policy banks, Gulf state funds, and private bondholders have taken on a greater share of developing country lending, often through non-concessional loans that are not subject to transparency conditions or multilateral oversight.&nbsp;With interest rates remaining high and global credit access tightening, the Bank warned that without transparency, countries could quickly slide from debt distress into full-blown financial crises.&nbsp;&nbsp;(With inputs from the agencies)&nbsp;

Concerns arise over off-budget borrowing and undisclosed debt arrangements, complicating financial assessments for nations, particularly in Africa and Asia. 

The World Bank is sounding the alarm over a growing lack of transparency in how developing countries borrow money. In a new report released on Friday, the Bank called for “radical debt transparency”, urging both borrowers and lenders to reveal more detailed information about sovereign loans to prevent future financial crises. The warning comes amid rising concern over off-budget borrowing, opaque financial contracts, and secretive debt arrangements that are making it harder to assess the true financial health of many nations, particularly across Africa, Asia, and low-income economies. “When hidden debt surfaces, financing dries up and terms worsen,” said Axel van Trotsenburg, the World Bank’s senior managing director, as quoted by Reuters. “Radical debt transparency, which makes timely and reliable information accessible, is fundamental to break the cycle.” Why is debt transparency so urgent? As market volatility, inflation, and geopolitical tensions strain government budgets, many countries are resorting to complex and unconventional borrowing methods, such as central bank currency swaps, private debt placements, and collateral-backed loans—to raise funds. These financial instruments often bypass standard budget reporting, making it increasingly difficult for lenders, credit agencies, and even citizens to track a country’s real debt burden. According to the World Bank, more than 75 per cent of low-income countries now report some debt data, a significant rise from below 60 per cent in 2020. However, only 25 per cent disclose loan-by-loan information, meaning that in most cases, the specifics of individual loan agreements remain hidden from the public and global financial institutions. Countries under pressure Several nations are already facing the consequences of opaque debt structures. Senegal, for instance, has turned to private debt placements while engaging in talks with the International Monetary Fund (IMF) over misreporting of earlier obligations. In Nigeria, the central bank revealed in early 2023 that billions of dollars in foreign exchange reserves were tied up in secretive financial contracts signed by the previous administration. Angola was recently forced to pay a $200 million margin call after a sharp fall in its bond prices. Meanwhile, Cameroon and Gabon have been linked to so-called “off-screen” borrowing arrangements, raising fresh concerns over undisclosed public liabilities in the region. What the World Bank wants To prevent a systemic crisis, the World Bank is urging governments to undertake legal reforms and adopt stricter reporting mechanisms. These include mandatory disclosure of new debt agreements and greater transparency from both lenders and sovereign borrowers. The Bank has outlined a five-point plan:       •     Legal changes: Make loan contract transparency a legal obligation.       •     Public disclosures: Publish loan-by-loan data and the terms of any debt restructurings.       •     Creditor openness: Require lenders to disclose their loan and guarantee portfolios.       •     Regular audits: Improve oversight through independent and timely reviews.       •     Enhanced IMF tools: Equip global financial institutions to better detect debt misreporting. As quoted by Reuters, the Bank believes broader debt coverage and deeper, granular loan-level disclosures will help the global community accurately assess debt risks and exposures across emerging economies. A broader warning for the global debt market The World Bank’s message isn’t just for governments. It is also a direct challenge to creditors, especially those who operate outside traditional international lending frameworks. In recent years, Chinese policy banks, Gulf state funds, and private bondholders have taken on a greater share of developing country lending, often through non-concessional loans that are not subject to transparency conditions or multilateral oversight. With interest rates remaining high and global credit access tightening, the Bank warned that without transparency, countries could quickly slide from debt distress into full-blown financial crises. (With inputs from the agencies)

The World Bank warns of increasing opacity in developing countries' borrowing practices, advocating for “radical debt transparency” in a recent report.

Why is the World Bank demanding radical debt transparency now?

Alphabet’s Google is bracing for another legal setback in Europe after a senior adviser to the EU’s top court sided with antitrust regulators in a long-running case over its Android operating system.&nbsp;&nbsp;The case concerns a record €4.34 billion ($4.98 billion) fine imposed by the European Commission in 2018, which found that Google had unlawfully used Android to cement its dominance in search and mobile services.&nbsp;As reported by Reuters, Advocate-General Juliane Kokott at the Court of Justice of the European Union (CJEU) advised judges to dismiss Google’s appeal and uphold a reduced €4.1 billion ($4.7 billion) fine set by a lower tribunal in 2022.<h2>Legal setback&nbsp;</h2>Kokott’s opinion is not legally binding, but EU judges follow such recommendations in four out of five cases. A final ruling is expected in the coming months.&nbsp;“The legal arguments put forward by Google are ineffective,” Kokott said in her statement, as quoted by Reuters.&nbsp;She rejected Google’s argument that regulators should assess its conduct by comparing it to a hypothetical “as-efficient competitor.”&nbsp;“It is not realistic to compare Google’s position with a hypothetical rival in this context. Google held a dominant position in several Android-related markets and benefited from strong network effects,” she told Reuters.&nbsp;<h2>What the case is about?</h2>The case centres around Android, Google’s mobile operating system, which powers around 73 per cent of global smartphones, according to Statcounter.&nbsp;The European Commission’s 2018 decision found that Google had abused its dominance by:<ul><li>Forcing device manufacturers to pre-install Google Search and Chrome browser alongside the Google Play Store.</li><li>Blocking manufacturers from using alternative, non-Google versions of Android.</li><li>Offering financial incentives to pre-install only Google Search, crowding out competition.</li></ul>These practices, according to the Commission, restricted consumer choice and stifled innovation by preventing rivals from gaining a foothold in mobile ecosystems.<h2>Google’s response</h2>Google, which has maintained Android as a free and open-source platform, criticised the opinion. A spokesperson said to Reuters that, “Android has created more choice for everyone and supports thousands of successful businesses in Europe and around the world.”&nbsp;“We are disappointed with the Opinion which, if it were followed by the Court, would discourage investment in open platforms and harm Android users, partners and app developers,” the spokesperson told Reuters.<h2>The bigger picture</h2>The Android case is one of three major antitrust battles Google has faced in the European Union over the past decade.&nbsp;&nbsp;Combined, they have resulted in €8.25 billion ($9.47 billion) in fines to date, making Google the EU’s most heavily penalised Big Tech company.&nbsp;Previous EU antitrust fines against Google:

<figure class="table"><table><tbody><tr><td>Year</td><td>Case</td><td>Fine</td></tr><tr><td>2017</td><td>Google Shopping</td><td>€2.42 billion ($2.78B)</td></tr><tr><td>2018</td><td>Android anti-competition</td><td>€4.34 billion ($4.98B)*</td></tr><tr><td>2019</td><td>AdSense advertising practices</td><td>€1.49 billion ($1.71B)</td></tr></tbody></table></figure>((*Reduced to €4.1 billion ($4.7B) by General Court in 2022))Source: European Commission, as reported by Reuters

<h2>Why it matters</h2>This case could set a precedent for how dominant tech firms are allowed to bundle services within their ecosystems. It’s also central to the EU’s broader campaign to rein in the power of Big Tech under its Digital Markets Act (DMA), which seeks to impose stricter obligations on so-called “gatekeepers.”&nbsp;Legal analysts say if the final judgment aligns with Kokott’s opinion, it could embolden regulators across the EU and elsewhere to take more aggressive action against platform bundling and default service arrangements, as per Reuters.<h2>What’s next?</h2>The final ruling from the CJEU in the case C-738/22 P Google and Alphabet v Commission is expected later this year.&nbsp;&nbsp;While the judgment will close the chapter on this specific Android case, Google continues to face additional antitrust investigations in both the EU and the US over its advertising and app store businesses.&nbsp;Meanwhile, Brussels is already preparing for the enforcement phase of the Digital Markets Act, which could lead to new compliance demands for Google, Apple, Meta, Amazon, and others.&nbsp;(With inputs from the agencies) &nbsp;

The case involves a €4.34 billion fine imposed in 2018 for maintaining dominance in mobile services.

Alphabet’s Google is bracing for another legal setback in Europe after a senior adviser to the EU’s top court sided with antitrust regulators in a long-running case over its Android operating system. The case concerns a record €4.34 billion ($4.98 billion) fine imposed by the European Commission in 2018, which found that Google had unlawfully used Android to cement its dominance in search and mobile services. As reported by Reuters, Advocate-General Juliane Kokott at the Court of Justice of the European Union (CJEU) advised judges to dismiss Google’s appeal and uphold a reduced €4.1 billion ($4.7 billion) fine set by a lower tribunal in 2022. Legal setback Kokott’s opinion is not legally binding, but EU judges follow such recommendations in four out of five cases. A final ruling is expected in the coming months. “The legal arguments put forward by Google are ineffective,” Kokott said in her statement, as quoted by Reuters. She rejected Google’s argument that regulators should assess its conduct by comparing it to a hypothetical “as-efficient competitor.” “It is not realistic to compare Google’s position with a hypothetical rival in this context. Google held a dominant position in several Android-related markets and benefited from strong network effects,” she told Reuters. What the case is about? The case centres around Android, Google’s mobile operating system, which powers around 73 per cent of global smartphones, according to Statcounter. The European Commission’s 2018 decision found that Google had abused its dominance by: Forcing device manufacturers to pre-install Google Search and Chrome browser alongside the Google Play Store. Blocking manufacturers from using alternative, non-Google versions of Android. Offering financial incentives to pre-install only Google Search, crowding out competition. These practices, according to the Commission, restricted consumer choice and stifled innovation by preventing rivals from gaining a foothold in mobile ecosystems. Google’s response Google, which has maintained Android as a free and open-source platform, criticised the opinion. A spokesperson said to Reuters that, “Android has created more choice for everyone and supports thousands of successful businesses in Europe and around the world.” “We are disappointed with the Opinion which, if it were followed by the Court, would discourage investment in open platforms and harm Android users, partners and app developers,” the spokesperson told Reuters. The bigger picture The Android case is one of three major antitrust battles Google has faced in the European Union over the past decade. Combined, they have resulted in €8.25 billion ($9.47 billion) in fines to date, making Google the EU’s most heavily penalised Big Tech company. Previous EU antitrust fines against Google:

Alphabet’s Google faces a potential legal setback in Europe as an EU court adviser supported antitrust regulators in a case concerning its Android operating system.

Google faces EU court blow in $5 billion Android antitrust case: Details here

Japan’s consumer prices have surged to the fastest pace in two years, placing economic pressure firmly at the centre of the country’s upcoming upper house election.&nbsp;&nbsp;The rise in costs, led by a sharp increase in food prices, especially rice is expected to shape both political and monetary decisions in the weeks ahead.&nbsp;As per Japan’s Ministry of Internal Affairs, core consumer prices (excluding fresh food) rose 3.7 per cent in May from a year earlier. This marks the third consecutive monthly acceleration and the fastest pace since January 2023, exceeding the 3.6 per cent median forecast of economists surveyed by Bloomberg.<h2>Japan’s inflation trend</h2>The latest inflation figure is in line with a broader upward trend in prices observed over the past year. Government data shows that core CPI had eased temporarily in 2023, but began rising again in late 2024 due to cost pressures from food, energy, and imports. The current 3.7 per cent figure is the highest since January 2023, as visualised in the chart below.&nbsp;

<figure class="table"><table><tbody><tr><td>Month-Year</td><td>CPI YoY (%)</td></tr><tr><td>Sep 2022</td><td>~1.8</td></tr><tr><td>Dec 2022</td><td>~3.9</td></tr><tr><td>Jan 2023</td><td>4.0</td></tr><tr><td>Mar 2023</td><td>~3.4</td></tr><tr><td>Jun 2023</td><td>~3.2</td></tr><tr><td>Sep 2023</td><td>~2.9</td></tr><tr><td>Dec 2023</td><td>~2.4</td></tr><tr><td>Mar 2024</td><td>~2.6</td></tr><tr><td>Jun 2024</td><td>~2.9</td></tr><tr><td>Sep 2024</td><td>~2.6</td></tr><tr><td>Dec 2024</td><td>~3.1</td></tr><tr><td>Mar 2025</td><td>~3.5</td></tr><tr><td>May 2025</td><td>3.7</td></tr></tbody></table></figure>&nbsp;Source: Japan’s Ministry of Internal Affairs

The steady rise from late 2024 indicates that underlying inflationary pressure is gaining traction, supported by food and energy costs, and amplified by the pass-through of higher import prices to consumers.<h2>Food prices in focus</h2>The biggest contributor to inflation remains food, particularly rice, Japan’s staple food and a politically sensitive commodity. According to the government data, rice prices jumped 102 per cent year-on-year, amid ongoing supply disruptions and concerns about stockpiling.&nbsp;The food crisis has added urgency to government responses. Prime Minister Shigeru Ishiba’s administration, facing re-election in July, has already announced cash handouts to offset the impact of rising living costs. Meanwhile, opposition parties are calling for Japan’s first-ever cut to the national sales tax.&nbsp;As quoted by Bloomberg, Taro Saito, head of economic research at NLI Research Institute, said, “Japan’s inflation is strong, driven by food costs — rice prices are surging and it’s impacting other related items… Today’s data will leave little doubt that inflation will be the key agenda for next month’s election.”<h2>Political tension escalates</h2>The sharp price increases come just weeks before a scheduled upper house election on July 20, which could prove pivotal for Ishiba’s minority government.&nbsp;Rising living costs have already led to political setbacks. Last autumn, the ruling party faced its biggest electoral defeat since 2009. Recent polling by local Japanese media suggests Ishiba’s popularity is recovering, helped in part by recent government subsidies to stabilise grain prices.<h2>BOJ caught between growth and inflation</h2>The inflation data has also added weight to speculation that the Bank of Japan (BOJ) may soon raise interest rates. While the central bank held rates steady at 0.5 per cent earlier this week, the inflation figure has reinforced expectations of a shift.&nbsp;As quoted by Bloomberg Economics, “The hotter CPI print will probably strengthen the BOJ’s confidence that its 2% target is becoming secure… We expect the BOJ to raise its policy rate by 25 basis points to 0.75% at its July meeting.”&nbsp;However, BOJ Governor Kazuo Ueda has remained cautious. Speaking after the central bank’s decision to keep policy unchanged, Ueda said the BOJ would monitor the impact of oil prices and US trade policy before committing to another hike.&nbsp;Despite Japan’s core inflation remaining above the BOJ’s 2 per cent target for over three years, the central bank maintains that the underlying price trend is still below its sustainability threshold.<h2>Oil prices and US Tariff add more pressure&nbsp;&nbsp;</h2>Additional inflationary pressures may be emerging from abroad. A recent rise in global oil prices, triggered by tensions in the Middle East, could push Japanese input costs higher.&nbsp;Japan is particularly vulnerable to energy shocks due to its high dependence on imports. According to Bloomberg, major Japanese firms like Lotte and Meiji have already announced fresh rounds of price increases in June, three times higher than in the same period last year, citing rising costs.&nbsp;At the same time, Japan is also assessing the economic impact of new US tariff measures, a key factor BOJ officials say could influence their decision on when and how to normalise monetary policy.<h2>What next?</h2>While the May inflation print strengthens the case for a rate hike in July, analysts say much will depend on incoming data. Teikoku Databank reports that further food price hikes are expected in June.&nbsp;Meanwhile, economists quoted by Bloomberg expect core CPI to fall below 3 per cent by late summer, due to technical adjustments and recent government subsidies. (With inputs from the agencies) &nbsp;

This inflation spike is pivotal ahead of the upper house election on July 20, putting pressure on Prime Minister Shigeru Ishiba administration and prompting government cash handouts to mitigate rising living costs. 

Japan’s consumer prices have surged to the fastest pace in two years, placing economic pressure firmly at the centre of the country’s upcoming upper house election. The rise in costs, led by a sharp increase in food prices, especially rice is expected to shape both political and monetary decisions in the weeks ahead. As per Japan’s Ministry of Internal Affairs, core consumer prices (excluding fresh food) rose 3.7 per cent in May from a year earlier. This marks the third consecutive monthly acceleration and the fastest pace since January 2023, exceeding the 3.6 per cent median forecast of economists surveyed by Bloomberg. Japan’s inflation trend The latest inflation figure is in line with a broader upward trend in prices observed over the past year. Government data shows that core CPI had eased temporarily in 2023, but began rising again in late 2024 due to cost pressures from food, energy, and imports. The current 3.7 per cent figure is the highest since January 2023, as visualised in the chart below.

Japan's consumer prices have risen sharply, with a 3.7% increase in May, the fastest since January 2023, largely driven by food prices, particularly rice, which surged 102% year-on-year.

Japan’s inflation hits two-year high ahead of key election

Oil prices retreated slightly on Friday after US President Donald Trump signalled that a decision on whether to launch a military strike on Iran would be made within two weeks.&nbsp;&nbsp;The announcement tempered immediate fears of escalation, even as fighting between Israel and Iran continues to intensify.&nbsp;Brent crude fell toward $77 a barrel, trimming gains from earlier in the week, while West Texas Intermediate (WTI) held steady near $74. The pullback followed a volatile week in the energy markets, driven by heightened geopolitical risks in the Middle East.&nbsp;As reported by Bloomberg, Trump’s dictated message, conveyed through White House spokesperson Karoline Leavitt, said there remained a “substantial chance of negotiations” with Tehran. Leavitt added that the timeline for a final decision was still open, but the administration expected to act within two weeks.<h2>A volatile week in the oil market</h2>Oil futures experienced significant swings over the past five days. According to Bloomberg, price volatility spiked, timespreads widened sharply, and bullish call options surged briefly surpassing levels seen during Russia’s invasion of Ukraine in 2022.&nbsp;Brent had closed nearly 3 per cent higher on Thursday, following concerns of a potential US strike over the weekend. However, Trump’s statement late Thursday helped ease some of those fears and brought a temporary pause to the market rally.&nbsp;Analysts say prices remain elevated due to geopolitical premiums. Goldman Sachs estimates that ongoing conflict in the Middle East is adding about $10 a barrel to crude benchmarks.<h2>Israel–Iran conflict: Infrastructure intact, tensions rising</h2>The broader context for market volatility is the escalating conflict between Israel and Iran.&nbsp;As per Reuters, Israel has carried out strikes on Iranian nuclear and military facilities in recent days, including targets near Natanz, Arak, and air defence sites around Tehran. In response, Iran launched missile and drone attacks on Israeli cities, including an airstrike that hit Soroka Medical Center in Beersheba, injuring dozens of civilians.&nbsp;While the attacks have caused extensive damage to infrastructure and led to civilian casualties on both sides, Iran’s oil production and export infrastructure have so far remained unaffected. Satellite images reviewed by Bloomberg suggest that crude storage tanks at Kharg Island, Iran’s main export terminal, are full, indicating the country is moving oil out rapidly amid fears of wider sanctions or conflict.&nbsp;The biggest strategic concern remains the Strait of Hormuz, a narrow waterway through which about 20 per cent of global oil supply flows. So far, there are no signs of disruption, but markets continue to monitor the region closely.<h2>What next?</h2>According to Reuters, senior US officials have been preparing for potential military action, but internal discussions point to a cautious approach, balancing strategic objectives with the risk of further regional instability. Trump’s two-week timeline appears to be aimed at allowing room for diplomatic outreach while keeping pressure on Tehran.&nbsp;Market analysts expect oil prices to remain in the $70–$80 range in the near term, with risk premiums rising if the conflict escalates further or if US involvement becomes imminent.&nbsp;(With inputs from the agencies) &nbsp;

Brent crude slid towards $77 per barrel, while WTI stayed near $74. The market experienced significant volatility and price swings due to geopolitical tensions. 

Oil prices retreated slightly on Friday after US President Donald Trump signalled that a decision on whether to launch a military strike on Iran would be made within two weeks. The announcement tempered immediate fears of escalation, even as fighting between Israel and Iran continues to intensify. Brent crude fell toward $77 a barrel, trimming gains from earlier in the week, while West Texas Intermediate (WTI) held steady near $74. The pullback followed a volatile week in the energy markets, driven by heightened geopolitical risks in the Middle East. As reported by Bloomberg, Trump’s dictated message, conveyed through White House spokesperson Karoline Leavitt, said there remained a “substantial chance of negotiations” with Tehran. Leavitt added that the timeline for a final decision was still open, but the administration expected to act within two weeks. A volatile week in the oil market Oil futures experienced significant swings over the past five days. According to Bloomberg, price volatility spiked, timespreads widened sharply, and bullish call options surged briefly surpassing levels seen during Russia’s invasion of Ukraine in 2022. Brent had closed nearly 3 per cent higher on Thursday, following concerns of a potential US strike over the weekend. However, Trump’s statement late Thursday helped ease some of those fears and brought a temporary pause to the market rally. Analysts say prices remain elevated due to geopolitical premiums. Goldman Sachs estimates that ongoing conflict in the Middle East is adding about $10 a barrel to crude benchmarks. Israel–Iran conflict: Infrastructure intact, tensions rising The broader context for market volatility is the escalating conflict between Israel and Iran. As per Reuters, Israel has carried out strikes on Iranian nuclear and military facilities in recent days, including targets near Natanz, Arak, and air defence sites around Tehran. In response, Iran launched missile and drone attacks on Israeli cities, including an airstrike that hit Soroka Medical Center in Beersheba, injuring dozens of civilians. While the attacks have caused extensive damage to infrastructure and led to civilian casualties on both sides, Iran’s oil production and export infrastructure have so far remained unaffected. Satellite images reviewed by Bloomberg suggest that crude storage tanks at Kharg Island, Iran’s main export terminal, are full, indicating the country is moving oil out rapidly amid fears of wider sanctions or conflict. The biggest strategic concern remains the Strait of Hormuz, a narrow waterway through which about 20 per cent of global oil supply flows. So far, there are no signs of disruption, but markets continue to monitor the region closely. What next? According to Reuters, senior US officials have been preparing for potential military action, but internal discussions point to a cautious approach, balancing strategic objectives with the risk of further regional instability. Trump’s two-week timeline appears to be aimed at allowing room for diplomatic outreach while keeping pressure on Tehran. Market analysts expect oil prices to remain in the $70–$80 range in the near term, with risk premiums rising if the conflict escalates further or if US involvement becomes imminent. (With inputs from the agencies)

Oil prices dipped slightly as President Trump suggested a decision on a potential military strike on Iran would come in two weeks, alleviating immediate escalation fears amidst ongoing conflict.

Oil prices drop as Trump signals two-week window on Iran action

Canada’s Prime Minister Mark Carney said on Thursday that Ottawa will “adjust” its 25 per cent counter tariffs on US steel and aluminum in response to a doubling of US levies if a deal on bilateral trade is not reached within 30 days. “Canada will adjust its existing counter tariffs on US steel and aluminum products on the 21st of July, at the end of that 30-day period,” Carney said. Carney also announced new measures to help stabilize Canada’s steel and aluminum sectors that have been hit by US President Donald Trump’s tariffs, as exports have gone down and job losses are up.&nbsp;&nbsp;The new federal programme includes a quota on foreign steel, which means there will be curbs on steel imports.&nbsp;Carney said Canada’s counter-tariffs on US steel and aluminum products would go up—or down, depending on the negotiations with Trump—on July 21.&nbsp;Trump hiked the US tariff rate on steel and aluminum from 25 per cent to 50 per cent earlier this month, but Carney did not announce any countermeasures since the talks were already on.&nbsp;Carney and Trump had decided to strike a trade deal within a month during their meeting at the G7 summit.The two leaders spoke one-on-one for about 30 minutes. After taking a few questions from reporters, the meeting continued with other officials from both countries for a further half-hour. They also discussed issues including critical minerals, border security, and possible areas of cooperation on defence, according to a statement from Carney’s office.“We agreed to pursue negotiations toward a deal within the coming 30 days,” Carney said in a post on X on Monday afternoon.&nbsp;Trump told reporters that he and Carney still have differences over policy but that a trade deal was “achievable” in the coming weeks. The president has directed his team to make the best possible deal as quickly as possible, said a White House official.

Carney and Trump had decided to strike a trade deal within a month during their meeting at the G7 summit. The two leaders spoke one-on-one for about 30 minutes. “We agreed to pursue negotiations toward a deal within the coming 30 days,” Carney said later.

Canada’s Prime Minister Mark Carney said on Thursday that Ottawa will “adjust” its 25 per cent counter tariffs on US steel and aluminum in response to a doubling of US levies if a deal on bilateral trade is not reached within 30 days. “Canada will adjust its existing counter tariffs on US steel and aluminum products on the 21st of July, at the end of that 30-day period,” Carney said. Carney also announced new measures to help stabilize Canada’s steel and aluminum sectors that have been hit by US President Donald Trump’s tariffs, as exports have gone down and job losses are up. The new federal programme includes a quota on foreign steel, which means there will be curbs on steel imports. Carney said Canada’s counter-tariffs on US steel and aluminum products would go up—or down, depending on the negotiations with Trump—on July 21. Trump hiked the US tariff rate on steel and aluminum from 25 per cent to 50 per cent earlier this month, but Carney did not announce any countermeasures since the talks were already on. Carney and Trump had decided to strike a trade deal within a month during their meeting at the G7 summit. The two leaders spoke one-on-one for about 30 minutes. After taking a few questions from reporters, the meeting continued with other officials from both countries for a further half-hour. They also discussed issues including critical minerals, border security, and possible areas of cooperation on defence, according to a statement from Carney’s office. “We agreed to pursue negotiations toward a deal within the coming 30 days,” Carney said in a post on X on Monday afternoon. Trump told reporters that he and Carney still have differences over policy but that a trade deal was “achievable” in the coming weeks. The president has directed his team to make the best possible deal as quickly as possible, said a White House official.

Carney and Trump had decided to strike a trade deal within a month during their meeting at the G7 summit. The two leaders spoke one-on-one for about 30 minutes. “We agreed to pursue negotiations toward a deal within the coming 30 days,” Carney said later.

Carney says Canada will ‘adjust’ counter tariffs on US metals if no deal in 30 days

Researchers have confirmed the largest data breach ever, with almost 16 billion login credentials, including passwords, being exposed. Researchers part of an investigation that started early this year suggest that the massive password leak is the work of multiple infostealers, said a Forbes report. If a password gets compromised, it leads to the compromise of almost everything in this technological-centric world. And that’s’ why Google is telling billions of users to replace their passwords with much more secure passkeys. It’s why the FBI is warning people not to click on links in SMS messages. It’s why stolen passwords are up for sale on the dark web to anyone with even a little amount of cash.&nbsp;&nbsp;According to Vilius Petkauskas at Cybernews, “30 exposed datasets containing from tens of millions to over 3.5 billion records each,” have been discovered. In total, the number of compromised records has now hit 16 billion, making it the largest such leak in history.&nbsp;None of these datasets were reported as leaked previously, so this is all new data.&nbsp;“This is not just a leak – it’s a blueprint for mass exploitation,” the researchers said.&nbsp;“These credentials are ground zero for phishing attacks and account takeover. These aren’t just old breaches being recycled, this is fresh, weaponizable intelligence at scale,” they warned.&nbsp;Most of that intelligence was structured in the format of a URL, followed by login details and a password. The information in it opens the door to “pretty much any online service imaginable, from Apple, Facebook, and Google, to GitHub, Telegram, and various government services.”&nbsp;<h2>‘Always choose strong passwords’&nbsp;</h2>&nbsp;The credentials in question are of high value for widely used services and carry far-reaching implications, and hence it is highly important to invest in password management solutions and dark web monitoring tools. The latter helps by alerting users when their passwords get exposed online, hopefully enabling them to take direct action and update their account logins if the password has been reused across services.&nbsp;<h2>‘Never share your passwords’</h2>&nbsp;The massive leak and its implications reinforce that cybersecurity is not just a technical challenge but a shared responsibility. People need to remain vigilant and mindful of any attempts to steal login credentials. They should choose strong and unique passwords and implement multi-factor authentication wherever possible.Experts suggest using a password manager and switching to passkeys wherever possible and warn that now is the time to take the threat and its humongous risks seriously.

The massive leak and its implications reinforce that cybersecurity is not just a technical challenge but a shared responsibility. People need to remain vigilant and mindful of any attempts to steal login credentials.

Researchers have confirmed the largest data breach ever, with almost 16 billion login credentials, including passwords, being exposed. Researchers part of an investigation that started early this year suggest that the massive password leak is the work of multiple infostealers, said a Forbes report. If a password gets compromised, it leads to the compromise of almost everything in this technological-centric world. And that’s’ why Google is telling billions of users to replace their passwords with much more secure passkeys. It’s why the FBI is warning people not to click on links in SMS messages. It’s why stolen passwords are up for sale on the dark web to anyone with even a little amount of cash. According to Vilius Petkauskas at Cybernews, “30 exposed datasets containing from tens of millions to over 3.5 billion records each,” have been discovered. In total, the number of compromised records has now hit 16 billion, making it the largest such leak in history. None of these datasets were reported as leaked previously, so this is all new data. “This is not just a leak – it’s a blueprint for mass exploitation,” the researchers said. “These credentials are ground zero for phishing attacks and account takeover. These aren’t just old breaches being recycled, this is fresh, weaponizable intelligence at scale,” they warned. Most of that intelligence was structured in the format of a URL, followed by login details and a password. The information in it opens the door to “pretty much any online service imaginable, from Apple, Facebook, and Google, to GitHub, Telegram, and various government services.” ‘Always choose strong passwords’ The credentials in question are of high value for widely used services and carry far-reaching implications, and hence it is highly important to invest in password management solutions and dark web monitoring tools. The latter helps by alerting users when their passwords get exposed online, hopefully enabling them to take direct action and update their account logins if the password has been reused across services. ‘Never share your passwords’ The massive leak and its implications reinforce that cybersecurity is not just a technical challenge but a shared responsibility. People need to remain vigilant and mindful of any attempts to steal login credentials. They should choose strong and unique passwords and implement multi-factor authentication wherever possible. Experts suggest using a password manager and switching to passkeys wherever possible and warn that now is the time to take the threat and its humongous risks seriously.

The massive leak and its implications reinforce that cybersecurity is not just a technical challenge but a shared responsibility. People need to remain vigilant and mindful of any attempts to steal login credentials.

16 billion passwords leaked in largest data breach ever, cybersecurity experts issue wake-up call

If the Strait of Hormuz is closed, much of the world could go without fuel. After the Israeli bombing that started on June 13, several Iranian politicians have suggested that the Strait should be closed. Esmail Kowsari, a commander of the Islamic Revolutionary Guard Corps (IRGC), said the option was 'under consideration'. Why is the Strait of Hormuz so important? Can Iran really close the strait? Here is what you should know:<h2>What is the Strait of Hormuz? Why is it strategically important?</h2>Strait of Hormuz is a narrow waterway located between Iran and Oman. The strait, only 33 kilometres across at its narrowest point, links the Persian Gulf to the Gulf of Oman and Arabian Sea. It is the only sea passage for oil exports from key oil producers in the Gulf, like Saudi Arabia, UAE, Kuwait, Iraq and Qatar.<h2>Why is Strait of Hormuz important for global trade?</h2>Through this chokepoint passes nearly 20 per cent of the world's oil. It is estimated that 20 million barrels of petroleum liquids were transported every day through the strait in 2024. Nearly a third of global liquefied natural gas (LNG) trade also passes through the strait.&nbsp;A closure or disruption of maritime traffic in the Strait of Hormuz can cause a rise in global energy prices. It can play havoc with supply chains and impact economies, particularly in Asian importers like China, India, Japan and South Korea, which together account for &nbsp;84 per cent of its crude oil shipments.Much of the Gulf oil and LNG for Europe also passes through the Strait of Homuz. These factors make the waterway strategically important for global energy security. https://www.wionews.com/videos/iran-israel-war-us-officials-prepare-for-possible-strike-on-iran-in-coming-days-report-1750335066169/embed&nbsp;<a href="https://www.wionews.com/videos/iran-israel-war-us-officials-prepare-for-possible-strike-on-iran-in-coming-days-report-1750335066169">Iran-Israel War: US Officials Prepare For Possible Strike On Iran In Coming Days: Report</a><h2>Does Iran really control Strait of Hormuz?</h2>The direct answer is, not entirely. But Iran's geographic position is along the northern coast of the Strait of Hormuz. This helps Iran exert influence on the strait. Technically, Iran can block traffic along the strait, as its narrowest point, at 21 nautical miles, is partly within its territorial waters, overlapping with Oman’s to the south.<h2>Iranian military presence near the Strait of Hormuz</h2>In theory, at least, Iran can deploy naval mines, launch ballistic and cruise missiles, suicide drones, fast attack boats, as well as Kilo and Ghadir class submarines. While it has not entirely used its military muscle in the strait, it has often threatened to do so. Iranian military's presence in the nearby strategic islands such as Greater Tunb, Lesser Tunb, and Abu Musa emboldens it to disrupt shipping along the Strait of Hormuz.<h2>Has Iran ever fully closed Strait of Hormuz?</h2>No, because it's against global law on 'innocent passage', specifically the international maritime law, formally known as United Nations Convention on the Law of the Sea or UNCLOS. Iran has ratified the 1982 convention, though it has not signed the treaty. Besides, Oman has control over the southern coast of the strait, which limits Iran’s ability to exert any unilateral control over the strait.<h2>Iran's threats to close or block Strait of Hormuz are not new: Past actions</h2>Even so, Iran has quite often resorted to threatening the global community with closure or blocking of the Strait of Hormuz. The threats, which are being made amid the the ongoing war with Israel, happened in 2011, 2012, 2018 and 2019 too, at the height of tensions with the US, Israel, or as a response to international sanctions. Iran conducted mine attacks on oil tankers and seized some vessels in 2019. In April 2024, it seized a container ship amid the Israel-Hamas War in Gaza.<h2>Will the Tanker War of the 1980s repeat?</h2>But the first major disruption of the Strait of Hormuz occurred during the Iran-Iraq War of 1980–1988. At the time, Iran conducted attacks on neutral oil tankers, disrupting traffic, though not entirely stopping it.&nbsp;If push comes to shove, Iran can try to hit the strait using its military capabilities around the area. But it is likely going to be one of its last options.

After the Israeli bombing that started on June 13, several Iranian politicians have suggested that the Strait of Hormuz should be closed. Can Iran really close the strait? 

If the Strait of Hormuz is closed, much of the world could go without fuel. After the Israeli bombing that started on June 13, several Iranian politicians have suggested that the Strait should be closed. Esmail Kowsari, a commander of the Islamic Revolutionary Guard Corps (IRGC), said the option was 'under consideration'. Why is the Strait of Hormuz so important? Can Iran really close the strait? Here is what you should know: What is the Strait of Hormuz? Why is it strategically important? Strait of Hormuz is a narrow waterway located between Iran and Oman. The strait, only 33 kilometres across at its narrowest point, links the Persian Gulf to the Gulf of Oman and Arabian Sea. It is the only sea passage for oil exports from key oil producers in the Gulf, like Saudi Arabia, UAE, Kuwait, Iraq and Qatar. Why is Strait of Hormuz important for global trade? Through this chokepoint passes nearly 20 per cent of the world's oil. It is estimated that 20 million barrels of petroleum liquids were transported every day through the strait in 2024. Nearly a third of global liquefied natural gas (LNG) trade also passes through the strait. A closure or disruption of maritime traffic in the Strait of Hormuz can cause a rise in global energy prices. It can play havoc with supply chains and impact economies, particularly in Asian importers like China, India, Japan and South Korea, which together account for 84 per cent of its crude oil shipments. Much of the Gulf oil and LNG for Europe also passes through the Strait of Homuz. These factors make the waterway strategically important for global energy security. https://www.wionews.com/videos/iran-israel-war-us-officials-prepare-for-possible-strike-on-iran-in-coming-days-report-1750335066169/embed Iran-Israel War: US Officials Prepare For Possible Strike On Iran In Coming Days: Report Does Iran really control Strait of Hormuz? The direct answer is, not entirely. But Iran's geographic position is along the northern coast of the Strait of Hormuz. This helps Iran exert influence on the strait. Technically, Iran can block traffic along the strait, as its narrowest point, at 21 nautical miles, is partly within its territorial waters, overlapping with Oman’s to the south. Iranian military presence near the Strait of Hormuz In theory, at least, Iran can deploy naval mines, launch ballistic and cruise missiles, suicide drones, fast attack boats, as well as Kilo and Ghadir class submarines. While it has not entirely used its military muscle in the strait, it has often threatened to do so. Iranian military's presence in the nearby strategic islands such as Greater Tunb, Lesser Tunb, and Abu Musa emboldens it to disrupt shipping along the Strait of Hormuz. Has Iran ever fully closed Strait of Hormuz? No, because it's against global law on 'innocent passage', specifically the international maritime law, formally known as United Nations Convention on the Law of the Sea or UNCLOS. Iran has ratified the 1982 convention, though it has not signed the treaty. Besides, Oman has control over the southern coast of the strait, which limits Iran’s ability to exert any unilateral control over the strait. Iran's threats to close or block Strait of Hormuz are not new: Past actions Even so, Iran has quite often resorted to threatening the global community with closure or blocking of the Strait of Hormuz. The threats, which are being made amid the the ongoing war with Israel, happened in 2011, 2012, 2018 and 2019 too, at the height of tensions with the US, Israel, or as a response to international sanctions. Iran conducted mine attacks on oil tankers and seized some vessels in 2019. In April 2024, it seized a container ship amid the Israel-Hamas War in Gaza. Will the Tanker War of the 1980s repeat? But the first major disruption of the Strait of Hormuz occurred during the Iran-Iraq War of 1980–1988. At the time, Iran conducted attacks on neutral oil tankers, disrupting traffic, though not entirely stopping it. If push comes to shove, Iran can try to hit the strait using its military capabilities around the area. But it is likely going to be one of its last options.

After the Israeli bombing that started on June 13, several Iranian politicians have suggested that the Strait of Hormuz should be closed. Can Iran really close the Strait?&nbsp;

Where is Strait of Hormuz? Can Iran really close it as some officials threatened amid war with Israel?

Southeast Asia’s low-cost airline industry is entering a high-stakes phase of rapid expansion, with leading budget carriers racing to increase capacity despite intensifying cost pressures and increasingly thin profit margins.&nbsp;The closure of Qantas Airways’ Singapore-based subsidiary Jetstar Asia has underscored the mounting challenges in one of the world’s most competitive aviation markets.The surge in disposable incomes, tourism growth, especially from China, and rapid regional economic development have fuelled an aviation boom in Southeast Asia over the past two decades.&nbsp;According to projections, the flights market in Southeast Asia is set to generate $33.76 billion in revenue in 2025, with that number expected to climb to $41.60 billion by 2029, reflecting a CAGR of 5.36 per cent.As demand grows, so do the ambitions of the region’s major low-cost carriers. Vietnam’s VietJet Aviation and Malaysia’s AirAsia are significantly expanding their fleets to capture a larger share of the burgeoning market.&nbsp;VietJet recently signed a provisional agreement to buy up to 150 Airbus single-aisle aircraft at the Paris Airshow, just weeks after ordering 20 A330neo wide-body jets and maintaining an outstanding order for 200 Boeing 737 MAX planes.AirAsia, Southeast Asia’s largest budget airline, is also negotiating the purchase of 50 to 70 long-range single-aisle aircraft and 100 regional jets to expand its destination network. CEO Tony Fernandes framed the strategy succinctly: “At the end of the day, it is go big or go home.”<h2>Thin margins in a growing market</h2>Despite the region’s potential, profitability remains a serious concern. The International Air Transport Association (IATA) expects Asia-Pacific airlines to post a net profit margin of just 1.9 per cent in 2025, well below the global average of 3.7 per cent.&nbsp;International airfares in Asia dropped 12 per cent in 2024 compared to 2023, according to data from ForwardKeys. AirAsia itself reported a 9 per cent decline in average fares in Q1 2024 as it ramped up capacity and passed fuel cost savings onto customers. While this has made flying more accessible for millions, it has added further pressure to already tight margins.Meanwhile, costs are climbing. Labour, airport charges, security fees, and aircraft leasing rates are all rising, compounded by a global shortage of new planes that is driving up maintenance and leasing expenses.<h2>Jetstar Asia closure highlights market stress</h2>The challenges became too much for some, as demonstrated by Qantas’ recent decision to shutter Jetstar Asia by the end of July 2025. The airline, which had operated for nearly two decades out of Singapore, was unable to remain viable amid escalating costs and intense competition.&nbsp;Rising costs of fuel, airport, and handling charges played a key role in its closure, according to the airline’s official statement.Qantas plans to redeploy Jetstar Asia’s aircraft to more profitable operations in Australia and New Zealand. Analysts suggest the move is a pragmatic response to a market where scale and efficiency are critical to survival.Jetstar Asia’s relatively small fleet of 13 aircraft paled in comparison to competitors like Scoot (53 planes), AirAsia (225), VietJet (117, including Thai operations), and Cebu Pacific of the Philippines (99).<h2>Budget airlines dominate Southeast Asian skies</h2>Southeast Asia has a uniquely high concentration of low-cost international flights. According to CAPA Centre for Aviation, budget carriers account for two-thirds of international seat capacity within the region, twice the global average.&nbsp;This saturation has been a double-edged sword: while consumers benefit from cheap fares and frequent flights, airlines are locked in a battle for survival in a cost-heavy, price-sensitive environment.To succeed, carriers are doubling down on efficiency, focusing on single-type aircraft fleets to lower operational costs and exploring new routes. The region’s digital-savvy population is also driving online sales, with 87 per cent of total revenue expected to be generated through online channels by 2029.Southeast Asia’s airline market is expected to serve 119.57 million users by 2029, with an average revenue per user (ARPU) of $366.95. Indonesia, in particular, is showing strong growth in its domestic aviation sector, led largely by budget carriers.However, while growth opportunities are abundant, the road ahead is fraught with risks. Airlines must strike a delicate balance between expanding fast enough to seize market share and avoiding overextension in an environment where costs are volatile and margins are minimal.

Fierce competition, expanding fleets, and growing demand in increasing pressure on Southeast Asia’s low-cost airline.

Southeast Asia’s low-cost airline industry is entering a high-stakes phase of rapid expansion, with leading budget carriers racing to increase capacity despite intensifying cost pressures and increasingly thin profit margins. The closure of Qantas Airways’ Singapore-based subsidiary Jetstar Asia has underscored the mounting challenges in one of the world’s most competitive aviation markets. The surge in disposable incomes, tourism growth, especially from China, and rapid regional economic development have fuelled an aviation boom in Southeast Asia over the past two decades. According to projections, the flights market in Southeast Asia is set to generate $33.76 billion in revenue in 2025, with that number expected to climb to $41.60 billion by 2029, reflecting a CAGR of 5.36 per cent. As demand grows, so do the ambitions of the region’s major low-cost carriers. Vietnam’s VietJet Aviation and Malaysia’s AirAsia are significantly expanding their fleets to capture a larger share of the burgeoning market. VietJet recently signed a provisional agreement to buy up to 150 Airbus single-aisle aircraft at the Paris Airshow, just weeks after ordering 20 A330neo wide-body jets and maintaining an outstanding order for 200 Boeing 737 MAX planes. AirAsia, Southeast Asia’s largest budget airline, is also negotiating the purchase of 50 to 70 long-range single-aisle aircraft and 100 regional jets to expand its destination network. CEO Tony Fernandes framed the strategy succinctly: “At the end of the day, it is go big or go home.” Thin margins in a growing market Despite the region’s potential, profitability remains a serious concern. The International Air Transport Association (IATA) expects Asia-Pacific airlines to post a net profit margin of just 1.9 per cent in 2025, well below the global average of 3.7 per cent. International airfares in Asia dropped 12 per cent in 2024 compared to 2023, according to data from ForwardKeys. AirAsia itself reported a 9 per cent decline in average fares in Q1 2024 as it ramped up capacity and passed fuel cost savings onto customers. While this has made flying more accessible for millions, it has added further pressure to already tight margins. Meanwhile, costs are climbing. Labour, airport charges, security fees, and aircraft leasing rates are all rising, compounded by a global shortage of new planes that is driving up maintenance and leasing expenses. Jetstar Asia closure highlights market stress The challenges became too much for some, as demonstrated by Qantas’ recent decision to shutter Jetstar Asia by the end of July 2025. The airline, which had operated for nearly two decades out of Singapore, was unable to remain viable amid escalating costs and intense competition. Rising costs of fuel, airport, and handling charges played a key role in its closure, according to the airline’s official statement. Qantas plans to redeploy Jetstar Asia’s aircraft to more profitable operations in Australia and New Zealand. Analysts suggest the move is a pragmatic response to a market where scale and efficiency are critical to survival. Jetstar Asia’s relatively small fleet of 13 aircraft paled in comparison to competitors like Scoot (53 planes), AirAsia (225), VietJet (117, including Thai operations), and Cebu Pacific of the Philippines (99). Budget airlines dominate Southeast Asian skies Southeast Asia has a uniquely high concentration of low-cost international flights. According to CAPA Centre for Aviation, budget carriers account for two-thirds of international seat capacity within the region, twice the global average. This saturation has been a double-edged sword: while consumers benefit from cheap fares and frequent flights, airlines are locked in a battle for survival in a cost-heavy, price-sensitive environment. To succeed, carriers are doubling down on efficiency, focusing on single-type aircraft fleets to lower operational costs and exploring new routes. The region’s digital-savvy population is also driving online sales, with 87 per cent of total revenue expected to be generated through online channels by 2029. Southeast Asia’s airline market is expected to serve 119.57 million users by 2029, with an average revenue per user (ARPU) of $366.95. Indonesia, in particular, is showing strong growth in its domestic aviation sector, led largely by budget carriers. However, while growth opportunities are abundant, the road ahead is fraught with risks. Airlines must strike a delicate balance between expanding fast enough to seize market share and avoiding overextension in an environment where costs are volatile and margins are minimal.

Fierce competition, expanding fleets, and growing demand in increasing pressure on Southeast Asia’s low-cost airline.

Southeast Asia’s budget airlines battle for the skies amid soaring costs and shrinking margins

As the Israel–Iran conflict dominates global headlines, another war—now over 1,200 days old—continues to quietly erode Europe’s economic resilience. The prolonged Russia–Ukraine war, once considered a distant geopolitical challenge, has morphed into a domestic economic burden for major European economies.&nbsp;&nbsp;Germany, long the industrial powerhouse of the continent, is now grappling with the fallout of cutting its energy ties with Moscow.&nbsp;According to data cited by Reuters, Germany’s GDP grew just 0.4 per cent in the first quarter of 2025, while industrial production declined 0.2 per cent in March year-on-year, and energy-intensive industries shrank 2.3 per cent. Germany’s annual GDP forecast for 2025 stands at 0.0 per cent, with a modest recovery to 0.7 per cent in 2026, as per projections from the country’s Federal Statistical Office.<h2>The gas that powered Germany’s factories</h2>While Russia’s President Vladimir Putin has claimed that “the German economy is on the brink of recession,” as quoted by Reuters, the statement—though politically loaded—touches on an underlying truth. Europe’s competitiveness for decades had leaned heavily on cheap Russian pipeline gas. That is no longer an option.&nbsp;Since the Ukraine war began, Europe has rapidly shifted to alternate supplies, notably liquefied natural gas (LNG) from the United States and Qatar. However, LNG has proven costlier, especially for small and medium-sized enterprises (SMEs), which lack the financial muscle to secure long-term supply contracts, as reported by Reuters and Bloomberg.&nbsp;Lawmakers in Germany have repeatedly warned that SMEs—considered the backbone of the nation’s economy—face disproportionately higher risks from sustained energy inflation.<h2>Energy shock beyond Germany</h2>The strain isn’t limited to Germany. Bloomberg reports that Austria, Hungary and Slovakia, which were heavily reliant on Russian crude and gas, are now facing bottlenecks in energy supply and manufacturing. All three nations have seen a decline in industrial activity since early 2023, based on EU-wide trade and production data.&nbsp;To respond, the European Central Bank has reduced borrowing costs to support economic activity, especially in energy-intensive sectors, as noted in a recent ECB policy brief reviewed by Reuters.<h2>Chemical, metal and auto sectors under strain</h2>Industries heavily dependent on a consistent energy supply, such as chemicals, metals and automobiles, are the hardest hit. German automaker Volkswagen has reportedly scaled down operations in certain facilities, citing high energy costs, as per Reuters.&nbsp;However, the ripple effect is deeper in the supply chain. Component manufacturers and mid-sized suppliers—often family-owned and operating on tight margins—are facing existential threats, according to analysis by the IFO Institute for Economic Research.<h2>Green energy goals face headwinds</h2>Europe’s long-term plan to pivot towards renewable energy is also encountering challenges. The green transition—while a strategic necessity—is proving expensive and politically difficult.&nbsp;As quoted by Bloomberg, analysts say delayed infrastructure, limited private investment, and regulatory uncertainty have slowed momentum. This is weakening the EU’s position against energy-rich and manufacturing-competitive economies like the United States and China.<h2>Strategic de-industrialisation?</h2>Economists now warn of a larger trend: a slow but steady de-industrialisation of Europe. As per a recent Reuters analysis, energy-intensive sectors are relocating production or downsizing operations, risking long-term competitiveness.<h2>A warning from Ukraine’s frontlines</h2>The economic fallout from the Ukraine war illustrates a global truth: regional conflicts can reshape global trade, disrupt domestic industry, and upend national economic models.&nbsp;For Europe, the decision to wean itself off Russian gas was a moral and strategic necessity. But more than three years on, the costs—economic, industrial and political—are mounting. (With inputs from the agencies)

Smaller enterprises suffer most due to limited resources. Neighboring countries report energy supply strains, while manufacturing declines persist. 

As the Israel–Iran conflict dominates global headlines, another war—now over 1,200 days old—continues to quietly erode Europe’s economic resilience. The prolonged Russia–Ukraine war, once considered a distant geopolitical challenge, has morphed into a domestic economic burden for major European economies. Germany, long the industrial powerhouse of the continent, is now grappling with the fallout of cutting its energy ties with Moscow. According to data cited by Reuters, Germany’s GDP grew just 0.4 per cent in the first quarter of 2025, while industrial production declined 0.2 per cent in March year-on-year, and energy-intensive industries shrank 2.3 per cent. Germany’s annual GDP forecast for 2025 stands at 0.0 per cent, with a modest recovery to 0.7 per cent in 2026, as per projections from the country’s Federal Statistical Office. The gas that powered Germany’s factories While Russia’s President Vladimir Putin has claimed that “the German economy is on the brink of recession,” as quoted by Reuters, the statement—though politically loaded—touches on an underlying truth. Europe’s competitiveness for decades had leaned heavily on cheap Russian pipeline gas. That is no longer an option. Since the Ukraine war began, Europe has rapidly shifted to alternate supplies, notably liquefied natural gas (LNG) from the United States and Qatar. However, LNG has proven costlier, especially for small and medium-sized enterprises (SMEs), which lack the financial muscle to secure long-term supply contracts, as reported by Reuters and Bloomberg. Lawmakers in Germany have repeatedly warned that SMEs—considered the backbone of the nation’s economy—face disproportionately higher risks from sustained energy inflation. Energy shock beyond Germany The strain isn’t limited to Germany. Bloomberg reports that Austria, Hungary and Slovakia, which were heavily reliant on Russian crude and gas, are now facing bottlenecks in energy supply and manufacturing. All three nations have seen a decline in industrial activity since early 2023, based on EU-wide trade and production data. To respond, the European Central Bank has reduced borrowing costs to support economic activity, especially in energy-intensive sectors, as noted in a recent ECB policy brief reviewed by Reuters. Chemical, metal and auto sectors under strain Industries heavily dependent on a consistent energy supply, such as chemicals, metals and automobiles, are the hardest hit. German automaker Volkswagen has reportedly scaled down operations in certain facilities, citing high energy costs, as per Reuters. However, the ripple effect is deeper in the supply chain. Component manufacturers and mid-sized suppliers—often family-owned and operating on tight margins—are facing existential threats, according to analysis by the IFO Institute for Economic Research. Green energy goals face headwinds Europe’s long-term plan to pivot towards renewable energy is also encountering challenges. The green transition—while a strategic necessity—is proving expensive and politically difficult. As quoted by Bloomberg, analysts say delayed infrastructure, limited private investment, and regulatory uncertainty have slowed momentum. This is weakening the EU’s position against energy-rich and manufacturing-competitive economies like the United States and China. Strategic de-industrialisation? Economists now warn of a larger trend: a slow but steady de-industrialisation of Europe. As per a recent Reuters analysis, energy-intensive sectors are relocating production or downsizing operations, risking long-term competitiveness. A warning from Ukraine’s frontlines The economic fallout from the Ukraine war illustrates a global truth: regional conflicts can reshape global trade, disrupt domestic industry, and upend national economic models. For Europe, the decision to wean itself off Russian gas was a moral and strategic necessity. But more than three years on, the costs—economic, industrial and political—are mounting. (With inputs from the agencies)

The Israel-Iran conflict intensifies, exacerbating economic challenges in Europe, particularly for Germany, facing high energy costs and recession fears.

Cost of conflict: Who is paying for Europe's Russian gas gamble

Three Chinese bitcoin mining hardware giants—Bitmain, Canaan, and MicroBT—are establishing manufacturing operations in the United States as a strategic response to escalating US-China trade tensions and rising national security concerns in the US.&nbsp;This transformation marks a significant realignment of the cryptocurrency mining supply chain, one that could reshape the future of global crypto infrastructure.Bitmain, Canaan, and MicroBT collectively control more than 90 per cent of the global bitcoin mining hardware market. According to Frost &amp; Sullivan, the combined market share by computing power sold of the three firms has reached 95.4 per cent as of December 2023.&nbsp;Despite China’s 2021 ban on domestic crypto activity, these manufacturers maintained global dominance by focusing on high-performance chips tailor-made for mining.Canaan has taken steps to distance itself from Chinese oversight, relocating its headquarters to Singapore and reporting that 40 per cent of its 2024 revenue came from the US. Canaan’s VP Leo Wang explained that the US move was about both avoiding tariffs and reducing customer costs, but heavy investment was being held back due to the unpredictability of trade policy.<h2>US tariffs reshape crypto supply chains</h2>The shift began after President Donald Trump, during his second term, imposed sweeping tariffs under his “Liberation Day” trade policy. The administration introduced a 30 per cent import duty on high-tech equipment, including bitcoin mining hardware, with an added 20 per cent on Chinese-origin imports.To remain competitive in the lucrative US market, where more than 30 per cent of global bitcoin mining occurs, Chinese manufacturers are now moving production to American soil.&nbsp;Bitmain, the largest mining hardware maker by sales, began US manufacturing in December 2024. Canaan followed in early 2025, launching pilot production lines in response to volatile tariff policies. MicroBT also announced a localisation strategy to avoid tariffs and get closer to its US customer base.Reuters reported that Guang Yang, chief technology officer at Conflux Network, said, “The US-China trade war is triggering structural, not superficial, changes in bitcoin’s supply chains. This is a long-term shift.”<h2>Security concerns persist despite US production</h2>While manufacturing in the US may mitigate tariff impacts, it hasn’t solved the problems as national security concerns persist. Reuters reported that Sanjay Gupta, chief strategy officer at US-based Auradine (a domestic rival backed by Marathon Digital or MARA), warned that Chinese-made mining rigs pose cybersecurity and infrastructure risks.“Hundreds of thousands of these rigs are now connected to the US electrical grid,” said Gupta. “It’s not just an economic dependency; it’s a strategic vulnerability.”Bitmain is already feeling the regulatory pinch. Its AI-focused subsidiary, Sophgo, was recently added to the US Entity List, effectively banning it from accessing US technologies. While Sophgo is not directly tied to bitcoin mining, the designation underscores the broader suspicion US authorities have toward Chinese tech firms.MicroBT and Canaan, meanwhile, are cautiously exploring US partnerships with data centres and energy providers while avoiding drawing undue regulatory attention.&nbsp;Industry insiders warn that further scrutiny could expand to mining hardware manufacturers as part of a broader decoupling in tech infrastructure between the two nations.<h2>A billion-dollar industry at a crossroads</h2>The bitcoin mining hardware sector is projected to grow to $12 billion by 2028, making the battle over supply chains a high-stakes commercial struggle. As mining becomes more energy-intensive and reliant on specialised chips, the question of who controls the upstream hardware becomes increasingly critical.This wave of Chinese firms relocating operations to the US is about more than tariffs; it represents a strategic realignment driven by economic, technological, and geopolitical forces.&nbsp;As America pushes to assert technological independence in critical sectors, Chinese hardware makers are repositioning themselves to stay relevant.The next few years will reveal whether the US can create a homegrown alternative to Chinese dominance or whether Chinese firms, through strategic localisation, will remain the major players in the backbone of bitcoin mining.&nbsp;(With inputs from agencies)

Bitmain, Canaan, and MicroBT are restructuring global supply chains as crypto mining meets geopolitics.

Three Chinese bitcoin mining hardware giants—Bitmain, Canaan, and MicroBT—are establishing manufacturing operations in the United States as a strategic response to escalating US-China trade tensions and rising national security concerns in the US. This transformation marks a significant realignment of the cryptocurrency mining supply chain, one that could reshape the future of global crypto infrastructure. Bitmain, Canaan, and MicroBT collectively control more than 90 per cent of the global bitcoin mining hardware market. According to Frost & Sullivan, the combined market share by computing power sold of the three firms has reached 95.4 per cent as of December 2023. Despite China’s 2021 ban on domestic crypto activity, these manufacturers maintained global dominance by focusing on high-performance chips tailor-made for mining. Canaan has taken steps to distance itself from Chinese oversight, relocating its headquarters to Singapore and reporting that 40 per cent of its 2024 revenue came from the US. Canaan’s VP Leo Wang explained that the US move was about both avoiding tariffs and reducing customer costs, but heavy investment was being held back due to the unpredictability of trade policy. US tariffs reshape crypto supply chains The shift began after President Donald Trump, during his second term, imposed sweeping tariffs under his “Liberation Day” trade policy. The administration introduced a 30 per cent import duty on high-tech equipment, including bitcoin mining hardware, with an added 20 per cent on Chinese-origin imports. To remain competitive in the lucrative US market, where more than 30 per cent of global bitcoin mining occurs, Chinese manufacturers are now moving production to American soil. Bitmain, the largest mining hardware maker by sales, began US manufacturing in December 2024. Canaan followed in early 2025, launching pilot production lines in response to volatile tariff policies. MicroBT also announced a localisation strategy to avoid tariffs and get closer to its US customer base. Reuters reported that Guang Yang, chief technology officer at Conflux Network, said, “The US-China trade war is triggering structural, not superficial, changes in bitcoin’s supply chains. This is a long-term shift.” Security concerns persist despite US production While manufacturing in the US may mitigate tariff impacts, it hasn’t solved the problems as national security concerns persist. Reuters reported that Sanjay Gupta, chief strategy officer at US-based Auradine (a domestic rival backed by Marathon Digital or MARA), warned that Chinese-made mining rigs pose cybersecurity and infrastructure risks. “Hundreds of thousands of these rigs are now connected to the US electrical grid,” said Gupta. “It’s not just an economic dependency; it’s a strategic vulnerability.” Bitmain is already feeling the regulatory pinch. Its AI-focused subsidiary, Sophgo, was recently added to the US Entity List, effectively banning it from accessing US technologies. While Sophgo is not directly tied to bitcoin mining, the designation underscores the broader suspicion US authorities have toward Chinese tech firms. MicroBT and Canaan, meanwhile, are cautiously exploring US partnerships with data centres and energy providers while avoiding drawing undue regulatory attention. Industry insiders warn that further scrutiny could expand to mining hardware manufacturers as part of a broader decoupling in tech infrastructure between the two nations. A billion-dollar industry at a crossroads The bitcoin mining hardware sector is projected to grow to $12 billion by 2028, making the battle over supply chains a high-stakes commercial struggle. As mining becomes more energy-intensive and reliant on specialised chips, the question of who controls the upstream hardware becomes increasingly critical. This wave of Chinese firms relocating operations to the US is about more than tariffs; it represents a strategic realignment driven by economic, technological, and geopolitical forces. As America pushes to assert technological independence in critical sectors, Chinese hardware makers are repositioning themselves to stay relevant. The next few years will reveal whether the US can create a homegrown alternative to Chinese dominance or whether Chinese firms, through strategic localisation, will remain the major players in the backbone of bitcoin mining. (With inputs from agencies)

Bitmain, Canaan, and MicroBT are restructuring global supply chains as crypto mining meets geopolitics

Chinese bitcoin mining giants shift to the US amid tariffs and security scrutiny

Japanese steel giant Nippon Steel has completed its $14.9 billion acquisition of US Steel, capping off an 18-month saga that reshaped the geopolitics of steel and placed sweeping new oversight powers in the hands of the Trump administration.&nbsp;As confirmed by both companies and first reported by Reuters, the deal,&nbsp;which was initially opposed under President Biden, secured final approval after Nippon agreed to a rare national security agreement. It includes a “golden share” held by the US government, granting it veto power over critical business decisions at the iconic Pittsburgh-based steelmaker.<h2>What is the golden share, and why does it matter</h2>Under the agreement inked with the Trump administration, the golden share gives Washington the authority to veto any relocation of US Steel’s headquarters, changes to its name, job offshoring, or acquisitions of rival firms. President Trump will also name a board member to oversee the terms of the deal, according to Reuters.&nbsp;Nippon Steel’s CEO Eiji Hashimoto, however, downplayed concerns about management constraints.&nbsp;“We won’t be constrained in pursuing anything we aim to do… We retain sufficient managerial freedom,” Hashimoto told reporters at a Tokyo press conference on Thursday, as quoted by Reuters. He said the golden share structure was proposed by the Japanese side to meet US expectations over investment oversight.<h2>Trump’s key role</h2>The Nippon–US Steel deal was initially in jeopardy. Both Trump and then-President Joe Biden opposed the merger during the 2024 election campaign, citing national security and voter sentiment in battleground states like Pennsylvania.&nbsp;Biden’s administration ultimately blocked the deal, prompting legal challenges. But once Trump returned to office, his team reopened a 45-day national security review. By May 2025, Trump had signalled support, calling Nippon Steel a “great partner” at a campaign rally, according to a report by CNN.&nbsp;The final agreement represents a significant win for the Trump administration’s industrial policy, which combines protectionism with foreign investment, so long as it meets US strategic goals.<h2>$11 billion investment, no offshoring promises</h2>Nippon Steel has committed to investing $11 billion in the US by 2028. These funds will go toward expanding capacity, building new mills, and bolstering the American steel supply chain.&nbsp;“This deal is not only a necessary and effective strategy to restore our company to the number one position globally, but also the only path for US Steel to revitalise and grow,” Hashimoto told reporters, as per Reuters.&nbsp;Importantly, Hashimoto pledged that there would be no relocation of headquarters or offshore job transfers. &gt; “We have no intention of relocating its headquarters or shifting production or jobs overseas,” he stated.&nbsp;Vice Chairman Takahiro Mori added that Nippon Steel may consider capital raising options to fund its US expansion.<h2>Strategic move amid tariff walls</h2>Moody’s Ratings analyst Roman Schorr flagged the increased debt burden as a “clear credit negative” but acknowledged that strategic benefits from expanding into the US market, shielded by Trump-era 50 per cent steel tariffs, could offset the risk.&nbsp;“US Steel brings a strong asset base following recent investments, complementing Nippon Steel’s portfolio,” Schorr said in a note, as quoted by Reuters.&nbsp;Shares of Nippon Steel rose 2.1 per cent following the deal’s announcement, outperforming Japan’s Nikkei 225 index, which fell 0.7 per cent.<h2>Union opposition and a political backdrop</h2>The United Steelworkers union had previously opposed the sale, fearing job losses and foreign control. However, the deal’s survival hinged on assurances built into the golden share arrangement, a compromise designed to protect domestic interests and ensure long-term investment in the US steel sector.&nbsp;The merger also reflects a growing global trend: strategic foreign acquisitions are increasingly subject to political scrutiny, particularly when they involve critical sectors like steel, semiconductors, or energy.<h2>Nippon Steel's global vision&nbsp;</h2>With this acquisition, Nippon Steel, currently the world’s fourth-largest steelmaker, gains a stronger foothold in the United States, tapping into the Biden-era infrastructure boom and reshaping global supply chains under Trump’s renewed tariff regime.&nbsp;“Our global strategy is starting to take shape,” Hashimoto said. “We struggled to complete this deal, but now we can move forward.”&nbsp;&nbsp;(With inputs from the agencies)&nbsp;

This agreement includes a golden share for the US government, allowing it to veto significant business decisions and appoint a board member. 

Japanese steel giant Nippon Steel has completed its $14.9 billion acquisition of US Steel, capping off an 18-month saga that reshaped the geopolitics of steel and placed sweeping new oversight powers in the hands of the Trump administration. As confirmed by both companies and first reported by Reuters, the deal, which was initially opposed under President Biden, secured final approval after Nippon agreed to a rare national security agreement. It includes a “golden share” held by the US government, granting it veto power over critical business decisions at the iconic Pittsburgh-based steelmaker. What is the golden share, and why does it matter Under the agreement inked with the Trump administration, the golden share gives Washington the authority to veto any relocation of US Steel’s headquarters, changes to its name, job offshoring, or acquisitions of rival firms. President Trump will also name a board member to oversee the terms of the deal, according to Reuters. Nippon Steel’s CEO Eiji Hashimoto, however, downplayed concerns about management constraints. “We won’t be constrained in pursuing anything we aim to do… We retain sufficient managerial freedom,” Hashimoto told reporters at a Tokyo press conference on Thursday, as quoted by Reuters. He said the golden share structure was proposed by the Japanese side to meet US expectations over investment oversight. Trump’s key role The Nippon–US Steel deal was initially in jeopardy. Both Trump and then-President Joe Biden opposed the merger during the 2024 election campaign, citing national security and voter sentiment in battleground states like Pennsylvania. Biden’s administration ultimately blocked the deal, prompting legal challenges. But once Trump returned to office, his team reopened a 45-day national security review. By May 2025, Trump had signalled support, calling Nippon Steel a “great partner” at a campaign rally, according to a report by CNN. The final agreement represents a significant win for the Trump administration’s industrial policy, which combines protectionism with foreign investment, so long as it meets US strategic goals. $11 billion investment, no offshoring promises Nippon Steel has committed to investing $11 billion in the US by 2028. These funds will go toward expanding capacity, building new mills, and bolstering the American steel supply chain. “This deal is not only a necessary and effective strategy to restore our company to the number one position globally, but also the only path for US Steel to revitalise and grow,” Hashimoto told reporters, as per Reuters. Importantly, Hashimoto pledged that there would be no relocation of headquarters or offshore job transfers. > “We have no intention of relocating its headquarters or shifting production or jobs overseas,” he stated. Vice Chairman Takahiro Mori added that Nippon Steel may consider capital raising options to fund its US expansion. Strategic move amid tariff walls Moody’s Ratings analyst Roman Schorr flagged the increased debt burden as a “clear credit negative” but acknowledged that strategic benefits from expanding into the US market, shielded by Trump-era 50 per cent steel tariffs, could offset the risk. “US Steel brings a strong asset base following recent investments, complementing Nippon Steel’s portfolio,” Schorr said in a note, as quoted by Reuters. Shares of Nippon Steel rose 2.1 per cent following the deal’s announcement, outperforming Japan’s Nikkei 225 index, which fell 0.7 per cent. Union opposition and a political backdrop The United Steelworkers union had previously opposed the sale, fearing job losses and foreign control. However, the deal’s survival hinged on assurances built into the golden share arrangement, a compromise designed to protect domestic interests and ensure long-term investment in the US steel sector. The merger also reflects a growing global trend: strategic foreign acquisitions are increasingly subject to political scrutiny, particularly when they involve critical sectors like steel, semiconductors, or energy. Nippon Steel's global vision With this acquisition, Nippon Steel, currently the world’s fourth-largest steelmaker, gains a stronger foothold in the United States, tapping into the Biden-era infrastructure boom and reshaping global supply chains under Trump’s renewed tariff regime. “Our global strategy is starting to take shape,” Hashimoto said. “We struggled to complete this deal, but now we can move forward.” (With inputs from the agencies)

Japanese steel company Nippon Steel has finalised its $14.9 billion acquisition of US Steel, a deal that faced resistance under President Biden but gained approval after a national security agreement was established.

Nippon Steel seals $14.9 billion US Steel deal with Trump’s golden share veto: CEO says ‘we won’t be constrained’

History may be in the making for the crypto world. Shares of Circle and Coinbase surged on Wednesday after the US Senate passed the long-awaited GENIUS Act, a landmark bill aimed at regulating stablecoins and giving the digital dollar its clearest legal status yet.&nbsp;Circle, issuer of the second-largest stablecoin, ended the day 33.8 per cent higher. Coinbase jumped 16 per cent, while Robinhood, another crypto-friendly platform, rose 4.5 per cent, as reported by Reuters.<h2>GENIUS Act clears Senate, what happens next?</h2>The bipartisan vote marks a watershed moment for crypto oversight in the United States. The GENIUS Act—short for Guaranteed Electronic National Infrastructure for US-dollar Stablecoins-&nbsp;now moves to the Republican-controlled House of Representatives.&nbsp;&nbsp;If cleared, it will head to President Donald Trump for final approval, likely before the end of summer, as per Reuters.For an industry long trapped in regulatory ambiguity, this could mean a full reset.&nbsp;“If signed into law, we expect stablecoins to evolve from the money rail of crypto to the money rail of the internet,” analysts at brokerage Bernstein wrote, as quoted by Reuters.<h2>Why markets cheered the bill</h2>Circle, which went public on the New York Stock Exchange earlier this month, has become one of the biggest beneficiaries of the stablecoin momentum. Its shares, initially priced at $31, closed at $199.59, with another 4.4 per cent jump after hours, according to Reuters.&nbsp;The company’s flagship token, USDC, co-developed with Coinbase, now boasts a market capitalisation of $61.4 billion, according to data from CoinGecko. The stablecoin also underpins much of Coinbase’s revenue from digital dollars, which surged 51 per cent in the first quarter as USDC hit a new record high.&nbsp;“This is history in the making,” said Circle CEO Jeremy Allaire on social platform X. “This legislation will drive US economic and national competitiveness for decades to come.”<h2>What the GENIUS Act will change</h2>If passed into law, the GENIUS Act will introduce tough transparency and reserve standards. All stablecoins will need to be fully backed by highly liquid assets such as US dollars or short-term Treasury bills, while issuers will be required to disclose the composition of their reserves publicly each month. Crucially, the bill will bring the sector under formal oversight by US regulators, offering long-awaited legal clarity.&nbsp;According to Reuters, analysts at Barclays said the bill could become one of two major crypto laws expected to pass in 2025, offering the industry its most comprehensive regulatory base to date.&nbsp;“While stablecoin demand is already impressive, the new bill can accelerate that demand,” said Andrew Rocco, strategist at Zacks Investment Research, as quoted by Reuters.<h2>Wider crypto sector stands to benefit</h2>Though the law is focused on dollar-pegged tokens, its ripple effects could lift the entire digital asset industry. Analysts at KBW said that providing legal status to stablecoins could act as a strong tailwind for Bitcoin and other major cryptocurrencies.&nbsp;The legislation may also pave the way for large corporates and traditional banks to develop their own regulated stablecoins.&nbsp;“This bill lends credibility to the entire digital asset space,” Rocco added, as quoted by Reuters.<h2>The bigger picture: Crypto goes mainstream?</h2>The global stablecoin market is now worth $256 billion, as per CoinGecko. With regulation now moving swiftly through Congress, analysts say the market could grow significantly, especially if stablecoins become embedded into e-commerce, cross-border trade, and digital financial infrastructure.&nbsp;For Coinbase and Circle, the rally may just be the beginning. But for the broader economy, the GENIUS Act could mark a turning point, the moment the US decided to embrace digital dollars, not resist them.&nbsp;(With inputs from the agencies)

Circle’s stock rose 33.8%, Coinbase 16%, and Robinhood 4.5%. The bill moves to the House for approval, potentially heading to President Trump soon. 

History may be in the making for the crypto world. Shares of Circle and Coinbase surged on Wednesday after the US Senate passed the long-awaited GENIUS Act, a landmark bill aimed at regulating stablecoins and giving the digital dollar its clearest legal status yet. Circle, issuer of the second-largest stablecoin, ended the day 33.8 per cent higher. Coinbase jumped 16 per cent, while Robinhood, another crypto-friendly platform, rose 4.5 per cent, as reported by Reuters. GENIUS Act clears Senate, what happens next? The bipartisan vote marks a watershed moment for crypto oversight in the United States. The GENIUS Act—short for Guaranteed Electronic National Infrastructure for US-dollar Stablecoins- now moves to the Republican-controlled House of Representatives. If cleared, it will head to President Donald Trump for final approval, likely before the end of summer, as per Reuters. For an industry long trapped in regulatory ambiguity, this could mean a full reset. “If signed into law, we expect stablecoins to evolve from the money rail of crypto to the money rail of the internet,” analysts at brokerage Bernstein wrote, as quoted by Reuters. Why markets cheered the bill Circle, which went public on the New York Stock Exchange earlier this month, has become one of the biggest beneficiaries of the stablecoin momentum. Its shares, initially priced at $31, closed at $199.59, with another 4.4 per cent jump after hours, according to Reuters. The company’s flagship token, USDC, co-developed with Coinbase, now boasts a market capitalisation of $61.4 billion, according to data from CoinGecko. The stablecoin also underpins much of Coinbase’s revenue from digital dollars, which surged 51 per cent in the first quarter as USDC hit a new record high. “This is history in the making,” said Circle CEO Jeremy Allaire on social platform X. “This legislation will drive US economic and national competitiveness for decades to come.” What the GENIUS Act will change If passed into law, the GENIUS Act will introduce tough transparency and reserve standards. All stablecoins will need to be fully backed by highly liquid assets such as US dollars or short-term Treasury bills, while issuers will be required to disclose the composition of their reserves publicly each month. Crucially, the bill will bring the sector under formal oversight by US regulators, offering long-awaited legal clarity. According to Reuters, analysts at Barclays said the bill could become one of two major crypto laws expected to pass in 2025, offering the industry its most comprehensive regulatory base to date. “While stablecoin demand is already impressive, the new bill can accelerate that demand,” said Andrew Rocco, strategist at Zacks Investment Research, as quoted by Reuters. Wider crypto sector stands to benefit Though the law is focused on dollar-pegged tokens, its ripple effects could lift the entire digital asset industry. Analysts at KBW said that providing legal status to stablecoins could act as a strong tailwind for Bitcoin and other major cryptocurrencies. The legislation may also pave the way for large corporates and traditional banks to develop their own regulated stablecoins. “This bill lends credibility to the entire digital asset space,” Rocco added, as quoted by Reuters. The bigger picture: Crypto goes mainstream? The global stablecoin market is now worth $256 billion, as per CoinGecko. With regulation now moving swiftly through Congress, analysts say the market could grow significantly, especially if stablecoins become embedded into e-commerce, cross-border trade, and digital financial infrastructure. For Coinbase and Circle, the rally may just be the beginning. But for the broader economy, the GENIUS Act could mark a turning point, the moment the US decided to embrace digital dollars, not resist them. (With inputs from the agencies)

Shares of Circle and Coinbase surged after the US Senate passed the GENIUS Act, a pivotal bill regulating stablecoins and affirming the digital dollar's legal status.

Circle, Coinbase shares soar as Senate passes landmark stablecoin bill: What it means for crypto’s future

India’s lucrative petroleum exports may be the next flashpoint in geopolitical tensions, as the European Union prepares to ban imports of fuels refined from Russian crude, including those processed outside Russia.&nbsp;&nbsp;The move could hit a major chunk of India’s outbound shipments, worth over $63 billion in FY25, according to official customs data reviewed by Reuters.&nbsp;The proposed curbs, part of the EU’s 18th Russia sanctions package, come at a time when oil prices are already surging due to the Israel–Iran conflict, adding further volatility to global trade.<h2>EU targets refined fuels, India caught in the crossfire</h2>According to Indian Customs data cited by Reuters, petroleum products made up 14 per cent of India’s total exports in FY25, driven largely by refiners like Reliance Industries and Rosneft-backed Nayara Energy. India’s total fuel exports stood at $84.1 billion in FY24, with Europe emerging as one of the largest buyers.&nbsp;The EU measure, expected to be discussed later this month, would bar imports of diesel, jet fuel, and gasoline derived from Russian crude, regardless of the refining location. The proposal has raised alarm bells in New Delhi because it does not require cooperation from the US or G7, and is being independently driven by Brussels, as reported by Reuters.<h2>Trump’s disengagement from sanctions gives the EU more space</h2>Unlike during the Biden presidency, the current US administration under President Donald Trump has shown limited enthusiasm for expanding Russian sanctions, especially those that could affect energy markets. According to Reuters, Brussels has struggled to get Washington on board with recent rounds of punitive measures.&nbsp;This divergence has led the EU to act unilaterally, creating fresh risks for India, which has continued to import discounted Russian oil while keeping trade ties with the West intact.<h2>Conflict in West Asia complicates timing</h2>The move comes amid escalating tensions in the Gulf. The Israel–Iran conflict, now entering its second week, has pushed Brent crude above $86 per barrel, with fears of shipping disruptions in the Strait of Hormuz, as reported by Bloomberg.&nbsp;India, which imports over 85 per cent of its crude, faces rising freight costs and oil-linked inflation. New sanctions, if passed, could choke off key markets for Indian refiners and raise input costs simultaneously.<h2>Strategic dilemma for India’s oil diplomacy</h2>New Delhi has walked a fine line so far, which is buying Russian crude at a discount while publicly rejecting unilateral sanctions. But experts say the EU’s move could force Indian refiners to pivot, possibly rerouting cargoes to other destinations or facing compliance hurdles.&nbsp;An energy trade expert told Reuters, “Even if the fuel isn’t labelled Russian, the EU could trace its origin through cargo documentation and refinery disclosures.”&nbsp;This would not only complicate exports but also raise transparency and compliance costs for private players.<h2>India’s export outlook at risk</h2>India’s fuel exports have been a lifeline for its trade balance, especially amid tepid global demand for other goods. Losing access to European markets, analysts warn, could shave billions off its annual earnings.&nbsp;With fuel exports contributing $63 billion in FY25 so far, as per Indian Customs and shipping data sourced by Reuters, the stakes couldn’t be higher.As geopolitical tensions mount, India must navigate the fine print of sanctions diplomacy&nbsp;and decide whether to push back, comply quietly, or look east.<h2>What’s next?</h2>The European Commission is expected to finalise the 18th Russia sanctions package later this month, with a formal vote scheduled before the summer recess, according to EU diplomatic sources quoted by Reuters.&nbsp;If adopted, the ban would be the first of its kind to target refined products derived from Russian crude, a shift from previous sanctions that focused on crude oil directly exported from Russia.&nbsp;(With inputs from the agencies)&nbsp;

With Europe being a major buyer of Indian fuel,14% of total exports, this ban could severely affect India trade balance. 

India’s lucrative petroleum exports may be the next flashpoint in geopolitical tensions, as the European Union prepares to ban imports of fuels refined from Russian crude, including those processed outside Russia. The move could hit a major chunk of India’s outbound shipments, worth over $63 billion in FY25, according to official customs data reviewed by Reuters. The proposed curbs, part of the EU’s 18th Russia sanctions package, come at a time when oil prices are already surging due to the Israel–Iran conflict, adding further volatility to global trade. EU targets refined fuels, India caught in the crossfire According to Indian Customs data cited by Reuters, petroleum products made up 14 per cent of India’s total exports in FY25, driven largely by refiners like Reliance Industries and Rosneft-backed Nayara Energy. India’s total fuel exports stood at $84.1 billion in FY24, with Europe emerging as one of the largest buyers. The EU measure, expected to be discussed later this month, would bar imports of diesel, jet fuel, and gasoline derived from Russian crude, regardless of the refining location. The proposal has raised alarm bells in New Delhi because it does not require cooperation from the US or G7, and is being independently driven by Brussels, as reported by Reuters. Trump’s disengagement from sanctions gives the EU more space Unlike during the Biden presidency, the current US administration under President Donald Trump has shown limited enthusiasm for expanding Russian sanctions, especially those that could affect energy markets. According to Reuters, Brussels has struggled to get Washington on board with recent rounds of punitive measures. This divergence has led the EU to act unilaterally, creating fresh risks for India, which has continued to import discounted Russian oil while keeping trade ties with the West intact. Conflict in West Asia complicates timing The move comes amid escalating tensions in the Gulf. The Israel–Iran conflict, now entering its second week, has pushed Brent crude above $86 per barrel, with fears of shipping disruptions in the Strait of Hormuz, as reported by Bloomberg. India, which imports over 85 per cent of its crude, faces rising freight costs and oil-linked inflation. New sanctions, if passed, could choke off key markets for Indian refiners and raise input costs simultaneously. Strategic dilemma for India’s oil diplomacy New Delhi has walked a fine line so far, which is buying Russian crude at a discount while publicly rejecting unilateral sanctions. But experts say the EU’s move could force Indian refiners to pivot, possibly rerouting cargoes to other destinations or facing compliance hurdles. An energy trade expert told Reuters, “Even if the fuel isn’t labelled Russian, the EU could trace its origin through cargo documentation and refinery disclosures.” This would not only complicate exports but also raise transparency and compliance costs for private players. India’s export outlook at risk India’s fuel exports have been a lifeline for its trade balance, especially amid tepid global demand for other goods. Losing access to European markets, analysts warn, could shave billions off its annual earnings. With fuel exports contributing $63 billion in FY25 so far, as per Indian Customs and shipping data sourced by Reuters, the stakes couldn’t be higher. As geopolitical tensions mount, India must navigate the fine print of sanctions diplomacy and decide whether to push back, comply quietly, or look east. What’s next? The European Commission is expected to finalise the 18th Russia sanctions package later this month, with a formal vote scheduled before the summer recess, according to EU diplomatic sources quoted by Reuters. If adopted, the ban would be the first of its kind to target refined products derived from Russian crude, a shift from previous sanctions that focused on crude oil directly exported from Russia. (With inputs from the agencies)

India’s petroleum exports, worth over $63 billion for FY25, are threatened by the EU's proposed ban on fuels refined from Russian crude, impacting a significant portion of its outbound shipments.

Is India’s fuel export in trouble as the EU eyes Russian-origin crude bans?

In the wake of the tragic crash of Air India flight AI171 from Ahmedabad to London, which killed 241 people on board and over 30 on the ground, the airline has announced a series of significant operational and safety measures, including a 15 per cent cut in its international wide-body services.&nbsp;The move aims to restore operational stability and passenger confidence while the inspections and investigations continue.Following a directive from India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), Air India confirmed it has completed “Enhanced Safety Inspections” on 26 out of its 33 Boeing 787-8/9 Dreamliner aircraft. inspections on the remaining aircraft are expected to conclude in the coming days.In addition, the airline is undertaking precautionary inspections of its Boeing 777 fleet. “We continue to work closely with DGCA, the Aircraft Accident Investigation Bureau (AAIB), and the Ministry of Civil Aviation to ensure the highest standards of safety for our passengers, crew, and aircraft,” Air India said in a statement.<h2>Temporary cutback in services</h2>Air India has announced that it will reduce international flights operated by wide-body aircraft by 15 per cent until at least mid-July. The airline cited multiple compounding factors contributing to the disruption, which include enhanced safety inspections, a cautious operational approach by engineering staff and pilots, geopolitical tensions in West Asia and night curfews in European and East Asian airspace.Over the past six days, the airline has had to cancel 83 international flights. The decision to cut services, the airline said, will allow it to deploy reserve aircraft more flexibly and help stabilise operations while minimising last-minute disruptions for passengers.<h2>Passenger support measures</h2>Acknowledging the inconvenience to travellers, Air India has issued an apology and promised proactive communication with affected passengers.&nbsp;The airline is offering rescheduling at no additional cost, full refunds on cancelled flights and alternate travel arrangements wherever possible.A revised international schedule will be released by June 20, 2025, the airline confirmed in the statement.<h2>Assistance to families</h2>Air India expressed its deep sorrow at the loss of life in the AI171 crash, calling it “the worst air tragedy the nation has faced in decades”. The airline said it is working closely with the Ministry of Civil Aviation and the Government of Gujarat to support families of the victims.Tata Group and Air India volunteers are currently stationed in Ahmedabad, assisting bereaved families at hospitals and helping with arrangements for the dignified return of the deceased to their homes.“We consider the family members of the deceased as part of our larger family and stand in complete solidarity with them in these difficult times,” the company statement said.<h2>Airline under investigation</h2>The exact cause of the crash remains under investigation by the DGCA and AAIB. The aircraft, a Boeing 787-8, went down moments after take-off on June 12, crashing into a nearby medical college hostel. It was the worst air crash in India in recent times, and investigators are exploring both mechanical failure and possible human error.While the immediate focus of the airline is on enhanced safety and victim support, Air India has reaffirmed its long-term commitment to restoring trust. “With continued support from our passengers, regulators, and the public, we will come through this tragedy stronger and safer,” the statement said.

Air India's move aims to restore operational stability and passenger confidence while the inspections and investigations continue.

In the wake of the tragic crash of Air India flight AI171 from Ahmedabad to London, which killed 241 people on board and over 30 on the ground, the airline has announced a series of significant operational and safety measures, including a 15 per cent cut in its international wide-body services. The move aims to restore operational stability and passenger confidence while the inspections and investigations continue. Following a directive from India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), Air India confirmed it has completed “Enhanced Safety Inspections” on 26 out of its 33 Boeing 787-8/9 Dreamliner aircraft. inspections on the remaining aircraft are expected to conclude in the coming days. In addition, the airline is undertaking precautionary inspections of its Boeing 777 fleet. “We continue to work closely with DGCA, the Aircraft Accident Investigation Bureau (AAIB), and the Ministry of Civil Aviation to ensure the highest standards of safety for our passengers, crew, and aircraft,” Air India said in a statement. Temporary cutback in services Air India has announced that it will reduce international flights operated by wide-body aircraft by 15 per cent until at least mid-July. The airline cited multiple compounding factors contributing to the disruption, which include enhanced safety inspections, a cautious operational approach by engineering staff and pilots, geopolitical tensions in West Asia and night curfews in European and East Asian airspace. Over the past six days, the airline has had to cancel 83 international flights. The decision to cut services, the airline said, will allow it to deploy reserve aircraft more flexibly and help stabilise operations while minimising last-minute disruptions for passengers. Passenger support measures Acknowledging the inconvenience to travellers, Air India has issued an apology and promised proactive communication with affected passengers. The airline is offering rescheduling at no additional cost, full refunds on cancelled flights and alternate travel arrangements wherever possible. A revised international schedule will be released by June 20, 2025, the airline confirmed in the statement. Assistance to families Air India expressed its deep sorrow at the loss of life in the AI171 crash, calling it “the worst air tragedy the nation has faced in decades”. The airline said it is working closely with the Ministry of Civil Aviation and the Government of Gujarat to support families of the victims. Tata Group and Air India volunteers are currently stationed in Ahmedabad, assisting bereaved families at hospitals and helping with arrangements for the dignified return of the deceased to their homes. “We consider the family members of the deceased as part of our larger family and stand in complete solidarity with them in these difficult times,” the company statement said. Airline under investigation The exact cause of the crash remains under investigation by the DGCA and AAIB. The aircraft, a Boeing 787-8, went down moments after take-off on June 12, crashing into a nearby medical college hostel. It was the worst air crash in India in recent times, and investigators are exploring both mechanical failure and possible human error. While the immediate focus of the airline is on enhanced safety and victim support, Air India has reaffirmed its long-term commitment to restoring trust. “With continued support from our passengers, regulators, and the public, we will come through this tragedy stronger and safer,” the statement said.

Air India's move aims to restore operational stability and passenger confidence while the inspections and investigations continue.

Air India cuts international services on wide-body planes by 15% after Ahmedabad crash

The Social Security and Medicare trust funds are projected to face serious shortfalls sooner than previously expected, according to the 2025 Trustees Reports released on June 18 by the US Department of the Treasury.The Old-Age and Survivors Insurance (OASI) Trust Fund, which supports retirement benefits, is now projected to be depleted by 2033, unchanged from last year. At that point, only 77 per cent of scheduled benefits would be payable using ongoing revenue.&nbsp;When combined with the Disability Insurance (DI) Trust Fund, which is solvent through at least 2099, the merged Social Security funds (OASDI) are projected to run dry by 2034, one year earlier than previously estimated.The Hospital Insurance (HI) Trust Fund that finances Medicare Part A is also on track to exhaust its reserves by 2033, three years sooner than last year’s projection. When that occurs, only 89 per cent of scheduled Medicare hospital benefits can be paid.<h2>Why did the outlook worsen?</h2>Several changes contributed to the accelerated depletion of these trust funds. The most impactful was the Social Security Fairness Act, enacted in January 2025. The law repealed the Windfall Elimination Provision and Government Pension Offset, thereby increasing benefits for certain public-sector retirees. This single policy move significantly added to the projected benefit obligations.Additionally, the report revised key economic assumptions. It extended the expected recovery period for fertility rates by 10 years, now anticipating a stable rate by 2050 rather than 2040.&nbsp;They also reduced the share of GDP expected to go toward worker wages, which means lower payroll tax revenue for the trust funds over time.Medicare’s deteriorating outlook stems from higher-than-expected spending in 2024, particularly in inpatient and hospice services. It also boosted cost projections for early years of the forecast window, increasing the overall burden on Medicare’s HI trust fund.<h2>Congress under pressure</h2>The report emphasised the urgent need for legislative action, warning that delays could limit policy options and force harsher outcomes.“Social Security and Medicare are vital programs that support tens of millions of Americans,” said Treasury Secretary Scott Bessent. “This data underscores the need for lawmakers to take action to support the long-term viability of these programmes.”Social Security Commissioner Frank Bisignano added that maintaining benefits for the 185 million workers paying into the system and the 70 million receiving them in 2025 is a top priority for the Trump administration.Lawmakers have several levers at their disposal, including increasing payroll tax rates, adjusting benefit formulas, or changing the retirement age. However, gridlock remains likely in the short term.<h2>Political stakes and future uncertainty</h2>The report’s findings are already becoming a political flashpoint. Secretary of Labor Lori Chavez-DeRemer emphasised President Trump’s focus on cutting waste, fraud, and abuse to restore trust in these programmes.&nbsp;HHS Secretary Robert F. Kennedy Jr tied Medicare’s cost pressures to broader health system inefficiencies and promoted the administration’s “Make America Healthy Again” agenda.CMS Administrator Dr Mehmet Oz said the agency has blocked over $100 million in suspected fraudulent Medicare payments in recent months as part of broader efforts to reduce misuse and inefficiencies.Still, uncertainty looms. The report’s projections don’t account for new tax policies or major demographic shifts from immigration enforcement—both of which could further affect the financial health of Social Security and Medicare.If no changes are made, beneficiaries would still receive cheques after the depletion dates, but the payments would be significantly reduced by 23 per cent for Social Security, and Medicare hospital benefits will be cut by 11 per cent.Nancy Altman, president of Social Security Works, told The Washington Post, “Congress will act. The depletion date is really an action-forcing event.” But with trust fund exhaustion looming just a decade away, advocates warn that the window to act without disruption is closing fast.

The 2025 Trustees Reports project Social Security and Medicare trust funds will be depleted by 2033-2034, triggering benefit cuts. Key drivers include increased benefits, slower wage growth, and rising healthcare costs.

The Social Security and Medicare trust funds are projected to face serious shortfalls sooner than previously expected, according to the 2025 Trustees Reports released on June 18 by the US Department of the Treasury. The Old-Age and Survivors Insurance (OASI) Trust Fund, which supports retirement benefits, is now projected to be depleted by 2033, unchanged from last year. At that point, only 77 per cent of scheduled benefits would be payable using ongoing revenue. When combined with the Disability Insurance (DI) Trust Fund, which is solvent through at least 2099, the merged Social Security funds (OASDI) are projected to run dry by 2034, one year earlier than previously estimated. The Hospital Insurance (HI) Trust Fund that finances Medicare Part A is also on track to exhaust its reserves by 2033, three years sooner than last year’s projection. When that occurs, only 89 per cent of scheduled Medicare hospital benefits can be paid. Why did the outlook worsen? Several changes contributed to the accelerated depletion of these trust funds. The most impactful was the Social Security Fairness Act, enacted in January 2025. The law repealed the Windfall Elimination Provision and Government Pension Offset, thereby increasing benefits for certain public-sector retirees. This single policy move significantly added to the projected benefit obligations. Additionally, the report revised key economic assumptions. It extended the expected recovery period for fertility rates by 10 years, now anticipating a stable rate by 2050 rather than 2040. They also reduced the share of GDP expected to go toward worker wages, which means lower payroll tax revenue for the trust funds over time. Medicare’s deteriorating outlook stems from higher-than-expected spending in 2024, particularly in inpatient and hospice services. It also boosted cost projections for early years of the forecast window, increasing the overall burden on Medicare’s HI trust fund. Congress under pressure The report emphasised the urgent need for legislative action, warning that delays could limit policy options and force harsher outcomes. “Social Security and Medicare are vital programs that support tens of millions of Americans,” said Treasury Secretary Scott Bessent. “This data underscores the need for lawmakers to take action to support the long-term viability of these programmes.” Social Security Commissioner Frank Bisignano added that maintaining benefits for the 185 million workers paying into the system and the 70 million receiving them in 2025 is a top priority for the Trump administration. Lawmakers have several levers at their disposal, including increasing payroll tax rates, adjusting benefit formulas, or changing the retirement age. However, gridlock remains likely in the short term. Political stakes and future uncertainty The report’s findings are already becoming a political flashpoint. Secretary of Labor Lori Chavez-DeRemer emphasised President Trump’s focus on cutting waste, fraud, and abuse to restore trust in these programmes. HHS Secretary Robert F. Kennedy Jr tied Medicare’s cost pressures to broader health system inefficiencies and promoted the administration’s “Make America Healthy Again” agenda. CMS Administrator Dr Mehmet Oz said the agency has blocked over $100 million in suspected fraudulent Medicare payments in recent months as part of broader efforts to reduce misuse and inefficiencies. Still, uncertainty looms. The report’s projections don’t account for new tax policies or major demographic shifts from immigration enforcement—both of which could further affect the financial health of Social Security and Medicare. If no changes are made, beneficiaries would still receive cheques after the depletion dates, but the payments would be significantly reduced by 23 per cent for Social Security, and Medicare hospital benefits will be cut by 11 per cent. Nancy Altman, president of Social Security Works, told The Washington Post, “Congress will act. The depletion date is really an action-forcing event.” But with trust fund exhaustion looming just a decade away, advocates warn that the window to act without disruption is closing fast.

The 2025 Trustees Reports project Social Security and Medicare trust funds will be depleted by 2033-2034, triggering benefit cuts. Key drivers include increased benefits, slower wage growth, and rising healthcare costs.

US Social Security, Medicare to face depletion by 2033, trustees urge swift action

In a sweeping move against crypto crime, US authorities have seized $225.3 million in digital assets tied to a sprawling international investment fraud ring.&nbsp;&nbsp;The bust marks the largest-ever recovery from a cryptocurrency confidence scam, exposing a sophisticated laundering network and underscoring the rise of financial cybercrime.&nbsp;The seizure, announced on 18 June 2025, follows a civil forfeiture complaint filed by the US Attorney’s Office for the District of Columbia. Investigators from the FBI and US Secret Service tracked hundreds of thousands of blockchain transactions, unmasking illicit flows used to defraud over 400 victims worldwide, including dozens in the US.&nbsp;“This seizure marks the largest cryptocurrency seizure in US Secret Service history,” said Shawn Bradstreet, Special Agent in Charge, as quoted by Reuters. “These scams prey on trust, often resulting in extreme financial hardship.”&nbsp;US Attorney Jeanine Ferris Pirro added, “With the support of President Trump and Attorney General Bondi, this office is working to return stolen funds to victims—and strip criminals of their digital loot,” as per the DOJ press release.<h2>Legal breakthrough under evolving US crypto law</h2>The enforcement action, though civil, not criminal, was enabled by advanced anti-money laundering (AML) laws and represents a growing trend in crypto-related litigation. Prosecutors filed the complaint in the District of Columbia District Court, leveraging new tools to trace decentralised criminal networks.&nbsp;It coincides with a renewed push to regulate crypto under the GENIUS Act, which recently passed the US Senate and is now headed for a House vote. The bill aims to create federal oversight for stablecoins and digital asset infrastructure, long viewed as a blind spot in financial regulation.<h2>Crypto’s expanding footprint in the US</h2>The seizure highlights the scale of the US crypto ecosystem. Circle’s USDC stablecoin, which was co-founded with Coinbase, has a market capitalisation of $61.4 billion, making it the second largest in the world, according to Reuters.&nbsp;According to Bloomberg, Coinbase—the largest publicly listed crypto exchange in the US—handled approximately 11 per cent of global crypto transactions in 2024, with the US accounting for nearly 25 per cent of all stablecoin activity. The country remains the world’s single largest market for digital assets.<h2>Crypto scams surge to record levels</h2>The action comes amid a dramatic rise in crypto scams. According to Chainalysis, investment fraud and confidence scams generated between $9.9 and $12.4 billion in illicit proceeds in 2024, a year-on-year increase of over 35 per cent.&nbsp;These scams, often labelled “pig butchering,” involve long-term deception, where victims are emotionally manipulated into transferring funds into fake crypto investment platforms.&nbsp;Meanwhile, the FBI’s Internet Crime Complaint Centre (IC3) reported $5.8 billion in reported losses from crypto-related fraud in 2024, up from $5.6 billion in 2023. Institutional thefts are also surging, with $2.2 billion stolen in hacks last year alone, as per Chainalysis.<h2>The global trail: From Southeast Asia to the US</h2>US law enforcement reportedly traced scam proceeds through laundering networks spanning Southeast Asia, including Philippine-linked addresses, and illicit trading platforms in Myanmar and Thailand.&nbsp;As per The Wall Street Journal, one syndicate, Huione, was linked to North Korean hackers and laundered over $28 billion via crypto exchanges and shell companies, prompting recent US Treasury sanctions.&nbsp;“These are not lone-wolf scammers,” said FBI Special Agent Sanjay Virmani, as quoted by Reuters. “They are coordinated criminal networks exploiting international gaps in oversight.”<h2>Victims to receive restitution</h2>The US government has secured custody of the funds and is now working to return them. Victims can report their cases via the FBI’s IC3 portal (www.ic3.gov), using code BT06182025 for case identification.&nbsp;The investigation is led by Assistant US Attorneys Kevin Rosenberg and Rick Blaylock Jr., along with the DOJ’s Computer Crime &amp; Intellectual Property Section (CCIPS). The stablecoin firm Tether also played a key role by cooperating with investigators.<h2>What’s next?&nbsp;</h2>While the Trump administration recently disbanded the National Cryptocurrency Enforcement Team, the DOJ says crypto enforcement remains a top priority. Deputy Attorney General Todd Blanche has pledged “aggressive pursuit of decentralised fraud rings,” according to internal memos reported by CNN.&nbsp;Still, the threat continues to evolve. Experts warn of rising use of AI-driven phishing scams, making it harder for even tech-savvy investors to detect fraud.&nbsp;“This is the Wild West of finance. And it’s not just the West—it’s the Wild North, East and South too,” said Pirro at the press conference, as quoted by CNN.&nbsp;As digital currencies become mainstream, so too do the risks. The record-breaking $225 million seizure is not just a headline—it’s a glimpse into the murky world of decentralised crime.&nbsp;But with new legislation, public–private cooperation, and more tech-savvy investigators, the tide may be turning. Crypto isn’t going anywhere—but neither are the scammers. Now, regulators must race to keep&nbsp;up.&nbsp;&nbsp;(With inputs from the agencies)&nbsp;

This action, announced on June 18, 2025, stemmed from a civil forfeiture complaint by the US Attorney Office, with investigations revealing illicit funds affecting over 400 victims globally. 

In a sweeping move against crypto crime, US authorities have seized $225.3 million in digital assets tied to a sprawling international investment fraud ring. The bust marks the largest-ever recovery from a cryptocurrency confidence scam, exposing a sophisticated laundering network and underscoring the rise of financial cybercrime. The seizure, announced on 18 June 2025, follows a civil forfeiture complaint filed by the US Attorney’s Office for the District of Columbia. Investigators from the FBI and US Secret Service tracked hundreds of thousands of blockchain transactions, unmasking illicit flows used to defraud over 400 victims worldwide, including dozens in the US. “This seizure marks the largest cryptocurrency seizure in US Secret Service history,” said Shawn Bradstreet, Special Agent in Charge, as quoted by Reuters. “These scams prey on trust, often resulting in extreme financial hardship.” US Attorney Jeanine Ferris Pirro added, “With the support of President Trump and Attorney General Bondi, this office is working to return stolen funds to victims—and strip criminals of their digital loot,” as per the DOJ press release. Legal breakthrough under evolving US crypto law The enforcement action, though civil, not criminal, was enabled by advanced anti-money laundering (AML) laws and represents a growing trend in crypto-related litigation. Prosecutors filed the complaint in the District of Columbia District Court, leveraging new tools to trace decentralised criminal networks. It coincides with a renewed push to regulate crypto under the GENIUS Act, which recently passed the US Senate and is now headed for a House vote. The bill aims to create federal oversight for stablecoins and digital asset infrastructure, long viewed as a blind spot in financial regulation. Crypto’s expanding footprint in the US The seizure highlights the scale of the US crypto ecosystem. Circle’s USDC stablecoin, which was co-founded with Coinbase, has a market capitalisation of $61.4 billion, making it the second largest in the world, according to Reuters. According to Bloomberg, Coinbase—the largest publicly listed crypto exchange in the US—handled approximately 11 per cent of global crypto transactions in 2024, with the US accounting for nearly 25 per cent of all stablecoin activity. The country remains the world’s single largest market for digital assets. Crypto scams surge to record levels The action comes amid a dramatic rise in crypto scams. According to Chainalysis, investment fraud and confidence scams generated between $9.9 and $12.4 billion in illicit proceeds in 2024, a year-on-year increase of over 35 per cent. These scams, often labelled “pig butchering,” involve long-term deception, where victims are emotionally manipulated into transferring funds into fake crypto investment platforms. Meanwhile, the FBI’s Internet Crime Complaint Centre (IC3) reported $5.8 billion in reported losses from crypto-related fraud in 2024, up from $5.6 billion in 2023. Institutional thefts are also surging, with $2.2 billion stolen in hacks last year alone, as per Chainalysis. The global trail: From Southeast Asia to the US US law enforcement reportedly traced scam proceeds through laundering networks spanning Southeast Asia, including Philippine-linked addresses, and illicit trading platforms in Myanmar and Thailand. As per The Wall Street Journal, one syndicate, Huione, was linked to North Korean hackers and laundered over $28 billion via crypto exchanges and shell companies, prompting recent US Treasury sanctions. “These are not lone-wolf scammers,” said FBI Special Agent Sanjay Virmani, as quoted by Reuters. “They are coordinated criminal networks exploiting international gaps in oversight.” Victims to receive restitution The US government has secured custody of the funds and is now working to return them. Victims can report their cases via the FBI’s IC3 portal (www.ic3.gov), using code BT06182025 for case identification. The investigation is led by Assistant US Attorneys Kevin Rosenberg and Rick Blaylock Jr., along with the DOJ’s Computer Crime & Intellectual Property Section (CCIPS). The stablecoin firm Tether also played a key role by cooperating with investigators. What’s next? While the Trump administration recently disbanded the National Cryptocurrency Enforcement Team, the DOJ says crypto enforcement remains a top priority. Deputy Attorney General Todd Blanche has pledged “aggressive pursuit of decentralised fraud rings,” according to internal memos reported by CNN. Still, the threat continues to evolve. Experts warn of rising use of AI-driven phishing scams, making it harder for even tech-savvy investors to detect fraud. “This is the Wild West of finance. And it’s not just the West—it’s the Wild North, East and South too,” said Pirro at the press conference, as quoted by CNN. As digital currencies become mainstream, so too do the risks. The record-breaking $225 million seizure is not just a headline—it’s a glimpse into the murky world of decentralised crime. But with new legislation, public–private cooperation, and more tech-savvy investigators, the tide may be turning. Crypto isn’t going anywhere—but neither are the scammers. Now, regulators must race to keep up. (With inputs from the agencies)

US authorities seized $225.3 million in digital assets linked to a major international investment fraud ring, marking the largest recovery from a cryptocurrency confidence scam.

US seizes $225 million in the biggest crypto scam; is this a turning point for regulation?

Oklahoma, traditionally known for its oil and gas industry, is making unexpected strides in the critical minerals sector. The state is quickly becoming a hub for refining and processing key critical minerals needed for the clean energy transition, military technologies, and electronic devices, all of which have become increasingly reliant on China.At the heart of this transformation is Westwin Elements, a startup based in the shadow of the Wichita Mountains. Westwin has developed the only nickel refinery in the United States, a crucial element used in lithium-ion batteries and military applications.&nbsp;The facility, currently capable of processing 200 tonnes of nickel annually, plans to scale up significantly, with projections to refine up to 34,000 tonnes by 2030, which could meet 10 per cent of the nation’s annual nickel demand. This facility is part of Oklahoma's broader effort to reduce US dependence on Chinese supply chains for critical minerals amid rising trade tension between the two nations.Nickel, essential for electric vehicle (EV) batteries, is increasingly sought after as the US ramps up its energy transition and military capabilities. Reuters reported that Westwin is negotiating with the Pentagon about a contract to supply nickel for military drones and other equipment, further emphasising the strategic importance of securing domestic supplies of critical minerals.<h2>A diversified approach to mineral processing</h2>Westwin is not alone in Oklahoma’s mineral processing boom. The state is also seeing the development of a significant lithium refinery by Stardust Power, which will produce 50,000 tonnes of lithium annually.&nbsp;This facility, set to meet one-fifth of the projected US lithium demand by 2030, will also leverage the state’s abundant wind power to partly power its operations. Japan’s Sumitomo has already entered into a preliminary agreement to purchase a portion of Stardust's output, further solidifying Oklahoma’s role in the global minerals market.Additionally, USA Rare Earth, a company focused on producing magnets for EVs and defence applications, is set to open a facility in the state.&nbsp;The magnet factory will produce enough magnets annually to power more than 400,000 EVs, a critical need in the US as China has placed export restrictions on rare earth minerals. These developments highlight Oklahoma’s commitment to becoming a national leader in rare earths and other critical minerals.<h2>The state's appeal for investment</h2>Despite its lack of major mineral deposits, Oklahoma has managed to attract significant investments into its mineral processing infrastructure. The state located at the centre of the US with access to major railways, highways, and an inland port on the Mississippi River makes it an appealing base for manufacturers and distributors of critical minerals.&nbsp;The state also offers tax rebates, financial incentives, and a workforce experienced in energy extraction, making it a prime location for the burgeoning sector.Oklahoma’s streamlined regulatory environment, promoted as a “one phone call state”, further encourages investment. In recent years, the state has seen a significant influx of companies such as Green Li-ion, Blue Whale Materials, and Natural Evolution, which are working on recycling lithium-ion batteries and electronic waste.&nbsp;Oklahoma’s focus on recycling, coupled with its energy experience, positions it as a central player in the circular economy for critical minerals.<h2>Overcoming challenges</h2>While Oklahoma’s push into critical minerals is gaining momentum, the state faces challenges. One of the most significant hurdles is its underperforming education system, which ranks 48th in the nation.&nbsp;This could make it difficult to attract high-tech talent to the region, an issue that the state is attempting to address through a school voucher system designed to increase competition among schools and attract families.&nbsp;Additionally, Oklahoma’s efforts to woo major tech companies have been met with setbacks, including Tesla supplier Panasonic’s decision to build a battery plant in Kansas instead of Oklahoma.Despite these challenges, state officials remain optimistic and committed to the long-term vision of making Oklahoma a key player in the critical minerals market. Governor Kevin Stitt has emphasised that Oklahoma is “swinging for the fences” in its efforts to reshape the state’s economic future.<h2>Push for mineral independence</h2>The recent development is part of a broader trend in the US and Canada to reduce dependence on China for critical minerals. As geopolitical tensions rise, nations are increasingly focused on securing domestic sources of critical materials.&nbsp;The US government is working to streamline permitting processes and expedite critical mineral development through initiatives like the FAST-41 programme, designed to cut delays in infrastructure development.At the same time, global market dynamics are evolving, with countries like Japan and members of the G7 forming agreements to ensure the diversification of mineral supply chains.&nbsp;The US is investing heavily in the extraction, processing, and recycling of these minerals to ensure a steady, reliable supply for its clean energy and defence industries.As Oklahoma continues to develop its critical mineral processing capabilities, it is poised to play a central role in US efforts to reduce reliance on foreign sources, especially China, for essential materials.&nbsp;With investments flowing into the state and a government eager to support these initiatives, Oklahoma is positioning itself as a linchpin in the national strategy to build resilient, secure supply chains for critical minerals.&nbsp;(With inputs from agencies)

Oklahoma is quickly becoming a hub for refining and processing key critical minerals needed for the clean energy transition, military technologies, and electronic devices.

Oklahoma, traditionally known for its oil and gas industry, is making unexpected strides in the critical minerals sector. The state is quickly becoming a hub for refining and processing key critical minerals needed for the clean energy transition, military technologies, and electronic devices, all of which have become increasingly reliant on China. At the heart of this transformation is Westwin Elements, a startup based in the shadow of the Wichita Mountains. Westwin has developed the only nickel refinery in the United States, a crucial element used in lithium-ion batteries and military applications. The facility, currently capable of processing 200 tonnes of nickel annually, plans to scale up significantly, with projections to refine up to 34,000 tonnes by 2030, which could meet 10 per cent of the nation’s annual nickel demand. This facility is part of Oklahoma's broader effort to reduce US dependence on Chinese supply chains for critical minerals amid rising trade tension between the two nations. Nickel, essential for electric vehicle (EV) batteries, is increasingly sought after as the US ramps up its energy transition and military capabilities. Reuters reported that Westwin is negotiating with the Pentagon about a contract to supply nickel for military drones and other equipment, further emphasising the strategic importance of securing domestic supplies of critical minerals. A diversified approach to mineral processing Westwin is not alone in Oklahoma’s mineral processing boom. The state is also seeing the development of a significant lithium refinery by Stardust Power, which will produce 50,000 tonnes of lithium annually. This facility, set to meet one-fifth of the projected US lithium demand by 2030, will also leverage the state’s abundant wind power to partly power its operations. Japan’s Sumitomo has already entered into a preliminary agreement to purchase a portion of Stardust's output, further solidifying Oklahoma’s role in the global minerals market. Additionally, USA Rare Earth, a company focused on producing magnets for EVs and defence applications, is set to open a facility in the state. The magnet factory will produce enough magnets annually to power more than 400,000 EVs, a critical need in the US as China has placed export restrictions on rare earth minerals. These developments highlight Oklahoma’s commitment to becoming a national leader in rare earths and other critical minerals. The state's appeal for investment Despite its lack of major mineral deposits, Oklahoma has managed to attract significant investments into its mineral processing infrastructure. The state located at the centre of the US with access to major railways, highways, and an inland port on the Mississippi River makes it an appealing base for manufacturers and distributors of critical minerals. The state also offers tax rebates, financial incentives, and a workforce experienced in energy extraction, making it a prime location for the burgeoning sector. Oklahoma’s streamlined regulatory environment, promoted as a “one phone call state”, further encourages investment. In recent years, the state has seen a significant influx of companies such as Green Li-ion, Blue Whale Materials, and Natural Evolution, which are working on recycling lithium-ion batteries and electronic waste. Oklahoma’s focus on recycling, coupled with its energy experience, positions it as a central player in the circular economy for critical minerals. Overcoming challenges While Oklahoma’s push into critical minerals is gaining momentum, the state faces challenges. One of the most significant hurdles is its underperforming education system, which ranks 48th in the nation. This could make it difficult to attract high-tech talent to the region, an issue that the state is attempting to address through a school voucher system designed to increase competition among schools and attract families. Additionally, Oklahoma’s efforts to woo major tech companies have been met with setbacks, including Tesla supplier Panasonic’s decision to build a battery plant in Kansas instead of Oklahoma. Despite these challenges, state officials remain optimistic and committed to the long-term vision of making Oklahoma a key player in the critical minerals market. Governor Kevin Stitt has emphasised that Oklahoma is “swinging for the fences” in its efforts to reshape the state’s economic future. Push for mineral independence The recent development is part of a broader trend in the US and Canada to reduce dependence on China for critical minerals. As geopolitical tensions rise, nations are increasingly focused on securing domestic sources of critical materials. The US government is working to streamline permitting processes and expedite critical mineral development through initiatives like the FAST-41 programme, designed to cut delays in infrastructure development. At the same time, global market dynamics are evolving, with countries like Japan and members of the G7 forming agreements to ensure the diversification of mineral supply chains. The US is investing heavily in the extraction, processing, and recycling of these minerals to ensure a steady, reliable supply for its clean energy and defence industries. As Oklahoma continues to develop its critical mineral processing capabilities, it is poised to play a central role in US efforts to reduce reliance on foreign sources, especially China, for essential materials. With investments flowing into the state and a government eager to support these initiatives, Oklahoma is positioning itself as a linchpin in the national strategy to build resilient, secure supply chains for critical minerals. (With inputs from agencies)

Oklahoma is quickly becoming a hub for refining and processing key critical minerals needed for the clean energy transition, military technologies, and electronic devices.

Oklahoma emerges as key player in US’ plan to counter China’s critical minerals dominance

Iran has repeatedly warned that it might block Strait of Hormuz, a narrow sea route, in response to pressure from Western countries, although it has never actually done so.On June 13, Israel carried out attacks on Iran, claiming it hit nuclear sites, missile production centres, and top military officials. This marked the beginning of a long-term mission aimed at stopping Iran from developing a nuclear weapon.Iran has always denied that it wants to build a nuclear weapon. However, in the past, it has warned that it might shut down the Strait of Hormuz in response to pressure from Western countries. Experts say that if this important waterway is blocked, it could disrupt global trade and cause oil prices around the world to rise sharply.The Strait of Hormuz is a narrow waterway located between Oman and Iran. It connects the Persian Gulf in the north to the Gulf of Oman and the Arabian Sea in the south.At its narrowest point, the strait is about 21 miles (33 kilometres) wide. However, ships can only pass through a lane that is just 2 miles (3 kilometres) wide in each direction, making it a very tight and important passage for global shipping.<h2>Why is the Strait of Hormuz important?</h2>Nearly 20 per cent of the world’s oil passes through this narrow waterway. From early 2022 up to last month, around 17.8 to 20.8 million barrels of crude oil, gas condensate, and other fuels were transported through the strait every single day, according to data shared by Vortexa and reported by Hindu Business Line. This makes the Strait one of the most important routes for global energy supply.Major oil-producing countries like Saudi Arabia, Iran, the United Arab Emirates (UAE), Kuwait, and Iraq—most of them members of OPEC—send most of their crude oil through the Strait of Hormuz, mainly to countries in Asia. However, both the UAE and Saudi Arabia have been trying to create alternative routes to avoid depending only on this narrow passage.According to the U.S. Energy Information Administration, as of June last year, about 2.6 million barrels per day of extra capacity from pipelines in the UAE and Saudi Arabia could be used to move oil without going through the Strait of Hormuz.Qatar, one of the world’s top exporters of liquefied natural gas (LNG), sends nearly all of its LNG shipments through this narrow strait.Although Iran has often warned that it might block the strait in response to foreign pressure, it has never actually done so.To keep the area safe for international trade, the U.S. Navy’s Fifth Fleet, based in Bahrain, is responsible for protecting commercial ships passing through the region.<h2>How Distant Wars Drain Your Wallet</h2>Many times, we feel that global conflicts are too far away to affect us. But the truth is, events happening thousands of miles away can impact our daily lives—like the price we pay for fuel or groceries. The current tension between Israel and Iran is a clear example of this. The biggest concern for most people? Rising crude oil prices.In just five days, Brent crude prices jumped by 7 per cent, crossing $70 per barrel. For India—which buys 89 per cent of its oil from other countries—even a small price rise can have a big impact on the entire economy.In the financial year 2024–25, India spent $137 billion on oil imports, making up about 15 per cent of the country’s total import expenses. So, when global oil prices go up, it affects almost everything—from petrol and diesel to food prices and transportation costs. It’s like an extra hidden burden on both ordinary people and businesses.<h2>What a $10 Increase in Oil Prices Really Means</h2>When crude oil prices go up by $10, it usually affects the economy in two major ways. The country’s overall growth (GDP) may slow down by about 0.3 to 0.4 per cent, and inflation (CPI) may rise by around 0.4 per cent. But these changes aren’t just numbers in reports—they impact everyday life. Families, businesses, and the economy as a whole start feeling the pinch in many different ways.Here's a simple example to explain how a $10 increase in crude oil prices can affect everyday life:<h3>Oil Price Ripple Effect</h3>Let’s say crude oil goes up by $10 per barrel.<ul><li>Fuel prices rise: Petrol and diesel become costlier. If you were paying ₹100 per litre, you might now pay ₹105 or more. This directly affects people who drive or use public transport.</li><li>Transportation costs increase: Trucks and delivery vehicles use more expensive fuel, so transporting goods like vegetables, fruits, and groceries costs more. That means prices at your local market or supermarket also go up.</li><li>Higher production costs: Factories that use oil or gas to run machines or generate power also face higher bills. To make up for that, they raise the prices of products like packaged foods, paints, tyres, or even plastic items.</li><li>Air travel becomes expensive: Airlines spend more on aviation fuel, so ticket prices go up. A budget flight from Bengaluru to Delhi that used to cost ₹4,000 might now cost ₹4,500 or more.</li><li>Household budget is hit: As everything from cooking gas to daily groceries gets costlier, families have to cut back on spending or save less. This affects the overall economy because when people spend less, businesses earn less too.</li></ul>So, a $10 oil hike may seem small, but it touches almost every corner of life—like a chain reaction.<h3>Inflation’s Hidden Daily Cost</h3>An example of how a 0.4% increase in CPI (Consumer Price Index) affects you:The CPI measures the average change in the prices of goods and services people use every day—like food, fuel, clothes, transport, and rent. So, when CPI goes up by 0.4%, it means that the overall cost of living has increased by that much.Let’s say your monthly household expenses are ₹50,000. A 0.4 per cent rise in CPI means your costs will go up by:₹50,000 × 0.004 = ₹200 So now, you’ll be spending ₹50,200 per month for the same things.It might not seem like a big jump at first—but over a year, that’s ₹2,400 extra, just due to inflation caused by rising oil prices. And this is just a basic estimate—if oil prices stay high or keep increasing, the impact could be even more.In short, a 0.4 per cent CPI rise is like a slow, silent drain on your wallet.<h3>Industries Likely to Face Rising Costs</h3><ul><li>Airlines: Fuel is one of the biggest expenses for airlines. When oil prices go up, jet fuel becomes costlier. This reduces their profits. Airlines may either bear the extra cost or increase ticket prices, which could make people travel less. For instance, InterGlobe Aviation (which operates Indigo) &nbsp;spent around 31.1 per cent of its earnings on fuel in the financial year 2025.</li><li>Logistics and FMCG (Fast-Moving Consumer Goods): Transporting goods becomes more expensive when fuel prices rise. Delivery companies have to pay more for diesel, and brands that sell daily-use items or online products also face higher transport costs. This either cuts into their profit or forces them to increase prices, which can reduce customer demand.</li><li>Paint Companies: Paint manufacturers rely on raw materials like binders, solvents, and additives—all of which are derived from crude oil. When oil prices go up, the cost of these materials also increases, making it more expensive to produce paint.</li><li>Auto Companies: The auto industry is closely tied to oil. When fuel prices rise, it becomes costlier to run petrol or diesel vehicles. As a result, people may postpone buying new cars or choose smaller, fuel-efficient ones. This can lead to a drop in sales and tighter profit margins. To stay competitive, automakers may reduce prices, offer attractive loans, or cut production costs. Simply put, higher oil prices reduce demand and push companies to adapt.</li><li>Fertiliser Companies: Fertilisers like urea and DAP (diammonium phosphate) use ammonia as a key ingredient, and ammonia is made using natural gas. So, when oil and gas prices rise, the cost of making fertilisers also goes up. This affects fertiliser companies because their production becomes more expensive. Sometimes, they have to increase prices, which can hurt demand. Other times, they absorb the costs, which reduces their profits. In either case, rising fuel prices create a big challenge for the fertiliser industry.</li></ul><h3>Sectors That Could Do Well</h3><ul><li>Oil Refiners: When crude oil prices fluctuate sharply, the difference between the cost of buying crude oil and the price at which companies sell refined products like petrol, diesel, and jet fuel becomes important. This difference is called the crack spread. For example, if a refiner buys crude oil at ₹5,000 per barrel and sells the refined fuels for ₹6,500, the ₹1,500 difference is their profit margin. When this margin widens due to market conditions, oil refiners make more profit, even if crude prices are high.</li><li>Defence Companies: During times of global tension or war threats, governments tend to spend more on military preparedness. This results in increased orders for defence companies, boosting their revenue. Investors also consider these companies more stable during uncertain times, making their stocks more attractive.</li><li>Gold &amp; Bonds: When risk levels go up globally—like during wars or economic crises—investors often pull their money out of stocks and move it into safer assets like gold and bonds. This shift increases demand and prices for gold and bonds, helping existing investors earn better returns.</li></ul><h2>As an Investor, What Should You Watch?</h2>Here’s what you need to keep an eye on if you want to understand how rising oil prices could affect the Indian economy and markets:<ul><li>Brent Crude Above $80: When Brent crude oil trades above $80 per barrel, India’s oil import bill rises sharply. This pushes up inflation because fuel and transportation become costlier. As a result, foreign investors (FIIs) may start pulling money out of Indian markets, fearing lower profits. That can lead to a stock market correction. Example: If oil hits $90, petrol prices may rise by ₹4–₹5 per litre, impacting consumer spending and investor sentiment.</li><li>Rupee vs Dollar (USD/INR) Movement: India buys crude oil using US dollars. So, if the rupee weakens against the dollar, it makes oil even more expensive for India, worsening inflation. Investors should monitor how the rupee is trading compared to the dollar. Example: If ₹82 was worth 1 USD earlier and weakens to 85, the same oil shipment costs more rupees now—this pushes up overall fuel costs.</li><li>RBI’s Policy Signals: When inflation goes up due to expensive oil, the Reserve Bank of India (RBI) may avoid cutting interest rates—or may even raise them.</li></ul><h2>Why does RBI keep rates high?</h2>High interest rates help control inflation. By making loans and EMIs expensive, the RBI reduces demand for borrowing and spending. This helps cool off rising prices across the economy. But the flip side is that businesses borrow less, and consumers spend cautiously. That can slow down economic growth. Example: If inflation stays above 6 per cent, RBI may delay rate cuts for months, meaning your home loan EMIs won’t come down anytime soon.

Many times, we feel that global conflicts are too far away to affect us. But the truth is, events happening thousands of miles away can impact our daily lives—like the price we pay for fuel or groceries. The current tension between Israel and Iran is a clear example of this. 

Iran has repeatedly warned that it might block Strait of Hormuz, a narrow sea route, in response to pressure from Western countries, although it has never actually done so. On June 13, Israel carried out attacks on Iran, claiming it hit nuclear sites, missile production centres, and top military officials. This marked the beginning of a long-term mission aimed at stopping Iran from developing a nuclear weapon. Iran has always denied that it wants to build a nuclear weapon. However, in the past, it has warned that it might shut down the Strait of Hormuz in response to pressure from Western countries. Experts say that if this important waterway is blocked, it could disrupt global trade and cause oil prices around the world to rise sharply. The Strait of Hormuz is a narrow waterway located between Oman and Iran. It connects the Persian Gulf in the north to the Gulf of Oman and the Arabian Sea in the south. At its narrowest point, the strait is about 21 miles (33 kilometres) wide. However, ships can only pass through a lane that is just 2 miles (3 kilometres) wide in each direction, making it a very tight and important passage for global shipping. Why is the Strait of Hormuz important? Nearly 20 per cent of the world’s oil passes through this narrow waterway. From early 2022 up to last month, around 17.8 to 20.8 million barrels of crude oil, gas condensate, and other fuels were transported through the strait every single day, according to data shared by Vortexa and reported by Hindu Business Line. This makes the Strait one of the most important routes for global energy supply. Major oil-producing countries like Saudi Arabia, Iran, the United Arab Emirates (UAE), Kuwait, and Iraq—most of them members of OPEC—send most of their crude oil through the Strait of Hormuz, mainly to countries in Asia. However, both the UAE and Saudi Arabia have been trying to create alternative routes to avoid depending only on this narrow passage. According to the U.S. Energy Information Administration, as of June last year, about 2.6 million barrels per day of extra capacity from pipelines in the UAE and Saudi Arabia could be used to move oil without going through the Strait of Hormuz. Qatar, one of the world’s top exporters of liquefied natural gas (LNG), sends nearly all of its LNG shipments through this narrow strait. Although Iran has often warned that it might block the strait in response to foreign pressure, it has never actually done so. To keep the area safe for international trade, the U.S. Navy’s Fifth Fleet, based in Bahrain, is responsible for protecting commercial ships passing through the region. How Distant Wars Drain Your Wallet Many times, we feel that global conflicts are too far away to affect us. But the truth is, events happening thousands of miles away can impact our daily lives—like the price we pay for fuel or groceries. The current tension between Israel and Iran is a clear example of this. The biggest concern for most people? Rising crude oil prices. In just five days, Brent crude prices jumped by 7 per cent, crossing $70 per barrel. For India—which buys 89 per cent of its oil from other countries—even a small price rise can have a big impact on the entire economy. In the financial year 2024–25, India spent $137 billion on oil imports, making up about 15 per cent of the country’s total import expenses. So, when global oil prices go up, it affects almost everything—from petrol and diesel to food prices and transportation costs. It’s like an extra hidden burden on both ordinary people and businesses. What a $10 Increase in Oil Prices Really Means When crude oil prices go up by $10, it usually affects the economy in two major ways. The country’s overall growth (GDP) may slow down by about 0.3 to 0.4 per cent, and inflation (CPI) may rise by around 0.4 per cent. But these changes aren’t just numbers in reports—they impact everyday life. Families, businesses, and the economy as a whole start feeling the pinch in many different ways. Here's a simple example to explain how a $10 increase in crude oil prices can affect everyday life: Oil Price Ripple Effect Let’s say crude oil goes up by $10 per barrel. Fuel prices rise: Petrol and diesel become costlier. If you were paying ₹100 per litre, you might now pay ₹105 or more. This directly affects people who drive or use public transport. Transportation costs increase: Trucks and delivery vehicles use more expensive fuel, so transporting goods like vegetables, fruits, and groceries costs more. That means prices at your local market or supermarket also go up. Higher production costs: Factories that use oil or gas to run machines or generate power also face higher bills. To make up for that, they raise the prices of products like packaged foods, paints, tyres, or even plastic items. Air travel becomes expensive: Airlines spend more on aviation fuel, so ticket prices go up. A budget flight from Bengaluru to Delhi that used to cost ₹4,000 might now cost ₹4,500 or more. Household budget is hit: As everything from cooking gas to daily groceries gets costlier, families have to cut back on spending or save less. This affects the overall economy because when people spend less, businesses earn less too. So, a $10 oil hike may seem small, but it touches almost every corner of life—like a chain reaction. Inflation’s Hidden Daily Cost An example of how a 0.4% increase in CPI (Consumer Price Index) affects you: The CPI measures the average change in the prices of goods and services people use every day—like food, fuel, clothes, transport, and rent. So, when CPI goes up by 0.4%, it means that the overall cost of living has increased by that much. Let’s say your monthly household expenses are ₹50,000. A 0.4 per cent rise in CPI means your costs will go up by: ₹50,000 × 0.004 = ₹200 So now, you’ll be spending ₹50,200 per month for the same things. It might not seem like a big jump at first—but over a year, that’s ₹2,400 extra, just due to inflation caused by rising oil prices. And this is just a basic estimate—if oil prices stay high or keep increasing, the impact could be even more. In short, a 0.4 per cent CPI rise is like a slow, silent drain on your wallet. Industries Likely to Face Rising Costs Airlines: Fuel is one of the biggest expenses for airlines. When oil prices go up, jet fuel becomes costlier. This reduces their profits. Airlines may either bear the extra cost or increase ticket prices, which could make people travel less. For instance, InterGlobe Aviation (which operates Indigo) spent around 31.1 per cent of its earnings on fuel in the financial year 2025. Logistics and FMCG (Fast-Moving Consumer Goods): Transporting goods becomes more expensive when fuel prices rise. Delivery companies have to pay more for diesel, and brands that sell daily-use items or online products also face higher transport costs. This either cuts into their profit or forces them to increase prices, which can reduce customer demand. Paint Companies: Paint manufacturers rely on raw materials like binders, solvents, and additives—all of which are derived from crude oil. When oil prices go up, the cost of these materials also increases, making it more expensive to produce paint. Auto Companies: The auto industry is closely tied to oil. When fuel prices rise, it becomes costlier to run petrol or diesel vehicles. As a result, people may postpone buying new cars or choose smaller, fuel-efficient ones. This can lead to a drop in sales and tighter profit margins. To stay competitive, automakers may reduce prices, offer attractive loans, or cut production costs. Simply put, higher oil prices reduce demand and push companies to adapt. Fertiliser Companies: Fertilisers like urea and DAP (diammonium phosphate) use ammonia as a key ingredient, and ammonia is made using natural gas. So, when oil and gas prices rise, the cost of making fertilisers also goes up. This affects fertiliser companies because their production becomes more expensive. Sometimes, they have to increase prices, which can hurt demand. Other times, they absorb the costs, which reduces their profits. In either case, rising fuel prices create a big challenge for the fertiliser industry. Sectors That Could Do Well Oil Refiners: When crude oil prices fluctuate sharply, the difference between the cost of buying crude oil and the price at which companies sell refined products like petrol, diesel, and jet fuel becomes important. This difference is called the crack spread. For example, if a refiner buys crude oil at ₹5,000 per barrel and sells the refined fuels for ₹6,500, the ₹1,500 difference is their profit margin. When this margin widens due to market conditions, oil refiners make more profit, even if crude prices are high. Defence Companies: During times of global tension or war threats, governments tend to spend more on military preparedness. This results in increased orders for defence companies, boosting their revenue. Investors also consider these companies more stable during uncertain times, making their stocks more attractive. Gold & Bonds: When risk levels go up globally—like during wars or economic crises—investors often pull their money out of stocks and move it into safer assets like gold and bonds. This shift increases demand and prices for gold and bonds, helping existing investors earn better returns. As an Investor, What Should You Watch? Here’s what you need to keep an eye on if you want to understand how rising oil prices could affect the Indian economy and markets: Brent Crude Above $80: When Brent crude oil trades above $80 per barrel, India’s oil import bill rises sharply. This pushes up inflation because fuel and transportation become costlier. As a result, foreign investors (FIIs) may start pulling money out of Indian markets, fearing lower profits. That can lead to a stock market correction. Example: If oil hits $90, petrol prices may rise by ₹4–₹5 per litre, impacting consumer spending and investor sentiment. Rupee vs Dollar (USD/INR) Movement: India buys crude oil using US dollars. So, if the rupee weakens against the dollar, it makes oil even more expensive for India, worsening inflation. Investors should monitor how the rupee is trading compared to the dollar. Example: If ₹82 was worth 1 USD earlier and weakens to 85, the same oil shipment costs more rupees now—this pushes up overall fuel costs. RBI’s Policy Signals: When inflation goes up due to expensive oil, the Reserve Bank of India (RBI) may avoid cutting interest rates—or may even raise them. Why does RBI keep rates high? High interest rates help control inflation. By making loans and EMIs expensive, the RBI reduces demand for borrowing and spending. This helps cool off rising prices across the economy. But the flip side is that businesses borrow less, and consumers spend cautiously. That can slow down economic growth. Example: If inflation stays above 6 per cent, RBI may delay rate cuts for months, meaning your home loan EMIs won’t come down anytime soon.

Many times, we feel that global conflicts are too far away to affect us. But the truth is, events happening thousands of miles away can impact our daily lives—like the price we pay for fuel or groceries. The current tension between Israel and Iran is a clear example of this.&nbsp;

How a $10 oil shock hits your wallet: What Indian investors must track now

UK consumer confidence has hit its highest level this year, thanks largely to an upbeat shift among young people.&nbsp;&nbsp;According to the British Retail Consortium (BRC), economic expectations for the next three months improved to minus 28 in June from minus 36 in May, the strongest reading since December.&nbsp;Gen Z led the rebound, buoyed by April’s minimum wage hike. “This rising optimism may also reflect the increase in minimum wage from April, with many younger people expected to have seen a significant uplift in their pay packet,” said Helen Dickinson, chief executive of the BRC, as quoted by Reuters.&nbsp;It marks a second consecutive monthly improvement after consumer sentiment slumped under Labour’s April tax hikes, rising inflation, and global uncertainty.<h2>Spending power rises, but the economy stumbles</h2>Despite improved sentiment, Britain’s broader economic picture remains fragile. GDP shrank by 0.3 per cent in April, according to official data from the Office for National Statistics (ONS), after a fresh round of business tax hikes and a drop in exports to the United States.&nbsp;Inflation also remains elevated. Consumer price inflation stood at 3.4 per cent in May, the highest in over a year, largely driven by food and essential goods, further tightening household budgets.&nbsp;The economy is teetering between weak growth and persistent inflation, raising stagflation fears. “We forecast inflation to remain above 3 per cent for the remainder of the year amidst persistent wage growth and the inflationary effects from higher government spending,” said Monica George Michail of the National Institute of Economic and Social Research, as quoted by Bloomberg.<h2>Bank of England expected to pause again at 4.25%</h2>Against this backdrop, the Bank of England is widely expected to hold interest rates steady at 4.25 per cent when its Monetary Policy Committee (MPC) announces its decision at 12:00 BST on Thursday.&nbsp;The Bank last cut rates in May, from 4.5 to 4.25 per cent, marking its fourth rate cut in a year. However, analysts believe further reductions are likely to be delayed until late 2025.&nbsp;&nbsp;“We therefore expect the Bank of England to keep rates on hold this Thursday and implement just one further cut this year,” Michail added, as quoted by Bloomberg.&nbsp;While policymakers had hinted at further easing, stubborn inflation, and external risks, such as rising oil prices from the Israel–Iran conflict and US import tariffs are forcing the Bank into a more cautious stance.<h2>Trump tariffs, oil shocks muddy the outlook</h2>Like the US Federal Reserve, the Bank of England is watching President Donald Trump’s trade moves closely.&nbsp;&nbsp;The White House’s fresh tariff agenda has already disrupted UK–US exports and contributed to global inflation uncertainty.&nbsp;Oil prices have also been on the rise amid the six-day-old Israel–Iran conflict. Any prolonged escalation could push fuel and transport costs even higher, complicating inflation control across Europe.&nbsp;“The current tensions in the Middle East are causing greater economic uncertainty,” said Michail, noting that energy shocks typically feed through quickly to consumer prices.<h2>How this affects UK's common man's mortgage or savings</h2>For ordinary Britons, the Bank’s pause means borrowing costs will likely remain elevated. The Bank Rate used as a benchmark for everything from mortgage loans to savings returns has kept debt expensive but also improved interest for savers.&nbsp;According to Moneyfacts, the average two-year fixed mortgage rate is currently 5.12 per cent, while five-year deals average 5.10 per cent. About 600,000 UK homeowners are on tracker mortgages tied directly to the Bank Rate, meaning any cut or hold immediately impacts monthly repayments.&nbsp;More than 80 per cent of mortgage holders are on fixed-rate deals, many of which were set when rates were far lower. These households have faced steep increases in repayments upon renewal, with little relief in sight until the Bank resumes cutting.<h2>Gen Z leads the rebound, but for how long?</h2>While the minimum wage boost has improved sentiment, analysts warn that wage growth may not be enough to offset rising prices. Gen Z, although more optimistic, may feel the pinch later in the year if inflation remains sticky and job growth slows again.&nbsp;Still, the recent confidence rebound could be an early sign of recovery. “There’s cautious hope that households are ready to spend again,” said a senior retail analyst at Capital Economics, as quoted by Bloomberg. “But it all depends on whether prices stabilise and the global picture clears.”<h2>What happens next?</h2>The Bank of England’s next big decision hinges on global risks, inflation data, and government spending trends. Most economists expect at least one more rate cut by December, but policymakers are likely to wait for clarity on tariffs and energy prices.&nbsp;Markets will be watching closely as central banks on both sides of the Atlantic tread carefully.&nbsp;(With inputs from the agencies)&nbsp;

Boosted by April’s minimum wage hike, Gen Z lifts UK consumer sentiment to its strongest level this year, but economic fragility and high borrowing costs persist.

UK consumer confidence has hit its highest level this year, thanks largely to an upbeat shift among young people. According to the British Retail Consortium (BRC), economic expectations for the next three months improved to minus 28 in June from minus 36 in May, the strongest reading since December. Gen Z led the rebound, buoyed by April’s minimum wage hike. “This rising optimism may also reflect the increase in minimum wage from April, with many younger people expected to have seen a significant uplift in their pay packet,” said Helen Dickinson, chief executive of the BRC, as quoted by Reuters. It marks a second consecutive monthly improvement after consumer sentiment slumped under Labour’s April tax hikes, rising inflation, and global uncertainty. Spending power rises, but the economy stumbles Despite improved sentiment, Britain’s broader economic picture remains fragile. GDP shrank by 0.3 per cent in April, according to official data from the Office for National Statistics (ONS), after a fresh round of business tax hikes and a drop in exports to the United States. Inflation also remains elevated. Consumer price inflation stood at 3.4 per cent in May, the highest in over a year, largely driven by food and essential goods, further tightening household budgets. The economy is teetering between weak growth and persistent inflation, raising stagflation fears. “We forecast inflation to remain above 3 per cent for the remainder of the year amidst persistent wage growth and the inflationary effects from higher government spending,” said Monica George Michail of the National Institute of Economic and Social Research, as quoted by Bloomberg. Bank of England expected to pause again at 4.25% Against this backdrop, the Bank of England is widely expected to hold interest rates steady at 4.25 per cent when its Monetary Policy Committee (MPC) announces its decision at 12:00 BST on Thursday. The Bank last cut rates in May, from 4.5 to 4.25 per cent, marking its fourth rate cut in a year. However, analysts believe further reductions are likely to be delayed until late 2025. “We therefore expect the Bank of England to keep rates on hold this Thursday and implement just one further cut this year,” Michail added, as quoted by Bloomberg. While policymakers had hinted at further easing, stubborn inflation, and external risks, such as rising oil prices from the Israel–Iran conflict and US import tariffs are forcing the Bank into a more cautious stance. Trump tariffs, oil shocks muddy the outlook Like the US Federal Reserve, the Bank of England is watching President Donald Trump’s trade moves closely. The White House’s fresh tariff agenda has already disrupted UK–US exports and contributed to global inflation uncertainty. Oil prices have also been on the rise amid the six-day-old Israel–Iran conflict. Any prolonged escalation could push fuel and transport costs even higher, complicating inflation control across Europe. “The current tensions in the Middle East are causing greater economic uncertainty,” said Michail, noting that energy shocks typically feed through quickly to consumer prices. How this affects UK's common man's mortgage or savings For ordinary Britons, the Bank’s pause means borrowing costs will likely remain elevated. The Bank Rate used as a benchmark for everything from mortgage loans to savings returns has kept debt expensive but also improved interest for savers. According to Moneyfacts, the average two-year fixed mortgage rate is currently 5.12 per cent, while five-year deals average 5.10 per cent. About 600,000 UK homeowners are on tracker mortgages tied directly to the Bank Rate, meaning any cut or hold immediately impacts monthly repayments. More than 80 per cent of mortgage holders are on fixed-rate deals, many of which were set when rates were far lower. These households have faced steep increases in repayments upon renewal, with little relief in sight until the Bank resumes cutting. Gen Z leads the rebound, but for how long? While the minimum wage boost has improved sentiment, analysts warn that wage growth may not be enough to offset rising prices. Gen Z, although more optimistic, may feel the pinch later in the year if inflation remains sticky and job growth slows again. Still, the recent confidence rebound could be an early sign of recovery. “There’s cautious hope that households are ready to spend again,” said a senior retail analyst at Capital Economics, as quoted by Bloomberg. “But it all depends on whether prices stabilise and the global picture clears.” What happens next? The Bank of England’s next big decision hinges on global risks, inflation data, and government spending trends. Most economists expect at least one more rate cut by December, but policymakers are likely to wait for clarity on tariffs and energy prices. Markets will be watching closely as central banks on both sides of the Atlantic tread carefully. (With inputs from the agencies)

UK consumer confidence hits a 2025 high, driven by Gen Z optimism, even as inflation, weak growth, and mortgage pain cloud the outlook.

Gen Z lifts UK consumer confidence to 2025 peak, will the BOE follow with a rate cut?

The US Federal Reserve held interest rates steady on Wednesday but signalled that rate cuts could still be on the table later this year. Yet a fresh risk has emerged on the horizon: President Donald Trump’s sweeping new import tariffs.&nbsp;&nbsp;Fed Chair Jerome Powell warned that the new duties could trigger a surge in inflation this summer, complicating the central bank’s plan to begin easing monetary policy.&nbsp;“Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs,” Powell said, as quoted by Reuters. He warned that although inflation readings had been favourable recently, the full cost of tariffs would eventually hit consumers.&nbsp;The Fed’s decision kept its benchmark overnight interest rate in the 4.25–4.50 per cent range, the highest in over two decades.&nbsp;&nbsp;Policymakers still project two rate cuts before the end of 2025, but they have scaled back the pace of future easing amid rising uncertainty over trade policy, economic growth, and price stability.<h2>Powell: “Cost shock is coming”</h2>Despite the inflationary outlook improving over recent months, Powell said the Fed would need more time to understand how tariffs would impact price pressures.&nbsp;“If not for tariffs, rate cuts might actually be in order,” he said, according to Reuters.He explained that producers, manufacturers, importers, and retailers are still locked in a complex struggle over who will absorb the cost of the tariffs. “We’ll make smarter and better decisions if we just wait a couple of months or however long it takes to get a sense of what the pass-through of inflation is going to be,” he added.<h2>Growth slows, inflation sticks, joblessness rises</h2>The Fed’s updated economic projections revealed a stagflationary tilt. Gross domestic product growth is forecast to slow to 1.4 per cent in 2025, down from 1.7 per cent predicted in March.&nbsp;&nbsp;At the same time, unemployment is projected to rise to 4.5 per cent by year-end, up from the 4.4 per cent earlier estimate. The unemployment rate in May was already ticking up at 4.2 per cent.&nbsp;Headline inflation is now expected to end 2025 at 3 per cent—well above the Fed’s 2 per cent target. Core inflation, which excludes food and energy, is projected to stay elevated at 2.4 per cent through 2026 before finally cooling to 2.1 per cent in 2027.&nbsp;This confluence of weaker growth, rising joblessness and sticky inflation underscores the Fed’s challenge: avoiding a policy misstep as tariffs and global shocks collide with domestic economic weakness.<h2>Trump lashes out at Powell</h2>President Trump, facing both economic headwinds and geopolitical turmoil, lashed out at the Fed during a campaign stop on Wednesday.&nbsp;“Powell is stupid,” Trump said, as quoted by Reuters, demanding that the central bank “slash rates in half”—a move typically associated with financial crises or deep recessions. The president even joked about installing himself as Fed chairman.&nbsp;Despite the pressure, Powell held the line. “No one holds these rate paths with a great deal of conviction,” he responded, reiterating that all decisions remain data dependent.<h2>Fed splits as trade fog clouds outlook</h2>The Fed has already delivered three rate cuts in 2024, the last of which came in December. But in 2025, it has hit pause—waiting for clarity on inflation, trade, and labour market resilience.&nbsp;In a notable sign of internal disagreement, seven of the 19 Fed policymakers now believe no further cuts will be needed this year. “It’s a foggy time,” Powell admitted, as per Reuters, highlighting how uncertainty over Trump’s tariff trajectory is keeping policymakers divided.<h2>Markets steady, oil climbs, geopolitics tense</h2>The US equity markets were largely unmoved by the Fed’s decision. The Dow Jones Industrial Average slipped 0.10 per cent, the S&amp;P 500 edged down 0.03 per cent, while the Nasdaq Composite rose 0.13 per cent.&nbsp;Meanwhile, oil prices continued to climb amid the Israel–Iran conflict. Brent crude settled at 76.70 US dollars per barrel, while West Texas Intermediate rose to 75.14 dollars, both rebounding after early-session declines. On Tuesday, prices had jumped more than 4 per cent.&nbsp;Geopolitics remained tense. Iranian Supreme Leader Ayatollah Ali Khamenei publicly rejected Trump’s demand for unconditional surrender. When asked if Iran’s regime might collapse, Trump responded: “Sure, anything could happen.”<h2>Bond markets react to inflation fears</h2>US Treasury markets reacted cautiously. The 10-year Treasury yield closed unchanged at 4.391 per cent. However, the rate-sensitive two-year yield dipped to 3.939 per cent, down 1.1 basis points from the previous session.&nbsp;Earlier this year, yields had surged on 2 April after Trump unveiled higher-than-expected tariffs—spooking foreign investors and raising fears of capital flight from US debt markets. Although delayed implementation calmed the markets, Powell’s inflation warnings this week have reignited those concerns.<h2>Retail sales slump, job market shows cracks</h2>Recent economic data have added to the sense of slowdown. Retail sales dropped by 0.9 per cent in May—the sharpest monthly decline in four months. At the same time, jobless claims remain at levels consistent with a softening labour market.&nbsp;Despite this, Powell maintained that the broader picture remains stable. “Labour market conditions are still solid,” he said, echoing the Fed’s official statement.<h2>What lies ahead?</h2>The next Fed meeting is scheduled for 16–17 September, with traders now seeing that as the earliest possible window for a rate cut. But much depends on the actual implementation of Trump’s tariff package—and whether its impact is absorbed or passed directly onto households.&nbsp;“For the time being, we are well positioned to wait to learn more about the likely course of the economy,” Powell said, as quoted by Reuters.&nbsp;With markets closed on Thursday for the Juneteenth holiday, investors are bracing for a volatile second half of the year.&nbsp;(With inputs from the agencies) &nbsp;

Fed Chair Powell flags inflation risks from Trump sweeping tariffs as growth slows and unemployment rises, complicating the path for US rate cuts in 2025.

The US Federal Reserve held interest rates steady on Wednesday but signalled that rate cuts could still be on the table later this year. Yet a fresh risk has emerged on the horizon: President Donald Trump’s sweeping new import tariffs. Fed Chair Jerome Powell warned that the new duties could trigger a surge in inflation this summer, complicating the central bank’s plan to begin easing monetary policy. “Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs,” Powell said, as quoted by Reuters. He warned that although inflation readings had been favourable recently, the full cost of tariffs would eventually hit consumers. The Fed’s decision kept its benchmark overnight interest rate in the 4.25–4.50 per cent range, the highest in over two decades. Policymakers still project two rate cuts before the end of 2025, but they have scaled back the pace of future easing amid rising uncertainty over trade policy, economic growth, and price stability. Powell: “Cost shock is coming” Despite the inflationary outlook improving over recent months, Powell said the Fed would need more time to understand how tariffs would impact price pressures. “If not for tariffs, rate cuts might actually be in order,” he said, according to Reuters. He explained that producers, manufacturers, importers, and retailers are still locked in a complex struggle over who will absorb the cost of the tariffs. “We’ll make smarter and better decisions if we just wait a couple of months or however long it takes to get a sense of what the pass-through of inflation is going to be,” he added. Growth slows, inflation sticks, joblessness rises The Fed’s updated economic projections revealed a stagflationary tilt. Gross domestic product growth is forecast to slow to 1.4 per cent in 2025, down from 1.7 per cent predicted in March. At the same time, unemployment is projected to rise to 4.5 per cent by year-end, up from the 4.4 per cent earlier estimate. The unemployment rate in May was already ticking up at 4.2 per cent. Headline inflation is now expected to end 2025 at 3 per cent—well above the Fed’s 2 per cent target. Core inflation, which excludes food and energy, is projected to stay elevated at 2.4 per cent through 2026 before finally cooling to 2.1 per cent in 2027. This confluence of weaker growth, rising joblessness and sticky inflation underscores the Fed’s challenge: avoiding a policy misstep as tariffs and global shocks collide with domestic economic weakness. Trump lashes out at Powell President Trump, facing both economic headwinds and geopolitical turmoil, lashed out at the Fed during a campaign stop on Wednesday. “Powell is stupid,” Trump said, as quoted by Reuters, demanding that the central bank “slash rates in half”—a move typically associated with financial crises or deep recessions. The president even joked about installing himself as Fed chairman. Despite the pressure, Powell held the line. “No one holds these rate paths with a great deal of conviction,” he responded, reiterating that all decisions remain data dependent. Fed splits as trade fog clouds outlook The Fed has already delivered three rate cuts in 2024, the last of which came in December. But in 2025, it has hit pause—waiting for clarity on inflation, trade, and labour market resilience. In a notable sign of internal disagreement, seven of the 19 Fed policymakers now believe no further cuts will be needed this year. “It’s a foggy time,” Powell admitted, as per Reuters, highlighting how uncertainty over Trump’s tariff trajectory is keeping policymakers divided. Markets steady, oil climbs, geopolitics tense The US equity markets were largely unmoved by the Fed’s decision. The Dow Jones Industrial Average slipped 0.10 per cent, the S&P 500 edged down 0.03 per cent, while the Nasdaq Composite rose 0.13 per cent. Meanwhile, oil prices continued to climb amid the Israel–Iran conflict. Brent crude settled at 76.70 US dollars per barrel, while West Texas Intermediate rose to 75.14 dollars, both rebounding after early-session declines. On Tuesday, prices had jumped more than 4 per cent. Geopolitics remained tense. Iranian Supreme Leader Ayatollah Ali Khamenei publicly rejected Trump’s demand for unconditional surrender. When asked if Iran’s regime might collapse, Trump responded: “Sure, anything could happen.” Bond markets react to inflation fears US Treasury markets reacted cautiously. The 10-year Treasury yield closed unchanged at 4.391 per cent. However, the rate-sensitive two-year yield dipped to 3.939 per cent, down 1.1 basis points from the previous session. Earlier this year, yields had surged on 2 April after Trump unveiled higher-than-expected tariffs—spooking foreign investors and raising fears of capital flight from US debt markets. Although delayed implementation calmed the markets, Powell’s inflation warnings this week have reignited those concerns. Retail sales slump, job market shows cracks Recent economic data have added to the sense of slowdown. Retail sales dropped by 0.9 per cent in May—the sharpest monthly decline in four months. At the same time, jobless claims remain at levels consistent with a softening labour market. Despite this, Powell maintained that the broader picture remains stable. “Labour market conditions are still solid,” he said, echoing the Fed’s official statement. What lies ahead? The next Fed meeting is scheduled for 16–17 September, with traders now seeing that as the earliest possible window for a rate cut. But much depends on the actual implementation of Trump’s tariff package—and whether its impact is absorbed or passed directly onto households. “For the time being, we are well positioned to wait to learn more about the likely course of the economy,” Powell said, as quoted by Reuters. With markets closed on Thursday for the Juneteenth holiday, investors are bracing for a volatile second half of the year. (With inputs from the agencies)

The Fed holds rates steady but warns Trump’s new tariffs may trigger fresh inflation, casting doubt on future rate cuts and economic stability.

Fed holds rates as Trump tariffs threaten inflation shock: What it means for your money

The US dollar had recently plunged to its lowest level in three years, driven by a combination of US trade policy shifts and expectations of Federal Reserve rate cuts.&nbsp;This sharp depreciation, which has seen the dollar drop nearly 10 per cent against a basket of major currencies, has reverberated across global markets, causing ripple effects on economic growth and inflation worldwide.The dollar’s steep drop this year comes at a time when the Trump administration’s policies, including its unpredictable trade stance and pressure on the Federal Reserve, have unsettled global investors.&nbsp;The trade tariffs imposed under Trump’s leadership have altered trade relations, while his administration’s push for significant tax cuts amid rising deficits has further strained market confidence.&nbsp;The combination of these factors, along with Trump's apparent indifference to a weakening dollar, has raised concerns among financial experts. The dollar has now lost ground against almost every major currency, including the euro, pound, and Swiss franc.<h2>Scandinavia's currencies surge</h2>Among the standout performers this year are the Scandinavian currencies. The Swedish crown has surged 14 per cent, marking its best performance against the US dollar in over five decades.&nbsp;Similarly, Norway’s crown has climbed nearly 12 per cent, its strongest run since 2008. This strength can largely be attributed to the dollar's weakness, with Sweden’s currency rising by just 4 per cent against the euro and Norway’s by 1.8 per cent. Despite expectations that Sweden will cut interest rates due to slowing inflation, its currency remains resilient.<h2>Safe-haven currencies benefit</h2>The euro, Swiss franc, and Japanese yen have all benefited from the dollar’s fall, rising approximately 10 per cent this year. However, this strength has its own set of complications.&nbsp;In Switzerland, the strengthening franc has caused deflationary pressures, as imported goods become cheaper, raising concerns about further interest rate cuts by the Swiss National Bank. The European Central Bank is also wary of the rising euro, as it risks exacerbating deflationary pressures within the Eurozone. Meanwhile, Japan is grappling with the challenges of a stronger yen, which could hurt its export-driven economy.<h2>Shifting capital flows</h2>In Asia, currencies tied closely to manufacturing have strengthened as well, as capital previously parked in US assets begins to flow back into the region. Taiwan’s dollar surged by 10 per cent in May alone and is up nearly 12 per cent this year.&nbsp;South Korea’s won has also gained around 10 per cent, while Singapore’s dollar, Malaysia’s ringgit, and Thailand’s baht have all risen by 6 per cent. However, China's yuan has lagged, gaining only 2 per cent offshore, partly due to Beijing's efforts to manage its currency within tightly controlled parameters.<h2>Mexico’s peso shows resilience</h2>Despite early pressure from US trade policies, Mexico's peso has bounced back strongly, reaching its highest levels since last August. As US-Mexico trade tensions begin to ease, there are expectations that the peso could strengthen further.&nbsp;Meanwhile, Argentina’s peso remains one of the year’s weakest performers, primarily due to domestic economic policies, but a recent $20 billion loan agreement with the IMF has helped stabilise the situation.<h2>Sterling’s rally amid growing concerns</h2>The British pound has seen a solid 9 per cent increase against the dollar, hitting its highest levels in over three years. However, softer economic data has raised expectations of potential rate cuts by the Bank of England, which could dampen the pound’s rally.&nbsp;Despite this, foreign buyers are reportedly rushing to snap up UK assets before further dollar weakness makes future transactions more expensive.<h2>A global shift in financial sentiment</h2>The fall of the dollar is reshaping global financial dynamics. As investors seek alternatives, such as the Swiss franc, euro, and Scandinavian currencies, the traditional role of the dollar as a safe haven asset is being questioned.&nbsp;The knock-on effects are reverberating through global markets, highlighting the vulnerabilities of the US economy in a time of rising fiscal deficits and unstable trade relations. With global investors reassessing their exposure to the US dollar, the future of the world’s most dominant currency is becoming increasingly uncertain.&nbsp;(With inputs from agencies)

Global markets are grappling with the fallout from the US currency’s biggest slump in years.

The US dollar had recently plunged to its lowest level in three years, driven by a combination of US trade policy shifts and expectations of Federal Reserve rate cuts. This sharp depreciation, which has seen the dollar drop nearly 10 per cent against a basket of major currencies, has reverberated across global markets, causing ripple effects on economic growth and inflation worldwide. The dollar’s steep drop this year comes at a time when the Trump administration’s policies, including its unpredictable trade stance and pressure on the Federal Reserve, have unsettled global investors. The trade tariffs imposed under Trump’s leadership have altered trade relations, while his administration’s push for significant tax cuts amid rising deficits has further strained market confidence. The combination of these factors, along with Trump's apparent indifference to a weakening dollar, has raised concerns among financial experts. The dollar has now lost ground against almost every major currency, including the euro, pound, and Swiss franc. Scandinavia's currencies surge Among the standout performers this year are the Scandinavian currencies. The Swedish crown has surged 14 per cent, marking its best performance against the US dollar in over five decades. Similarly, Norway’s crown has climbed nearly 12 per cent, its strongest run since 2008. This strength can largely be attributed to the dollar's weakness, with Sweden’s currency rising by just 4 per cent against the euro and Norway’s by 1.8 per cent. Despite expectations that Sweden will cut interest rates due to slowing inflation, its currency remains resilient. Safe-haven currencies benefit The euro, Swiss franc, and Japanese yen have all benefited from the dollar’s fall, rising approximately 10 per cent this year. However, this strength has its own set of complications. In Switzerland, the strengthening franc has caused deflationary pressures, as imported goods become cheaper, raising concerns about further interest rate cuts by the Swiss National Bank. The European Central Bank is also wary of the rising euro, as it risks exacerbating deflationary pressures within the Eurozone. Meanwhile, Japan is grappling with the challenges of a stronger yen, which could hurt its export-driven economy. Shifting capital flows In Asia, currencies tied closely to manufacturing have strengthened as well, as capital previously parked in US assets begins to flow back into the region. Taiwan’s dollar surged by 10 per cent in May alone and is up nearly 12 per cent this year. South Korea’s won has also gained around 10 per cent, while Singapore’s dollar, Malaysia’s ringgit, and Thailand’s baht have all risen by 6 per cent. However, China's yuan has lagged, gaining only 2 per cent offshore, partly due to Beijing's efforts to manage its currency within tightly controlled parameters. Mexico’s peso shows resilience Despite early pressure from US trade policies, Mexico's peso has bounced back strongly, reaching its highest levels since last August. As US-Mexico trade tensions begin to ease, there are expectations that the peso could strengthen further. Meanwhile, Argentina’s peso remains one of the year’s weakest performers, primarily due to domestic economic policies, but a recent $20 billion loan agreement with the IMF has helped stabilise the situation. Sterling’s rally amid growing concerns The British pound has seen a solid 9 per cent increase against the dollar, hitting its highest levels in over three years. However, softer economic data has raised expectations of potential rate cuts by the Bank of England, which could dampen the pound’s rally. Despite this, foreign buyers are reportedly rushing to snap up UK assets before further dollar weakness makes future transactions more expensive. A global shift in financial sentiment The fall of the dollar is reshaping global financial dynamics. As investors seek alternatives, such as the Swiss franc, euro, and Scandinavian currencies, the traditional role of the dollar as a safe haven asset is being questioned. The knock-on effects are reverberating through global markets, highlighting the vulnerabilities of the US economy in a time of rising fiscal deficits and unstable trade relations. With global investors reassessing their exposure to the US dollar, the future of the world’s most dominant currency is becoming increasingly uncertain. (With inputs from agencies)

Global markets are grappling with the fallout from the US currency’s biggest slump in years.

As Trump fiddles with trade, dollar’s dramatic decline sparks global repercussions

Elon Musk’s artificial intelligence startup, xAI, is racing against time to secure $9.3 billion in new debt and equity funding, but it’s not just about the money; it’s about the staggering pace at which the company is burning through it.&nbsp;Even before the funds hit the bank, xAI’s plans to spend over half of the new capital in just the next three months underscore the dire financial realities of the AI industry.xAI, which is responsible for the development of the AI-powered chatbot Grok, projects it will burn through about $13 billion in 2025, or over $1 billion per month, just to maintain its operations.&nbsp;This excessive cash burn is emblematic of the immense financial demands that all AI companies are facing as they build the necessary infrastructure—from massive server farms to expensive specialised chips—to train next-generation AI models.Musk’s startup, which only launched in 2023, is struggling to generate revenue at the same rate as some of its larger competitors. While ChatGPT creator OpenAI is on track to generate $12.7 billion in revenue this year, xAI’s revenues are expected to be just $500 million, with hopes of crossing the $2 billion mark in 2026. With such a cash burn rate and low revenue streams, xAI’s ability to secure financing remains crucial to its survival.The AI industry’s financial burden is not unique to xAI. The costs associated with developing advanced AI models, from the infrastructure and compute power to the data storage and model training, are placing extreme financial pressure on all players in the space.&nbsp;Venture capital (VC) firms are investing billions of dollars into AI, but there’s growing concern about the ability of these companies to reach profitability. As the industry grows, investors are increasingly asking questions about AI companies’ ability to survive the cash burn and find paths to sustainable profits.<h2>The struggle for profitability</h2>xAI is not an isolated case. Across the industry, many AI startups are burning through cash at an accelerated rate. According to a recent report by Silicon Valley Bank (SVB), AI startups now burn through capital twice as fast as their counterparts from previous years.&nbsp;While this rapid scaling may promise massive returns in the future, it also increases the risk of financial instability, especially when revenue growth does not keep up with the mounting operational costs.AI startups, particularly those involved in generative AI (GenAI), face a unique set of financial challenges. Unlike traditional software companies, where development costs are incurred once and can scale infinitely, AI companies must contend with ongoing operational costs for computing power, data storage, and continuous model updates.&nbsp;This creates a structural margin crisis where each increase in workload consumes more money than it generates in revenue. Essentially, AI companies need to make massive investments in infrastructure while finding ways to monetise their technology without hitting margins that are too thin.<h2>The “ZombieCorn” phenomenon</h2>This rapid cash burn without profitability has given rise to the term ZombieCorn, describing startups with unicorn valuations but little to no revenue growth or clear exit strategies.&nbsp;These companies are often trapped in an endless cycle of fundraising just to stay afloat, without any viable path to sustainable growth. As more and more AI startups join the ranks of these ZombieCorn companies, the spectre of a “dot-com bubble 2.0” looms large over the industry.The situation is particularly grim for companies with high valuations but no profits. While there are still mega-rounds of funding for certain AI companies, the vast majority of AI startups are struggling to find capital.&nbsp;As SVB's report highlights, AI-focused funds now account for a disproportionate share of venture capital, attracting about 40 per cent of the capital raised in 2024, despite constituting only 15 per cent of all VC funds.&nbsp;This market concentration means that smaller companies are being squeezed out, while those with high valuations, like xAI, must contend with the pressures of rapid cash burn and intense competition for limited funding.<h2>AI’s margin stack crisis</h2>The financial troubles of startups like xAI are part of a broader trend in the AI industry, often referred to as the AI margin stacking problem. This issue refers to the compounding costs at each layer of the AI technology stack, which erode profit margins despite high demand for AI solutions.&nbsp;From the data centres that host AI models to the algorithms that process information and the interfaces that deliver results, each component of the AI stack comes with its own set of expenses that gradually eat into profitability.Take OpenAI as a case study. Despite projected revenues of $12.7 billion by 2025, the company is still facing enormous losses, with internal projections suggesting it will lose more than $20 billion by 2027.&nbsp;The cost of training and running AI models like ChatGPT continues to increase, forcing firms to find new ways to optimise their operations and reduce infrastructure expenses. While OpenAI’s model is expected to become more profitable in the long term, particularly as emerging AI products begin to drive sales, the near-term financial pressures are hard to ignore.The AI industry's margin crisis has far-reaching implications for investors. As AI startups continue to burn capital at unprecedented rates, venture capital firms are becoming more selective about where they place their money.&nbsp;Investors now care as much about margin trajectory as they do about total addressable market (TAM) and growth rates. With valuations of AI companies being compressed due to these margin concerns, founders must increasingly focus on long-term sustainability, cost optimisation, and careful management of their financials.<h2>Can AI become profitable?</h2>Despite these significant financial challenges, the AI industry’s potential remains undeniable. AI is transforming industries, from healthcare and finance to marketing and entertainment, with the promise of increasing productivity and creating new value.&nbsp;However, for many startups, the road to profitability is still long and uncertain. The question is not whether the AI market will grow but who will be able to survive long enough to benefit from it.For now, the financial pressure on AI startups remains intense, with only the most disciplined and well-managed companies likely to survive the turbulent years ahead.

Even before the funds hit the bank, xAI’s plans to spend over half of the new capital in just the next three months underscore the dire financial realities of the AI industry.

Elon Musk’s artificial intelligence startup, xAI, is racing against time to secure $9.3 billion in new debt and equity funding, but it’s not just about the money; it’s about the staggering pace at which the company is burning through it. Even before the funds hit the bank, xAI’s plans to spend over half of the new capital in just the next three months underscore the dire financial realities of the AI industry. xAI, which is responsible for the development of the AI-powered chatbot Grok, projects it will burn through about $13 billion in 2025, or over $1 billion per month, just to maintain its operations. This excessive cash burn is emblematic of the immense financial demands that all AI companies are facing as they build the necessary infrastructure—from massive server farms to expensive specialised chips—to train next-generation AI models. Musk’s startup, which only launched in 2023, is struggling to generate revenue at the same rate as some of its larger competitors. While ChatGPT creator OpenAI is on track to generate $12.7 billion in revenue this year, xAI’s revenues are expected to be just $500 million, with hopes of crossing the $2 billion mark in 2026. With such a cash burn rate and low revenue streams, xAI’s ability to secure financing remains crucial to its survival. The AI industry’s financial burden is not unique to xAI. The costs associated with developing advanced AI models, from the infrastructure and compute power to the data storage and model training, are placing extreme financial pressure on all players in the space. Venture capital (VC) firms are investing billions of dollars into AI, but there’s growing concern about the ability of these companies to reach profitability. As the industry grows, investors are increasingly asking questions about AI companies’ ability to survive the cash burn and find paths to sustainable profits. The struggle for profitability xAI is not an isolated case. Across the industry, many AI startups are burning through cash at an accelerated rate. According to a recent report by Silicon Valley Bank (SVB), AI startups now burn through capital twice as fast as their counterparts from previous years. While this rapid scaling may promise massive returns in the future, it also increases the risk of financial instability, especially when revenue growth does not keep up with the mounting operational costs. AI startups, particularly those involved in generative AI (GenAI), face a unique set of financial challenges. Unlike traditional software companies, where development costs are incurred once and can scale infinitely, AI companies must contend with ongoing operational costs for computing power, data storage, and continuous model updates. This creates a structural margin crisis where each increase in workload consumes more money than it generates in revenue. Essentially, AI companies need to make massive investments in infrastructure while finding ways to monetise their technology without hitting margins that are too thin. The “ZombieCorn” phenomenon This rapid cash burn without profitability has given rise to the term ZombieCorn, describing startups with unicorn valuations but little to no revenue growth or clear exit strategies. These companies are often trapped in an endless cycle of fundraising just to stay afloat, without any viable path to sustainable growth. As more and more AI startups join the ranks of these ZombieCorn companies, the spectre of a “dot-com bubble 2.0” looms large over the industry. The situation is particularly grim for companies with high valuations but no profits. While there are still mega-rounds of funding for certain AI companies, the vast majority of AI startups are struggling to find capital. As SVB's report highlights, AI-focused funds now account for a disproportionate share of venture capital, attracting about 40 per cent of the capital raised in 2024, despite constituting only 15 per cent of all VC funds. This market concentration means that smaller companies are being squeezed out, while those with high valuations, like xAI, must contend with the pressures of rapid cash burn and intense competition for limited funding. AI’s margin stack crisis The financial troubles of startups like xAI are part of a broader trend in the AI industry, often referred to as the AI margin stacking problem. This issue refers to the compounding costs at each layer of the AI technology stack, which erode profit margins despite high demand for AI solutions. From the data centres that host AI models to the algorithms that process information and the interfaces that deliver results, each component of the AI stack comes with its own set of expenses that gradually eat into profitability. Take OpenAI as a case study. Despite projected revenues of $12.7 billion by 2025, the company is still facing enormous losses, with internal projections suggesting it will lose more than $20 billion by 2027. The cost of training and running AI models like ChatGPT continues to increase, forcing firms to find new ways to optimise their operations and reduce infrastructure expenses. While OpenAI’s model is expected to become more profitable in the long term, particularly as emerging AI products begin to drive sales, the near-term financial pressures are hard to ignore. The AI industry's margin crisis has far-reaching implications for investors. As AI startups continue to burn capital at unprecedented rates, venture capital firms are becoming more selective about where they place their money. Investors now care as much about margin trajectory as they do about total addressable market (TAM) and growth rates. With valuations of AI companies being compressed due to these margin concerns, founders must increasingly focus on long-term sustainability, cost optimisation, and careful management of their financials. Can AI become profitable? Despite these significant financial challenges, the AI industry’s potential remains undeniable. AI is transforming industries, from healthcare and finance to marketing and entertainment, with the promise of increasing productivity and creating new value. However, for many startups, the road to profitability is still long and uncertain. The question is not whether the AI market will grow but who will be able to survive long enough to benefit from it. For now, the financial pressure on AI startups remains intense, with only the most disciplined and well-managed companies likely to survive the turbulent years ahead.

Even before the funds hit the bank, xAI’s plans to spend over half of the new capital in just the next three months underscore the dire financial realities of the AI industry.

xAI's $1 billion cash burn a month highlights the growing AI startup cash burn crisis

Taiwan has taken its most aggressive step yet in the ongoing tech war between China and the United States.&nbsp;&nbsp;For the first time, the island has added Huawei Technologies and leading Chinese chipmaker SMIC (Semiconductor Manufacturing International Corporation) to its export control list, a move that could reshape cross-strait tech ties and tighten the noose on Beijing’s semiconductor ambitions.&nbsp;The decision bars Taiwanese firms from doing business with the two Chinese giants without a government license. It’s a dramatic shift for a tech powerhouse that, until now, avoided taking sides too visibly.&nbsp;“This marks a substantive move toward strategic technological competition with China,” said Chiang Min-yen, a researcher at Taiwan’s state-backed RIDEET think tank, as quoted by Bloomberg.<h2>Why this matters</h2>Taiwan’s action comes after years of quiet US pressure. Both the Trump and Biden administrations had urged Taipei to enforce stricter export curbs, especially as Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s most advanced chipmaker, remains deeply embedded in global supply chains.&nbsp;According to Bloomberg News, US officials have pushed Taiwan to prevent companies from supplying even trace amounts of American-linked technology to Chinese entities under sanctions.&nbsp;In 2023, TSMC was found to have unknowingly manufactured millions of AI chips for Huawei, routed through a third party later blacklisted by Washington. While TSMC has since cut ties, Taiwan had largely avoided direct blacklisting until now.<h2>Taking a page from Washington</h2>Taiwan’s Ministry of Economic Affairs cited national security concerns for the new blacklisting, echoing similar language used by the US Department of Commerce.&nbsp;“We welcome Taiwan’s move,” said a US congressional panel on China policy, quoted by Reuters. “Partners must act to stop the CCP’s illegal tech transfer network.”&nbsp;Taiwan’s Entity List now includes 601 companies, including dozens tied to China’s military-industrial complex and surveillance tech firms. But Huawei and SMIC are the most prominent by far.&nbsp;“This is not about short-term sales; it’s a long-term alignment,” said a senior trade official in Taipei, speaking anonymously to Bloomberg.<h2>What happens now?</h2>On paper, the blacklist may not immediately block all business. Many Taiwanese companies operate subsidiaries in mainland China, which may technically fall outside the island’s jurisdiction.&nbsp;“The move is symbolic but not disruptive— yet,” said Steven Tseng, chip analyst at Bloomberg Intelligence. “Huawei and SMIC have already localised much of their sourcing.”&nbsp;But it sends a clear political signal. New President Lai Ching-te has pledged to reduce Taiwan’s reliance on the mainland and strengthen ties with democracies like the US and Japan.&nbsp;According to Bloomberg, Lai’s administration is now expected to tighten scrutiny on component sales, construction contracts, and even IP transfers to Chinese tech parks.<h2>Cross-strait tensions on edge</h2>The timing is no coincidence. Beijing has sharply criticised Lai, accusing him of promoting “independence in disguise” and branding his administration a “troublemaker” after he referred to China as a “foreign hostile force”.&nbsp;“Lai will now be able to speed up his agenda-setting against China on several fronts, including defence, trade, and tech,” said Soong Hseik-wen, policy researcher at National Chung Cheng University, speaking to Bloomberg.&nbsp;Taiwan’s investment in China has already plunged from $14.6 billion in 2010 to just $3.6 billion in 2024, according to official statistics. The blacklist may be the next phase of that economic decoupling.<h2>The bigger picture</h2>Taiwan’s move comes as a growing number of US allies, from Japan to the Netherlands, restrict semiconductor exports to China. Yet neither Tokyo nor Seoul has directly blacklisted Huawei or SMIC. That makes Taipei’s decision even more significant.&nbsp;For China, the implications are deep. While Huawei and SMIC have spent years building a domestic supply chain, losing access to Taiwan’s precision tools, silicon wafers, and expertise could further delay their AI and chip ambitions.&nbsp;Taiwan has made its choice. As the global semiconductor war enters a new phase, the island is tightening its grip on critical tech and turning away from decades of cross-Strait economic interdependence.&nbsp;Whether symbolic or strategic, the blacklist sends a message Beijing can’t ignore: Taiwan is not just in front of geopolitics; it’s now in the frontline of the tech war.&nbsp;(With inputs from the agencies) &nbsp;

This marks a significant shift in Taiwan approach, encouraged by US pressure for stricter export controls to protect its advanced semiconductor industry. 

Taiwan has taken its most aggressive step yet in the ongoing tech war between China and the United States. For the first time, the island has added Huawei Technologies and leading Chinese chipmaker SMIC (Semiconductor Manufacturing International Corporation) to its export control list, a move that could reshape cross-strait tech ties and tighten the noose on Beijing’s semiconductor ambitions. The decision bars Taiwanese firms from doing business with the two Chinese giants without a government license. It’s a dramatic shift for a tech powerhouse that, until now, avoided taking sides too visibly. “This marks a substantive move toward strategic technological competition with China,” said Chiang Min-yen, a researcher at Taiwan’s state-backed RIDEET think tank, as quoted by Bloomberg. Why this matters Taiwan’s action comes after years of quiet US pressure. Both the Trump and Biden administrations had urged Taipei to enforce stricter export curbs, especially as Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s most advanced chipmaker, remains deeply embedded in global supply chains. According to Bloomberg News, US officials have pushed Taiwan to prevent companies from supplying even trace amounts of American-linked technology to Chinese entities under sanctions. In 2023, TSMC was found to have unknowingly manufactured millions of AI chips for Huawei, routed through a third party later blacklisted by Washington. While TSMC has since cut ties, Taiwan had largely avoided direct blacklisting until now. Taking a page from Washington Taiwan’s Ministry of Economic Affairs cited national security concerns for the new blacklisting, echoing similar language used by the US Department of Commerce. “We welcome Taiwan’s move,” said a US congressional panel on China policy, quoted by Reuters. “Partners must act to stop the CCP’s illegal tech transfer network.” Taiwan’s Entity List now includes 601 companies, including dozens tied to China’s military-industrial complex and surveillance tech firms. But Huawei and SMIC are the most prominent by far. “This is not about short-term sales; it’s a long-term alignment,” said a senior trade official in Taipei, speaking anonymously to Bloomberg. What happens now? On paper, the blacklist may not immediately block all business. Many Taiwanese companies operate subsidiaries in mainland China, which may technically fall outside the island’s jurisdiction. “The move is symbolic but not disruptive— yet,” said Steven Tseng, chip analyst at Bloomberg Intelligence. “Huawei and SMIC have already localised much of their sourcing.” But it sends a clear political signal. New President Lai Ching-te has pledged to reduce Taiwan’s reliance on the mainland and strengthen ties with democracies like the US and Japan. According to Bloomberg, Lai’s administration is now expected to tighten scrutiny on component sales, construction contracts, and even IP transfers to Chinese tech parks. Cross-strait tensions on edge The timing is no coincidence. Beijing has sharply criticised Lai, accusing him of promoting “independence in disguise” and branding his administration a “troublemaker” after he referred to China as a “foreign hostile force”. “Lai will now be able to speed up his agenda-setting against China on several fronts, including defence, trade, and tech,” said Soong Hseik-wen, policy researcher at National Chung Cheng University, speaking to Bloomberg. Taiwan’s investment in China has already plunged from $14.6 billion in 2010 to just $3.6 billion in 2024, according to official statistics. The blacklist may be the next phase of that economic decoupling. The bigger picture Taiwan’s move comes as a growing number of US allies, from Japan to the Netherlands, restrict semiconductor exports to China. Yet neither Tokyo nor Seoul has directly blacklisted Huawei or SMIC. That makes Taipei’s decision even more significant. For China, the implications are deep. While Huawei and SMIC have spent years building a domestic supply chain, losing access to Taiwan’s precision tools, silicon wafers, and expertise could further delay their AI and chip ambitions. Taiwan has made its choice. As the global semiconductor war enters a new phase, the island is tightening its grip on critical tech and turning away from decades of cross-Strait economic interdependence. Whether symbolic or strategic, the blacklist sends a message Beijing can’t ignore: Taiwan is not just in front of geopolitics; it’s now in the frontline of the tech war. (With inputs from the agencies)

Taiwan has escalated its tech stance against China and the US by blacklisting Huawei Technologies and SMIC, requiring government licenses for Taiwanese firms doing business with them.

US–China chip tensions rise as Taiwan blacklists Huawei: Details here

Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has escalated its recruitment efforts in a high-stakes attempt to build its own artificial intelligence (AI) empire.&nbsp;According to Sam Altman, CEO of OpenAI, Meta has made offers to some of his best engineers, including signing bonuses of up to $100 million and annual compensation packages worth even more.&nbsp;Despite these lavish incentives, Altman confirmed on a recent episode of the Uncapped podcast that OpenAI’s top talent has remained steadfast and declined to accept Meta's overtures.“Meta started making giant offers to a lot of people on our team,” Altman said. “You know, like $100 million signing bonuses, more than that (in) compensation per year. At least, so far, none of our best people have decided to take them up on that.”The massive offers from Meta come as part of a broader, aggressive strategy to accelerate its AI efforts. Meta, which has struggled to keep pace with competitors like OpenAI, Google, and Amazon in the AI race, has recently doubled down on its commitment to AI by investing billions in both talent and cutting-edge technology.&nbsp;These efforts include the launch of its new “superintelligence” division, aimed at creating AI systems that exceed human cognitive capabilities.Altman’s remarks underscore the growing competition for top-tier AI talent. The pursuit of elite engineers has reached a fever pitch in Silicon Valley, with companies like Meta, OpenAI, and Google making offers that rival those of professional athletes in other industries.&nbsp;Researchers who specialise in AI are now some of the most sought-after individuals in the tech world, with offers running into the tens of millions of dollars.<h2>Meta’s aggressive AI push</h2>Meta’s ambitions in AI have grown bolder in recent months. The company recently announced a monumental $14.3 billion investment in Scale AI, a leader in AI data processing and labelling.&nbsp;The deal gives Meta a 49 per cent stake in Scale AI and brings its CEO, Alexandr Wang, on board to lead Meta's newly formed superintelligence lab.&nbsp;In addition to the investment in Scale, Meta has reportedly offered generous compensation packages to top AI researchers from OpenAI and Google, hoping to assemble a team capable of competing with the industry’s elite.Despite these investments, Meta has faced challenges in its pursuit of AI dominance. The company has delayed the release of its next major AI model due to concerns about its capabilities, with sources claiming that internal struggles over product development and leadership have hindered progress.&nbsp;Moreover, while Meta has released several open-source AI models, including the Llama series, it has faced criticism for allegedly overstating the performance of these models compared to the models developed by competitors like OpenAI’s GPT-4 and Google’s Gemini.One of the most ambitious aspects of Meta's AI strategy is the formation of a “superintelligence” unit, which aims to create an AI system that surpasses human intelligence. This project is being led by Alexandr Wang, who left Scale AI for Meta in a move that highlights the growing value placed on AI expertise.&nbsp;Meta’s superintelligence lab is expected to drive innovations in technologies such as self-driving cars and robotic systems, giving the company a competitive edge in both the AI and hardware sectors.<h2>The AI talent war intensifies</h2>Meta’s high-profile recruitment efforts are part of a broader trend in the tech industry, where AI talent has become the hottest commodity. Since OpenAI’s release of ChatGPT in 2022, the AI arms race has escalated to a level never seen before, with companies vying to secure the brightest minds in machine learning and natural language processing.The importance of individual contributors (ICs) in the AI field cannot be overstated. Researchers with specialised expertise are seen as pivotal to the success of AI models, with the best talent having the potential to make or break the trajectory of a company’s AI ambitions. This has led to a scramble for top engineers, with some researchers receiving offers worth tens of millions of dollars in salary and bonuses.For instance, Google’s DeepMind has reportedly offered AI researchers compensation packages in the ballpark of $20 million per year, along with expedited equity grants.&nbsp;Similarly, OpenAI has been forced to offer significant retention bonuses to prevent its talent from jumping ship. Meta’s lavish recruitment offers are part of this ongoing battle for AI supremacy, with Mark Zuckerberg overseeing efforts to recruit leading researchers from rival companies.This battle for AI talent has also drawn in other major players like Amazon and Microsoft, who are investing billions in AI startups and expanding their own research divisions.&nbsp;Microsoft, for instance, has poured more than $13 billion into OpenAI, while Amazon has invested heavily in the AI startup Anthropic. With the stakes so high, no company in Silicon Valley can afford to be left behind in the race to dominate the AI landscape.<h2>Race to stay competitive</h2>Despite its aggressive hiring tactics and massive investments, Meta’s position in the AI race is still far from secure. The company has been criticised for its perceived slow progress in AI development, especially in comparison to OpenAI and Google.&nbsp;Meta’s efforts to build a competitive AI lab have been hampered by employee churn, internal management struggles, and a series of product releases that have failed to meet expectations.One of the major challenges Meta faces is its reliance on an open-source strategy. While the company has released models like Llama to the public, which has allowed third-party developers to build on top of them, some have criticised Meta for inflating the capabilities of its models to make them appear more competitive with industry leaders.&nbsp;Furthermore, Meta's internal divisions have led to infighting and delays in product development, leaving the company vulnerable to the rapid advancements made by its rivals.The war for AI supremacy is not just about technology; it’s about securing the best minds to create the next generation of intelligent systems. With companies like Meta and OpenAI vying for the brightest engineers, the future of AI will likely be shaped by the talent that is recruited today.&nbsp;As Meta continues its push to assemble a superintelligence team, the question remains: will it be able to close the gap and compete with the likes of OpenAI and Google? Only time will tell.

The massive offers from Meta come as part of a broader, aggressive strategy to accelerate its AI efforts. Meta, which has struggled to keep pace with competitors like OpenAI, Google, and Amazon in the AI race. 

Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has escalated its recruitment efforts in a high-stakes attempt to build its own artificial intelligence (AI) empire. According to Sam Altman, CEO of OpenAI, Meta has made offers to some of his best engineers, including signing bonuses of up to $100 million and annual compensation packages worth even more. Despite these lavish incentives, Altman confirmed on a recent episode of the Uncapped podcast that OpenAI’s top talent has remained steadfast and declined to accept Meta's overtures. “Meta started making giant offers to a lot of people on our team,” Altman said. “You know, like $100 million signing bonuses, more than that (in) compensation per year. At least, so far, none of our best people have decided to take them up on that.” The massive offers from Meta come as part of a broader, aggressive strategy to accelerate its AI efforts. Meta, which has struggled to keep pace with competitors like OpenAI, Google, and Amazon in the AI race, has recently doubled down on its commitment to AI by investing billions in both talent and cutting-edge technology. These efforts include the launch of its new “superintelligence” division, aimed at creating AI systems that exceed human cognitive capabilities. Altman’s remarks underscore the growing competition for top-tier AI talent. The pursuit of elite engineers has reached a fever pitch in Silicon Valley, with companies like Meta, OpenAI, and Google making offers that rival those of professional athletes in other industries. Researchers who specialise in AI are now some of the most sought-after individuals in the tech world, with offers running into the tens of millions of dollars. Meta’s aggressive AI push Meta’s ambitions in AI have grown bolder in recent months. The company recently announced a monumental $14.3 billion investment in Scale AI, a leader in AI data processing and labelling. The deal gives Meta a 49 per cent stake in Scale AI and brings its CEO, Alexandr Wang, on board to lead Meta's newly formed superintelligence lab. In addition to the investment in Scale, Meta has reportedly offered generous compensation packages to top AI researchers from OpenAI and Google, hoping to assemble a team capable of competing with the industry’s elite. Despite these investments, Meta has faced challenges in its pursuit of AI dominance. The company has delayed the release of its next major AI model due to concerns about its capabilities, with sources claiming that internal struggles over product development and leadership have hindered progress. Moreover, while Meta has released several open-source AI models, including the Llama series, it has faced criticism for allegedly overstating the performance of these models compared to the models developed by competitors like OpenAI’s GPT-4 and Google’s Gemini. One of the most ambitious aspects of Meta's AI strategy is the formation of a “superintelligence” unit, which aims to create an AI system that surpasses human intelligence. This project is being led by Alexandr Wang, who left Scale AI for Meta in a move that highlights the growing value placed on AI expertise. Meta’s superintelligence lab is expected to drive innovations in technologies such as self-driving cars and robotic systems, giving the company a competitive edge in both the AI and hardware sectors. The AI talent war intensifies Meta’s high-profile recruitment efforts are part of a broader trend in the tech industry, where AI talent has become the hottest commodity. Since OpenAI’s release of ChatGPT in 2022, the AI arms race has escalated to a level never seen before, with companies vying to secure the brightest minds in machine learning and natural language processing. The importance of individual contributors (ICs) in the AI field cannot be overstated. Researchers with specialised expertise are seen as pivotal to the success of AI models, with the best talent having the potential to make or break the trajectory of a company’s AI ambitions. This has led to a scramble for top engineers, with some researchers receiving offers worth tens of millions of dollars in salary and bonuses. For instance, Google’s DeepMind has reportedly offered AI researchers compensation packages in the ballpark of $20 million per year, along with expedited equity grants. Similarly, OpenAI has been forced to offer significant retention bonuses to prevent its talent from jumping ship. Meta’s lavish recruitment offers are part of this ongoing battle for AI supremacy, with Mark Zuckerberg overseeing efforts to recruit leading researchers from rival companies. This battle for AI talent has also drawn in other major players like Amazon and Microsoft, who are investing billions in AI startups and expanding their own research divisions. Microsoft, for instance, has poured more than $13 billion into OpenAI, while Amazon has invested heavily in the AI startup Anthropic. With the stakes so high, no company in Silicon Valley can afford to be left behind in the race to dominate the AI landscape. Race to stay competitive Despite its aggressive hiring tactics and massive investments, Meta’s position in the AI race is still far from secure. The company has been criticised for its perceived slow progress in AI development, especially in comparison to OpenAI and Google. Meta’s efforts to build a competitive AI lab have been hampered by employee churn, internal management struggles, and a series of product releases that have failed to meet expectations. One of the major challenges Meta faces is its reliance on an open-source strategy. While the company has released models like Llama to the public, which has allowed third-party developers to build on top of them, some have criticised Meta for inflating the capabilities of its models to make them appear more competitive with industry leaders. Furthermore, Meta's internal divisions have led to infighting and delays in product development, leaving the company vulnerable to the rapid advancements made by its rivals. The war for AI supremacy is not just about technology; it’s about securing the best minds to create the next generation of intelligent systems. With companies like Meta and OpenAI vying for the brightest engineers, the future of AI will likely be shaped by the talent that is recruited today. As Meta continues its push to assemble a superintelligence team, the question remains: will it be able to close the gap and compete with the likes of OpenAI and Google? Only time will tell.

The massive offers from Meta come as part of a broader, aggressive strategy to accelerate its AI efforts. Meta, which has struggled to keep pace with competitors like OpenAI, Google, and Amazon in the AI race.&nbsp;

AI talent poaching intensifies: Meta offers $100 million bonuses to OpenAI employees as it struggles to keep pace in the AI race

A little-known herbal medicine firm is now making big waves on Wall Street. Regencell Bioscience, a Hong Kong-based biotech company, has shocked global markets with a staggering stock surge of over 46,000 per cent this year, despite having no profits, no chief medical officer, and limited commercial operations.&nbsp;As a result, its founder and CEO, Yat-Gai Au, has seen his net worth balloon to over $25 billion, placing him among the world’s 100 richest people, as per Bloomberg.<h2>The meteoric rise of Regencell</h2>Regencell Bioscience was virtually unknown until recently. Traded as a micro-cap on the Nasdaq, the company develops traditional Chinese medicine (TCM) formulas targeting conditions like ADHD and autism spectrum disorder.&nbsp;But the real twist? It has never turned a profit.&nbsp;The company posted a $4.4 million loss in the fiscal year ending June 2024 and currently has no official chief medical officer, as per public filings accessed by Bloomberg.&nbsp;Yet, from being valued at just a few million dollars earlier this year, Regencell’s stock has exploded—boosted further by a 38-for-1 forward stock split in June, a move often used to attract retail investors. At one point, its shares soared more than 24 per cent in a single day, with barely 6 per cent of its stock available for public trading.<h2>Who is Yat-Gai Au?</h2>Yat-Gai Au, the man behind Regencell, owns an 86 per cent stake in the firm, now worth over $25 billion on paper.&nbsp;Born with ADHD and dyslexia, Au studied at UC Berkeley’s Haas School of Business and worked at Deutsche Bank in the 1990s before founding Regencell in 2014. According to the company’s website, he has personally invested more than $9 million into the venture, calling it a “passion project” aimed at helping children with neurodevelopmental disorders.&nbsp;The formulas themselves? They’re based on treatments developed by his father, Sik-Kee Au, an electrical engineer turned alternative healer. However, Sik-Kee was once found guilty of professional misconduct by a Hong Kong board for overprescribing medicine in 2021, as per Bloomberg.&nbsp;Regencell’s rally is raising eyebrows among analysts and regulators. With limited float and no concrete commercial success, many compare the surge to earlier meme stock frenzies like GameStop or AMTD Digital.&nbsp;Even more concerning: the firm has disclosed no major scientific breakthroughs or partnerships to justify such a valuation. It simply caught fire in a volatile trading environment—and with such a tightly controlled shareholding structure, even small trades can push prices higher.&nbsp;As of Monday, another investor—Zoom’s early backer Samuel Chen—held a stake worth over $2.2 billion, according to Bloomberg.<h2>From herbs to high stakes</h2>Regencell’s stock story isn’t just about one billionaire. It reflects a wider trend of speculative bubbles in biotech and TCM startups. In 2021, the company signed a deal to distribute Chinese herbal remedies for COVID-19 across Asia—but little has been heard since.&nbsp;The firm’s Brain Theory products, according to its disclosures, are liquid-based herbal formulations administered twice a day. There’s no mention of FDA approval or clinical trial data in the public domain.Still, the stock keeps&nbsp;soaring.<h2>Is it sustainable?</h2>Experts remain sceptical. Regencell has just a dozen employees. Its business model relies heavily on personal branding, self-funding, and a niche medical market with little regulation.&nbsp;Bloomberg analysts warn that “paper wealth” can evaporate as quickly as it appears. With no profits and no product sales, the company’s valuation could collapse just as dramatically as it rose—particularly if scrutiny increases.&nbsp;But for now, Yat-Gai Au stands alongside the world’s wealthiest, thanks to a TCM company that few outside Hong Kong had heard of until this year.&nbsp;(With inputs from the agencies) &nbsp; &nbsp;

Despite posting a $4.4 million loss and lacking a chief medical officer or significant commercial success, CEO Yat-Gai Au's wealth has surpassed $25 billion, placing him among the world richest.

A little-known herbal medicine firm is now making big waves on Wall Street. Regencell Bioscience, a Hong Kong-based biotech company, has shocked global markets with a staggering stock surge of over 46,000 per cent this year, despite having no profits, no chief medical officer, and limited commercial operations. As a result, its founder and CEO, Yat-Gai Au, has seen his net worth balloon to over $25 billion, placing him among the world’s 100 richest people, as per Bloomberg. The meteoric rise of Regencell Regencell Bioscience was virtually unknown until recently. Traded as a micro-cap on the Nasdaq, the company develops traditional Chinese medicine (TCM) formulas targeting conditions like ADHD and autism spectrum disorder. But the real twist? It has never turned a profit. The company posted a $4.4 million loss in the fiscal year ending June 2024 and currently has no official chief medical officer, as per public filings accessed by Bloomberg. Yet, from being valued at just a few million dollars earlier this year, Regencell’s stock has exploded—boosted further by a 38-for-1 forward stock split in June, a move often used to attract retail investors. At one point, its shares soared more than 24 per cent in a single day, with barely 6 per cent of its stock available for public trading. Who is Yat-Gai Au? Yat-Gai Au, the man behind Regencell, owns an 86 per cent stake in the firm, now worth over $25 billion on paper. Born with ADHD and dyslexia, Au studied at UC Berkeley’s Haas School of Business and worked at Deutsche Bank in the 1990s before founding Regencell in 2014. According to the company’s website, he has personally invested more than $9 million into the venture, calling it a “passion project” aimed at helping children with neurodevelopmental disorders. The formulas themselves? They’re based on treatments developed by his father, Sik-Kee Au, an electrical engineer turned alternative healer. However, Sik-Kee was once found guilty of professional misconduct by a Hong Kong board for overprescribing medicine in 2021, as per Bloomberg. Regencell’s rally is raising eyebrows among analysts and regulators. With limited float and no concrete commercial success, many compare the surge to earlier meme stock frenzies like GameStop or AMTD Digital. Even more concerning: the firm has disclosed no major scientific breakthroughs or partnerships to justify such a valuation. It simply caught fire in a volatile trading environment—and with such a tightly controlled shareholding structure, even small trades can push prices higher. As of Monday, another investor—Zoom’s early backer Samuel Chen—held a stake worth over $2.2 billion, according to Bloomberg. From herbs to high stakes Regencell’s stock story isn’t just about one billionaire. It reflects a wider trend of speculative bubbles in biotech and TCM startups. In 2021, the company signed a deal to distribute Chinese herbal remedies for COVID-19 across Asia—but little has been heard since. The firm’s Brain Theory products, according to its disclosures, are liquid-based herbal formulations administered twice a day. There’s no mention of FDA approval or clinical trial data in the public domain. Still, the stock keeps soaring. Is it sustainable? Experts remain sceptical. Regencell has just a dozen employees. Its business model relies heavily on personal branding, self-funding, and a niche medical market with little regulation. Bloomberg analysts warn that “paper wealth” can evaporate as quickly as it appears. With no profits and no product sales, the company’s valuation could collapse just as dramatically as it rose—particularly if scrutiny increases. But for now, Yat-Gai Au stands alongside the world’s wealthiest, thanks to a TCM company that few outside Hong Kong had heard of until this year. (With inputs from the agencies)

Regencell Bioscience, a Hong Kong-based biotech firm specializing in traditional Chinese medicine (TCM), has experienced a staggering stock surge of over 46,000% this year, raising concerns among analysts and regulators.

Here's how an unprofitable Chinese medicine firm’s stock rally lifts CEO’s wealth to $33 billion