America
US oil executives challenge White House over Iranian transit fees in Strait of Hormuz
US oil executives are challenging a White House proposal that would permit Iran to levy transit fees on vessels passing through the strategic Strait of Hormuz as a condition for peace negotiations.
A source familiar with the matter told POLITICO that oil companies have contacted the White House, Secretary of State Marco Rubio, and Vice President JD Vance to contest the arrangement.
“We’ve never had to do this before, and I thought we were winning the war,” said the source, who serves as a consultant to the oil industry. “Everywhere you have access to the administration, you ask, ‘What are you thinking?'”
The source added that the response from administration officials to industry representatives was not a “cold shoulder,” but rather a neutral acknowledgment: “It’s more like, ‘Yeah, okay, we’ll take note.'”
A person who attended the proceedings stated that petroleum sector representatives met with senior administrative staff at the State Department on Wednesday morning to voice their concerns.
Central to their grievances is that acceding to Iran’s demands would add a $2.5 million transit fee to every shipment, alongside higher insurance premiums—costs that would ultimately be passed on to consumers.
Industry representatives argued that granting Iran control over the Strait of Hormuz could set a precedent, potentially encouraging countries like Singapore and Türkiye to demand transit fees for key trade routes in the Strait of Malacca and the Turkish Straits. Furthermore, paying such fees could place companies in legal jeopardy for violating sanctions imposed on Iranian officials.
The person, speaking on condition of anonymity because they were not authorized to talk to the media, added that companies have also conveyed their concerns directly to Donald Trump, albeit in a more delicate manner.
“The President is extremely sensitive to the legacy and judgment regarding the success of this war, so pushing the President right now is seen as a risky venture,” the person said. “But the White House is listening to the voices from the sector, even though the conversations are polite.”
A White House spokesperson did not directly answer questions regarding whether the administration has received input from sector representatives or how it intends to address those concerns. Instead, the spokesperson referred to a Wednesday afternoon press briefing where White House Press Secretary Karoline Leavitt stated the administration is working with a “more reasonable” set of Iranian proposals.
Leavitt told reporters that Iran had presented “a more reasonable, completely different, and summarized plan to the President and his team,” though she did not specify what had changed in the proposal.
“The President’s red lines—namely, the end of uranium enrichment in Iran—have not changed,” Leavitt said. “And the idea that President Trump would accept Iran’s wish list as a deal is completely ridiculous.”
Iran is demanding that transit fees for tankers crossing the strait be paid in yuan or cryptocurrency.
Trump announced on Tuesday that the US would use Iran’s 10-point plan, which includes a $2 million transit fee per ship, as the foundation for a permanent ceasefire.
“I expect a serious reaction, not just from the oil industry,” said Jason Bennett, an attorney specializing in energy and international law at Baker Botts. “[Hormuz] is an open international waterway. To date, Iran’s legal right to control the Strait of Hormuz has never been recognized. I don’t think anyone will accept this.”
Foreign diplomats have also been expressing their concerns to the White House to the extent possible, despite complaining that the administration has shown little interest in their views thus far.
“Are Russian transit fees in the Arctic next? Chinese transit fees in the South China Sea?” said one Asian diplomat stationed in Washington. “My guess is there will be some kind of protest from the rest of the world, especially those who use the Strait.”
Other diplomats expressed concern that, if left to its own devices, Iran might charge some vessels while allowing others to pass for free as a “political favor.”
A second diplomat in Washington told POLITICO that “seven or more ships” flying the Malaysian flag were apparently able to pass through the Strait “seemingly for free.”
Most shipping companies are unwilling to pay the transit fees, arguing that such a system is unsustainable in the long term.
“The $2 million per ship transit fee included in Iran’s 10-point plan creates a new opportunity for blackmail,” said Arthur Leichthammer, a researcher at the Berlin-based Jacques Delors Center. “This would be an extremely costly concession, both politically and economically.”
America
US wealthy demolish multimillion-dollar mansions for land
Wealthy buyers in the US are tearing down multimillion-dollar homes shortly after purchasing them for hundreds of millions of dollars.
According to a report by The Wall Street Journal, the trend is driven by a shortage of land in prestigious locations, particularly along coastlines.
For ultra-wealthy buyers, the prime factor has become the land’s location rather than the structure standing on it. After the acquired properties are flattened, newer, more modern homes are built on the cleared lots.
Drawing attention to the shift in the luxury real estate market, the report noted:
“The home itself, formerly the primary driver of an expensive real estate purchase, is now almost beside the point. Buyers are competing first and foremost for well-located land, situated on the ocean or a mountaintop.”
The newspaper cited moves by US billionaire William Lauder as an example. Lauder purchased the oceanfront estate of radio host Rush Limbaugh, who died in March 2023, for $155 million and had it completely demolished in July.
Lauder had previously torn down two homes situated on roughly 1.2 hectares of land along the Palm Beach coast. Having initially planned to construct his own residence on the parcel, Lauder subsequently sold the cleared plot for approximately $200 million.
Jonathan Miller, a real estate appraiser, stated that such transactions are becoming increasingly common as land prices rise.
Amid this momentum, estate agents have also begun marketing luxury homes directly as teardown lots.
Listings use artificial intelligence-generated imagery to showcase how the land would look without the structures on it.
Marketers avoid using the word “demolition” directly, resorting instead to terms such as “adaptive reuse”.
Teardown listings rise across luxury housing market
The trend is not confined to the coast and is spreading to other regions across the US.
Data from property brokerage Redfin reveals that references to demolishing buildings are becoming more frequent in sales listings.
The share of such listings exceeds 15% in the Bunker Hill Village area of Houston, while standing at 6.67% in Pimmit Hills, Virginia.
Dina Goldenteyer, a real estate agent working in Miami, remarked that serial demolitions have become more frequent because buyers no longer appreciate homes older than a decade.
Former retail executives Jamie Dooley and Christine Scott spent $3.7 million in 2020 to demolish a seaside home near Destin, Florida.
Although the couple spent five years building a modern home on the cleared site, they listed the resulting new structure with a demolition condition, citing the fact that no one wanted to buy the property as it stood.
William Paddock, an employee at the environmental consultancy WAP Sustainability, pointed to the environmental damage caused by this construction cycle.
Paddock emphasized that tearing down a home of roughly 1,000 square metres and replacing it with a new building of approximately 2,700 square metres generates a carbon footprint equivalent to the annual emissions of an average 250 American households.
America
US inflation reaches 3.7% as midterm election campaign intensifies
An uptick in September inflation as the US midterm elections approach has pushed the cost-of-living debate back to the centre of the agenda for Democrats seeking to regain control of Congress from Republicans.
Annual inflation stood at 3.7% in September, according to the Consumer Price Index published by the Bureau of Labour Statistics, with energy, petrol, and electricity costs rising on a monthly basis.
Food prices remained flat from August to September, recording a 2.5% increase compared with the same period last year.
Democrats are anchoring their election campaigns to pledges of easing the cost of living, blaming the price increases on President Donald Trump’s tariffs and the war with Iran.
Trump and Republicans, pointing to the numerous left-wing candidates who won primary elections this year, contend that the opposition has become captive to “communists” within the party.
When annual inflation stood at 2.4% in February, the US and Israel launched the Iran war on the final day of that month, and prices continued to climb throughout the conflict.
The recent acceleration has not entirely reversed the retreat from the 40-year peak of 9.1% recorded in June 2022; however, the rate has remained above the Federal Reserve’s 2% target for over five years.
Fed policymakers raised the benchmark interest rate by a quarter of a percentage point last month, citing the battle against stubborn inflation. Officials will convene again next week to consider whether to raise rates or hold them within the 3.75% to 4% target range.
Energy and fuel record sharpest increase since first month of war
In September, energy prices posted their largest monthly jump since March, the first full month of the war with Iran, climbing 20.4% year-on-year. Energy costs had risen 2.1% from July to August, after falling 1.5% from June to July and 5.7% from May to June.
Recent escalations in Iranian attacks on oil tankers in the Strait of Hormuz, alongside more frequent strikes by Ukrainian forces against Russian refineries, have strained global crude oil and refined product markets, driving up US petrol and diesel prices.
Petrol prices also recorded their sharpest monthly increase since the first month of the war, climbing 9.1% from August to September, bringing the annual increase to 35.3%.
American Automobile Association (AAA) data shows the average price of regular petrol across the US stands at $4.26 per gallon; while below the level of roughly $4.48 recorded a month ago, it remains more than $1.20 higher than a year earlier. Average gallon prices exceed $6 in California and $5 in both Washington state and Nevada.
Electricity prices rose 0.2% from August to September, offsetting the 0.2% decline between July and August, and were up 4.4% year-on-year.
Heavy power demand from new data centres is feeding through into local household electricity bills. Trump argued that companies must cover the cost of the electricity required by their data centres themselves.
In a post on Truth Social, Trump claimed that he was requiring large data centres to generate their own power and feed the surplus back into the local grid, suggesting this could bring about “a major drop” in electricity prices.
Used vehicle market posts monthly rise as food costs stabilise
The cost of food at home fell 0.1% month-on-month in September, while dining out increased 0.2%.
Egg prices dropped to $2.27 a dozen, falling roughly 35% compared with September 2025 and remaining well below the 20-year peak of $6.23 recorded in March 2025.
Ground beef prices rose roughly 2.4% compared with September 2025, but at $6.48 a pound, they remained below the 20-year high of $6.98 reached in June.
Chicken held steady at its year-earlier level of $2.06 per pound last month, having fluctuated between $2.01 and $2.09 since November 2024.
Used car and truck prices fell 1.5% compared with September 2025, but rose 0.7% month-on-month in September following 0.4% increases in both July and August.
Heather Long, chief economist at Navy Federal Credit Union, noted that the sector faces severe pressure stemming from a combination of expensive replacement parts and a shortage of skilled labour.
Speaking to The Hill, Long emphasised that every cost pressure across the market is being felt directly at local auto repair shops.
America
Anthropic posts $80.7bn loss ahead of IPO as computing costs soar
Anthropic, developer of the artificial intelligence model Claude, reported a net loss of $80.7 billion for the first six months of 2026 ending 30 June.
According to a report by The Wall Street Journal citing the company’s draft initial public offering prospectus, this recorded loss nearly doubled the $42 billion loss incurred across the entirety of 2025.
The vast majority of that enormous figure, accounting for $72 billion, stemmed from accounting-driven book-value write-downs.
In contrast, the company saw a sharp surge in revenue, with turnover in the first half of the year climbing to $16.3 billion from $1.1 billion in the same period of the prior year.
During this period, Anthropic spent approximately $9 billion on computing power and infrastructure needs, surpassing in just six months the $7.3 billion spent across the whole of 2025.
The company has commitments to pay roughly $450 billion over the next seven to 10 years under cloud service contracts.
Under these obligations, contracts are planned for $111 billion with Google Cloud, $110 billion with Amazon Web Services, and $31 billion with Microsoft.
Anthropic will also spend up to $86 billion by 2033 and 2034, respectively, to lease Nvidia chips through smaller AI-focused cloud providers Nscale and Lambda.
The company could spend an additional $750 billion in the coming years to expand its computing capacity.
Roughly a third of the draft IPO prospectus was dedicated directly to risk factors.
The document highlighted the possibility that models could cause tangible real-world harm, noting that artificial intelligence could exhibit a “self-preservation” tendency and produce responses resembling “blackmail”.
Anthropic warned that the scale of damage caused by an AI-driven “catastrophic event” could render insuring against such risks impossible.
According to market expectations, Anthropic’s IPO could rank among the largest transactions in history, potentially surpassing SpaceX’s record.
Following the market debut, the company’s market valuation is projected to reach up to $2 trillion.
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