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OpenAI Admits Model Escaped Containment And Hacked Hugging Face To Cheat On A Test

Tyler Durden — Wed, 22 Jul 2026 12:05:00 +0000

OpenAI Admits Model Escaped Containment And Hacked Hugging Face To Cheat On A Test

Authored by Felix Ng via CoinTelegraph.com,

OpenAI disclosed Tuesday that a combination of its AI models, including GPT-5.6 Sol and a more capable unreleased model, escaped its testing environment and hacked AI startup Hugging Face last week to cheat on a test meant to measure their capabilities.

In a blog post, OpenAI said the evaluation was designed to operate in a highly isolated environment with restricted network access. The models, however, found a way to gain internet access through a zero-day vulnerability in an internally-hosted third party software, OpenAI said.

Earlier this week, we detected and responded to an intrusion into part of our production infrastructure. This one was different from anything we had handled before in one important way: it was driven, end to end, by an autonomous AI agent system – and we detected and dissected it largely with AI of our own.

Hugging Face tried to respond but they were initially held back by the fact that the most advanced models at their disposal treated defense as attack and refused to work with Hugging Face. HF thus had to turn to open models–specifically GLM 5.2, a Chinese open-weight model run on their own infrastructure. Note the irony: HF had to use a Chinese model to defend themselves because the American models refused to help. The irony gets deeper.

This was not a production model spontaneously turning hostile. It was a capable model with guardrails off and specifically told to win a hacking test - doing whatever it took to win.

The models were being run through an internal benchmark called ExploitGym, a test of long, multi-step hacking tasks, with their cyber safety refusals deliberately lowered for the evaluation.

“After gaining Internet access, the models inferred that Hugging Face potentially hosted models, datasets and solutions for ExploitGym,” OpenAi continued.

“Knowing this, the model searched for and successfully found ways to gain access to secret information that it could use to cheat the evaluation.”

Hugging Face is a platform for hosting AI models and datasets.

[ZH: we asked Grok to simplify what just happened: It’s kind of like a kid who’s supposed to stay in the classroom taking a test… but instead sneaks out the window, runs to the teacher’s office, and copies the answer sheet. ]

On Friday, it disclosed that its internal datasets and service credentials were compromised in a hack, which it attributed to an autonomous AI agent system.

Hugging Face said it has fixed the vulnerability that was used during the cyberattack.

Meanwhile, OpenAI on Tuesday said the models that escaped the testing environment were all tuned with “reduced cyber refusals,” meaning fewer cybersecurity guardrails.

“We consider this incident to be an unprecedented cyber incident, involving state-of-the-art cyber capabilities, and are responding accordingly.”

OpenAI warns of risks from “long-horizon” AI models

On Monday, OpenAI said it paused internal deployment of a “long-horizon” AI model after finding it was repeatedly trying to work around constraints.

It warned that AI that is trained for long-running tasks has a higher chance of taking “unwanted actions.”

“Models that can work autonomously for long periods can take on difficult, open-ended problems. But the same persistence that makes them useful also gives them more opportunities to take unwanted actions—and to do so in ways that evaluations intended for shorter-horizon models may miss.”

As AI models grow more capable, questions are emerging over whether their development and access should be more tightly controlled, especially when systems designed for controlled testing are able to find ways to bypass safeguards.

Tyler Durden Wed, 07/22/2026 - 08:05

Futures Slide Ahead Of Google Earnings As Brent Surges Above $95

Tyler Durden — Wed, 22 Jul 2026 11:45:00 +0000

Futures Slide Ahead Of Google Earnings As Brent Surges Above $95

US futures are lower following a chipmaker-powered jump in Tuesday’s session, with Nasdaq 100 futures falling by 0.8%, which appears to be more of a retracement to yesterday’s strength than a move tied to oil or de-risking into today’s Tech earnings. Alphabet earnings are coming after the close. As of 7:00am ET, S&P futures are down 0.3% and Nasdaq futures slide 0.6%. In premarket trading, Mag 7 stocks are mixed ahead of key earnings from Alphabet, Tesla and IBM due later in the afternoon. Nvidia is underperforming the group as chipmakers declin; GOOG leads. Defensives and Energy are leading; within Cyclicals Financials are outperforming. Today’s macro focus is wholly on GOOG and the AI trade. Crude is leading the commodity complex with WTI at $88/bbl and Brent above $95/bbl for the fist time in 6 weeks, so far Equities have not been derailed as investors continue to think that Trump pivots back to a deal. In metals, Precious is leading Base; Ags are mixed but net higher. Dollar is indicated a touch lower as bond yields are flat. Looking at the day ahead, it’s a fairly quiet one. But we’ll get the UK CPI print for June, and earnings releases after the US close include Alphabet and Tesla.

In premarket trading, Mag 7 stocks are mixed ahead of key earnings from Alphabet, Tesla and IBM due later in the afternoon. Nvidia is underperforming the group as chipmakers decline (Alphabet +0.8%, Microsoft +0.4%, Amazon +0.2%, Meta little changed, Apple -0.3%, Tesla -0.3%, Nvidia -0.9%).

Oklo Inc. (OKLO) gains 3.8% and X-Energy Inc. (XE) rises 2.9% as the advanced nuclear reactor suppliers are joining technology giants in a Trump administration-led program to speed the development of new power plants for artificial intelligence data centers, according to a document seen by Bloomberg News.
Otis Worldwide (OTIS) falls 2.3% after the company cut its adjusted earnings per share guidance for the full year; the guidance missed the average analyst estimate.
Pegasystems (PEGA) is down 15% after the software company reported adjusted earnings per share for the second quarter that missed the average analyst estimate. The firm said its annual contract value (ACV) growth rate significantly slowed during the first half of the year as clients delayed purchasing decisions, and this trend may continue to adversely affect the ACV growth rate for the rest of the year.
Super Micro (SMCI) jumps 16% after the server maker issued a business update that included raising its fourth-quarter gross margins outlook and saying the backlog was at a record.
Vornado Realty (VNO) slips 1.1% as Morgan Stanley downgrades to underweight from equal-weight, saying the stock trades at an “expensive valuation.”

In other corporate news Celldex Therapeutics fell in extended trading after the biotech said barzolvolimab, its experimental antibody, failed to meet endpoints in a Phase 2 study for patients with prurigo nodularis, a rare chronic skin condition. OpenAI said its advanced AI models inadvertently hacked Hugging Face in an “unprecedented” incident.

A two-day rebound in the Nasdaq 100 came to a halt with some early weakness in futures trading following Tuesday’s momentum-led rally, with traders unlikely to deploy fresh capital before getting a steer from tonight’s bellwether tech earnings. South Korea’s Kospi Index and other tech-heavy gauges in Asia trimmed strong early-session gains. The technology sector lagged sharply in Europe’s Stoxx 600.

Higher oil prices also kept a lid on sentiment after both the US and Iran signaled they were in no mood to restart talks following an escalation in their conflict. Brent crude rose nearly 5% to surpass $95 a barrel for the first time in six weeks.

After Alphabet said last quarter that it plans to more than double capital spending from 2025 to as much as $190 billion this year, investors will be looking for evidence that those investments are generating returns. Yet the companies building global AI infrastructure need that spending growth to continue to justify their stellar valuations. The earnings report will land just as market-leading chipmakers are gripped by intense volatility amid fears that the pace of AI outlays cannot be sustained.

“Alphabet isn’t just reporting earnings, it’s reporting on the health of the entire AI investment cycle,” said Amanda Lyons at Energy Group Capital. “If management sounds any less committed to AI investment, the market won’t just punish Google, it will question the durability of the AI buildout more broadly.” Even so, capex alone isn’t enough as “investors increasingly want proof that the spending is generating returns,” she said.

Dispersion beneath the index surface remains high, encapsulated in chip volatility outpacing the rest of the market. Options market signals suggest hyperscaler earnings matter more than news out of the Fed, with Mag 7 reports dominating near-term event risk.

With second-quarter earnings driving markets in an otherwise light week for economic data, Alphabet kicks off megacap tech reporting tonight, with investors focused on cloud growth and the company’s capital spending ambitions. Capex is expected to hit $262 billion in 2027 — nearly three times what it was in 2025, according to the average of estimates compiled by Bloomberg. Google Cloud’s sales are expected to jump nearly 65% from a year ago to $22.4 billion. More coverage can be found in today’s Tech Watch column.

On the other side of AI momentum, IBM will provide more color to the spending delays it flagged in a surprise warning earlier this month. Many on Wall Street expect a cut to outlook, while Evercore ISI analyst Amit Daryanani wonders how much of demand lost in the June quarter is recovered in the second half rather than being “destroyed.” Smaller software company Pegasystems similarly called out clients’ delayed purchasing decisions amid “unprecedented changes in the AI market” on Tuesday evening. Early signs this reporting season are encouraging with a measure of profit guidance momentum climbing to a record, according to Bloomberg Intelligence data going back to 2011.

Elsewhere, generic drug manufacturers will have two years to move production to the US or face a 100% import duty from August 2028, Trump said, threatening the supply of low-cost medicines that millions of Americans rely on. In finance, JPMorgan and Goldman are among global banks set to generate more than $100 million in fees from SoftBank’s $40 billion bridge loan for its investment in OpenAI. Private equity firms in some of the world’s hottest markets are facing headwinds as they try to place experienced managers in the companies they buy, hampering the pace of investments at a time when the amount of dry powder that fund managers have to deploy is climbing again.

IBM and Texas Instruments are also due to report after the close. Super Micro Computer Inc. shares jumped in premarket trading on strong demand for its servers. Pegasystems plummeted after the software firm missed earnings estimates.

Europe's Stoxx 600 is up by 0.7%, with energy stocks the biggest gainers along with utilities and miners.

Asian stocks gave up almost all of their early Wednesday gains as a rally in regional chip shares lost steam ahead of keenly awaited earnings from global tech heavyweights Alphabet and Tesla. The MSCI Asia Pacific Index was up just 0.1% after rising as much as 1.7%. Tencent Holdings was the biggest drag on the benchmark as the stock fell the most in over a year and dragged Chinese tech peers lower amid investor concerns over its mobile gaming business. The Hang Seng Tech Index lost 3%. South Korea’s Kospi — which has become a closely watched barometer of global sentiment toward AI-linked equities — ended up 0.7% following an intraday surge of over 6%.

A subgauge of Asian chip shares was up 0.3% versus a jump of over 3.5% earlier in the session. Geopolitical tensions likely added to the caution, with oil extending gains as the US and Iran played down the prospect of talks and disruptions to global supplies continued to mount. Vietnamese stocks posted Asia’s steepest decline as margin calls forced leveraged investors to liquidate holdings after the benchmark index extended its losses to more than 13% from this year’s peak. Key gauges in other markets sensitive to higher oil prices — such as the Philippines, Thailand and India — also declined.

“Rising oil prices and jitters ahead of Alphabet earnings, the first big tech to report, may be impacting sentiment,” said Marvin Chen, analyst at Bloomberg Intelligence. “Anticipation for upcoming earnings from US tech giants beginning this week may dictate the outlook for whether the recovery in hardware can carry on.”

“The oil-price spike, on the back of continuing reciprocal strikes, is a problem for most Asian net importers,” said Hasnain Malik, head of EM equity and geopolitics strategy at Tellimer.

In Fx, the Bloomberg Dollar Spot Index was little changed in London, after edging up in Asian trade. USD/JPY slipped as much as 0.3% to 162.69 following a Bloomberg report that Bank of Japan officials are open to raising the pace of interest rate rises. Still, the yen trades near a 40-year low of 163.24 hit on Tuesday, even as Japanese authorities reiterated threats to intervene in the currency market.

In rates, the 10-year Treasury yield was flat at 4.63%. European bonds have recovered too and gilts are outperforming, brushing off the rise in oil prices and following a slowdown in UK headline inflation.

In commodities, brent oil is rallying and rose past $95/barrel with few visible signs that relations between the US and Iran are cooling off. The US widened the scope of its attacks on Iran overnight and both sides have played down the prospect of negotiations. The rise for crude initially weighed on stock and bond markets, but that has reversed. Gold is stronger and above $4,100/oz.

Looking at the day ahead, it’s a fairly quiet one. But we’ll get the UK CPI print for June, and earnings releases after the US close include Alphabet and Tesla.

Market Snapshot

Top Overnight news

Russia is no longer willing to return some occupied territories to Ukraine under any future peace deal, people familiar said. The Kremlin views recent confrontational US messaging as a sign Vladimir Putin’s talks with Trump failed to take root.
BoJ officials are open to raising interest rates at a faster pace than the consensus among economists, as the yen’s continued weakness adds to upside inflation risks. The currency rebounded from a 40-year low.
British inflation cooled by more than expected last month as a brief de-escalation in the Iran ‌war reduced fuel prices, but the slowdown is likely to offer only temporary relief to new Prime Minister Andy Burnham as he seeks to ease living costs. Consumer prices rose by 2.6% in annual terms in June — the weakest increase since March 2025 and down from 2.8% in May.
The US widened the scope of its airstrikes on Iran overnight, as President Donald Trump and officials in Tehran signaled a renewal of peace talks is unlikely in the near-term.
U.S. Secretary of State Marco Rubio on Wednesday accused Iran of not honoring the Strait of Hormuz deal, while reiterating that Washington was “committed to diplomacy” in the Middle East. He said a key sticking point between Teheran and Washington is that Iran “demands the right” to control traffic in the Strait of Hormuz.
Tehran-backed Houthi militants in Yemen are ready to attack shipping from positions near the Bab el-Mandeb strait at the southern end of the Red Sea, according to a global monitoring body for naval security.
President Trump has formally approved a landmark agreement with Saudi Arabia that will provide the country with a civilian nuclear program and potentially open the door to uranium enrichment in the kingdom’s territory, according to administration officials.
Oil options open interest hit a record as renewed US-Iran hostilities fueled demand for protection against sharp price swings. We see risks to our price forecast as tilted to the upside on net, especially in the near term.
The House passed stopgap funding to keep the government open past the midterm elections. The measure now faces demands for changes in the Senate.
The US House will vote today on a plan to ban members from trading stocks, according to Fox.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks traded mostly in the green following on from the tech-led rebound on Wall Street, which was facilitated by several positive sector-specific headlines, and heading into some of the Mag-7 earnings. ASX 200 mildly gained amid strength in the commodity-related sectors, but with the upside capped by weakness in defensives, as well as domestic consumer and tech stocks. Nikkei 225 initially rallied at the open amid AI-related optimism and after PM Takaichi's Cabinet approved its first comprehensive economic and fiscal policy guidelines on Tuesday, targeting JPY 370tln in combined public and private investment by 2040, while sentiment was also helped by the stronger-than-expected exports and imports data from Japan. Hang Seng and Shanghai Comp were ultimately mixed, with underperformance in the Hong Kong benchmark in a resumption of the rotation out of hyperscalers.

Top Asian News

Japanese Finance Minister Katayama said she won't comment on specific FX levels, but reiterated will take appropriate action on FX as needed and that they can take bold steps anytime as needed.
China is said to have told all market participants not to re-discount bills at rates below 0.5%, sources said.

European equity futures are mostly in the green, following on from a positive APAC session; upside which comes despite the ongoing US-Iran conflict and elevated energy prices. For the UK, a cooler/in-line inflation report lessens the need for a BoE hike, though the ongoing geopolitical environment will keep policymakers wary on the path ahead. As it stands, money markets assign a 12% chance of a hike next week, and fully priced in by November. European sectors hold a positive bias; Energy and Insurance tops the pile, whilst Tech lags, joined by Travel & Leisure. European pharma names have been in focus, after US President Trump stated that generic drugs will not be subject to US tariffs until 2028 but will then face 100% levies. Given European pharma names typically produce exclusive/high-patented drugs, for reference, the Indian pharma sector fell as much as 2% in APAC trade. However, the likes of Sandoz (-4%) and Bayer (-2%) have extended lower this morning.

Top European News

The US House will vote today on a plan to ban members from trading stocks, according to Fox.
The US House voted 220-205 to pass a stopgap measure to fund federal agencies through November elections.

G10s are mixed against the USD, with slight outperformance in the EUR and JPY while antipodeans lag. Geopolitics remains constructive for the Greenback on paper with oil prices firmer once again, but the environment fails to translate into Buck strength. USD specific catalysts are light with an extremely light data calendar, so focus will be on GOOGL earnings due after the NY closing bell, potentially a report which could give the Buck a bias.
JPY moved sharply lower, USD/JPY falling 45 pips from recent highs, before paring some of the move. A Bloomberg source report said the BoJ is said to be open to a hike faster than every 6 months, adding the recent JPY weakness is seen as an upside risk to inflation. Despite the move lower in USD/JPY, markets seem inclined to buy dips in the pair, looking to push it towards the 165.00 region, where option structures last week were believed would be the next pain point for the MoF. USD/JPY is a little weaker and just below 163.00.
GBP/USD has been choppy throughout the session and ultimately lacks direction within a 1.3370-1.3390 range, despite a broadly positive inflation report. Headline Y/Y cooled at a faster rate than expected, and 0.5ppts below BoE’s April MPR forecast; Services cooled in line with BoE forecast due to volatile airfares, while core metric stood at 2.6%, in line with BoE forecast. Within the series, one element likely to be welcomed by policymakers is the food component, slowing to its lowest since August 2024, at 1.1ppts below the BoE forecast. Overall, a report which supports the narrative of a BoE unchanged for the remainder of the year.

Fixed Income

Global fixed income benchmarks initially came under pressure given the rise in energy prices (Brent +3.2%); however, fixed income has reversed off its earlier lows, despite a clear driver.
Gilts (-8 ticks) trade at the top end of a 86.33-86.69 range, reversing the earlier losses. The broadly positive inflation figure initially failed to support UK gilts. To recap, headline inflation ticked lower to 2.6% Y/Y (exp. 2.7%, prev. 2.8%), while core inflation held at 2.6% Y/Y (exp. 2.5%). Services inflation also fell to 3.6% Y/Y from 3.8%, while food prices fell for a second consecutive month. ING sees the BoE holding rates throughout 2026, with the trend of lower core service inflation and low private-sector wage growth.
JGBs (-18 ticks) traded rangebound throughout the Asia-Pac session but have come under recent pressure following a Bloomberg scoop. The report stated that the BoJ is open to a hike faster than every 6 months, while adding that the recent JPY weakness is seen as an upside risk to inflation. The Bank is close to a stage of anchoring, not spurring inflation, the report added. Following this, markets are fully pricing a rate hike in December. Elsewhere, the 40-year JGB auction drew its strongest demand since March 2025 (b/c 2.82x vs prev. 2.70x).
USTs (-1+ ticks) hold steady, just shy of last week's trough of 108-17, seemingly unaffected by the higher energy prices.
Germany sells EUR 1.708bln vs exp. EUR 2bln 2.60% 2041 and 3.40% 2047 Bund.
Australia sells AUD 900mln 2.75% 2035 AGBs: b/c 4.37x (prev. 3.65x), average yield 4.9457% (prev. 4.4140%).

Commodities

Crude futures are firmer following several escalatory updates overnight and in the European morning. To recap, US CENTCOM confirmed the US military completed its 11th night of airstrikes against Iran. Iran retaliated by launching drone attacks targeting a US military base at Camp Doha in Kuwait, as well as locations in Bahrain and Jordan. On the diplomatic front, an Iranian Interior Ministry spokesperson said there is currently no ongoing negotiation, and it may only involve the exchange of messages. Further, Iranian lawmaker Qashqavi said US President Trump's claim about Iran's request for negotiations is not true.
On Hormuz, the Iranian Army Commander-in-Chief says Iran controls the Hormuz Strait and will fire upon American forces.
Further, the Houthis' maritime blockade against Saudi Arabia saw several tankers moving to avoid the Bab el-Mandeb Strait. If Bab el-Mandeb, voyages to Asia may only occur via the Suez Canal, which adds notable time and expenses. On that note, CMA CGM (the third-largest container shipping company globally) will impose an emergency fuel surcharge effective August 1 following the renewed escalation of hostilities in the Strait of Hormuz.
WTI and Brent are higher by over 4% intraday at the time of writing, with Brent towards the top end of a USD 91.31-95.24/bbl range, while WTI resides towards the upper end of its 84.44-88.25/bbl band. The Middle East situation and soaring insurance costs have also prompted Dutch TTF to surge, with the front-month closer to EUR 62/MWh vs yesterday’s sub-EUR 60/MWh prints.
Precious metals are firmer intraday but off worst levels, feeling opposing forces from higher oil prices and some technical factors after the yellow metal topped USD 4,100/oz. Spot gold trades between 4,076-4,141/oz at the time of writing. Spot silver is more contained between USD 58.73-60.06/oz. Base metals are mostly firmer to varying degrees, but copper gives back some recent gains amid the rise in oil prices and its subsequent effect on inflation and growth.
3M LME copper trades around the middle of a USD 13,769.00- 13,919.00/t parameter.
US Private Inventory Data (bbls): Crude +2.6mln (exp. -0.5mln), Distillates +1.8mln (exp. +1.0mln), Gasoline -1.4mln (exp. -1.8mln), Cushing -0.7mln.
US President Trump formally approved a landmark nuclear deal with Saudi Arabia that will provide the country with a civilian nuclear program and potentially open the door to uranium enrichment in the kingdom's territory, according to US officials cited by WSJ.
Goldman Sachs analysts raised TTF forecasts for Q3 and Q4 to EUR 60/MWh (prev. saw 41/MWh) and EUR 53/MWh (prev. 40/MWh), following an assumed delay to Persian Gulf LNG export normalisation to October 2026.

Geopolitics: Middle East

US Secretary of State Rubio said China is displeased with Iran's actions in the Strait of Hormuz and that Iran is in "a lot" of trouble. Rubio added that China has been cooperative in Iran in some cases. Additionally, he said the Strait of Hormuz remains a key source of energy and that Iran can never possess nuclear weapons.
US Secretary of State Rubio said the US is committed to diplomacy in the Middle East and Iran, but added Iran is not serious about talks, while the US remains open and willing to engage in negotiations.
US Secretary of War Hegseth said we have multiple options for striking Iran's nuclear facilities in Jabal al-Fas.
US CENTCOM said forces conducted the 11th consecutive night of strikes against Iran in which they targeted Iranian military operations centres, maritime capabilities, aircraft hangars, drone storage facilities, and military logistics infrastructure to further degrade Iran's ability to threaten commercial shipping in the Strait of Hormuz. CENTCOM also stated that the Strait of Hormuz remains open to commercial traffic, with US forces facilitating the movement of approximately 900 vessels and 450mln barrels of crude since early May.
US strikes were reported on Behbahan, Mahshahr, Bandar Abbas, Chabahar, Bushehr, west of Tabriz and Urmia, while several explosions were heard in Iran's Tabriz. Furthermore, Arab media reported that missiles were fired from Kuwaiti territory to Iran and drone and missile attacks were reported on US bases in Kuwait and Bahrain. More recently, there were explosions heard in Sirik.
IRGC said it targeted a tactical radar complex near Ali Al-Salem base and another radar system in Bubiyan Island in Kuwait, while Iran's army also said it shot down a one-way attack drone in the country's northwest, according to Tasnim. Additionally, Iran’s military said it struck US targets at Jordan’s Azraq base and Bahrain’s Sheikh Isa Air Base, according to Iranian state media.
Iranian Interior Ministry spokesperson said there is currently no ongoing negotiation and that it may only involve the exchange of messages, Mehr News reported.
Iranian Army Commander-in-Chief said Iran controls the Hormuz Strait and will fire upon American forces, Press TV reported.
Iran's top joint military command warned that all interests of the US and its allies in the region will be targeted if the US attacks Iran's nuclear sites.
Iranian lawmaker Qashqavi said US President Trump's claim about Iran's request for negotiations is not true.
Pakistan is said to have sought USD 10bln in US funding after mediating talks with Iran, sources said.
Explosions were reported in Israel's Eilat during Iran's missile strike on Jordan's Aqaba, N12 reported.
Only 3 cargo ships crossed the Strait of Hormuz, according to reports citing Kpler data.

Geopolitics: Ukraine

Ukrainian President Zelensky said Ukraine has struck logistics centres involved in the supply of drone components in Russia's Krasnodar and Stavropol regions.
Russia's Defence Ministry said its forces attacked a Ukrainian port and two vessels were struck at sea, according to TASS.

Geopolitics: Other

US Secretary of State Rubio said the US disagrees with China's activities on Taiwan.

Event calendar

It’s a fairly quiet one. But we’ll get the UK CPI print for June, and earnings releases after the US close include Alphabet and Tesla.

DB's Jim Reid concludes the overnight wrap

I forgot to mention this on Monday, but over the weekend—after 42 years of playing golf and perhaps 100–150k on-course shots—I finally got a hole-in-one. However, it was on a nine-hole, relatively short par-3 course, so I’ve been debating whether it really counts. It didn’t quite feel like enough to justify buying the entire clubhouse a drink (especially as it was busy), so I quietly snuck off, but my kids watched it go in and were impressed—which, as they get older, is an increasingly hard feat to pull off.

I'm not sure which is harder, a hole-in-one or successful negotiations in the current conflict. Indeed, with no breakthroughs regarding Iran, the market focus returned to inflation over the last 24 hours, as Brent crude closed above $90/bbl for the first time in over a month, reviving fears about a wider stagflationary shock. And this morning we’ve seen a further rise above $92/bbl, so there’s little sign of oil prices easing as the US confirmed overnight they’d completed an 11th consecutive evening of strikes against Iran. To be fair, equities performed very well considering that, thanks to a chip stock rebound, but markets still priced in a more hawkish path for central banks, with bond yields moving higher around the world as a result. Indeed, several hit multi-year highs yesterday, with the US 30 real yield (+1.0bps) reaching a post-2008 high of 2.93%, whilst France’s 10yr yield (+1.8bps) closed at a post-2009 high of 3.96%. Standby for Alphabet and Tesla's earnings after the US close. The former's capex plans, and the market reaction to them, will be fascinating.
The latest oil moves come as the strikes between the US and Iran have showed no sign of easing, and there are still no concrete signs of a peace deal either. Admittedly, it was reported by AP that Iran’s interior minister had met with mediators in Pakistan, as attempts are being made to try and revive the interim deal reached between the US and Iran last month. And it was later confirmed by the office of Pakistan’s PM that he’d met with Iran’s interior minister. However, Trump later played down any chance of a meeting saying "They want to desperately meet and until they're ready to meet in a meaningful way we have no interest". So with no agreements in the pipeline, investors moved to price in a more sustained supply shock. For instance, the front-end Brent future was up +2.01% to $91.01/bbl by yesterday’s close, whilst the 6-month Brent future (+0.32%) also hit a 1-month high of $81.26/bbl. And that’s continued this morning, with Brent crude up another +1.24% to $92.14/bbl.

Whilst oil prices were moving higher, those inflation fears were exacerbated by the ongoing climb in natural gas prices. Indeed, the European front-end natural gas future (+1.57%) was up for a 7th consecutive day to €59.66/MWh, its highest level in 4 months. Moreover, several other commodities saw some big moves yesterday, with gold (+1.72%) up to $4,077/oz, and silver (+4.20%) up to $58.79/oz, whilst copper (+3.37%) also moved higher. So all that pushed near-term inflation expectations higher, with the 1yr US inflation swap (+0.8bps) up to 2.04%, whilst the 1yr Euro Inflation swap (+1.7bps) moved up to 2.59%.

That backdrop meant investors priced in more Fed rate hikes, and speculation even returned about a potential rate hike next week. For instance, the probability of a July hike was back up to 26% by the close, the highest since last week’s downside surprise in the US CPI print. It was at 45% the day before CPI and as low as 10% the day after. Speaking of the Fed, our US economists are currently conducting their pre-FOMC survey, which includes a few questions on the Fed’s new task forces. If you have a few minutes, they’d appreciate your input to the survey, which you can find here.

With that in mind, US Treasury yields moved higher across the curve, with the 2yr yield (+5.5bps) up to 4.26%, whilst the 10yr yield (+3.6bps) rose to a two-month high of 4.63%. And for real yields there were some even bigger milestones, as the 2yr real yield (+3.6bps) rose to 2.33%, its highest since September 2024, and the 10yr real yield (+2.2bps) was up to 2.35%, its highest since October 2023.

Whilst sovereign bonds had a bad day, it was a different story for global equities, which surged thanks to a sharp bounceback in chip stocks. In fact, the Philly semiconductor index (+5.21%) posted its best daily performance in the last month, which helped to lift US equities more broadly. So the S&P 500 was up a sizeable +0.89% on the day, even as a majority of companies in the index lost ground. And over in Europe, tech stocks also helped to power the recovery, with the STOXX 600 up +0.56% on the day, with the STOXX Technology Index up +3.29%.

Overnight in Asia, we’ve seen that recovery in chip stocks continue, with South Korea’s KOSPI (+5.07%) posting a strong gain for a second consecutive day. Moreover, other indices have also risen, including the Nikkei (+1.03%), the CSI 300 (+0.67%) and the Shanghai Comp (+0.50%). However, the Hang Seng is down -0.83%, and US equity futures are also pointing slightly lower, with those on the S&P 500 down -0.12%. Otherwise, the Japanese yen weakened to levels last seen in 1986, closing at 163.17 per US dollar yesterday, where it remains this morning. And this morning, Finance Minister Satsuki Katayama said that “Our policy remains completely unchanged: We will take appropriate and bold action at any time, should the need arise.” That weakness in the yen is a good opportunity to remind you of Mapping the World's Prices 2026, which shows just how astonishingly cheap Japan now is relative to its DM peers and even versus many EM ones. See the report here.

Elsewhere yesterday, UK gilts outperformed as markets reacted to the previous evening’s announcement that John Healey would be the new Chancellor of the Exchequer, recovering after a very weak Monday. Although Healey was a surprise choice, given his name wasn’t really in the frame beforehand, markets were reassured by his previous experience as a Treasury minister in the 2000s, and his commitment to the fiscal rules. Indeed, new PM Andy Burnham said yesterday at cabinet that “We’ve got to show that our commitment to the fiscal rules is real, and we’re prepared to make difficult decisions in relation to that”. So the 10yr gilt yield fell -0.2bps on the day to 5.03%. Net net they are +7.9bps on the week so far, the same as 10yr US Treasuries but a bigger rise than for Bunds (+3.9bps) and OATs (+3.6bps). Meanwhile, we also heard the new government’s first economic announcement yesterday, as they announced that VAT of 5% would be removed on domestic electricity bills from October 1.

Otherwise in Europe, sovereign bonds sold off as the focus was on the ongoing rise in oil and gas prices. So yields on 10yr bunds (+1.4bps), OATs (+1.8bps) and BTPs (+1.3bps) all rose yesterday, with the 10yr OAT yield at a post-2009 high of 3.96%. Meanwhile at the front-end, the 2yr German yield (+1.7bps) closed at 2.80%, its highest level in almost two years. That came as the German ZEW survey surprised on the upside yesterday, with the expectations component up to 26.3 in July (vs. 15.3 expected), which is the highest it’s been since February.

Looking at the day ahead, it’s a fairly quiet one. But we’ll get the UK CPI print for June, and earnings releases after the US close include Alphabet and Tesla.

Tyler Durden Wed, 07/22/2026 - 07:45

Shipping Firms Offering Sailors Massive Bonuses To Risk Crossing Hormuz

Tyler Durden — Wed, 22 Jul 2026 11:20:00 +0000

Shipping Firms Offering Sailors Massive Bonuses To Risk Crossing Hormuz

Via The Cradle

International shipping firms are offering crews large bonuses to transit the Strait of Hormuz despite the risks involved, Bloomberg reported Monday.

Sinokor Group, the world's largest owner of supertankers, offered its crews six months of extra salary to make a return voyage collecting oil from Saudi Arabia or Iraq and unloading it in the Gulf of Oman, a trip the company said would take around a month, according to a document seen by Bloomberg.

Iranian military speedboats, illustrative file image

Captain Pradeep Chawla, chairman of GlobalMET, a seafarer training organization that partners with the International Maritime Organization (IMO), said crews are "being offered huge bonuses by some companies," without referring to the Sinokor offer directly.

He added that "We have heard stories of a large number of crew members getting off, but they are able to find people who are willing to go."

Since the start of the US war on Iran, at least 59 commercial ships have come under attack in and around the Persian Gulf, with 17 seafarers killed, according to the UN's shipping agency.

The cost of shipping has surged since attacks on commercial vessels drove traffic through the Strait of Hormuz to near collapse.

The heightened risk has driven up both insurance premiums and crew bonuses, yet many seafarers are still refusing the additional pay rather than risk the crossing.

The latest shipping data by Kpler shows that traffic through the Strait of Hormuz remains heavily suppressed, with only 30 verified crossings logged between July 17 and 19.

Reuters reported last week that shipping firms are steering clear of US-controlled shipping corridors through the Strait of Hormuz along Oman's coast, fearing Iranian strikes. The move follows a series of attacks on vessels bypassing the Islamic Republic's designated channels under the Iran–US memorandum of understanding (MoU).

One shipping source said the US appears to have no control over the situation, while Verisk Maplecroft analyst Torbjorn Solvedt warned that Iran's continued ability to hit ships on the Omani route makes US President Donald Trump's administration's plan to keep traffic moving unlikely to succeed.

Sinokor offers 6 months bonus to crews willing to do a month long run in Hormuz. Captain earns the most - $15k. A sailor earns $1.5k a month.

…Sinokor charges $500k/day… 🤬

Shipowners Offer Huge Bonuses to Get Crews to Sail Hormuz https://t.co/f0ntgyzl3j
— Laman (@LVision_Trading) July 20, 2026

In early July, three Thai sailors sued their former employer, Precious Shipping, along with two affiliates and the vessel's captain, accusing them of endangering their lives and dismissing them before their nine-month contracts ended, after a projectile struck their cargo ship in the Strait of Hormuz in March, killing three crew members.

Tyler Durden Wed, 07/22/2026 - 07:20

Trump Greenlights Saudi Nuclear Deal, Uranium Enrichment In The Kingdom Possible

Tyler Durden — Wed, 22 Jul 2026 10:55:00 +0000

Trump Greenlights Saudi Nuclear Deal, Uranium Enrichment In The Kingdom Possible

President Trump has formally approved a landmark 30-year civil nuclear cooperation agreement with Saudi Arabia that could be worth tens of billions of dollars and put American companies at the center of the kingdom's nuclear buildout, according to the Wall Street Journal.

The accord is expected to be signed Wednesday by US Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman, then head to Congress for a 90-day review. Lawmakers could block it through a joint resolution, but overriding a Trump veto would require two-thirds majorities in both chambers.

There is plenty to like here. A Section 123 agreement creates a legal framework for peaceful use, safeguards, and nonproliferation. American involvement also gives Washington more influence over Riyadh's program than it would have if Saudi Arabia turned to China or Russia.

The agreement is the latest step in a rapidly deepening relationship. The administration previously delinked Saudi nuclear talks from normalization with Israel, while Trump later designated the kingdom a major non-NATO ally after Mohammed bin Salman's return to the White House.

Yet one provision is difficult to support: “A key provision of the new accord would have American companies build an uranium enrichment facility in Saudi Arabia if a joint U.S.-Saudi study determines such a step would be warranted.”

The 123 accord is not a turnkey export license, and any technology transfer would still require separate federal approval, but the policy direction is clear.

The strongest argument for this arrangement is that US technology and oversight would keep Washington inside the tent and make diversion harder. That is a legitimate advantage, but it doesn’t eliminate the underlying risk.

Uranium enrichment is inherently dual-use. Centrifuges producing reactor fuel enriched to 3 to 5% can be reconfigured toward weapons-grade material above 90%. Safeguards can monitor declared activity, but technology, infrastructure, and trained personnel endure long after a government or regional balance changes.

Mohammed bin Salman has also said Saudi Arabia would pursue a bomb if Iran obtained one. The UAE, another close Gulf partner, accepted the so-called gold standard by renouncing enrichment and reprocessing.

The better model is simple: export the product, not the technology.

As we recently argued, Washington should overbuild uranium conversion and enrichment capacity inside the United States, then supply allies with safeguarded fuel under long-term contracts. Saudi Arabia would receive reliable reactor fuel, American workers would capture the investment, US suppliers would gain durable export revenue, and sensitive technology would remain under US jurisdiction.

No contractors have been announced. Centrus looks like the leading technology candidate given its operating US-origin centrifuge cascade and deep Department of Energy ties, with General Matter the emerging alternative.

Bechtel has the Saudi and nuclear pedigree to participate, but Centrus' existing EPC partnership with Fluor gives Fluor the stronger documented construction claim.

The agreement is strategically sound if it anchors Riyadh to American reactors, fuel, standards, and safeguards. But building Saudi enrichment capability trades away too much leverage in pursuit of that goal. Washington should sell the kingdom decades of American-made fuel, not the machinery that can ultimately make far more than fuel.

Tyler Durden Wed, 07/22/2026 - 06:55

BritCard Is Dead: Burnham Kills Starmer's £1.8 Billion Digital ID To Pay For An Energy Tax Cut

Tyler Durden — Wed, 22 Jul 2026 09:45:00 +0000

BritCard Is Dead: Burnham Kills Starmer's £1.8 Billion Digital ID To Pay For An Energy Tax Cut

Ten months ago Keir Starmer warned that anyone without a government digital ID "will not be able to work in the United Kingdom." On Tuesday - day two of the Burnham premiership - the scheme was formally killed off.

It wasn't the nearly 2.9 million people who signed the petition. It wasn't the civil liberties groups who dragged it through Parliament. It died because the new Prime Minister needed £1.8 billion to scrap VAT on electricity bills.

In his first major act in No 10, Andy Burnham announced that VAT will come off domestic electricity bills from October 1, timed to land before the next Ofgem price cap. Qualifying small businesses, charities and care homes benefit too. New Chancellor John Healey - installed Monday evening after Rachel Reeves was shown the door - said the move "is funded this year from cancelling the Digital ID programme," which the government prices at £1.8 billion over three years.

So ends BritCard: sold as the answer to illegal migration, buried as a line item in somebody else's tax cut.

A Short, Unhappy Life

None of this will surprise regular readers. When Starmer unveiled the plan last September, officials admitted its "efficacy depends on everyone having them" - universal or nothing. The pitch was border control. The architecture, as we noted at the time, was always closer to population management: only around 40,000 of the nearly one million migrants who arrived last year came by small boat. A universal ID for the entire country, aimed at the smallest slice of the problem it was sold on, was a problem-reaction-solution classic.

What followed was mission creep at record speed. By October it had become a bait and switch. By January ministers were floating digital IDs for newborns - cradle-to-grave tracking for a £1.8 billion program. Nearly 2.9 million people signed a petition, forcing a Parliamentary debate, and by mid-January the government had dropped the mandatory right-to-work requirement, the load-bearing wall of the whole project. Big Brother Watch's Silkie Carlo said taxpayers should not be footing "a £1.8 billion bill for a digital ID scheme that is frankly pointless." Ministers pressed on anyway with a voluntary version that was never the optional convenience they claimed.

Now even that shell is gone - cancelled not on principle but for parts.

Follow The Money

Whether the money is actually there is another question. The Times reports the VAT cut is fully funded. The OBR counters that the £1.8 billion Digital ID budget was never funded in the first place, which means cancelling it pays for nothing. At least one former minister has said flatly that the cut is unfunded. The government's own release concedes that "updated costs will be set out at Budget" - the arithmetic, in other words, arrives later. More giveaways are already queued: a 20 percent business-rates cut for hospitality within days, per HuffPost UK, and a £2 bus-fare cap as soon as Wednesday.

Gilt traders ran the same numbers and reached the same place. The 10-year yield jumped 8 basis points to 5.04 percent on Monday as Burnham's early remarks stoked fears of a looser fiscal stance, then pared the move once Healey - the former defence secretary who quit Starmer's cabinet over defence funding - took the Treasury instead of Ed Miliband, who was packed off to the Foreign Office. Yields fell across the curve Tuesday morning in evident relief, with sterling steady near $1.344. Relief is not confidence. British 10-year borrowing costs are still the highest in the G7, and every unfunded pound of Burnham's day-two populism gets marked to market eventually.

What Actually Died

To be precise about the corpse: what was cancelled is the standalone national BritCard programme, and nothing else. It does not touch Gov.uk One Login and its millions of enrolled users, the Gov.uk Wallet, or the Online Safety Act's age-verification regime, which as we reported in June was already working as a backdoor identity mandate for every phone in Britain, with Google and Apple building the plumbing.

Schemes like this also have a habit of returning under new names with smaller line items. A government that just banked £1.8 billion in savings that were never there knows exactly where to find another £1.8 billion next year.

Still, take the win. Nearly three million signatures couldn't kill BritCard. One expensive winter did.

Tyler Durden Wed, 07/22/2026 - 05:45

German Motorists Flood Czech Border As Fuel-Price-Cap Ends

Tyler Durden — Wed, 22 Jul 2026 09:00:00 +0000

German Motorists Flood Czech Border As Fuel-Price-Cap Ends

Via Remix News,

German motorists formed kilometer-long lines at Czech gas stations on Sunday as they rushed to take advantage of lower prices before the government’s fuel cap expired.

Stations near the German border were overwhelmed by drivers seeking cheaper gasoline and diesel, with footage showing long queues at some locations.

According to Echo24, fuel in the Czech Republic was as much as €0.80 per liter cheaper than in Germany.

The surge came shortly before regulated pricing ended and the Czech fuel market returned to market-based rates.

Prices began rising at several stations on Monday morning, with diesel generally recording the sharpest increases.

At a PRIM station in Prague’s Dolní Počernice district, diesel rose by 2.40 crowns (€0.10) to 39.90 crowns (€1.65) per liter. Natural 95 gasoline increased by 1.40 crowns (€0.06) to 40.90 crowns (€1.69).

At a Shell station in Prague’s Chodov district, diesel increased by one crown (€0.04) to 41.90 crowns (€1.73) per liter. Natural 95 gasoline rose by 0.60 crowns (€0.02) to 43.10 crowns (€1.78).

Analysts had expected diesel prices to climb by as much as three crowns (€0.12) per liter because a temporary reduction in the diesel excise tax expired alongside the price controls. Smaller increases were forecast for gasoline.

The government introduced the measures in April after oil prices rose amid the conflict in the Middle East.

The Finance Ministry imposed daily maximum prices based on wholesale costs and capped retailer margins, initially at 2.50 crowns (€0.10) per liter and later at three crowns (€0.12).

The cabinet also temporarily reduced the diesel excise tax from 9.95 crowns (€0.41) to 8.011 crowns (€0.33) per liter. The gasoline tax remained unchanged at 12.84 crowns (€0.53).

Finance Minister Alena Schillerová previously said the diesel tax reduction cost the state budget around one billion crowns, approximately €41.3 million, per month.

Schillerová said the government would continue monitoring the market and could reintroduce regulation if fuel prices rise sharply or conditions on global oil markets deteriorate.

The cabinet also temporarily reduced the diesel excise tax from 9.95 crowns to 8.011 crowns per liter. The gasoline tax remained unchanged at 12.84 crowns.

Finance Minister Alena Schillerová previously said the diesel tax reduction cost the state budget around one billion crowns per month.

Schillerová said the government would continue monitoring the market and could reintroduce regulation if fuel prices rise sharply or conditions on global oil markets deteriorate.

Read more here...

Tyler Durden Wed, 07/22/2026 - 05:00

Drone War Enters Terrifying New Phase As Russia Deploys 300-MPH Jet-Powered Shahed

Tyler Durden — Wed, 22 Jul 2026 08:15:00 +0000

Drone War Enters Terrifying New Phase As Russia Deploys 300-MPH Jet-Powered Shahed

Dramatic footage posted on X shows what appears to be a Russian Geran-4 jet-powered, one-way attack drone striking a passenger train in Ukraine.

If authenticated, the footage shows just how rapidly drone warfare is evolving beyond conventional two-stroke power plants toward miniature turbojets that sharply increase speed, compress warning and response times, potentially render many existing small-drone interceptors ineffective, and accelerate the overall tempo of combat across modern battlefields.

Here's the footage:

A video has emerged documenting the moment when a Russian Geran-4 jet-powered OWA-UAV impacted a locomotive of a passenger train in the Ukrainian settlement of Solone, Zaporizhzhia Oblast, on Sunday. pic.twitter.com/RRUl8x7NBM
— Status-6 (War & Military News) (@Archer83Able) July 20, 2026

Ukraine's Defense Intelligence recently published a report on Russia's new jet-powered strike UAV, known as the Geran-4.

The report said the Geran-4 entered combat in May and can exceed 300 mph, climb above 15,000 feet, and deliver a 100- to 200-pound warhead against targets up to 279 miles away.

Powered by Chinese-made Telefly turbojets, the Geran-4 compresses Ukraine's detection and engagement windows while forcing Kiev to deploy faster and more expensive interceptor drones and missiles.

Reuters published a report Tuesday noting that Ukrainian drone manufacturer SkyFall unveiled a new high-speed interceptor at the UK's Farnborough Airshow designed to counter these new Russian jet-powered drones.

Ukrainian company SkyFall introduced the P1-SUN Jetkiller, an accelerated interceptor drone designed to counter Shahed-type drones. It reaches speeds of up to 370 km/h, compared with 310 km/h for the standard P1-SUN variant. Development took around three months.#SkyFall #P1SUN pic.twitter.com/HmTClD0OkF
— Drone Wars (@Drone_Wars_) July 21, 2026

We warned in May: "And just wait until micro jet engines become standard on suicide drones ..."

Read: Logic Of Violence: We Are Nowhere Near The Endgame In Drone Wars

Last drone coverage:

Counter AUS coverage:

The world is becoming a dark and dangerous place as drones and robots become weaponized. Humanoids will be next.

Tyler Durden Wed, 07/22/2026 - 04:15

Poland's Planned Megaport Is Part Of Its Regional Power Play

Tyler Durden — Wed, 22 Jul 2026 07:30:00 +0000

Poland's Planned Megaport Is Part Of Its Regional Power Play

Authored by Andrew Korybko,

Poland will become indispensable to Czechia, Slovakia, Austria, and Hungary’s global trade upon the completion of this project, thus securing their place within its “sphere of influence” and reducing the likelihood that German-backed Ukraine “poaches” them as part of their rivalry for regional leadership.

“Notes From Poland” reported that “Poland has begun construction of a 10 billion zloty (€2.3 billion) deepwater port and container terminal in the city of Świnoujście, near the German border…The facility will also be designed for both civilian and defence use…Deputy infrastructure minister Arkadiusz Marchewka said the terminal would serve not only Poland but also markets including eastern Germany, and the landlocked Czech Republic, Slovakia, Austria and Hungary, reports Business Insider Polska.”

This megaproject is part of Poland’s regional power play in which it envisages becoming the leader of Central & Eastern Europe (CEE) through diplomatic, security, and connectivity means, the first two of which were elaborated upon here while the third concerns the “Three Seas Initiative” (3SI). The last-mentioned involves dual-use connectivity infrastructure such as that which Poland is now building in Świnoujście, which also hosts an LNG terminal that could supply Czechia, Slovakia, Austria, and Hungary.

They and Poland are coincidentally the states that new Hungarian Prime Minister Peter Magyar proposed merging into a sub-regional integration bloc that would combine the Visegrad Group (Poland, Czechia, Slovakia, and Hungary) with the Slavkov format (Czechia, Slovakia, Hungary, and Austria). While they’ve yet to implement his idea, Polish influence over those four will grow upon the completion of Poland’s new 3SI-connected Świnoujście megaport, which will facilitate the expansion of their global trade.

It also goes without saying that their import of American LNG via the Świnoujście terminal would do the same, with both Polish initiatives serving to show just how important that country is poised to become to CEE in the evolving post-conflict order. Another poignant observation is that Czechia, Hungary, and Slovakia all refused to finance the EU’s new €90 billion loan to Ukraine, over half of Austrians want their government to stop financing it too, and Poles are rapidly souring on Ukraine as well.

With all this in mind, Poland already basically leads an unofficial bloc in CEE comprised of countries whose societies and governments alike (Austria’s being the notable exception as regards the latter) are known abroad for their increasing criticism of Ukraine, which most recently ruined its ties with Poland. Zelensky’s state-level glorification of the Volhynia Genocide’s OUN-UPA culprits sparked so much backlash that even the country’s ruling Ukrainophilic liberal coalition was forced to harden its approach.

“Poland Finally Realizes The Geostrategic Challenge Posed By Ukraine” as its German-backed competitor for leadership over CEE. In particular, “Ukraine’s Planned Drone Plants In The Baltics Are Part Of A Plot To Outflank Poland”. Even if Poland “loses” the Baltics to Ukraine, and recalling that Ukraine already beat it in the Balkans (for now) as proven by six regional leaders recently paying political pilgrimage there, Poland could still count Czechia, Slovakia, Austria, and Hungary within its “sphere of influence”.

Joint German-Ukrainian leadership over the Baltics and the Balkans would still overshadow that achievement, and Poland would then face challenges to its political sovereignty and strategic autonomy, but it would still have a fighting chance at avoiding full-blown domination.

Therefore, the grand strategic significance of the Świnoujście megaport is that it’ll prevent Poland’s isolation in the aforesaid scenario by making it indispensable to its landlocked allies, after which it might try to “regain” the Baltics one day.

Tyler Durden Wed, 07/22/2026 - 03:30

India Summons Russian Envoy, Furious At Mass Casualty Tanker Strike In Black Sea

Tyler Durden — Wed, 22 Jul 2026 06:45:00 +0000

India Summons Russian Envoy, Furious At Mass Casualty Tanker Strike In Black Sea

Tit-for-tat attacks on shipping between Ukraine and Russia have ratcheted of late in the Black Sea. At least half a dozen commercial vessels have been attacked in these waters over the past two weeks alone. The situation is almost becoming akin to a Hormuz crisis in its own right, as oil transit slows.

Tragically, there's a mounting death toll among crew members caught in the crossfire. One of the biggest single casualty events - if not the biggest - was the result of a Russian attack on the Golden Leo, a Guinea-Bissau-flagged ship, on Sunday.

Ukrainian Navy/Telegram

Three cruise missiles reportedly hit the vessel, killing ten people, including four Indian citizens. The other dead were from Syria, and one Ukrainian, and the incident has outraged these countries, especailly India.

Throughout the Ukraine war India and Russia have remained key energy trading partners, but this Black Sea incident has introduced fresh tensions.

India’s Foreign Ministry confirmed Tuesday that it summoned a senior Russian diplomat to fiercely protest the attack and deaths of Indian nationals.

"Such attacks undermine the safety, security and stability of international maritime commerce," India’s Foreign Ministry said in a statement upon summoning Russian chargé d’affaires Vladimir Ladanov.

New Delhi further expressed "grave concerns and unequivocal condemnation" of the attack and told Ladanov to convey to the Kremlin that "the targeting of commercial shipping and the resulting loss of innocent civilian lives are unacceptable and must be avoided."

Ukraine has also been drastically escalating its attacks on Russian vessels, including so-called 'dark fleet' tankers.

As we featured previously, these attacks reached a peak by mid-July: Ukrainian forces struck 17 Russia-linked oil tankers, 2 gas carriers, and one tugboat early on July 15, drone unit commander Robert Brovdi said at the time.

Meanwhile, more reports of tanker attacks off Black Sea coast emerging by the day:

🇷🇺🇺🇦 A Liberian-flagged LPG tanker, "Gas Lisbon" bound for Ukraine was hit off the coasts of Romania.

All 17 crew onboard were evacuated by the Romanian coast guard, with three injured.

This comes after the new sea blockade imposed by the Russian MoD on Odessa. pic.twitter.com/iC53Y8QW9y
— Spetsnaℤ 007 🇷🇺 (@Alex_Oloyede2) July 21, 2026

"The first round of the naval battle is over," the commander wrote, referring to the Sea of Azov, where Ukraine had focused its drone attack efforts in the past few weeks, alongside targeting refineries deep into Russian territory.

"Now, the Black Sea," Brovdi said, confirming that Ukraine’s campaign to strike oil and gas vessels is indeed expanding to the Black Sea, a key export route for crude and fuels from the south of Russia.

Tyler Durden Wed, 07/22/2026 - 02:45

The UK Censors The Net 'For The Children'

Tyler Durden — Wed, 22 Jul 2026 06:00:00 +0000

The UK Censors The Net 'For The Children'

Authored by Ted Newson via AmericanThinker.com,

Outgoing British prime ministers have a tendency to rapidly expand the remit of the state in their final days.

Theresa May tied a Net Zero target into law, Rishi Sunak implemented a generational smoking ban.

Keir Starmer is no exception.

The British state has now outlawed social media usage for those under sixteen.

On June 15, Starmer stood at Downing Street to announce that Britain would ban under-16s from social media, after intense pressure from campaigners. Possibly his last meaningful political action before resigning on June 22. Additionally, the now-departed PM has left the door open to curfews for 16 and 17-year-olds. The country that gave the world the liberal philosophy America's Founders drew on is now imposing digital ID and information bans.

The justification is public safety. A framing that has a habit of expanding well beyond its original scope. Banning under-16s from social media is framed as "giving children back their childhoods"; in reality, it has a much darker undertone.

Not all social media is created equal. Depending on how they’re put to use, these platforms can serve as invaluable educational resources. Excessive social media use, as a substitute for going outside, is the real issue that studies show.

As state education systems become increasingly politicized, social media can give curious minds access to alternative perspectives that will help them make sense of the world for themselves. While recently social media algorithms have pushed people into more radical politics, the solution is to change the algorithm, not the user.

My teen years were shaped by non-mainstream thinkers from across the political spectrum. At that time, the UK had a centrist government and a narrow Overton window. In the classroom, there were ‘politically correct’ and ‘politically incorrect’ opinions. To explore views the British commentariat either ignored or scorned, I looked to YouTube. The Oxford and Cambridge debates I found there at fifteen took every viewpoint as worthy of criticism, debate, and rebuttal.

As someone who now works in politics, having the ability to watch ‘adult’ debates from a young age expanded my mind and helped me in learning some key skills for the future. This kind of intellectual curiosity is exactly what under-16s should be showing. A blanket ban on usage will only stunt the growth of the next generation.

The philosopher John Stuart Mill argued that the state may only restrict liberty to prevent harm to others, not to protect people from themselves. A teenager on Instagram harms no one but possibly themselves. That, by the oldest principle in liberal democracy, is their business and their parents', not Starmer's.

An aggressive form of state parenting would at least be understandable (though still unfair) if applied across every facet of young people’s lives. At sixteen you can join the army, have a child, and under Labour's own proposals, vote; but apparently you cannot be trusted with Instagram.

The ban doesn’t make sense for teens, but they’re not the only ones who will be affected. Enforcing the ban will require a system for online age verification. Think digital ID checks for the entire population. The House of Lords has even voted to force VPN providers to implement digital ID to close the workaround.

What could possibly go wrong? Data breaches leading to all manner of harm, that’s what.

This level of paternalism isn’t just in British politics. Despite the various flaws exposed by an Australian social media ban, Spain, Greece, and Slovenia are working on bans of their own. France is also expected to implement an under-15s ban. America must resist the pressure of the bipartisan “child safety” coalition in Congress and resist any expansion of KOSA (Kids Online Safety Act). Not only does age-gating the internet push children onto unmoderated dark-web-adjacent sites, it opens up the rest of the population to providing vast amounts of their personal data to social media companies to appease the government.

What Starmer called putting "power back in parents' hands" actually means handing your passport details to a social media company and handing permanent regulatory power to the Secretary of State; with no sunset clause, no parliamentary override, and no expiry date. It is no longer the case that parents get to decide their own social media policy for their children, the government must go above parents in deciding what is best for children. Ultimately, this leads to people having less individual agency when deciding things. The state, apparently, knows better.

Parents should be allowed to decide what their children see. If they want to use YouTube as an educational tool for their kids, they should be allowed to do so at any age. As things stand, a child aged fifteen would be able to watch Baby Shark videos on YouTube Kids, but be barred from accessing a college lecture.

America was built on freedom and individual rights. It is for that reason, it is one of the most prosperous countries in the world. U.S. lawmakers should resist the urge to follow the rest of the world into overregulation, paternalism, and mass surveillance. Britain is discovering what happens when the state appoints itself the parent of a nation. America was founded precisely to prevent that.

Tyler Durden Wed, 07/22/2026 - 02:00

Spain's World Cup Hero Rocks 'Make Spain Great Again' Hat

Tyler Durden — Wed, 22 Jul 2026 03:25:00 +0000

Spain's World Cup Hero Rocks 'Make Spain Great Again' Hat

Authored by Steve Watson via Modernity News,

Spain are the world champions again. Ferran Torres came off the bench and smashed home the only goal of the 2026 World Cup final in the 106th minute against Argentina. The next day, as the open-top bus rolled through Madrid and nearly two million Spaniards packed the streets, the hero of the final stood shirtless, draped in the national flag, and wearing a bright red baseball cap that read "Make Spain Great Again."

The image spread instantly. It was impossible to miss the deliberate echo of President Donald Trump's signature slogan. Trump himself had been on the pitch the night before at MetLife Stadium in New Jersey, presenting the trophy and medals to Spain's players after their hard-fought 1-0 extra-time victory.

Torres later said of the winning goal: "I think in the end the goal came from 47 million people, not just those of us that are here. Today destiny was written, it was made for us to win. We're far from our people today but we tried to be as close as possible to them."

?BREAKING: Spanish footballer, Ferran Torres, wore a "Make Spain Great Again" cap at their World Cup celebration

The far-left Spanish government does NOT represent the people! ?? pic.twitter.com/8eYnve2x1Y
— Inevitable West (@Inevitablewest) July 20, 2026

The far-left government of Pedro Sánchez does not speak for those 47 million. Many Spaniards are fiercely patriotic. They do not like what is being done to their country.

?? | Ferrán Torres con su gorra de «Make Spain Great Again» durante la celebración del Mundial en Madrid. pic.twitter.com/qvo9kpNhl1
— ???Q??s (@herqles_es) July 20, 2026

While the players celebrated a second World Cup title, the same government that waved them off continues to flood Spain with mass illegal immigration, grant amnesties to hundreds of thousands of undocumented arrivals, and watch as public services buckle and crime statistics turn ugly.

In April, Sánchez's socialists pushed through a royal decree granting legal status, work permits, and benefits to roughly half a million illegal migrants - potentially as many as 800,000. The result was immediate chaos. Thousands of military-aged men swarmed consulates in Madrid, Bilbao, and Almería, clambering over security gates and forming kilometre-long queues to obtain the paperwork needed for the amnesty.

Registry offices across the country collapsed under the pressure. Migrants camped overnight. Local officials reported daily requests at social services centres jumping from 1,500 to 5,500 in Madrid alone. Municipal unions warned of "extraordinary pressure" and deteriorating service quality. One official, Jose Fernandez, said bluntly: "I think a hasty decision was made, perhaps even intended to create a collapse."

Days later the scenes grew more extreme. Crowds of undocumented migrants stormed the Gambian embassy in Madrid, scaling walls and fences in desperation to secure documents under the same regularisation process.

Patriots who dared to protest the amnesty were met with violence. In Granada, roughly 40 left-wing extremists tried to shut down a Vox rally. Red paint was thrown, police formed cordons, and Vox leader Santiago Abascal had to confront the mob himself.

"They are preventing us from carrying out this act freely," he said. Abascal has repeatedly described the policy as an "invasion" that is accelerating the "thirdworldization" of Spain. "Tomorrow this chaos will move to the health centres, to the social services, to the real estate agencies... It's already happening. Our priority is to reverse it, radically."

Sánchez defends the amnesty as "an act of justice and a necessity." In a letter to citizens he claimed migrants "already form part of our everyday lives" and insisted Spain "is the daughter of migration and will not become the mother of xenophobia."

Globalist money man Alex Soros publicly praised him, declaring the move showed "what real leadership looks like" and adding, "We need more elected leaders like him!"

Ordinary Spaniards see something very different. A July 2025 poll for El Mundo found 70 percent support mass deportation of illegal immigrants - including majorities of Socialist voters. Support reached 92 percent among Popular Party voters and 89 percent among Vox supporters.

The crime data explains why. Foreigners in Spain commit five times more rapes and four times more murders per capita than Spanish citizens. They make up 31 percent of the prison population.

In Catalonia, migrants - 17 percent of the population - account for 91 percent of convicted rapists. Rape reports nationwide have tripled in six years, from 1,878 in 2019 to 5,206 in 2024. Over the last decade the increase stands at 322 percent, far above the EU average of 150 percent.

This is the Spain that Ferran Torres and his teammates returned to as champions. A country whose people still wave the flag, still fill the streets in the millions for a national team victory, and still remember how to sing songs the authorities would prefer they forgot.

During the Euro 2024 semi-final against France, Spanish fans joined others in belting out a controversial melody that UEFA had tried to ban because right-wing crowds had turned it into an anthem against mass migration.

The contrast could not be sharper. On the pitch and in the streets of Madrid, Spaniards celebrated national excellence and belonging. In the corridors of power, the Sánchez government continues to prioritise open borders, globalist applause, and the steady erosion of the very identity that produced a world-beating football team.

President Donald J. Trump presents the World Cup Trophy to Spain, the 2026 @FIFAWorldCup Champions! ? pic.twitter.com/SHsoBhYm1b
— The White House (@WhiteHouse) July 19, 2026

Trump, who handed over the trophy, later said of his interactions with Spanish officials: "I spoke to Spain and I congratulated them on having a great team. I really spoke to a lot of people. I have no tension with him. I have no tension with anybody."

? PRESIDENT TRUMP ON PEDRO SÁNCHEZ:

"I spoke to Spain and I congratulated them on having a great team. I really spoke to a lot of people.

I have no tension with him. I have no tension with anybody." pic.twitter.com/bQIYrbtW4f
— America News (@AmericaPartyX) July 20, 2026

The tension that matters is not between presidents. It is between a far-left elite that treats national identity as an embarrassment and a people who still know what it means to make Spain great again.

Torres did not need a press conference. The red cap said enough. For millions of Spaniards watching their services strain, their streets change, and their crime statistics climb, the message landed exactly as intended.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Tue, 07/21/2026 - 23:25

'Birthright Senatorship'? - Graham's Sister Announces Bid For Full Term As Mace Opts Out

Tyler Durden — Wed, 22 Jul 2026 03:00:00 +0000

'Birthright Senatorship'? - Graham's Sister Announces Bid For Full Term As Mace Opts Out

Three days after President Trump publicly urged her to run, the sister of the late Senator Lindsey Graham on Monday afternoon announced that -- unsatisfied with serving as an obviously unqualified interim senator through January -- she will run for the full six-year-term that starts in January. The development seemed to brush another potential candidate off the plate, but another one joined the field on Monday. Possibly seeing Trump's endorsement as too ridiculous to be fully intimidating, others may join a field that officially has five candidates.

Hard pass. Birthright senatorship is idiotic. https://t.co/RRQbCrNEDl
— Sean Davis (@seanmdav) July 20, 2026

Graham's sister made the announcement on Sean Hannity's Fox News show on Monday night, but a clip of her declaring that she'd run was posted earlier that afternoon, perhaps with the intent to discourage other candidates from filing when the window officially opens today; it closes on Tuesday the 28th:

“I’ve made a decision. I’m in... I can’t see it any other way. I just don’t. I’ve thought, and I’ve prayed, and he’s worked so hard for so long. I just, I can’t just let that die. I’ve got to step in and carry on his legacy. I know he cared about the people of South Carolina so deeply. He worked so hard for them, and I feel like I can do that, too.”

To be clear, Lindsey Graham's "legacy" centers on relentless advocacy for bloody, expensive and often counterproductive regime-change interventions around the globe, to include collaborating with Israeli Prime Minister Benjamin Netanyahu to persuade Trump to launch a war on Iran on false premises, and fostering the ouster of Ukraine's democratically-elected president before then leading the charge to pour billions of dollars of weapons into an economy-damaging proxy war against Russia.

I cannot begin to fathom having no political involvement, tragically losing my brother or sister, and then a week later launching a political campaign saying I deserve their seat.

The elites don’t care about representing us. To them voting is just an annoying formality. https://t.co/QTk48IHnOb
— Dan Bostic (@danbostic) July 21, 2026

The start of the new week also brought us a rebranding of Graham's sister. When South Carolina Gov. Henry McMaster appointed her to be a placeholder for the remainder of her brother's term that ends in January -- and in the days since -- she was universally referred to as Darline Nordone or Darline Graham Nordone. With her announcement, she's suddenly "Darline Graham," even though she remains married to Larry Nordone, about whom very little is publicly known.

The Darline Graham relabeling is obviously meant to capitalize on name recognition, which, aside from the Trump endorsement, is her only political asset. She has never held an elected office. She's commissioner of the South Carolina Commission for the Blind, and previously held a communications role in the South Carolina Vocational Rehabilitation Department. Ever the Trump today, Hannity tried using Monday's softball interview to polish Darline Graham's thin resume. "You've had your own life and success," he said. "You have been the commissioner of South Carolina's commission for the blind. You've held this position since 2019. It's a 130 person agency, $90 million budget you ran, 10 offices across South Carolina ... you've got a lot of experience."

Darline Graham, who seemingly buys her ladies' US-flag brooches at the same place as Mark Levin, called herself Darline Nordone up until Monday

At least one potential opponent seemed to find Trump's endorsement sufficiently threatening: Rep. Nancy Mace, who's poised to hand over her House seat in January after having foregone reelection for a failed bid for governor, had teased at a run on social media within hours of Lindsey Graham's death. On Monday, however, Mace announced she will not enter the GOP special primary election that will take place on Aug. 11, with a potential run-off of the top two finishers on Aug 25. “I’m not running for the U.S. Senate, not because I’m backing down from a fight, but because the one I’m already in matters right now,” she said, referring to her work on laws to protect women and girls who are victims of sexual misconduct.

Undaunted, Congressman Russell Fry jumped into the race on Monday. Fry was reportedly hand-picked by Trump to unseat Republican Tom Rice in 2022, as payback for Rice's vote to impeach Trump over the Jan 6, 2021 Capitol Hill riot. He won and is considered close to the Trump team. “There is no other way to put it: Lindsey Graham was one of a kind. There is no replacing him. But I believe the best way to honor his legacy is to fight alongside the President just as steadfastly as he did,” Fry said in a statement. Hedging his bets, Fry will also continue pursuing reelection to the House.

South Carolina - meet your new Lisa Murkowski!

She will be the Senator that represents your grandchildren.

And you had no say in it at all. https://t.co/AfmCebOhlX
— Dan Bostic (@danbostic) July 20, 2026

~~Nordone~~ Graham and Fry join a field that includes businessman Mark Lynch, who was trounced by Lindsey Graham in the June GOP primary; Duke Buckner, a lawyer who has previously run for the state's heavily-Democratic 6th Congressional District seat; and US Rep. Ralph Norman. At 73 years old, Norman's age might be a liability, but he's picked up endorsements from Florida Sen. Rick Scott, Utah Sen. Mike Lee, Turning Point Action and Nancy Mace.

The winner will go up against Democrat pediatrician Annie Andrews, who previously failed to unseat Mace, and who has founded a PAC focusing on issues like climate change, gun control and voting rights. Before Lindsey Graham suddenly died on July 11 from an aortic dissection, the Cook Political Report rated the South Carolina seat "Solid R." That's unlikely to change no matter who wins the Aug 11 GOP primary.

The big question is whether Trump's endorsement and outside spending in a very short race can overcome Darline Graham's lack of credentials -- and perhaps some reluctance among South Carolina Republicans to see their Senate seat treated like inheritable property. So far there's no indication there will be a debate among the candidates. That's a shame for South Carolina voters, but Darline Graham must be relieved that she won't have to face at least four other candidates and a moderator grilling her on a variety of national and international issues she likely knows very little about and has even less experience articulating.

Tyler Durden Tue, 07/21/2026 - 23:00

Data Centers Were Responsible For 46% Of PJM's Last Four Capacity Auction Costs

Tyler Durden — Wed, 22 Jul 2026 02:35:00 +0000

Data Centers Were Responsible For 46% Of PJM's Last Four Capacity Auction Costs

By Ethan Howland of UtilityDive

Data centers are responsible for $6.3 billion, or 38%, of the $16.4 billion in charges from the PJM Interconnection’s just-held capacity auction, Joseph Bowring, president of Monitoring Analytics, said in an email to Utility Dive. Monitoring Analytics is the grid operator’s independent market monitor.

In PJM’s last four base capacity auctions, data center-driven capacity charges totaled $29.4 billion — 46% of the $63.6 billion in total capacity charges in that period, Bowring said. Monitoring Analytics plans to publish its analysis of the most recent auction in a few weeks, he said.

PJM isn’t fully grappling with the ramifications of data center development, according to Bowring. “PJM is continuing to act like it’s business as usual,” he said in an interview on Friday. “You have to open your eyes and recognize that it is really a paradigm shift, and failing to do that imposes costs on other customers.”

Ratepayers in PJM are not only paying capacity charges for existing and potential data centers, they are paying for higher energy and transmission costs data centers have caused, according to Bowring.

PJM’s capacity auctions and the price of electricity has become a major political issue in the grid operator’s footprint, which includes 13 Mid-Atlantic and Midwestern states and the District of Columbia. In September, governors from PJM states formed a collaborative to advocate for their interests with the grid operator.

On March 4, Google, Meta, Microsoft and other data center companies pledged at the White House that they would protect consumers from price hikes due to data center energy and infrastructure requirements.

However, meeting that pledge is impossible in PJM under its current rules, according to Bowring.

“There’s only one way to do what hyperscalers agree is the right thing to do, and that is to run a separate auction,” Bowring said. “That’s good for the hyperscalers … because it allows them to get capacity and be served reliably, and it’s good for other customers because it separates out the impact from the data center.”

First, data centers and other large loads should contract for their own generation, according to a proposal the market monitor made last month as part of PJM’s fast-track stakeholder process for a backstop reliability auction. For those that can’t bring their own generation, PJM should hold separate auctions to procure their capacity supplies under 15-year contracts, Bowring said.

PJM buys capacity ahead of time — normally three years in advance — based on its demand forecast. However, it is unclear exactly how much data center load will materialize, adding uncertainty to the forecast.

While PJM has tried to make its data center forecasts more accurate, there is growing opposition to data centers across the United States, with some major projects getting canceled, Morningstar DBRS said in a report released Monday.

“As states consider new taxes, restrictions, and moratoriums on data center growth, escalating stakeholder opposition could become a material credit factor, potentially weakening data center project credit quality by reducing development visibility, increasing regulatory risk, and challenging assumptions around the pace and certainty of future AI-driven capacity expansion,” the credit ratings agency said.

Under Monitoring Analytics’ auction proposal, removing data centers — and the uncertainty around their future loads — from the base capacity auction ensures ratepayers won’t pay for unneeded capacity.

PJM’s board is developing a backstop auction proposal for data centers that it aims to file with the Federal Energy Regulatory Commission this month so the auction can take place in September.

Under a plan that received the most support in the stakeholder process, utilities and other load-serving entities, and potentially data centers themselves, would ask PJM to buy a specific amount of capacity in a one-time auction. PJM staff proposed that it would procure in a one-time auction the shortfall from its last base capacity auction — about 6.8 GW.

Tyler Durden Tue, 07/21/2026 - 22:35

CIA Distances Itself From Trump's Iran War With Media Leak

Tyler Durden — Wed, 22 Jul 2026 02:10:00 +0000

CIA Distances Itself From Trump's Iran War With Media Leak

It seems that CIA and other US intelligence officials hope to distance themselves from Trump's Iran war, now with the US-initiated conflict having dragged on for nearly five months (with no end in sight), after White House officials had in the opening days touted a swift, limited military excursion.

They are leaking intelligence to the press which shows they have assessed that current American strikes on Iran are unlikely to change Iran's negotiating position. With tankers in Hormuz on fire and others too afraid to move, Iran is vowing that it will keep its leverage over the strait at all costs.

The Washington Post report says that "Iran's government is unlikely to feel significant impact or soften its negotiating position as a result of new rounds of U.S. military strikes like those now underway, according to a new intelligence assessment described by current and former U.S. officials."

To a large degree this intel assessment is stating the obvious, which should have been well understood far in advance. It seems intel officials want to get it on record that they predict a quagmire as the White House seeks to extricate itself and the global economy from the crisis (of its own making) in the Gulf. Escalation in air strikes will only further stalemate the situation, the intel analysis forecasts.

Stating the obvious is further on full display in lines from the WaPo report like the following: "Analysts at American spy agencies also have concluded that Tehran and Washington are, for now, stuck in an indefinite limbo between peace and war, the officials said — an uneasy dynamic given the increasingly deadly nature of the tit-for-tat hostilities between the two nations. The current and former officials spoke on the condition of anonymity to describe the assessments because of their sensitivity."

President Trump has reportedly been briefed on the assessment. According to more:

The latest intelligence report was written primarily by the CIA, where analysts have underscored the Tehran regime's staying power despite the loss of many of its top leaders and much of its military hardware to U.S. and Israeli attacks. In May, a CIA analysis concluded that Iran could survive a U.S. naval blockade for at least three to four months before facing more severe economic hardship.

As of Monday, Trump previewed harder hits on Iran to come after the killing of multiple US troops in Jordan and neighboring Iraq. At least two died during a ballistic missile attack in Jordan, while one service member was killed in northern Iraq.

Intelligence agencies don’t need to report on what’s obvious to the naked eye https://t.co/SiH44i1Qj5
— Ali Vaez (@AliVaez) July 21, 2026

Again, here's more of the obvious from the Post report:

Jonathan Panikoff, former deputy U.S. national intelligence officer for the Near East, said that the Trump administration appears to believe that if it keeps hitting Iran harder militarily, Tehran eventually will become more flexible. “That assessment is almost certainly incorrect,” said Panikoff, senior director at the Atlantic Council think tank.

Iran’s government has repeatedly shown that its number one priority is survival of the regime, and that it is willing to suffer blows despite the harm to its people and economy, he said.

It's quite the irony when the hawks have lost even the Atlantic Council.

But a number of more independent-minded analysts have predicted this would spiral into a quagmire from day one.

Trump Bubble still believes Iran will break if they keep bombing it, because that's how it's supposed to work. Langley assesses Iran won't break & Trump is an idiot, and they want it public so that CIA isn't blamed when shit goes bad to worse.https://t.co/2hqS0xJj7z
— Mark Ames (@MarkAmesExiled) July 21, 2026

"We need to give honest answers to direct questions like this," University of Chicago political scientist Robert Pape said Sunday. "The bottom line is there's absolutely no doubt President Trump underestimated Iran."

"We are still continuing to underestimate, in my opinion," Pape said. "We're having a very hard time, as countries do, seeing the nationalist fighters on the other side of the battlefield. And those are burning quite bright now in Iran."

Tyler Durden Tue, 07/21/2026 - 22:10

DOJ Probing Harvard Over Financial Aid Programs Linked To China-Based Sources

Tyler Durden — Wed, 22 Jul 2026 01:45:00 +0000

DOJ Probing Harvard Over Financial Aid Programs Linked To China-Based Sources

Authored by Aldgra Fredly via The Epoch Times,

The Justice Department (DOJ) said on July 20 that it was investigating whether Harvard University violated Title VI by excluding American students from financial aid programs funded by China-based sources.

Harvard University in Cambridge, Mass., on July 4, 2025. Learner Liu/The Epoch Times

The DOJ announced that Harvard's foreign funding disclosures raised concerns about its compliance with Title VI of the Civil Rights Act, which prohibits discrimination based on national origin.

Universities are required by federal law to report gifts and contracts from foreign sources that exceed $250,000 in a year. Harvard had disclosed nearly $4.5 billion in foreign funding, of which $630 million came from sources based in China - the university's largest source of foreign funding - the department said.

According to the DOJ, Harvard appears to accept funds from China-based sources that require the university to establish financial aid programs "with preference given to students from particular countries."

"Schools cannot take federal dollars and then turn around and accept money from foreign sources to give financial aid that deliberately excludes American citizens - doing so is illegal, and we will stop it wherever we find it," Harmeet K. Dhillon, assistant attorney general of the DOJ's Civil Rights Division, said in the statement.

The department said it notified Harvard of its compliance review through a notice letter but emphasized that it has not reached any conclusions about the investigation.

Dhillon said in the letter that the investigation would focus on "possible national origin discrimination" in Harvard's student aid and benefits arising from "restrictions in grants and gifts received by Harvard from foreign funding sources."

Harvard said in a statement to news outlets that it was reviewing the DOJ's notice.

"Harvard follows the law for required reporting of donations and, consistent with our legal obligations under Title VI, does not unlawfully discriminate on the basis of race, ethnicity, or national origin in allocating financial aid," the university said.

The Chinese Embassy in Washington said that education cooperation between the two nations is mutually beneficial.

The Ivy League university has been at the center of broader federal efforts to enforce anti-discrimination laws under Title VI. Last year, federal officials opened an investigation into reports that the Harvard Law Review employed "race-based criteria" for its journal membership and article selection process.

In March, the Education Department launched two probes into Harvard, one to determine whether the university used race-based preferences in its admissions process and another to investigate allegations of ongoing anti-Semitic harassment on campus due to the war in Gaza.

Harvard has made public its internal reviews addressing anti-Semitic and anti-Muslim incidents, and said it is in compliance with federal civil rights laws while working to foster an inclusive campus.

Kimberly Hayek and The Associated Press contributed to this report.

Tyler Durden Tue, 07/21/2026 - 21:45

Oklo, X-Energy Join $200 Million Federal Nuclear Push For AI: Bloomberg

Tyler Durden — Wed, 22 Jul 2026 01:20:00 +0000

Oklo, X-Energy Join $200 Million Federal Nuclear Push For AI: Bloomberg

Bloomberg reports that reactor developers Oklo and X-energy are joining a $200 million Trump administration-led program designed to speed new nuclear power plants for artificial intelligence data centers.

Details could be announced Wednesday at a Department of Energy AI energy summit. Microsoft and Nvidia are also involved in the previously announced initiative, while several DOE national laboratories and the University of Texas at Austin are slated to share $60 million over three years, according to a document seen by Bloomberg.

“Among the goals of the latest initiative are steep reductions in time needed to design, license and build new plants, as well as cuts in the number of staff needed to run them”

X-energy jumped as much as 12% after hours, while Oklo gained as much as 9.9%.

The program reportedly targets steep reductions in the time and workforce required to design, license, build and operate reactors. It would join a rapidly expanding federal nuclear support stack:

Westinghouse fleet program: At least $80 billion of aggregate project value for new AP1000 reactors, with the government arranging financing and facilitating approvals.
US-Japan partnership: Up to $40 billion of Japanese-backed investment for GE Vernova Hitachi BWRX-300 projects in Tennessee and Alabama.
Gen III+ SMRs: $800 million in cost-shared DOE awards, split between TVA’s BWRX-300 project and Holtec’s SMR-300 project.
Reactor Pilot Program: An expedited DOE authorization pathway for 11 initial projects, with developers responsible for project costs.
Advanced Reactor Demonstration Program: Roughly $3.2 billion in federal cost-share commitments for TerraPower’s Natrium and X-energy’s Xe-100 demonstrations.

Compared with those capital-heavy programs, the new $200 million effort appears aimed at a different choke point: potentially using AI, federal labs and industry partnerships to compress the paperwork and engineering timelines standing between reactor designs and power-hungry data centers.

Tyler Durden Tue, 07/21/2026 - 21:20

India Keeps Buying Russian Oil At Near-Record Pace Despite Expired Waiver

Tyler Durden — Wed, 22 Jul 2026 00:55:00 +0000

India Keeps Buying Russian Oil At Near-Record Pace Despite Expired Waiver

Authored by Tsvetana Paraskova via OilPrice.com,

India's crude oil imports have remained close to record-high levels in July despite the end of the U.S. waiver the previous month.

The U.S. quietly let the waiver allowing the purchase of Russian oil loaded on tankers expire on June 17, just as the U.S. and Iran signed the memorandum of understanding to continue negotiations on a deal.

Yet, Indian imports of Russian crude has continued to flow in July, many of which may have been cargoes that were arranged during the window covered by the U.S. waiver.

So India's imports of crude oil from Russia have averaged 2.45 million barrels per day (bpd) so far this month, according to data by Kpler cited by Indian media.

The July imports from Russia are not far off the record high level of 2.64 million bpd in June, when India boosted purchases from Russia, encouraged by the U.S. waiver that has been extended by a month a few times since March.

The Iran war and the Hormuz crisis further cemented Russia's position as the single largest crude oil supplier to India

So far in July, the United Arab Emirates (UAE) has ranked second, supplying an average of 617,000 bpd, while Saudi Arabia has been India's third largest supplier with 586,000 bpd in early July, per Kpler data.

The UAE and Saudi Arabia have workarounds to ship crude from terminals outside the Strait of Hormuz.

Saudi Arabia has redirected most of its shipments to the Yanbu export port on the Red Sea, while the UAE has relied on a pipeline to Fujairah and ship-to-ship transfers on tankers offshore Oman and the UAE east of the Strait of Hormuz.

Going forward, Russian crude will remain a key source of oil supply for India even if the U.S. doesn't renew the waiver for Russian crude already loaded on tankers, analysts say.

Tyler Durden Tue, 07/21/2026 - 20:55

Ukraine's Army Chief Latest To Fall Victim To Zelensky's Risky Reshuffle

Tyler Durden — Wed, 22 Jul 2026 00:30:00 +0000

Ukraine's Army Chief Latest To Fall Victim To Zelensky's Risky Reshuffle

Zelensky strikes again in another major military firing, amid his promised big cabinet and military 'reshuffle'.

The Ukrainian president announced Tuesday that he was dismissing Oleksandr Syrsky, commander-in-chief of country's army, and appointing joint forces commander Mykhailo Drapaty in his place. Syrsky was in the post for nearly two-and-a-half years, since February 2024.

Now former Commander-in-Chief of Ukraine’s Armed Forces, Colonel General Oleksandr Syrsky

"I have decided that the new Commander-in-Chief of the Armed Forces of Ukraine will be Mykhailo Drapaty... I am grateful to Oleksandr Syrsky and to each of our warriors for Ukraine's strong front-line positions," Zelensky unveiled in a post on Telegram.

The decision comes just days after popular 35-year old defense minister Mykhailo Fedorov was sacked, despite his reputation for orchestrating the ramped-up drone war on Russia.

And the defense chief's removal had come soon on the heels of Prime Minister Yulia Svyrydenko's surprise ousting last week, upon which Zelensky in a suggested a broader government overhaul was underway. "Ukraine is changing its political strategy," he made clear.

President Zelensky's Tuesday evening address included mention that he had offered former defense minister Mykhailo Fedorov a "decent post" to oversee the technological ⁠component of the ⁠state.

The remark of taking care of Fedorov is a clear attempt to calm masses of Ukrainians who took to the streets in a rare wartime protest over his shock removal.

Zelensky has said he is doing all of this as part of a new strategy to take the war to Russia and its territory.

"A significant path has been walked, Ukraine’s defense continues, and every soldier deserves proper respect," Zelensky said. "I am grateful to Oleksandr Syrsky and to every one of our soldiers for Ukraine’s strong front-line positions."

"Tomorrow we will formalize all decisions. Ukraine must emerge from this situation stronger, and it will become harder for Russia," he said.

The past week has witnessed some high drama within the top echelons of defense ranks, as Kyiv Post explains:

Fedorov said after his dismissal that he had pushed for Syrsky’s removal, accusing the commander-in-chief of blocking military reforms, and calling for changes in the military’s top leadership while defending his own record on robotics, drones and air defense. Under Fedorov’s tenure, Ukraine deepened its reliance on unmanned systems for dangerous frontline missions. Since January, the military has carried out more than 50,000 logistics and evacuation missions using ground robotic complexes (GRCs) in order to preserve soldiers’ lives in high-risk situations.

In a rare personal column, Syrsky broke silence and apologized to ousted Fedorov, saying he had no knowledge of their conflict before it spilled into public view. “For me, it was a surprise to learn that the minister and I had a conflict. I saw our relationship as a working one, with difficult questions and different positions” Syrsky wrote. “If I offended someone with something: Mykhailo Albertovych [Fedorov], I’m sorry. I can be tough,” he continued.

When you've lost The Economist...

Ukraine’s government is in a crisis of its own making. Firing Mykhailo Fedorov, the reformist defence minister, has galvanised street protests. Calls to push out Oleksandr Syrsky, the commander-in-chief (pictured), who feuded with Mr Fedorov, are growing. Volodymyr Zelensky must… pic.twitter.com/Hr4SUNUlwM
— The Economist (@TheEconomist) July 20, 2026

All of this raises serious questions for Ukraine's current narrative that it now has the momentum against Russia. If things are going so well, then why undergo risky and drastic leadership changes.

It could be that things are actually not going well and the nature of Ukraine's drone warfare is necessarily limited in scope. It might get media-capturing hits on Russian oil depots, but Russian forces by many accounts keep grinding forward slowly and methodically on the front lines in the east.

Tyler Durden Tue, 07/21/2026 - 20:30

Thousands Of Noncitizens Registered To Vote In New Jersey, Governor Admits

Tyler Durden — Wed, 22 Jul 2026 00:05:00 +0000

Thousands Of Noncitizens Registered To Vote In New Jersey, Governor Admits

Authored by Tom Gantert via The Epoch Times,

New Jersey Gov. Mikie Sherrill said a software error in the state's Motor Vehicle Commission system resulted in roughly 6,600 people who indicated they were not U.S. citizens being registered to vote between June 2023 and June 2024.

New Jersey Democratic gubernatorial candidate, U.S. Rep. Mikie Sherrill (D-N.J.), speaks to the media after casting her vote in Montclair, N.J., on Nov. 4, 2025. Eduardo Munoz Alvarez/Getty Images

Sherrill said in a statement that the individuals answered "no" when asked on a keypad whether they were U.S. citizens while applying for driver's licenses or identification cards, but were registered because of a software error.

According to the governor, a preliminary analysis found that fewer than 400 individuals who were newly registered because of the error voted. She said those voters were registered as Democrats, Republicans, and unaffiliated voters and were located throughout the state.

The governor said the issue occurred under the previous administration. She said she has directed her chief counsel to investigate what happened and ordered election officials to remove any residents who were erroneously added to the voter rolls during that period.

In a press conference, the governor said the error was fixed in June 2024, but she learned about it recently.

Sherrill also said the Motor Vehicle Commission administrator she appointed has begun replacing the vendor responsible for administering the system.

Sherrill said she was "appalled" by what she described as failures that allowed the error to occur and said those responsible would be held accountable.

She also accused the Trump administration of attempting to "weaponize elections for political gain."

The White House said in an email to The Epoch Times that the New Jersey error highlights the need to pass the SAVE America Act, which Republicans say is necessary to ensure election integrity.

"Democrats and their media allies have repeatedly said it is impossible for noncitizens to register to vote, let alone cast a ballot. Time and again, they have been proven wrong," White House Spokeswoman Abigail Jackson stated.

"As President [Donald] Trump has said, there is nothing more important than the integrity of our elections. And this latest incident underscores the absolute necessity of the SAVE America Act. American voters deserve to have confidence that our elections are safe and secure - President Trump will never stop fighting to make that happen and all patriotic Americans should join in his effort."

The governor said the state would continue taking steps to ensure that only eligible citizens vote and that lawful votes are counted.

This is a breaking story and will be updated.

Tyler Durden Tue, 07/21/2026 - 20:05

'I See Dead People': Treasury Blocks $99 Million In Federal Payments To Deceased Americans

Tyler Durden — Tue, 21 Jul 2026 23:40:00 +0000

'I See Dead People': Treasury Blocks $99 Million In Federal Payments To Deceased Americans

The Treasury Department announced Tuesday morning that it has successfully implemented new safeguards to prevent government payments to dead people in an effort to reduce waste and fraud.

The verification system includes screening 885 million federal payments against expanded death records, effectively auditing payments totaling nearly $2.7 trillion.

It has already flagged and stopped payments totaling roughly $99 million that had been marked to be sent to dead people.

"Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system," Treasury Secretary Scott Bessent said in a statement.

"Together with Vice President Vance’s Task Force to Eliminate Fraud, this new safeguard addresses a longstanding vulnerability and helps ensure every dollar the federal government spends reaches its intended recipient. Treasury will continue efforts to modernize the federal payment system, strengthen safeguards against fraud and improper payments, and protect taxpayer dollars."

As Jack Phillips reports for The Epoch Times, while speaking to Fox Business anchor Maria Bartiromo on July 21, Bessent said his office believes there is “up to $350 million that we can stop before the end of this year” in line with Vice President JD Vance’s anti-fraud task force that was initiated earlier this year.

“This number might be up to $500 billion, which is about 1.66 percent of GDP,“ he added, referring to potentially improper payments that could be blocked.

”So that could go a long way towards paying down the debt, providing more services. And this is just the start.”

In February, Trump signed the “Ending Improper Payments to Deceased People Act,” which authorizes the Treasury Department to access the Social Security death master file to evaluate payments.

Access was initially granted on a temporary, three-year basis through the Consolidated Appropriations Act, signed in 2021, according to the Treasury.

In March, Trump signed an order to establish the Vance-led task force to investigate the federal government’s “vast benefits system for citizens in need that includes housing, food, medical care, cash assistance, and more” while stating that some states have not implemented “basic fraud controls.”

Vance in May said that the fraud task force has located and “exposed billions of dollars in benefits that have been stolen from the American people” in two months.

He cited fraudulent payments sent out through small business loans, Medicaid reimbursements, and COVID-19-related relief programs.

In early 2025, the Elon Musk-associated Department of Government Efficiency (DOGE) was established to look into fraud, waste, and abuse across the federal government. DOGE recently announced that its mandate ended on July 4.

At one point, DOGE staffers were investigating Social Security payments and records for possible fraud. DOGE’s access was the subject of numerous lawsuits before the Supreme Court ruled in DOGE’s favor last summer. The task force in May 2025 said it performed a “major cleanup” of the agency’s records, finding that 12.3 million people in the system were marked as “deceased.”

The Treasury Department did not immediately respond to an Epoch Times request on Tuesday for additional comment on the figures that Bessent provided.

Bessent added in a statement that the department will “continue efforts to modernize the federal payment system, strengthen safeguards against fraud and improper payments, and protect taxpayer dollars.”

Tyler Durden Tue, 07/21/2026 - 19:40

"Who The F**k Is This?": Jon Stewart Thinks He Discovered Trump's Body Double

Tyler Durden — Tue, 21 Jul 2026 23:15:00 +0000

"Who The F**k Is This?": Jon Stewart Thinks He Discovered Trump's Body Double

Authored by Steve Watson via Modernity News,

Jon Stewart spent a chunk of Monday's Daily Show convinced America had just unlocked a secret presidential spare after spotting a mysterious figure strolling behind President Donald Trump on the tarmac at Joint Base Andrews.

The late-night comic was already deep into his usual routine of roasting Trump when he focused on the appearance of someone who resembled the President in the background of the Trump's gaggle with reporters.

Stewart had been needling Trump for lingering onstage during Spain's trophy celebration after their 1-0 win over Argentina, calling him "Cankles Muldoon" and asking, "What the f*ck are you doing on the stage? It's for the players!"

"Is that a backup Trump?!" — Jon Stewart shocked by what is going on in the background during Trump's interview pic.twitter.com/eeici9NQfL
— HatsOff (@HatsOffff) July 21, 2026

He then played the clip of Trump telling reporters the tournament was "four times greater than any FIFA ever held," before the president upgraded the claim: "That is probably about five times actually, they're telling me today."

Stewart's response: "How do you hold 'a FIFA'? How could our FIFA be four times greater than any other FIFA? ... Is that what they told you? You know, they're telling you that because everyone around you lies to you because you're a little baby."

Then the host slammed on the brakes.

"What's up with the guy behind Trump? Can we see that again? Can you bring that out? Who the fuck is this guy? Who the fuck is this? Is this... What? Who in the world is it? Oh my God! Is that a back-up Trump? Is that - Wait a minute, wait. Hold on a second."

He kept going, fully committed: "Wait, what? Wait, Who? What? Is that a back-up Trump or is that Trump? Wait, is the one we've been dealing with back-up Trump or is that Trump?!"

The resemblance was close enough that Stewart's brain briefly short-circuited. The man walking the tarmac had the same build, the same hair energy, the same general aura of someone who could probably get away with signing an executive order if no one looked too closely.

Spoiler: it wasn't a body double. It was Viktor Knavs, Melania Trump's 82-year-old father and the president's father-in-law. The Slovenian businessman has been a quiet but regular presence around the Trump family for years, and the two men have always shared a certain physical similarity that becomes especially obvious when one of them is casually strolling into frame behind the other.

President Donald Trump and Viktor Knavs, father of First Lady Melania Trump, walk off Marine One on the south lawn of the White House pic.twitter.com/MZmrHu4oxc
— FLOTUS Report (@MELANIAJTRUMP) May 5, 2025

Still, Stewart's "backup Trump" theory is too good to fully discard.

Given the number of threats and actual assassination attempts this president has already survived, having a ready-made spare on the payroll doesn't sound like the worst idea in the world.

Full Stewart video below:

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Tue, 07/21/2026 - 19:15

"Safeguard Our Homeland": FCC Moves To Ban Foreign Military-Grade Drone Imports

Tyler Durden — Tue, 21 Jul 2026 22:50:00 +0000

"Safeguard Our Homeland": FCC Moves To Ban Foreign Military-Grade Drone Imports

A little more than a week after we exposed military-grade interceptor drones being openly marketed on Facebook as dual-use technology by a Hong Kong-based company, FCC Chairman Brendan Carr announced a proposal to prohibit the importation and sale of foreign-produced military-grade drones in the U.S.

"Today, the FCC took additional action to safeguard our homeland. We have proposed banning the sale of foreign, military-grade drones, including those capable of swarming," Carr wrote on X, adding, "Another step to strengthening and securing America's drone supply chain."

Today, the FCC took additional action to safeguard our homeland.

We have proposed banning the sale of foreign, military-grade drones—including those capable of swarming.

Another step to strengthening and securing America’s drone supply chain. pic.twitter.com/XZWGSKZF5G
— Brendan Carr (@BrendanCarrFCC) July 21, 2026

Carr published a public notice in which the FCC is seeking comments on a proposal to prohibit the continued importation and sale of previously authorized foreign-made military-grade drones and critical components to buyers outside the U.S. government, including systems with swarming capabilities.

The notice stated that these dual-use drones "pose an unacceptable risk to the national security of the United States or the security and safety of United States persons"…

Our July 13 report, titled "Why Is China Advertising Insane War Drones on Facebook", turned some heads when we showed readers just how easy it was to acquire interceptor drones from China.

The Hong Kong seller we spoke to provided a pricing sheet within minutes...

Earlier today, Joint Chiefs of Staff Chairman Gen. Dan Caine warned during a Senate hearing about the dangerous new world in which these low-cost drones are proliferating.

Gen. John D. Caine warns enemies are gaining dangerous new capabilities through cheap, widely available drone tech.

He says the battlefield now stretches from the seabed to space, and America must be ready to fight everywhere at once.

Watch OAN on OAN Live for updates. pic.twitter.com/YCdBhcU84i
— One America News (@OANN) July 21, 2026

The federal government knows a domestic drone incident involving a threat actor as a question of when, not if. That view is accelerating the race to harden US airspace around military installations, critical infrastructure, mass gatherings and other high-value targets.

Tyler Durden Tue, 07/21/2026 - 18:50

Cuban President Warns "McCarthyism Is Back" As US Begins Fight Against Marxist Subversion Networks

Tyler Durden — Tue, 21 Jul 2026 22:00:00 +0000

Cuban President Warns "McCarthyism Is Back" As US Begins Fight Against Marxist Subversion Networks

One day after the US government convened delegations from 65 countries at the Harry S Truman Building in Washington to coordinate action against far-left extremism and Marxist subversion networks across the West, Cuban President Miguel Díaz-Canel responded sharply in a post on X, signaling grave concern that the Trump administration intends to unleash a new era of McCarthyism to combat the "radical left."

"A new and more dangerous version of McCarthyism is back in the United States," Díaz-Canel wrote on X one day after Secretary of State Marco Rubio, White House Deputy Chief of Staff Stephen Miller, and Treasury Secretary Scott Bessent postured and essentially declared war on the radical left, Marxist groups, and foreign subversion networks.

Díaz-Canel visiting the grave of Karl Marx

Why would Díaz-Canel care about Rubio and Bessent combating the far-left NGOs on US soil?

Well, as a State Department report released on Monday showed, "For more than six decades, the Cuban regime has been the leading sponsor of radical leftism and Third Worldism in the United States."

For more than six decades, the Cuban regime has been the leading sponsor of radical leftism and Third Worldism in the United States.

The State Department is exposing the full history of Cuban espionage and subversion in our country.

The American people deserve to know.…
— Secretary Marco Rubio (@SecRubio) July 20, 2026

We explained in December how Cuba's subversion networks are run, and at the center of the influence network is the now-sanctioned Cuban Institute of Friendship with Peoples, known as ICAP. The organization claims more than 2,000 affiliated solidarity groups across 150 countries.

Former Cuban intelligence agents cited in the State Department report allege that roughly 90% of ICAP personnel are connected to Cuban intelligence operations. So this basically means ICAP functions as the intake valve for the National Network on Cuba (NNOC), a deliberately loose coalition that links 77 left-wing activist organizations, nonprofits, and campaigns while minimizing legal exposure and clear command structures.

Notice that the Democratic Socialists of America are members of NNOC. Also, it is worth noting that the DSA has said they are "partners" of sanctioned ICAP.

It now makes sense why the DSA wants to "destroy America from within"... Cuban communists feel the same way.

Díaz-Canel sees US pressure tightening around Havana as a wake-up call for him and his communist partners. The era of far-left activists and US political leaders participating in workshops with Cuban communist organizations appears to have come to an abrupt end.

The Trump administration's campaign to dismantle foreign-backed influence and subversion networks linked to Cuba and China could significantly weaken Havana's ability to shape radical movements across the American left. With elements of the DSA embracing revolutionary rhetoric that even establishment Democrats have rejected, the effort to expose and disrupt Marxist networks could develop into a rare bipartisan national-security initiative. We suspect that's already underway.

Democrats have become so radical that now lefty Bill Maher is contemplating a vote for JD Vance.

Tyler Durden Tue, 07/21/2026 - 18:00

This Sex Robot Is Going To 'Teach' Your Kids In Schools

Tyler Durden — Tue, 21 Jul 2026 21:40:00 +0000

This Sex Robot Is Going To 'Teach' Your Kids In Schools

Authored by Steve Watson via Modernity News,

A rural New York school district on the Seneca Nation reservation is set to become one of the first in the United States to place a lifelike humanoid robot in front of high school students.

Starting this fall, Salamanca High School will introduce "Sally," an M-Series robot built by Realbotix, to assist in coding, robotics, and AI classes for 11th and 12th graders.

Sally comes with brown hair, silicone skin, a Western New York accent, upper-body movement, and facial expressions. She remains seated and cannot walk the room. Students will log in with unique identification codes so the machine can recognize them and pick up previous interactions.

New York school district to become one of the first in the United States to introduce a humanoid robot in the classroom.

'Sally' will have a Western New York accent and will teach 11th and 12th-grade students at Salamanca High School.

Sally costs less than the average teacher's... pic.twitter.com/gYqAL19QK0
— Collin Rugg (@CollinRugg) July 19, 2026

The full package - robot plus the accompanying Optio AI tutor platform - cost the district $57,590, a discounted figure below the average New York teacher salary and well under the company's listed starting price near $95,000.

"The Realbotix educational robot will never replace teachers, staff members, or meaningful human interaction," the Salamanca City Central School District stated. Instead, they describe it as an instructional tool loaded only with district-approved curriculum, historical information about Salamanca, and content designed to encourage critical thinking rather than simply spit out answers.

The system reportedly operates offline with no internet connection, collects no personally identifiable information, records neither video nor audio, and transmits nothing back to the company. If asked something outside its knowledge base, it is programmed to reply "I don't know."

NY school to introduce first humanoid robot in US classroom – and vows 'Sally' will never replace teachers https://t.co/WZ7LTsbWZF pic.twitter.com/9nP3aiSieH
— New York Post (@nypost) July 18, 2026

Realbotix CEO Andrew Kiguel called the deployment "a landmark moment for both AI and humanoid robotics." He added: "We are moving beyond lab demonstrations and pilots to deliver real, embodied AI directly into classrooms, supporting teachers, engaging students, and proving that advanced robotics can thrive in live educational environments. Salamanca marks the beginning of a new era where humanoid robots and intelligent AI assistants become standard tools in STEM education."

Superintendent Dr. Mark Beehler expressed enthusiasm for giving students "a safe, Salamanca-specific AI tutor" and educators customized tools. The pilot begins with students in the district's Woz ED AI and Robotics pathway - curriculum inspired by Apple co-founder Steve Wozniak - and could expand to roughly 500 high school students if deemed successful.

Students will also interact with digital avatars of the robot on laptops for after-hours tutoring, homework help, and support in multiple languages.

The company behind Sally has a more colorful history. Realbotix previously acquired the parent firm of RealDoll, the well-known manufacturer of hyper-realistic sex dolls and companion robots. Officials stress that the education division operates separately in staff, facilities, and technology, with a planned ownership separation, yet the connection has not gone unnoticed.

https://t.co/RqrC6Fnbx0
— Q???.???? (@qaggnews) July 19, 2026

Reactions on X captured the skepticism. One popular reply asked bluntly, "Why does the robot have lip injections?" Another observed the contradiction in officials promising robots will never replace teachers while simultaneously noting the machine costs less than a human educator.

Why does the robot have lip injections?
— JoshHoldsCourt (@JoshHoldsCourt) July 19, 2026

But why does she have to look like a porn star? Why not more like this? A more mom-like figure? pic.twitter.com/EiUdCkuJtM
— K J Gillenwater (@kjgillenwater) July 19, 2026

Why do they have such botox poofy lips? lol pic.twitter.com/gCrBsvNaGj
— Done With Democrats (@DoneWDemocrats) July 20, 2026

They purchased the robot from a sex robot company.

And are now putting it with children.

I'm not kidding. Look it up.
— DavidHasbun (@TheDavidHasbun) July 19, 2026

Critics pointed to the company's adult-product roots and questioned the wisdom of placing such technology in front of teenagers in an economically challenged community. Homeschool advocates seized on the moment to argue that parents should simply keep their children out of systems experimenting with this level of automation.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Tue, 07/21/2026 - 17:40

Democrats Are Fighting A Civil War, And Bernie Sanders Started It

Tyler Durden — Tue, 21 Jul 2026 21:20:00 +0000

Democrats Are Fighting A Civil War, And Bernie Sanders Started It

Democrats desperately want to retake the House in November, not just to thwart President Donald Trump's legislative agenda, but to launch countless investigations under the guise of oversight. However, their most stubborn obstacle to achieving this goal isn't President Trump or the Republican Party. The biggest obstacle actually sits inside their own party. Sen. Bernie Sanders (I-Vt.) has spent this cycle bankrolling primary challengers against sitting Democrats, and the fight has split the party into two camps that can barely stand each other.

Sanders recently announced plans to defeat a sitting House Democrat from North Carolina who belongs to the Congressional Black Caucus. House Democratic leader Hakeem Jeffries called Sanders personally to warn him off interfering in House primaries during a midterm year that could decide control of Congress, CNN reported, citing three Democrats familiar with the previously unreported call. Rep. Greg Meeks (D-N.Y.) sat in on that call and told the outlet that Sanders showed little concern about the warning. The call came just before Rep. Valerie Foushee defeated primary challenger Nida Allam in North Carolina in March. Jeffries later declined to describe the exchange beyond calling it honest.

Sanders sits at the height of his influence in Democratic politics right now, which makes the timing of this civil war particularly inconvenient for a party trying to project unity heading into the fall. The dispute comes down to a simple question: should Democrats run candidates who can actually win swing districts, or candidates who fire up the base and risk losing everyone else? Sanders has chosen one side, and the establishment the other. He has endorsed more than 90 candidates this cycle and helped topple House incumbents in New York City and Colorado. Of the 60 Sanders-backed candidates whose races have concluded, 42 have won, including 10 of 16 federal candidates. Senior Washington Democrats grumble that Sanders is forcing the party to burn money on internal fights instead of saving it for Republicans in November.

Then there's Graham Platner, the Maine Senate candidate Sanders backed and defended even after the New York Times reported allegations of abusive behavior toward women. Sanders kept defending him until after allegations of rape surfaced, which Platner has denied. Sanders withdrew his endorsement only then.

Platner's exit from the race, according to OpenSecrets, put the Democratic Party in a deep financial hole. Platner can't simply transfer his campaign funds to his replacement, and whoever takes his place will ultimately have to overcome a huge cash disadvantage compared to Sen. Susan Collins.

"Bernie has endorsed some flawed candidates recently," Rep. Hillary Scholten of Michigan said. "I think it's really important to look at the judgment that has been exercised. The Graham Platner situation should be a huge warning sign to a lot of voters about what that stamp of approval might mean."

Michigan is where this rift boiled over this weekend, as Sanders held rallies - joined by Rep. Alexandria Ocasio-Cortez - for Senate candidate Abdul El-Sayed and House candidate William Lawrence. Asked whether he's making it harder for Democrats to win in November, the 84-year-old Sanders said no and argued his candidates represent working people rather than wealthy donors. El-Sayed's support for Medicare for All and his criticism of Israel and AIPAC have made him a progressive favorite. At the same time, the party establishment favors Rep. Haley Stevens as the safer bet against likely GOP nominee former Rep. Mike Rogers. Retiring Sen. Gary Peters had planned to stay neutral in the August 4 primary but endorsed Stevens last week instead.

Senate Minority Leader Chuck Schumer has made his preference for Stevens clear. However, he avoided direct criticism of Sanders when asked, saying Democrats would settle on a nominee suited to the state. Rep. Ro Khanna compared Sanders' standing in the party to that of the pope and Barack Obama. Rep. Josh Gottheimer sees something else entirely.

"The DSA, which Bernie's part of, is trying to hijack the Democratic Party, and what you're seeing is people don't want that," Gottheimer said. "The Democratic Party wants to be the Democratic Party, and he's trying to use the Democratic Party as a vessel for socialism, and people don't want socialism."

Lawrence, a 35-year-old democratic socialist and climate activist, brings his own headache. Jeffries and Meeks condemned remarks reported by the Huffington Post in which Lawrence said black political leaders "take the teeth out of the white left" - language Jeffries called deeply disturbing - and party leaders worry a Lawrence win could cost them a must-win Lansing-area seat held by Republican Rep. Tom Barrett. Lawrence apologized on CNN, saying the comments misrepresented his values. The Congressional Black Caucus's political arm is funding ads against him, and Sen. Elissa Slotkin broke her usual neutrality to back former Navy SEAL Matt Maasdam, one of Lawrence's two rivals in the three-way primary along with former U.S. ambassador to Ukraine Bridget Brink. Even Ocasio-Cortez, scheduled to appear at the same Sunday stop, would not say whether she was comfortable campaigning alongside him: "I haven't endorsed in it. I haven't waded into it at all."

Tyler Durden Tue, 07/21/2026 - 17:20