Zerohedge

Hungary Returns Ukrainian Bank Cash & Gold Seized During Election Campaign Authored by Thomas Brooke via Remix News, Hungary has returned money and valuables belonging to Ukrainian state-owned bank Oschadbank after authorities seized the shipment earlier this year while it was being transported from Austria to Ukraine. Ukrainian President Volodymyr Zelensky announced the return on Telegram on Wednesday, saying the assets had been seized by Hungarian special services in March, a move he claimed had been unjustified. “Today, the funds and valuables of Oschadbank, seized by Hungarian special services in March of this year, were returned,” Zelensky wrote. “I thank Hungary for the constructive and civilized step,” he added. The shipment, which reportedly included cash and gold belonging to Oschadbank’s Ukrainian branch, was stopped by Hungarian authorities during a period of high tension between Budapest and Kyiv. Hungarian officials said at the time that the bank workers involved were suspected of money laundering. The Ukrainians were later released, but the authorities retained the seized assets until now. The incident occurred during Hungary’s parliamentary election campaign last month, when Prime Minister Viktor Orbán had made criticism of Ukraine a central part of his political messaging. His government was also locked in a dispute with Kyiv over the interruption of Russian oil supplies through Ukraine to Hungary via the Druzhba pipeline. Orbán, who had long clashed with Ukraine and its European backers over sanctions, aid, and energy policy, was defeated in April’s election. Péter Magyar, the leader of the Tisza party, will now succeed him, and the new Hungarian parliament is expected to be sworn in on Saturday. The return of the Oschadbank assets follows a broader easing of tensions between Budapest and Kyiv. Despite multiple claims from Ukraine during the election campaign that the Druzhba pipeline could not simply resume due to damage inflicted by Russian shelling, Kyiv promptly resumed the flow of oil to Hungary and Slovakia shortly after Orbán’s election defeat. At the same time, Budapest stopped blocking final approval of a €90 billion European Union loan to Ukraine. Read more here... Tyler Durden Fri, 05/08/2026 - 03:30

The EU Is Pushing "Driver-Monitoring Cameras" - Here's Why... Authored by Kit Knightly via Off-Guardian.org, From July of this year, every vehicle registered in the European Union will be required to have driver-monitoring cameras in place. That’s not every new car manufactured, but every car registered. The “Advanced Driver Distraction Warning” (ADDW) cameras are designed to monitor driver behaviour for signs of potential distraction, and then set off a warning if those signs are detected. It was first announced in 2024 as part of the EU’s “Vision Zero” plan to eliminate car-related deaths by 2050. But it’s not really about that. It’s never about what they say it’s about. Here’s where this goes… Firstly, kiss successful insurance claims goodbye. Any accident will be blamed on “sub-optimal driver performance”, and that time you checked your phone while stopped at a light, or your hands moved briefly from the 10-and-2 or your eyeline wasn’t correctly picked up by the mirror sensor, will be used to blame your fender-bender on you. This will create a change in accident reporting statistics, spiking “driver error” as the cause for anything and everything that goes wrong on the road. This, in turn, will kick off a big “people drive dangerously” propaganda push. Headlines like “ADDW data harvesting has shown up 80% of us might be driving more recklessly than we think”, or “most veteran drivers slip in to bad habits, reports show” will appear. Then comes the new legislation to act on this totally fabricated problem. What is it? It’s re-certification. That’s not speculation; it already happened. Under new EU rules, passed just a few months ago, every driver has to be re-certified and issued a new driver’s license after 15 years. It would be the smallest of tweaks to add “or after Y number of distraction warnings are recorded” to that legislation. The new driver’s licenses will be digital, with biometrics included. It’s possible new cars will be undrivable without a scan of your biometric license. Your car’s data will be uploaded to a database, of course. That’s going to happen. …in fact, it already is. It’s not at all far-fetched to imagine your driver monitoring data getting scanned for errors by an AI, and any detected errors putting points on your license. If you go over a certain number of points, your ability to drive is taken away…pending recertification. You can appeal, and drive while the appeal takes place. But the appeal fee will be greater than the recertification fee, and if you lose, you have to pay extra legal costs, and you’re subject to an extended driving ban. This will be covered in the press as a universally Good Thing. Headlines will celebrate the (almost entirely fictional) decrease in traffic fatalities, whilst baselessly claiming that the smaller number of private vehicles on the road has “improved pollution levels in the inner cities”. An opinion piece from an anonymous “former driver” will appear in the Guardian, “I lost my driver’s license, and it’s the best thing that ever happened to me”. It will talk up how much money they’re saving on petrol and road tax, and how much fitter they get walking and cycling everywhere and how they know their neighbours so well now. Not forgetting all sorts of cozy anecdotes about the charming characters you meet and life-affirming tableaux you witness using public transport. Meanwhile, American “journalists” will wax poetic about the EU’s “forward-thinking system”, and the UK press and punditry will talk of “lagging behind the EU”, and blame every road accident on Brexit. Some academics will publish a paper finding that “private car ownership has decreased under EU driver monitoring regulations”, and this “unintended upside” will be widely applauded. Cue Buzzfeed: “New license rules have taken cars off the road, and it’s a good thing.” And Vox: “The EU’s driver’s license law has given us a glimpse of what a car-less future could look like, and it’s beautiful”. While all this is going on, there will be persistent white noise on the safety of “robot drivers” vs human drivers, talking up automatic driving software in Chinese electric cars and so on. Public transport will be increasingly automated too – whether really automated, or just remotely driven doesn’t matter. The point will be to remove images of people driving from the public sphere. The important part is you don’t get to decide where you’re going or how you’re getting there. The end goal will be to inculcate a generally anti-car atmosphere, where even knowing how to drive will be considered somewhat old-fashioned. Middle-class parents will boast to social media echo chambers that “I never wanted my Jacinda to learn!”, and receive bot-fueled applause as a reward. Implausible self-congratulatory anecdotes detailing how “My eight-year-old just told me he doesn’t want to drive because it’s bad for the planet! Children are so wise!” will go viral. Because the easiest way to trap people is to make freedom uncool. That might seem like a lot of speculation based on a little information, and in some ways it is, but pattern recognition is important. It’s much easier to put out a fire that hasn’t started yet, and we know they want to burn it all down. We know they want to end private vehicle ownership; they have repeatedly said so. Well, this is how they do that. A little at a time, creating atmospheres and environments. Seemingly arbitrary rules and regulations with “unforeseen consequences”. That’s how they work now, they come at us sideways with slow-developing long-cons, because they can’t afford to work in straight lines, not since Covid. Stuff like this might seem a small – a throwaway issue vs war or the price of oil – but the powers-that-shouldn’t-be have an eye on the far horizon when they take small steps, and we should pay attention to where they want to take us. Tyler Durden Fri, 05/08/2026 - 02:00

BlackRock Private Credit Fund Cuts Asset Values By 5%, As Golub Gates After 8.5% Redemptions Just another day in private credit paradise... er, hell.  One day after Gundlach repeated his warning that the private credit crisis will end in tears for bagholders, Blackrock cut the value of its publicly-traded private credit fund by about 5%, as it - like most of its peers - struggled under the weight of troubled loans, markdowns and lower returns. BlackRock TCP Capital Corp., a publicly traded middle-market lending fund, said markdowns totaled $35 million in the quarter ended March 31, according to a statement on Thursday. Amusingly, and in hopes of redirecting attention, the $1.5 billion fund highlighted “improving credit quality,” and said it invested more in senior debt and strengthened its balance sheet. The fund said its dividend, which was cut to 17 cents a share last quarter, would remain flat. The fund has been a challenge for BlackRock, the world’s largest asset manager with about $14 trillion in assets, which is expanding aggressively into private credit. BlackRock acquired specialist manager HPS Investment Partners last year for about $12 billion, aiming to significantly expand its existing capabilities and legacy funds, including TCPC. The TCPC fund said in January that it cut the net asset value of its assets by 19%, which sent shares tumbling. The fund has struggled in part due to exposure to e-commerce aggregators - companies that buy and manage Amazon.com Inc. sellers - as well as troubled home improvement company Renovo Home Partners, which filed for bankruptcy. Back in March, we reported that Blackrock slashed the value of one of its private loans from par to 0 in just months, Infinite Commerce Holdings, sparking a selloff in the shares as the market was stunned by how quickly a loan from the world's most iconic asset manager can go from par to 0 in just days. “While we have made meaningful progress, we recognize there is more work to do and we remain focused on disciplined execution,” Chief Executive Officer Phil Tseng said on a call with analysts. Loans on non-accrual status - typically meaning borrowers have missed their debt payments - declined to 7.6% on a cost basis, compared with 9.7% in the prior quarter. That's because one of its portfolio loans was sold, and two were restructured. Investments in 13 portfolio companies were on non-accrual status. Tseng said the largest driver of the markdowns was an investment in Job and Talent, a staffing and recruitment company that suffered from weak performance in the quarter. Almost a third of the markdowns came from software-related investments, he said. Lenders in the $1.8 trillion private credit market have been under scrutiny as advancements in artificial intelligence threaten to upend their bets on software, an industry that makes up a significant portion of lenders’ portfolios.  Elsewhere, the last big private credit fund we were waiting to report its redemption gates, did just that: Golub Capital announced it was capping withdrawals from its private credit fund after investors sought to pull 8.5% of shares, the latest instance of a money manager restricting outflows amid a wave of redemption requests. Golub Capital Private Credit Fund, or GCRED, plans to enforce the quarterly withdrawal limit of 5% of common shares outstanding, according to a letter to shareholders on Thursday. The roughly $9.9 billion fund intends to fulfill repurchase requests for 8,891,200 shares. The credit manager told investors that the redemption requests “were concentrated in a small subset representing approximately 5% of GCRED’s more than 12,000 shareholders.” Golub also cited roughly 14 million in new share subscriptions this year through the end of April.  GCRED has a liquidity cushion of approximately $4.1 billion and its portfolio consists of nearly $10 billion in total investments at fair value, the firm said. As of the end of the first quarter, less than 0.1% of GCRED’s investment portfolio was on non-accrual status.  None of that mattered in the, and Golub has now joined every single one of its BDC peers in gating its investors. The silver lining, unlike such disasters as the two big Blue Owl BDCs (OTIC and OCIC), which saw investors try to pull 41% and 22% of their capital respectively - and were obviously gated - Golub's tally was only 8.5%, which in this age where double digit redemptions requests are the normal, is downright respectable.     d   Tyler Durden Fri, 05/08/2026 - 00:08

When Global Order Begins To Fracture Authored by Milan Adams via Preppgroup blog, There are moments in history when the world changes with noise — sirens, speeches, falling statues. And then there are moments when it changes so quietly that almost nobody realizes it is happening. We are living through the second kind. No formal announcement marked the transition. No historic summit collapsed on live television. No leader stepped forward to say: the old rules no longer apply. And yet, somewhere between the war in Ukraine, the tightening strategic alignment between Russia and China, and the silent expiration of the New START in February 2026, the global system that kept great-power rivalry inside predictable boundaries began to dissolve. Not explode. Dissolve. For decades, the world’s stability did not come from trust. It came from limits. From inspection regimes. From numbers written into treaties. From the strange comfort of knowing exactly how dangerous your adversary was allowed to be. Military planners in Moscow and Washington worked with ceilings. Diplomats worked with verification schedules. Leaders worked with red lines that had legal meaning. Those ceilings are now gone, and most of the public has not noticed because nothing dramatic happened the day they disappeared. The Strategic Triangle That No Longer Moves For years, American strategists believed the triangle between Washington, Moscow, and Beijing could be manipulated. If relations with one deteriorated, the other could be courted. It was the logic behind the Cold War opening to China and the repeated attempts to “reset” relations with Moscow. There was a quiet confidence that Russia, culturally tied to Europe and historically wary of China, would never fully lean toward Beijing. That confidence now looks misplaced. Today, the United States faces not two separate rivals but two powers whose interests increasingly overlap: Both view American sanctions as a weapon of political coercion Both seek to dilute U.S. influence in global institutions Both advocate a “multipolar” order where Washington’s dominance fades Both benefit from closer economic and strategic coordination This is not a formal alliance, which paradoxically makes it more durable. It is not built on ideology or treaty obligations but on a shared reading of the world. Even a future change in leadership after Vladimir Putin may not reverse this direction. Years of sanctions, NATO expansion, and the war in Ukraine have reshaped Russian political psychology. The turn toward China is no longer tactical. It is structural. The Day the Guardrails Disappeared On February 5, 2026, New START expired. There was no emergency summit. No dramatic breakdown in negotiations. It simply ended. For the first time since the early 1970s, there is no binding agreement limiting how many deployed strategic nuclear weapons the U.S. and Russia can field. Together, they hold the overwhelming majority of the world’s nuclear warheads. During the Cold War, even at moments of extreme tension, both sides maintained arms control agreements because they served a critical purpose: they made the enemy measurable. You could count warheads. You could inspect launchers. You could verify data. Now, you cannot. Russia suggested informally that both sides observe the old limits for another year to allow time for talks. Washington did not formally accept. No replacement treaty emerged. No urgent negotiations dominated the news cycle. The expiration passed like a date on a calendar, but inside defense ministries, the conversation shifted. Without legal ceilings, planners no longer ask what are we allowed to deploy? but what can we deploy? That is how arms races begin — quietly, through planning assumptions rather than political declarations. A Pattern of Pressure in Unlikely Places While most attention remains on Ukraine and nuclear policy, Moscow has been testing American reactions in places that rarely make front pages. The Western Hemisphere Near Venezuela, a U.S. Coast Guard seizure of a Russian-flagged tanker suspected of sanctions violations brought American and Russian forces into unusual proximity. Russian naval assets, reportedly including a submarine, were operating nearby. Moscow denounced the move as piracy. The incident did not escalate, but it revealed a willingness to challenge U.S. authority in its own neighborhood through presence and ambiguity rather than confrontation. The High North In the Arctic, melting ice is opening the Northern Sea Route into a viable trade corridor between Europe and Asia. Russia controls much of this passage and positions itself as its gatekeeper. China’s interest in what it calls a Polar Silk Road adds another layer of leverage for Moscow without a single shot being fired. The Middle East In crises involving Iran, Russia has condemned Western actions but avoided direct military involvement, constrained by the demands of the war in Ukraine. Even so, Moscow continues to present itself diplomatically as an alternative power center to Washington, choosing its moments carefully. Multipolarity as a Strategic Weapon In international forums, Moscow and Beijing repeat the same phrase: multipolar world. It sounds abstract and even reasonable, but strategically it signals a shift away from the system in which the United States could enforce rules through economic and institutional power. In a multipolar system, sanctions lose effectiveness, institutions become arenas of gridlock, and regional powers gain more freedom to challenge established norms without immediate consequences. There is no secret pact binding Russia and China into a military bloc. But patterns are visible. China purchases discounted Russian energy. Russia benefits from China’s refusal to isolate it diplomatically. Joint exercises occur. Messaging aligns in international institutions. This is not conspiracy. It is convergence, and over time, convergence reshapes the balance of power as effectively as formal alliances. A World Without Clear Edges For American policymakers, the problem is new and uncomfortable. Deterring one nuclear peer was the central challenge of the Cold War. Deterring two, at the same time, is a strategic puzzle without historical precedent. How do you prepare for simultaneous crises in Europe and the Pacific? How do you distribute forces without weakening credibility in either theater? The answers are unclear, and that uncertainty is itself destabilizing. What makes this period unsettling is not the presence of immediate crisis but the absence of clear boundaries. No arms control limits. No clean separation between economic and military rivalry. No reliable assumptions about how far competitors are willing to go. Speak privately with diplomats or analysts, and you hear the same quiet phrase repeated: this feels different. Not louder. Different. The stabilizing mechanisms built over fifty years are eroding faster than new ones can replace them, and the world is drifting into a phase where miscalculation becomes more likely simply because the rules that once structured rivalry no longer exist. The Geography of Escalation What makes the current geopolitical shift so difficult to grasp is that its most consequential developments are not unfolding in spectacular acts of confrontation, but through a slow accumulation of pressure points that, taken together, redraw the strategic map of the world. The new contest for power is no longer concentrated in obvious flashpoints alone; it is spreading across trade routes, technological infrastructure, energy corridors, and regions once treated as peripheral to great-power rivalry. Its defining characteristics are becoming increasingly clear: Strategic competition is expanding into spaces once considered neutral, from Arctic maritime corridors and orbital infrastructure to undersea cables and semiconductor supply chains that now carry the weight of national security. Economic interdependence is no longer viewed primarily as stabilizing, but increasingly as vulnerability — something states seek to weaponize, shield against, or strategically reduce. Military deterrence is becoming more diffuse and unpredictable, shaped not only by nuclear arsenals, but by cyber capabilities, autonomous systems, and the ability to cripple critical infrastructure without firing a conventional shot. Political fragmentation inside democracies has become an external strategic variable, as rivals increasingly calculate not only military strength, but institutional resilience, public fatigue, and the ability of societies to sustain prolonged competition. This is what makes the moment historically unusual: the architecture of confrontation is becoming broader than war itself. Power is now projected through disruption, ambiguity, and exhaustion as much as through force, creating a landscape where crises may emerge not as singular explosions, but as overlapping pressures that slowly weaken the coherence of entire systems. Where Stability Used to Live For decades, global order depended on mechanisms that reduced uncertainty even when hostility remained intense. What held rivalry in check was not goodwill, but structure — the confidence that opponents understood thresholds, recognized consequences, and operated within a strategic grammar both sides could read. That grammar is now eroding, and with it disappears the predictability that once made dangerous competition manageable. Several pillars have quietly weakened at once: Arms-control architecture is fading faster than replacement frameworks can emerge, removing the legal and psychological ceilings that once constrained escalation. Diplomatic channels remain open, but increasingly hollow, producing language of cooperation while substantive trust continues to deteriorate beneath the surface. Alliance systems are strengthening militarily while becoming politically more complex, forcing governments to balance deterrence abroad with growing strain at home. Strategic planning is increasingly dominated by worst-case assumptions, and once governments begin budgeting, deploying, and preparing around pessimistic scenarios, those scenarios begin shaping reality regardless of original intent. This is how history often changes — not when one pillar falls, but when several begin cracking at once under accumulated weight. The Century’s Harder Question The central issue facing the world is no longer whether tension between major powers will define the coming decades; that much is already visible. The deeper question is what kind of competition is now being born, and whether political leadership is capable of understanding its scale before events begin dictating terms on their own. What increasingly worries strategic analysts is a convergence of destabilizing trends: Two nuclear peer competitors confronting Washington simultaneously, creating deterrence challenges without modern precedent. A world economy fragmenting into competing technological and industrial blocs, where efficiency is sacrificed for resilience and security. Critical infrastructure becoming a battlefield, from ports and power grids to satellite systems and digital finance architecture. A widening gap between strategic reality and public perception, with governments quietly preparing for long-term confrontation while much of society still assumes the turbulence is temporary. That disconnect may prove more dangerous than any single military crisis, because nations are often least prepared for transformation when they mistake structural change for passing instability. By the time reality becomes obvious, the balance of power has usually already shifted. The Illusion of Distance One of the most persistent misconceptions in periods of strategic transition is the belief that major geopolitical change remains distant until it becomes visible through unmistakable crisis. That assumption is comforting, but history rarely moves according to the emotional timelines societies prefer. By the time structural change becomes obvious to the public, it has usually been unfolding for years beneath the surface — inside defense budgets, industrial policy, intelligence assessments, shipping patterns, alliance planning, and the quiet recalibration of what states believe they may soon be forced to do. What appears sudden is often only the first moment ordinary people notice what governments have already spent years preparing for. Several developments suggest that this deeper transition is no longer theoretical: Military-industrial production is being reconsidered as a strategic necessity rather than an economic burden, with governments increasingly prioritizing ammunition stockpiles, shipbuilding capacity, rare-earth access, semiconductor sovereignty, and resilient supply chains that can withstand prolonged confrontation. Energy has fully returned as an instrument of power, no longer merely a commodity traded on markets but a geopolitical lever capable of rewarding alignment, punishing dependence, and reshaping regional influence through pipelines, shipping routes, and long-term infrastructure partnerships. Technology is being absorbed into national-security doctrine at unprecedented speed, turning artificial intelligence, quantum computing, satellite networks, cyber offense, and digital infrastructure into strategic assets whose control may define power as decisively as oil fields or naval fleets once did. Neutral space is shrinking, as regions and states once able to balance relations between competing blocs increasingly face pressure to choose economic, technological, and strategic alignment in a world becoming less tolerant of ambiguity. The cumulative effect is profound: global competition is no longer being organized around isolated disputes, but around a broader contest over who will shape the operating rules of the twenty-first century. That makes nearly every crisis larger than it first appears, because behind each confrontation sits a wider struggle over influence, leverage, and strategic endurance. The Pressure That Does Not Break — Until It Does What makes this era particularly dangerous is that it is not defined by one overwhelming shock, but by the gradual layering of tensions that, individually manageable, collectively create systemic strain. International order does not always fail because of catastrophic singular events; often it weakens because too many pressures build simultaneously until institutions lose the capacity to absorb them. That is the pattern increasingly visible today. Among the most destabilizing pressures now converging are: Persistent military confrontation in Europe, where the war in Ukraine has transformed from regional conflict into a long-term strategic contest reshaping NATO posture, Russian doctrine, European defense spending, and the broader military balance on the continent. Rising strategic friction in the Indo-Pacific, where Taiwan, the South China Sea, maritime chokepoints, and expanding naval competition increasingly place the world’s economic center of gravity inside an active security dilemma. Intensifying competition over critical resources, including rare earth minerals, industrial metals, advanced chips, and logistical infrastructure that underpin both civilian economies and modern military capability. Growing vulnerability of interconnected systems, where attacks on communications networks, financial systems, power grids, satellite constellations, or maritime infrastructure could generate cascading disruption without a single formal declaration of war. This is what gives the current moment its unusual gravity: escalation no longer needs to be deliberate to become real. It can emerge through overlap, accident, misreading, or exhaustion. A cyber disruption during a regional military standoff, an industrial blockade disguised as regulation, a maritime collision in contested waters, a sanctions spiral that unexpectedly fractures global markets — these are no longer improbable scenarios imagined in think-tank exercises. They are increasingly plausible outcomes in a world where strategic friction exists across too many domains at once. The Cost of Misreading the Moment Perhaps the greatest strategic danger is not aggression itself, but complacency — the tendency of societies, markets, and political systems to interpret structural instability as temporary turbulence rather than historic transition. The modern world is deeply conditioned to believe that shocks are disruptions to normality, after which normality returns. Yet some periods are not interruptions; they are turning points, moments when the previous equilibrium quietly expires and a harder reality begins taking shape. The signs of that transition are already visible: Governments are preparing for resilience rather than efficiency, favoring redundancy, domestic production, and strategic reserves over the economic logic that dominated globalization’s peak decades. Defense planning horizons are expanding, with states investing not for immediate conflict alone, but for prolonged competition measured in decades rather than election cycles. Strategic alliances are being reinforced not simply for deterrence, but for endurance, reflecting growing recognition that the defining challenge ahead may be sustained geopolitical pressure rather than singular confrontation. Public awareness remains significantly behind elite strategic assessment, creating a dangerous disconnect between the scale of transformation underway and the political urgency with which societies respond to it. History is often shaped not by the crises leaders expect, but by the ones they underestimate because the early warning signs appear too gradual to command attention. That is what makes this moment so consequential. The old order is not collapsing in spectacle, but in slow motion — treaty by treaty, assumption by assumption, safeguard by safeguard — while a more unstable world quietly assembles itself in its place, piece by piece, beneath the comforting appearance of continuity. Views expressed in this article are opinions of the author and do not necessarily reflect the views of ZeroHedge. Tyler Durden Thu, 05/07/2026 - 23:25

Saudi Arabia's $1Tn Wealth Fund Opens Shanghai Office As China Ties Deepen Via The Cradle Saudi Arabia’s Public Investment Fund (PIF) opened a second office in mainland China earlier this year, establishing a Shanghai branch to expand dealmaking and attract more Chinese investment into the kingdom, Bloomberg reports. The office was registered last year, falls under PIF’s Beijing branch, and is led by Lily Cong, a former chief representative of Fidelity International in China’s capital. Source: Britannica  The Shanghai outpost was reportedly created to strengthen the $1 trillion fund’s ability to pursue outbound deals in China, while officials are also seeking to bring more Chinese companies into Saudi Arabia. This move strengthens Riyadh’s investment relationship with Beijing, while the US continues to be a major market for the kingdom. The Shanghai office expands PIF’s global presence, which already features offices in New York, London, Hong Kong, and Paris.  Saudi Arabia and China already maintain strategic and financial links across sectors, including energy and finance, while other Gulf wealth funds are also looking to expand their exposure to China. Abu Dhabi is also considering placing Chinese assets held by two of its wealth funds into a new entity, according to earlier reports, a move that could pave the way for a broader shift in its investment strategy. The Gulf investment push comes amid major shifts in West Asian markets following the US war on Iran, triggering regional disruptions that have put pressure on Gulf economies and accelerated moves away from dollar-dominated energy trade. Saudi Arabia, Qatar, and other Gulf states have deepened yuan-based financial links with China, while disruptions in the Strait of Hormuz have further exposed the fragility of the “petrodollar order”. According to a report by Fortune, Riyadh did not formally renew its 2024 commitment to price oil exclusively in US dollars, a year after signing a $7 billion currency swap agreement with Beijing.  The Saudi central bank is also a key participant in the mBridge digital payment platform, which enables direct currency exchanges via blockchain technology. Economists cited by Fortune say the shift reflects China's growing weight in Saudi trade, as Beijing has displaced the US as the kingdom’s largest oil customer.  "The economic gravity pointed toward yuan while the currency arrangement pointed toward dollars," EBC Financial Group analyst Michael Harris wrote.  Saudi Arabia still conducts most deals in US dollars, but expanding financial ties with Beijing signal a broader effort to diversify trade and investment channels as China positions the yuan as a possible alternative in global energy markets. Tyler Durden Thu, 05/07/2026 - 22:35

Uber Says AI Is Writing More Code and Slowing Hiring Growth Uber Technologies, Inc. is expanding its use of AI tools and using some of those efficiency gains to slow the pace of hiring, according to Business Insider. Speaking on the company’s first quarter earnings call, CEO Dara Khosrowshahi said autonomous coding agents now account for about 10% of Uber’s code updates. Engineers still review that output before it is committed to internal repositories, but he said the shift offers an early glimpse of how AI can accelerate software development. Business Insider writes that Uber has long relied on machine learning for customer facing functions such as setting ride prices and pairing drivers with riders. Now the company is rolling out similar tools across internal teams. “We’re seeing uptake of these tools, whether it’s our legal team or marketing team or developers,” Khosrowshahi said. “We think it’s creating kind of employees with superpowers.” That broader adoption is influencing hiring plans. CFO Balaji Krishnamurthy said executives did not fully anticipate how quickly AI tools would improve productivity when they mapped out their 2026 budget. He said on the call, per Goldman: “One last comment on AI. I would say, candidly, when we set up budgets for 2026 in November, we underestimated the amount of impact the AI tools could have,” he said. After a new wave of models arrived in December, Uber “re-upped our investment here,” while also reducing “incremental headcount growth.” The spending ramp has been significant. Last month, CTO Praveen Neppalli Naga said Uber had already used its entire 2026 budget for Anthropic’s Claude Code, underscoring how quickly demand for AI tools is growing inside the company. Khosrowshahi said the strategy makes sense if those tools continue improving employee output. “If every person at this company can increase their throughput by 20%, 30%, 50%, 100%, then I think metering headcount growth and leaning in on AI investment is going to be well worth it,” he said. Tyler Durden Thu, 05/07/2026 - 21:20

Hochul Targets NYC's Multimillion-Dollar Second Homes In $268 Billion Budget Framework New York is taking direct aim at the city’s ultra-wealthy absentee owners. In a major policy shift announced Thursday, Governor Kathy Hochul and state legislative leaders reached a framework agreement on a $268 billion state budget that includes a new annual tax on multimillion-dollar second homes in New York City - a move designed to generate roughly $500 million a year to help close the city’s projected $5.4 billion budget deficit. The proposal, often called a “pied-à-terre” tax (French for “foot on the ground”), would apply to luxury properties valued at $5 million or more that are owned by people whose primary residence is outside New York City. These high-end apartments and townhouses - frequently used only a few weeks a year by global elites, celebrities, and finance executives - have long been criticized as under-taxed symbols of inequality in one of the world’s most expensive housing markets. “This is a tax on properties worth more than $5 million that are owned by people who do not reside in New York City - the super wealthy who can purchase properties and use them to store their wealth,” Mayor Zohran Mamdani said in support of the plan. “If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker.” Hochul’s Political Pivot The tax represents a notable evolution for Governor Hochul. For years she resisted aggressive wealth taxes, warning they could drive businesses and high-net-worth residents out of the state. But after Zohran Mamdani - a 34-year-old democratic socialist and state assemblymember - won the New York City mayoral race in November 2025 in a stunning upset, the political math changed. With Mamdani pushing an ambitious progressive agenda (including universal pre-K and 3-K) and with federal funding cuts looming under the Trump administration, Hochul agreed to the second-home surcharge as part of a broader budget deal. The revenue would flow directly to New York City, according to the NY Times.  Hochul framed the tax as both fiscally necessary and morally fair: “If you can afford a multi-million dollar second home in New York City, you can afford to pay your fair share.” Details Still Being Finalized While the framework has been agreed to in principle, key specifics remain under negotiation. Hochul said she would release more details “soon,” including exact rates, exemptions, and how many of the roughly 13,000 eligible properties would actually be taxed. Legislative leaders cautioned that the governor’s announcement was premature. Assembly Speaker Carl Heastie said Thursday that no final deal had been reached and that “there is no budget deal.” Senate Democratic spokesman Mike Murphy described the agreement as covering only “big concepts.” Carl Heastie, the Assembly speaker, cautioned that no deal had been finalized, calling the governor’s announcement premature.Credit...Cindy Schultz for The New York Times Still, the direction is clear: New York is joining a growing number of jurisdictions (including parts of Europe and several U.S. cities) that are experimenting with higher taxes on non-primary residences to fund public services amid housing shortages and affordability crises. The second-home tax is just one piece of a wide-ranging budget that also includes: $4.5 billion to expand child care statewide - a key priority for Mayor Mamdani. Delays to the state’s aggressive climate targets under the 2019 Climate Leadership and Community Protection Act (pushing full implementation to 2028 and adjusting methane calculations). New restrictions on federal immigration enforcement, including barring ICE agents from wearing masks and limiting cooperation between local police and federal agents. A cap on certain auto insurance payouts and speed-limiting devices for chronic “super-speeders” in New York City school zones. A state-level exemption on up to $25,000 in tips for many workers (mirroring federal changes) and $1 billion in utility bill rebates. Political and Economic Stakes Republicans immediately attacked the package. Nassau County Executive Bruce Blakeman, Hochul’s likely Republican opponent in November’s gubernatorial race, called the budget a “triple threat to your wallet: more taxes, record spending, and a utility bill crisis.” Environmental groups criticized the climate deadline extensions as a retreat, while trial lawyers and consumer advocates expressed concern that auto insurance changes could limit compensation for crash victims. For Hochul - who is seeking re-election - the deal allows her to claim credit for delivering on affordability and child care while showing political flexibility in partnering with the city’s new progressive mayor. For Mamdani, it marks an early victory in his effort to make the ultra-wealthy “pay their fair share.” The budget must still be finalized and passed by the Legislature. Details on the second-home tax rates and implementation are expected in the coming days. Tyler Durden Thu, 05/07/2026 - 20:30

$16M Hospice Fraud Exposed In Newsom's California As Trump Admin Ramps Up Crackdown Authored by Steve Watson via modernity.news, The Trump administration continues its aggressive push to root out waste and abuse in federal entitlement programs, exposing yet another layer of systemic fraud thriving in Gavin Newsom’s California.  A new investigation highlights a single attending physician whose National Provider Identifier was tied to 17 different hospice operations in the Los Angeles area.  These entities filed more than 3,000 claims on behalf of only 900 patients, billing Medicare for $16 million. 🚨 GAVIN NEWSOM JUST GOT CAUGHT ALLOWING EVEN MORE FRAUD This "hospice" provider PANICKED when the reporter came up and exposed: "[They] filed more than 3,000 claims for 900 patients, billing Medicare for $16 MILLION DOLLARS." 🤯 "Anything over 100 patients at a given time… pic.twitter.com/vTNwyZ3MLR — Eric Daugherty (@EricLDaugh) May 5, 2026 Hospice care expert Ira Byock laid out the red flags clearly: “Anything over 100 patients at a given time that you have responsibility for as a hospice physician should start to raise red flags.” This case fits the broader pattern of exploitation that federal authorities under the Trump administration have targeted. The Centers for Medicare and Medicaid Services, led by Dr. Mehmet Oz, recently delisted around 450 suspected fraudulent hospice providers in Los Angeles County, suspending more than $600 million in questionable claims with no appeals filed. Oz’s spotlighted billions in hospice fraud connected to foreign mafias and welfare scams that victimized seniors: These revelations build directly on prior exposures of California’s entrenched fraud networks. As we previously detailed, the Trump administration dismantled elements of a sprawling $146 billion Medi-Cal fraud operation:  California Democrats have responded by attempting to criminalize the very act of exposing such schemes, as independent journalist Nick Shirley confronted them over proposed measures that would silence watchdogs:  The on-the-ground reporting captured providers panicking when approached. Doors closed quickly. Seniors in Visalia described feeling deceived. One couple stated plainly: “The way I see it we were just taken in.” Neither the physician in question nor the associated hospice operation has faced discipline or charges in this latest instance. Both remain active in the Medicare program. This lack of immediate consequences underscores the inertia that oversight under Trump is now confronting head-on. State officials have pointed out that Medicare is a federal program and highlighted their own enforcement actions, including a $267 million hospice fraud takedown announced in April. Yet the persistence of these schemes in Los Angeles County—home to far more hospice providers than many entire states—reveals deep vulnerabilities that predated the current federal pressure. The Trump administration’s Task Force to Eliminate Fraud is delivering results by acting decisively, protecting taxpayers and vulnerable Americans from networks that treat end-of-life care as a revenue stream. Newsom’s deflection cannot obscure the reality: California’s entitlement systems have operated with minimal accountability for too long. Billions have been siphoned while seniors were enrolled without full understanding and providers cycled patients for maximum billing. The sunlight now being shone on these operations marks a decisive shift from previous neglect. Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews. Tyler Durden Thu, 05/07/2026 - 19:15

"Existential": Israel Quadruples Foreign-Influence Budget To Massive $730M With the ranks of its foreign sympathizers plummeting all around the world and all across the political spectrum, the State of Israel is quadrupling its budget for so-called "public diplomacy," bringing its 2026 spending on foreign influence campaigns to a massive $730 million. With the country's growing unpopularity threatening US financial, military and diplomatic support, Israel's foreign minister has said an intensified effort to mold global opinion is an "existential issue." Both inside and outside of Israel, the country's public diplomacy effort is also referred to by its Hebrew name: hasbara. Even before the 2026 ramp-up in spending, Israel's spending on hasbara was already striking.  Recent disclosures about 2025 hasbara spending shed some light on how Israel goes about shaping public opinion. Per the Jerusalem Post, that year's outlays included a $50 million social media ad campaign carried out on Google, YouTube, X and Outbrain. Another $40 million covered the hosting of foreign delegations. “We flew a lot of delegations to the country - whether it’s pastors, whether it’s politicians, universities,” Israeli Consul General Israel Bachar told the Jerusalem Post. “Everyone who returns from the country understands better and is more supportive. But you have to fly out a lot of people.” House Speaker Mike Johnson abruptly ended the workweek, sending the House into early recess to avoid a vote on releasing more Jeffrey Epstein documents. Members of Congress then packed their bags and flew to Israel. pic.twitter.com/QMV3TvAgaK — FlyingBeagle "Abu Alya" (@FlyingBeagle_) August 6, 2025 “We must as a country invest much, much more,” Israeli foreign minister Gideon Sa’ar argued in December. “It should be like investing in jets, bombs and missile interceptors. In the face of what’s arrayed against us and what’s invested against us, it’s far from enough. This is an existential issue.” An April Pew Research survey found that 60% of American adults now view Israel unfavorably -- that's up 18 points from 2022. Underscoring the mammoth challenge faced by Israel's hasbarists, the proportion of Americans who have a very unfavorable view of Israel now stands at 28% -- triple what it was in 2022. Most alarming for Israel is the cratering of support among Republicans, with 57% of those under 50 now viewing Israel unfavorably.   The erosion of US support has taken place over a span that has included Israel's stunningly-destructive rampage across Gaza in response to the Oct 7 2023 Hamas invasion of Israel, and this year's US-Israeli war on Iran which has caused fuel prices to rocket higher while threatening a global economic catastrophe.  The money they steal from you they spend on lying to you. https://t.co/YUwfEEqhFm — Scott Horton (@scotthortonshow) May 5, 2026 Israel's weakened position in US politics is manifesting in various ways. Candidates in Democratic primaries are now attacking opponents who've taken money from the pro-Israel lobby, which has prompted those forces to effectively "launder" their contributions through intermediary organizations. This week, 30 House Democrats co-signed a letter to Secretary of State Marco Rubio, demanding that the US government finally acknowledge the existence of Israel's nuclear arsenal -- ending decades of bipartisan obfuscation. Votes in Congress that follow the Israel lobby's recommendations used to be enormously lopsided on Israel's side, but are now decided by just a handful of votes -- with the lobby still prevailing for now.    In October, westerners' wariness of Israeli hasbara was heightened by Responsible Statecraft's revelation that Israel was paying social-media influencers something like $7,000 per pro-Israel post that they made.  The best 'conservative' influencers Israel can buy? Emily Austin participated in the Epstein binders hoax, and joined Netanyahu's recent influencers meeting Xavaier DuRousseau attended the secret Hamptons influencer summit with Bill Ackman, then junketed off to Israel pic.twitter.com/JLoGk3Jzfd — Max Blumenthal (@MaxBlumenthal) September 28, 2025 Some hasbara efforts have been carried out in a purposely deceptive fashion. For example, an undercover Al Jazeera documentary captured American Jordan Schachtel, who now publishes The Dossier on Substack, describing his involvement in a social media campaign in which Israeli propagandists ran Facebook pages that ostensibly cover topics far from geopolitics -- such as the environment or feminism -- for the sole purpose of periodically sprinkling the feed with pro-Israel content. "It’s a secretive thing, because we don’t want people to know that these side projects are associated with The Israel Project," Schachtel was caught saying on hidden camera. Imagine what they'll be cooking up with three-quarters of a billion dollars.  Tyler Durden Thu, 05/07/2026 - 18:00

US Conducts New Iran Strikes Along Hormuz Corridor - Trump Says Warships Came Under Fire By 'Lunatics' Summary US military attacks Iran locations on southern coast, and allegations of UAE involvement; Explosions rock Abu Dhabi. CENTCOM says intercepted Iranian counterattacks. Iran says US violated ceasefire after Centcom targeted Iranian facilities responsible for attacks; US says ceasefire not violated despite striking Iranian oil tanker and targets in Bandar Abbas and Qeshm. The Trump admin mulls restarting operation to guide ships through the Strait of Hormuz with naval and air support as early as this week after Saudi Arabia and Kuwait lifted restrictions on US access to their bases and airspaces Iran national security commission 'red line': No uranium has left the country; The right to enrich uranium, the complete lifting of sanctions, and the release of the country's assets are non-negotiable red lines. French nuclear-powered carrier steams through Suez Canal in support mission as Europe seeks diplomatic influence over Hormuz outcome. First Chinese tanker reportedly attacked: shipping industry source told Caixin that this was the first time a Chinese tanker was hit in the three-month-long war, calling it "psychologically very hard to accept." //--> //--> Strait of Hormuz traffic returns to normal by end of May? Yes 36% · No 65%View full market & trade on Polymarket *  *  * Trump: US Warships Came 'Under Fire' By 'Lunatics' Iran says US violated ceasefire as explosions are reported in the UAE (via Newsquawk) IRAN SAYS US VIOLATED CEASEFIRE Iran’s Top Joint Military Command says: The US violated the ceasefire, The US targeted an Iranian oil tanker and another ship entering the Strait of Hormuz, Iran will respond “powerfully and without hesitation.” US SOURCE SAID CEASEFIRE NOT VIOLATED US officials, according to Axios/Fox reporting, say: US strikes were carried out in Qeshm port and Bandar Abbas, The strikes do not mean the war has restarted, The ceasefire is not over. ATTACKS Iranian media and officials also claimed: Three American destroyers were attacked near the Strait of Hormuz, Iranian missile fire forced enemy units to retreat after suffering damage. These claims are unverified. Air defences were activated multiple times around: Tehran Bandar Abbas Qeshm REGIONAL TARGETS Iran is accusing the US and “some regional nations” of striking targets in the Strait of Hormuz area. Iranian media outlets reported explosions in Abu Dhabi and Dubai: ISNA: explosions heard in Abu Dhabi and Dubai. IRIB/Fars: explosions heard in Abu Dhabi. There is no confirmation yet on cause, damage, or responsibility. Oil jumps on the developments: CENTCOM Forces Intercept Iran Counterstrikes CENTCOM confirms attack on Iran, and intercept of Iranian retaliation effort: "U.S. forces intercepted unprovoked Iranian attacks and responded with self-defense strikes as U.S. Navy guided-missile destroyers transited the Strait of Hormuz to the Gulf of Oman, May 7. Iranian forces launched multiple missiles, drones and small boats as USS Truxtun (DDG 103), USS Rafael Peralta (DDG 115), and USS Mason (DDG 87) transited the international sea passage. No U.S. assets were struck. U.S. Central Command (CENTCOM) eliminated inbound threats and targeted Iranian military facilities responsible for attacking U.S. forces including missile and drone launch sites; command and control locations; and intelligence, surveillance and reconnaissance nodes. CENTCOM does not seek escalation but remains positioned and ready to protect American forces." Confirmation of New US Military Attack Fox News confirming a nighttime US miliary attack on Iran's Qeshm port and Bandar Abbas, however, with US officials seeking to downplay that this marks a restart of the war and bombing campaign. This comes via Fox chief national security correspondent Jennifer Griffin: A senior US official tells me that it was a US military strike on Iran’s Qeshm port and Bandar Abbas moments ago but added this is NOT a restarting of the war or end to the ceasefire. The strike on one of Iran’s oil ports comes two days after Iran fired 15 ballistic and cruise missiles at UAE Fujairah Port, eliciting anger from Gulf countries after top Pentagon leaders said Tuesday that the Iranian strikes did not rise to the level of breaking the ceasefire, calling it low level attacks that didn’t rise to that level. There have been allegations of UAE involvement. Since the initial explosions, more follow up blasts have been reported via state media, along with some emerging images: US CONDUCTED STRIKES THURS IN THE STRAIT OF HORMUZ AREA: AXIOS IRAN CLAIMS IT FIRED MISSILES AT THREE US DESTORYERS: TASNIM Footage released by @IliaHashemicom purported to show air defence activity over Tehran tonight https://t.co/gv0FwwhiWN pic.twitter.com/WMRjne09jR — Faytuks News (@Faytuks) May 7, 2026 Further emerging images: 🇮🇷🇺🇸🇦🇪 The explosion reports near the UAE are from U.S. warships being targeted, approximately 52km off the coast. Developing. https://t.co/8c5x7wsosf — Mario Nawfal (@MarioNawfal) May 7, 2026 Iranian military statement: "Criminal and aggressive America and its supporting countries should know, Iran will respond decisively to any aggression." Explosions, Possible Hostile Action Reported on Coast During the night hours in Iran, state media has been issuing contradictory reports of mystery explosions along the Hormuz corridor. It's as yet unclear what's happening, but reports say a pier was struck near Bandar Abbas, with other southern areas witnessing possible drone activity, and return anti-air fire. There's little that's confirmable at this early point. Via DropSite: Iran’s IRGC-linked Tasnim News Agency reports that some Iranian sources are alleging “hostile action” by the UAE at Bahman Qeshm Dock near Bandar Abbas, though no official confirmation has been issued. Some reports claimed air defenses responded to two drones after multiple explosions were heard in the Bandar Abbas area. Other sources alleged the UAE, described by Tasnim as acting “as a tool of the Zionist regime,” was behind the incident at the dock. Tasnim emphasized the claims remain unconfirmed Iran's Mehr says air defenses shot down two 'hostile' drones over Bandar Abbas and Qeshm. 💢BREAKING: Iranian State Media Reports Commercial Pier Struck Near Bandar Abbas Iranian IRGC-affiliated outlet Fars News Agency reported Thursday that parts of the Bahman Qeshm pier, a commercial and passenger port on the eastern side of Qeshm Island at the entrance to the… pic.twitter.com/nxgmpDvvk4 — Drop Site (@DropSiteNews) May 7, 2026 Possible US military raid incident?... Iranian forces fired missiles at U.S. military units “that intended to seize an Iranian oil tanker” in the Strait of Hormuz, according to Iranian State TV. https://t.co/UwF4jVUoph — Ariel Oseran أريئل أوسيران (@ariel_oseran) May 7, 2026 Trump Reportedly Mulling 'Project Freedom' Restart After Gulf States Lift Curbs On Military Access The S&P 500 fell to session lows as oil spiked after the Wall Street Journal reported that the US is looking to restart Project Freedom as early as this week and that Saudi Arabia and Kuwait have lifted curbs on airspace access. Saudi Arabia and Kuwait have lifted restrictions on the U.S. military’s use of their bases and airspace imposed after the start of the American operation to reopen the Strait of Hormuz, according to U.S. and Saudi officials, easing a hurdle that had tripped up President Trump’s effort to move ships through the vital waterway. The Trump administration is now looking to restart the operation to guide commercial ships with naval and air support that it had paused after 36 hours this week, U.S. officials said. It isn’t clear when that could happen though Pentagon officials gave a timeline of as early as this week. The U.S. operation to force open the strait relied on an enormous fleet of aircraft to protect commercial ships from Iranian missiles and drones, making Saudi and Kuwaiti bases and airspace critical to its execution. The kneejerk reaction was higher oil prices... ...and the odds of a peace deal by the end of next week lower... Trump had suspended the effort, called Project Freedom, on Tuesday evening, after a phone call with the kingdom’s Crown Prince Mohammed bin Salman in which the de facto Saudi leader conveyed his concerns and advised the president of the decision about base and airspace restrictions, the Saudi officials said. The president tried to get the Gulf leader to back down, they said. Iran Reiterates Uranium 'Red Line' - Pushes Oil Up While this is nothing 'new' - the timing is key, given the US is still awaiting Tehran's response to the latest peace deal proposal, at a moment reports say the President Trump wants to wrap this up. Iran Secretary of the National Security Commission of the Parliament told Nour News: No uranium has left the country; The right to enrich uranium, the complete lifting of sanctions, and the release of the country's assets are non-negotiable red lines. Further he said that "Trump's claim about the withdrawal of 400 kilograms of uranium from Iran is a "political bluff and a pure lie." No uranium has left the country." The return of such firm rhetoric, and the likelihood that this signals a rejection of current Washington demands, sent oil climbing back up... Oil Slides on Reports of 'Breakthrough' Coming for Stuck Ships A very optimistic but unconfirmed early Thursday report: Sentiment in early morning trade was lifted after Al Arabiya reported that "the coming hours will witness a breakthrough for the situation of the ships stuck in the strait". "The American naval blockade in the Strait of Hormuz is likely to be lifted after Washington and Tehran reportedly reached an agreement in this regard," the Saudi media report says. "The agreement between both the sides on lifting the naval blockade was reached upon on Thursday (may 7) after US agreed for a gradual reopening of the Strait of Hormuz." Oil has been sliding through the morning... And here's a huge but from Politico: President Donald Trump’s constant belittling of Iranian leaders is alarming some Arab and U.S. officials familiar with the Middle East who worry that such insults could prove a major obstacle to truly ending a war that has strained the world economy. At the core of their concern is whether Trump is willing to show Tehran’s Islamist leaders enough respect to let them claim some level of victory, even if they agree to U.S. demands that leave them militarily weaker. “He badly wants this to end,” a senior Gulf Arab official familiar with the peace talks said of Trump. “But the Iranians are so far refusing to give him what he needs to save face and leave. And he does not seem to understand that they need to save face, too.” French Nuclear-Powered Carrier to Enter Red Sea, Gulf of Aden France and Britain could be poised to very belatedly join the US military in Middle East regional waters, according to movements of warships as well as fresh statements. Egypt and France on Wednesday oversaw the transit of the French aircraft carrier Charles de Gaulle through the Suez Canal as part of a southbound convoy, the Suez Canal Authority announced. The French Ministry of the Armed Forces has announced the nuclear-powered carrier is deploying to the Red Sea and Gulf of Aden as part of a multinational effort to restore navigation through the Strait of Hormuz, according to a fresh statement. So it's clear the convoy will remain largely in a background support role when compared to the US naval blockade in the Gulf of Oman region. Paris and London have also made clear their ships would only directly join Persian Gulf operations only once the war ended. (Reuters) - Iran’s President Masoud Pezeshkian said he met recently with Supreme Leader Mojtaba Khamenei, state media reported on Thursday, offering a first public account of him meeting Khamenei after the latter suffered severe wounds at the start of the U.S.-Israeli war on… — Phil Stewart (@phildstewart) May 7, 2026 On a technical level, the White House has just this week sought to pronounce that Operation Epic Fury has ended, and Project Freedom has begun. It's unclear whether the European allies buy this designation, however. Marcon has sought to make clear that France is not a party to the conflict, but Europe is seeking a diplomatic voice at the table after spending the last two months largely on the sidelines. Two Key Gulf Allies Reportedly Suspended Base, Airspace Access For US President Trump abruptly halted plans to support commercial shipping through the Strait of Hormuz after Saudi Arabia suspended US military access to its bases and airspace for the operation, two US officials told NBC. Kuwait is reported to have imposed similar restrictions in wake of being on the receiving end of Iranian missiles. According to the officials, Trump caught Gulf allies off guard when he announced Project Freedom on Truth Social, triggering anger in Riyadh. Saudi Arabia is said to have responded by informing Washington that US forces would not be permitted to operate aircraft from Prince Sultan Air Base southeast of Riyadh or transit Saudi airspace in support of the mission. Other Gulf allies were also reportedly surprised by the development, with Drop Site News also reporting Kuwait has made a similar move to cut or restrict base access. But here is how Trump framed the pause at the time in a Truth Social post: "Based on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran and, additionally"... and he also said it was necessary "to see whether or not the Agreement can be finalized and signed." By the following day it became clear that the two sides were no closer to getting to the negotiating table, much less actually inking an agreement to end the war. President Trump has laid out a clear choice for Iran: Reach a deal, or the bombing resumes. pic.twitter.com/isThSrLwo9 — Trey Yingst (@TreyYingst) May 7, 2026 The White House is meanwhile denying the main content of the NBC report, with one official insisting that "regional allies were briefed in advance." First Chinese Tanker Attacked Near Hormuz As Beijing Urges Waterway Reopened There have certainly been escalating tensions in the Strait of Hormuz this week amid a wave of Iranian attacks on commercial ships after a U.S. military effort to escort merchant vessels through the maritime chokepoint. By midweek, tensions had simmered, and Iran is still reviewing a 14-point U.S. proposal to end the war, with Tehran expected to send its response to Pakistani mediators later today. President Trump said talks with Iran have been "very good" and suggested a deal remains possible. Iran's Foreign Ministry confirmed the U.S. proposal is still under review. But when chaos erupted on the world's most critical waterway at the beginning of the week, a new report said that a large refined-products tanker owned by a Chinese shipowner was attacked off the UAE's Al Jeer port on Monday, according to Reuters. Beijing-based business media outlet Caixin reported that the vessel's deck erupted in flames after the attack. The outlet noted the vessel was marked "CHINA OWNER & CREW." A shipping industry source told Caixin that this was the first time a Chinese tanker was hit in the three-month-long war, calling it "psychologically very hard to accept." Shortly after the Chinese tanker was attacked, it became clear why, two days later on Wednesday, China's Foreign Minister Wang Yi called for the swift reopening of the Hormuz chokepoint. "The international community shares a common concern for the restoration of normal and safe passage of the strait," Foreign Minister Wang Yi told Iran's Abbas Araghchi, according to an official Chinese statement. "China hopes that the parties concerned will respond to the strong appeal of the international community as soon as possible." China's urgency to resolve the highly disrupted Hormuz chokepoint comes just over a week before President Trump flies to Beijing to meet with President Xi Jinping. The big question is whether China will cooperate with the U.S. to end the conflict and reopen the Strait, as much of the tanker flow through this critical waterway is destined for Asia, and the disruption has led to fuel shortages and soaring prices of crude oil and related products in the region. "China likes to present itself as a great stabilizing force in the world, but imagine if they had a genuine diplomatic achievement, such as brokering the opening of the Strait of Hormuz, as proof of that," Richard McGregor, senior fellow at the Lowy Institute, told Bloomberg. He noted that some in Beijing would advocate for using the moment to "squeeze some concessions out of the US" on issues such as Taiwan. The first Chinese tanker attacked in the U.S.-Iran conflict, as well as the upcoming Trump-Xi summit, might be the catalysts for the international community to pressure Iran into a peace deal with the U.S. Meanwhile, a French aircraft carrier is transiting through the southern part of the Suez Canal and into the Red Sea, preparing to restore Hormuz tanker flows. More Regional Developments via Newsquawk Al Arabiya reported that "the coming hours will witness a breakthrough for the situation of the ships stuck in the strait", spurring pressure in the crude complex. Iran is expected to provide its reply to the US proposal for ending the war to mediators on Thursday, according to CNN, citing a regional source. US President Trump could turn to military action without an agreement with Iran ahead of the China trip, according to Axios, citing US officials. Iran is expected to provide its reply to mediators on Thursday, CNN reported citing a regional source. "Arabic sources: Reaching understandings regarding easing the siege in exchange for the gradual opening of the Strait of Hormuz ", Al Arabiya reported; "The coming hours will witness a breakthrough for the situation of the ships stuck in the strait". Pakistani Foreign Ministry spokesperson said, "We do not talk about war and instead talk about dialogue and diplomacy. However, if any aggression similar to what we saw last year, we will respond; Pakistan will respond just as it did", Mallick posted. Pakistani Foreign Ministry Spokesperson said "We have not yet received a response from Iran regarding the US amendments", Al Jazeera reported. "Pakistani source to Al Arabiya said Iran may hand over its response to the US proposal to the Pakistani mediator today", Al Arabiya. "No arrangements for any direct meetings between the Iranians and the Americans so far.". "Contacts with the Iranians are ongoing and there are no obstacles hindering continued". "Discussions are ongoing regarding the status of the Strait of Hormuz, and reaching understandings is still possible". Pakistani Foreign Ministry said "We expect an urgent agreement between Iran and the United States", Al Araby reported. "Israel was informed that Iran has agreed to transfer its stockpile of 60% enriched uranium to a third country that remains unknown", Sky News Arabia reported citing Israeli Channel 12. Pakistani Foreign Ministry spokesperson, on US-Iran agreement, said "we would expect an agreement sooner rather than later", Pakistani journalist Mallick posted. "We will welcome any settlement wherever that takes place, if it takes place in Islamabad, it would be an honour and privilege.”. The proposed agreement between the US and Iran may limit the IDF's action in Lebanon, Israeli press reported citing an Israeli official. US President Trump, on Iran, said it will all work out very quickly. IDF said it has intercepted suspicious aerial target launched from Lebanon towards Israel following sirens that sounded in Manara, Margaliot and Kiryat Shmona. Lebanon's PM Salam said it is not seeking normalisation with Israel and it is too early to discuss any possible meeting with Israeli PM Netanyahu. Iran has issued a message to commercial vessels in the Strait of Hormuz, saying Iran's port is fully prepared to provide general maritime services and support to the vessels, IRNA reported. US President Trump could turn to military action without an Iran agreement ahead of the China trip, Axios reported citing US officials. US President Trump's reversal on his plan to help ships go through the Strait of Hormuz came after Saudi Arabia suspended the US's ability to use its bases and airspace to carry out Project Freedom, NBC reported citing US officials. IRGC Navy Political Affairs Official said we will impose our control over the Strait of Hormuz, and any attack will be met with a plan beyond the enemy's calculations, Al Jazeera reported. Tyler Durden Thu, 05/07/2026 - 17:30