Plus: Japan woos TSMC
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With that, back to our regular programming: as we foreshadowed yesterday, an Israel-Hamas deal has just been announced, we’re tracking how Houthi rebels hijacking a cargo ship in the Red Sea via helicopter will affect global trade, and Sam Altman is somehow now back again as OpenAI CEO. You couldn’t make the news up if you tried.
– John Fowler, Co-Founder
Done deal. Israel’s cabinet has just approved a temporary, four-day pause in fighting, in exchange for 50 hostages (mostly women and children) Hamas has held since 7 October. The Israeli prime minister’s office says it will pause fighting for an additional day for every ten additional hostages Hamas frees.
US troops under fire. A Pentagon spokesperson told reporters yesterday (Tuesday) that several US troops at Al-Asad Air Base in Iraq were injured during a recent missile attack by Iran-backed militias. The US military says it’s documented 66 attacks against its personnel in Syria and Iraq since 17 October.
Binance, sell. Binance, the world’s largest crypto exchange, will pay a $4.3B fine (the largest in US Treasury history) for violating US money laundering rules. The company’s co-founder (Changpeng Zhao) has resigned as CEO, agreeing to pay a $50M fine. The crypto world still involves some high highs, and low lows.
North Korea’s first spy satellite. Pyongyang says it launched its first spy satellite into orbit last night (Tuesday), after two failed launches earlier this year. While it’s caused concern in Japan, South Korea and the US, there are questions about the sophistication of North Korea’s space tech, if you catch our drift.
Sam’s back. Just when we thought this saga had ended, OpenAI’s ousted co-founder (Sam Altman) has announced he’s back again as CEO. AI shapes our world, and people shape AI; that’s why the world is now watching Sam Altman.
TOP STORY
A still from the video of the hijacking of the Galaxy Leader released by the Houthis.
Houthis hijack ship in major global shipping lane
Yemen’s Houthi rebels have released footage of their Sunday hijacking of a cargo ship in the Red Sea’s international waters off Yemen.
The term ‘rebels’ implies a ragtag outfit, but Houthi capabilities include aircraft, drones, missiles, and troop estimates reaching up to 200,000 (the decentralised group draws on Yemen’s broader Houthi tribe, making precise numbers tricky).
The Iran-backed Houthis say they hijacked the massive Galaxy Leader ship in response to Israel’s “heinous acts against our Palestinian brothers”.
And the potential ripple effects here are big.
First, this vessel is a classic illustration of global shipping today. It was reportedly:
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🇯🇵 Japan-operated
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🇬🇷 Greece-managed
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🇧🇸 Bahamas-flagged
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🇮🇲 Isle of Mann (UK)-registered
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🇮🇱 Part-owned by Rami Ungar (an Israeli billionaire)
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🇹🇷-🇮🇳 Travelling from Turkey to India, and
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🇧🇬🇷🇴🇺🇦🇲🇽🇵🇭 Bulgaria, Romania, Ukraine, Mexico and Philippines-crewed (all 25 of whom are now held hostage in Yemen’s Hodeidah port area).
That’s a lot of capitals now paying attention.
Second, the list of capitals paying attention gets longer when you consider that a fifth of the world’s oil passes through this chokepoint. At least two cargo ships have now diverted, and many were already diverting from the Panama Canal, where a drought has cut shipping capacity. Now, going the long way around Africa adds another 26 days to the trip. And this all puts pressure on global trade.
Third, it’s a reminder for Israel that its actions in Gaza will continue to face blowback around the world.
For now, Israel and the US are blaming Iran, which is denying any role, while Japan is making direct contact with the Houthis and urging others to help. France also pointed out that none of this helps Yemen’s impoverished people.
INTRIGUE’S TAKE
Given the critical importance of this waterway, the hijacking will inevitably draw more international naval assets to the region, raising the stakes higher.
And this, all just as Israel and Hamas agree to hit pause.
Also worth noting:
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The US is reportedly reviewing whether to restore the Houthi rebels to the US terrorist list, after removing them from the blacklist in 2021 to assist with humanitarian assistance to Yemen.
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After the US-led invasion of Iraq in 2003, the Houthis adopted the slogan, “God is great, death to the U.S., death to Israel, curse the Jews, and victory for Islam”. A Houthi politburo member tweeted the same motto on Sunday.
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MEANWHILE, ELSEWHERE…
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🇯🇵 Japan: Taiwan’s TSMC is reportedly considering opening up a third semiconductor factory in Japan to produce advanced 3-nanometer chips. If confirmed, this would be a win for Prime Minister Kishida who’s been seeking to elevate Japan as a semiconductor hub.
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🇬🇧 UK: Germany and the UK are discussing building an undersea hydrogen pipeline connecting the two countries across the North Sea. In its current ideation, the project would see hydrogen produced via the UK’s vast offshore wind reserves then piped and sold to Germany.
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🇵🇭 Philippines: The US and the Philippines have re-launched joint patrols of the South China Sea, years after halting them. During his recent US trip, President Marcos Jr hinted at rising tensions with China and warned that the situation in the region had “become more dire”.
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🇧🇷 Brazil: Authorities have recorded Brazil’s hottest-ever temperature (44.8C / 112.6F) in the country’s south-eastern state of Minas Gerais. A heatwave has touched parts of Brazil, while a drought has hit the Amazon river and its tributaries.
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🇸🇦 Saudi Arabia: The central banks of China and Saudi Arabia have signed a currency swap worth nearly $7B. Central banks use these swaps to boost liquidity, hedge risk, and foster investment and trade. Beijing currently has 29 active swaps, reportedly the most of any country.
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EXTRA INTRIGUE
What we’re reading about the world’s entertainment industry
PHOTO OF THE DAY
Credits: Florion Goga/Reuters.
Think your parliament is dysfunctional? Well, on Monday, opposition lawmakers in Albania upped the ante with smoke bombs and a small fire in the middle of the legislative chamber, to protest the government’s annual budget. An opposition figure said their goal was to “bring pluralism to parliament.” Yikes.
DAILY POLL
Who has the best drink? |
Yesterday’s poll: Do you support a ceasefire in Gaza? Why or why not?
🟩🟩🟩🟩🟩🟩 👍 Yes (62%)
🟨🟨🟨⬜️⬜️⬜️ 👎 No (35%)
⬜️⬜️⬜️⬜️⬜️⬜️ ✍️ Other (write-in) (3%)
Your two cents:
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👍 M.A: “Eliminating Hamas brutally and with thousands of innocent casualties will not stop violence, but clearly create more hate towards Israel among the affected Palestinian population and lay the foundation for a worse future terrorist organisation.”
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👎 S.S: “It will just get Hamas to regroup and resupply. That will prolong the war.”
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✍️ M.P: “Israel should scale back their forces significantly and conform to International Law. The Israeli government should support the typical tactics of negotiations and increased intelligence with high accuracy strikes using drones, etc. instead of the current rampage that kills everyone (including many children and even possibly hostages). [but] I think a complete ceasefire would not make sense as Hamas still is sending rockets and has hostages.”