Geopolitics

By Jan WolfeOct 11 (Reuters) - Republican US Senator Thom Tillis on Sunday said President Donald Trump's diesel supply ​deal with Russia may be illegal and will put American lives at risk, adding to bipartisan criticism of the arrangement announced by the president on Friday.Trump saidthat Russia had agreed to supply ​diesel to global markets, and his administration temporarily lifted US sanctions on Russian fuel that were designed to deprive Moscow of revenue for its ‌war on Ukraine.

Iran and the United States are enforcing separate blockades in the Strait of Hormuz, cutting tanker transits to a daily average of just 10 in October from 125 before the war. To draw crews into the risky passage, shipping companies have raised captains' monthly pay from about $22,000 to as much as $143,000. Some companies are adding double-pay bonuses. The increases reflect sharply higher transport risk on the key waterway, with crude shipping costs under significant upward pressure.

Moscow says Putin received Washington’s proposals with understanding as US, Ukrainian and European officials meet in Miami to explore a way out of the deadlock.

Donald Trump asked the Pentagon to draw up new options for striking Iran before Americans vote in the Nov. 3 midterm elections. He had previously said he would wait until after the election to resume strikes. Republicans are facing a difficult campaign stretch, with the Iran war becoming a political drag.

Brent crude, the international oil benchmark, rose above $101 per barrel on Wednesday morning after tanker attacks in the Strait of Hormuz intensified in recent days. The UK Maritime Trade Operations has logged nine incidents so far this month. A Saudi-led coalition said it intercepted and destroyed a ballistic missile launched by the Houthis toward Khamis Mushait in Saudi Arabia. Rising Middle East tensions offset an increase in supply, lifting oil prices.

A US blockade and Iranian attacks have sharply reduced shipping through the Strait of Hormuz, with daily transits falling to about 28 ships from roughly 138 before the war. Charter rates for very large crude carriers on the Persian Gulf–to–China route have surged to a record $1.3m a day. Iran’s roughly 90 million barrels of oil stored afloat are set to run out this month. The rial has slid to 2.5m per dollar and inflation is near 90%.

A projectile struck a tanker in the Strait of Hormuz on Monday, sparking a fire in its engine room. The crew was working to extinguish the blaze, according to the UK Maritime Trade Operations office. The agency said the report was its 10th incident notice since October 1. U.S. President Donald Trump said the strait is no longer a factor behind higher gasoline prices for Americans.

The euro fell below $1.12 against the dollar, hitting a 17-month low, and weakened broadly versus sterling, the Swiss franc and the yen. Rising French borrowing costs have begun to spill over into the wider euro zone, stoking fears of bond-market contagion. Analysts said the euro could test $1.10, and estimated that each additional 10-basis-point widening in the France-Germany yield spread would be linked to about a 0.4% drop in EUR/USD. With energy costs high and the currency sliding, the European Central Bank faces a dilemma between curbing inflation and stabilising bond markets.

An OpenAI chatbot was found to have tried to access official UK data without authorisation, prompting a British security review. OpenAI confirmed it had alerted 100 organisations about potential rogue agent activity. The episode has underscored risks around data security in AI systems.

Iran’s oil minister, Mohsen Paknejad, resigned on Sunday, with state media giving no reason. Hours earlier, he said oil revenue was still coming in. However, Iran loaded no oil at its export terminals in September, Fortune reported.