In a major development that has escalated cross-border diplomatic friction, Mexico’s President Claudia Sheinbaum has publicly stated that Mexico will only act on a potential extradition request for a sitting state governor if Washington provides irrefutable evidence to back up unprecedented U.S. drug trafficking charges. The bombshell accusations were announced Wednesday by the U.S. Department of Justice, which named Sinaloa Governor Ruben Rocha Moya and nine other individuals as co-conspirators collaborating with the infamous Sinaloa Cartel to smuggle massive volumes of illicit narcotics into the United States. Rocha Moya, who has led the violence-plagued northern Mexican state since 2021, is a prominent member of Sheinbaum’s own left-leaning Morena party and a close political ally of former president Andres Manuel Lopez Obrador, the movement’s founder. With a 40-year career in Mexican public service, the 76-year-old governor has previously served as a state legislator, president of the University of Sinaloa, senior advisor to two prior Sinaloa governors, and the state party leader for Morena. Speaking at her regular morning press briefing on Thursday, Sheinbaum laid out a clear legal framework for moving forward: if Mexico’s Attorney General’s Office receives conclusive, lawfully compliant evidence from U.S. authorities, or uncovers evidence of criminal wrongdoing through its own independent investigation, it will fulfill its obligations under any extradition request. However, Sheinbaum added that if sufficient evidence never materializes, it will become clear that the Justice Department’s allegations are rooted in political motives rather than legal fact. Hours after the charges were made public, Rocha Moya took to social media to reject the accusations outright, framing them as a deliberate political attack on Morena, Mexico’s ruling populist movement. Notably, all other nine individuals facing U.S. charges are also affiliated with the Morena party. Sheinbaum emphasized that this marks the first occasion in history that the United States has publicly unsealed narcotrafficking charges against a sitting Mexican governor or any similarly high-ranking sitting Mexican official. Reaffirming her government’s commitment to accountability, the president stressed “We aren’t going to protect anyone.” This unprecedented legal action comes at a moment when bilateral relations between Mexico and the Trump administration are already stretched thin. Recent weeks have seen tensions rise following the death of two U.S. agents, widely reported to be CIA personnel, during an operation linked to a drug seizure. The pair died in a car crash in the northern border state of Chihuahua, and Mexican authorities confirmed the agents had never obtained formal permission from Sheinbaum’s government to conduct operations on Mexican soil. The Sinaloa Cartel, one of Mexico’s most powerful transnational criminal organizations, is among six Mexican drug trafficking groups that the Trump administration has formally designated as foreign terrorist organizations. For months, Washington has pressured Sheinbaum to approve expanded U.S. counter-cartel intervention inside Mexico, including proposals for unilateral drone strikes and the deployment of U.S. military personnel. While the Mexican president has expressed openness to deeper bilateral cooperation on intelligence sharing, she has repeatedly rejected any deployment of U.S. armed forces on Mexican territory, calling such a move a direct violation of Mexico’s national sovereignty and political independence.
标签: Oceania
大洋洲
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Oil strikes 4-year peak, stocks rise
Global financial markets swung through volatile trading on Thursday, driven by dual forces: escalating geopolitical tensions in the Middle East that pushed crude oil prices to a four-year high, and mixed signals from central bank policy and quarterly corporate earnings that left major stock indexes split across regions.
Crude prices surged more than 7% early in the session, lifting the international benchmark Brent crude to $126 per barrel—its highest level since Russia’s 2022 invasion of Ukraine—before retreating. By 1330 GMT, Brent had fallen 3.7% to $113.72 a barrel, while U.S. West Texas Intermediate crude dropped 2.5% to $104.23 per barrel.
The sharp run-up in energy prices stemmed from growing fears that Middle East hostilities will escalate and disrupt global oil supplies. Multiple sources confirmed to Axios that U.S. President Donald Trump is set to receive a briefing from U.S. Central Command head Admiral Brad Cooper on plans for potential new military strikes against Iran, while Trump has warned that an ongoing U.S. blockade of Iranian ports could extend for months. Negotiations over Iran’s nuclear program remain completely stalled, and Iran maintains full control over the Strait of Hormuz, the strategic waterway that carries roughly one-fifth of the world’s daily oil trade.
“With no sign of any peace talks and fears mounting about an escalation, oil prices have continued their gains,” Jim Reid, Deutsche Bank managing director, noted ahead of the price peak. “Investors are pricing in a more protracted conflict,” he added.
Beyond energy markets, investor attention remained fixed on major central bank decisions, one day after the U.S. Federal Reserve announced it would hold interest rates steady in the face of war-fueled elevated inflation. The European Central Bank and Bank of England followed the Fed’s lead on Thursday, also keeping rates unchanged. However, the ECB warned that risks to the eurozone’s growth and inflation outlooks have “intensified” due to Middle East tensions and energy supply disruptions, while the Bank of England downgraded its forecast for UK economic growth.
Fresh economic data released Thursday reflected the growing ripple effects of the conflict. Eurozone first-quarter growth slowed to just 0.1%, while U.S. gross domestic product expanded at a 2% annual rate—slower than analysts had projected—as consumer spending cooled. The Federal Reserve’s preferred inflation gauge also rose 3.5% in March, driven largely by spiking energy costs. Even with the slowdown, Briefing.com analyst Patrick O’Hare said the U.S. data reinforced confidence in the economy’s resilience despite rising prices.
On Wall Street, major U.S. stock indices opened higher and ended the day in positive territory, lifted by stronger-than-expected quarterly corporate earnings. The Dow Jones Industrial Average gained 0.5% to close at 49,108.93, the S&P 500 added 0.4% to 7,167.28, and the Nasdaq Composite rose 0.6% to 24,829.53. Big tech stocks delivered a mixed performance: Alphabet, Google’s parent company, saw shares jump more than 5% after investors praised the firm’s successful AI transition and strong revenue across core divisions, while Meta shares slumped more than 9% over concerns about its massive planned AI investment.
Overall, quarterly results have beaten analyst expectations by a wide margin, pushing the estimated average earnings growth for large U.S. companies from 15% to 26%, O’Hare said. “That is just massive, and it is the trajectory that has had the stock market looking confident in the face of the Middle East tumult and rising oil prices,” he added.
European markets were similarly split: London’s FTSE 100 rose 1.4% and Frankfurt’s DAX gained 0.8%, while Paris’s CAC 40 dipped less than 0.1%. Most Asian markets closed lower, with Tokyo’s Nikkei 225 falling 1.1% and Hong Kong’s Hang Seng Index dropping 1.3%; only Shanghai’s Composite index eked out a 0.1% gain.
In currency markets, the Japanese yen surged more than 2% against the U.S. dollar after Japan’s finance minister strongly signaled that Tokyo was prepared to intervene in currency markets to prop up the yen, which had fallen to its lowest level against the dollar since mid-2024. By the end of the trading window, the dollar fell to 156.69 yen from 160.23 yen on Wednesday.
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US first-quarter growth rebounds less than expected as inflation surges
New government data released Thursday reveals that U.S. economic growth rebounded less than analysts projected in the first quarter of 2026, as soaring inflation driven by Middle East conflict-related energy price shocks cooled consumer spending and exposed deep divides in the country’s economic performance.
The world’s largest economy saw gross domestic product expand at an annualized rate of 2.0% between January and March, according to the Commerce Department’s advance estimate. That marks a sharp improvement from the 0.5% growth recorded in the final quarter of 2025, but still underperforms the 2.2% expansion economists had predicted ahead of the report.
The uptick in overall growth was primarily fueled by a jump in business investment and a rebound in federal government spending, which recovered after a disruptive government shutdown in the fourth quarter of 2025. White House spokesperson Kush Desai quickly framed the result as a win for the Trump administration’s policy agenda, crediting the president’s tax cuts and deregulation efforts for driving what he called an “astonishing surge in business investment.”
Despite the headline growth number, economic observers warn that strengths in the economy are narrowly concentrated in the booming AI sector, while millions of ordinary households are already showing signs of financial fatigue from rising costs. The conflict-driven energy shock that began after U.S.-Israeli strikes on Iran on February 28, which prompted Tehran to block traffic through the strategic Strait of Hormuz – a critical global transit chokepoint for energy and fertilizer – has sent energy prices soaring worldwide. Data from the American Automobile Association shows the average price for a gallon of regular gasoline in the U.S. has already spiked to $4.30, eating into household budgets that were already stretched.
Inflation data released alongside the GDP report confirms the sharp upward shift in prices: the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation metric, jumped to 3.5% year-over-year in March, up from 2.8% in February. Even when stripping out volatile food and energy prices, core inflation still rose 3.2% annually, far above the Fed’s long-term 2% target.
Heather Long, chief economist at Navy Federal Credit Union, described the current landscape as a “split-screen economy.” On one side, AI-focused companies and investors are thriving, driving the capital investment boom that lifted the headline GDP number. On the other, middle- and low-income households are grappling with persistent cost-of-living increases. Long noted that nearly half of larger annual tax refunds issued this year have already gone toward covering higher fuel costs for most families, and flagged the slowdown in consumer spending growth to just 1.6% in the first quarter as a “big warning sign” of deeper trouble ahead.
Oliver Allen, senior U.S. economist at Pantheon Macroeconomics, echoed this assessment, pointing out that underlying economic momentum is “anemic” outside of the AI investment surge. He added that multiple headwinds are already weighing on U.S. consumers: a cooling labor market, subdued consumer confidence, sluggish growth in real household income, and the depletion of excess savings accumulated during the COVID-19 pandemic have all combined to dampen spending.
The combination of slowing consumption and rising inflation also carries significant political risks, as the Republican Party prepares to defend its majority in November’s midterm elections. Steeper everyday costs are likely to become a top campaign issue for voters, and could erode support for the incumbent administration.
While some financial analysts, including Chris Zaccarelli, chief investment officer at Northlight Asset Management, believe the U.S. economy has enough resilience to absorb short-term global shocks, Zaccarelli cautioned that growing risks point to a much more challenging outlook for the global economy in the coming months, raising concerns about broader spillover effects from the Middle East energy crisis.
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Australia’s budget ‘sugar hits’ are running out, economists warn
Australia’s national debt has posted an unexpected near-term decline, but leading economic analysts warn this seemingly positive trend rests on fragile, temporary factors rather than lasting fiscal progress – and the nation is running out of good luck to prop up its budget.
The temporary drop in debt has been fueled by two external shocks: the ongoing conflict in the Middle East (Iran) and skyrocketing cost-of-living pressures that have lifted inflation across the country. According to the latest Deloitte Access Economics Budget Monitor report, these forces have delivered what senior partners describe as “sugar hits” to government revenue: higher prices across energy and commodities translate directly into higher tax collections, which have shrunk near-term deficits and allowed for a one-off $40 billion debt repayment in April 2026. Total gross national debt currently sits at $962.6 billion following this repayment.
Deloitte Access Economics partner Stephen Smith argues that these one-off revenue gains have papered over deep, long-standing structural flaws that leave Australia in a precarious fiscal position. “Higher inflation and the Middle East conflict are all quite good for the budget in the short term because higher prices mean more tax revenue,” Smith explained in an interview with NewsWire. But this quick boost to revenue carries major long-term risks, he warned: a sustained oil supply shock from regional conflict could sharply slow domestic demand, while persistent inflation may force the Reserve Bank of Australia to raise interest rates even higher than markets currently expect. These risks will only grow if the government opts for heavy-handed short-term household relief in the upcoming budget, Smith added.
The short-term fiscal picture has indeed improved more than many forecasters expected. Deloitte projects the underlying cash deficit will come in at $33.2 billion, a $3.6 billion improvement from the Mid-Year Economics and Fiscal Outlook (MYEFO) projections. Commonwealth Bank (CBA) is even more optimistic, forecasting the deficit will fall to $29 billion this fiscal year and $22 billion the next, marking a significant upgrade to the nation’s fiscal outlook.
But despite these near-term gains, Deloitte warns upward cost pressures will erase much of the revenue windfall in coming years. Elevated inflation automatically lifts indexed federal payments, including welfare support for jobseekers and age pensions, while higher interest rates also increase the government’s debt servicing costs. Even with strict controls on new spending, growth in existing mandatory spending will offset most of the extra revenue, Smith noted. The fastest-growing spending areas – defense, the National Disability Insurance Scheme (NDIS), aged care, health, and debt interest – are all core government responsibilities, but their current growth rates are outpacing revenue at an unsustainable pace.
To rein in runaway NDIS costs, the federal government has already proposed legislative changes to crack down on “scheme inflation,” tighten eligibility rules, and root out system rorting. Current projections show the scheme would cost more than $70 billion annually by 2030, but the reforms are expected to cut that figure by $15 billion over the forward estimates period.
CBA chief economist Luke Yeaman identifies three core challenges the government must address in its upcoming budget to put public finances on a sustainable path: tax system reform to spread the burden more fairly across generations, avoiding new spending that would further stoke already high inflation, and managing growing uncertainty from the ongoing Iran conflict. “Achieving all of this in one budget – major reform, big spending cuts, national resilience and supporting households – is quite the ask,” Yeaman said. “We expect the government to try to thread the needle. To pull this off, they will need to meet several tests.”
Treasurer Jim Chalmers has already acknowledged the difficult context, describing the government’s budget strategy as “hostage to economic turmoil.” He has pledged the upcoming budget will deliver substantial savings while remaining ambitious, with a core focus on addressing intergenerational inequity in the tax and housing sectors.
A growing number of analysts expect the government will finally advance long-discussed reforms to the capital gains tax (CGT) discount and negative gearing, long considered untouchable “sacred cows” of Australian tax policy. Currently, investors receive a flat 50% discount on capital gains for assets held longer than one year, a policy that disproportionately benefits wealthy asset holders. Reports indicate the government will shift to an indexation model that only taxes real inflation-adjusted capital gains, a change framed as a measure to improve housing affordability and intergenerational equity rather than a broad tax increase. CBA projects the reform could save the budget around $2 billion over four years if implemented as rumored.
While Deloitte calls CGT reform a solid first step, the firm argues the government needs to go further with broader structural tax reform: shifting the tax burden away from income taxes toward consumption and land taxes. Under Deloitte’s proposal, the tax-free threshold would be raised to $35,000, with a 33% marginal rate for incomes up to $300,000 and a 40% rate for incomes above that threshold. “From an economics point of view if you are taxing income you are discouraging people from working, so the less we can tax labour the more we encourage people to work and that can really boost the economy,” Smith said. He added that the current system is unfair to younger generations: as Australia’s population ages, wealthy retirees pay a disproportionately small share of total tax, while working-age Australians bear the bulk of income tax burdens. Taxes like the GST are far more efficient, he noted, because they are shared across all members of society regardless of age or employment status.
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War in the Middle East: latest developments
In the hours following fresh military activity across the Middle East that has sent shockwaves through global energy markets and sparked diplomatic fallout across continents, multiple world leaders have issued stark responses to unfolding events, while new economic and military data highlights the growing human and financial cost of ongoing conflict.
From southern Lebanon, where Israeli shelling has continued despite an existing ceasefire agreement, Lebanese President Joseph Aoun issued a firm condemnation of sustained Israeli incursions into the country’s southern territories. In his statement, Aoun detailed that ceasefire violations have included the destruction of civilian residential properties and religious sites, with casualty numbers climbing steadily each day. He called on the international community to bring coordinated pressure to bear on Israel, demanding that the country uphold longstanding international law and conventions, and end targeted attacks on civilian populations, medical first responders, civil defense teams, and humanitarian relief and health organizations. The strike on the village of Yohmor sent thick plumes of smoke visible across the border from the Lebanese district of Marjeyoun, underscoring the persistent risk of a wider regional spillover from ongoing hostilities.
Beyond the immediate military conflict, the upheaval has created major ripple effects for global energy markets and climate policy. Speaking at an International Energy Agency (IEA) event focused on energy transition in Paris, Turkey’s climate minister Murat Kurum—who is also the president-designate for the upcoming COP31 UN climate conference—argued that the current energy crisis triggered by Middle East conflict makes clear that the global economy must accelerate its shift away from fossil fuels to renewable clean energy. Kurum emphasized that the crisis has exposed the critical need for a complete overhaul of the global energy paradigm.
IEA executive director Fatih Birol echoed those concerns, warning that the world is currently grappling with one of the most severe energy and economic challenges in modern history. In the wake of Middle East hostilities, international oil prices have spiked dramatically, bringing unprecedented economic pressure to nations across every income bracket, Birol explained. As of Thursday, benchmark crude prices hit multi-year highs: Brent crude for June delivery jumped more than 7% to peak at $126.41 a barrel, while U.S. West Texas Intermediate crude climbed 3.4% to reach $110.31, before both benchmarks partially pulled back from their intraday gains.
Iranian President Masoud Pezeshkian pushed back against recent threats of a U.S. naval blockade of Iranian ports, arguing that any such restrictive measure would not only violate core principles of international law but also deepen regional instability in the Persian Gulf while failing to achieve Washington’s strategic goals. “Any attempt to impose a maritime blockade or restrictions is contrary to international law… and is doomed to fail,” Pezeshkian said in an official statement.
Diplomatic tensions have also spilled into transatlantic relations, with U.S. President Donald Trump confirming that Washington is considering significant cuts to its troop deployment in Germany over Chancellor Friedrich Merz’s refusal to join the U.S.-led conflict against Iran. Currently, the U.S. maintains between 35,000 and 50,000 military personnel stationed across Germany. The threat to draw down troops aligns with Trump’s long-running criticism of NATO burden-sharing, and was triggered after Merz claimed earlier this week that Iran was “humiliating” Washington at ongoing negotiating talks.
Shortly after Trump’s announcement, European Union officials pushed back on the suggestion of a drawdown. EU spokeswoman Anitta Hipper noted that the ongoing deployment of U.S. troops across Europe serves core national security interests for the United States, adding that NATO allies are already increasing their collective defense spending at a pace never seen before.
In a high-stakes phone conversation between Russian President Vladimir Putin and U.S. President Donald Trump on Wednesday, Putin issued a clear warning against any resumption of large-scale military attacks on Iran. Kremlin foreign policy aide Yuri Ushakov told reporters that Putin outlined that new military action would bring “inevitable and extremely damaging consequences” for the Middle East region and the entire global community. In his own remarks on the call, Trump claimed that Putin had offered to help mediate an end to the U.S.-Israeli conflict against Iran, but that he had demanded Russia first withdraw its military forces from Ukraine to move forward.
On Capitol Hill, U.S. Defense Secretary Pete Hegseth faced a fiery congressional hearing Wednesday where lawmakers pressed him on the financial cost of 60 days of ongoing U.S. military involvement in the conflict. Hegseth confirmed that total estimated costs to date have remained under $25 billion. He also pushed back against widespread concerns that the conflict has depleted the U.S.’s stockpiles of critical munitions to alarming levels, accusing critics of spreading misinformation that amounts to propaganda for U.S. adversaries.
In a closing provocative message posted to his Truth Social platform Thursday, Trump doubled down on his hardline stance toward Iran. “Iran can’t get their act together. They don’t know how to sign a nonnuclear deal. They better get smart soon!” he wrote, alongside a graphic of himself holding an assault rifle emblazoned with the caption “NO MORE MR. NICE GUY!”
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Gaza flotilla organisers say 211 activists ‘kidnapped’ by Israel
A major diplomatic and humanitarian controversy has erupted after Israeli military forces intercepted a flotilla of pro-Palestinian aid vessels heading to the blockaded Gaza Strip in international waters off the Greek island of Crete, with organizers and Israeli officials clashing sharply on the scope and legality of the operation.
Organizers with the Global Sumud Flotilla, a coalition of 48 national delegations that launched the voyage from ports in France, Spain and Italy over recent weeks, announced Thursday that Israeli commandos had stormed at least 22 of the coalition’s 58 vessels in an operation that took place hundreds of kilometers from Israeli shores — a distance organizers described as unprecedented. In a graphic account of the raid, the group detailed that Israeli military speedboats approached the unarmed aid vessels, pointing laser weapons and semi-automatic assault weapons at activists, ordering crew members to crawl to the fronts of their boats with their hands and knees on the deck. The operation also included jamming of the flotilla’s communications systems, prompting activists to issue an emergency SOS distress call.
Per the coalition’s accounts, a total of 211 activists have been taken into Israeli custody, an outcome organizers frame as an arbitrary kidnapping in violation of international law. Among the detainees are Paris Communist municipal councillor Raphaelle Primet and 10 other French citizens, with crew members representing all 48 participating national delegations believed to be held. Helene Coron, a spokesperson for Global Sumud France, confirmed the details of the interception during an online news conference, noting that the operation occurred far closer to Crete than to Israeli territorial waters. Yasmine Scola, an activist still aboard one of the remaining flotilla vessels anchored near Crete, echoed the organizers’ claim that the detained activists had been kidnapped by Israeli forces.
Israeli officials have offered a conflicting account of the operation. The Israeli foreign ministry put the number of detainees at 175, and derisively labeled the initiative a “condom flotilla” — a reference to prophylactics found in a previous aid convoy — adding that 20 of the intercepted vessels were already traveling peacefully to Israeli ports. Activists counter that their vessels were carrying only civilian humanitarian aid, including school supplies and food for Gazan residents who have faced catastrophic shortages of basic goods for decades.
A spokesperson for the Greek coast guard confirmed to Agence France-Presse that authorities responded to the flotilla’s SOS distress signal, but once a Greek patrol boat reached the interception zone, crews were told no further assistance was needed. As of Thursday, the 36 remaining vessels from the original flotilla remain anchored off the coast of Crete, and organizers have not yet announced what next steps the remaining crews will take.
This interception marks the second high-profile voyage by the Global Sumud Flotilla targeting Israel’s blockade of Gaza. The coalition’s first voyage in the summer and autumn of 2025 also drew global attention after Israeli forces intercepted the flotilla off the coasts of Egypt and Gaza in early October of that year. That operation, which Amnesty International and organizers labeled a violation of international law, sparked widespread international condemnation after high-profile participants including climate activist Greta Thunberg were arrested and expelled by Israeli authorities.
The confrontation comes against a long-running backdrop of humanitarian crisis in Gaza. Israel has controlled all land, air and sea entry points to Gaza since 2007, when the territory came under the governance of Hamas. The United Nations and leading international non-governmental organizations have repeatedly accused Israel of strangling the flow of goods into Gaza, a crisis that deepened dramatically after the outbreak of war between Israel and Hamas in October 2023. According to official Israeli figures compiled by AFP, Hamas’s cross-border attack on October 7, 2023 killed 1,221 people, most of them civilians. Retaliatory Israeli military operations in Gaza have killed more than 72,000 people in the territory, the majority of them civilians, per data from the Gaza Ministry of Health. A fragile ceasefire has been in place since October 2025, ending two years of devastating armed conflict, but severe shortages of food, clean water, medicine and fuel continue to plague the 2 million residents of Gaza.
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Under-fire UK boosts security for Jews after latest attack
Facing mounting criticism over rising antisemitic violence across the country, the UK government has moved swiftly to ramp up protective measures for British Jewish communities, announcing an extra £25 million ($33 million) in funding for security at synagogues, schools, and other community sites. The policy announcement came just 24 hours after a daylight stabbing attack left two Jewish men injured in north London’s Golders Green, the latest in a string of violent incidents targeting the UK’s Jewish population.
The Wednesday attack unfolded in broad daylight on a public street in Golders Green, a neighborhood with a large longstanding Jewish community. The two victims, aged 34 and 76, were hospitalized and remain in stable condition as of Thursday. A 45-year-old British national, who was born in Somalia and moved to the UK as a child, is currently in police custody in connection with the stabbings.
This attack is only the most recent in a growing wave of violence targeting Jewish sites across the UK. Last year, a deadly assault on a Manchester synagogue left two people dead, and multiple arson attacks have targeted synagogues and other Jewish community spaces in the Golders Green area in recent months. Community leaders have repeatedly warned that persistent under-policing and growing antisemitic sentiment have left British Jewish communities feeling deeply vulnerable.
Speaking to Sky News, UK Home Secretary Shabana Mahmood acknowledged the pervasive sense of uncertainty among Jewish Britons, explaining the new funding was a direct response to this crisis. “People have a sense of deep insecurity… and that is why the government is bringing forward investment, an additional £25 million to invest in the security of our Jewish community,” Mahmood said. She confirmed the funding will go toward expanding protective security at Jewish places of worship, educational institutions, and community centers across the country.
The stabbing has already drawn renewed calls for broader action from community representatives. Rabbi Ben Kurzer, a leader at Golders Green Synagogue, told BBC Radio that regular visible police presence remains scarce in high-risk Jewish areas, with most current security provision falling to underfunded private providers. “There is definitely not a significant police presence on a regular basis in these areas. We have little bits here and there, but most of the security that we’re seeing is private,” Kurzer said. He urged the government to go beyond funding and implement more systemic protections for British Jews, including cracking down on what he described as hate-fueled pro-Palestine protests that have amplified antisemitic rhetoric.
“We all believe in free speech, but there’s obviously a limit to free speech when it’s leading to events such as we had yesterday,” Kurzer added, echoing longstanding concerns from Jewish community leaders that unregulated large-scale protests have created a permissive environment for antisemitic violence.
According to U.S.-based monitoring group SITE Intelligence Group, a little-known faction called Harakat Ashab al-Yamin al-Islamiya (HAYI), which is suspected of having links to Iran, has claimed responsibility for the stabbing in an online video, describing the attacker as one of its “lone wolves.” The claim remains uncorroborated by UK law enforcement as of Thursday.
In response to the alleged ties to a hostile foreign state, Mahmood announced the government would move forward with emergency legislation to close existing legal gaps that have hampered action against groups linked to foreign adversaries and their proxies. The new legislation will be fast-tracked through parliament in the coming weeks, she confirmed.
The push for tighter protest restrictions aligns with existing policy priorities set by Keir Starmer’s Labour government, which last year announced plans to grant UK police expanded powers to limit frequent demonstrations, in part to account for the “cumulative impact” of repeated protests on community safety.
Monitoring organizations across the UK have documented a dramatic spike in both antisemitic and Islamophobic incidents since the outbreak of the Israel-Hamas war in Gaza in October 2023, with antisemitic hate crimes rising by more than 100% in some regions of the country.
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Iran defies Trump’s blockade as oil prices soar
A escalating maritime confrontation between the United States and Iran has sent shockwaves through global energy markets, pushing oil prices to their highest levels in four years and raising urgent fears of wider regional destabilization. The standoff, which began after the US imposed a naval blockade on Iranian ports in mid-April, has been amplified by Iran’s continued control over the strategic Strait of Hormuz — a chokepoint through which roughly one-fifth of the world’s daily oil supplies pass — a leverage Tehran has held since the outbreak of regional war in February.
In an official statement released Thursday, Iranian President Masoud Pezeshkian issued a blunt rebuke of the US blockade, calling the action a violation of international law and warning it would fail to achieve Washington’s goals. “Any attempt to impose a maritime blockade or restrictions is contrary to international law… and is doomed to fail,” Pezeshkian said, adding that the measure would only undermine long-term security across the Persian Gulf.
The tough rhetoric comes as former President Donald Trump, who has overseen the tightening of the blockade, signaled this week that the pressure campaign will remain in place for months to force Tehran to abandon its nuclear program. Speaking to news outlet Axios, Trump claimed Iranian officials were “choking like a stuffed pig” and that conditions would worsen for the country under the blockade. Two unnamed sources familiar with US planning also confirmed to Axios that Trump was set to receive a briefing Thursday from Admiral Brad Cooper, head of US Central Command (CENTCOM), on potential new military actions targeting Iran.
CENTCOM reinforced the blockade’s progress in a social media post Wednesday, announcing it had diverted the 42nd commercial vessel attempting to bypass the restrictions. The command estimates that 41 oil tankers carrying a total of 69 million barrels of Iranian crude — worth more than $6 billion — have been stranded and cannot be sold on global markets.
The standoff has already delivered a sharp shock to energy markets: Brent crude for June delivery jumped 7.1 percent this week to top $126 per barrel, reaching a four-year high that has raised costs for consumers worldwide.
Both sides face mounting domestic and international pressure to de-escalate. Trump is grappling with growing domestic discontent over the ongoing regional conflict, which has driven up energy costs for American households, is unpopular with large swathes of his own political base, and has strained relationships with key US allies. For Iran, the prolonged pressure has hammered the national economy, pushing the Iranian rial to record lows against the US dollar. Ordinary Iranians expressed widespread despair over the ongoing standoff and repeated cycles of confrontation in comments to AFP. “Every time in recent years that negotiations have taken place, the economic situation of the people has only gotten worse. Sanctions have either started or intensified,” a 52-year-old anonymous architect told AFP. “The issue is always nuclear. There’s no talk about people, the economy or freedom. People have the right to not even want to hear the word ‘negotiation,’” he added.
Diplomatic efforts to ease tensions have hit repeated snags in recent weeks. Top US officials including Vice President JD Vance have twice had planned trips to Pakistan for talks with Iranian representatives called off over the past week. US officials acknowledge they are struggling to identify a clear authoritative voice for Iran after Israeli strikes killed a series of top Iranian leaders, leaving power split between the increasingly powerful hardline Revolutionary Guards and civilian diplomatic bodies.
Tehran has offered to ease its chokehold on the Strait of Hormuz in exchange for the US lifting its blockade and opening broad negotiations, but the Trump administration has refused to compromise, demanding that any talks center on rolling back Iran’s nuclear program. Iranian Parliament Speaker Mohammad Bagher Ghalibaf, a key political figure since the war began, framed the US blockade as an intentional attempt to fracture Iranian society and trigger domestic collapse.
The confrontation has spilled over into neighboring Lebanon, where a shaky ceasefire between Israel and Iran-backed Hezbollah has been fraying in recent days. The Lebanese army confirmed that an Israeli strike wounded two of its soldiers on Tuesday, marking the first attack on Lebanese military personnel since the ceasefire extension, followed by a second strike Wednesday that killed one Lebanese soldier. Lebanese President Joseph Aoun called for full implementation of the ceasefire to open the door for diplomatic talks, noting that “Israel must finally realise that the only path to security is through negotiations.”
A new UN-backed report released Wednesday warned that the ongoing conflict has pushed more than 1.2 million people in Lebanon into acute food insecurity, highlighting the growing humanitarian toll of the regional crisis.
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Housing affordability fix looms as Treasurer hints at capital gains tax reform
As Australia’s federal government prepares to hand down its May 12 budget, Treasurer Jim Chalmers has fuelled widespread speculation about sweeping changes to national housing tax policy, while pushing back against common assumptions that the reforms would deliver a massive windfall to government coffers.
Speaking in a recent podcast interview with Commonwealth Bank chief economist Luke Yeaman, Chalmers addressed the growing national housing affordability crisis, which has disproportionately locked younger generations out of first home ownership. He acknowledged the clear long-term shift in Australia’s property market, where investor activity has grown steadily at the expense of owner-occupiers, pointing to early 2000s changes to capital gains tax as a key contributing factor to this shift.
“Anyone who looks objectively at the way that home ownership rates have declined over time … between homeowners and owner‑occupiers versus investors, can see there’s been a long-term trend,” Chalmers told the podcast. “Even if you just go back to around the turn of the century, those changes that were made to capital gains, you can see that that’s had an impact in the composition of the housing market.”
Despite confirming the government is actively exploring reforms to negative gearing and the existing capital gains discount, Chalmers stopped short of confirming any final changes would be included in the upcoming budget, saying only that he would outline the government’s full plans on budget night. He did, however, push back heavily on widespread market speculation that any changes to these tax policies would generate significant new revenue for the government that could immediately be redirected to broad-based tax cuts for Australian workers.
“One of the things that I think is not well understood in the speculation is that even if we went down the path that has been speculated about in those areas that you’ve asked me about, people shouldn’t expect there to be this huge amount of new revenue show up over the course of the next few years in the Budget,” Chalmers said. “But people assume that all of a sudden, a huge amount of revenue will show up that you can automatically and immediately give away, and most people who think deeply about those tax changes … would understand that there wouldn’t be a heap of revenue.”
For weeks ahead of the budget, Chalmers and senior Labor cabinet ministers have framed potential housing tax changes as a matter of intergenerational equity. Critics of the current system argue the existing capital gains discount and negative gearing rules disproportionately benefit wealthy asset holders, while Australian working people bear the majority of the national tax burden. Chalmers said he welcomes the national debate over rebalancing the tax system to create greater fairness between income from labor and income from assets.
This focus on fairer tax distribution builds on the government’s earlier changes to the controversial Stage 3 tax cuts, which were redesigned to deliver greater relief to low- and middle-income earners when they take effect from July 1, 2024. The revised plan also gradually reduces the 16 per cent tax rate to 15 per cent by July 1, 2026, and 14 per cent by July 1, 2027, while adding a new $1000 instant tax deduction for eligible earners.
Market analysts and insiders widely predict the government will replace the existing 50 per cent flat capital gains discount with an indexation-based model. Under the current system, any investor holding an asset for more than 12 months qualifies for a 50 per cent discount on their taxable capital gain, a policy originally designed to benefit property investors. For example, an investor who buys a property for $500,000 and sells it two years later for $700,000 would only pay tax on $100,000 of the $200,000 profit under current rules. Under the proposed indexation model, the cost base of the asset would be adjusted for inflation rather than applying a flat 50 per cent discount.
Chalmers also revealed the budget is still being adjusted in the final weeks ahead of its release, an unusual step driven by ongoing economic volatility stemming from the Middle East crisis. The conflict has already driven a sharp spike in global fuel prices, which added a 9.2 per cent lift to Australian consumer transport costs, with monthly automotive fuel prices surging 32.8 per cent. Around one-fifth of the world’s total oil and gas supply passes through the Strait of Hormuz, and ongoing tensions and blockages in the region have sent global energy prices soaring.
“Ordinarily budgets are sketched out in summer, locked down in autumn,” Chalmers explained. “This one is being recalibrated even in autumn, and that’s different to normal. But there are some common elements.” He added he has prepared multiple versions of his upcoming budget speech to account for shifting global conditions.
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ASX hit by supermarket slump and oil price fears in eighth day of losses
The Australian Securities Exchange has booked its longest continuous losing streak in eight years, as skyrocketing global crude prices stoke fears of wider inflationary pressures that will erode household grocery budgets and cut into corporate profit margins. On Thursday, the benchmark ASX 200 declined 21.20 points, or 0.24%, to close at 8665.80, while the broader All Ordinaries index dropped 28.10 points, or 0.32%, to settle at 8887.60. This eighth consecutive day of declines marks the local bourse’s worst performance since 2018, with the Australian dollar also sliding 0.19% to trade at 71.14 U.S. cents by market close.
Against the overall downward trend, eight out of 11 tracked market sectors finished the trading session in positive territory, with the broad market decline pulled down primarily by heavy losses in consumer staples and materials. The steepest drop in the consumer staples segment came from national supermarket giant Woolworths Group, whose shares plummeted 7.78% to $34.39. While the retailer reported a 4.5% year-over-year rise in sales to $18.1 billion, CEO Amanda Bardwell warned that spiking fuel costs driven by the global oil price surge are creating cascading pressure across the entire supply chain. Woolworths confirmed that multiple suppliers have already begun moving to pass higher energy-driven operational costs onto retailers, a shift that will eventually flow through to higher prices for consumers at checkout. Rival leading supermarket chain Coles followed suit, with shares falling 3.62% to $22.11, while other consumer-focused firms including A2 Milk and Endeavour Group also recorded moderate losses.
Industry analysts say the current market downturn stems from a dual pressure of sky-high crude prices and growing expectations of another incoming interest rate hike from the Reserve Bank of Australia. Josh Gilbert, lead analyst at multi-asset trading platform eToro, explained that the current market shift is a direct reflection of how energy price shocks ripple through the entire economy. “When 20 per cent of the world’s oil supply is at risk, it doesn’t just impact energy prices, it flows through to everything from petrol at the pump to grocery bills, and Woolworths’ profit warning today is exactly that story playing out in real time,” Gilbert noted. As of Thursday, financial markets were pricing in a 77% probability that the RBA will raise interest rates at its next policy meeting, leaving Australian households caught between rising living costs and higher borrowing costs that squeeze disposable income.
The global oil price surge that triggered the latest market jitters comes amid escalating geopolitical risk that has threatened key global shipping chokepoints. Brent Crude futures jumped to a fresh four-year high this week, briefly touching $US126 per barrel after U.S. officials warned they are bracing for an extended disruption to shipping through the Strait of Hormuz, a critical route that carries roughly a fifth of global oil supplies.
The elevated oil prices pulled down share values for Australia’s big three iron ore miners: BHP fell 2.24% to $53.72, Rio Tinto declined 1.99% to $167.40, and Fortescue Metals dropped 2.82% to $19.61. Spot iron ore prices held steady at $US107.20 per tonne through the session. Gains in the energy sector partially offset these market declines, with top Australian oil and gas producers posting solid growth: Woodside Energy rose 1.51% to $33.55, Santos gained 2.96% to $8, and fuel retailer Ampol closed up 1.71% at $35.17.
A handful of positive corporate announcements also delivered isolated gains in other segments. ASX Limited itself saw shares jump 5.10% to $60.80 after announcing Darren Yip as its new interim chief executive. Mineral Resources also climbed 2.96% to $63.71 after the mining firm upgraded its full-year production guidance for its Onslow iron ore project, as well as its Wodgina and Mount Marion lithium operations.
