Authored by Michael Snyder via The Economic Collapse,
Americans were not even this stressed about their financial situations during the Great Recession. As you will see below, a brand new Gallup survey has discovered that 55 percent of Americans believe that their finances are getting worse. That is higher than any reading that Gallup recorded during the recession of 2008 and 2009, and it is higher than any reading that Gallup recorded during the pandemic. But of course this shouldn’t exactly be a surprise to any of us. We have been in a historic cost of living crisis since 2020, and our standard of living has been steadily deteriorating as the purchasing power of our money has gone down.
If you are making the same amount of money as you did at the beginning of this decade, you are in far worse shape financially today.
That is just the reality of the time that we are living in.
The cost of just about everything has been going up and up and up.
As a result, people are more concerned about the economy than anything else.
According to Gallup, the percentage of Americans that believe that their finances are getting worse has been rising for five years in a row and is now at the highest level ever recorded…
Americans’ financial outlook in 2026 is also historically poor, with a record 55% now saying their financial situation is getting worse. While similar to last year’s 53%, this is up from 47% in 2024 and marks the fifth consecutive year more Americans say their finances are worsening rather than improving.
The only similar multiyear period when the larger share felt their financial situation was worsening was during the Great Recession.
At this stage, there is no denying the trend that we are witnessing.
Gallup found that Americans are particularly concerned about monthly bills, healthcare and retirement…
Majorities worry about not having enough money for retirement (62%) and being unable to cover medical costs in the event of a serious accident or illness (60%). Slightly smaller majorities (54% each) worry about their investment returns and maintaining their standard of living.
Nearly half are concerned about routine healthcare costs (48%), while 41% worry about paying their normal monthly bills and 40% about affording college. Fewer worry about housing costs (35%) or making minimum credit card payments (28%).
Living paycheck to paycheck is not fun at all.
Many of you know exactly what I am talking about.
Today, much of the country is just one major setback away from financial ruin…
According to a recent national survey, a little over $6,000 in additional debt is all it takes to push a family over the edge. Six thousand dollars. The cost of a half-decent secondhand car. A modest kitchen renovation. In the country that put a man on the moon, mapped the human genome, won two world wars, and produces more billionaires per capita than anywhere on earth, that’s the cliff edge.
The old vocabulary no longer fits. The conservative catechism of thrift, discipline, and delayed gratification has aged poorly in light of the evidence. Tariffs, as the survey notes, rippled through supply chains and left a sizeable dent in consumers’ pockets. Health care waits in the background, capable of dismantling a decade of careful saving with a single bad diagnosis. American households have always lived under financial pressure. The difference now is the direction — or rather, the directions. It is coming from everywhere at once, which is what makes it almost impossible to outrun.
The middle class is being systematically eviscerated all around us.
It is a national crisis that just keeps intensifying year after year.
As finances have gotten tighter and tighter, millions upon millions of Americans have fundamentally changed their behavior…
The response has been behavioral rather than political, which is another way of saying people have given up waiting for someone to fix it. Nights out get canceled. Rent falls behind. Medical appointments get postponed and rarely rescheduled. None of this is irrational. When survival takes priority, everything else enters a waiting room with no clear appointment time. What makes it particularly disturbing is that financial distress doesn’t stay financial. It moves through relationships and communities, rearranging what people believe is possible for themselves.
Some will call it hyperbolic to suggest the American Dream is dead. Perhaps. But a dream balanced on a six-thousand-dollar ledge, in a stiff wind, is not exactly thriving. With energy prices soaring and the probability of a recession climbing with every new data release, the wind is picking up.
What about you?
Have you found yourself changing your spending behavior in recent years in an attempt to save money?
If so, there are countless others that are in the exact same shoes.
Unfortunately, the outlook for the months ahead is not promising at all.
On Tuesday, the average price of a gallon of gasoline in the United States rose to the highest level that we have seen since the war with Iran began…
Gas prices climbed Tuesday to their highest level since the Iran conflict began.
The national average for a gallon of regular hit $4.18, up 15 cents from a week earlier and about $1 higher than a year ago, according to AAA.
As energy prices rise, it is going to affect the cost of everything else too.
Meanwhile, the government just continues to tax us into oblivion.
As I have detailed in other articles, each year Americans are hit with literally dozens of different taxes and fees.
When you add all of them together, some Americans end up paying more than 50 percent of their incomes in taxes and fees.
In fact, Bill Maher is claiming that he pays about 60 percent of his income in taxes and fees…
Even for liberal HBO host Bill Maher, the math behind Tax Day no longer adds up.
Maher took to his platform on “Real Time” to sound the alarm on a staggering personal tax burden that he says claims the majority of his earnings, sparking a wider debate on whether the American government is simply “incompetent and corrupt” despite a $5 trillion revenue stream.
“Last week was Tax Day… I paid to the government, if you add in state tax, local, sales, property, fees, Obamacare, probably almost 60% of what I earn. That’s a lot,” Maher said on a recent episode.
If you have to hand over more than half of what you earn to the government, you are no longer living in a capitalist system.
Some people out there don’t seem to have figured that out yet.
In this environment, you should be thankful if you still have an income coming in, because we continue to see mass layoffs all over the nation.
For example, Nike just announced yet another round of layoffs…
Nike announced a new round of layoffs Thursday affecting approximately 1,400 employees across the organization, mostly concentrated in its technology department.
In a note from COO Venkatesh Alagirisamy, the company said the layoffs were part of Nike’s broader “Win Now” turnaround strategy aiming to reshape its technology team, modernize its Air manufacturing, move some of its Converse Footwear operations and integrate its materials supply chain work into its footwear and apparel supply chain teams.
Our economy is coming apart at the seams all around us.
And now the crisis in the Middle East threatens to plunge the entire global system into an extended downturn.
We really are facing a nightmare scenario, and it won’t be too long before that is completely and utterly obvious to everyone.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
Tyler Durden Mon, 05/04/2026 - 04:15Authored by Felicity Bradstock via oilprice.com,
Following the Russian invasion of Ukraine in 2022, several major world powers introduced strict sanctions on trade with Moscow. Europe and the United States have been gradually decreasing their dependence on Russian gas and other energy products and putting pressure on other countries to do the same, to place a financial strain on Moscow, as the war with Ukraine continues. However, some countries, such as India and China, have used these sanctions as an excuse to buy discounted crude and gas from Russia, in a bid to reduce costs and boost energy security.
Imports of Russian crude to China and India have increased significantly since 2022. In 2024, China bought a record of more than 100 million tonnes of Russian oil, which contributed nearly 20 percent of its energy imports. Meanwhile, India spent an estimated $140 billion on Russian energy imports. Over the last year, both Asian countries deepened their ties with Moscow following the imposition of high tariffs on imports by the United States.
Although several countries have decreased their dependence on Russian energy since the invasion of Ukraine, shifting dependence to alternative energy sources, some have been forced to turn back to Russia in the wake of the “largest oil disruption in history”. Even the United States, the main advocate for the imposition of strict sanctions on Russian energy, appears to have changed its tune in recent weeks.
On 16th April, the U.S. Treasury Department extended a sanctions exemption on the sale of some Russian crude, which is expected to be in effect until May 16. This follows a previous sanctions waiver on Russia, which expired on April 11. The move by the Trump administration to ease sanctions is in response to the strain placed on the global energy market following the U.S.-Israeli attack on Iran in February and subsequent closure of the Strait of Hormuz.
The move is expected to decrease the cost of oil as countries are permitted to legally purchase hundreds of millions of barrels of crude from Russia. A spokeswoman from the U.S. Treasury said: “As negotiations accelerate, Treasury wants to ensure all oil is available to those who need it.”
In recent weeks, it has remained unclear if the Strait of Hormuz will be fully opened again or whether it will remain under threat of attack. On April 10th, Iran reopened the Strait to all commercial ships before closing it once again less than 24 hours later, citing the ongoing U.S. blockade on Iranian ports as the cause.
As the trade outlook in the Middle East remains uncertain, Russian sales of crude to India are expected to remain near record highs in April and May, largely owing to the latest U.S. sanctions waiver. The finances earned from the sale of Russian oil could help Moscow fund its military spending for the war in Ukraine.
India shipped around 2.25 million bpd of Russian crude in March, marking an increase of almost 100 percent compared to February volumes. Russian crude arrivals in Indian ports were expected to reach 2.1 million bpd for the week of April 20 to 27, an increase from 1.67 million bpd the previous week.
The ongoing disruption in the Strait of Hormuz has led India and China to compete for global oil supplies, mainly from Russia, as well as Saudi Arabia. “The competition for Russian crude between India and China has been intense and will continue to be so for June-loading cargoes,” a senior analyst at Kpler, Muyu Xu, told CNBC. “The de facto closure of the Strait of Hormuz is prompting Asian countries to seek cheap crude that is readily available, and Russian crude falls into this category,” added Xu.
Before the War in Iran, China was importing vast quantities of Iranian crude. However, the conflict has caused major disruptions to energy trade as well as led to the destruction of energy infrastructure across the Middle East. This has led China to rely more heavily on Russia for its oil supplies.
It is not just China and India that are turning to Russian energy, as, in April, Indonesia announced plans to buy up to 150 million barrels of oil from Russia. Roughly 20 to 25 percent of Indonesia’s oil imports typically come from the Middle East and traverse the Strait of Hormuz. “Indonesia has now secured a commitment from the Russian government. We can store 150 million barrels in Indonesia to address economic volatility issues,” the Antara state news agency quoted President Prabowo Subianto’s brother Hashim as saying.
The ongoing Middle East conflict continues to drive up energy prices due to the severe energy trade disruptions, caused largely by the closure of the Strait of Hormuz. This has led many governments to seek alternative energy sources to ensure their energy security for the coming months. The temporary waiver for sanctions on the import of Russian energy is expected to drive up oil and gas trade significantly in the coming months, which could result in more money being channelled into Russia’s war efforts in Ukraine – the exact thing that the United States and Europe were originally trying to avoid by introducing sanctions.
Tyler Durden Mon, 05/04/2026 - 03:30In a story which hearkens back to bygone Cold War years, fresh reports say that Chinese hackers breached and spied on the American Embassy in Cuba at a moment President Trump threatened a US naval blockade, similar to what was in place just before the overthrow by US military intervention of Venezuela's Nicolás Maduro
According to the findings from the cyber firm Gambit Security, cited in a Bloomberg report, "The campaign began in January and compromised the emails of 68 officials, including the Cuban ambassador and the deputy chief of mission, researchers said."
via ReutersAdditionally, "The breach coincided with a period of intense geopolitical friction, occurring shortly after a U.S. raid in Venezuela and roughly coincided with a decision by U.S. President Donald Trump's administration to halt oil deliveries to Cuba, contributing to widespread blackouts across the country."
The report concluded that "The intruders bypassed embassy security by exploiting two 5-year-old vulnerabilities in outdated Microsoft Exchange email servers, according to the Gambit findings. Once inside, attackers downloaded entire inboxes belonging to political and intelligence officials."
The serious breach highlights the trend of cyberespionage still going hand in hand with fast moving geopolitical events and 'shadow wars' between great power rivals. Russia has also been accused of covert dealings in its longtime Caribbean outpost which lies just about 90 miles off Florida's southern coast.
China's aggressive push into Cuba has been sounding alarm bells since the Trump administration took power, with fears of covert surveillance operations targeting the United States, which also the establishment D.C. think tank Center for Strategic and International Studies (CSIS) has been highlighting. The fresh Bloomberg reporting seems to confirm this.
"The CCP’s poisonous alliance with Cuba has posed significant threats to US national security for decades," House Intellience Committee Chairman Rick Crawford (R-AK) told the media last year.
"Their alleged involvement in signals intelligence hubs in Cuba is outward, unconcealed adversarial behavior against the U.S. The CCP's actions are becoming increasingly more bold and thereby detrimental to Western Hemisphere security," he added.
🚨🇨🇳 China calls on US to lift blockade against Cuba
“China will strongly support Cuba in defending its state sovereignty and security,” Chinese Foreign Ministry spokesman Lin Jian stated
Earlier this year, the US tightened its longstanding embargo on Cuba, focusing on a… pic.twitter.com/W7qTBrIq1n
But from Beijing and Russia's perspectives, it remains simply that the United States continues as the biggest purveyor of covert ops, cyberespionage, and covert soft power initiatives and color revolutions the world over. Pro-Beijing pundits would likely rationalize that China too must become more adept with its cyberespionage if it hopes to protect its national interests abroad. But Washington would in turn accuse China of being the most guilty of these attacks.
Tyler Durden Mon, 05/04/2026 - 02:45Authored by Thomas Brooke via ReMix,
An Iraqi father accused of beating, imprisoning, and threatening to kill his daughter after she refused an arranged marriage has been arrested in Sweden on a European warrant issued by Italian authorities.
The 52-year-old man was tracked down by Taranto State Police after the authorities in southern Italy opened an investigation into domestic abuse and forced marriage following a complaint from the young woman last November.
As reported by Il Giornale, prosecutors say the victim told officers her father had demanded she marry a Kurdish man selected by him and had threatened her with death if she resisted or tried to flee abroad.
The woman had traveled from Iraq to join her family in Taranto, but investigators say she soon found herself trapped in what police described as a family campaign to force her into submission.
According to the allegations, her relatives sided with her father because they believed she wanted to live in a way that was too “Western” and incompatible with their cultural expectations.
When she refused to obey, her father allegedly held her captive inside an apartment in the southern Italian city and subjected her to violence that left her with injuries requiring 15 days to recover.
Police also believe the pressure became so severe that the young woman was forced to give up work and began a life of isolation, fuelled by fear over her safety.
The young woman gave evidence under protected arrangements before being moved to a secure facility, where she remains.
Investigators later discovered the father had left Italy for Sweden. Swedish authorities arrested him on the European warrant issued after a precautionary detention order by a judge in Taranto.
The case is the latest in a string of forced marriage scandals across Europe involving migrant families accused of using threats, violence, and isolation to control young women who refuse marriages arranged by relatives.
An Iraqi father accused of beating, imprisoning, and threatening to kill his daughter after she refused an arranged marriage has been arrested in Sweden on a European warrant issued by Italian authorities.
The 52-year-old man was tracked down by Taranto State Police after the authorities in southern Italy opened an investigation into domestic abuse and forced marriage following a complaint from the young woman last November.
As reported by Il Giornale, prosecutors say the victim told officers her father had demanded she marry a Kurdish man selected by him and had threatened her with death if she resisted or tried to flee abroad.
The woman had traveled from Iraq to join her family in Taranto, but investigators say she soon found herself trapped in what police described as a family campaign to force her into submission.
According to the allegations, her relatives sided with her father because they believed she wanted to live in a way that was too “Western” and incompatible with their cultural expectations.
When she refused to obey, her father allegedly held her captive inside an apartment in the southern Italian city and subjected her to violence that left her with injuries requiring 15 days to recover.
Police also believe the pressure became so severe that the young woman was forced to give up work and began a life of isolation, fuelled by fear over her safety.
The young woman gave evidence under protected arrangements before being moved to a secure facility, where she remains.
Investigators later discovered the father had left Italy for Sweden. Swedish authorities arrested him on the European warrant issued after a precautionary detention order by a judge in Taranto.
The case is the latest in a string of forced marriage scandals across Europe involving migrant families accused of using threats, violence, and isolation to control young women who refuse marriages arranged by relatives.
In October last year, a Bangladeshi couple living in Rimini was placed under house arrest after prosecutors accused them of forcing their daughter into marriage in Bangladesh and subjecting her to threats, abuse, and drugs intended to induce pregnancy.
The 20-year-old woman was taken into protective custody after allegedly being tricked into traveling to Bangladesh under the false pretense of visiting a sick relative.
Once there, prosecutors say, her parents confiscated her documents and forced her to marry a wealthy man more than 20 years older than her. The wedding was held on Dec. 17, 2024.
Italian investigators allege she was threatened and abused before and after the ceremony. She was also reportedly given medication intended to promote pregnancy and sedatives to reduce her resistance to sex with her husband.
The young woman secretly began taking contraceptives and eventually managed to contact a health center in Rimini through Instagram, triggering contact with Italian authorities. She later convinced her mother to bring her back to Italy by claiming she would feel “more at peace” and ready to have children if she returned.
Forced marriage fears have also escalated in Germany, where Berlin authorities warned last summer that the school holidays are a danger period for young people being taken abroad and married against their will.
Women’s rights advocate Seyran Ates warned that the problem was growing amid mass immigration and the spread of parallel communities.
“I fear the numbers will continue to rise,” she told German broadcaster RBB, as cited by Junge Freiheit.
“In Germany, we speak of a parallel society of the Muslim community,” she said, adding that forced marriage is a tool used by “archaic patriarchal societies” to enforce religious norms and control female sexuality.
Berlin’s Neukolln district also sounded the alarm, warning that young people could be taken out of the country during the holidays to be married in their parents’ country of origin, often with no clear way back.
“Most of the affected girls and boys grew up in Germany,” the district office said.
District Mayor Martin Hikel said, “Forced and early marriages are human rights violations that we do not tolerate. But, we know that they are a reality for Neukolln’s young people.”
🇬🇷 "There were 40-year-olds in facilities for unaccompanied minors, drug trafficking, and the relatives of a 15-year-old girl organized her stoning because she resisted a forced marriage."
Greek minister Eirini Agapidaki recalls the horrors that unfolded at the Moria migrant… pic.twitter.com/Pp1qC76e0M
An Iraqi father accused of beating, imprisoning, and threatening to kill his daughter after she refused an arranged marriage has been arrested in Sweden on a European warrant issued by Italian authorities.
The 52-year-old man was tracked down by Taranto State Police after the authorities in southern Italy opened an investigation into domestic abuse and forced marriage following a complaint from the young woman last November.
As reported by Il Giornale, prosecutors say the victim told officers her father had demanded she marry a Kurdish man selected by him and had threatened her with death if she resisted or tried to flee abroad.
The woman had traveled from Iraq to join her family in Taranto, but investigators say she soon found herself trapped in what police described as a family campaign to force her into submission.
According to the allegations, her relatives sided with her father because they believed she wanted to live in a way that was too “Western” and incompatible with their cultural expectations.
When she refused to obey, her father allegedly held her captive inside an apartment in the southern Italian city and subjected her to violence that left her with injuries requiring 15 days to recover.
Police also believe the pressure became so severe that the young woman was forced to give up work and began a life of isolation, fuelled by fear over her safety.
The young woman gave evidence under protected arrangements before being moved to a secure facility, where she remains.
Investigators later discovered the father had left Italy for Sweden. Swedish authorities arrested him on the European warrant issued after a precautionary detention order by a judge in Taranto.
The case is the latest in a string of forced marriage scandals across Europe involving migrant families accused of using threats, violence, and isolation to control young women who refuse marriages arranged by relatives.
In October last year, a Bangladeshi couple living in Rimini was placed under house arrest after prosecutors accused them of forcing their daughter into marriage in Bangladesh and subjecting her to threats, abuse, and drugs intended to induce pregnancy.
The 20-year-old woman was taken into protective custody after allegedly being tricked into traveling to Bangladesh under the false pretense of visiting a sick relative.
Once there, prosecutors say, her parents confiscated her documents and forced her to marry a wealthy man more than 20 years older than her. The wedding was held on Dec. 17, 2024.
Italian investigators allege she was threatened and abused before and after the ceremony. She was also reportedly given medication intended to promote pregnancy and sedatives to reduce her resistance to sex with her husband.
The young woman secretly began taking contraceptives and eventually managed to contact a health center in Rimini through Instagram, triggering contact with Italian authorities. She later convinced her mother to bring her back to Italy by claiming she would feel “more at peace” and ready to have children if she returned.
Forced marriage fears have also escalated in Germany, where Berlin authorities warned last summer that the school holidays are a danger period for young people being taken abroad and married against their will.
Women’s rights advocate Seyran Ates warned that the problem was growing amid mass immigration and the spread of parallel communities.
“I fear the numbers will continue to rise,” she told German broadcaster RBB, as cited by Junge Freiheit.
“In Germany, we speak of a parallel society of the Muslim community,” she said, adding that forced marriage is a tool used by “archaic patriarchal societies” to enforce religious norms and control female sexuality.
Berlin’s Neukolln district also sounded the alarm, warning that young people could be taken out of the country during the holidays to be married in their parents’ country of origin, often with no clear way back.
“Most of the affected girls and boys grew up in Germany,” the district office said.
District Mayor Martin Hikel said, “Forced and early marriages are human rights violations that we do not tolerate. But, we know that they are a reality for Neukolln’s young people.”
In Greece, a government minister recently described another horrifying case from the 2019 migrant crisis, claiming a teenage girl in the Moria camp on Lesbos was almost stoned after refusing a forced marriage.
Eirini Agapidaki said the camp had descended into “absolute chaos” at the time.
“I honestly don’t want to talk about what I saw and what I found there, because they are very, very ugly things,” she said. “They expose the country.”
Agapidaki claimed the girl had effectively been sold into marriage by her mother.
“A mother had agreed to marry off her 15-year-old daughter to someone there,” she said. “And because the girl resisted, the community organized a stoning.”
The minister said she only learned of the case after the girl had been removed from the camp and placed in a shelter for unaccompanied minors.
Tyler Durden Mon, 05/04/2026 - 02:00China ordered companies in the country not to comply with US sanctions on five domestic refiners linked to the Iranian oil trade, deploying for the first time a blocking measure introduced in 2021 that was aimed at protecting its firms from foreign laws it deemed unjustified.
Refiners - including Hengli Petrochemical (Dalian) Refinery which was sanctioned last month and several other privately-owned processors - had been facing asset freezes and transaction bans. Hengli was the most ambitious target to date in China’s refining sector, and underscores US eagerness to push Iran to the negotiating table at all costs, even just weeks before an expected and long-awaited meeting between Trump and his counterpart Xi Jinping.
The sanctions on Hengli Petrochemical triggered a $1.4 billion wipeout in the fortunes of Fan Hongwei and her husband Chen Jianhua, who together built Hengli Group into one of China’s biggest energy companies, after shares of the refiner tumbled 10%.
But if Trump was hoping Beijing would just let this creeping financial blockade slide, he was wrong: on Saturday, the country’s commerce ministry said in a statement that US measures unlawfully restrict normal trade with third countries and breach international norms. And, in a rare move, it issued an order banning recognition, enforcement, and compliance with the sanctions aimed at the five companies.
“The Chinese government has consistently opposed unilateral sanctions that lack authorization from the United Nations and a basis in international law,” the department said.
Still, banks working with Hengli and other private processors are scrambling to understand the decision and are seeking clarity from the banking regulator. Public holidays in China this week allow them some time, since business is on hold, as does the grace period provided by the Treasury Department’s Office of Foreign Assets Control.
The sanctions and Beijing’s response come just weeks before a highly-anticipated meeting between President Trump and his Chinese counterpart, Xi Jinping. While the blocking measure is not likely to derail the summit, Washington’s reaction to it will indicate if the matter escalates, according to analysts from Eurasia Group.
“The refineries primarily work with Chinese banks that have not yet been directly sanctioned,” the analysts led by Dominic Chiu wrote in a note. “If the US extends secondary sanctions to those institutions, or major state-owned entities, Beijing would likely respond with more forceful countermeasures.”
The injunction “allows the refineries to seek compensation in Chinese courts from entities that comply with US sanctions, including domestic actors — such as banks, investors, and downstream customers that have ceased dealings — as well as foreign firms with a presence in China,” the Eurasia analysts said, adding the move signals Beijing is taking a more assertive approach to countering sanctions.
“By activating its blocking measures for the first time since adopting the rule in 2021, China is demonstrating a lower threshold for deploying its legal and regulatory toolkit to counter US sanctions,” they said.
For the past decade, China has been the single largest buyer of Tehran’s sanctioned oil shipments, many of them arriving indirectly and through private refiners, and then turned into gasoline, diesel and other oil products. Chinese customs data do not reflect that trade, with the last official shipment recorded several years ago, and yet the only source of Iran state revenue are Chinese sanctions-busting teapot refiners.
Before Hengli, and wary of the economic and diplomatic fallout, Washington’s efforts to cut off Tehran’s oil revenue had targeted smaller Chinese companies and facilities. Hengli, by contrast, is representative of the most modern of China’s private refiners, with a sprawling oil-processing and chemicals complex in the northeastern province of Liaoning.
While the country does still have an army of small independent players — the original so-called teapots — the larger entities are now giant operations. Altogether, the private sector accounts for as much as a third of refining capacity, in a country where energy security is an unchallenged priority.
China's decision to activate blocking measures on Saturday, risks becoming what Bloomberg called "a watershed moment." While China has often railed against unilateral sanctions, it has in the past quietly allowed companies to comply with them to avoid blowback on its own economy and preserve access to the US financial system.
Beijing is now signaling a far firmer stance against such restrictions by directing companies not to abide by US sanctions on five domestic refiners linked to the Iranian oil trade.
A commentary on the People’s Daily app, the Communist Party mouthpiece, called the announcement “a pivotal step in the transition of China’s foreign-related legal weapon from institutional reserves to practical application.”
What China just did with the blocking statutes against U.S. extraterritorial sanctions sets quite a major precedent, probably the financial equivalent of what happened with rare earths last year (in the sense that this is China taking a major step to push back against a U.S.… https://t.co/du85sL2lht
— Arnaud Bertrand (@RnaudBertrand) May 3, 2026And while it may not matter to markets - which now ignore everything except some imaginary capex plans for a few billions quadruple-ordered DRAM chips which will never materialize - the concern is that now Trump, in addition to retaliating to whether Iran does next in the Gulf, and issuing new tariffs proclamations, will also likely announce - at any given moment - his response to China's sanctions defiance, and since it is in Trump's benefit to escalate ahead of the meeting with Xi, he will waste no time in doing just that.
Tyler Durden Sun, 05/03/2026 - 23:37