Iran has been upping its threats against the world’s oil supply, striking at least one cargo ship yesterday and reportedly laying mines in the Strait of Hormuz, the waterway near Iran through which 20% of global oil supply passes. Its military command even suggested that the world should prepare for prices of $200 per barrel. Seeking to ease supply concerns and cool prices, the International Energy Agency confirmed on Wednesday that its 32 members – which include the United States – would collectively release 400 million barrels of oil from its strategic reserves. This would be more than double the previous record set in 2022 following Russia’s full-scale invasion of Ukraine. The massive drawdown suggests that these countries believe the Strait will remain mostly closed for a while yet.
José Kast, an ultraconservative elected in December on pledges to deregulate the economy, slash immigration, and crack down on crime, takes control today of South America’s fourth-largest economy. The political pendulum swing is a dizzying one — Kast succeeds the tumultuous term of socialist Gabriel Boric — reflecting a broader rightward trend in Latin America these days. But Kast steps into the job at a trying time: Chile, the world’s largest copper producer, faces huge economic uncertainties tied to the war in Iran, which has pushed up oil prices and set inflationary fears soaring. The Chilean peso, which had gained roughly 10% in the last six months prior to the US and Israel strikes on Iran, has already lost half of that momentum since the conflict began.
From shopping to services, consumer spending is showing strength across categories. Holiday shopping got an early start, and it’s not just higher earners filling their carts. Bank of America Institute sees continued spending growth recovery for lower- and middle-income households. See what’s driving the trends.
Garment workers in Bangladesh have taken to the streets over the past week, demanding higher wages and forcing more than 600 factories to shut down nationwide.
As AI creates new opportunities, the people who understand a community best play an important role in determining how those opportunities take shape. Across the US, Microsoft is supporting AI literacy classes as part of a new program developed in collaboration with the Public Library Association, working through trusted local institutions to help people build practical AI skills. By pairing new technology with local knowledge, the initiative is helping communities explore how AI can support their needs and open new possibilities, while putting local leaders and organizations at the center of that work. Read the full story here.
We’re breaking down the three main issues that could help decide tomorrow’s elections: the cost of living, Israel, and AI.