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Marco Rubio warns diplomats not to mention the 'kill switch" in American technology
According to a cable reviewed by the. The talking points were distributed worldwide and show how U.S. diplomacy is trying to deal the international backlash caused by the Trump administration's attempts to control who American AI companies can release their models to. The White House directed questions to the State Department which then pointed to an article from U.S. Jacob Helberg, Under Secretary for Economic Affairs at the State Department, condemned "autarkist" measures that aimed to push American AI technology aside and in favor of native AI. He called this trend "backwards and counterproductive." Rubio's letter follows the Trump Administration's move in June '12 to ban foreign nationals from Anthropic’s most advanced models Mythos and fable on national security grounds. This prompted the AI company, to suspend global access to these models. Asian tech executives used the disruption to promote their own alternatives, while European legislators redoubled calls for digital independence. The fallout from the ban lingers even though it was lifted the following month. The U.S. government's new desire to monitor AI products, and possibly yank them from allies' hands at any moment, was reflected in Trump's?executive orders of June 2, which required AI companies to submit their models for 30 days to cybersecurity testing before their release. The episode, according to European legislator Christophe Grudler, showed that the U.S. has a "kill-switch" over vital technologies that it is more than willing to use. Aura Salla of the European People's Party (the largest political group in the European Parliament) said that Europe "cannot continue building its tech stack based on access that could be turned off by a foreign country overnight." The State Department cable dated July 16 did not refer to Anthropic or specifically to Trump's executive orders or last month's banning of the company, but provided American diplomats talking points designed for countering arguments that have arisen in their wake. The cable stated that "Stopping narrow uses or requiring 30-day testing prior to the release a highly powerful new technology is not an 'Kill Switch.'" There is no'magic' button on the government's part. This narrative is exaggerated, and does not capture the nuances of U.S. Technology Policy." AMERICAN AI SALE PITCH Rubio’s cable urged diplomats to oppose "so-called "digital sovereignty" initiatives. It defined these as efforts to restrict American technology firms' access foreign markets, subject them localization requirements, or force them follow local rules such as content moderating. Rubio had already told American diplomats earlier this year to oppose data sovereignty measures. The cable discussed ways to counter "AI sovereignty", instructing American diplomats to promote American AI products as the best available tools and to describe efforts to create rival AI systems by scratch as a waste. The cable stated that "American AI companies are able to build large, independent AI Infrastructure, with secure, robust supply chains, which minimizes backdoor risk." They build it. It's yours." Edward Fishman, Director of the Maurice R. Greenberg Center for Geoeconomics, at the Council on Foreign Relations said he understood the safety concerns that led the U.S. Government to impose first restrictions on Anthropic’s models which could turbocharge complex hacking activities. Fishman, however, said that the Trump administration's tendency to use coercive economic instruments such as tariffs or sanctions against both friends and enemies made the State Department pitch a difficult sell. He said that European partners were worried that the U.S. might use their business as a weapon against them if they became "ultra-reliant" on U.S. frontier AI model like those by Anthropic or OpenAI. Salla, a European legislator, said that Trump's administration had repeatedly threatened countries such as Denmark, creating an atmosphere of distrust that could not be dispelled by rhetoric. She said, "They haven't shown us that they are reliable business partners." Reporting by Raphael Satter; editing by Deepa Babyington and Lincoln Feast.
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Mexican journalist killed in Oaxaca - fourth murder since June
The Attorney General's Office of the Mexican state of Oaxaca announced that Mexican journalist Francisco Leyva had been found dead on Wednesday. This is at least the fourth killing of a 'journalist' in Mexico since June. In a press release, the state prosecutor's has said that it has started an investigation into the murder. It also added that it had sought the assistance of the Special Prosecutor for Crimes against Freedom of Expression. Leyva (60) primarily covered stories about government corruption and violence linked to criminal groups in Oaxaca. "He was a critical journalist of our government like many other journalists, who exercised their rights every day to ask questions, point out issues, and express their opinions freely," Oaxaca governor?Salomon jara wrote on social media. Mexico is regarded as one of the world's most dangerous countries for journalists, outside of active war zones. According to press freedom groups, the vast majority crimes committed against journalists are not punished. Early in July, Mexican authorities confirmed that remains found at a property located in the eastern state Veracruz were those of journalist Roxana Guzman. She had been abducted a month before by an armed group. According to Article 19, journalists Luis Angel Lopez, Manuel Moreno and others were also killed in June for their reporting. At least five journalists were killed in 2026. According to Article 19, seven journalists were killed last year while reporting. Reporters Without Borders recorded nine murders of journalists in Mexico last year, making it the deadliest year since 2003. Reporting by Lizbeth Diz, Editing and production by Lincoln Feast.
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The largest US electrical grid was ravaged by a massive power outage
Experts and grid operator PJM data indicate that a massive amount of?of _power was abruptly disconnected on Wednesday, causing a disturbance in voltage which could be felt all the way from Washington, D.C., up to Chicago. It is unknown what caused the incident in PJM Interconnection territory. It demonstrates why state and federal regulators are studying ways to better manage sudden drops in demand from data centres and crypto miners, which can destabilize grids. The epicenter of the event on Wednesday occurred around 7:55 am. Bob Marshall, CEO at Ting Labs, said that the epicenter of the event occurred in northern Virginia. This is home to the largest number of data centers anywhere in the world. The network of 1.4 million sensors owned by Ting Labs recorded voltage disturbances along the east coast and as far west as Chicago. Marshall stated that grid disturbances are corrected in milliseconds by operators and utilities. He said that Wednesday's grid disturbance took 10 minutes to stabilize. Marshall stated that "this was a huge event." PJM Interconnection (the grid operator for 67,000,000 people in a region that stretches between Washington and Chicago) reported more than 3 gigawatts or 3% of the total electric demand of the grid at the time. PJM reported that it had registered the sudden fall in power 'demand' and a change to the grid's 'frequency', which measures 'the grid's equilibrium of electricity supply-and-demand. But PJM's reliable was not affected. Marshall said that "our customers in northern Virginia reported flickering and loud noises coming from their air conditioners?and refrigerators." "The power quality was a big hit." Dominion Energy, an electric utility in the Dominion Energy territory, did not respond to a request for comment on this event.
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Treasury's Bessent applauds Pakistan's reforms and pushes to return to the capital markets
Treasury released a statement saying that U.S. Treasury Secretary Scott Bessent had met with Pakistan's Finance Minister on Tuesday. Treasury welcomed the country's efforts to 'implement' economic reforms and to prepare for its return to international capital market. First reported by. Sources say that the request was made by Pakistani Finance minister Muhammad Aurangzeb during the meeting. John Jovanovic, President of the U.S. EXIM Bank, was also present during his Washington visit. Treasury reported that during his meeting with the Pakistani representative, Bessent stressed the importance of Islamabad working to advance its reforms and become more "economically independent", boost growth, and strengthen its resilience. Treasury stated that "Secretary Bessent appreciated the progress Pakistan made in restoring the macroeconomic stability and advancing fiscal consolidation. Recognizing the government's effort to implement significant reforms," Treasury. It said that "Secretary Bessent praised the government for its commitment to creating conditions for a successful re-entry to international capital markets" and expressed his support for Pakistani efforts to achieve greater economic independence. Pakistan has been hard hit by the Iran War, due to its dependency on Gulf energy imports. It also relies heavily on remittances from the Gulf and financial support. It narrowly avoided defaulting in 2023 by signing a standby agreement with the IMF worth $3 billion. Later, it secured a $7-billion Extended Fund Facility and a $1.3-billion loan to improve its resilience against climate change and natural catastrophes. Its reserves are still dependent on China and Saudi Arabia for official financing, rollovers, and deposits. Islamabad requested the bilateral currency stabilization funds after it took the initiative to broker talks about ending the Iran War, which raised its diplomatic profile and earned praise from the Trump Administration. After Aurangzeb met with the EXIM head, the Ministry issued a statement welcoming the U.S. The export credit agency has proposed to strengthen ties with the U.S., create a multi-year pipeline of transactions, and facilitate U.S. funding. The minister stated in a blog post that both sides had agreed to identify transactions near term, designate focal people, and work towards finalizing a strategic framework with a view of having it signed 'on the sidelines the United Nations General Assembly in September 2026. EXIM confirmed that the meeting was held in a post on 'X, but did not provide any details regarding U.S. -financed plans. It wrote: "Chairman JJovanovicUSA held a meeting with Pakistani Minister of Finance and Revenue Muhammad Aurangzeb at @Financegovpk in order to promote stronger economic cooperation and to create new opportunities for American companies to compete and win overseas." Reporting by Andrea Shalal and Gursimran K. in Washington; editing by Alexandra Hudson, Sonali Paul and Sonali Hudson
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US announces nuclear deal with Saudi Arabia
The U.S. Energy Department announced on Wednesday that the U.S. has reached an agreement with Saudi Arabia on civil nuclear energy. This deal allows the kingdom build nuclear reactors utilizing American technology, and enrich uranium. The Saudi nuclear deal has been in the making for many years, both during President Donald Trump's administration and that of?former President Joe Biden. The current deal, unlike the Biden plan does not include the so-called Additional Protocol that would allow the U.N. International Atomic Energy Agency (IAEA) to conduct intrusive quick inspections. The agreement would allow Saudi Arabia to enrich nuclear waste and reprocess uranium, which could be used to make a nuclear bomb. In a 2009 agreement with the U.S., the UAE agreed to renounce both. The U.S. Energy Department announced that Secretary of Energy Chris 'Wright' and Price Abdulaziz Bin Salman, his counterpart, signed the pact known as a 123 Agreement along with a bilateral safety agreement. The deal, according to the administration, also complies with nonproliferation provisions in the U.S. Atomic Energy Act. These agreements are among the strongest in the world. Saudi Arabia has said for years that if it doesn't partner with the U.S. it will partner with China and Russia, which have different standards of proliferation. The Energy Department said that the deal will now be sent to Congress. The deal will go into effect if Congress does not raise votes within 90 days to object to it. But it would require a two-thirds vote to override the veto of the president. The deal has raised concern among a number of Democratic lawmakers that it could spark an arms race in Middle East. Saudi Crown Prince Mohammed Bin Salman has said repeatedly that he doesn't want his kingdom to develop a nuclear weapon, but if Iran did it would. They are allowing Saudi Arabia to develop nuclear weapons technologies, while at the same time starting a war against Iran, under the guise that they want to prevent an Iranian nuclear weapon, said Senator Edward Markey. This deal would make all of us less safe. (Reporting and editing by David Gregorio, Ismail Shakil, Christian Martinez and Timothy Gardner)
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Trump Administration considers nuclear power plants for US waters
The Trump administration said on Wednesday that it would consider putting nuclear energy projects in federal waters, as part of a broader?plan to increase domestic energy production and accelerate deployment of advanced 'nuclear technology. Marine Minerals Administration (MMA),?which oversees the development of the?U.S. The?Outer Continental Shelf's said that it had signed an agreement to coordinate the oversight of offshore nuclear projects with the Nuclear Regulatory Commission. Interior Department has been taking a series of steps to open federal waters for industrial activities. This includes space launches and mining. However, it has also tried to aggressively block the development of offshore wind farm. The agencies said they would work together to meet industry needs, even though there are no commercial projects planned. U.S. President Donald Trump wants to quadruple the nuclear power capacity of the U.S. by 2050 in order to meet rising power needs due to data center expansion. Matt Giacona, MMA's Acting Director, said that submerged reactor systems had been "safely deployed" in naval applications for decades. They have proven to be a reliable energy source in marine environments. The administration didn't immediately answer a question on whether agencies would take into account the national security implications offshore nuclear plants. The Interior Department has cited national-security concerns, including radar interference, for the stifling of the nation's fledgling offshore wind industry. The agency announced in separate announcements made earlier this month that it would lease 31,000,000?acres of land off the coast of American Samoa to mine seabeds and was also considering using the OCS as a launch pad and re-entry space infrastructure. Center for Biological Diversity, an environmental group, said that the?effort will harm U.S. Oceans. Nick Katkevich of CBD, a campaigner for oceans, said that the Trump administration has a "never-ending" list of bad ideas to'mistreat ocean life. Nuclear reactors on old oil platforms are 'one of their worst." The administration has not specified where the potential power plants could be located. (Reporting and editing by Nichola Grroom; Aurora Ellis)
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Oil prices rise on US-Iran strikes; stocks fall ahead of Big Tech results
The oil price rose to its highest level in six weeks?on Wednesday, as U.S. and Iran exchanged strikes, further endangering energy shipping across the Middle East. Meanwhile, U.S. stocks were flat before?important Big Tech earnings. Brent crude prices last rose around 3.5%, to $94 a barrel. This was the highest since early June. A brief detente that existed between the U.S., Iran and other countries ended in early this month. This has once again restricted tanker movements through the Strait of Hormuz. Donald Trump, the U.S. president, threatened to attack Iran's infrastructure again on Wednesday. The war, which has lasted for nearly five months, has led to a global shortage of food and fuel. This has fueled inflation in many countries. The threat of an attack by the Houthis, a group aligned with Iran in Yemen, on another major artery in Middle East - the Red Sea - could cause shipping disruptions to worsen. Following the Houthi's threat, four oil tankers transporting Saudi crude from the Middle East to Asia changed course in the Bab el-Mandeb Strait. Closing both Hormuz Strait and Bab el-Mandeb Strait would disrupt the shipping routes of more than 25% of the world’s oil and natural gas. Analysts said that clearing both of these logjams could put a strain on the U.S. Military. Sameer Samana is the head of global equity and real assets for the Wells Fargo Investment Institute. He said that higher?oil price are the most significant macro-risk in the near term. "Escalating Middle East conflict has pushed crude oil prices higher, raising fears that inflation may'reaccelerate' and delay rate relief. The Dow Jones Industrial Average rose 0.1% on Wall Street. Meanwhile, the S&P 500 remained unchanged, and the Nasdaq Composite fell 0.3% due to weakness in chip stocks. Indermit Gil, World Bank's chief economist, said that escalating hostilities may reignite inflation and drive interest rates higher, while reducing global growth from 2.9% to 1.3%. ALPHABET STARTS TECH EARNINGS After Wednesday's closing bell, the?stock market will focus on earnings from Alphabet. The company is under increased scrutiny for its delayed launch of an AI model. Tesla is expected to report their first quarterly cash loss in more than two years. Micron Technology, Nvidia and other chip stocks, which have driven this year's AI rally, saw gains of 0.25 and 3.2%, respectively. In recent months, shares of hyperscalers were under pressure due to concerns about rising capex. John Plassard is the head of investment strategy for Cite Gestion. He said that even the slightest doubts about the monetization or return of infrastructure investments could put into question what has been driving the market rally in the last two years. Trump's new tariff announcements have also increased uncertainty. He said that all generic drugs imported into the U.S. would be subject to a tariff of 100% starting in August 2028. The rate will rise to 200% one year later. This week, the administration announced that it would impose 50% tariffs on certain Canadian goods. The MSCI All-World Index was slightly higher for the day as Europe's STOXX 600 increased 0.6%. YEN BURSTS OFF 40 YEAR LOWS Investors weighed up measures that officials might use to stabilize the currency. Satsuki Katayama, the Japanese Finance Minister, said that the government is ready to take "decisive actions" in currency markets if necessary. However he refused to comment on specific levels of foreign exchange. After four consecutive daily gains, the dollar fell from its one-week high. Central bankers are also becoming more cautious when predicting monetary policy due to the rising cost of energy. The European Central Bank will announce its interest rate decision on Friday, while the U.S. Federal Reserve is due to make a decision next week. LSEG data show that both central banks will likely?keep borrowing costs at the same level this month. However, traders are expecting borrowing costs to increase by 25 basis points in the U.S. as well as the eurozone by the end the year. After reaching a two-month peak on Tuesday, the yield on a 10-year Treasury bill in the United States rose by 2.85 basis points. Later in the day, the Treasury will auction 13 billion dollars in 20-year bond. Reporting by Lawrence Delevingne and Gregor Stuart Hunter; Editing by Amanda Cooper Anil D'Silva Jan Harvey David Gaffen Rod Nickel
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Gold reaches a two-week high on a softer dollar and Fed outlook
Gold reached a two-week high on Wednesday, boosted by a softer dollar, and technical 'buying.' Markets weighed Middle East tensions, and awaited new interest rate signals from the U.S. Federal Reserve. Gold spot rose 1.7% by 1:35 pm EDT (1641 GMT) to $4,145.24 an ounce, after hitting its highest level in July at $4,165.87 earlier that day. U.S. Gold Futures for August delivery settled 1.9% higher, at $41561.90. Gold exploded higher and punched above $4,140, as a lower dollar and dip buyers instilled fresh inspiration to bulls, said Lukman otunuga senior research analyst at FXTM. He added that "the underlying bearish fundamentals could cap upside gains, especially since oil prices rose over 3% in the morning." The U.S. Dollar Index weakened?on Wednesday making greenback priced bullion more accessible for overseas buyers. U.S. Secretary?of State Marco Rubio said Washington would be willing to negotiate an end the Iran crisis, but Tehran wasn't serious about talking. Four tankers carrying Saudi crude bound for Asia reversed course on Wednesday in the Red Sea after being threatened by the Houthis of Yemen, a group that is aligned with Iran and controls the coast along the southern route. On the news, oil prices rose to a six-week high. The increased oil prices caused by the Gulf supply disruptions are weighing down on gold prices, as they have 'raised expectations for higher interest rates over a longer period of time. This tends to reduce the appeal of non yielding?gold. The Fed is likely to maintain its key interest rate for the remainder of 2026. Markets are pricing in two rate increases by the end of March, next year. According to the CME?FedWatch tool, traders expect an interest rate increase in September. Investors will be watching the FOMC's interest rate decision next week to get a better idea of the Fed's monetary policy. The price of spot silver increased by 2%, to $59.98 an ounce. Platinum rose 0.7%, to $1.640.63. Palladium increased 1.4%, to $1.299.47. (Reporting and editing by Jonathan Ananda in Bengaluru, Nia William and Joyjeet Das.)
As tensions between the US and Iran escalate, oil prices reach a six-week-high.
On Thursday, oil prices jumped more than 1.5% and reached their highest level in over six weeks. This was due to a new round?of strikes by the United States against Iran as well as Yemen's Houthis attacking oil tankers on the Red Sea.
Brent crude futures were up $1.93 or 2% at $96 as of 0011 GMT. This is the highest price since June 8th. The previous session had seen it settle over $3 higher, at $94.07. This was just short of the six-week peak.
U.S. West Texas Intermediate Crude rose $1.44 or 1.7% to $88.27 after rising almost 3% on Wednesday.
The U.S. Military said that it had carried out 12 consecutive nights of attacks against?Iran, hours after U.S. president Donald Trump's pledge to destroy an Iranian power plant or bridge every time Iran fires on a ship in Strait of Hormuz. This raises the stakes of the war with Iran.
The Iranian Revolutionary Guards reported that two oil tankers turned back after an explosion occurred while trying to pass what they called a mined path south of the Strait of Hormuz.
The Guards warned that the Strait would remain "completely closed" as long as U.S. military actions continue in the area. They also said no tanker will be allowed to enter the region or leave it without coordination with Iran.
The Houthis, who are aligned with Iran, have not only re-opened the conflict over the control of this key waterway but also opened a new front by threatening to target vessels transporting Saudi oil through the Bab el-Mandeb Strait. They've also announced a naval blocade against Saudi Arabia.
The Houthis claimed they carried out a military action targeting two 'Saudi oil tanks.' Maritime security reports stated that one of the vessels, the Saudi flagged tanker Encelia was hit in the Red Sea.
The Houthis claimed that they had forced 10 ships to return and retreat after warning vessels not to?sail to Saudi ports. This account could not be verified immediately.
In a recent post on X, the Revolutionary Guards spokesperson warned that the southern 'route' of the Strait of Hormuz is mined.
The Energy Information Administration reported that crude oil stocks in the United States increased by 2,000,000 barrels during the week ending March 29, as refinery operations slowed and crude exports fell while imports rose. In a survey, analysts had predicted a draw of 1.1 million barrels. (Reporting and editing by Arathy S. Somasekhar)
(source: Reuters)