US

Netanyahu vows to carry on war, 'eradicate Iranian regime'

BY AFP TEAMS IN TEHRAN, BEIRUT, JERUSALEM AND WASHINGTON

  • In his speech, Netanyahu declared that Israel had achieved almost total control of the skies over the Iranian capital.
  • Israeli Prime Minister Benjamin Netanyahu vowed on Saturday to carry on the war with Iran, saying Israel had a 'systematic plan to eradicate the Iranian regime', as Tehran insisted it would not surrender.
  • In his speech, Netanyahu declared that Israel had achieved almost total control of the skies over the Iranian capital.
Israeli Prime Minister Benjamin Netanyahu vowed on Saturday to carry on the war with Iran, saying Israel had a 'systematic plan to eradicate the Iranian regime', as Tehran insisted it would not surrender.
The Israeli premier's pledge in a televised address to pursue the war "with all our force" came on a day when Iran launched wave after wave of missiles and drones at its Gulf neighbours.
Israel and the United States, meanwhile, pounded Iran again, with one air strike setting a Tehran airport ablaze and another hitting an oil depot, even as Tehran continued to retaliate.
Its Revolutionary Guards said they had struck America's Juffair base in Bahrain, adding that it had been used to attack an Iranian desalination plant earlier Saturday.
There were air raid warnings and blasts in Jerusalem in Israel and Doha in Qatar, and attacks on the United Arab Emirates and Bahrain.
The UAE said its air defences intercepted 15 missiles and 119 drones on Saturday morning and video footage showed one projectile crashing at Dubai airport.
AFP journalists heard blasts in Baghdad, Erbil and Dubai on Saturday evening, while Saudi Arabia also reported an attack.
"Evidence from Iran's armed forces shows that the geography of some countries in the region is openly and covertly at the disposal of the enemy," said Gholamhossein Mohseni Ejei, Iran's hardline judiciary chief.
"The heavy attacks on these targets will continue." 
Earlier, President Masoud Pezeshkian had issued an apology to Iran's neighbours, which host major US military bases.
Pezeshkian struck a defiant tone in a speech in which he also appeared to address Trump's demand for "unconditional surrender". 
Iran's enemies "must take their wish for the unconditional surrender of the Iranian people to their graves", the president said.

Air raids

Israel launched some of its biggest raids since the bombardment began last Saturday, with a military academy, an underground command centre and a missile storage facility named as targets.
Fire and smoke billowed from Tehran's Mehrabad International Airport after a predawn attack in which Israel said it had destroyed 16 aircraft and fighter jets.
In his speech, Netanyahu declared that Israel had achieved almost total control of the skies over the Iranian capital.
Meanwhile, his close partner in the war, Trump, had posted on his Truth Social platform earlier: "Today Iran will be hit very hard!"  
"Under serious consideration for complete destruction and certain death, because of Iran's bad behavior, are areas and groups of people that were not considered for targeting up until this moment in time."
Later, in Florida, he repeated his claim that Iran had been close to having a nuclear weapon, saying: "They're crazy and they would have used it. So we did the world a favour."
Now into a second week, the war was sparked by joint Israeli and US air strikes that killed Iranian supreme leader Ali Khamenei. 
The conflict has since widened to Lebanon, as well as Cyprus, Turkey and Azerbaijan, and reached as far as the seas off Sri Lanka where US forces sank an Iranian warship with a torpedo.
Inside Iran, damage to infrastructure and residential buildings is mounting, while residents of Tehran report growing anxiety and a heavy presence of security forces. 
"I don't think anyone who hasn't experienced war would understand it," a 26-year-old teacher told AFP on condition of anonymity.
"When you hear the bombs, you have no idea where they will hit."
The Iranian health ministry put the civilian death toll at 926 on Friday, with around 6,000 injured -- numbers that AFP could not independently verify.
Israel has intensified its air strikes on Lebanon, repeatedly bombing and ordering the evacuation of Beirut's southern suburbs and vast areas of the country's south, where the Iran-backed militant group Hezbollah holds sway.
Israeli Defence Minister Israel Katz warned Lebanese President Joseph Aoun on Saturday that his country would pay a "very heavy price" if it failed to disarm Hezbollah.
Israeli commandos launched an unsuccessful mission overnight to retrieve the remains of an air force navigator lost in 1986, killing 41 people in the process in the town of Nabi Sheet.
Lebanon's health ministry said at least 294 people have been killed in Israeli air strikes over the last week, while Prime Minister Nawaf Salam has warned of a "humanitarian disaster".

Stock markets slump

The consequences of the conflict reach far beyond those in the immediate firing line.
Global stock markets have slumped, while crude oil prices have surged, with analysts warning that there appears to be no clear path to ending a conflict that US and Israeli officials have suggested could last a month or more. 
Iran's Revolutionary Guards said they had hit two oil tankers with exploding drones in the Gulf on Saturday as they continue to paralyse oil and gas traffic through the Strait of Hormuz, a key chokepoint for global energy shipments. 
Trump has promised to help rebuild Iran's economy if Tehran installs someone "acceptable" to him to replace its late supreme leader.
But Amir Saeid Iravani, Iran's ambassador to the United Nations, said the US would have no role in selecting Khamenei's successor.
"The selection of Iran's leadership will take place strictly in accordance with our constitutional procedures and solely by the will of the Iranian people, without any foreign interference," he added.
China and Russia have so far stayed largely out of the fray despite their ties to the Islamic republic, but there are reports that Moscow is providing intelligence to Iran on US troop positions and movements.
Defense Secretary Pete Hegseth said the US was "not concerned" about the reports.
The war has killed six US service members and Trump was to attend a ceremony for the return of their bodies on Saturday.
burs-amj/dcp

shipyard

Women rule the roost atop the Gdansk shipyard cranes

BY BERNARD OSSER

  • It was Walentynowicz's dismissal in 1980 that triggered the huge shipyard strike and the creation of the first free trade union in the Communist bloc.
  • For the past 30 years, Halina Krauze has sat atop a 15-metre (49-foot) crane surveying the Gdansk shipyard, the birthplace of the Solidarnosc trade union.
  • It was Walentynowicz's dismissal in 1980 that triggered the huge shipyard strike and the creation of the first free trade union in the Communist bloc.
For the past 30 years, Halina Krauze has sat atop a 15-metre (49-foot) crane surveying the Gdansk shipyard, the birthplace of the Solidarnosc trade union.
For eight hours, the 65-year-old displaces tonnes of steel that will become ship hulls and wind turbine components.
She is one of dozens of crane operators at the huge yard, the largest in Central Europe.
Far below the cabin, hundreds of workers in overalls, helmets and protective goggles are busy at work.
The noise is constant, sparks fly and the air is full of welding fumes.
Around 70 percent of Poland's construction site crane operators are women, a tradition inherited from the Communist era.
In the Soviet period, "women had to be employed somewhere and since they couldn't do hard labour, they were integrated into other professions", explained Agnieszka Pyrzanowska, spokeswoman for the state-owned Baltic Industrial Group, which now operates part of the shipyard.
"Entire families worked for the same company."
Indeed, Krauze met her husband Stanislaw at the yard and today they work in the same unit.
"He's up there!" she exclaimed, waving energetically at another crane cabin in the sky.

Remembering a legend

Krauze joined what was then called the Vladimir Lenin shipyard in 1983, first in a coal-fired boiler room and later operating a crane. 
"In the beginning, it was a shipyard. We built a good dozen ships a year. Now we build dozens of wind turbine towers. It's quite different," she said.
She is proud to have worked on the same crane as Anna Walentynowicz, one of the founders of Solidarnosc. 
It was Walentynowicz's dismissal in 1980 that triggered the huge shipyard strike and the creation of the first free trade union in the Communist bloc.
Walentynowicz was "a kind of legend, especially among the older generation", Krauze remembered.
With a steady hand, she manoeuvred a huge wind turbine section, five metres in diameter, across the yard.
"There are people below you so you have to be careful nothing happens to them," said Lesia Kovalchuk, a 48-year-old Ukrainian colleague.
Kovalchuk was a crane operator in Ukraine for 15 years before moving to Poland as a refugee when Russia invaded her country in 2022.
Now she teaches young apprentices on Gdansk construction sites.
"In Ukraine, it's completely normal for women to operate cranes. No-one is surprised," she shrugged.
Both women agreed their male colleagues preferred to work with them than with other men.
"Women are calmer and more precise," Hrauze opined.
"Blokes try to get things done as fast as they can. Girls are all about finesse," Kovalchuk grinned.
One thing has changed though, since the Communist era.
At those days, women workers used to receive small gifts on International Women's Day -- "those famous tights, chocolates, carnations...", Krauze recalled.
"There's nothing any more," she said ruefully. "The unions have all forgotten about women."
bo/rl/gil/rmb

CEO

Google gives CEO new pay deal worth up to $692 million

  • Under the plan, Pichai's three-year salary of $6 million, or $2 million per year, would remain unchanged.
  • The CEO of Google and its parent company Alphabet could earn up to $692 million over the next three years under a new compensation plan published Friday by the US Securities and Exchange Commission.
  • Under the plan, Pichai's three-year salary of $6 million, or $2 million per year, would remain unchanged.
The CEO of Google and its parent company Alphabet could earn up to $692 million over the next three years under a new compensation plan published Friday by the US Securities and Exchange Commission.
The deal would make Sundar Pichai, who has been chief executive of Google since 2015 and of Alphabet since 2019, one of the highest paid CEOs in the world. 
Under the plan, Pichai's three-year salary of $6 million, or $2 million per year, would remain unchanged.
The remainder of his compensation would be paid in the form of Alphabet stock, as well as shares in two subsidiaries -- the autonomous vehicle company Waymo and the drone delivery service Wing.
The SEC filing suggested Pichai could receive about $130 million from Waymo and $45 million from Wing.
The allocation will depend on the performance of the shares and, for Alphabet, on the amount of dividends paid.
In the event of his dismissal, Pichai would forfeit all stock options that are not yet exercisable, according to the document.
"Current and previous incentives in Mr Pichai's compensation have benefited Alphabet and its stockholders significantly," the company said in the filing.
tu/vla/lpa/lga/fox

Israel

Rising US fuel prices risk sparking domestic wildfire for Trump

BY ASAD HASHIM, WITH SARAH LAI IN LOS ANGELES

  • Robinson, the schoolteacher, said he will be watching gas prices every day now.
  • Sean Robinson, a 54-year-old schoolteacher in the US capital Washington, did not realize how high gas prices had gotten until he arrived at the pump on Friday.
  • Robinson, the schoolteacher, said he will be watching gas prices every day now.
Sean Robinson, a 54-year-old schoolteacher in the US capital Washington, did not realize how high gas prices had gotten until he arrived at the pump on Friday.
"That is a sizeable jump," he told AFP, pointing to a neon sign showing $3.27 for a gallon of regular gasoline. 
Robinson is among US consumers feeling the sting of a cost surge sparked by the US-Israel war on Iran, which sent oil prices soaring as Tehran effectively blocked the Strait of Hormuz after being attacked.
But the price hike comes at a politically sensitive time for President Donald Trump as midterm elections approach, hitting voters hard.
Expensive gasoline could also prompt the independent central bank to put the brakes on the world's largest economy as it battles stubborn inflation.
Since last week, US average domestic fuel prices have risen 11 percent, according to the AAA's fuel price gauge.
It is the kind of move that Robinson said will have him cutting down on all but the essentials.
"It just determines what I'm going to do on a day-to-day basis," he said. "Pretty much start thinking about (watching) Netflix, staying in the house instead of burning gas."
Others at the gas station agreed.
"It impacts all areas of life," said Toloria Washington, 39. "We are in a state of survival mode."

'It's the basics'

Washington, who works in finance, said fuel expenses are non-negotiable for her. With prices rising at the pump, she had to make cuts elsewhere.
That, she said, is a problem for people already battered by years of high prices post-pandemic.
"That's the key thing, it's tapping into everybody's basics," she added. "It's the basics. Daily survival of food, water, housing."
US inflation hit a peak of 9.1 percent during the pandemic. While it has cooled since then, analysts warn of risks of another pick-up.
"Inflation showed signs of accelerating prior to the jump in energy prices," said KPMG chief economist Diane Swonk.
"That has left consumers in a sour mood," she added.
Swonk warned that rising fuel prices added "insult to injury" for low-income Americans, who are already seeing higher healthcare costs and a tightening of welfare benefits under Trump.
Trump, who has bragged about oil prices falling during his term, sought to address the political fallout on Friday, telling CNN he expected prices to come down quickly.
His Republican party holds only a slim majority in both the House and Senate.
With midterm elections due in November, he will be hoping that voters do not let tightening household budgets weaken his political position.

Fed's 'dueling mandate'

Trump could see further complications if inflation from gasoline price hikes pushes the Fed to respond by keeping interest rates at a higher level.
The central bank has a dual mandate of maintaining stable prices and maximum employment, but has one main tool to do so -- adjusting interest rates.
Raising them generally cools economic activity and reduces inflation while lowering them can spur activity, boosting the weakening employment market.
The prospect of more inflation due to oil prices raises the specter of what some analysts call a nightmare scenario.
"This could not come at a worse time for the Federal Reserve," said KPMG's Swonk. "It now has a dueling mandate with the risk that inflation not only lingers but accelerates."
Fed policymakers remain cautious.
Addressing higher domestic energy prices on Friday, Federal Reserve governor Christopher Waller told Bloomberg TV he considered them "unlikely to cause sustained inflation."
But this is scant consolation for many Americans hit by even a temporary bout of price increases.
"One thing after another, it's chaos, you know, every day," said Lucas Tamaren, 32, at a gas pump in Los Angeles.
"Living in America feels unpredictable and chaotic and it's hard."
Robinson, the schoolteacher, said he will be watching gas prices every day now. He expects price pressures will be reflected at the voting booth in November.
"The more you pay higher gas, higher groceries (costs)," he said, voters will "start to see" that the middle class is shrinking.
aha-myl-sl/bys/sla

politics

Venezuela inflation hit 475% in 2025, the world's highest level

BY BRIAN CONTRERAS

  • Washington eventually deposed the authoritarian socialist leader on January 3 in a US special forces' raid on Caracas and has since eased sanctions.
  • Venezuelan inflation soared to 475 percent in 2025, the highest in the world, driven by a tightening of US sanctions in the lead up to the ouster of leader Nicolas Maduro.
  • Washington eventually deposed the authoritarian socialist leader on January 3 in a US special forces' raid on Caracas and has since eased sanctions.
Venezuelan inflation soared to 475 percent in 2025, the highest in the world, driven by a tightening of US sanctions in the lead up to the ouster of leader Nicolas Maduro.
Full-year inflation far exceeded the International Monetary Fund's forecast of 269.9 percent, figures released by the central bank showed Friday.
Accumulated inflation for the first two months of 2026 stood at nearly 52 percent, the bank, which had not released inflation figures in over a year, said.
It did not issue a forecast for the remainder of 2026.
Venezuela's economy was hammered last year by President Donald Trump's campaign of maximum pressure on longtime foe Maduro.
Washington eventually deposed the authoritarian socialist leader on January 3 in a US special forces' raid on Caracas and has since eased sanctions.
Washington and Caracas have vowed to resume full diplomatic ties and jointly develop the country's vast oil and mineral reserves as part of a lightning-fast thaw after years of emnity.
But many Venezuelans say they have yet to see the results on exorbitant prices for basic goods like food and medicine.
"I have to hop from one supermarket to another. It shouldn't be like this," Alix Aponte, a 58-year-old accountant, told AFP as she shopped for vegetables in Caracas on Friday, calling for salary increases.
Average incomes range between $100 and $300 per month, far below what Venezuelans need to meet their basic food needs, economists say.
Food and drink prices alone rose by 532 percent last year, while rent increased by 340 percent and healthcare by 445 percent, the central bank said.
"This inflation is killing us," said Eduardo Sanchez, a leader of the teachers' union, blaming poor economic policies.
Before Maduro's ouster, economists had warned of a return of hyperinflation -- monthly price hikes of 50 percent or more that caused economic chaos between 2017 and 2021.
Memories are still acute of a record 130,000 percent year-on-year rise in prices recorded in 2018, the peak of the hyperinflationary period, which pushed millions to emigrate.
At the time people waited in line for hours to buy a half kilo of coffee or sugar.
By 2024, the figure had fallen to 48 percent -- a turnaround credited largely to the economic management of Maduro's former deputy Delcy Rodriguez, now the country's acting leader.

Brighter post-Maduro outlook

Rodriguez stabilized the situation by introducing greater fiscal discipline, halting the printing of money, relaxing exchange controls and decriminalizing the use of the dollar, which has become Venezuela's de facto currency.
Rodriguez, who was approved by Washington to replace Maduro, has embarked on an ambitious program of reforms since taking the reins.
She has thrown open the vital oil sector to private investment and is also planning to overhaul the country's mining laws to attract investment in critical minerals.
Tamara Herrera, director of the Sintesis Financiera consulting firm, said she expected inflation to fall to a little over 100 percent this year.
"Going forward, the inflation expectation is toward moderation," economist Jesus Palacios said.
bc/cb/ksb

Global Edition

Oil prices surge as Mideast war rages, stocks fall on US jobs

  • The international benchmark oil contract, Brent North Sea crude, surged to $92.69 per barrel, up 8.5 percent for the day and nearly 30 percent for the week after US President Donald Trump said only the "unconditional surrender" of Iran would end the Middle East war. 
  • Crude prices surged Friday on mounting fears about oil supply disruption during the Middle East war, while equities retreated on poor US hiring data.
  • The international benchmark oil contract, Brent North Sea crude, surged to $92.69 per barrel, up 8.5 percent for the day and nearly 30 percent for the week after US President Donald Trump said only the "unconditional surrender" of Iran would end the Middle East war. 
Crude prices surged Friday on mounting fears about oil supply disruption during the Middle East war, while equities retreated on poor US hiring data.
The US-Israel war on Iran and Tehran's retaliatory attacks across the Gulf region have upended the world's energy and transport sectors, virtually halting traffic through the Strait of Hormuz.
The international benchmark oil contract, Brent North Sea crude, surged to $92.69 per barrel, up 8.5 percent for the day and nearly 30 percent for the week after US President Donald Trump said only the "unconditional surrender" of Iran would end the Middle East war. 
The main US contract, West Texas Intermediate, soared more than 12 percent to over $90 per barrel, topping off the biggest weekly gain on record.
Maritime traffic has all but dried up through the Strait of Hormuz, through which a fifth of the world's crude oil and liquefied natural gas supplies run.
Market reaction to the conflict had been tempered by hopes that it would be short, but Trump's demand for Iran's capitulation increases the prospect of a long conflict.
Trump's comments "dashed hopes that the conflict will be averted quickly, and the oil price has continued its push" higher, said XTB research director Kathleen Brooks.
The prospect of high energy prices for a sustained period has fanned fears of a fresh spike in inflation that could hit the global economy while curbing the ability of central banks to cut interest rates to prop up growth.
"The longer that key energy infrastructure and shipping routes in the region are affected, the greater the chance of a significant inflationary impact," said AJ Bell investment director Russ Mould.
Attacks on oilfields were reported in southern Iraq and in the northern autonomous Kurdistan region, which forced a US-run oilfield to cease production. Kuwait has also begun cutting production due to a lack of storage capacity, the Wall Street Journal reported.
Earlier this week, Trump pledged to protect ships through the Strait of Hormuz, but shipping companies have exercised caution in the region.
Trump's pledge helped "reduce some of the risk premium in oil markets," but will have "limited impact unless Iran's extensive disruption capabilities are first neutralized," said a note from analysts at JPMorgan Chase. 
Meanwhile, data showed the US economy had unexpectedly lost jobs in February, while unemployment also edged up.
The world's biggest economy shed 92,000 jobs last month, down from revised job growth of 126,000 in January, said the Labor Department.
New data released Friday also showed US retail sales had fallen by 0.2 percent in January.
Investors often look at data showing a slowdown in the economy as raising the chances of the US Federal Reserve lowering interest rates, but analysts say higher oil prices complicate that picture.
Until recently, the markets were anticipating the Fed would resume interest rate cuts in June, but that has now shifted to September.
Wall Street's main indices finished down around one percent or more.
Europe's main markets finished the day with losses of around one percent.
An exception to Friday's sell-off was Boeing, which piled on 4.1 percent following a Bloomberg report that said the company was close to a big sales agreement with Chinese carriers.

Key figures at around 0410 GMT

Brent North Sea Crude: UP 8.5 percent at $92.69 per barrel
West Texas Intermediate: UP 12.2 percent at $90.90 per barrel
New York - Dow: DOWN 1.3 percent at 47,501.55 (close)
New York - S&P 500: DOWN 1.3 percent at 6,740.02 (close)
New York - Nasdaq Composite: DOWN 1.6 percent at 22,387.68 (close)
London - FTSE 100: DOWN 1.2 percent at 10,284.75 (close)
Paris - CAC 40: DOWN 0.7 percent at 7,993.49 (close)
Frankfurt - DAX: DOWN 0.9 percent at 23,591.03 (close)
Seoul - Kospi: FLAT at 5,584.87 (close)
Tokyo - Nikkei 225: UP 0.6 percent at 55,620.84 (close)
Hong Kong - Hang Seng Index: UP 1.7 percent at 25,757.29 (close)
Shanghai - Composite: UP 0.4 percent at 4,124.19 (close)
Euro/dollar: DOWN at $1.1604 from $1.1609 on Thursday
Pound/dollar: UP at $1.3385 from $1.3357
Dollar/yen: UP at 157.88 yen from 157.59 yen
Euro/pound: DOWN at 86.67 pence from 87.00 pence
burs-jmb/bjt/fox

technology

Anthropic vows court fight in Pentagon row

  • Amodei said the Department of War -- the name preferred by the Trump administration for the Department of Defense -- confirmed in a letter that Anthropic and its products, including its widely-used Claude AI model, have been deemed a supply chain risk.
  • Anthropic chief executive Dario Amodei has said the company has "no choice" but to challenge in court the Pentagon's formal designation of the artificial intelligence firm as a risk to US national security.
  • Amodei said the Department of War -- the name preferred by the Trump administration for the Department of Defense -- confirmed in a letter that Anthropic and its products, including its widely-used Claude AI model, have been deemed a supply chain risk.
Anthropic chief executive Dario Amodei has said the company has "no choice" but to challenge in court the Pentagon's formal designation of the artificial intelligence firm as a risk to US national security.
The CEO, writing in a blog post on Thursday, insisted however that the ruling's practical scope is narrower than initially suggested, signaling that the designation would not have a catastrophic effect on the company.
Amodei said the Department of War -- the name preferred by the Trump administration for the Department of Defense -- confirmed in a letter that Anthropic and its products, including its widely-used Claude AI model, have been deemed a supply chain risk.
It is the first time a US company has ever been publicly given such a designation, a label typically reserved for organizations from foreign adversary countries, like Chinese tech company Huawei.
Amodei, in his blog post, said the company disputes the legal basis of the action but sought to reassure customers.
"It plainly applies only to the use of Claude by customers as a direct part of contracts with the Department of War, not all use of Claude by customers who have such contracts," he wrote.
The designation will require defense vendors and contractors to certify that they don't use Anthropic's models in their work with the Pentagon.
But Amodei argued that under the relevant statute, the intention is "to protect the government rather than to punish a supplier" and requires the Pentagon to use "the least restrictive means necessary."
Microsoft, one of Anthropic's biggest partners, agreed with that reading, concluding that Anthropic products can remain available to its customers other than the Department of War. 
Google and Amazon Web Services (AWS), the other major cloud giants on which Anthropic's Claude is often delivered to businesses customers, also said they were standing by the company's products except for US military use.

'Sloppy'

The dispute erupted after Anthropic infuriated Pentagon chief Pete Hegseth by insisting its technology should not be used for mass surveillance or fully autonomous weapons systems.
Washington hit back, saying the Pentagon operates within the law and that contracted suppliers cannot dictate terms on how their products are used.
Amodei also used the statement to apologize for an internal company memo leaked to the press this week, in which he told staff the actions against the company were politically motivated.
"The real reasons" the Trump administration "do not like us is that we haven't donated to Trump (while OpenAI/Greg have donated a lot)," Amodei said, referring to Greg Brockman, the president of ChatGPT-maker OpenAI, who has donated $25 million to Trump.
Amodei called the memo an "out-of-date assessment of the current situation," written under duress on a day that saw his company under extreme pressure from the government.
OpenAI initially swooped in to replace Anthropic in its contract with the US military, but that move backfired when senior OpenAI staff expressed discomfort with the deal.
OpenAI CEO Sam Altman later said the deal was "sloppy" and that he was working to revise it.
The standoff with the Pentagon has had some silver lining for Anthropic, which was founded in 2021 by former staffers of OpenAI, with a focus on AI safety.
The conflict has helped propel the Claude app to the top of download rankings on Apple and Google smartphones.
Anthropic also indicated to AFP that the number of paying users of its Claude model had doubled since the beginning of the year and that its app is currently downloaded more than a million times a day.
arp/jgc

US

Only nine commercial ships detected crossing Hormuz Strait since Monday

  • It is one of at least five ships belonging to the Dynacom company that have crossed the strait since the war started last Saturday, all with their transponders switched off, according to the Financial Times.
  • Only nine oil tankers, cargo and container ships, some of which at times concealed their position, have been recorded crossing the Strait of Hormuz since Monday, according to MarineTraffic data analysed by AFP. After three ships were attacked on Sunday, at least three tankers and a vessel carrying gas have crossed this chokepoint, a key shipping lane virtually shut by the war in the Middle East.
  • It is one of at least five ships belonging to the Dynacom company that have crossed the strait since the war started last Saturday, all with their transponders switched off, according to the Financial Times.
Only nine oil tankers, cargo and container ships, some of which at times concealed their position, have been recorded crossing the Strait of Hormuz since Monday, according to MarineTraffic data analysed by AFP.
After three ships were attacked on Sunday, at least three tankers and a vessel carrying gas have crossed this chokepoint, a key shipping lane virtually shut by the war in the Middle East.
Nearly 20 percent of the world's crude oil and about 20 percent of liquefied natural gas (LNG) usually transit through the Strait of Hormuz.
Only vessels that emitted at least one signal on either side of the Strait of Hormuz were counted by AFP, excluding any others that may have travelled with their signals entirely concealed for a long period of time.
Attacks since Sunday have multiplied against ships navigating Hormuz, raising concerns about a lasting impact on the global economy as the US-Israeli war on Iran and Tehran's retaliatory attacks across the Gulf region have upended the world's energy sector.
Iran armed forces spokesman Abolfazl Shekarchi told Iranian state broadcaster Irib, "We emphasize the security of the Strait of Hormuz and control it, but we will not close it."
Despite the conflict, "some tankers are still travelling east and west through the strait, with a number of voyages occurring under AIS (automatic identification system) blackouts," said Matt Wright, an analyst at Kpler, which publishes MarineTraffic, on Wednesday.
One example is the tanker Kavomaleas, which emitted a signal east of the strait on March 3 and then another in the Gulf about 14 hours later.
 

Sanctioned ships

Another example is a 130-metre (427-foot) container ship registered in Panama, which left Pakistan on Monday. Having arrived at the entrance to the Gulf on Wednesday night, it has been inside the strait since Thursday morning.
 The Pushpak, a vessel designed for transporting petroleum products, left the Gulf on Thursday evening, having departed from an Iraqi port.
The Hout, a cargo ship registered in the Comoros, left Dubai on Tuesday bound for a port in southeastern Iran.
The Danuta I, a 225-metre natural gas carrier under US sanctions, crossed the Strait of Hormuz at dawn on Friday.
The Athina, spotted by the Financial Times, was east of the strait on February 28 and transmitted a position to MarineTraffic west of Hormuz on March 1.
It loaded oil in Bahrain before resuming its journey towards the strait but has not transmitted any signal since Thursday afternoon.
It is one of at least five ships belonging to the Dynacom company that have crossed the strait since the war started last Saturday, all with their transponders switched off, according to the Financial Times.
Most carriers have suspended their operations and the passage remains perilous, as demonstrated by the Safeen Prestige, which was hit by projectiles while sailing east from the Gulf on Tuesday, according to the British Maritime Safety Organisation (UKMTO).
lam-vr-jwp-ys/lmc/giv/jhb

US

Middle East war a new shock for financial markets

BY FLORIAN CAZERES

  • This latest crisis follows a number of extraordinary events that markets have had to react to in recent years, from the coronavirus pandemic, the war in Ukraine disrupting energy and food supplies, to Trump's tariff offensive.
  • The outbreak of war in the Middle East has sent shockwaves through financial markets, with energy prices soaring and stocks sliding, just a year after US President Donald Trump's tariff onslaught rattled investors.
  • This latest crisis follows a number of extraordinary events that markets have had to react to in recent years, from the coronavirus pandemic, the war in Ukraine disrupting energy and food supplies, to Trump's tariff offensive.
The outbreak of war in the Middle East has sent shockwaves through financial markets, with energy prices soaring and stocks sliding, just a year after US President Donald Trump's tariff onslaught rattled investors.
"We're in a situation that's not under control and yet, as finance professionals, we have to adapt," ING analyst Vincent Juvyns told AFP.
The US-Israeli war on Iran and Tehran's retaliatory attacks across the Gulf region have nearly choked off shipping through the Strait of Hormuz, through which a fifth of the world's oil and liquefied natural gas supplies transit.
The result has been a surge in European natural gas prices by 66 percent since last week.
Meanwhile, crude oil prices have jumped by more than a quarter, with a barrel of international reference contract Brent crude shooting over $90 on Friday.
That has sparked worries of a surge in inflation and a slowdown in the global economy.
As a consequence, stock prices have slumped, with oil-importing countries particularly hard-hit.
In Europe, London has lost around six percent and Frankfurt and Paris more than seven percent.
In Asia, Tokyo fell 5.5 percent and Seoul 10.6 percent, having suffered a record daily fall of 12 percent on Wednesday.
This latest crisis follows a number of extraordinary events that markets have had to react to in recent years, from the coronavirus pandemic, the war in Ukraine disrupting energy and food supplies, to Trump's tariff offensive.

'One shock after another'

"For more than five years now, it’s been one shock after another," said Stanislas de Bailliencourt, deputy head of investments at asset manager Sycomore.
Volatility has been very high since the beginning of the week, a sign that investors are reacting as new information comes in, with markets capable of shifting direction during the course of the day.
"What it's forced everybody to do is to be hyper vigilant about the news," said Interactive Brokers analyst Steve Sosnick.
"Everybody now is being forced to be an oil trader whether you want to be or not, because that's just how stocks are trading, bonds are trading."
The dollar has been a beneficiary of the turmoil, in part as it is seen as a safe haven.
It had been sliding for months over the uncertainly triggered by Trump's policies, but it gained 2.2 percent against the euro this past week.
But as an oil-exporting country, the United States is not as exposed to a rise in global energy prices.
"We’ve seen capital being repatriated to the United States, which is clearly less dependent on hydrocarbon imports than Europe and the emerging countries," said ING's Juvyns.
Wall Street was considerably less impacted than exchanges in Asia and Europe, with the Dow shedding around three percent this week.
The dollar even bested another traditional safe-haven asset: gold. The precision metal has lost 3.6 percent this past week.

'Resilient global economy'

Sovereign debt is often another safe-haven investment in times of market turmoil, but government bonds haven't benefitted.
When investors pile into government bonds, the interest rates fall as buyers bid for them.
Instead they have risen this past week, with 10-year US Treasuries rising from 4.0 percent to 4.14 percent.
Germany's 10-year bonds, the reference in the eurozone, rose from 2.6 to 2.9 percent.
The reason is that with higher inflation, investors no longer see central banks as cutting interest rates as quickly this year, or at all.
With the hands of central banks tied, investors are worried about the risk of stagflation -- a period of economic stagnation and inflation -- such as what happened after the first oil shock in 1973.
Some investors say the situation is different than in the 1970s.
"The world today is much less dependent on oil than it used to be," said Jean-Francois Robin, an analyst at Natixis CIB.
ING's Juvyns sought to put the crisis in perspective.
"For now, this is clearly a less significant shock than that of tariffs," he said.
After Trump slapped his "Liberation Day" tariffs on trading partners in April 2025, stock markets in the United States and Europe suffered daily losses of up to six percent.
Daily losses were even steeper during the Covid pandemic.
Moreover, stock exchanges were at or near record levels before the war broke out, while oil and gas prices were low.
"The global economy is much more resilient: companies have diversified their supply chains," said Sycomore's de Bailliencourt.
"But if the conflict drags on, we could run into more problems," he added.
bur-fcz/rl/jhb

defense

Swiss eyeing fewer F-35 fighters, reshaping defence set-up

BY ROBIN MILLARD

  • The government is now looking at buying "approximately 30 F-35As", said Pfister.
  • Switzerland announced Friday it wanted to buy 30 US F-35A fighter jets rather than 36 after Washington hiked the price, and said its broader defence set-up needed repurposing to face current threats.
  • The government is now looking at buying "approximately 30 F-35As", said Pfister.
Switzerland announced Friday it wanted to buy 30 US F-35A fighter jets rather than 36 after Washington hiked the price, and said its broader defence set-up needed repurposing to face current threats.
The militarily neutral country also said it was looking at buying a European surface-to-air defence system to go alongside the delayed Patriot system on order from the United States.
Outlining the tense geopolitical situation in Europe, the landlocked nation furthermore said it needed to gear up to face hybrid threats.
The F-35A combat aircraft -- already used by the US Air Force and several European countries -- was chosen by Switzerland in June 2021, over the Airbus Eurofighter, the F/A-18 Super Hornet by Boeing, and French firm Dassault's Rafale.
But Bern and Washington have been quibbling over the final price of the jets, bought to replace the ageing Swiss fleet.
In June last year, Switzerland said the United States wanted Bern to assume additional costs -- cited as high inflation and surging raw material and energy prices.
However, Bern wanted to stick to the agreed price of just over six billion Swiss francs ($7.7 billion) -- an amount that was approved in a 2020 referendum.
Defence Minister Martin Pfister told a press conference Friday that an additional 1.1 billion francs would have been required "for the 36 aircraft initially planned".
The government is now looking at buying "approximately 30 F-35As", said Pfister.
The exact number will depend on contract negotiations between the US government and manufacturers Lockheed Martin.

Hybrid threats

Switzerland's long-standing position has been one of well-armed military neutrality and the European country has mandatory conscription for men.
Bern painted a grim picture of the current security climate.
"The global security situation and Switzerland's geopolitical environment have deteriorated in recent years," the government said.
"The war in Ukraine, increasing hybrid threats, cyberattacks, disinformation and espionage are also having an impact on Switzerland."
But the Alpine country is "not sufficiently equipped to counter the most likely threats," which it said were hybrid warfare and attacks from a distance.
It blamed previous cost-cutting, price increases and long delivery times on the international arms market.

Patriot wait time

Last July, Washington told Bern that the five Patriot units it had on order were being reprioritised and heading to Ukraine.
"According to current knowledge, the delay is four to five years," the government said Friday.
While Switzerland "is sticking to the procurement of Patriot systems due to the importance of the ability to defend against attacks from a distance," it will look for an additional system.
"This reduces dependence on a single supply chain or a single country, and on the other hand, it can be used to better ensure availability," it said.
The government said the Swiss military reckons it needs 31 billion Swiss francs to strengthen the country's defence and security.
"A temporary increase in VAT is intended to make it possible to provide the armed forces... with the financial resources to better protect the population and the country against the most likely threats," it said.
The government is therefore proposing raising the VAT rate by 0.8 percentage points for 10 years, and by creating an "armament fund, which would be financed by the VAT rise and a slice of the army's regular budget".
The government hopes a referendum on plan can be held in mid-2027 so that the temporary VAT increase can take effect in 2028.
apo-rjm/nl/giv

media

Germany's Axel Springer swoops for British newspaper The Telegraph

BY CLEMENT ZAMPA WITH LOUIS VAN BOXEL-WOOLF IN FRANKFURT

  • Britain's government last month launched an investigation into an agreed sale to the owner of the Daily Mail, a rival right-wing publication, citing competition concerns.
  • German media group Axel Springer said Friday it had agreed to buy right-wing British newspaper The Telegraph in a surprise move, as the UK government investigates a rival bid.
  • Britain's government last month launched an investigation into an agreed sale to the owner of the Daily Mail, a rival right-wing publication, citing competition concerns.
German media group Axel Springer said Friday it had agreed to buy right-wing British newspaper The Telegraph in a surprise move, as the UK government investigates a rival bid.
The German group, which already owns tabloid Bild, the Welt broadsheet and Politico news outlet, said in a statement it would pay £575 million ($766 million) in cash for the title, which comprises daily print and online versions.
It follows a drawn-out pursuit of the 170-year-old title.
Britain's government last month launched an investigation into an agreed sale to the owner of the Daily Mail, a rival right-wing publication, citing competition concerns.
The Daily Mail and General Trust (DMGT) had struck a £500-million deal with US-Emirati consortium RedBird IMI in November for the purchase.
However the paper now looks likely to come under German ownership, with Axel Springer vowing to "preserve the integrity of a heritage media brand", while giving it a platform for growth and expansion.
"To be the owner of this institution of quality British journalism is a privilege and a duty," said Axel Springer chief executive Mathias Doepfner.
The group wanted to help the newspaper "become the most read and intellectually inspiring centre-right media outlet in the English-speaking world", he added.
DMGT confirmed that RedBird IMI had agreed to the potential takeover by Axel Springer.
"We wish every success to Axel Springer and the Telegraph," a DMGT spokesperson said, adding that it believed "the organisation would have thrived under our long-term stewardship."
The publisher warned that the "protracted and out-of-date regulatory framework guarantees that UK-based national newspaper groups are at a huge competitive disadvantage in any merger process."
The Telegraph did not immediately respond to AFP's request for comment.

'Unprecedented'

"This is unprecedented in the British press scene," Damian Tambini, a senior media lecturer at the London School of Economics, told AFP. 
"Many people will be breathing a sigh of relief and particularly the (Labour) government" amid the prospect of an enlarged British right-wing media group, he added.
RedBird IMI, a joint venture between US investment firm RedBird Capital and Abu Dhabi's International Media Investments, had struck a deal for the Telegraph Media Group in late 2023.
However, the previous UK government triggered a swift resale given concern about the potential impact on freedom of speech owing to Abu Dhabi's press censorship record.
That government also amended merger laws to bar foreign governments from controlling UK newspapers.
RedBird then pursued the takeover under a revised structure, but abruptly dropped its bid in late 2025.
To further complicate matters, the current government in February issued a Public Interest Intervention Notice in relation to the planned takeover by DMGT.
"We are aware that the amazing journalists and employees at... (The Telegraph) have been operating in an extended period of uncertainty," Doepfner said on Friday. 
"We want to bring that uncertainty to an end as soon as we can."
Axel Springer has announced job cuts in recent years, pointing in part to the role of artificial intelligence in rendering certain roles such as proofreading obsolete. 
bur-vbw-bcp-aks/pdw

US

Leading satellite firm to hold back Gulf state images

  • "All new imagery collected over the Gulf States and adjacent conflict zones (not including Iran) will be subject to a mandatory 96-hour delay before it is made available in our archive," Planet said.
  • Planet Labs PBC, a leading provider of high resolution images taken from space, said Friday it would hold back for 96 hours images of Gulf states targeted by Iranian drone attacks.
  • "All new imagery collected over the Gulf States and adjacent conflict zones (not including Iran) will be subject to a mandatory 96-hour delay before it is made available in our archive," Planet said.
Planet Labs PBC, a leading provider of high resolution images taken from space, said Friday it would hold back for 96 hours images of Gulf states targeted by Iranian drone attacks.
The satellite images produced by the California-based company are normally available almost immediately to its clients, who include AFP, as well as other media, companies, researchers -- and potential enemies of the United States.
Planet said in a message to clients the "temporary" move was part of its "commitment to responsible data practices and the safety of personnel on the ground" since the eruption of the Middle East war.
It did not say if it had acted at the request of US authorities. Images of Iran were not included in the order.
"All new imagery collected over the Gulf States and adjacent conflict zones (not including Iran) will be subject to a mandatory 96-hour delay before it is made available in our archive," Planet said.
"This measure is intended to prevent adversarial actors endangering the safety of allied and NATO-partner personnel and civilians there," it added.
"As the conflict evolves, the area impacted may change."
Planet had earlier imposed a 30-day delay on images taken of the war-stricken Palestinian territory of Gaza.
Vantor, another US supplier that was previously known as Maxar, never released images of the military bases of US forces or their allies.
bur-ico/tw/jj

vote

Iceland proposes August 29 referendum on resuming EU membership talks

  • If the country were to resume membership talks, another referendum would be held after the conclusion of the talks asking Icelanders if they want to join based on the negotiated terms.
  • Iceland's government on Friday proposed that a referendum be held on August 29 on resuming the country's EU membership talks, after they were terminated in 2015.
  • If the country were to resume membership talks, another referendum would be held after the conclusion of the talks asking Icelanders if they want to join based on the negotiated terms.
Iceland's government on Friday proposed that a referendum be held on August 29 on resuming the country's EU membership talks, after they were terminated in 2015.
The North Atlantic island submitted an EU membership application in 2009, a year after the stunning collapse of its financial sector.
Negotiations began in 2010 but were suspended three years later following parliamentary elections, and in 2015 the then-government announced the talks were terminated.
Foreign Minister Thorgerdur Katrin Gunnarsdottir told reporters she would present the proposal to parliament early next week. It remained unclear on Friday whether the government had a majority for its resolution.
"We intend to ask the nation the following question: 'Should negotiations on Iceland's accession to the European Union continue?' And then the nation can answer with two options: 'Yes, negotiations should continue', or 'No, they should not continue'," she said.
An opinion poll published in early February by public broadcaster RUV found the Icelandic public was evenly divided on joining the EU, which currently has 27 members.
The three parties of the ruling centre-left coalition had agreed in their government platform to hold a vote on the issue by the end of 2027.
Prime Minister Kristrun Frostadottir said Iceland was in a position of strength, making it the right time to put the question to the Icelandic people.
"Iceland is strong economically, but also in terms of national self-confidence, and thus able to make this decision," she said.
If the country were to resume membership talks, another referendum would be held after the conclusion of the talks asking Icelanders if they want to join based on the negotiated terms.

World 'has changed'

When Iceland's accession negotiations were paused, 27 of 33 chapters had been opened, and 11 had been concluded, according to the government.
The unopened chapters included one on fisheries, expected to be the thorniest as Iceland is intent on retaining control over its resources.
The foreign minister said if negotiations were to resume, she wanted to go straight to the difficult chapters.
"I will never sign an agreement -- never sign an agreement -- that entails ceding Iceland's control over its resources, such as our fishing resources. I want that to be absolutely clear," she said.
Iceland's objectives with EU membership include ensuring control over its resources, strengthening its defences and ensuring stability and economic and other forms of security, she said.
Frostadottir said the world had changed since Iceland last engaged in EU membership talks. The country would be "entering negotiations from a different position", she said.
"The emphasis on the North Atlantic and the Arctic, on cooperation among these countries, has been transformed," she said.
US President Donald Trump's push to take over Greenland has sparked concern in neighbouring Iceland. Its defence is currently provided by the United States and NATO, as it has no military of its own.
"All of us engaged in international cooperation can sense that awareness of Iceland's uniqueness, and of its strong position and interests... has changed dramatically," the prime minister said.
Olafur Thordur Hardarson, political science professor at the University of Iceland, agreed with the government's assessment that Iceland was in a stronger negotiating position now than in 2009.
"Recent developments in the world order -- especially the rift between Europe and the US -- are likely to make EU leaders more positive towards a deal beneficial to Iceland, especially on natural resources such as fisheries and energy," he told AFP.
However, it was "impossible to predict" how Icelanders would vote on resuming membership talks, or in a later membership referendum, he said.
EU enlargement chief Marta Kos said Iceland was set for a "significant decision".
"In a world of competing spheres of influence, EU membership offers an anchor into a bloc grounded in values, prosperity and security," she said in a statement sent to AFP.
The foreign minister expressed "serious concerns" that Russia might try to influence a future referendum.
po-ef/jhb

indicator

US sheds jobs in February in warning sign for Trump's economy

BY BEIYI SEOW

  • The trend, if it persists, is set to strain Trump's attempts to ease worries about affordability ahead of November midterm elections.
  • The United States unexpectedly lost jobs in February while unemployment edged up, government data showed Friday, piling pressure on President Donald Trump's economic agenda as key midterm elections approach.
  • The trend, if it persists, is set to strain Trump's attempts to ease worries about affordability ahead of November midterm elections.
The United States unexpectedly lost jobs in February while unemployment edged up, government data showed Friday, piling pressure on President Donald Trump's economic agenda as key midterm elections approach.
The world's biggest economy shed 92,000 jobs last month, in a sharp reversal from the job growth of 126,000 in January, said the Labor Department.
The unemployment rate, meanwhile, crept up to 4.4 percent from 4.3 percent.
White House economic adviser Kevin Hassett insisted Friday that the US economy remained "really strong," telling CNBC that observers should consider the average job growth over a few months instead of focusing on monthly fluctuations.
But Chuck Schumer, who leads the Senate's Democratic minority, swiftly criticized the report as a "blaring alarm" that Trump's economy was "deteriorating rapidly."
"Tariffs are increasing costs, gas prices are spiking, and jobs are evaporating," Schumer said.
Fueling the overall plunge in February was a fall in health care employment due to strike activity, said the Labor Department.
But data showed that other sectors were also struggling.
Construction lost 11,000 jobs while manufacturing shed 12,000 roles.
Transportation and warehousing slumped as well, while employment in leisure and hospitality tumbled by 27,000 jobs from January.
The federal government continued losing jobs too.
The trend, if it persists, is set to strain Trump's attempts to ease worries about affordability ahead of November midterm elections.
GDP growth may be holding up, but policymakers have flagged a divergence where wealthier households are doing well but medium- and lower-income families are struggling.

Risks ahead

Economists widely expected a sharp slowdown in job growth this month, although not an outright decline.
"The idea the labor market has turned a corner implodes with this report," said economist Samuel Tombs of Pantheon Macroeconomics.
He expects "elevated federal policy uncertainty, still high borrowing costs for small businesses" and a hit to disposable incomes from an oil prices surge following war in the Middle East to "limit employment growth" moving forward.
Nationwide chief economist Kathy Bostjancic said the report was a weaker showing than the "muted gains" expected even when inclement weather and a recent nurses' strike were factored in.
Investors have largely focused on inflation risks from the war since US-Israeli strikes that began a week ago triggered Iranian retaliation.
But "the last look at the labor market ahead of the start of the conflict suggests the labor market was not as strong" as in January, Bostjancic said.
The longer the war continues, the more "negative feedback" could emerge, she cautioned.

 'Alarm bells'

Navy Federal Credit Union chief economist Heather Long added that "the unemployment rate ticked up for the wrong reasons" in February, with more people becoming unemployed.
She said: "This is backsliding and will raise alarm bells at the Federal Reserve."
Although one month's figures do not make a trend, the numbers add to worries about the employment market, which previously helped to prop up household spending.
Already, the Fed cut interest rates thrice last year as the jobs market weakened, before pausing in January to assess the situation.
February's figures could bolster the case for the central bank to resume cuts to shore up the economy, rather than keeping them higher to tackle persistent inflation.
But Long believes that the Fed is about to face conflicting pressures from "a hurting labor market and 'warflation' coming from the war in Iran as energy and food prices rise."
For now, employers appeared "far more restrained in their hiring plans as the month began," said Ger  Doyle, regional president for North America at ManpowerGroup.
He said the overall picture shows a "cautious" labor market where employers are adding roles where they must -- but waiting for clearer economic signals before broadening their hiring plans.
bys/msp

US

Securing shipping lane from Mideast war 'challenging', say experts

BY FABIEN ZAMORA

  • France, Greece and Italy have said they are sending war ships to the eastern Mediterranean, where the Suez Canal provides passage to the Red Sea and beyond to the Gulf.
  • The United States and France have promised to secure oil shipping threatened by the Middle East war, but experts warn warship availability and Iran's wide range of weaponry could make this complicated.
  • France, Greece and Italy have said they are sending war ships to the eastern Mediterranean, where the Suez Canal provides passage to the Red Sea and beyond to the Gulf.
The United States and France have promised to secure oil shipping threatened by the Middle East war, but experts warn warship availability and Iran's wide range of weaponry could make this complicated.
US-Israeli attacks on Iran since Saturday and Iran's fiery response have caused global economic turmoil as shipping avoids the Strait of Hormuz near Iran, one of the world's most vital shipping lanes.
Around a fifth of the world's crude and liquefied natural gas from the Gulf, must pass through this chokepoint.
While Iran has not officially shut off the Strait of Hormuz, shipping through the waterway has all but dried up.
President Donald Trump said Tuesday the US Navy was ready to escort oil tankers through the crucial Gulf shipping route to ensure the "FREE FLOW of ENERGY to the WORLD".
France's President Emmanuel Macron said earlier the same day France was building a coalition "to pool the necessary resources, including military ones, so that traffic can be restored and secured" in the Strait of Hormuz, Suez Canal and Red Sea.
But, said analyst Dirk Siebels from consultancy firm Risk Intelligence, "the practical realities of this potential operation would be very challenging".

'Military assets are busy'

Kais Makhlouf, also from Risk Intelligence, signalled one major obstacle.
"Military assets are busy right now doing military stuff", limiting the number that might be free to escort oil and LNG tankers, he said.
US-Israeli air strikes have pounded Iran, while a US submarine this week torpedoed an Iranian warship off the coast of Sri Lanka, killing at least 86 crew members.
A European military source, speaking on condition of anonymity, said Iran still posed a threat to shipping.
It could deploy missiles, air or underwater drones, or midget submarines, or even scatter floating or magnetic mines, which are detonated by the proximity of a ship.
Western nations seeking to secure the route for maritime traffic could consider frigate patrols or escorts for a particular ship -- possibly with extra air cover.
"But if the strait was mined, this would require minehunters preceding convoys, or establishing safe corridors before commercial vessels could transit," they said.
Excluding any possible mining, the scenario would be similar to that in the Red Sea, where US and European navies have been protecting ships from attacks by the Iran-backed Yemeni rebels.

A European alliance?

Several sources said that any coalition in the Hormuz Strait could look like the EU operation that has since February 2024 been working with the Yemeni navy in the Red Sea.
French Foreign Minister Jean-Noel Barrot said that the idea was to secure the Hormuz Strait in that "same spirit" at the European Union's Operation ASPIDES naval task force.
Wary of getting directly involved in the US-Israeli war with Iran, European countries are nevertheless being drawn in following attacks on Cyprus and Western allies in the Gulf.
France, Greece and Italy have said they are sending war ships to the eastern Mediterranean, where the Suez Canal provides passage to the Red Sea and beyond to the Gulf.
A French diplomatic source, wishing to remain anonymous, said talks were ongoing to reinforce the EU ASPIDES operation.
"As for Hormuz, we need to see how things develop," the source added.
"The gradual build-up of the European naval presence in the eastern Mediterranean will eventually prove useful if and when conditions are met to move into the Strait of Hormuz," they said.
Alessio Patalano, a professor at King's College London, said working together was key.
For the Europeans, "it is essential to act as a coalition, because very few European navies have the capabilities required to confront these threats like the British, French or Italian," he said.
fz/ah/ekf/rl

retail

US retail sales decline as consumer pullback deepens

  • "We do not read too much into the decline in retail sales in January, which was clearly affected by the severe winter weather across much of the country," said Michael Pearce, chief US economist at Oxford Economics.
  • US retail sales declined by 0.2 percent in January, according to delayed government data released on Friday, missing some analysts' expectations amid persistent concerns that consumption in the world's biggest economy is slowing.
  • "We do not read too much into the decline in retail sales in January, which was clearly affected by the severe winter weather across much of the country," said Michael Pearce, chief US economist at Oxford Economics.
US retail sales declined by 0.2 percent in January, according to delayed government data released on Friday, missing some analysts' expectations amid persistent concerns that consumption in the world's biggest economy is slowing.
Overall sales fell on a month-on-month basis to $733.5 billion, but were up 3.2 percent from a year ago, US Commerce Department data showed.
The month-on-month figure was a degradation from December's flat growth.
Analysts had been downbeat in their expectations, with Briefing.com forecasting 0.1 percent growth. Economists surveyed by Dow Jones Newswires and the Wall Street Journal had expected the performance to be even worse, predicting a drop of 0.4 percent.
The data showed a month-on-month decline in spending across a range of sectors, most notably in health and personal care stores (3.0 percent), fuel pumps (2.9 percent) and clothing (1.7 percent).
Auto sales were another notable decline, dropping by 0.9 percent.
Analysts, however, did not appear overly alarmed at the figures, saying depressed consumer activity due to severe weather across the country had been a factor.
"We do not read too much into the decline in retail sales in January, which was clearly affected by the severe winter weather across much of the country," said Michael Pearce, chief US economist at Oxford Economics.
Pearce pointed to a drop in brick-and-mortar spending that was partially offset by an increase of 1.9 percent in sales at nonstore retailers, which include online outlets.
Rising fuel prices due to the US-Israel war on Iran, however, were a concern going forward, with average US gasoline prices increasing about 11 percent in the last week, according to the AAA gas prices gauge on Friday.
Pearce warned rising fuel prices "could add as much as 0.3 (percentage points) to inflation this year, eating into real incomes and spending on other goods and services."
The US economy got more worrying economic data on Friday, with an unexpected drop in jobs in February and unemployment edging up.
Nationwide Senior Economist Ben Ayers, however, expected spending to pick up in February.
"We expect larger tax refunds and fiscal stimulus to boost spending activity in coming months with winter storms now in the rearview mirror across most of the country," he said.
US President Donald Trump's expansive "One Big Beautiful Bill" extended tax breaks from his first term, with analysts expecting increased tax refunds -- mostly for middle and high-income earners -- this year. 
aha/msp

Israel

War in Middle East raises stagflation fears in Europe and beyond

BY SOPHIE LAUBIE

  • - Different parts of the world will likely feel the effects of the Middle East crisis more acutely.
  • Global energy prices have shot upwards after the US and Israel unleashed war in the Middle East, but just how far those shocks will ripple across the economy remains unclear.
  • - Different parts of the world will likely feel the effects of the Middle East crisis more acutely.
Global energy prices have shot upwards after the US and Israel unleashed war in the Middle East, but just how far those shocks will ripple across the economy remains unclear.
Still, the spectre of "stagflation" -- high inflation coupled with stagnant economic growth -- once again looms over the global economy in the event of a prolonged conflict.

What is the global risk of inflation?

The risks are still highly uncertain at this stage, as they largely depend on how long conflict lasts.
"It is still too soon to determine whether the current crisis will translate into sustained global inflation," said economist Paola Subacchi of the University of Bologna and Sciences Po in Paris.
"Much depends on how far and how long oil and gas prices rise, and whether those increases feed through broadly into production and transport costs," she added.
Bank of America economists wrote that their baseline scenario was a shorter conflict, which would limit how much further oil prices might rise and see "the shock fading in the next few weeks".
Paul Chollet, chief economist at the French banking group Credit Mutuel Arkea, said a short conflict -- such as a four- or five-week war, as US President Donald Trump has suggested -- would mean that "prices, particularly energy prices, will return to their pre-bombing levels within two months".
"That doesn't mean that you won't see inflation in the short term," he added, noting that price increases are already evident for fuels such as petrol.
But "if the conflict drags on," Chollet added, then "we could see stagflation" in Europe.
That risk would rise "if production facilities" such as oil and gas installations in the Middle East "were permanently damaged" in the fighting.
"Overall, I am concerned about low-income countries, countries with high level of debt, in this environment," International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Thursday in Bangkok. "It will become so much harder for them."

Echoes of Russia's 2022 invasion of Ukraine?

For now, at least, most economists do not see strong parallels to 2022, when Russia's full-scale invasion of Ukraine sent gas prices surging, plunged much of Europe into an energy crisis and spiked inflation.
"2026 is not 2022," said the governor of the Bank of France, Francois Villeroy de Galhau.
"It is difficult to make direct comparisons," Subacchi said. "However, while Ukraine mainly affected Europe, a Middle East crisis could affect both Europe and Asia."
Within Europe, however, the risks are not nearly as concentrated as in 2022, when Russia oil and gas imports were a dominant source of energy in many markets.
"What made us very vulnerable in 2022 was our dependence on Russia," Chollet said. Today, much of the continent has "diversified our supply sources", he added.
Chollet also noted that energy price increases had been more modest at this stage, with the benchmark Brent crude oil price at around $90 per barrel compared to nearly $140 in 2022.
For natural gas, Dutch TTF futures contract -- the main European benchmark -- have increased notably to around 50 euros ($58) per megawatt-hour, compared to around 30 euros last week.
But prices are still much lower than in 2022, Chollet said, when "they reached as high as 340 euros per megawatt-hour".

Which economies are most vulnerable?

Different parts of the world will likely feel the effects of the Middle East crisis more acutely.
"When it comes to oil shocks, the US is more sensitive on inflation while Europe is more sensitive on growth. However, the sharp rise in European natural gas prices does increase its exposure," wrote Luke Templeman, a Deutsche Bank analyst.
Subacchi said that the countries most vulnerable to inflation "are those heavily dependent on oil and gas imports from the Middle East, particularly in Europe and Asia".
"The United States," she added, "is relatively shielded thanks to strong domestic energy production and the strength of the dollar".
slb-hh/bst/jj

US

Soaring gas prices spark renewed debate about European electricity

BY ADRIEN DE CALAN

  • The Middle East war "brutally reminds us of our vulnerability to the volatility of fossil fuel markets" and reinforce the need to speed up electrification of the economy, said France's ecological transition minister Monique Barbut.
  • A surge in natural gas prices since the Middle East war erupted has sparked renewed debate about Europe's electricity market, where prices are still linked to gas.
  • The Middle East war "brutally reminds us of our vulnerability to the volatility of fossil fuel markets" and reinforce the need to speed up electrification of the economy, said France's ecological transition minister Monique Barbut.
A surge in natural gas prices since the Middle East war erupted has sparked renewed debate about Europe's electricity market, where prices are still linked to gas.
Industrial firms and countries like Italy are already calling for reform ahead of an EU summit on competitiveness on March 19.
The effective closure of the Strait of Hormuz as the United States and Israel pound Iran with air strikes and Tehran's retaliatory strikes on Gulf states have again highlighted Europe's dependence on imported energy.
European industry has long been crying out for lower electricity prices to help them meet competition from Asia and North America. 
The impact of the war on fossil fuel prices "confirms the need to support the electrification of industrial processes even more," the Uniden trade association which represents France’s energy-intensive industrial companies said this week.
The European Union has sought to reduce dependence on imported oil and gas and should present a plan in May to speed up a shift to electricity. 
France also aims to present a plan in the coming months to support electric cars, heat pumps and electric furnaces in industry. 
The Middle East war "brutally reminds us of our vulnerability to the volatility of fossil fuel markets" and reinforce the need to speed up electrification of the economy, said France's ecological transition minister Monique Barbut.
Except that "in Europe, the price of electricity is still largely determined by that of gas," noted Marc Sanchez, head of the SDI trade association that represents small and medium-sized businesses in France.
In Europe the price of electricity is determined by the production costs of the last power plant called upon to meet demand.
That can be cheaper renewable or nuclear plants when demand is low. But gas power stations can be brought online and shut down quickly, thus making them very useful to meet peak demand for electricity.
"This system can lead to higher electricity prices, including in countries like France, where a large share of production is based on decarbonized, competitive sources," said the SDI.
- Dependence upon imported gas- 
After getting burned by a spike in gas prices following Russia's 2022 invasion of Ukraine, the European Union adopted a reform in 2024 following heated debate between industry, governments and political parties.
One objective was to protect the electricity market from the volatility of fossil fuel prices. 
Current electricity costs are far from the dizzying prices reached in 2022.
Gas price rises have been limited. Equally important, many French nuclear power plants were undergoing repairs in 2022, boosting the need for gas-fired power plants.
Today, "nuclear power is running well" and "cushioning exposure to gas," said Emeric de Vigan, an energy market expert, in comments published on his LinkedIn account.
Nevertheless, "the surge in gas prices has had an impact on French electricity" prices, said Jean-Paul Aghetti, head of Exeltium, a consortium which buys electricity for large French industrial consumers, told AFP.
And electricity prices depend more heavily upon gas in Germany, Italy and Austria than in France, Spain or Portugal, which all rely more upon renewables and nuclear.
Even if EU nations invest heavily in low-cost renewable electricity generation it won't eliminate the need for peak production capacity.
The European Steel Association noted that industrial customers often still paid electricity prices linked to gas prices, and called for a new reform.
"Structurally higher wholesale prices, caused by the EU dependency on expensive, imported gas, combined with significant volatility, are producing negative effects that cannot be ignored," is said.
Not all EU countries want another reform.
Seven countries including Denmark, Luxembourg, the Netherlands, Portugal and Sweden have urged the European Commission to leave the current system alone.
They believe Europe's dependence upon imported gas is the reason why energy costs are higher than in other regions of the world, not the structure of the electricity market.
Even before the outbreak of the war, several federations representing energy-intensive industries had argued that ensuring competitive energy prices was key to Europe's reindustrialisation.
"Electrification can only be deployed on a large scale if electricity is affordable and predictable," said Nicola Rega, head of climate change and energy at Cefic, the trade association for the EU chemical industry.
cda-adc-nal/rl/tw

Israel

Iran drone strike on Azerbaijan raises fears of Mideast war spreading to Caucasus

BY EMIL GULIYEV

  • The drone strikes have fuelled concerns that the war could spill into the strategically sensitive South Caucasus, some analysts said.
  • Iranian drone strikes on Azerbaijan have raised fears that the Middle East war could spill into the Caucasus, as Baku, an ally of Israel, vows to respond.
  • The drone strikes have fuelled concerns that the war could spill into the strategically sensitive South Caucasus, some analysts said.
Iranian drone strikes on Azerbaijan have raised fears that the Middle East war could spill into the Caucasus, as Baku, an ally of Israel, vows to respond.
Azerbaijan announced on Friday it was withdrawing diplomatic staff from Iran, a day after drones launched from Iranian territory targeted an airport and exploded near a school in the country's Nakhichevan exclave, bordering Iran.
Four people were wounded.
President Ilham Aliyev accused Tehran of carrying out a "terrorist act" and ordered the armed forces to prepare retaliatory measures, placing them on the highest level of mobilisation.
Iran denied responsibility and blamed Israel -- Azerbaijan's close ally and arms supplier -- of staging a provocation aimed at disrupting relations between Muslim countries.
Tehran has long accused Israel of using Azerbaijani territory for intelligence operations and potential attacks.
The drone strikes have fuelled concerns that the war could spill into the strategically sensitive South Caucasus, some analysts said.
"The risk of the war spreading to the Caucasus is not small," Armenian analyst Hakob Badalyan said. 
"Much will depend on the risks Baku and its ally Ankara are willing to take in responding to the attack."

'Unclear chain of command'

The attack has also raised questions about who is calling the shots in Iran and the unpredictability of its military command structure.
"The chain of command within Iran's armed forces is unclear," said Farhad Mammadov, head of the Baku-based South Caucasus Studies Center.
The country has a dual structure, whereby Iran's defence ministry and general staff operate alongside the powerful Islamic Revolutionary Guard Corps (IRGC).
"This creates a high degree of unpredictability," Mammadov added.
He expected Azerbaijan's response would be defensive and said he believed it had no plans to launch ground operations against Iran.
"The possibility of escalation will depend on the actions of the Iranian side," he added.
Azerbaijani lawmaker Rasim Musabekov has also said the incident reflects confusion inside Iran's leadership following the killing of Supreme Leader Ali Khamenei in an Israeli-US strike.
"At the moment we are seeing spasmodic actions by the Iranian authorities, firing missiles indiscriminately," he said.
"If they claim the drone directed at Azerbaijani territory was sent by Israel or Israeli spies, then the Iranian authorities should admit they do not control their own territory."

'Drown in blood'

Analysts brushed off the chance the strike was a case of accidential targeting or some drones gone wayward.
Farid Shafiyev, head of Azerbaijan's Center of Analysis of International Relations, said evidence suggested the drones were launched intentionally by Iranian forces.
"The only question is at what level the decision was taken -- in Tehran or at a lower command level," he said.
According to social media accounts unofficially linked to the IRGC, the decision may have been taken by the Guard Corps leadership itself, he added.
"This is not accidental. Iran is targeting everyone," Shafiyev said.
The IRGC has long viewed Azerbaijan with hostility.
"The IRGC portrays Iran as a fortress besieged by enemies and Thursday's attack was a symbolic demonstration that it considers Azerbaijan one of them," analyst Gela Vasadze of the Georgian Strategic Analysis Centre said. 
"For the sake of its survival, the Iranian regime appears ready to drown the country and the entire region in blood."

Strategic stakes

There are also worries about the vulnerability of strategic energy infrastructure linking the Caucasus to global energy markets.
Azerbaijan's Baku–Tbilisi–Ceyhan oil pipeline, which runs through neighbouring Georgia and Turkey and carries around a third of Israel's oil imports, could become a potential Iranian target.
"The pipeline's above-ground facilities, such as terminals and pumping stations, could be vulnerable to drone strikes," said Ilham Shaban, head of the Baku-based Centre for Oil Research.
Iran has long accused Israel -- a key arms supplier to Baku -- of using Azerbaijani territory for intelligence operations and potential attacks.
In June 2025, Baku reassured Tehran it would not allow its territory to be used for strikes on Iran after Israel launched a large-scale attack on Iranian targets.
Tehran has also historically been wary of separatist sentiment among the around 10 million ethnic Azeris living in Iran.
For now, analysts say Baku is biding its time.
"Azerbaijan does not wish to enter into an armed conflict with Iran," Musabekov said. 
"But it must be prepared for any scenarios."
eg-mkh-im/jc/gil

Lufthansa

Mideast war is heightening uncertainty, Lufthansa warns

BY SAM REEVES

  • "The war in the Middle East proves once again how exposed air traffic is and how vulnerable it remains, even though the industry is now more resilient to crises than it used to be," Lufthansa CEO Carsten Spohr said, as the group announced its 2025 results.
  • German aviation giant Lufthansa warned Friday it faced a more uncertain outlook because of the unfolding Middle East conflict, and that the fallout showed how vulnerable air traffic remains to geopolitical shocks.
  • "The war in the Middle East proves once again how exposed air traffic is and how vulnerable it remains, even though the industry is now more resilient to crises than it used to be," Lufthansa CEO Carsten Spohr said, as the group announced its 2025 results.
German aviation giant Lufthansa warned Friday it faced a more uncertain outlook because of the unfolding Middle East conflict, and that the fallout showed how vulnerable air traffic remains to geopolitical shocks.
The war -- which began last weekend with US-Israeli attacks on Iran, triggering retaliatory strikes from the Islamic republic -- has caused the biggest disruption to air travel since the Covid pandemic.
With airspace closed and transit hubs in the Gulf disrupted, Lufthansa also said it was scrambling to put on extra long-haul flights as demand surges from passengers looking for alternative routes.
"The war in the Middle East proves once again how exposed air traffic is and how vulnerable it remains, even though the industry is now more resilient to crises than it used to be," Lufthansa CEO Carsten Spohr said, as the group announced its 2025 results.
"The massive concentration of global traffic flows via the Gulf hubs is increasingly proving to be a geopolitical Achilles' heel." 
On its outlook for this year, the group -- which operates Eurowings, Austrian, Swiss and Brussels Airlines and has acquired a stake in Italy's ITA -- cautioned profit predictions were now more difficult.
"Developments in the Middle East and the associated geopolitical consequences for the global economy increase the medium- and long-term forecast uncertainty," said Lufthansa, which is Europe's biggest airline group by sales. 
Talking to reporters later, Spohr said Lufthansa was seeing "an enormous increase" in demand for long-haul flights to Asia and Africa because if major disruption at hubs like Dubai and Doha.
"We are examining how we can respond to the situation by operating short-notice special flights," he said, adding that destinations would include Bangkok, Singapore and India.
"We don't have an unlimited number of aircraft... but will now deploy and schedule those that we can at short notice."
Lufthansa is also joining efforts to evacuate thousands of German tourists stranded in the Middle East by organising some flights to bring them home, the CEO said.
Another risk that Lufthansa flagged was "volatility" on oil markets as the conflict sends prices -- including of jet fuel -- sharply higher. 
But chief financial officer Till Streichert played down the risk, saying the firm had a "solid hedging strategy" that should shield it from price fluctuations.
Before the outbreak of the war, airlines had been benefitting from relatively lower oil prices.

Forecast-beating profits

Widespread closures of airspace have brought back memories of the travel shutdowns during the pandemic, which led to Lufthansa being bailed out by the German government.
Announcing its annual results for 2025, the group reported a forecast-beating operating profit of 1.96 billion euros ($2.27 billion), around 20 percent higher than the previous year.  
The news initially sent the group's shares up more than three percent in Frankfurt before they pulled back to trade around 0.5 percent higher.
Revenues rose five percent to 39.6 billion euros. The group's airlines carried 135 million passengers, up three percent from 2024. 
The results were an improvement on 2024, when profits plummeted due to the impact of strikes, aircraft delivery delays and rising costs. 
Lufthansa has described 2025 as a "transitional year" which has seen it push through a wide-ranging turnaround programme, particularly at its main carrier. 
The group is cutting 4,000 jobs, mainly administrative roles in Germany.
The turnaround efforts were making progress, with the flagship carrier returning to profit, and Spohr stressed that it will remain a "top priority".
sr/fz/jxb