Breaking AI & Tech News Analyzed

The world's finance ministers and central bank governors are gathering in Washington for the half-yearly meetings of the International Monetary Fund and the World Bank, with the global economy in a perilous spot. The US-Israeli war on Iran, coming soon after the Covid pandemic and Russia's invasion of Ukraine, has triggered significant economic turbulence.Even if a durable peace deal in the Middle East can be reached, there will still be permanent economic scars. The conflict has caused damage to infrastructure, heaping further pressure on already struggling households. This is the biggest energy shock of the modern age, with oil and gas prices surging, inflation rising, and borrowing costs increasing.The IMF has said it will cut its growth forecasts for 2026 when it publishes its flagship world economic outlook. In every scenario, growth is slower and inflation higher. Households worldwide will feel the pain, with the world's poorest bearing the brunt.The fund's managing director, Kristalina Georgieva, has urged officials to work together, warning that "go-it-alone actions" may have appeal but would ultimately make matters worse. The IMF cautions that any energy support should be targeted and temporary to limit the costs of blanket support and avoid stoking inequality.For central banks, the fund urges them to remain vigilant, with financial markets expecting interest rates to be kept on hold or raised to prevent high inflation from becoming entrenched. The economic problems are interlinked with political instability, making it a challenging situation for governments worldwide.

Iraq's parliament has elected Nizar Amedi as the country's new president, ending a political deadlock that had paralyzed government formation. Amedi, nominated by the Patriotic Union of Kurdistan (PUK), secured 227 votes in a second round of voting on Saturday, comfortably defeating independent candidate Muthanna Amin Nader, who received 15 votes.He becomes the sixth Iraqi head of state since the removal of Saddam Hussein in a US-led invasion in 2003. Speaking to parliament after the vote, Amedi acknowledged the weight of what lies ahead, pledging to work alongside all three branches of government and committing to the principle of 'Iraq First'.Amedi also condemned attacks that had targeted Iraq during the US-Israel war on Iran. The election comes as Iraq is still absorbing the shockwaves of the weeks-long war, which was halted with a ceasefire announced earlier this week.Attention now turns sharply to the choice of prime minister, a far more consequential and politically explosive question. Under Iraq's sectarian power-sharing system, the prime minister must be a Shia Muslim, the parliamentary speaker a Sunni, and the president a Kurd.Amedi now has 15 days to formally task the nominee of the largest parliamentary bloc with forming a cabinet, which must then be assembled within 30 days. Amedi, 58, is a career public servant who spent decades at the heart of Iraqi political life, previously serving as a senior aide to two former presidents and as environment minister between 2022 and 2024.Iraq has gone almost 150 days without a new government since the November elections.

Libya has taken a significant step towards economic stability with the approval of its first unified budget in over a decade. The Central Bank of Libya confirmed that both the eastern-based House of Representatives (HoR) and the Tripoli-based High Council of State have endorsed the budget. This development is seen as a rare moment of cooperation in a country divided by conflict since the 2014 civil war. The unified budget was signed in the capital, Tripoli, where the internationally recognized Government of National Unity is based under Prime Minister Abdul Hamid Dbeibah. Governor Naji Issa described the agreement as a 'clear declaration that Libya is capable of overcoming its differences when a unified vision for its future is forged.' Libya has remained split since the 2014 civil war, which created rival administrations in the east and west. The last time the country operated under a single national budget was in 2013. The deal brings together institutions that have long competed for authority, with representatives from both sides signing the agreement. Despite this breakthrough, political divisions remain entrenched. In the east, forces loyal to Khalifa Haftar maintain control over large parts of the country, including key oil-producing regions. The timing of the agreement is significant, given Libya's growing importance in global energy markets. Demand for its crude has increased amid disruptions linked to the Israel-US war on Iran and the blockade of the Strait of Hormuz. Libya's geographic position offers a critical advantage, as oil shipments from its ports reach European refineries quickly and avoid the risks associated with Gulf routes. Its light, sweet crude also meets the needs of European refiners facing ongoing supply challenges. This development signals a shift towards more formal cooperation, even as Libya's political fragmentation persists.

The United States has experienced a notable surge in inflation, with consumer prices rising by nearly 1 percent in March. This significant increase, one of the highest short-term inflation rates in years, is largely attributed to the disruption of energy markets amid the ongoing conflict with Iran. According to a report by the US Bureau of Labor Statistics, the inflation rate in March was 0.9 percent, up from 0.3 percent in February. This marks the largest increase since May 2022, during the peak of the cost-of-living crisis triggered by the COVID-19 pandemic. The March increase was primarily driven by energy prices, with gasoline prices surging by 21.2 percent and fuel oil prices increasing by more than 30 percent. The energy index saw a 10.9 percent increase in March, the largest monthly rise since September 2005. The escalation in prices followed the US and Israel's launch of an all-out war on Iran on February 28, which resulted in the killing of Iran's Supreme Leader Ali Khamenei. In response, Tehran closed the Strait of Hormuz, causing oil and gas prices worldwide to skyrocket. The price of a barrel of oil reached $120, up from about $70 on February 27. In the US, the price of one gallon of gasoline exceeded $4.1, a significant increase from less than $3 before the conflict began. Although a two-week ceasefire was agreed upon between the US and Iran, marine traffic in the Strait of Hormuz remains at a fraction of its pre-war levels. US President Donald Trump has warned Iran against blocking the strait or charging vessels for safe passage. About 20 percent of the world's oil passes through the Strait of Hormuz. While the ceasefire has brought some relief to the global energy market, with oil prices dropping to less than $100, US consumers are still paying $4.15 on average at the petrol pump. Experts suggest that it will take several months for prices to stabilize. The inflation report comes as US politicians focus on the cost of living and affordability, ahead of the November midterm elections. Trump's Democratic rivals have criticized him for launching the war without congressional approval, highlighting the increased economic costs for Americans.

Ukrainian President Volodymyr Zelenskyy has confirmed that his country's technology played a crucial role in shooting down Iranian drones in the Middle East. This development comes after Zelenskyy announced last month that expert teams had been deployed to the region following the outbreak of the United States-Israeli war on Iran.In a recent statement, Zelenskyy revealed that Ukrainian forces participated in operations using domestically produced interceptor drones against 'Shahed' drones, which are similar to those used by Russia during its ongoing conflict with Ukraine.Key highlights of Zelenskyy's statement include:Ukrainian forces successfully destroyed Iranian 'shaheds' in several countries.The operations were not limited to training missions but involved actual support in building modern air defence systems.Ukrainian experts provided crucial advice on strengthening air defence systems in countries that collaborated with them.Zelenskyy expressed optimism about the future, stating that it is only a matter of time before mass production of interceptors capable of destroying drones with jet engines commences.Kyiv has effectively utilized cheap drone interceptors to neutralize Russian drones before they reach their targets. As part of the agreement, Ukraine is receiving weapons to protect its energy infrastructure and, in some cases, financial arrangements.During his recent visits to Gulf nations, including Qatar, Saudi Arabia, Jordan, and the United Arab Emirates, Zelenskyy signed defence agreements with the UAE, Qatar, and Saudi Arabia.

US Vice President JD Vance has departed for Pakistan to engage in crucial talks with Iran, seeking to bring an end to the ongoing US-Israeli war. Vance expressed optimism about the negotiations, stating that he expects 'positive' results from the discussions.Vance's trip comes at a critical juncture, with the conflict showing no signs of abating. The US and Israel launched a war on Iran on February 28, which has resulted in significant damage to Iran's nuclear sites. President Donald Trump has given Vance clear guidelines for the meeting, emphasizing the need for a peaceful resolution.The talks in Pakistan will involve Iranian Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi. However, it remains unclear if any representative from Iran's Islamic Revolutionary Guard Corps (IRGC) will attend. The format of the negotiations and whether the US and Iranian officials will speak face-to-face or through intermediaries have not been disclosed.Trust issues remain a significant hurdle in the negotiations. Iran's Deputy Foreign Minister for Political Affairs, Majid Takht Ravanchi, expressed wariness about the talks, citing concerns that they could be used as a deception to cover renewed escalation in fighting. Iran seeks an agreement with guarantees that it will not be attacked again.The negotiations in Pakistan are seen as a critical step towards resolving the conflict. Both sides appear to be miles apart, with tremendous amounts of mistrust. However, according to Ali Vaez, the Iran project manager at the International Crisis Group, every option possible has been tried, and both sides have ended up in a lose-lose scenario. Vaez emphasized that it is essential for both sides to be practical and realize that concessions at the negotiating table are necessary to avoid further conflict.

The United States team landed in Islamabad on Friday, gearing up for Saturday’s planned cease‑fire talks with Iran aimed at pausing the ongoing US‑Israel‑Iran conflict.New friction erupted on Friday when senior officials from both sides exchanged conflicting accounts of a 10‑point Iranian proposal that underpinned Tuesday’s temporary pause in hostilities.Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned on X that two critical measures—a cease‑fire in Lebanon and the release of Iran’s blocked assets—remain unfulfilled, insisting they must be addressed before negotiations can proceed.Ghalibaf, who is slated to attend the summit alongside Foreign Minister Abbas Araghchi, echoed the Iranian military’s joint command warning that its “fingers are on the trigger” after what it described as repeated “breaches of trust” by the United States and Israel.Meanwhile, former President Donald Trump escalated rhetoric, telling the New York Post that the U.S. is loading ships with the “best weapons ever made” and will employ them “very effectively” if a deal is not reached. In subsequent Truth Social posts, he dismissed Iran’s leverage over the Strait of Hormuz as a “short‑term extortion” and claimed the Iranians are “alive today only to negotiate.”The Trump administration credits Tuesday’s cease‑fire agreement with averting a larger U.S. escalation, yet it has not disclosed the exact framework agreed upon, noting it differs from Iran’s published 10‑point plan.Analysts point to substantial gaps between the parties on several fronts: Iran’s future control of the Strait of Hormuz, the status of frozen Iranian assets, the trajectory of Iran’s nuclear program, and Israel’s ongoing offensive in Lebanon.U.S. and Israeli officials assert that a Lebanese cease‑fire was never part of the deal, contradicting Iran and Pakistan’s position. Nonetheless, President Trump told an Israeli reporter that he urged Prime Minister Benjamin Netanyahu to make Israeli operations against Hezbollah “more low‑key” ahead of the talks.Israeli strikes continued, killing at least 300 people nationwide on Wednesday—the deadliest day of the offensive—while Al Jazeera’s correspondent reported no slowdown in southern Lebanon’s fighting. Kuwait also reported intercepting seven drones launched from Iran into its airspace within 24 hours.Despite the heightened rhetoric, U.S. Vice President JD Vance expressed optimism, stating he expects a “positive” outcome from the negotiations and that he has received “pretty clear guidelines” from President Trump. Vance emphasized that the United States is ready to extend an “open hand” to Iran if it negotiates in good faith, but warned that any attempt to “play us” would meet a “non‑receptive” negotiating team.Vance’s leadership reflects a non‑interventionist strand of the Trump administration, stepping in as Iran’s trust in special envoy Steve Witkoff and Trump’s son‑in‑law Jared Kushner has eroded. Witkoff and Kushner previously headed two rounds of indirect talks on Iran’s nuclear program, both of which collapsed—first after Israel launched a 12‑day war on Iran in June 2025, and again after the latest war erupted on February 28.

Japan's Prime Minister, Sanae Takaichi, announced on Friday that the country will release additional oil reserves early next month, equivalent to roughly 20 days' worth of oil, to ensure a stable supply of crude oil. This move comes as concern grows over energy shortages caused by the crisis in the Middle East.This will be the second time Japan has dipped into its strategic reserves since the US-Israel war on Iran started in February. Last month, Takaichi approved the release of 50 days' worth of oil, the government's biggest ever release, in an attempt to head off a spike in prices.Japan has enough oil in reserve to last 230 days, but it also imports 95% of its crude oil from the Middle East, most of which is transported through the Strait of Hormuz. The country is trying to secure oil from locations that do not ship via the Strait of Hormuz, amid uncertainty over whether the waterway will fully reopen after a two-week conditional ceasefire announced by Donald Trump this week.By May, Japan should be able to secure more than half of its oil imports via other routes, Takaichi said, although she did not provide details. The industry ministry has said that potential new sources for imports could include Yanbu on Saudi Arabia's Red Sea coast and the Port of Fujairah in the United Arab Emirates.The decision to tap into oil reserves for a second time came as pressure grew on Japan's government to resist US pressure to become militarily involved in the conflict. More than 100 demonstrations were held across the country on Wednesday, with protesters urging Takaichi to abide by the postwar constitution, which forbids Japan from using the threat or use of force as a means of settling international disputes.

The International Monetary Fund has cautioned that the US‑Israel war on Iran could ignite a new wave of global inflation, jeopardising the outlook for world growth even if the current cease‑fire endures. IMF Managing Director Kristalina Georgieva announced on Thursday that the Fund will lower its growth projection for the global economy at next week’s IMF‑World Bank Spring Meetings, stating that the conflict has turned a potential upgrade into a growth downgrade. Earlier this year the IMF had lifted its forecast to 3.3 % growth for the 191‑member economies. That optimism evaporated after the war erupted on 28 February, driving up oil and natural‑gas prices, damaging energy infrastructure such as refineries and tanker terminals, and disrupting fertilizer shipments essential for global agriculture. Georgieva warned that the conflict is eroding business and consumer confidence and urged member nations to “get your house in order” as heightened defence spending adds further strain to the world economy. She also expressed confidence that the IMF will secure U.S. congressional approval this year for a 50 % increase in quota‑based lending resources, unlocking more of its roughly $1 trillion lending capacity. The United States, the Fund’s largest shareholder, would thereby provide crucial financial reassurance amid uncertain future developments. In a newly released report, the IMF estimated that countries directly involved in armed conflict typically see output fall by about 3 % at the outset, accumulating to roughly 7 % losses over five years. However, the study noted that economies like the United States may avoid severe economic damage because the fighting does not physically affect their own territory. Central banks are also on alert. Georgieva emphasized that “the central bank cannot afford to let inflation spiral out of control,” a statement that precedes the U.S. Federal Reserve’s two‑day policy meeting scheduled for 28–29 April, where interest‑rate decisions will be made amid political pressure from President Trump to lower rates. Other monetary authorities, including the Bank of Mexico, warned that the Middle‑East turmoil could push inflation higher in Latin America’s second‑largest economy, underscoring the broader spill‑over risks of the conflict.