Breaking AI & Tech News Analyzed

The conflict in the Middle East is expected to have a significant impact on the UK's economy, with the Organisation for Economic Cooperation and Development (OECD) warning of rising inflation and downgrading the UK's growth forecast to 0.7% this year.The OECD's analysis suggests that the UK economy will grow by just 0.7% this year, compared to its last forecast of 1.2% for 2026. This downgrade is attributed to a weakening of the UK jobs market and a contraction in business investment towards the end of 2025.The UK's economy is expected to suffer higher inflation than previously expected, with the OECD citing the country's dependence on international trade and imports of fuel as a major factor. In contrast, France, Germany, and Italy are expected to suffer a more modest hit to growth of 0.2 percentage points.The OECD's chief economist noted that the evolving conflict in the Middle East will test the resilience of the global economy, which is expected to grow at an average rate of 2.9% this year. However, the organization warned of a significant downside risk to the outlook, citing persistent disruptions to exports from the Middle East and potential repricing in financial markets.UK Chancellor Rachel Reeves responded to the OECD's warning, stating that the government plans to take steps to build a stronger, more secure economy, including handing more powers to regional mayors, embracing AI and innovation, and establishing a closer relationship with the EU.

UK Chancellor Rachel Reeves is facing pressure to raise taxes on businesses generating 'windfall' profits linked to the US-Israel war on Iran to fund emergency cost of living support for UK households.A group of leading charities, campaigners, and trade unions, including Greenpeace UK, the National Education Union, and Tax Justice UK, have written an open letter to Keir Starmer and Reeves, urging the government to strengthen its existing North Sea energy windfall tax and introduce new levies for firms in other sectors that stand to financially benefit from the conflict.The letter highlights that energy companies, banks, agricultural commodities businesses, defence companies, and tech firms are likely to profit from the economic fallout of the war. The group argues that the extra revenue generated from taxing these 'excess profits' could be used to support households struggling with the cost of living and invest in the UK's future energy security.R Reeves has signalled that the government is ready to provide targeted help for households grappling with the economic fallout from the Middle East conflict, amid a surge in energy prices since the onset of the war. The chancellor has also warned companies that she will not tolerate corporates profiteering from the crisis, telling bosses that the Competition and Markets Authority has been put on notice to detect and crack down on price gouging.The UK already has a windfall tax on North Sea oil and gas firms, the energy profits levy, which is due to run until 2030. However, Reeves had been planning to ease the tax before the US and Israel attacked Iran on 28 February.

The UK government has unveiled a new policy to prioritise British suppliers for public contracts in key sectors deemed vital to national security. Shipbuilding, steel, AI, and energy infrastructure will be the primary areas where British suppliers will be given preference. Under the new guidance, departments will be required to use British steel or justify sourcing it from overseas. This move is part of a broader effort to bolster national security and economic resilience, particularly in the face of global supply chain disruptions highlighted by the war in the Gulf. A Public Interest Test will also be introduced, obliging departments to assess whether outsourced service contracts over £1m could be delivered more effectively in-house. This test is expected to cover more than 95% of central government contracts by value. Chris Ward, a Cabinet Office minister, emphasised that these reforms aim to support British jobs, protect national security, and grow the economy. The policies are part of the National Security Strategy, which seeks to align national security with economic growth and build the resilience of British supply chains. While the UK is still subject to international obligations such as the Agreement on Government Procurement (GPA) – World Trade Organisation (WTO) rules, national security exemptions are being utilised to implement these new rules. Larger departments spending over £100m annually will need to publish an “insourcing” strategy, outlining plans to bring services back in-house where they offer better value. The government will also prioritise community impact in buying decisions, encouraging firms to demonstrate how their bids will create local jobs and apprenticeships. Additionally, a new suite of AI tools has been developed to streamline the commercial process, making it simpler, faster, and fairer for small businesses and charities to bid for work.

The US-Israel war on Iran has effectively closed the Strait of Hormuz, a critical shipping route for materials used in the production of various everyday products. As the conflict enters its fifth week, global oil shortages are forcing countries to take severe measures to conserve their reserves. While US gas prices have surged to their highest level in years, the impact of rising oil prices extends far beyond drivers. Oil is a crucial component in the supply chain, powering machines that manufacture goods and fueling trucks that transport them to stores. The price increases come at a time when many Americans are already strained by rising housing costs, grocery bills, and electricity statements. A recent Gallup poll found that a third of Americans have had to skip meals and forego other needs to afford their healthcare. Oil and Gas The average cost of gas in the US has jumped about 30% over the last month, with the national average hitting $3.97, the highest since 2023. Diesel, which fuels many trucks transporting goods, has increased by about 50%, or $1.69 more than it did a year ago. Higher diesel costs could soon affect transportation costs and grocery prices, as roughly 85% of agricultural goods are transported by trucks. The impact of oil and gas shortages on the supply chain can be categorized as first-order effects, such as higher prices at the gas pump, and second-order effects, including potential price increases for crops, semiconductor chips, and medical devices. Fertilizer Farmers are struggling as the spring growing season approaches, facing higher fertilizer costs and falling commodity prices. A third of global urea trade, a solid nitrogen fertilizer, passes through the Middle East region, with about 20% of imported fertilizer to the US coming from Qatar. Nitrogen fertilizer is critical to grow corn, which is cultivated by about 500,000 farmers in the US. The White House has promised to minimize disruptions to the US economy, with alternative sources of fertilizer being sought from around the world. Helium The conflict has disrupted the global helium supply after Iranian attacks in Qatar, the second-largest producer of helium after the United States. Helium is a key import used in aerospace, magnetic resonance imaging (MRI), and semiconductor chips that power AI. Jet Fuel Increases in oil prices could result in higher airfare and shipping costs. The price of jet fuel has doubled since the start of the war, according to the International Air Transport Association. United Airlines announced last Friday that it would have to cut flights due to the surging cost of fuel. < h2>Mortgage Rates Just as US mortgages were starting to fall in February, the average 30-year fixed mortgage rate ticked up to its highest level in months, reaching 6.22%. Mortgage rates are closely tied to the overall state of the economy, and the US Federal Reserve's decision to leave rates unchanged last week cited uncertainty in the economy, particularly with conflict in the Middle East.

Ilia Malinin, the 21-year-old American figure skater known as the Quad God, has bounced back from his disappointing performance at the Winter Olympics by leading the short program at the world figure skating championships in Prague. Malinin, the defending two-time world champion, delivered a personal-best score of 111.29 in the short program, showcasing a quad flip and a combination of quad lutz and a triple toe loop. This performance has given him a substantial lead of over nine points heading into Saturday's free skate. Despite failing to land his trademark quad axel in competition, opting for a triple version instead, Malinin's routine met expectations. He will look to maintain his lead and reclaim his title. In contrast, French skater Adam Siao Him Fa impressed with a perfect quad toe loop in combination, scoring 101.85 points. Estonia's Aleksandr Selevko was a surprise third with a personal best 96.49 points. Malinin's Olympic struggles saw him fall from first to eighth place after a disastrous free skate, where he fell twice and made critical mistakes. He attributed his performance to overwhelming nerves and negative thoughts. With Olympic champion Mikhail Shaidorov from Kazakhstan skipping the competition, the stage is set for Malinin to regain his form and dominance in the figure skating world.

A jury in the United States has ordered social media giant Meta to pay $375m for harming children's mental health and making them vulnerable to sexual exploitation.The verdict, handed down in New Mexico after a six-week trial, marks the first time a US state has successfully sued Meta over child safety issues. State authorities accused Meta, the parent company of Instagram, Facebook, and WhatsApp, of failing to protect minors.Jurors sided with state prosecutors who argued that Meta prioritized profits over safety and violated parts of New Mexico's Unfair Practices Act. The jury agreed with allegations that Meta made false or misleading statements and engaged in 'unconscionable' trade practices that unfairly took advantage of the vulnerabilities and inexperience of children.The case involved testimony from 40 witnesses, including employees-turned-whistle-blowers, and reviewed hundreds of documents, reports, and emails. New Mexico Attorney General Raúl Torrez called the verdict 'a historic victory for every child and family who has paid the price for Meta's choice to put profits over kids' safety.'Meta has stated that it will appeal the verdict, with a spokesperson saying, 'We respectfully disagree with the verdict and will appeal. We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content.'A second phase in New Mexico's proceedings against Meta is scheduled to begin in May, when a judge will hear the state's claim that the company should be ordered to pay additional penalties and make specific changes to its platforms and company operations.

Global markets experienced a significant shift as stock markets in Asia and Europe rose following reports that US President Donald Trump had sent a 15-point framework for peace to Iran. This development sparked hopes of a ceasefire in the Middle East, influencing market sentiment. The price of oil, which had fallen by 4% in early trading to below $100 (£75) per barrel of Brent crude, later recovered to approximately $100. This fluctuation was driven by the prospect of an end to the conflict easing the squeeze on oil supply. The straits of Hormuz, a vital shipping lane through which 20% of global oil supplies transit, had been effectively closed by Iran, causing a significant disruption to oil and gas shipments. Iran's announcement that it would permit “non-hostile” ships to pass safely through the strait of Hormuz helped to reopen this crucial waterway. This move, combined with the potential peace plan, contributed to the positive market sentiment. Stock markets in Asia saw notable gains, with Japan’s Nikkei rising by 2.9%, India’s S&P; BSE Sensex almost 2% higher, and Hong Kong’s Hang Seng up by just under 1%. European markets also saw increases, with the FTSE 100 in London up by almost 1%, Germany’s Dax trading 1.6% higher, and France’s Cac 40 climbing by 1.4%. However, Iran’s foreign affairs ministry informed the UN Security Council and the International Maritime Organization that “non-hostile” vessels could pass through the strait, which also poses a risk to global food security due to the disruption of fertiliser supplies. The World Trade Organization warned that this could lead to food price shocks. The conflict's impact on gold prices was also noted, as the metal traditionally seen as a safe haven asset during troubled times experienced a 13% decline to about $4,460 per ounce. Additionally, Larry Fink, CEO of BlackRock, warned that a prolonged conflict could lead to oil prices rising to $150 a barrel, potentially triggering a global recession.

The relationship between dogs and humans has long been a subject of fascination, and recent groundbreaking research has shed new light on the origins of this enduring bond. Published in the journal Nature, the study reveals that the genetic evidence for domestic dogs dates back an astonishing 15,000 years, a full 5,000 years earlier than previously thought.Ancient DNA analysis of dog remains has provided unprecedented insight into the early days of dog domestication. The oldest specimen, a 15,800-year-old dog buried alongside human remains in Anatolia, Turkey, and a 14,300-year-old jawbone from Gough's Cave in Somerset, England, are key findings that have helped researchers reevaluate the timeline of dog domestication.According to Dr. Lachie Scarsbrook of Ludwig Maximilian University of Munich, the study suggests that dogs with diverse ancestries already existed across Eurasia 15,000 years ago, from Somerset to Siberia. This raises the possibility that domestication occurred during the last ice age, more than 10,000 years before the emergence of other domestic plants and animals.The research, conducted by international teams, analyzed DNA from bones at various sites, including Gough's Cave, Pınarbaşı in Turkey, and two sites in Serbia. Advanced sequencing techniques allowed researchers to piece together tiny fragments of ancient DNA, enabling clear species identification for the first time.Key findings include:Dogs were widespread across Europe and western Asia by at least 14,000 years ago.Isotopic analysis revealed dogs consumed a diet rich in fish, matching the local human diet in Turkey.Evidence of deep emotional bonds between humans and dogs, including the burial of puppies over human remains.The study's authors suggest that dogs may have increased hunting efficiency or served as an early warning system against predators. The genetic relationship between dogs across sites implies that they may have spread rapidly across Europe, possibly through trade between unrelated groups.As Prof. Laurent Frantz notes, the fact that people exchanged dogs so early suggests these animals must have been important, serving purposes beyond being pets. The research provides a fascinating glimpse into the ancient partnership between humans and dogs, highlighting the significance of this bond in human history.

The ongoing conflict in Iran has sent shockwaves through global energy markets, with economies in Asia being hit particularly hard. The closure of the Strait of Hormuz, a critical passage for oil and gas shipments, has led to a 90% collapse in traffic through its waters. This has resulted in energy prices surging, affecting countries such as India, Nepal, and the Philippines.India has redirected liquefied gas supplies to households, limiting them to the plastics industry, while Nepal has rationed gas and the Philippines has trimmed the government workweek to four days. Bangladesh has closed universities and rationed fuel, highlighting the widespread impact of the conflict.The US economy has shown relative resilience, with the S&P; 500 index losing only 5% since the start of the conflict. This is attributed to the country's abundance of domestic natural gas, which satisfies about 36% of its energy needs and insulates it from international price fluctuations.However, this has led to accusations that the US is recklessly spreading havoc globally while suffering relatively little harm itself. The tariffs imposed by the US have also had far-reaching consequences, with economists concluding that US consumers and businesses are paying the majority of the costs.The International Monetary Fund has revised its growth forecasts, noting that the US economy has emerged largely unscathed, while prospects for economic growth in other countries have weakened. The World Trade Organization has warned that persistently high energy prices will slow merchandise trade growth and have a lopsided impact on growth, with North America potentially seeing a boost, while Europe and Asia are likely to be negatively affected.The conflict has also disrupted the oil and gas economy, with countries like Bangladesh, India, and Pakistan facing a drop in remittances from their citizens working in Gulf countries. Furthermore, the environmental impact of the conflict has been significant, with interest in coal being reinvigorated in Asia as a result of the energy crisis.The US's actions have raised concerns about its reliability as a partner in maintaining international stability, with erstwhile allies forced to accept that Trump's America is now a source of global uncertainty. The US's belligerence is unlikely to end soon, with tens of millions of Americans motivated by contempt for the rest of the world and a desire to assert US dominance.