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Oil jumps after tankers warned to avoid Red Sea following US and UK strikes

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Oil jumps after tankers warned to avoid Red Sea following US and UK strikes

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Oil prices on Friday jumped above $80 a barrel for the first time in 2024 after the world’s largest tanker body warned members to avoid the waters off Yemen following US and UK air strikes on Houthi militants.

Brent crude rose 4 per cent to $80.50 a barrel while West Texas Intermediate, the equivalent US benchmark, gained a similar amount to $74.91 a barrel.

The International Association of Independent Tanker Owners (Intertanko), which represents almost 70 per cent of all internationally traded oil, gas and chemical tankers, said in an advisory to members on Friday to “stay well away” from the Bab al-Mandab strait, and for vessels travelling south via the Suez Canal to pause north of Yemen.

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“The threat period for shipping is expected to last for several days,” Intertanko said.

While the majority of container ships have avoided the Red Sea area in recent weeks, the drop-off in oil tanker sailings has so far been less pronounced, with many still choosing to transit the route despite more than 25 attacks by Houthi militants on shipping since November.

US President Joe Biden confirmed overnight that he had ordered strikes, supported by the UK RAF, in response to “unprecedented” attacks by the Iran-backed militants on both merchant and military vessels.

Oil prices have been relatively calm since the start of the Israel-Hamas war in October, with only brief rises that have been faded by traders betting that a serious supply disruption is unlikely if the conflict can be contained.

The market is also viewed as relatively well supplied, with output rising from producers outside the Opec+ cartel and demand growth weighed down by a tepid global economy.

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But the risk of an expanded conflict that affects oil supplies has grown, with Iran seizing an oil tanker near the Strait of Hormuz — the world’s most important oil route — on the other side of the Arabian peninsula on Thursday.

Traders said the growing risks meant those who had been betting against the price would be cautious ahead of the weekend, and may buy back positions.

“The oil market has largely shrugged off risk that the Israel-Hamas war would disrupt oil supplies,” said Bob McNally, founder of Rapidan Energy and a former adviser to the George W Bush White House. “But as Iran and its proxies continue to escalate attacks on commercial shipping and US and allied military bases in the region, that premium is likely to return.”

Denmark-based Torm, which operates a fleet of 80 tankers for oil products, said after the Intertanko warning that it would stop sending vessels into the southern Red Sea.

“Torm has decided to pause all transits through the southern part of the Red Sea for now,” the company told the Financial Times, and was expected to instruct some vessels to pause and send others via the longer route round the Cape of Good Hope.

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While oil supply chains are more robust than many manufactured products, with huge volumes of crude and fuel held in storage by refiners, shippers are likely to face higher freight and insurance costs.

Goldman Sachs said this week that implied oil shipments through the Bab al-Mandab strait had declined by only about 15 per cent or less than 1mn barrels a day. Clarksons, a shipping brokerage, put the decline in tanker transit at about 25 per cent this week compared with the same period last year.

Total crude and refined product oil flows through the strait were as high as 8.8mn b/d in the first half of 2023, according to the US Energy Information Administration.

Western governments have been debating how to respond since Houthi rebels started attacks late last year in an area through which nearly 15 per cent of global sea trade passes.

A US-led military coalition and shipowners had tried to strengthen security in the Red Sea last month but it has done little to deter attacks, increasing pressure on the governments to strike the rebels in Yemen.

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Bjarne Schieldrop, a commodities analyst at SEB, warned that the air strikes may prompt retaliation by Iran and its allies. “The fear in the oil market is that the region is on an unpredictable escalating path where at some point down the road supply of oil will indeed in the end be lost,” he said.

Additional reporting by Stephanie Stacey in London

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Supreme Court reinstates Republican-favored Alabama congressional districts

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Supreme Court reinstates Republican-favored Alabama congressional districts

The U.S. Supreme Court

Tasos Katopodis/Getty Images


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Tasos Katopodis/Getty Images

The Supreme Court on Tuesday cleared the way for Alabama to use a congressional district map favored by Republicans.

The court, in an unsigned order, overturned a three-judge district court panel that found that the map is “tainted by intentional race-based discrimination.” The court’s three liberals publicly dissented.

The ruling means that Alabama’s 2026 midterm elections will feature six Republican-leaning districts and one Democratic-leaning one, as opposed to a map with only five safe Republican seats. Democrat Shomari Figures, who represents Alabama’s Second District, will likely lose his seat as a result of the high court’s ruling.

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The story of Alabama’s congressional map is long and tortured. It began in 2021, when the state implemented a new map to account for population changes in the census. The map featured only one majority-black district out of seven, even though the state is more than one-quarter Black.

Voters immediately sued, claiming the map illegally diluted minority votes in violation of the Voting Rights Act and the Constitution. Lower court judges agreed, ruling that the state must draw a map with two districts where Black voters have a realistic chance of electing their candidate of choice. The Supreme Court more than once has ordered Alabama to draw a compliant map.

But the state has refused and instead continued to litigate the case. On Tuesday, that tactic paid off.

What changed? In April, the Supreme Court’s conservative supermajority all but gutted what remains of the Voting Rights Act, ruling that states cannot purposefully draw districts that are majority-minority.

Alabama then asked the high court to reinstate the state’s old map, under the theory that this new ruling meant that it was permissible to use a map with only one majority-Black district. In an unsigned, unexplained order in May, the high court essentially reversed its previous opinions, and allowed Alabama to use the old map for the upcoming midterm elections.

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This set off a flurry of activity in Alabama. By the time the Supreme Court issued its May order, absentee balloting had already begun, using the court-drawn map. So Republican Governor Kay Ivey cancelled elections and scheduled a special primary for August for the affected congressional races.

The case, however, was not over.

In its ruling, the Supreme Court had ordered a lower court panel to continue evaluating Alabama’s map in light of its recent Voting Rights Act decision. And just 15 days after that order, the panel, composed of three Republican judges—two of them Trump appointees—concluded unanimously that even under the Supreme Court’s new standards, the plan for a single black district was “intentionally discriminatory.”

So, once again, Alabama returned to the Supreme Court, arguing that the map was partisan, not racially discriminatory. In short, that the Republican legislature simply drew the map to elect more Republicans. And that under the Supreme Court’s new interpretation of the Voting Rights Act, the GOP map should be allowed to stand.

The court’s conservative agreed, writing that the lower court “did not heed the presumption of legislative good faith.”

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The court’s three liberals publicly dissented, castigating the conservative majority for failing to abide by its 2006 decision in the case of Purcell v. Gonzalez. That decision declared that courts should not change election rules too close to an election.

Justice Sonia Sotomayor, in her dissent, said the court “debases the democratic process” and “corrodes the rule of law by rewarding Alabama’s gamesmanship and outright defiance of court orders.”

Tuesday’s decision is the latest in a series of Supreme Court rulings that could well reshape the 2026 midterm elections, making it much harder for Democrats to prevail.

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Map: 3.7-Magnitude Earthquake Shakes the San Francisco Bay Area

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Map: 3.7-Magnitude Earthquake Shakes the San Francisco Bay Area

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Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

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A minor, 3.7-magnitude earthquake struck in the San Francisco Bay Area on Tuesday, according to the United States Geological Survey.

The temblor happened at 9:44 a.m. Pacific time about 4 miles southeast of Cloverdale, Calif., data from the agency shows.

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U.S.G.S. data earlier reported that the magnitude was 3.6.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

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Aftershocks detected

Subsequent quakes have been reported in the same area. Such temblors are typically aftershocks caused by minor adjustments along the portion of a fault that slipped at the time of the initial earthquake.

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Quakes and aftershocks within 100 miles

Aftershocks can occur days, weeks or even years after the first earthquake. These events can be of equal or larger magnitude to the initial earthquake, and they can continue to affect already damaged locations.

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When quakes and aftershocks occurred

 All times are Pacific time. The New York Times

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Sources: United States Geological Survey (epicenter, aftershocks, shake intensity); LandScan via Oak Ridge National Laboratory (population density) | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Tuesday, June 2 at 12:59 p.m. Eastern. Aftershocks data is as of Tuesday, June 2 at 1:59 p.m. Eastern.

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Promoting Advanced Artificial Intelligence Innovation and Security

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Promoting Advanced Artificial Intelligence Innovation and Security

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

Section 1.  Purpose.  The United States continues to lead the world in Artificial Intelligence (AI) because of the enormous talent and innovation of our AI industry, and because we refuse to stifle this innovation with overly burdensome regulation.  My Administration has unleashed tremendous technological growth and economic investment in AI by slashing the bureaucratic constraints that the prior administration placed on America’s AI developers and researchers, and by instead encouraging AI innovation and accelerating responsible AI adoption across government and industry. 

Advanced AI capabilities make our Nation stronger, but also introduce new national security considerations that require coordinated action across executive departments and agencies (agencies), and components.  As these capabilities evolve, my Administration will continue to work closely with industry to ensure that the best and most secure technology is deployed rapidly to confront any and all threats to our country.  We will continue to lead an America First cybersecurity effort that enhances both our national security and our global AI dominance.

It is the policy of the United States to promote AI innovation and security by working collaboratively with the private sector to modernize government and private sector information systems and harden them against external threats; to protect American ingenuity and intellectual property from exploitation and theft by adversaries; and to cultivate America’s advanced AI-enabled capabilities.

Sec. 2.  Upgrading American Systems for Advanced AI.  (a)  Within 30 days of the date of this order, the Committee on National Security Systems shall prioritize the cyber defense of National Security Systems, as defined in 44 U.S.C. 3552(b)(6)(A), by taking appropriate and expeditious action consistent with the purpose of this order.

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(b)  Within 30 days of the date of this order, the Secretary of War shall prioritize the cyber defense of Department of War information systems by taking appropriate and expeditious action consistent with the purpose of this order.

(c)  Within 30 days of the date of this order, the Secretary of Homeland Security, through the Director of the Cybersecurity and Infrastructure Security Agency (CISA), in consultation with the Director of the Office of Management and Budget (OMB), the Assistant to the President for National Security Affairs, and the National Cyber Director, shall release Binding Operational Directives and other guidance as appropriate to:

(i)    expedite and prioritize the cyber defense of civilian Federal Government information systems in order to protect our Nation’s vital functions;

(ii)   establish or expand Federal programs and cybersecurity services that enhance AI-enabled defensive tools; and

(iii)  facilitate access to cybersecurity tools and services including, where appropriate, covered frontier models for agencies, State and local authorities, and operators of critical infrastructure such as rural hospitals, community banks, and local utilities.

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(d)  Within 30 days of the date of this order, the Secretary of the Treasury, in consultation with the National Cyber Director, the Secretary of War, through the Director of the National Security Agency (NSA), and the Secretary of Homeland Security, through the Director of CISA, shall form an AI cybersecurity clearinghouse, in voluntary collaboration with the AI industry and operators of critical infrastructure, that coordinates and deconflicts scanning for software vulnerabilities, discovers and validates such vulnerabilities, and coordinates and prioritizes remediation and distribution of vulnerability patches.

(e)  Within 30 days of the date of this order, the Director of OMB, in coordination with the National Cyber Director and the Director of CISA, shall determine whether any Federal grant programs have available and relevant funding that can be directed toward applicants developing advanced AI vulnerability detection.

(f)  Within 60 days of the date of this order, the Director of the Office of Personnel Management shall expand the United States Tech Force Information Cybersecurity Specialist hiring and placement pathways.

Sec. 3.  Secure Frontier Model Deployment.  Within 60 days of the date of this order, the Secretary of the Treasury, the Secretary of War, through the Director of NSA, and the Secretary of Homeland Security, through the Director of CISA, in consultation with the White House Chief of Staff, through the National Cyber Director, the Assistant to the President for Science and Technology (APST), and the Secretary of Commerce, through the Director of the National Institute of Standards and Technology, and in coordination with other agencies, as appropriate, shall:

(a)  develop and maintain a classified benchmarking process to assess the advanced cyber capabilities of AI models and determine the threshold at which an AI model should be designated a “covered frontier model” for the purposes of this order, sharing such assessments with AI developers and researchers as appropriate.  Such a determination shall be made by the Director of NSA, in consultation with the National Cyber Director, the APST, the Director of CISA, and other representatives of the Department of War, as appropriate.

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(b)  design a voluntary framework with AI developers through which developers would be able to:

(i)    engage the Federal Government to determine whether model(s) under development meet the designation of “covered frontier model”;

(ii)   provide the Federal Government with access to covered frontier models, subject to appropriate confidentiality, cybersecurity, insider-risk, and intellectual-property protection, use, and nondisclosure requirements, for a period of up to 30 days before they plan to release such models to other trusted partners; and 

(iii)  collaborate with the Federal Government to select trusted partners that will have early access to covered frontier models to promote secure innovation and strengthen the cybersecurity of critical infrastructure.

(c)  Nothing in this section shall be construed to authorize the creation of a mandatory governmental licensing, preclearance, or permitting requirement for the development, publication, release, or distribution of new AI models, including frontier models.

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Sec. 4.  Protection Against Criminal Actors.  The Attorney General shall prioritize the enforcement of 18 U.S.C. 1028, 18 U.S.C. 1030, 18 U.S.C. 1343, and all other applicable Federal criminal laws against anyone who utilizes AI to illegally access or damage a computer without authorization, or who utilizes AI while engaged in such illegal access to further any other crime.  This includes breaching any public or private information technology system, or employing AI agents to unlawfully access data or information that is subsequently used for a criminal or unlawful purpose.

Sec. 5.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:

(i)   the authority granted by law to an executive department or agency, or the head thereof; or

(ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

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(c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

(d)  The costs for publication of this order shall be borne by the Department of War.

                             DONALD J. TRUMP

THE WHITE HOUSE,

    June 2, 2026.

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