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  • AI regulation faces political deadlock as calls grow for Congress to act

    AI regulation faces political deadlock as calls grow for Congress to act

    The debate over artificial intelligence safety and federal regulation has erupted into open conflict across the U.S. political landscape this week, with deep divisions between the White House, congressional leaders, and even within industry and policy circles over whether new guardrails are needed to rein in rapidly advancing AI technology.

    On Monday, President Donald Trump delivered a blunt rejection of growing calls to slow AI development and impose government oversight. Taking to social media, he dismissed warnings that AI could pose existential threats to humanity as a “HOAX”, arguing that the only guardrails the sector requires is a “strong and smart” sitting president.

    Trump’s uncompromising stance has predictably split Capitol Hill along partisan lines, and all but dashed hopes of moving forward with new AI safety legislation before the November 2026 midterm elections. Senior congressional Democrats and top AI industry leaders have directly pushed back against the president’s position, issuing urgent warnings about unregulated AI growth and demanding immediate congressional action.

    With Republicans holding majorities in both the House of Representatives and the Senate, the party remains largely aligned with Trump’s opposition to new federal controls, making passage of any regulatory bill virtually impossible in the current legislative session. Even if a bill were to advanced through both chambers, Trump’s public rejection of regulation means he would almost certainly veto any measure, eliminating any path for executive approval this year.

    Beyond partisan opposition, a rapidly approaching congressional recess has created an additional, immediate barrier to action. The House is scheduled to adjourn at the end of this week, remaining out of session until after the midterm elections in early November. Top Democrats, including House Minority Leader Hakeem Jeffries, are demanding that the recess be delayed to allow time to vote on AI safety safeguards.

    “Congress should not leave town until something is done decisively to protect the safety and the wellbeing of the American people,” Jeffries told reporters Monday. A coalition of House Democrats has sent a formal letter to Republican Speaker Mike Johnson, who holds sole authority to decide whether to delay the recess, urging extra time for debate on AI regulation. “Reasonable minds may disagree about precisely how Congress should regulate this rapidly evolving technology. We cannot disagree about the imperative for Congress to act,” the letter reads. Even some Republican lawmakers, including Congresswoman Anna Paulina Luna, have publicly called for a special session to address AI risks.

    Still, congressional observers see almost no chance the recess will be delayed or a special session called. When pressed by reporters Monday, Johnson gave no indication he would move forward with a vote this week, calling AI regulation a “very complex issue”. He noted that Trump would soon host AI industry executives at the White House to discuss corporate responsibility for safety, emphasizing that the priority is pushing AI companies to self-regulate rather than enacting new federal laws. “We want to emphasise the necessity of [AI companies] providing safe products and self-regulating,” Johnson said, adding only that Congress may potentially play a role at some future, unspecified date.

    Compounding the legislative gridlock is a lack of consensus even among lawmakers who agree regulation is needed. Congressional Democrats are divided on what form AI oversight should take, and even if the party flipped control of both chambers in November’s midterms, there is no guarantee that a unified bill could move forward quickly. Lawmakers have already put forward a wide range of competing proposals on Capitol Hill, from mandatory independent safety reviews and a federal “kill switch” for high-risk AI models, to a complete moratorium on new AI data center construction put forward by Senator Bernie Sanders.

    Bipartisan talks are ongoing on two separate leading proposals. In the Senate, Republican Majority Leader John Thune and Democratic Senator Amy Klobuchar are drafting a bill that would require major AI companies to submit to federal oversight. “You don’t want to stifle innovation,” Thune explained Monday, “but I think you also want to make sure that the more advanced threats can be mitigated.” In the House, Democratic Congresswoman Lori Trahan has worked for months with Republican Congressman Jay Obernolte on the bipartisan Frontier Act, which would grant the federal government authority to halt deployment of an AI model if officials confirm it poses an “imminent catastrophic risk”, and require independent third-party audits of leading AI research labs. Trahan told the BBC that time is running out for congressional action, warning that AI will eventually reshape every corner of American life. “The federal government needs to put guardrails in place. I don’t think we have any more time to wait. This is all hands on deck,” she said, while acknowledging that no movement is likely this week.

    Most Republican policymakers have coalesced around the position that AI companies should bear primary responsibility for managing safety through self-regulation, a view echoed by many conservative allies of the president. David Sacks, one of Trump’s top AI advisors, told CBS News Monday that warnings of existential AI risk from industry insiders have been wildly overblown. “I think this is becoming a panic,” Sacks said. He argued that the onus falls entirely on AI developers to ensure their products are safe, pushing back against Anthropic co-founder Dario Amodei — who has publicly called for a slowdown in advanced AI development, warning the technology grows “more powerful by the day”. “If you can’t control it, then don’t do it,” Sacks said of Amodei’s position.

    Industry and policy experts are also split on the path forward. Some analysts agree that in the absence of congressional action, AI companies must take the lead on responsible self-governance. “You might want an act of Congress, and I would love a congressionally mandated regime that requires safety and testing and bias testing,” said Asad Ramzanali, director of AI & Technology Policy at Vanderbilt University. “But absent that action, the companies have autonomy.” Other observers have expressed skepticism that the recent wave of warnings from AI leaders is rooted in genuine public safety concern, rather than strategic positioning. Trevor Traina, a tech executive who served as a diplomat during Trump’s first term, argued that most ordinary Americans have yet to encounter harmful uses of AI, and suggested leading AI developers are using safety warnings to gain competitive advantage. “We’re relying on the tweets of a half-dozen people who are all vying for perceived supremacy. The cynic in me thinks, ‘Are they really concerned, or are they trying to prove which model is the most awesome?’” Traina said.

    Many policy analysts agree that meaningful federal AI regulation is not on the horizon in the near future. Alexandra Reeve Givens, CEO of the non-profit Center for Democracy and Technology, noted that the Trump administration has already implemented a fully voluntary framework for AI companies to submit their models for government assessment — but the details of the framework remain classified, with no public transparency or clear legal standards governing the process. Appeals to release the framework publicly have been ignored by the administration, Givens said.

    Combined with a lack of partisan consensus and political will on Capitol Hill, the administration’s approach has made passing binding AI legislation extremely difficult. “There is no question that federal legislation is challenging in this climate, but Congress also has to grapple with which of the many types of AI risk need to be addressed,” Givens said. “It’s not that AI is ungovernable, it’s that each risk needs a tailored approach.”

  • Mahmoud Khalil sues Columbia University for allowing harassment that led to his ICE arrest

    Mahmoud Khalil sues Columbia University for allowing harassment that led to his ICE arrest

    On a Monday press conference in New York City, former Columbia University student Mahmoud Khalil, alongside a campus pro-Palestine student group and its leader, launched a new federal lawsuit against the elite Ivy League institution, accusing it of enabling systemic discrimination that directly cleared the path for his 2025 arrest by U.S. Immigration and Customs Enforcement (ICE).

    Joining Khalil as co-plaintiffs are the Palestine Working Group (PWG)—a student organization based at Columbia’s School of International and Public Affairs (SIPA)—and PWG president Mohammed Ibrahim Zubairi. Named as defendants in the suit are Columbia’s Board of Trustees and SIPA Dean Keren Yarhi-Milo. The legal filing outlines that the university displayed deliberate indifference to repeated reports of severe, sustained, coordinated harassment targeting the plaintiffs, singling them out because of their pro-Palestine advocacy, their Arab and Muslim identities, their national origins, and their status as non-U.S. citizens. Court documents identify Khalil as a Palestinian Muslim holding Algerian citizenship, and Zubairi as a Pakistani Muslim with Pakistani citizenship.

    Khalil, a former U.S. green card holder married to a U.S. citizen, was taken into ICE custody in March 2025 as part of the Trump administration’s campaign targeting non-citizens deemed to hold anti-Israel rhetoric. Plainclothes agents revoked his student visa and green card during the arrest, and he remained detained in an ICE facility for 104 days—a period that forced him to miss the birth of his first child. He was ultimately released on a federal court order pending the outcome of federal proceedings against him, and his case quickly garnered international public attention.

    In remarks to reporters Monday, Khalil emphasized the lawsuit does not blame the university for ICE’s actions directly, but for creating conditions that made his detention possible. “If only I had legal support [from the university] before my detention, I don’t think ICE would have came and kidnapped me,” he said. “That’s why I’m not suing Columbia for what ICE did. I’m suing them for all the groundwork that they did before my abduction to make my abduction possible. Because without Columbia’s intentional disregard to my safety, I don’t think ICE would have came after me.”

    The legal complaint details that in the five months after mass pro-Palestine protests erupted across Columbia’s campus in 2024 in response to Israel’s military campaign in Gaza, Khalil, Zubairi, and other PWG members repeatedly reported harassment and doxxing targeting pro-Palestine students to university administrators, including directly to SIPA’s dean. According to the suit, school officials failed to intervene to stop the ongoing, pervasive harassment, and instead retaliated against PWG: university leaders repeatedly labeled the group’s events as security threats, unreasonably disrupting its ability to operate as a recognized student organization. Khalil added that he had met repeatedly with university leadership in the months before his arrest to plead for protection for the campus Palestinian community, but his requests were ignored. He also noted that the university ultimately banned two leading pro-Palestine student groups, Students for Justice in Palestine and Jewish Voice for Peace, after the protests began.

    “Our safety and well-being did not serve the ideological project [Columbia’s] Board of Trustees was protecting, so they traded us away,” Khalil told reporters.

    In a statement provided to Middle East Eye in response to the new lawsuit, a Columbia spokesperson reaffirmed the university’s stated commitment to campus safety. “Creating a campus environment where every member of our community feels welcome, supported, and safe is fundamental to who we are as a University,” the emailed statement read. “It is also a responsibility we take seriously. Columbia is committed to protecting our community from discrimination and harassment, and responding promptly and appropriately when concerns arise.”

    Monday’s lawsuit marks the second major legal action against Columbia over alleged anti-Palestine discrimination in as many months. Last month, a separate group of current and former Palestinian students and staff filed suit in New York State Supreme Court, seeking monetary damages under New York City’s Human Rights Law, which bans discrimination based on race and national origin, among other protected characteristics. That complaint alleges that Columbia has subjected Palestinian students, faculty, and staff to unequal treatment in the period following the October 7, 2023 Hamas attacks and the subsequent Israeli military campaign in Gaza. Plaintiffs in that case accuse the university of actively amplifying racially, ethnically, and politically motivated targeting of Palestinians, failing to protect Palestinian community members from harassment, and subjecting pro-Palestine activists to biased, unfair disciplinary proceedings. One key allegation in that suit notes that Columbia hired private investigators to surveil students who participated in a March 2024 campus event called “Resistance 101,” after which six students were suspended and removed from university housing.

    Both legal actions come after more than two years of ongoing controversy surrounding Columbia’s handling of campus protests against Israel’s war in Gaza. In July 2025, Columbia reached a settlement agreement with the Trump administration to end federal investigations into alleged violations of anti-discrimination law and restore frozen federal research funding. Under the terms of that deal, the university agreed to pay $200 million to the U.S. government and an additional $21 million to resolve an Equal Employment Opportunity Commission investigation into antisemitism claims from Jewish employees. Columbia did not admit any wrongdoing nor accept the federal government’s finding that it had violated Title VI of the Civil Rights Act. The university also settled a separate lawsuit brought by Jewish plaintiffs in February 2026, which alleged Columbia had failed to protect Jewish and Israeli students from antisemitism on campus.

    Palestinian student activists and free speech advocates have for years repeatedly accused Columbia of disproportionately disciplining students and faculty who voice opposition to Israeli policy, a pattern that the new federal lawsuit brings to federal court.

    This report is from Middle East Eye, an independent media outlet focused on coverage of the Middle East, North Africa and global affairs related to the region.

  • Watch: Selena Gomez, Zendaya and other stars light up Emmys red carpet

    Watch: Selena Gomez, Zendaya and other stars light up Emmys red carpet

    Hollywood’s biggest names stepped out for one of television’s most prestigious nights on Sunday, trading the iconic crimson red carpet for a stunning ocean-blue alternative ahead of the Primetime Emmy Awards, the annual ceremony that celebrates outstanding achievement in U.S. television programming. Among the most anticipated arrivals were global superstars Selena Gomez and Zendaya, both of whom turned heads with bold, fashion-forward ensembles that quickly dominated social media conversation. The pair were joined by dozens of A-list actors, directors, producers, and other industry luminaries, who used the high-profile red carpet (reimagined for this year’s event) as a platform to showcase cutting-edge designer couture and catch up with peers ahead of the televised ceremony. Organizers opted for the blue carpet redesign as a subtle thematic nod to this year’s event, which has drawn record viewership interest following a year of standout original programming across broadcast, cable, and streaming platforms. Fans around the world tuned in to live coverage of the red carpet arrivals hours before the first award was handed out, with many taking to social platforms to share their favorite looks and cheer on their favorite television stars and programs. The Primetime Emmys, widely considered the highest honor in American television, has long kicked off its broadcast with the star-studded red carpet procession, a cultural tradition that gives audiences a rare glimpse at the industry’s most beloved figures outside of their on-screen roles.

  • US confirms for first time it has deployed space weapons

    US confirms for first time it has deployed space weapons

    In a historic and consequential announcement that marks a new phase of military expansion into outer space, the United States has formally confirmed it has placed an offensive offensive space weapon into Earth’s orbit, the first public acknowledgment of such capabilities by any world power.

    Troy Meink, US Secretary of the Air Force, told attendees at the annual Air, Space and Cyber Conference on Monday that positioning a weapon in orbit is a critical measure to protect US military forces from adversarial hostile actions. Meink emphasized that the US military is fully prepared to address rapidly evolving threats in the space domain, but declined to provide further details on the system’s operational capabilities or the exact timeline of its deployment.

    US military leaders have repeatedly justified expanding space-based military capabilities in recent years by pointing to emerging counter-space programs developed by Russia and China, which they claim are designed to target and disable American satellite infrastructure in any future large-scale conflict. The framework for this expanded military presence in space traces back to the Trump administration, which identified space-based defensive systems and interceptor missiles as core components of its proposed ‘Golden Dome’ national missile defense shield, built to intercept airborne and missile threats targeting the US homeland.

    The 1967 Outer Space Treaty universally bans the deployment of weapons of mass destruction in orbit, but major space-faring nations including the US, Russia, and China have all actively developed other space capabilities that fall outside the scope of the existing treaty, most notably systems designed to neutralize an adversary’s satellite networks. Satellites are the backbone of modern military operations, enabling encrypted communications, long-range surveillance, and precision navigation for armed forces around the globe.

    Last year, former President Donald Trump issued an executive order that formally expanded the mission scope of the US Space Force, clarifying that the branch is responsible not only for defending American space assets but also for conducting offensive operations in the domain. Established in 2019, the US Space Force is the first new branch of the American military created in more than 70 years, originally founded to secure hundreds of US military and intelligence satellites operating in orbit.

    A spokesperson for the US Space Force laid out the branch’s core doctrine in a statement, explaining that ‘space control encapsulates the mission areas required to contest and control the space domain – employing kinetic and non-kinetic means to affect adversary capabilities through disruption, degradation and even destruction, if necessary.’ The spokesperson added that these dual-capability systems can be deployed for both offensive and defensive operations at the direction of US combatant commands.

    The US confirmation comes against a backdrop of growing international concern over rising militarization of outer space. Earlier this year, declassified intelligence assessments revealed that two Russian satellites have reportedly intercepted communications from at least 12 European satellites since Russia launched its full-scale invasion of Ukraine in 2022. Security analysts warn that these interceptions could have allowed Russian intelligence services to access sensitive transmitted data, and in a worst-case scenario, potentially seize partial or full control of the targeted European satellites.

    In 2024, the US publicly accused Russia of launching a satellite that it assesses carries capabilities to attack other orbiting space assets, a claim that Russia has never publicly addressed. The US Space Force currently assesses that China is integrating advanced offensive and defensive space capabilities into its broader military modernization program, while Russia formally recognizes space as an independent warfighting domain and views control of space as a decisive factor in determining the outcome of future major conflicts.

  • Mass nesting brings swarms of turtles to Mexican beach

    Mass nesting brings swarms of turtles to Mexican beach

    In a remarkable annual natural phenomenon, thousands of sea turtles have swarmed to La Escobilla Beach in the Mexican state of Oaxaca for a mass nesting event that unfolded over just 48 hours, according to officials from the local wildlife sanctuary.

    La Escobilla Beach is one of the most critical nesting sites in the world for olive ridley turtles, a species classified as vulnerable by the International Union for Conservation of Nature. Mass nesting, also known as arribada (arrival in Spanish), is a unique reproductive behavior where thousands of female turtles emerge from the ocean simultaneously to lay their eggs on the same stretch of sand.

    Sanctuary management teams have reported that this year’s arrival aligns with historical nesting patterns, and ongoing monitoring efforts are already underway to protect the nesting females and their clutches from potential threats including predators, human disturbance, and coastal erosion. Local conservation groups work year-round to maintain the protected status of this beach, which has become a vital stronghold for the long-term survival of this iconic marine species.

    This natural event also draws attention to the importance of coastal conservation efforts in Mexico, as climate change and habitat loss continue to pose challenges to sea turtle populations globally. The successful mass nesting at La Escobilla is seen as a positive indicator of the effectiveness of current conservation strategies in the region.

  • Nato jets down drone that entered Lithuanian airspace

    Nato jets down drone that entered Lithuanian airspace

    In an overnight security operation that underscores heightened vigilance along NATO’s eastern flank, NATO fighter pilots intercepted and destroyed an unauthorized drone that breached Lithuanian airspace, according to an official announcement from Lithuanian President Gitanas Nausėda.

    Lithuanian authorities confirm the unmanned aircraft most likely crossed into southern Lithuania, close to the nation’s second-largest city Kaunas, from neighboring Belarus shortly after midnight local time on Tuesday. President Nausėda confirmed the outcome of the operation in an official post published to the social platform X, writing simply, “A drone that just entered Lithuanian airspace was destroyed by NATO fighter jets.”

    As of Tuesday, the exact origin and operator of the downed drone remain unconfirmed, a spokesperson for Lithuania’s national crisis management center clarified to reporters. Hours before the intercept, drone intrusion warnings had activated across the capital city Vilnius and its surrounding suburban areas.

    Lithuania’s Ministry of Defense highlighted the rapid, coordinated response to the incursion, crediting both Lithuanian armed forces personnel and Italian pilots assigned to the permanent NATO Air Defence Mission for their quick action. In his social media statement, President Nausėda emphasized the critical importance of this level of readiness amid Moscow’s ongoing full-scale invasion of Ukraine. “With Russia intensifying its aggression against Ukraine, such readiness is vital for our region,” he wrote. “Together with our NATO Allies, Lithuania will defend its airspace.”

    Moscow has not yet issued any public comment on the Tuesday incident. The incursion comes amid a string of similar unauthorized drone sightings across the Baltic region in recent weeks, and against a geopolitical context that has placed heightened scrutiny on NATO’s eastern border security. Lithuania shares extensive southern and eastern border territory with Belarus, a longstanding close military and political ally of Russia that has openly supported Moscow’s invasion of Ukraine.

    This most recent incident is not the first drone incursion recorded in Lithuania this month. On September 13, reports of an unidentified unmanned object crossing into Lithuanian airspace from Belarus prompted an investigation, which concluded the object likely traversed Lithuanian territory before exiting into Russian airspace. That earlier incursion did not reach the threshold to trigger national air threat alerts, authorities confirmed.

    Since Russia launched its full-scale invasion of Ukraine in early 2022, unauthorized military drone incursions into sovereign European airspace have grown steadily more frequent. In May of this year, a drone alert in Vilnius forced residents to seek emergency shelter, disrupted commercial air traffic and suspended regional rail services for a brief period. So far in 2024, NATO fighter jets have been scrambled multiple times to intercept and down stray Ukrainian drones that accidentally crossed into the airspace of fellow Baltic NATO members Estonia and Latvia. Ukraine has repeatedly attributed these accidental cross-border incursions to Russian electronic warfare systems, which Moscow uses to hijack and redirect the flight paths of Ukrainian unmanned aircraft away from their intended targets.

    Lithuania, Estonia and Latvia all gained membership in NATO in 2004, and as alliance members, they are protected by Article 5, the cornerstone collective defense provision that codifies that an armed attack against one member is considered an attack against the entire alliance. This security framework has anchored increased NATO military presence and air patrol operations across the Baltic region since 2014, when Russia first annexed Ukraine’s Crimea peninsula, and has been further reinforced following the 2022 full-scale invasion.

  • Supreme Court blocks Trump’s plan to restrict mail-in ballots

    Supreme Court blocks Trump’s plan to restrict mail-in ballots

    In a high-stakes legal ruling that marks a major political setback for former President Donald Trump and his administration, the U.S. Supreme Court has rejected a controversial plan to tighten restrictions on mail-in voting ahead of the 2026 November midterm elections. The nation’s highest court voted to leave in place a temporary injunction issued by a lower federal judge, which halted the U.S. Postal Service (USPS) from implementing the new rules for mail-in ballots put forward by the Trump White House. The outcome marked a surprise split among the court’s conservative wing, with Justice Brett Kavanaugh joining the court’s liberal majority to uphold the block, even as he signaled openness to ruling in the administration’s favor after the election cycle concludes.

    The policy at the center of the legal battle originated from a March executive order signed by Trump, who has long claimed widespread electoral fraud plagues U.S. elections. The order directed USPS to only deliver mail-in ballots to voters who appear on official state citizen registration lists, a change that critics warned would disenfranchise thousands of eligible voters. Multiple states joined voter advocacy groups to challenge the rule in court, arguing that the Trump administration’s overreach into election administration violated states’ constitutional authority to manage their own electoral processes.

    In his concurring opinion, Kavanaugh acknowledged that there was a reasonable argument that the final policy could fall within the statutory authority granted to USPS. However, he wrote that implementing the new regulation just months before a national election would qualify as arbitrary and capricious, writing that disrupting the election process so close to voting date carried unacceptable risks for voters. Only two conservative justices, Samuel Alito and Clarence Thomas, dissented from the majority ruling. In their dissent, Alito and Thomas dismissed the legal challenge to Trump’s executive order as a long-shot “Hail Mary pass” unlikely to succeed in future litigation, arguing that USPS holds broad statutory authority to regulate the delivery of mailed materials, including election ballots.

    This ruling comes amid ongoing national debate over voting access and election integrity, with mail-in voting emerging as one of the most polarizing election policy issues in U.S. politics since the 2020 presidential election. This is a developing breaking news story, with additional details expected to be released in coming updates. Readers can access real-time updates via the BBC News mobile app, or by following @BBCBreaking on X for the latest alerts.

  • Attack on Saudi Arabian pipeline may cut four percent of world’s oil supply

    Attack on Saudi Arabian pipeline may cut four percent of world’s oil supply

    A recent drone strike targeting Saudi Arabia’s critical East-West Pipeline has triggered major disruptions to global oil markets, with industry assessments indicating repairs could take five to six weeks to complete, according to senior industry sources cited by Reuters. The outage removes approximately 4 million barrels per day of Saudi crude – equal to 4% of total global oil supply – from international markets, sending energy prices soaring across the board at the start of the trading week.

    On Monday, Brent crude, the global benchmark for oil pricing, climbed 3% to trade near the $108 per barrel mark. This upward momentum follows a sharp rally last week, driven by a rapid Houthi offensive that secured the group full control of Yemen’s side of the Bab el-Mandeb, a strategically vital Red Sea chokepoint through which millions of barrels of Saudi oil are shipped daily.

    Market analysts warn that publicly quoted benchmark prices do not fully capture the extreme cost increases being passed on to commercial buyers, particularly for refined petroleum products such as diesel. Gregory Brew, a leading energy analyst at risk consultancy Eurasia Group, noted on social platform X that physical cargoes of Omani crude are currently selling for as high as $121 per barrel, while Murban crude loaded at the United Arab Emirates’ Fujairah port is trading at $131 per barrel – far above benchmark levels.

    The sudden price spike comes at a particularly fragile moment for the global economy, which is already struggling to rein in persistent high inflation and adapt to sharply higher borrowing costs across major developed and emerging markets.

    In comments made on Monday, former U.S. President Donald Trump pushed back against claims that rising diesel prices stem from the ongoing U.S.-Israeli military campaign against Iran, instead blaming attacks on energy infrastructure carried out by Russia and Ukraine. He added that the two nations have reached an agreement to temporarily halt such targeting operations.

    New satellite imagery published by analytics firm Vantor on Sunday confirms extensive damage to a key pumping station along the East-West Pipeline at al-Mesabaah, located southeast of the Saudi city of Medina. Last week, Saudi officials stated the drone attack was launched from Iraqi territory, where a network of Shia-majority militias aligned with Iran operate. Both the Yemeni Houthi movement and Iraq’s Popular Mobilisation Forces (PMF) are part of Iran’s so-called “Axis of Resistance” alliance, though the Houthis exercise a greater degree of operational independence from Tehran than other member groups.

    For both Iran and the Houthis, the disruption of the pipeline represents a significant strategic gain, as it lays bare critical security vulnerabilities in Saudi Arabia’s energy export infrastructure. The Houthis are seeking to leverage their recent battlefield gains to expand the territory under their control in Yemen, while Iran aims to strengthen its strategic dominance over the Strait of Hormuz, another chokepoint through which roughly 20% of global oil trade passes.

    The East-West Pipeline has served as a critical bypass for Saudi oil exports for decades. Constructed in the 1980s during the Iran-Iraq War specifically to offer an alternative route around the Strait of Hormuz, the pipeline runs from Saudi Arabia’s giant Gulf coast oil fields to the Red Sea export terminal at Yanbu. In recent years, it has allowed Saudi Arabia to maintain roughly two-thirds of its pre-conflict export volumes despite a de facto blockade imposed by Iran on Gulf shipping through Hormuz, carrying 4 million bpd for international markets before the attack.

    Beyond the immediate pressure on Saudi Arabia, the pipeline shutdown is also prompting warnings for other Gulf Cooperation Council states that have invested in alternative export routes to avoid dependence on the Strait of Hormuz. The United Arab Emirates currently operates a smaller pipeline that terminates at Fujairah on the Gulf of Oman to bypass Hormuz, but that infrastructure sits far closer to Iranian territory than Saudi Arabia’s East-West Pipeline, raising questions about its own vulnerability to similar attacks.

  • Mitch McConnell returns to Senate after three-month absence

    Mitch McConnell returns to Senate after three-month absence

    After a three-month absence triggered by a fall that landed him in the hospital, long-serving Senate Republican leader Mitch McConnell made his public return to Capitol Hill on Monday, marking the first day of the chamber’s reconvening after a five-week recess. The 84-year-old Kentucky Republican, who has held his Senate seat for 41 years and stands as the longest-serving party leader in Senate history, stepped back to his duties just as lawmakers enter a critical final stretch of legislative work ahead of November’s midterm elections, contests that will redefine the partisan balance of power in Congress. McConnell is not seeking re-election, and his current term is set to expire in January.

    In comments to reporters ahead of casting a vote on a judicial nomination, McConnell acknowledged that his road to recovery has been far from straightforward, complicated by lingering effects of childhood polio that he has lived with for decades. “My recovery has been a long and often frustrating process, and the lingering effects of childhood polio haven’t made it any easier,” McConnell said. “I’m still not quite back to 100%,” he added, noting that he “will do my best to be present for tough votes.” In his concluding statement, McConnell expressed his eagerness to resume regular work on behalf of his constituents back in Kentucky: “I’m glad to get back to more of business as usual on their [fellow Kentuckians’] behalf this month.”

    Footage captured of McConnell leaving his Washington D.C. residence showed the veteran lawmaker being assisted into a vehicle via wheelchair, though he appeared on the Senate floor just a short time later, where he was greeted by colleagues from both sides of the aisle. McConnell’s last recorded vote dated back to June 11, and as questions about his whereabouts grew over the following weeks, his office finally released a statement a month after the incident clarifying that he had fallen at his home on June 14 and been hospitalized to treat mild pneumonia that developed after the accident.

    McConnell’s extended absence sparked widespread political speculation about the state of his health, with Senate Democrats formally calling for greater transparency around the leader’s medical condition. This is not the first time public concerns have been raised about McConnell’s health in recent years: he suffered minor injuries from a fall in 2024, and a year prior, another fall left him with a concussion that required another hospital stay. In 2023, a public press conference appearance where McConnell froze mid-speech and stared blankly into space for an extended period also fueled widespread questions about his mental acuity.

    As Congress gets back to work, McConnell’s return brings a degree of stability to Senate Republican proceedings as the party fights to hold or expand its majority in the upcoming elections. With McConnell set to retire at the end of his term, the race to pick his successor as the top Republican in the Senate is already underway, though attention this month remains focused on the legislative agenda that will shape both parties’ closing arguments to voters ahead of November.

  • Why cash continues to thrive even as India’s digital payments grow

    Why cash continues to thrive even as India’s digital payments grow

    Against the backdrop of India’s unprecedented boom in digital finance, a striking and counterintuitive trend has emerged: as the country’s real-time digital transaction network Unified Payments Interface (UPI) surges toward 1 billion daily transactions, the volume of physical cash in circulation continues its steady double-digit growth. The Reserve Bank of India (RBI), the nation’s central bank, now manages a total of 176 billion circulating banknotes, printing 28 to 30 billion new notes across six denominations each year while retiring roughly 21 billion worn out bills – an enormous national logistics operation that demands constant planning and resource allocation.

    This phenomenon, dubbed the “cash paradox” by RBI Deputy Governor Shirish Chandra Murmu, has presented a unique challenge to central bank planners. Speaking at a gathering of global central bankers in Jakarta last month, Murmu noted that while cash’s share of routine individual transactions has declined as digital payments gain widespread adoption, the total volume of currency in circulation continues to expand at double-digit rates. This unpredictable combination makes long-term forecasting of cash demand far more complex, complicating decisions around production capacity and distribution infrastructure.

    To contextualize India’s massive cash stockpile, Murmu offered a global comparison: at the end of last year, the United States had roughly 56 billion dollar bills in circulation, while the Eurozone counted just 30 billion euro notes. One important caveat to this comparison is that India’s circulation count is inflated by a higher share of low-denomination notes, which require more individual bills to equal the same transaction value.

    The puzzle of India’s growing cash supply is not that Indians still use cash – as recently as 2019, 94% of all consumer transactions were still cash-based, according to research by economists Anirudh Tagat, Mehmet Ozmen and Pushpa Trivedi. What confounds analysts is that cash volumes keep rising even as digital payments capture an ever-larger share of daily transactions. Economists point out this parallel growth of digital and physical money is not unique to India; Bank for International Settlements research shows the same pattern has played out globally since the 2007-2008 global financial crisis, and India is simply the most high-profile, large-scale case study of the trend.

    Anirudh Tagat, an economist specializing in Indian payment behavior at the Mumbai-based Observer Research Foundation, explains that currency fulfills three core functions for consumers: it acts as a medium of exchange, a store of value, and a hedge against economic or systemic uncertainty. Digital payment apps have only displaced cash in the first of these roles, leaving the other two intact. That means rising digital adoption alone cannot eliminate demand for physical banknotes.

    David Humphrey, a Florida State University economist who has studied cash usage across 14 global economies, notes that digital adoption is just one of many factors shaping cash holdings. For major reserve currencies, much of the growth in circulation comes from demand outside the issuing country, a trend seen clearly in the United States, where most high-denomination $50 and $100 bills are held and used overseas, rarely appearing in routine domestic transactions. Even as domestic ATM withdrawals for everyday spending – concentrated in small-denomination bills – have declined in recent years, the total value of U.S. currency in circulation continues to climb, driven by this international demand.

    In India, one key structural driver of unrecorded cash growth is the large informal and underground economy. Illegal and underreported activity, from under-the-table property transactions to untaxed commerce, relies almost exclusively on untraceable cash. Even India’s 2016 demonetization policy, which overnight invalidated 86% of the country’s cash by value to crack down on “black money,” only eliminated existing illicit cash stockpiles, it did not address the underlying incentives that fuel ongoing under-the-table cash flows. Buyers and sellers in real estate still routinely underreport transaction values to avoid high stamp duties, settling the difference between the declared price and actual market value in untraced cash, leaving economists without any reliable estimate of how much unrecorded cash is held in the sector.

    Psychological factors also play a role. Digital payment platforms are intentionally designed to remove the psychological “pain of paying” that comes with handing over physical cash, replacing the tangible loss of money with a simple satisfying notification. In theory, this should encourage more spending and further erode cash demand, but it has not – and analysts point to a quiet driver: fear of systemic disruption. Consumers hold cash as a buffer for when digital networks go down, power outages cut off online banking, or other crises disable digital infrastructure.

    This trend mirrors what central bankers are seeing across Europe. The European Central Bank (ECB) has recorded growth in circulating euro banknotes from €1 trillion in 2016 to €1.6 trillion in 2024, even as cash’s share of point-of-sale transactions has fallen to roughly 50%. Like in India, the number of euro notes used for routine transactions is falling, but household holdings of cash as savings keep growing. ECB research has confirmed this same “banknote paradox,” driven by household hoarding and international demand for euros. Several European governments, including Germany, Austria, Finland, Sweden and the Netherlands, now formally advise citizens to keep a small stock of cash at home as a contingency for blackouts, cyberattacks, or even wartime disruption of digital systems. In short, cash is no longer primarily for everyday spending – it has been redefined as critical emergency infrastructure.

    Beyond emergency preparedness, cash remains an essential tool for vulnerable populations that are often excluded from the digital finance ecosystem. University College Cork professor Olive McCarthy notes that elderly people, low-income rural communities, domestic violence victims who need to keep their finances private from abusers, and children learning about how money works all rely disproportionately on physical cash. Many consumers across income levels still simply prefer the privacy and tangibility that physical money provides.

    For the RBI, this paradox creates a difficult policy and budgetary balancing act. The central bank maintains an entirely domestic, self-reliant supply chain for currency, including four paper mills, four banknote printing presses, and dedicated ink production facilities, while simultaneously championing UPI, the world’s largest and fastest-growing instant digital payment network used by more than 550 million Indians. Now, as the RBI finally begins trials of polymer 10 and 20 rupee notes – a reform first proposed a decade ago that would produce longer-lasting notes and reduce replacement costs – the central bank must decide how much capital and labor to allocate to maintaining its cash infrastructure versus expanding digital payment access.

    Economists say the RBI has strong incentives to keep the cash system running even as digital payments expand. Murmu frames a reliable, widely available cash supply as a core component of India’s monetary sovereignty, and the rupee’s widespread informal use across South Asia means a stable cash supply acts as a regional economic shock absorber. If UPI follows through on reported plans to introduce transaction fees for small-value payments, analysts predict cash could even regain share in routine transactions, on top of its continuing growth as a savings and emergency asset.

    The broader takeaway for policymakers globally is a humbling one: decades of rapid digital financial innovation have not rendered cash obsolete. Rather than being an outdated technology destined for replacement, cash has transformed into an insurance policy that few consumers or governments are willing to give up.