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Oil surges after Joe Biden’s comments on Israeli retaliation

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Oil surges after Joe Biden’s comments on Israeli retaliation

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Oil prices soared to their highest level in more than a month on Thursday as traders speculated that Israel could engage in retaliatory strikes against Iran’s oil industry.

Brent crude rose as much as 5 per cent to $77.65 per barrel after US President Joe Biden told reporters that such a move was under discussion in response to Tuesday’s missile attack on Israel by Iran.

Asked whether the US would support Israel striking Iran’s oil facilities, Biden said: “We’re in discussion of that,” although in his truncated comment the US president went on to say: “I think that would be a little . . . anyway.”

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In recent days, senior US officials have held a series of conversations with top Israeli officials, as the US and western allies try to limit the scope of Israel’s response and prevent a broader regional conflict.

US officials believe Israel’s retaliation will be measured enough to avoid triggering new rounds of escalation across the Middle East.

One US official said Israeli officials want to send a strong signal to Iran while hoping to put a lid on the conflict. The US official cautioned that no final decisions had been made by Israel.

The guarded confidence that Israel will moderate its response comes as Biden and western allies have publicly stated they oppose any strike on Iranian nuclear facilities.

US and Israeli officials have been discussing the potential for Israeli strikes on military targets and energy infrastructure. The US official said Washington did not expect to participate in the strikes.

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At the same time, concern is growing among US allies that Washington is struggling to influence the Israeli government led by Prime Minister Benjamin Netanyahu.

One European diplomat said Israel had been asked to stop short of an attack on Iran’s oil or nuclear infrastructure but there was no guarantee the country would meet that request.

A second senior EU diplomat said: “It’s depressing to see how little influence we have on these events . . . It injects some pessimism, some fatalism into our discussions on it.”

On Thursday, Biden denied the US had a veto on Israel’s actions, while adding that no immediate Israeli response was expected on Thursday. “We don’t ‘allow’ Israel. We advise Israel. And there’s nothing going to happen today,” the US president said.

Biden’s comments come amid fears of an expanding war. Israel began a ground invasion of Lebanon on Tuesday after weeks of intense bombing, while maintaining its nearly year-long war in Gaza.

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After Tehran fired almost 200 ballistic missiles at Israel on Tuesday evening in retaliation for the attacks on Iran-backed Hizbollah, and the killing of its leader Hassan Nasrallah, Israel vowed to respond.

On Thursday Israel launched multiple air strikes on Beirut, killing at least nine people at a Hizbollah-linked medical facility in the heart of Lebanon’s capital, and targeting a building used by the militant group’s media office.

Satellite photos comparing Nevatim air base on August 3 2023 and October 2 2024. The latter photo shows signs of damage

The US’s stated goal for months has been to broker a ceasefire deal between Israel and Hamas that would end the war in Gaza, and recently it has been pushing for a truce between Israel and Lebanon as well. But both those efforts have broken down.

This week, Kurt Campbell, deputy US secretary of state, acknowledged “moments of surprise” over recent months in the relationship between the US and Israel. But, speaking at a virtual event hosted by the Carnegie Endowment for International Peace, he acknowledged “major efforts on both sides to keep lines of communication open and to make sure that perspectives are understood”.

After it spiked following Biden’s comments, Brent later eased off to $77.08 a barrel, up 4.3 per cent on the day.

Iran exports around 1.6-1.8mn barrels per day of crude and condensate, of which 1.5mn b/d goes to China, along with more than 0.5mn b/d of oil products, according to Energy Aspects, a consultancy.

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Amrita Sen, director of research at Energy Aspects, said oil prices could be sent “spiralling higher” if Israel struck Iranian refineries and if Tehran responded by attacking other oilfields and refineries in the region.

The global oil market has been volatile since the start of the week due to the escalating tensions, with potential disruptions to energy exports.

However, lack of demand from China, as well as Opec+ producers sitting on more than 5mn b/d of spare capacity which could be used if Iranian supply were cut, had weighed on the market.

Additional reporting by Rafe Uddin and Shotaro Tani in London

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California fires could be costliest disaster in US history, says governor

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California fires could be costliest disaster in US history, says governor

The California wildfires could be the costliest disaster in US history, the state’s governor said, as forecasts of heavy winds raised fears that the catastrophic blazes would spread further.

In remarks to NBC’s Meet the Press on Sunday, Gavin Newsom said the fires — which have burnt through more than 40,000 acres, according to CalFire, the state’s forestry and fire protection department — would be the worst the country has seen “in terms of just the costs associated with it, [and] in terms of the scale and scope”.

He added that there were likely to be “a lot more” fatalities confirmed. The death toll on Saturday evening stood at 16, according to Los Angeles authorities.

The prospect of a pick-up on Sunday in the Santa Ana winds that have fanned the flames has left tens of thousands of residents under evacuation orders. The fires were threatening homes in upscale Mandeville Canyon and the Brentwood neighbourhood, although officials said they had made progress in stemming the advance there.

The National Weather Service has forecast gusts of between 50mph and 70mph, while drought conditions remain.

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“We know that elevated critical fire conditions will continue through Wednesday”, Los Angeles County fire chief Anthony Maroney said on Sunday.

LA is experiencing its second-driest start to its rainy season in more than a century, according to the non-profit Cal Matters news service. Halfway into the season, LA has only recorded about 0.2 inches of rain since October -— well below the 4.5 inches that is common by January.

Newsom, a Democrat, responded to a barrage of attacks from Donald Trump. The incoming Republican president has accused the governor of depleting water reserves to protect an endangered species of fish, and of refusing to sign a “water restoration declaration” that would have “allowed millions of gallons of water . . . to flow daily into many parts of California”. Newsom’s office has said no such declaration exists.

Trump, who has a long-standing feud with Newsom and refers to him as “Newscum”, also called on the Californian to resign, accusing him of “gross incompetence”.

“The reservoirs are completely full, the state reservoirs here in Southern California,” Newsom said.

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The charred remains of a jewellery store and other shops at a corner of Sunset Boulevard © Michael Nigro/Bloomberg
An air tanker drops fire retardant at the Palisades Fire © Ringo Chiu/Reuters

“That mis- and disinformation I don’t think advantages or aids any of us,” he added. “Responding to Donald Trump’s insults, we would spend another month. I’m very familiar with them. Every elected official that he disagrees with is very familiar with them.”

Newsom also said he had invited the president-elect to visit the affected areas, but had yet to receive a response from the Trump transition team.

Firefighters have tamed three fires since Tuesday, including the Sunset blaze that threatened the Hollywood hills. The Hurst fire in the San Fernando Valley, north of Los Angeles, was 80 per cent contained on Sunday afternoon.

But firefighters are still struggling to tame the two biggest blazes. Newsom said on social media platform X that the Palisades and Eaton fires were 11 per cent and 27 per cent contained. Thousands of firefighters have been deployed to battle the Palisades fire with heavy trucks and air support, the mayor’s office said Sunday. The city has also opened shelters to affected families.

The Federal Emergency Management Agency (Fema) has staff in LA to help Angelenos apply for disaster relief, while the Federal Small Business Administration is offering home and business disaster loans.

Newsom issued an executive order that he said would prevent those who lost their homes from being “caught up in bureaucratic red tape” so they could quickly rebuild.

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The head of Fema on Sunday raised the prospect of US troops being sent to Los Angeles to help control the blaze.

“There are active-duty military personnel that are on a prepare-to-deploy order, that are ready to go in and continue to support the firefighting effort,” Deanne Criswell told ABC’s This Week programme. Speaking on CNN, she warned that strong winds expected in the coming days could spread the fire further.

Map showing the perimeters of the fires in LA and evacuation orders and warnings currently in place

No official estimate of the cost of the damage has yet been released, but analysts at AccuWeather last week calculated the economic loss to be between $135bn and $150bn — short of the $250bn cost associated with last year’s Hurricane Helene. At least 12,300 structures had been destroyed, according to CalFire.

President Joe Biden on Thursday pledged that the US government would pay for “100 per cent of all the costs” created by the disaster, and would ask Congress for more financial aid.

Trump, who on the campaign trail last year threatened to withhold disaster funding from California, has thus far remained silent on whether he would provide similar assistance. On Sunday, he renewed his attacks on the state’s officials.

“The incompetent pols have no idea how to put [the fires] out,” he wrote. “There is death all over the place. This is one of the worst catastrophes in the history of our country. They just can’t put out the fires. What’s wrong with them?”

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On the way out: Transportation Sec. Buttigieg looks back on achievements, challenges : Consider This from NPR

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On the way out: Transportation Sec. Buttigieg looks back on achievements, challenges : Consider This from NPR

U.S. Secretary of Transportation Pete Buttigieg speaks to questions during a news conference at Ronald Reagan Washington National Airport November 21, 2024 in Arlington, Virginia.

Alex Wong/Getty Images


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U.S. Secretary of Transportation Pete Buttigieg speaks to questions during a news conference at Ronald Reagan Washington National Airport November 21, 2024 in Arlington, Virginia.

Alex Wong/Getty Images

From handling crises in the rail and airline industries to overseeing the distribution of billions of dollars in infrastructure funding, Transportation Secretary Pete Buttigieg has taken on a lot over the last four years.

Now, his tenure is coming to an end.

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Host Scott Detrow speaks with Buttigieg about what the Biden administration accomplished, what it didn’t get done, and what he’s taking away from an election where voters resoundingly called for something different.

For sponsor-free episodes of Consider This, sign up for Consider This+ via Apple Podcasts or at plus.npr.org

Email us at considerthis@npr.org

This episode was produced by Brianna Scott, Avery Keatley and Tyler Bartlam. It was edited by Adam Raney.

Our executive producer is Sami Yenigun.

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Trump Calls Officials Handling Los Angeles Wildfires ‘Incompetent’

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Trump Calls Officials Handling Los Angeles Wildfires ‘Incompetent’

President-elect Donald J. Trump offered fresh criticism early Sunday of the officials in charge of fighting the Los Angeles wildfires, calling them “incompetent” and asking why the blazes were not yet extinguished.

“The fires are still raging in L.A.,” Mr. Trump wrote on his Truth Social site. “The incompetent pols have no idea how to put them out.”

Mr. Trump’s comments indicated that the fires, and officials’ response to them, will likely occupy a prominent place on his domestic political agenda when he takes office on Jan. 20. He has renewed a longstanding feud with California’s governor, Gavin Newsom, who in turn has accused Mr. Trump of politicizing the fires.

California politicians have faced criticism over the fires since they broke out on Tuesday, including questions over how local and state authorities had prepared for them and how they have grown so quickly into huge blazes.

Mayor Karen Bass of Los Angeles had to contend with questions about whether there was adequate warning about the likelihood of devastating fires, and why there was a shortage of water and firefighters during the initial response. At a news conference on Thursday, she avoided a question about her absence from the city when the fires began — she was in Ghana on a previously scheduled official visit — and said that any evaluation of mistakes or failures by “any body, department, individual” would come later.

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Mr. Newsom, a Democrat, has also fended off criticism from Mr. Trump, who blamed him for the failure to contain fires and claimed he had blocked an infusion of water to Southern California over concerns about how it would affect a threatened fish species.

Mr. Newsom’s press office responded by saying in a statement that the “water restoration declaration” that Mr. Trump had accused him of not signing did not exist. “The governor is focused on protecting people, not playing politics, and making sure firefighters have all the resources they need,” the statement said.

Mr. Newsom and Kathryn Barger, the chair of the Los Angeles County Board of Supervisors, have invited Mr. Trump to tour fire damage in the city. He has not responded publicly to those invitations.

At least 16 people had died as a result of the fires as of Sunday morning, and at least 12,000 structures had been destroyed, officials said. Mr. Trump alluded to that devastation in his post on Sunday.

“Thousands of magnificent houses are gone, and many more will soon be lost,” he wrote. “There is death all over the place. This is one of the worst catastrophes in the history of our Country. They just can’t put out the fires. What’s wrong with them?”

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His post did not mention any officials by name.

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