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The United States has escalated financial pressure on Baghdad by blocking a $500m shipment of Iraqi oil dollars and pausing security cooperation, signaling a hardline stance against Iran-aligned militias during the ongoing conflict with Iran.Key DevelopmentsFinancial Blockade: The US Department of the Treasury blocked a recent cargo plane shipment carrying nearly $500m in US banknotes, which were proceeds from Iraqi oil revenues held at the Federal Reserve Bank of New York.Security Pauses: Washington has paused some security cooperation programmes with the Iraqi military, a move aimed at increasing pressure on Baghdad.Repeated Action: This is the second scheduled dollar shipment to Iraq’s central bank delayed by Washington since the US-Israel war on Iran began in late February.Targeting Proxies: The move follows attacks claimed by Iran-aligned groups inside Iraq targeting US military facilities and neighboring countries.Data & Market ImpactThe suspension of these transfers represents a significant economic lever. Since the 2003 invasion, Washington has managed tens of billions of dollars of Iraqi oil proceeds at the Federal Reserve Bank of New York. Large shipments of cash are sent back to Baghdad annually to stabilize the economy, creating a system where Iraq’s financial stability is heavily dependent on US-controlled channels.By holding these funds, the US effectively controls the flow of hard currency into Iraq, allowing it to influence the country’s economic stability and political alignment without direct military occupation.Why This MattersThis move places Iraq in a precarious geopolitical position. As the war with Iran intensifies, Iraq is caught between its historical reliance on Iranian support and its need for US security guarantees and economic aid.Economic Stability: Iraq’s government relies on these dollar shipments to function. A prolonged halt could lead to liquidity shortages, affecting public services and the exchange rate of the Iraqi Dinar.Regional Tensions: The pressure is designed to force Iraq’s hand against powerful Iran-aligned groups, such as those within the Popular Mobilisation Forces (PMF). Failure to comply could lead to further US military strikes against these factions.Historical Leverage: The US is utilizing a legacy of the 2003 invasion—control of oil revenues—to exert influence over a sovereign nation, highlighting the enduring complexity of post-war Iraq.Expert InsightAnalysts suggest this is a calculated strategy to isolate Iraq from Tehran. Prime Minister Mohammed Shia al-Sudani faces a difficult balancing act; he requires US support for a second term while simultaneously needing to appease Iran-backed militias to maintain internal stability.The blocking of funds serves as a warning that continued attacks on US interests will result in economic isolation. It forces Iraq to choose a side in the broader regional conflict, potentially alienating its powerful domestic militias if it bows to US pressure.What Happens NextNegotiations: Iraq’s central bank will likely seek to negotiate with the US Treasury to restore the flow of funds, citing the need to maintain economic stability.Escalation of Proxy Attacks: Iran-aligned groups may respond to the financial pressure by increasing attacks on US interests in the region to force Baghdad to resist US demands.Policy Shift: Iraq may be compelled to take more aggressive action against PMF factions to prove its loyalty to Washington, potentially destabilizing the country’s internal security apparatus.

Venezuela's interim President Delcy Rodriguez has urged the United States to remove the sanctions that have severely impacted the country's economy. Her comments come after the US Treasury Department announced new licenses allowing transactions with certain Venezuelan banks and individuals. However, Rodriguez argues that these measures are insufficient to help Venezuela overcome its economic crisis. She believes that a complete removal of sanctions is necessary to provide legal certainty to investors and foster sustained economic growth. “We reiterate the need to advance towards a Venezuela free of sanctions, as a means of providing institutional legal certainty to investors coming to our country – a setting where they are guaranteed sustained investment over time and a forward-looking perspective,” Rodriguez stated on social media. The Venezuelan government has been facing protests from workers demanding higher wages and better pensions, amid frustration over the country's sluggish economy. Rodriguez's administration has sought to cooperate with US President Donald Trump's demands, including opening Venezuela to foreign investment and loosening restrictions on oil exploration and mining. Since Maduro's removal, the US has moved to tighten relations with Venezuela, reopening its embassy in Caracas and gradually easing sanctions on certain sectors, including the oil industry. The US currently approves all Venezuelan oil sales abroad, with the proceeds placed in a US-controlled bank account. Rodriguez has pledged to address concerns over workers' wages on May 1, a day commonly associated with labor rights. She has also expressed interest in hearing from energy executives about potential projects in Venezuela and changes to regulation.

The US naval blockade of Iranian ports in the Gulf has taken effect, marking a significant escalation in the ongoing conflict between the US-Israeli coalition and Iran. The blockade, which began on Monday at 5:30 pm Iranian time, applies to any ships entering or departing Iranian ports or coastal areas.US Central Command (Centcom) did not make a formal announcement, but the move is seen as a test of economic endurance for both nations. The blockade aims to restrict Iran's oil exports and imports, potentially costing the country approximately $276 million a day in lost exports and disrupting $159 million a day in imports, according to Miad Maleki, a former US treasury official.Iran has warned that the blockade will lead to higher petrol prices, which could impact ordinary Americans. The country's parliamentary speaker, Mohammad Bagher Ghalibaf, taunted the US, saying Americans would soon be nostalgic for $4-$5 gas. The current average petrol price in the US is $4.13 a gallon, up from $2.98 before the conflict began.The conflict has also drawn in other nations, with France planning to organize a conference to create a multinational mission to restore navigation in the Strait of Hormuz. However, Germany, Spain, Italy, Poland, and Greece have ruled out sending naval forces to support the blockade. The UK has also stated that it does not support the blockade and will not be drawn into the war.The situation remains volatile, with Iran threatening to retaliate if its ports are threatened, and the US warning that any Iranian attack boats approaching the US flotilla will be "immediately eliminated". The conflict has also sparked a war of words between US President Donald Trump and Pope Leo XIV, with the pope condemning the use of religious language to justify the war in Iran.

Goldman Sachs's chief executive, David Solomon, has expressed heightened awareness of the capabilities of Anthropic's Mythos AI model and is collaborating closely with the tech firm following warnings about the cybersecurity risk it poses.The US bank has been closely monitoring the rapid advancements in artificial intelligence, including large language models (LLMs), as part of broader efforts to protect itself from hackers.“Obviously the LLMs are making rapid progress and we’re hyper-aware of the enhanced capabilities of these new models with the help of the US government and the model publishers,” Solomon told analysts on an earnings call on Monday.Anthropic, the company behind the Claude family of AI tools, claimed last week that its latest model, Mythos, posed an unprecedented risk due to its ability to expose flaws in IT systems. The company warned that AI models have reached a level of coding capability where they can surpass all but the most skilled humans at finding and exploiting software vulnerabilities.Solomon emphasized that Goldman Sachs is working closely with Anthropic and all of its security vendors to harness frontier capabilities. “We are very focused on supplementing our cyber and infrastructure resilience. And this is part of our ongoing capabilities that we have been investing in, and are accelerating our investment in.”The news comes after the US Treasury secretary, Scott Bessent, summoned Solomon and other big American bankers to Washington to discuss the Mythos model last week. The meeting focused on heads of so-called systemically important banks, where regulators believe that a major disruption to their operations, or their potential collapse, would put financial stability at risk.On Monday, the UK government’s AI Security Institute (AISI) warned that Mythos was a “step up” over previous models in terms of the cyber threat it posed. AISI said Mythos could carry out attacks that required multiple actions and discover weaknesses in IT systems without human intervention.

The ongoing global finance talks between the International Monetary Fund (IMF) and the World Bank Group (WBG) have taken a contentious turn. Governments are being urged not to mention climate change, despite its growing impacts and the pressing need for climate finance.The climate crisis has significant implications for developing countries, which are already paying billions to repair damage from droughts, floods, and storms. The World Bank Group aims to devote 35% of its funding to climate-related activities, but US pressure may hinder these efforts.US Treasury Secretary Scott Bessent has demanded the removal of some climate finance targets from the World Bank's aims, insisting on an 'all-of-the-above approach to energy' that includes financing for gas, oil, and coal. This move has sparked alarm among other countries, including large developed economies.Experts warn that sidelining climate change discussions would be disastrous for the developing world. Mohamed Adow, director of the Power Shift Africa thinktank, described the situation as 'beyond absurd', emphasizing that fossil fuels and the climate emergency are inextricably linked.The World Bank is the biggest single source of climate funding, and many donor countries channel their climate finance largely through the multilateral development banks. At the Cop29 UN climate summit in Azerbaijan in 2024, countries agreed that at least $1.3tn a year should flow to the developing world by 2035 to help countries cut greenhouse gas emissions and cope with the impacts of extreme weather.Lord Stern, a former World Bank chief economist, suggested that much could still be achieved without formally labelling projects as climate-related, emphasizing that investing in low-carbon infrastructure and energy systems is crucial for sustainable development.

The US Treasury secretary, Scott Bessent, recently convened a meeting with major American bank chiefs in Washington to address growing concerns over the cyber risks associated with Anthropic's latest AI model, Claude Mythos. This model has reportedly exposed thousands of vulnerabilities in software and popular applications.The meeting, which included Jerome Powell, the Federal Reserve chair, and CEOs from prominent banks such as Goldman Sachs, Bank of America, Citigroup, Morgan Stanley, and Wells Fargo, was called to discuss the potential risks posed by this advanced AI technology. Jamie Dimon of JP Morgan was invited but could not attend.Anthropic has restricted the release of Claude Mythos to a limited number of businesses, including Amazon, Apple, and Microsoft, due to concerns that hackers could exploit the model's capabilities to compromise data security. The company has noted that the model uncovered vulnerabilities up to 27 years old that had not been previously identified.This development comes as the US government has designated Anthropic as a supply chain risk, a designation the company is contesting in court. The meeting highlights the increasing concern among regulators and financial leaders about the potential for AI to both enhance and threaten cybersecurity.

The US Treasury Department has taken a strong stance against the Financial Times (FT), formally requesting a retraction of a report that suggested Treasury Secretary Scott Bessent had discussed increasing oversight of the Federal Reserve in a manner similar to the Bank of England's model. In a detailed email to senior editors at the FT and its parent company, Nikkei Inc., Treasury officials disputed multiple claims in the story, criticizing the headline as misrepresenting the underlying reporting. The FT had reported on March 26 that Bessent had discussed adopting practices similar to the Bank of England, including regular communication between the Fed governor and the US Treasury Secretary over inflation targets. Treasury officials denied that Bessent had endorsed such views or discussed adopting similar practices in Washington. They also took issue with the headline, which stated that Bessent had 'praised' the Bank of England model for tighter oversight, a claim that did not appear in the text of the story. “The Secretary has never made any of the above statements in public or private,” Elliott Hulse, the acting assistant secretary for public affairs, wrote in the email. “At no time has the secretary ‘discussed tightening the US Treasury’s oversight of the Federal Reserve by adopting elements of the Bank of England’s model in a step that would shake up the central bank’s relationship with government.’” The FT responded by stating they were confident in the accuracy of their story, including US Treasury responses in the article. This incident highlights the sensitivity surrounding the Federal Reserve's political independence, especially following Donald Trump's repeated threats to fire Fed Chair Jerome Powell for not reducing borrowing costs as requested. Investors prioritize the Fed's independence in making policy decisions, as political pressure could lead to rapid inflation and subsequent sharp rate increases. The Treasury's actions mark an effort to discredit the FT report, with Bessent himself denying the claims on social media.

In a groundbreaking development, US President Donald Trump's signature will soon be featured on US currency as part of plans to commemorate the 250th anniversary of the country's Independence Day on July 4. This move, announced by the US Department of the Treasury on Thursday, marks a significant departure from tradition, as Trump becomes the first sitting president to have his signature on US banknotes.Currently, US banknotes, which come in denominations of $1, $2, $5, $10, $20, $50, and $100, feature the signatures of the Treasury secretary and the treasurer. The decision to include Trump's signature is seen as a recognition of his 'historic achievements,' according to US Treasury Secretary Scott Bessent, who noted that Trump has put the country on a path towards 'unprecedented economic growth' and 'fiscal strength and stability.'The economic growth under Trump has been largely in line with the post-pandemic trend overseen by his predecessor, Joe Biden. Specifically, US GDP grew 2.2 percent in 2025, slightly below the 2.5 percent average expansion from 2022-2024. This move has not been without criticism, with California Governor Gavin Newsom mocking the announcement, suggesting that Americans will now know exactly who to blame for rising costs of living expenses.This development comes on the heels of the US Commission of Fine Arts approving the minting of a commemorative gold coin bearing Trump's image, a move that also drew backlash. Critics have likened these actions to the behavior of dictators and monarchs. Trump, known for aggressively pushing his personal brand, has attached his name to various institutions and projects, including the John F Kennedy Center for the Performing Arts and an upcoming class of battle ships.

Alireza Tangsiri, the Islamic Revolutionary Guard Corps (IRGC) naval commander killed in an Israeli airstrike, was a veteran hardliner with a reputation for fiery rhetoric. He had a deep understanding of the strategic importance of the Strait of Hormuz, a critical waterway that carries a fifth of the world’s oil and gas.Tangsiri was a prominent figure in the IRGC, having won his credentials during the Iran-Iraq war and rising through the ranks to become the commander of the IRGC’s maritime force in 2018. He was known for pioneering unconventional weapons that allowed Iran to project power in the Persian Gulf and beyond.The US Treasury sanctioned Tangsiri in 2019 and 2023, citing his role in overseeing the IRGC Navy’s testing of cruise missiles and his involvement with a company that developed armed drones. These weapons could potentially be used to maintain the current blockade of the Strait of Hormuz.Tangsiri was also a strong supporter of fast boats, which can threaten civilian shipping and evade modern warship defense systems. His recent statements had dared the US to launch a ground assault on Kharg Island, Iran’s principal hub for oil exports, and warned of the impact on oil prices.The Israeli airstrike that killed Tangsiri has been seen as a significant blow to the IRGC. The commander of US Central Command, Adm Brad Cooper, said the killing “makes the region safer.” Israel’s Defense Minister, Israel Katz, described the strike as a “message” to the IRGC, vowing to “hunt you down and eliminate you one by one.”