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What are the Houthis and their allies, Iran in Yemen?
Yemen's Houthi group fired missiles on Saudi Arabia, accusing it of bombing a Saudi airport that was under their control. This broke a four-year ceasefire in the conflict between Saudi Arabia and the Iran-aligned movement. This move marks the end of the de-escalation period and is a sign that Iran may now use its Houthi allies in order to shut down the Bab el-Mandeb entrance to the Red Sea. It would be the second 'global /shipping chokepoint disrupted since the Strait of Hormuz. WHO ARE HOUTHIS? Abdul Malik al-Houthi is the leader of Yemen’s Houthis. He is a highly secretive figure who has transformed mountain fighters wearing sandals into an army of tens and thousands of people that challenged Israel and Western allies following the Gaza War. Houthis is a military, religious and political movement that is led by the Houthi Family and is based in north Yemen. They are Shi'ite Muslims who belong to the Zaydi Sect. After the "Arab Spring", the Houthis expanded their power, and built stronger ties with Iran. The group took advantage of the instability in the country and captured the Yemeni capital Sanaa, in 2014. Saudi Arabia led an Arab coalition in a military operation to try to remove the group. The Houthis showed significant missile and drone capability, by attacking vital infrastructure and oil installations in Saudi Arabia and United Arab Emirates. The U.N. brokered an?2022 ceasefire between warring parties in Yemen after years of fighting which led to the worst humanitarian crisis on the planet. History The Houthi family, in the far north of Yemen, set up, in the late 1990s a religious revival for the Zaydi Shi'ite sect, which had once ruled Yemen, but whose northern heartland was now impoverished. As tensions with the government increased, the guerrillas fought with the national armies and briefly with Sunni Saudi Arabia on the border. HOUTHI ASSASSINS The Houthis, claiming to be in support of the Palestinians, began shooting at international ships in the Red Sea after the attack by Hamas on Israel on October 7, 2023. Israel responded by airstrikes on Houthi targets after the Houthis fired missiles and drones. The U.S. launched its own strikes against the Houthis. Houthi strikes disrupted international trade, forcing shipping around South Africa in order to avoid being hit. Links with Iran The Houthis are building ties to Iran but the depth of this relationship is not known. Both the coalition and Iran deny that Iran is arming or training the Houthis. The coalition claims that Hezbollah, a Hezbollah-backed group in Lebanon, is also helping the Houthis. This accusation they reject. Yemen experts claim that the Houthis are primarily motivated by domestic issues, despite sharing a political affinity to Iran and Hezbollah. The U.S. claims that Iran armed, funded and 'trained the Houthis' with Hezbollah. The Houthis deny that they are Iranian proxy forces and claim to develop their own weapons. WAR IN YEMEN Sanaa, which was captured by the Houthis in late 2014, was the beginning of the war. Saudi Arabia, concerned by the growing influence Shi'ite Iran had along its border with Saudi Arabia, intervened at the top of a Western-backed alliance in March 2015 to support the Saudi-backed Government. The Houthis took control of much of the northern part and other major population centres while the internationally recognized government was based in Aden.
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Investors weigh China and US economic data as they consider copper prices
Investors weighed the gloomy macroeconomic conditions in China with lower U.S. consumer inflation data. Benchmark three-month Copper on the London?Metal Exchange fell 0.49% to $13,576.5?a metric tonne by?0700 GMT. The most-traded contract for copper on the Shanghai Futures Exchange has pared earlier gains. It is now trading at 104,220 Yuan ($15.392.11) per ton. China, the world's largest economy and top metals consumer, saw its GDP growth slow to a low of 3.5 years, as a result of weak domestic demand. The Yangshan Copper Premium, which tracks Chinese purchasing interest, remains strong. On Tuesday, the price of a ton of copper was $90. This is its highest level since May 2025. Both?copper contracts had risen earlier in the day after U.S. Consumer inflation slowed down more than expected in June. This helped to calm fears that interest rates would rise for longer, and dampen economic activity. Daniel Hynes senior commodity strategist, ANZ said in a report that the diminishing prospect of a rate 'hike' boosted sentiment throughout the base -metals sector. Iranian media reported that the Islamic Revolutionary Guard Corps of Iran has threatened to shut "all other export routes which benefit the U.S. or its allies", after Iran closed the Strait of Hormuz, and the U.S. reinstated a naval blockade of Iranian port. Oil continued to rise on Wednesday. Aluminium's gains on the LME were reduced to 0.05% while it fell 0.13% in the SHFE. Prices have been supported by a disruption in supply from the Middle East, which accounts for 9% of global aluminum smelting capability, and declining inventories. The consumers have "sought out alternative sources of supply" and are purchasing larger shipments from China, who exported a record volume of unwrought aluminum and its products in the month June. Zinc was the least affected metal, with a?change of only 0.03%. Lead lost 0.48%. Nickel lost 0.48%. Tin lost 1.43%. On the SHFE, other metals like zinc, lead, nickel, and tin all added to their respective prices.
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New Zealand starts vaccination against endangered species after detecting first H5N1 bird influenza case
Andrew Hoggard, the Biosecurity Minister, announced on Wednesday that New Zealand had reported its first case of deadly H5N1 bird flu after a migratory skua seabird was found near Wellington. The virus was first detected in Australia last month, and the brown skua is the latest bird to be infected. Since 2021, the virulent strain H5 has infected poultry farms and dairy farms and killed?millions of wild birds and mammals. There is no evidence that there has been a mass death in New Zealand's wildlife or transmission of the disease between wild birds. Hoggard stated that there had been no detection of the virus in poultry. Hoggard stated that New Zealand could see a pattern similar to the cases reported in Australia, where 14 H5 bird flu cases have been confirmed or presumed as positive by Wednesday. New Zealand is preparing to deal with H5N1 by working closely with the poultry industry in order to create biosecurity plans and resilience plans. Hoggard told a press briefing that "we'll be doing more surveillance and testing but, by and large, it's the same work we've done with the industry so far." New Zealand's unique endemic species are particularly vulnerable, as they have evolved without land mammals for millions of generations. This has left many of them flightless and unable to defend themselves from predators. This isolation made them unique, but it also left them exposed to pests like stoats and rats. Many species already face extinction, and if the virus spreads quickly they are at a high risk. Health officials are launching a vaccination program for?300 breeding birds of?five endangered species in the country, including the flightless takahe (or kakapo). Hoggard stated that they tested the vaccine last season and saw no side effects, but couldn't be sure how effective it would be as the birds hadn't been exposed to virus. Brett Gartrell is a professor of wildlife at Massey University. He expressed concern that bird flu might 'push to extinction some of the critically endangered birds in New Zealand. Gartrell stated that "we are extremely worried about the biodiversity of New Zealand because our birds haven't had to deal before with something like this." He said, "If the virus spreads rapidly in New Zealand we could be in serious trouble." Reporting by Lucy Craymer, Renju Jose and Kate Mayberry in Sydney. Editing by Sonali Paul, Lincoln Feast and Kate Mayberry.
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Australian stocks rise on concerns about iron ore supplies
Australian shares closed higher on Wednesday, as gains in heavyweight miners tracked higher iron?ore prices amid concerns that planned strike action by BHP Group employees at Port Hedland may disrupt supply. The S&P/ASX 200 Index rose by 0.4%, to 8,841.1. The benchmark closed Tuesday flat. The mining subindex gained 1.7%, marking a second session of gains. This was due to higher iron ore prices and concerns that planned strikes at BHP Group’s Port Hedland operations could disrupt the supply. Anglo-Australian mining company rose as high as 4.4%. This was its highest level in more than four weeks. Additional support came from concerns about potential disruptions to copper supply in Chile, ahead of an upcoming winter storm that is expected to bring heavy rainfall to key copper producing regions. According to Philip Pepe of Shaw and Partners, senior equity analyst, the'move seemed to be driven primarily by weather risks in Chile as copper represents roughly half of BHP earnings. Peer Rio Tinto gained 1.1%, lending support to the mining sub-index after reporting stronger-than-expected second-quarter iron ore sales. The company also stated that the operational impact of Middle East conflict was limited and did not cause any material disruptions to its core commodities or production. Fortescue gained 0.3%. The technology stocks rose 0.1% overnight, following the gains of its Wall Street peers. Block's Australian listed shares rose by 5.2% while NEXTDC gained 5.7%. Shares of Macquarie Group rose 2%. Gold stocks lost 1% of their value as bullion prices fell. After reporting a decline in annual production, shares of gold mining company Evolution Mining fell 3.7%. Energy stocks then lost?0.6% to end two consecutive sessions of gains. Woodside Energy shares and Santos's each rose 0.9% and 0.3%. The benchmark S&P/NZX50 index for New Zealand fell 0.1% to 13,635.07. (Reporting by Anjali Singh in Bengaluru; Editing by Nivedita Bhattacharjee)
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Mike Dolan: The euro/yuan, German auto problems and the latest shock in China.
China's export engine will post another trillion-dollar trade surplus in this year. It is ignoring tariff tensions and energy shortages, while focusing on the still undervalued Yuan. While the focus is on Washington, the second-largest economy in the world is growing rapidly. Its?global influence is just as strong as that of Washington. China's housing crises, demographic decline, and bilateral trade conflicts with Washington, which have occurred amid the geopolitical tensions since the pandemic and amidst the geopolitical tensions that followed, have?overshadowed the biggest economic shock of the century, according to some -- even though China's economy is still posting impressive numbers. Chinese customs data released on Tuesday revealed that exports in June rose 27% in dollar terms from a year ago, their best performance for four months. This was a significant acceleration from May. Imports, which reflect the impact of the AI boom on trade in tech equipment and chips, also exceeded estimates. They rose 36% over the past year, a five-year record. China's surplus trade in June was $126 billion, a significant increase from the $105 billion of the previous month. The gap for the year to date is now $576 billion compared to $586 billion in June last year, even though exports and imports have been growing faster over several months. This puts the record surplus of $1.19 trillion from last year in danger. China's race to create its own tech ecosystem is not just about the AI frenzy or the tech arms races. It also involves developing its own technology to bypass U.S. restrictions on key components. China exported over 1 million cars in one month for the very first time as sales of electric vehicles surged. This is almost twice the monthly level of car exports China had at the beginning of last year. Most of the increase was absorbed by Europe and Latin America. These booming auto exports are likely to hit Europe's automakers the hardest. Volkswagen, the German automaker, said this week that it might need to cut 50,000 jobs more to keep up with the fierce competition and tensions in transatlantic trade. This confirms reports that it was looking to reduce its workforce by 100,000 within the next few years. German automakers also struggle to sell in China's subdued car market. BMW issued a profit warning only last month on its exports. The euro zone, and Germany specifically, are under enormous pressure, with U.S. Tariffs in the West and Chinese Imports from the East, and energy prices rising again due to the simmering Iran War. There is no simple solution to this problem, which is complex both politically and economically. Europe needs Chinese battery technology for example, yet it is late to protect its higher-tech industry and is clearly concerned about the impact of its auto sector. European policymakers have only recently begun to consider exchange rates in the context of both the problem and its solution. Persuading China to Float The exchange rate is a potential remedy. It's a major point of contention for Europeans. Friedrich Merz, the German opposition leader who visited Beijing in February, raised the issue and said this week that the yuan's undervaluation distorts competition. He said that an appreciation of the yuan would allow China to avoid more severe trade retaliation. Merz stated on Monday that "we are now trying steer the dialog with China towards a solution... an effort to persuade China's currency to be allowed to float free, including within the context of the competition in the capital market." The yuan is gaining ground this year against the euro and dollar. The euro/yuan exchange rate is still higher than a decade ago despite the fact that Europe's trade surplus with mainland China more than doubled. Some economists believe that the euro's real value has increased by up to 40% since COVID, partly because of differences in producer prices inflation following the pandemic. According to a study by Deutsche Bank's Shreyas gopal, Europe is currently experiencing "China Shock 2. He concluded, using multiple valuation models that the yuan is still 15% undervalued compared to the euro, despite this year's 5% increase. This puts it at the extremes seen in the period 2005-2008, with Germany being the biggest victim. He added: "Nearly our models suggest the undervaluation is more pronounced for the yuan against a hypothetical Deutschmark rather than the euro." China's "mercantilism", despite the attention being focused on Wall Street and Silicon Valley, remains one of the most powerful economic forces in history. Export-led models are now being driven by currency controls and tight regulations, causing a third China shock that is eroding prospects for so-called Middle Powers. Subramanian wrote in an op ed on the Project Syndicate website that "consigning America to self-doubt, and a diminished power, while also destroying Europe's biggest power, Germany economically, is a 'accomplishment.' There are few precedents in history." "Chinese economic developments and Fed policies have done more to change the world than US mercantilism in this millennium." It may seem that simple exchange rates are not able to solve the problem, but they can still be seen as a part of it. In this regard, Europe could find itself -- for the first time in recent memory -- on the same side as U.S. president Donald Trump. The opinions expressed are those of Mike Dolan a columnist at. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. 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ASML outperforms expectations; stocks gain as US inflation rate drops
The stock market rose on Wednesday, bonds were stable and oil was down as the U.S. dropped its plan to tax shipping through the Strait of Hormuz. South Korea's volatile KOSPI index jumped 6%, while Japan's Nikkei climbed 1%. However, volume was low and mood nervous due to the slowdown in AI stocks. ASML, Europe’s most valuable company, and the world’s largest supplier of chipmaking machinery, has beaten revenue expectations, and will likely set the tone for the European Open. The European futures declined by 0.2%, the FTSE futures dropped 0.3% and Nasdaq Futures rose 0.8%. The U.S. consumer price index for June fell by 0.4% on Tuesday, the first drop since the COVID-19 Pandemic. Core inflation was flat. The dollar and bond yields fell in response to the figures. On Wednesday, the euro was comfortably above $1.14 and the 2-year Treasuries were at 4.2% - about 9 basis points lower than Tuesday's 17 month high of almost 4.3%. In a note to clients, J.P. Morgan analysts stated that "for market bulls, this is even more than Goldilocks would have imagined." This print will?remove fears of a rate hike in July and could also ease fears for September. This allows the market to rise and broaden at the same time. Kevin Warsh, the Federal Reserve chair, told Congress in a speech that a single data point is not enough to declare victory against inflation. IBM's stock price dropped by 25% after its revenue forecast was below analyst expectations. This shows how skittish and stretched the market has become in AI-related shares. Damien Boey is a portfolio strategist with Wilson Asset Management, Sydney. It's a winner takes all dynamic. If you think you will be left behind by this AI boom you are going to get hammered," said he. The sharp reactions of the stock market to the results of the AI uncertainty are a reflection of that. Bank Earnings BEAT The Wall Street bank earnings calendar was dominated by Tuesday's stellar profits. On Wednesday, Morgan Stanley, BNY BlackRock, and Johnson & Johnson will report their earnings before the morning bell. Official data released on Wednesday showed that China's economic growth in the second quarter slowed sharply, to 4.3%, which was below analysts' expectations. This is because weaker domestic demand overshadowed stronger production and exports. Investors were encouraged by the rebound in Chinese retail sales in June, a relatively high nominal GDP, and the hope that authorities would respond. Woei Chen, UOB's economist, said: "I do not think they will be concerned enough to announce any large stimulus. But it is going to be targeted because they know that the growth is only in the tech sectors, while the rest of the economy continues to?underperform." The yuan of China traded at an all-time high of 6.7635 per dollar. The Australian dollar tested resistance at 70 cents, and the struggling yen was stuck on the lower side of the dollar. Brent crude futures remained at $85.80 per barrel after gaining?almost 13 percent this week due to a resurgence in Middle East conflict. Donald Trump, the U.S. president, reimposed on Tuesday a naval blocade of Iranian port and threatened to strike power plants and bridges if Iran did not resume negotiations to end its conflict. He also scrapped his plan to charge a 20% surcharge on shipping through Strait of Hormuz. (Reporting and editing by Christopher Cushing, Jacqueline Wong, and Tom Westbrook)
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Sources say that China's Zhenhua has booked the first Saudi crude cargo to be refined by a joint venture with Saudi Arabia.
Two sources with knowledge of the matter confirmed on Wednesday that China's Zhenhua Oil had booked to load 2 million barrels in Saudi crude for August. This is a sign that a new?joint venture? refinery between China and Saudi Arabia will soon begin operations. The crude will be supplied to the newly built 300,000-barrel-per-day Huajin Aramco Petrochemical Co (HAPCO) refinery in northeastern China's Liaoning province, the sources said. HAPCO was formed by Saudi Aramco, Norinco Group (a Chinese state-owned conglomerate) and Panjin Xincheng Industrial Group. HAPCO has delayed its start-up to September or even October due to disruptions in Middle East oil supplies through the Strait of Hormuz. Aramco refused to comment and Zhenhua oil did not respond immediately to the request for comment. Sources said that Zhenhua is a subsidiary of Norinco and procures crude for the refinery. Aramco has said that it will supply HAPCO with up to 210.000 bpd in 2023. Aramco sold around 24 million barrels of crude oil, or 774 194 bpd in total, to Zhenhua, and other Chinese refiners for August, according to trade sources. This is double the record low of 12 million barrels set in July. The top oil exporter in the world has reduced its official August selling price of crude?to Asia from the previous month by $11 per barrel, the largest drop in over two decades. After a U.S./Iran interim deal eased Middle East supply concerns, oil prices fell sharply. However, renewed attacks in the?region since last week have revived supply concerns and slowed shipping again through the Strait of Hormuz. Records show that Zhenhua lifted the last Saudi crude term in August 2024.
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Iran threatens to close more important seaways after Trump renews Iran blockade
The Islamic Revolutionary Guard Corps of Iran has threatened to shut "all other export routes that benefit the United States" Iranian media reported that the U.S. and its allies would be affected by the closure of the Strait of Hormuz after Iran closed it. The IRGC stated in a statement published by Iran's IRNA news agency on?Wednesday that "regional energy?exports" are either shared or denied by all. Analysts say that Iran is signaling it will use its Houthi ally in Yemen to close the Bab el-Mandeb Red Sea gateway, opening a front against Washington. This would put two of the most important energy arteries on the planet at risk. Through this narrow passageway, Saudi oil exports as well as a large share of the global shipping passes. According to a report by Iran's Press TV, a senior Houthi official warned that the group would close the Bab el-Mandeb Strait if Saudi Arabia kept attacking Yemen. He said this could cause oil prices to soar to $200 a barrel. Houthi forces launched missiles against Saudi Arabia on Monday after accusing it of bombing a Saudi airport that they controlled. This broke a four-year-old truce between the kingdom and the Iran-aligned faction. The Houthis already have shown that they can choke off global commerce via the Bab el-Mandeb. The Iran-backed group attacked commercial shipping in Red Sea after the Gaza War erupted on October 20, 2023. They claimed that they were targeting Israel-linked vessels in support of Palestinians. The latest threat to shipping worldwide comes just a day after U.S. forces announced that they had begun a new round of strikes to "continue degrading Iranian capability used to attack commercial ships in the Strait of Hormuz." The United States claimed that Iran attacked seven commercial vessels in the past week. Nearly a dozen crewmembers were killed, injured or went missing. The U.S. Military announced late on Tuesday that it had hit dozens of targets near the 'Strait of Hormuz' and Iranian coastal regions. U.S. Central Command stated in a press release that the wave of strikes lasted for seven hours. "END OF AMERICA’S EVILS" The IRGC announced on Wednesday that it would close the Strait of Hormuz until "the end of America’s evils". The Strait of Hormuz was the route for a fifth daily of all oil and gas shipping before the February war. In response to recent U.S. attacks in the Strait of Hormuz, the Guards claimed they targeted command-and control, logistics, fuel, and military equipment installations belonging to the U.S. Fifth Fleet located in Bahrain. The group also claimed that they destroyed and set ablaze what they called a U.S. logistic?facility located in Kuwait's Mina Abdullah, and that they used their air force to strike what they said was a U.S. military base in Azraq, Jordan. They targeted aircraft hangars. Some of the U.S. strikes were launched from bases in Jordan. Kuwait's official news agency had reported earlier on Wednesday that a fire at a site which was targeted by Iranian attacks, has been brought under control. The IRGC did not specify whether the fire occurred at the same location. Jordan's 'air defence' intercepted and destroyed?three missiles that were launched from Iranian territory into Jordanian airspace early Wednesday morning. Last week, the hostilities between Iran & U.S. were re-ignited. This weakened a fragile truce that was reached in June following several months of combat which has resulted in thousands of deaths. TRUMP THREATENS HAVING HIS ENERGY TARGETS Donald Trump, the U.S. president, threatened on Tuesday to strike Iranian power plants and roads next week if Tehran does not resume negotiations. Trump told Fox News' Trey Yingst that he would save energy targets until the end, but we would still hit them. Trump said that U.S. negotiators were in contact with Iranian counterparts, telling them to "make a deal". Trump floated a 20% shipping fee through the Strait of Hormuz on Monday, as tensions escalated. This idea was criticized by the U.N. Shipping Agency and others. He scrapped it on Tuesday and said, without giving details, that instead he would seek investment agreements with Gulf States. The latest attacks in the Strait of Hormuz have intensified the supply disruption. Brent closed the session at its highest level since June 12, and West Texas Intermediate, at its highest level since June 15. Early Wednesday trading saw both contracts rise further. (Additional reporting by Bureaus; Writing and Editing by Raju Gopikrishnan; Raju Gopalakrishnan).
Data centres: where authorities restrict them amid AI boom
As concerns grow over rising electricity costs, water scarcity, land shortages, and the burden placed on local communities by the infrastructure that powers the AI boom, governments, regulators, and cities around the globe are taking steps to restrict, ban, or freeze the construction of new data centres.
Here are a few key examples.
NEW YORK STATE, U.S.
Governor Kathy Hochul has imposed a construction moratorium of one year on data centers that use 50 megawatts or more in power. This makes New York the very first state to do so.
The Department of Environmental Conservation of the State will not be issuing new permits until officials have developed standards to assess the environmental impact of the data centers.
MAINE, U.S. (vetoed)
Governor Janet Mills has vetoed a bipartisan bill that would have implemented an 18-month "moratorium" on data centers that use more than 20MW of electricity. This would have been a first?of its kind?in the U.S.
Mills stated that she was in favor of a moratorium but objected because the bill failed to make an exception for a particular project in the town of Jay.
MONTEREY PARK (CALIFORNIA), U.S.
Residents of the city voted in June 2026 to ban data centers permanently, making it the first U.S. municipality to do so. This was in response to public outrage over the planned facility.
AMSTERDAM (NETHERLANDS)
In 2019, the city placed a moratorium of one year on any new developments involving data centres. It banned new data centres or expansions until at least the year 2030.
The Dutch government's ban on hyperscale facilities in 2022 restricts large facilities to only two locations across the country. Microsoft, however, won approval for a project that was split into three separate towers each below the size threshold.
DUBLIN (IRELAND) (restriction now lifted).
Ireland's grid operator has effectively blocked new data center connections around Dublin by 2021, after warnings that the facilities would?strain the grid.
In December 2025 the freeze will end and new connections must be made to generate their own power.
Australia (planned legislation
Australia's Prime Minister Anthony Albanese announced that a government AI Office will be established to oversee the?development and standardization of artificial intelligence.
Albanese stated that the new "Office of AI", within the Department of the Prime Minister and Cabinet, will set standards for large data centres, including rules covering their 'location, energy and water usage,' with legislation expected to be introduced earliest next year.
Australia does not currently have specific AI laws. Instead, it relies on a variety of privacy and consumer protection legislation as well as an optional AI ethics framework.
(source: Reuters)