Zero Rss

OpenAI, Anthropic Models Created Fake Profiles, Tried To Trick Humans During Cyber Tests

Authored by Naveen Athrappully via The Epoch Times,

Artificial Intelligence (AI) models from Anthropic and OpenAI carried out unsanctioned actions targeting multiple people and organizations during a cyber evaluation, according to the UK AI Security Institute (AISI).

Illustration of Anthropic on June 18, 2026. Riccardo Milani/Hans Lucas via AFP via Getty Images

AISI, which receives access to advanced AI models under voluntary agreements from major labs, put the agents through a fictional cybersecurity scenario to test capabilities.

The organization tested multiple AI models on two cyber challenges between July 25 and 28. In total, the challenges were run 122 times across several models, and in 19 cases, the AI models took "unsanctioned action on the live internet, including cases that targeted real people and organisations," AISI said in an Aug. 4 report.

Out of these, 17 were done by Anthropic's Mythos 5 model and two by OpenAI's GPT 5.6 Sol model.

"This is the first time AISI has seen deception of this severity that was targeted at a real person, unprompted, in the real world. It is uncertain to what extent the model recognised it was taking actions against real people," AISI stated in the report.

In the most serious incident, Mythos 5 tried to solve a cyber challenge by attacking GitHub, a cloud service that allows developers to store and manage code. The AI created a GitHub account and tried to get a malicious code approved by humans. Mythos 5 also created a second GitHub account, masquerading as another human user endorsing the malicious code. When a human reviewer caught the activity, the AI agent "falsely claimed to have made an honest mistake" and then repeatedly tried to reintroduce the malicious content by claiming the code was fixed.

Mythos 5 also sent multiple emails to two developers in an attempt to manipulate the recipients into running its malicious code.

According to AISI, the test runs of the various models did not result in any real-world harm. The organization said it was treating the AI actions as a "serious security incident" that requires further scrutiny.

AISI listed multiple factors that could have led to AI models acting in a concerning manner. The AIs were provided with internet access during the tests, which allowed them to carry out the unsanctioned actions.

AISI had also deliberately disabled the models' cyberclassifiers during tests. Cyberclassifiers are systems aimed at preventing misuse.

The AI models were also not explicitly told what they were prohibited from doing on the internet, AISI said, adding that clearer instructions may have prevented the unsanctioned actions.

In an Aug. 4 blog post, AISI said that since the behavior of AI models happened under specific conditions, it cannot say how likely such behavior will be in different contexts.

"What we can say is that the behaviour was possible, sustained, and new; that alone warrants attention," the organization said.

In an Aug. 4 post on X, Anthropic said that Mythos 5 and ChatGPT 5.6 Sol models attempted to complete their assignments in an environment where they were deliberately provided internet access and their normal safeguards were removed.

Due to the absence of specific restrictions on how the internet must be navigated and lack of safeguards, the models were tested under conditions that are "not representative of any of our production models," Anthropic said, adding that there was no evidence in these tests of an AI escaping from a secure environment.

According to the company, it was closely working with AISI to access more details on the incident while carrying out an internal investigation on the matter.

OpenAI said in an Aug. 4 statement that it appreciated AISI's partnership throughout the evaluation process, including the organization's work to identify, investigate, and share details about the activity of the GPT 5.6 Sol model in their tests.

"We look forward to continuing our collaboration together," the company said.

The Epoch Times reached out to Anthropic and OpenAI for comment but did not receive a response by publication time.

OpenAI was in the midst of another controversy last month after it admitted on July 28 that its models bypassed restrictions during an evaluation. In this case, the company was testing its models' capabilities in carrying out cyberattacks.

AI startup Hugging Face was impacted in the test. On July 16, the startup said it detected an intrusion into its data processing systems. It was only later that the startup learned that the intrusion was carried out by an OpenAI model.

HuggingFace then worked with OpenAI to contain the attack, the startup's CEO, Clement Delangue, said in a July 22 post on X, calling it "an attack unlike anything we've seen before."

"This is day one for cybersecurity in the age of agents & we're all learning that secrecy is not the answer & that all defenders (not just a few selected ones) everywhere need more powerful models without restrictions, especially open ones," Delangue said.

A robot hand reaches out to the letters AI (Artificial Intelligence) in an image taken at an undisclosed location on June 23, 2023. Dado Ruvic/Reuters Tyler Durden Wed, 08/05/2026 - 17:40

Jim Cramer Just Sold His Bitcoin And Bulls Couldn't Be Happier

Looks like $100,000 bitcoin may be on deck, because Cramer is selling.

The ultimate inverse indicator Jim Cramer says he is selling all of his bitcoin, warning that rapid advances in quantum computing could threaten the cryptocurrency’s security within the next three to four years, according to Cointelegraph and Coindesk.

The CNBC host made the decision after interviewing IBM CEO Arvind Krishna, who urged investors to be "paranoid" about the potential impact of quantum computers on modern cryptography. Cramer said the conversation convinced him it was time to exit his bitcoin position.

Crypto traders, however, largely shrugged off the warning. Instead, many celebrated the announcement, reviving the long-running "inverse Cramer" meme, which jokingly treats his bearish calls as bullish signals. "If Cramer is selling, it's time to start buying," one trader wrote on X.

Bitcoin barely reacted, continuing to trade around $64,000 despite Cramer's comments, a recent Coldcard security incident, and signs that large bitcoin holders have begun moving or selling coins as overall crypto trading volumes decline.

The quantum computing debate itself remains unsettled. Some analysts believe bitcoin may need to transition to quantum-resistant cryptography within the next several years, while others argue practical quantum computers capable of breaking Bitcoin's encryption are still decades away. Even if such a breakthrough occurs, experts note it would threaten far more than cryptocurrencies, potentially disrupting banks, governments, and nearly every digital system that relies on modern encryption.

Cramer's latest warning also comes with plenty of historical baggage. The television personality has become famous for making high-profile market calls that later proved spectacularly wrong, from recommending Silicon Valley Bank shortly before its collapse to repeatedly changing his stance on bitcoin over the years.

That track record has turned "inverse Cramer" into one of Wall Street's favorite running jokes, with many investors instinctively betting against his latest prediction rather than following it.

Tyler Durden Wed, 08/05/2026 - 17:20

DHS Confirms Over 3 Million Total Deportations, Highlights Arrests Of Five More "Worst Of The Worst" Criminal Illegals

Authored by Debra Heine via American Greatness,

US Immigration and Customs Enforcement (ICE) on Monday arrested five more “worst of the worst” criminal illegal aliens convicted for heinous crimes, including voluntary manslaughter, criminal indecent exposure, aggravated assault, and fentanyl trafficking.

According to the Department of Homeland Security (DHS), more than three million illegal aliens have left the United States due to the Trump administration’s immigration crackdown: 2.2 million self-deportations, and over 985,000 deported by DHS.

Each of the five violent criminals highlighted by DHS Tuesday were arrested in deep blue sanctuary cities where anti-ICE agitators continue to harass immigration officers.

• Fernando Ruiz-Maldonado, a criminal illegal alien from Mexico, convicted for voluntary manslaughter in Los Angeles, California.

• Sergio Loya-Lozano, a criminal illegal alien from Mexico, convicted for criminal indecent exposure, hit-and-run, and TWO counts of driving under the influence in San Jose, California.

• Olman Josue Pineda-Jimenez, a criminal illegal alien from Honduras, convicted for aggravated assault and harassing communications in Charlotte, North Carolina.

• Heriberto Hernandez-Sosa, a criminal illegal alien from the Dominican Republic, convicted for fentanyl trafficking in Worcester, Massachusetts.

• Jose Manuel Pertuz-Pena, a criminal illegal alien from Venezuela, convicted for aggravated unlawful use of a weapon in Cook County, Illinois.

Immigration agents continue to carry out their law enforcement duties in blue sanctuary enclaves despite the left’s relentless coordinated campaigns of violence against them.

According to DHS, immigration officers have experienced a 1,300+ percent increase in assaults against them, a 3,300 percent increase in vehicular attacks, and an 8,000 percent increase in death threats.

“Every single day, we are REMOVING criminals from American communities. Just yesterday, ICE arrested murderers, sexual predators, violent assailants, drug traffickers, and other dangerous criminal illegal aliens,” said DHS Secretary Markwayne Mullin.

“Under the Trump Administration, the Department of Homeland Security is enforcing the law, deporting criminal illegal aliens, and defending the homeland. It’s no wonder crime rates have reached historic lows.”

DHS has listed over 40,000 illegal alien criminals on their Worst of the Worst (WOW) website which tracks ICE arrests of murderers, rapists, pedophiles, violent gangbangers and arsonists.

A DHS spokesperson told American Greatness Tuesday that over 985,000 illegal aliens have been deported since President Trump took office. An additional 2.2 million have self-deported.

“In President Trump’s first year back in office, more than 3 million illegal aliens have left the U.S. because of the Trump administration’s crackdown on illegal immigration including an estimated 2.2 million self-deportations,” the spokesman said via email.

“As of July 12, we have now deported over 985,000 illegal aliens and arrested over 1 million illegal aliens.”

Tyler Durden Wed, 08/05/2026 - 17:00

Sandisk Tumbles After Revenue, Earnings Forecasts Miss Estimates

Sandisk was one of the largest public holdings of the hedge fund of 24-year-old former wunderkind, Leopold Aschenbrenner, and its July collapse from $2300 to $1000 was chief the main reasons why the former OpenAI employee had to liquidate his extremely overlevered hedge fund and sell all positions at a 10% discount to Citadel to meet a volley of endless margin calls.

Well, if he has some dry powder left he just may be able to repurchase some or all of his portfolio from Ken Griffen following the plunge of Sandisk after hours (we jest, of course), not because earnings were weak - they beat solidly - but because the company's revenue guidance was very disappointing... and for a stock like SNDK which is priced to perfection beyond 2030 on the assumption that nobody else can produce the biggest commodity product in electronics - memory chips - the guidance was rather dismal. 

Here is what SNDK reported for fiscal Q4:

• EPS $39.25 vs Est. $34.37
• Revenue $8.97BN vs Est. $8.64BN
  • Data Center Revenue $3.0B vs Est. $2.6B
• Operating Income $7.0B vs Est. $6.4B
  • Adjusted gross margin 84.6%, estimate 81.5%
• Free cash flow $7.08 billion

And while historical were fine, it was the company's Q1 guidance that sent its stock tumbling after hours: 

• Sees revenue $10.30 billion to $10.80 billion, far below the median estimate of $11.16 billion 
• Sees adjusted EPS $44.00 to $46.00, a midline also below the estimate $45.58

Commenting on the results, SNDK said that "as the cloud and other data-intensive workloads continue to expand, we remain confident in the long-term growth trajectory of our business, further margin expansion, and strong free cash flow generation."

Perhaps, although one look at prevailing NAND prices indicates that the peak is now well in the rearview mirror...

... and the market agrees with the stock, which surged about 40% in the past few days since the Citadel takeover of the Situational Awareness hedge fund, sliding and back to about half of its all time high hit in early June.

Tyler Durden Wed, 08/05/2026 - 16:45

They Really Don't Care

Authored by Todd Hayen via Off-Guardian.org,

This might not apply to all sheep-types, but many of the ones I have encountered simply do not care. This could be the reason we can’t seem to get through to them with the facts we are constantly shoving down their throats. Of course, the ones I’ve talked to may just be saying they don’t care to shut me up, but I really don’t think so. They seem pretty sincere.

How could they not care? Now, that is the $64,000 question. People, in general, do not care about things they do not see directly affecting them. They should, but they don’t. People these days, at least, don’t seem very skilled at discerning things that will—if not cared about—eventually bite them in the ass. I think people used to be better at determining such things.

They used to see war in a neighbouring country, for example, and say, “Hmmm, if we don’t do something about that, those bloodthirsty marauders may be over here next.” People who thought that way—speculating about a potential ass-bite—actually disappeared a long time ago, if they ever existed at all.

Still, my point stands: if it doesn’t directly affect them in the present moment, they don’t care.

Sorry, I think that is weird.

And, of course, people seem very inconsistent about this.

Some things they do care about, and usually those things are not as important as the things they should care about.

Take immigration control and enforcement, for example. Most people leaning to the left seem to care very much about the treatment ICE gives to people suspected (or legally determined) to be in the US illegally. They worry about their rights, their families, and the way they are arrested and deported. Yes, some of these worries are legitimate.

Everyone should be treated fairly and respectfully by law enforcement officials, and if they are not, it is right to complain about it through the proper channels. But none of these people seem the least bit concerned about how millions of illegal—and often criminal—people will degrade the way of life for everyone already living here.

I often ask, “So, do you want open borders then, and as a result, never have laws about enforcing the rules regarding immigration?” They will invariably say, “Oh no, I do believe we should control our borders!” Go figure.

The same story goes for free speech. People may seem to care about hate speech and speech that does not fit their worldview, such as Charlie Kirk’s speaking about the negatives regarding transgenderism or abortion. But if you ask them, “So, you don’t believe in free speech then? You think the First Amendment of the US Constitution is idealistic hooey?” They will invariably say, “No, of course I believe in free speech!” But they don’t. Go figure.

They can’t see far enough ahead to recognize the consequences of cherry-picking speech—eliminating what they think is offensive and keeping only the “important stuff.” Unfortunately, you can’t do that, and up until recently people knew that. There is a consequence for freedom, and sometimes it isn’t pretty.

I think a lot of the time this “I don’t care” attitude stems from the fact that people don’t seem to care much about principles. Of course, that does depend on the “principle.” Using the immigration example again to illustrate this point: those against deporting illegal aliens seem to care about the principle of “kindness” and “loving your neighbour” and “no one should be hurt, for pretty much any reason.”

Yet they contradict this attitude in dozens of ways: expecting that people be put into prison for not calling someone by their chosen pronoun, or arresting someone giving a speech about the atrocities being committed in Gaza—they see these examples as hate speech. In these cases, it is fine to be arrested. But sneaking into the US illegally, or doing so and lying about your criminal record? That’s all okay.

I feel the shrew-types are (see my Substack for a definition of “shrew”) very aware of principles. The destruction of free speech and even the obliteration of privacy in the US is not necessarily affecting people directly (except during Covid, when it certainly did, with persecution toward the unvaccinated and the loss of jobs and livelihoods). It is a “principle thing” for a lot of us. It is the wanton destruction of the very fundamentals our country (the US) was founded on.

Not only our constitutional rights, but the inalienable rights our Creator granted us. The writing on the wall exclaiming a future none of us will be comfortable in is clear and present. We hear the train a-comin’, rolling ‘round the bend…And it doesn’t look good.

So maybe shrews also don’t freak out over injustices until we feel them, but maybe we also see what’s on the horizon more logically and pragmatically than the sheep-types do. But that too is arguable. The sheepies certainly have no problem losing their cookies over Trump, even though there is little he is doing that directly affects them in a bad way (until recently, at least).

They too claim to be looking at future calamity to justify their hate. Yet Canadians adore Carney, and can’t seem to see what his antics are bringing onto Canada: soaring inflation and grocery prices, ballooning deficits and national debt (now larger than the economy), higher taxes, and escalating trade tensions with the US through tariff retaliation and protectionist policies that critics argue risk recession and long-term economic decline. Or, probably the most devastating, getting into bed with China and the Chinese Communist Party (“It’s not Communism,” they love to bellow, “It’s socialism.” Ha ha.)

We see these inconsistencies in a variety of ways. Obama’s approach to drone warfare was entirely ignored, yet anything Trump did that was similar (before the Iran catastrophe) was considered criminal.

But do they really care? Or are they just oddly selective about what they care about?

Maybe it is more the latter we are seeing. Maybe they do care, but about strangely inappropriate things. And then not care about things that are very appropriate to care about. Got me. All I can say for certain is that it is weird. Very weird. And I do care about that.

Tyler Durden Wed, 08/05/2026 - 16:20

FAFO: Democrat Candidate Threatening Beachgoers Gets Knocked Out Cold On Beach

A Democrat hopeful gunning for a seat in Congress is sitting behind bars on $1 million bail after police described a chaotic beachside confrontation on Maui that involved a knife, repeated threats, and the candidate left unconscious in the sand.

Kirill Basin, the 40-year-old primary challenger to Rep. Jill Tokuda in Hawaii's 2nd Congressional District, faces two counts of first-degree terroristic threatening stemming from the Aug. 1 incident at Keawakapu Beach in South Kihei.

It started with a request to turn the music down. A 61-year-old man asked Basin to lower the volume, and Basin, police say, replied by implying he had a firearm and threatening to shoot the man's wife.

That was the point a bystander stepped in.

Footage circulating online shows the congressional candidate advancing aggressively toward a group of beachgoers before stepping back and declaring, "I told him if he wants to go to the hospital, come here."

Basin next confronted the man directly and swung a beach chair that failed to connect. A single return punch sent him sprawling unconscious onto the sand as the man stated, "Watch your fucking mouth."

Rather than remain down, Basin rose again, cautioned the man about facing "jail," and then rushed forward while yelling, "Come on, bitch!"

It was after the altercation, police say, that the knife came out. Basin allegedly armed himself and threatened multiple people before throwing the blade into the ocean. Lucky Kama, the bystander who has since spoken publicly, described it as a five-inch switchblade and said he found it and turned it over to officers.

"He ended up pulling the knife out on me after the altercation and that was obviously a game changer when I knew he was off," Kama said.

Basin's attorney flatly denies any weapon existed. "There's no evidence in any of these videos that have been circulated tremendously that he ever had a knife in his possession. He never had a firearm in his possession," Brandon Segal said. "These are just allegations. My client has a presumption of innocence."

Basin appeared in a Wailuku courtroom in handcuffs Tuesday. A judge kept bail at $1 million - an amount Segal called "outrageous" - and the court recommended Basin undergo a mental health assessment.

The beach episode is not his first brush with the charge. On May 29, Basin allegedly entered a county building in Wailuku while brandishing a firearm and got into a verbal altercation with county employees; police said additional charges from that incident remained under review. Court records show a history of arrests for assault and property damage.

Several people have taken out temporary restraining orders against him. Among them is Maui County Council member Thomas Cook, who said he feared for his own safety and his staff's after Basin disrupted a council meeting in May, becoming "aggressive and confrontational" and threatening violence against police and a council ambassador.

Hawaii's primary is Saturday, Aug. 8.

Tyler Durden Wed, 08/05/2026 - 16:15

Israel To Scale Back Gaza Strikes To Give Trump's Hamas Disarmament Plan A Chance

Authored by Tom Ozimek via The Epoch Times,

Israel has tightened restrictions on targeted strikes in Gaza, signaling that it intends to give President Donald Trump’s initiative to disarm Hamas a chance despite Prime Minister Benjamin Netanyahu’s firm public conditions for an Israeli withdrawal.

Senior Israeli security and political officials told Epoch Magazine Israel on Aug. 5 that Israel Defense Forces (IDF) Chief of Staff Lt. Gen. Eyal Zamir has ordered that every targeted strike in Gaza receive his personal approval.

Such operations previously required approval from the head of the IDF’s Southern Command. Under the new directive, Zamir must also obtain authorization from Israel’s political leadership before a strike can proceed.

The officials said the change followed a request from Nickolay Mladenov, the Gaza envoy for Trump’s Board of Peace, to suspend Israeli strikes for two weeks while negotiations over Hamas’s disarmament move forward.

They said Israel wants to avoid a confrontation with Trump and demonstrate that it remains fully coordinated with the Board of Peace and committed to the president’s 20-point Gaza plan.

The remarks, made a day after Netanyahu publicly outlined Israel’s objections to the U.S. proposal, highlighted Israel’s coordination with Washington and signaled that Jerusalem remained open to continued negotiations.

Netanyahu said in an Aug. 4 video message that Israel would not withdraw from its current positions in Gaza until Hamas had been completely disarmed.

“President Trump and his team believe they can bring about Hamas’s disarmament and the demilitarization of Gaza,” Netanyahu said. “We are examining that.”

Netanyahu said Washington had sent Israel a draft proposal that his government had not accepted, adding that Israel had submitted its own comments.

“This is our position,” he said. “We stand firm in defending our interests, both wisely and resolutely.”

A senior Israeli official told Epoch Magazine Israel that despite the new restrictions on strikes, militants in Gaza would not have immunity. Anyone attempting to harm Israeli troops would be targeted.

Disarmament Talks

Trump announced on July 30 that the Board of Peace had reached what he called a historic agreement for the complete disarmament of Hamas and other armed groups in Gaza.

Under the proposed phased arrangement, military operations would stop before heavy weapons, tunnels, and weapons-production sites were decommissioned. Israeli forces would then withdraw as disarmament progressed, while an International Stabilization Force and a newly trained Palestinian police force assumed responsibility for security.

Gaza would eventually be governed by a technocratic Palestinian administration working with the Board of Peace, according to U.S. officials.

Hamas and other Palestinian factions agreed on July 31 to a gradual process for cataloging and storing their weapons under the supervision of the National Committee for the Administration of Gaza, according to the Board of Peace.

A central dispute remains over the sequence. Israel says Hamas must disarm before Israeli forces pull back from the roughly 60 percent of Gaza they currently control. Hamas says Israel must first stop its strikes and begin withdrawing.

The Board of Peace held what it described as a “constructive and detailed” meeting with Netanyahu and other Israeli officials in Jerusalem on Aug. 3.

“The goal is clear and is not in question: the complete decommissioning of weapons in the Strip and the transition away from rule by the gun to civilian governance,” the board said. “Reaching it will be a process.”

The prospect of an agreement has generated cautious optimism among some Gaza residents exhausted by nearly three years of war and displacement.

“We feel a sense of joy when we hear the news, and we hope it turns out to be true,” said Fatima Mohammed, a displaced resident.

Tyler Durden Wed, 08/05/2026 - 15:45

Hackers Launch 'Vishing' Cyberattacks Against Major Hedge Funds

Several major Wall Street firms have been hit with a wave of sophisticated cyberattacks using voice phishing, or 'vishing' to trick employees into revealing sensitive information or granting access, Bloomberg reports. 

Crash Override gets his ass handed to him by Acid Burn (Hackers)

The attacks targeted some of the world's largest hedge funds - including Citadel, Point72, and Two Sigma Investments, along with several private equity firms. 

Two Sigma, which manages $75 billion, says they were able to thwart the attacks.

"Our security team responded quickly to an attempted vishing campaign targeting Two Sigma and other investment managers, and we have no indication of any impact to our data or our systems," a spokesperson told BBG. "We continue to monitor the situation closely."

While we don't know if the hackers used AI, cybersecurity attacks targeting Wall Street firms have surged over the past year, as artificial intelligence tools allow for cheap, fast, and efficient attacks according to Align Managed Services president, Vinod Paul. 

"Before they could attack 50 entities in a targeted attack, now they can do 1,000," said Paul. "Hackers can also listen into a phone call and mimic the voice, tone and phrasings of the speakers to create fake calls."

In June, Google noted a wave of attacks this year against law firms and other professional service organizations - which also involved vishing, and people posing as IT workers to sneak into corporate offices. 

Finra is now involved...

The Financial Industry Regulatory Authority, which oversees broker dealers and securities professionals, has been in touch with member firms about recent attempted breaches, according to a separate person with knowledge of the matter.

Finra started the Financial Intelligence Fusion Center in March - a secure portal for Finra and its member firms to share intelligence about fraud threats and to help coordinate responses. That was in response to the increasingly sophisticated cyber and fraud threats that were being directed at financial services firms. -Bloomberg

"The terrifying thing about modern day AI systems is that they have commoditized this and made it possible to execute attacks at scale," said Will Wilson, the chief executive officer of Antithesis. "Everybody will have to seriously level up. Otherwise they are going to be in big trouble." 

Tyler Durden Wed, 08/05/2026 - 15:25

Former LAPD Officer Gets Life Sentence For Kidnapping Teen In $350,000 Crypto Robbery

Authored by Brian Danga via TheBlock.co,

Former LAPD officer Eric Halem was sentenced to life plus 15 years in state prison on Tuesday for his role in the December 2024 armed robbery of a 17-year-old in Koreatown, who was robbed of a hard drive containing $350,000 worth of bitcoin.

Los Angeles County Superior Court Judge Mildred Escobedo imposed the concurrent life terms for kidnapping and robbery after rejecting a last-ditch request by defense attorneys seeking a new trial, the Los Angeles Times reported. 

Halem had sought a new trial on grounds that his initial attorneys failed to call witnesses or examine key evidence.

However, Judge Escobedo denied that motion, noting that the evidence presented at trial showed Halem had acted out of "sheer and utter greed," adding that "there could've been no other conclusion."

During Tuesday’s sentencing, Escobedo noted Halem had preyed on individuals who “perhaps shouldn’t be seen as victims, because they were criminals themselves,” but that that didn’t excuse his actions.

To abuse his power, by masquerading as a police officer, “is heinous and egregious,” she said.

According to a district attorney's spokesperson, Halem must complete most of his 15-year sentence before serving the concurrent life terms and will be eligible for parole after seven years.

Halem was convicted in March following a two-week trial in which a jury found him guilty of kidnapping and robbery.

Prosecutors said Halem and three co-conspirators entered a high-rise apartment and forced the victim, identified in court as Daniel, to hand over the hard drive under threat of death.

Halem had left the LAPD nearly two years before the robbery but was still serving as a reserve officer at the time, according to the LA Times. 

He still faces pending charges in separate cases involving insurance fraud and another alleged crypto-related robbery, while his co-defendants have yet to stand trial, per the report.

Tyler Durden Wed, 08/05/2026 - 15:05

GTA VI Delay Fears Reignite As Ex-Rockstar Developer Says He "Would Not Be Shocked"

Speculation about a delay to Grand Theft Auto VI is spreading online after a former Rockstar Games developer said that, based on his experience working on previous installments, he "would not be shocked" if the game slips again. Another postponement would add to the previous delays and spark frustration among gamers who have waited more than 13 years for a fresh, updated version of the series.

Jake Brigstock of Indy100, a British digital news website, spoke with former Rockstar Games animator Mike York, via covers.com, about his confidence that Rockstar Games will be able to release GTA 6 by November 19 on PS5 and Xbox Series X/S.

York said he "would not be shocked at all" if there does end up being another GTA 6 release date delay.

"Personally after being there and working on GTA 5, I don't currently work there so I can't give a confidence based off that, but based on my previous experience, they could delay it again," said York.

"Straight up, they could delay it again. They can.

"They can do whatever they want and people will wait right now, it doesn't matter. If they need to do what they need to do, they'll do it.

"So if November comes around and they're thinking 'this final mission we have is still not looking very good, and there are still a few bugs in this final mission', they'll push it six more months if they have to.

"I would not be shocked at all. I don't think it would hurt them or anything."

Another delay would abosutely crush confidence in gamers whp've waited 13 year for another re-freshing of GTA.

Rockstar began taking GTA preorders on June 25. Take-Two Interactive Software, the owner of the gaming studio, has seen its stock meet heavy resistance at the $250 level since mid-2025.

Polymarket odds for "GTA 6 launch postponed again?" have yet to really move on Indy100's report that was posted on Tuesday.

//--> //--> GTA 6 launch postponed again?
Yes 11% · No 89%
View full market & trade on Polymarket

Odds stand around 11%.

Tyler Durden Wed, 08/05/2026 - 14:45

At Least Ten Agitators Arrested In Madison As Filthy 'Autonomous Zone' Is Dismantled

Authored by Debra Heine via American Greatness,

Authorities in Madison, Wisconsin on Tuesday sent in crews to clean up and dismantle the filthy and violent “autonomous zone” that was set up by left-wing agitators to protest the shooting of an armed violent felon. At least ten occupiers were arrested as of Tuesday morning, Fox 6 reported.

Repeat offender Corey Ruiz, 38, was shot by police on July 22 after allegedly attacking an officer with a knife.

Public records show that Ruiz had eight convictions for “resisting, obstructing, threatening or injuring police officers between 2007 and 2024,” according to Fox 6.

Five of those prior cases reportedly involved conflicts with City of Madison police officers.

After the shooting, activists, including Black Lives Matter members, quickly set up barricades using furniture, spike strips, and wooden pallets to occupy downtown Madison.

The Corey Ruiz Autonomous Zone (also known as CRAZE or “Corey Street”) was initially allowed by the woke mayor as a protest encampment.

The City of Madison even provided basic services, including portable restrooms and the use of salt trucks as street blockades. A homeless population quickly moved into the zone, creating a need for more services..

Mayor Satya Rhodes-Conway on Friday described the zone as “not sustainable or safe” but did not set a timeline for clearing it.

Meanwhile, Independent journalist Nick Sortor was threatened over the weekend by BLM agitators while reporting at the scene.

“Hurry up and leave before your life ends here,” an agitator told Sortor. “There’s a whole team of us.”

Cleaning crews were sent in early Tuesday morning after “CRAZE” had become a public health hazard. After the decision to remove the encampment was announced, the occupiers reportedly lit fires and threw rocks at the city workers.

The agitators clashed with city and state police who were sent to the scene to protect the crews.

The agitators blocked the streets near the encampment after it was cleared.

The occupiers eventually moved to the mayor’s decrepit house to wage a “noise protest” over her decision to shut down their “CRAZE.” They littered the mayor’s front yard with anti-police signs, deployed a megaphone siren and screamed at her through a bullhorn.

“The community ain’t get no sleep ’cause of you!” an agitator bellowed through the bullhorn. “We saw you sent your pigs out too!”

“You have blood on your hands!” the agitator cried.

Mayor Satya Rhodes-Conway said in a video statement Tuesday that the decision to clear the encampment at Williamson and Baldwin Streets was “not made lightly” and occurred only after nearly two weeks of failed attempts to resolve the situation voluntarily.

She urged the community to focus on “sustainable change” and accountability through official investigations rather than occupation, stating, “Holding government accountable for progress should not mean harming the community we all share.”

Tyler Durden Wed, 08/05/2026 - 14:25

Ethereum Researchers Want To Rein In Staking; Critics Warn It Could Backfire

Authored by Felix Ng via CoinTelegraph.com,

A group of six Ethereum researchers and developers, including Ethereum Foundation’s Justin Drake, has proposed changing the network’s issuance policy to cut validator rewards more sharply as the proportion of staked ETH rises. 

The draft, called the Tapered Issuance Burn and currently being assigned the provisional number EIP-8363, would burn an increasing fraction of validators’ consensus rewards as the amount of staked ETH approaches a fixed threshold of 60.25 million ETH (around 50% of the current ETH supply), at which point the deduction hits 100%. The changes would phase in over 18 months. 

Tapered Issuance Burn Ethereum Improvement Proposal. Source: Github

The proposal has triggered backlash from developers, stakers and DeFi founders, who warn that the reward cuts could force out solo validators before larger institutions are affected, weaken institutional demand for ETH and disrupt DeFi markets built around staking yield. 

One of the proposal’s authors, Jérôme de Tychey, said the changes are needed to address the rising share of Ether being staked, which passed 33% in April. The authors argue continued staking growth could concentrate ETH in large custodians and liquid staking providers, while unchecked issuance erodes Ether’s role as a neutral, trustless store of value. 

“Ever-growing issuance is a dilution tax on every holder: stake, or be diluted. At high ratios, LSTs and other staking derivatives displace raw ETH as the ecosystem’s working money, thus swapping the most neutral, trustless asset for intermediated claims on issuers,” he said.

Although EIP-8363 remains an early draft, its publication just two days before a deadline for proposals targeting Ethereum’s Hegotá upgrade has also raised concerns about whether there is enough time to consider the impacts on Ethereum’s tokenomics.

EIP-8363 authors’ argument to cut issuance 

The proposal’s authors argue that under the current curve, staking yield never drops below 1.5% even with all ETH in existence being staked. 

“The incentive to stake never switches off. Where does it stop? It doesn’t,” said de Tychey. 

With no changes, a worst-case scenario could see more than 55% of Ethereum supply locked in staking by 2028, he said. 

“Maximal neutrality & minimal dilution: those are the two fundamentals of a store of value. This EIP not only hardens both, it sets a bar no other blockchain clears.” 

🚨 New EIP: Tapered Issuance Burn
We just submitted an EIP to ethereum/EIPs: a minimal, market-driven fix to Ethereum's issuance policy removing the incentive for stake growth beyond 50% of ETH supply.
EIP-8361 by @pintail_xyz, @jdetychey, @dapplion, @pa7x1, @ladislaus0x &… pic.twitter.com/g1uzWPycQ4

— Jerome de Tychey 🦇🔊 (@jdetychey) August 4, 2026

The proposed policy would see issuance peak at 0.5% of ETH supply per year at its highest (around 20% of ETH is staked), declining to zero when the staking ratio of Ethereum hits the 60.25 million ETH threshold. 

“ETH supply growth will be bounded and more predictable. Combined with the EIP-1559 and Blob burn, the supply will more often decrease. Ethereum, the most mature of all the protocols, with a sustainable security budget, will also be the least dilutive of all protocols,” said de Tychey.

The proposal’s broader direction has also received support from Grayscale. In May, Grayscale’s head of research Zach Pandl said limiting staking incentives would be “positive for the price of Ether over time.”

Critics say it’s punishing Ethereum’s growth

Aave founder Stani Kulechov said reducing staking rewards would weaken institutional demand for ETH and borrowing activity across DeFi, arguing the proposal “doesn’t achieve the outcome it tries to achieve and is actually hurtful for Ethereum.” 

Another argument is that the proposal would impact solo validators as they have generally higher relative costs and are more susceptible to reward changes, leading to a more concentrated validator set. 

“This will self evidently push out solo stakers who aren’t subsidized by the EF or others,” said Mike Silagadze, CEO of Ether.Fi. 

“It will essentially guarantee that the only ones staking are large centralized entities with zero cost of capital where users passively hold their ETH.”

De Tychey disputed this point, saying on the Ethereum Magicians forum that users of large staking providers must pay fees, making those services less attractive as rewards fall, though he acknowledged the research on this is still contested. 

The proposed network update would lower ETH issuance and inflation. Source: Zach Pandl

Others pointed to the seemingly rushed timeline to consider the proposal, though this appears to be due to confusion over the forthcoming deadline on Thursday. 

“This clearly doesn’t leave adequate time for community review of a monetary policy change of this magnitude,” said Greg Koumoutsos, a co-author of EIP-8148 and EIP-8205.

Where the proposal currently stands

The Tapered Issuance Burn proposal has not been approved, scheduled or included in Hegotá.

While there is a Thursday deadline relating to this proposal, the deadline is for pull requests proposing additional EIPs for Hegotá, not a deadline for deciding which proposals will be included. 

Ethereum community organizer Trent Van Epps said the selection process could continue until Nov. 8, and that Hegotá is likely to reach mainnet in the second quarter of 2027.

Tyler Durden Wed, 08/05/2026 - 13:45

Copper Tops $14,000 As US Stockpiling Drains Global Supply Ahead Of Trump's Tariff Call

Copper strength has returned to the London Metal Exchange this week as futures top $14,000 a ton. Another leg higher could be imminent, pushing prices into blue-sky territory as traders weigh tightening global supplies against robust metal inflows into the US ahead of President Trump's expected tariff decision.

The Commerce Department was expected to deliver its tariff recommendation by June 30, but no decision has been announced. On national security grounds, the agency is expected to impose import levies of up to 50% on semi-finished and derivative copper products under Section 232. The policy aims to protect domestic manufacturing and reduce foreign reliance, addressing supply chain risks from major exporters like Chile, Peru, and Canada.

Bloomberg reports more than 200,000 tons of copper flowed into US ports in July, the largest ever monthly inflow in data going back to 2014. High US prices have kept the trade profitable.

As a result, this has added to a massive hoard in U.S. warehouses and ports, while supplies in the rest of the world are dwindling.

LME inventories sank to a five-month low, while a widening backwardation signaled increasing pressure on near-term supplies. LME copper settled 1.4% higher at $14,066.50 a ton, while Comex futures rose as much as 2.3% to approach May's record high.

The tightening is visible in the LME forward curve. Nearby contracts traded at a $99.50-a-ton premium to three-month futures, up from about $30 a week earlier - the widest backwardation since January. This structure suggests pressure on short-term supplies.

Jefferies analyst Christopher LaFemina told clients earlier this summer that his team "wasn't bullish enough on copper," adding, "We now have the highest copper price forecast on the Street as we see strong US industrial demand and still tight supply."

Beyond Jefferies, HSBC, and Goldman, JPMorgan analysts have also told clients that the copper upcycle is being driven by a tightening supply backdrop, accelerating power-grid investment, AI data center demand, and broader industrial electrification. Taken together, some of Wall Street's top metals desks have warned about a sustained break above $14,000 on the LME.

However, Bloomberg macro strategist Michael Ball recently pointed out that a tariff disappointment, stronger dollar, or AI-led selloff would expose the growing bullish speculative bets on copper (read here).

Tyler Durden Wed, 08/05/2026 - 13:25

Citadel Soars 6% In July Thanks To Situational Awareness Firesale Liquidation

Some have speculated that one of the most proximal catalysts behind the collapse of Leopold Aschenbrenner's $45 billion and epically misnamed Situational Awareness hedge fund, besides his use of batshit insane Total Return Swap leverage that would make an average Korean momentum-chasing degen blush with envy, was Citadel's vocal warning early last week that the Fed would/should hike rates, a contrarian appeal which, while not taken seriously by any Fed watcher, may have spooked markets to the necessary and sufficient breaking point that forced the flood of margin calls that ultimately wiped out Leopold. 

While we doubt that Citadel was so tactically engaged as to crush the young and inexperienced Leopold and hear the lamentations of his soon to be wife with fringer notes, we are certain that his massive TRS leverage - as much as 4x on both side of a pair trade that had gone terribly wrong by being long chips and short software - and which we warned back in June was clearly in play and would lead to ruin for one or more funds, was more than sufficient to force the hedge fund's liquidation by bringing its assets under management from $45 billion at the start of July to just $10 billion at the end.  

More importantly, it led to a blowout month for none other than the flagship fund of Ken Griffin’s Citadel which jumped 5.9% in July, a month when most of its peers suffered major losses (look no further than Coatue's 8% drop) after it bought billions of dollars of AI stocks in a fire sale from Aschenbrenner’s now collapsed hedge fund Situational Awareness.

Citadel, which manages more than $71bn, has now seen its Wellington fund surge 12% so far in 2026 after a turbulent July which ultimately generated half the firm's YTD gains, the FT reported citing people who have seen the numbers.

After a huge rally in AI-related equities earlier in the year, hedge funds were smashed by a historic collapse in high beta momo stocks in July which nuked most popular holdings such as South Korean chipmaker SK Hynix which tumbled almost 50% from a peak in June. The tech-heavy Nasdaq 100 briefly veered into correction territory last week, shortly before the deal to sell Situational Awareness’s book.

More than a month after we warned that massive TRS leverage would lead to one or more Archegos-like casualties (with or without the criminal element)...

Has anyone done the analysis which funds have the most TRS on AI, aka Archegos 2.0

— zerohedge (@zerohedge) June 12, 2026

... that's precisely what happened when Aschenbrenner’s - which notched gains of more than 400% in the first half of the year with its highly leveraged bets on AI companies - became the most prominent casualty of the violent momentum reversal.

The sell-off crippled the fund, pushing it to sell the majority of its public equity positions to Griffin’s firm last week in a quick-fire process that took place over less than 24 hours. Citadel approached Situational Awareness late on July 29 and negotiated with the firm overnight. It signed a contract in less than 24 hours for the sale, which came with a 10% discount, Bloomberg has previously reported. 

Citadel’s own funds had struggled to generate big returns during the first weeks of July amid the sell-off in equities. As of July 24, Wellington was roughly flat month-to-date. In the three days prior to Citadel’s acquisition of Situational Awareness, stocks fell further.

Citadel competed with trading firm Jane Street and fellow multi-manager hedge fund giant Millennium for the purchase of Situational Awareness’s equities book last week, eventually winning the auction with about a 10% discount, FT sources reported. 

Separately, before the sale to Citadel, Silicon Valley venture capital firms Greenoaks and Sequoia Capital were approached about taking over the some of the privately held stakes in Situational Awareness’ portfolio. 

The troubled fund also had close links to some of the world’s biggest investment banks. Situational Awareness used prime brokers including Goldman Sachs, JPMorgan, and Bank of America according to filings.

In an exclusive report this morning, the WSJ wrote that Situational Awareness was backed by a wide lineup of Silicon Valley and Wall Street investors who put their faith in a 20-something founder with no prior professional investing experience.  Among the fund’s investors are Dan Sundheim, founder of the hedge fund D1 Capital Partners and a major SpaceX shareholder; Silicon Valley investor Neil Mehta, co-founder of venture-capital firm Greenoaks; the foundation of Gaurav Kapadia, founder of investment firm XN; and Feroz Dewan, the former head of public equities at Tiger Global Management, according to people familiar with the matter.

Stripe co-founders Patrick Collison and John Collison, and Daniel Gross and Nat Friedman, who lead Meta Platforms’ AI efforts, are among Situational’s other investors. Some investors might have invested through their foundations, family offices or other entities.

Situational was also backed by foundations including the Laniakea Charitable Foundation and Good Forever Foundation, according to tax and regulatory filings reviewed by fund-data tracker Old Well Labs. The president and director of Laniakea is Matthew Wage, a Jane Street trader, tax filings show. Good Forever is a grant-making organization focused on AI safety and AI policy. 

Aksia, a research and advisory firm to institutions including pensions, family offices and sovereign-wealth funds, made note of Aschenbrenner’s intellect and network in a March 2025 assessment for clients after meeting with him. But it also wrote that prospective investors in Situational “may want to be wary of hubris leading to risk management issues, particularly if the use of leverage is indeed significant,” according to a copy of the note viewed by The Wall Street Journal. 

The last ditch rescue by Citadel was not only a brilliant distressed investment which helped generate billions in short-term profits, it also helped to stem a broader market rout because Situational Awareness’s forced selling had been exacerbating the sell-off in AI stocks. Many of Aschenbrenner’s biggest investments according to his last regulatory filing - including Bloom Energy and Sandisk - rallied the day after the sale. The latter has gained nearly 30% since last Wednesday.

“These are names that trade really aggressively,” said one hedge fund manager who had invested in similar positions to those of Situational Awareness. “They were highly volatile, but they were liquid. So Citadel made a killing.”

As the FT notes, Griffin is known to charge towards firms that run into trouble. The day Enron filed for bankruptcy in 2001, Griffin sent more than a dozen of his executives to Houston on a chartered Gulfstream jet to dig into its failure, and later poached several of the company’s top analysts. The hedge fund has also stepped in before to buy the remains of failed competitors. In 2006, Citadel bought the entire trading book of Amaranth Advisors alongside JPMorgan after the fund blew up from bad bets on natural gas. A year later, it pulled off a similar coup by snapping up the credit portfolio of Sowood Capital Management when it collapsed.

“It’s classic Ken,” said one former employee, who worked closely with the Citadel founder. “He has played that card many times . . . There are very few places in the world who can do what he did.”

As for Leopold, don't cry for the former OpenAI staffer. He may have blown up this time but after his stint working for SBF at FTX, he surely has learned how to survive blow ups such as this one, and as long as he has his freedom (unlike his former boss) he will emerge somewhere (assuming he has an ironclad prenup of course). 

The Dario curse:

SBF invested in Anthropic. Stake now worth billions, but fund blows up (SBF in prison)

Leopold invested in Anthropic. Stake now worth billions, but fund blows up (Leopold getting married)

— zerohedge (@zerohedge) July 30, 2026

As the WSJ notes, Aschenbrenner started his hedge fund in 2024. After a string of prescient stock picks, including memory-chip makers SK Hynix and Sandisk, his assets under management swelled, placing the firm among the fastest-growing hedge funds in years. The rapid rise earned him a reputation as a stock-picking wunderkind and the nickname “the Nostradamus of AI.” 

In retrospect, he was just a massively levered degen who, like the infamous Taleb turkey, was lucky for 99.9% of the ride... and then Thanksgiving happened.  

Tyler Durden Wed, 08/05/2026 - 13:05

Google's Chief AI Scientist Jeff Dean Exits After 27 Years, Alphabet Shares Slide

Alphabet shares slid after The Wall Street Journal reported that Jeff Dean, one of Google's earliest employees and a key figure in its AI strategy (co-founder of Google Brain), is departing after nearly three decades to launch his own AI company. The exit raises fresh concerns about Google's ability to retain top researchers as competition for AI experts intensifies. 

Dean was Google's 30th employee in 1999 and will serve as CEO of Discovery Loop, a public-benefit corporation initially targeting machine-learning research and engineering. The startup will then transition to hardware design, drug discovery, and clean energy by automating multistep scientific experiments.

WSJ spoke with Dean:

"The four of us have been chatting about this a little bit and we got excited," Dean said in an interview at his Palo Alto, Calif., home Tuesday.

"We think by automating many of the classical experimental-loop aspects with machine learning models, augmenting human scientists and engineers, we'll be able to make it possible to explore more space in broad science areas to accelerate discovery."

The scientific process, he said, is about coming up with an idea for an experiment, setting up and running the experiment and then evaluating the results.

"Particularly in a lot of domains, you can fully computerize that whole loop," he said -- the inspiration for the startup's name.

Alphabet will invest in Dean's startup and provide cloud and computing capacity, while Radical Ventures and Khosla Ventures are co-leading a seed round. The valuation wasn't disclosed.

WSJ said that prominent Google researchers Oriol Vinyals, Quoc Le and Sanjay Ghemawat will be joining Dean in the new startup.

Shares of Alphabet dropped 5% after the report hit:

Four minutes after the WSJ report hit, Demis Hassabis, the head of Google DeepMind, wrote on X: 

I've been working towards AGI my whole life, and as we enter this pivotal moment, I'm stepping into a new role as Chair of Google DeepMind & Chief Scientist of Alphabet. This will allow me to focus on long-term strategy, and accelerating scientific breakthroughs, including leaning into my work at Isomorphic to help cure disease.

I’ve been working towards AGI my whole life, and as we enter this pivotal moment, I’m stepping into a new role as Chair of Google DeepMind & Chief Scientist of Alphabet. This will allow me to focus on long-term strategy, and accelerating scientific breakthroughs, including…

— Demis Hassabis (@demishassabis) August 5, 2026

Google CEO Sundar Pichai commented on the departures, saying Dean and Ghemawat helped engineer some of the company's most significant technology transitions over nearly three decades at the company and wished them the best.

Tyler Durden Wed, 08/05/2026 - 12:45

Second Foreign Vessel Attacked Off Yemen Within Hours, Amid Houthi 'Siege For Siege' Blockade

Update(1235ET): The Houthis have apparently attacked two vessels off Yemen's coast within a mere few hours on Tuesday, as clearly the assault on international shipping by the Iran-aligned group has grown.

The below alert from the United Kingdom Maritime Trade Operations (UKMTO) Centre is the second one today. Just hours before, an initial vessel had been reported sunk, the crew rescued... and now this:

The incident took place 95 nautical miles (176km) south-east of Aden, Yemen, according to UKMTO, adding that all the vessel’s crew are “accounted for and safe”.

UKMTO WARNING 106-26

Click here to view the full warning⤵️https://t.co/iEt5aG0Mru#MaritimeSecurity #MarSec pic.twitter.com/6QeQIOu6qd

— UKMTO Operations Centre (@UK_MTO) August 5, 2026

And just the day prior: "The Indian Ministry of External Affairs on Tuesday condemned the attack on the India-flagged commercial vessel, MSV Faize Noore Oliya, which sank in the Red Sea, off the coast of Yemen on August 4, 2026."

This comes as the Saudis are desperately trying to put together a 'coalition of the willing' to defend against such attacks. While the Houthis have not declared Bab al-Mandab Strait closed to 'all' shipping, they have declared a 'siege for siege' blockade against Saudi shipping.

*  *  *

The Houthis have quickly made good on their earlier threat, with the United Kingdom Maritime Trade Operations (UKMTO) Centre having reported the following fresh attack off Yemen:

• UKMTO has received a time-late report of an incident 9NM southwest of Al Mukha, Yemen.
• The CSO of the vessel has reported that the vessel was attacked by an Uncrewed Surface Vessel which caused a fire onboard. The crew have been rescued by local authorities and are safe and well.
• The vessel has been reported as sunk.
• Vessels are advised to transit with caution and report any suspicious activity to UKMTO while authorities are investigating.

The stricken vessel's crew has reportedly been rescued, after the fire on board and subsequent sinking.

Oil prices remain elevated also as over in the Strait of Hormuz, the Iranians insist that the Omani deal to reopen the strait has "nothing to do with the United States."

earlier

Brent crude bounced off the $78-a-barrel level early Wednesday after Iran-backed Houthi militants threatened to attack Saudi oil tankers in the northern Red Sea, reviving fears that the regional conflict could spread to another critical shipping channel. The move came despite an overnight Axios report, citing two sources and a US official, that President Trump's negotiators and Tehran are nearing an Oman-brokered interim peace deal to reopen the Strait of Hormuz. 

The Bloomberg report cites Houthi military spokesman Yahya Saree, who said the threat is retaliation for Saudi Arabia diverting oil tankers away from the Bab el-Mandeb chokepoint in the southern Red Sea.

Brent crude bounced from the $78 level to $80, clawing back some of its losses after tumbling from $86 to $78 on news that the US and Iran were closing in on an interim deal to reopen Hormuz.

WTI topped $76 this morning before fading modestly...

The latest shipping data from the Hormuz chokepoint show that transits through the critical waterway remain well below the levels seen during the first interim peace deal, which eventually fell apart one month later and resulted in the recent tit-for-tat strikes.

Last night, President Trump told reporters, "They had an all-day negotiation. The Strait of Hormuz is going to be open very soon," adding, "If they back out again, they are going to get hit really hard."

Trump has repeatedly threatened massive strikes if Tehran fails to reach a deal, only to later signal progress in negotiations.

Tyler Durden Wed, 08/05/2026 - 12:35

Ukraine Shot Down Zero Missiles In Huge Russian Overnight Salvo That Killed At Least 21

According to a growing casualty count, a large barrage of ballistic missiles fired by Russia on Ukraine has killed at least 21 people and wounded dozens more.

The overnight attack has raised the alarm for Ukraine's Western backers, given it is being widely reported that among the over two dozen ballistic and anti-ship missiles fired, not a single one was intercepted by Ukraine.

Huge overnight attack on the Ukrainian capital, via X

The attacks come on the heels of a record month: July saw over 380 missiles of all types launched on Ukraine, with government authorities citing the highest civilian casualties since 2022, with at least 377 civilians killed, and another 2,129 wounded for the month of July.

As Ukraine grapples with very low and limited missile interceptors, and amid reports that the Pentagon too is struggling to keep up supplies amid the Iran war, CNN also confirms that "as Russia fired more than two dozen ballistic and anti-ship missiles" and that "none" were intercepted by Ukrainian defenses.

President Zelensky again took to social media to urge partners to rapidly send more anti-air missiles: "It is crucial that our partners realize that delays in their delivery or a reluctance to provide anti-ballistic systems lead precisely to such horrific casualties and destruction," he said.

"Partners who are not ready to help more actively with the supply of interceptors right now can help by imposing new sanctions," he added.

Notably the Russian strikes have expanded to not just city infrastructure, energy cites, military bases, and ports - but now Russia appears to be going after prominent businesses.

This comes after Ukraine's repeat attacks on Wildberries facilities, the Russian online retailer giant comparable to Amazon:

​​​​​​The strikes also caused damage to prominent businesses in Ukraine, including the country’s largest e-commerce platform, Rozetka, and Epicentr, a retail chain comparable to IKEA.

In a statement, Epicentr said Russia launched a "devastating attack" on its manufacturing infrastructure, killing one of its male employees. “In a matter of minutes, Russian missiles destroyed what the company had been building for decades,” the statement said.

FOZZY group, which is one of Ukraine’s largest retailers that operates supermarket chains, said Russian shelling caused fires at two of its distribution centers. It said that six of its employees had been killed, while more have been injured.

Russian ballistic missile attack on Kyiv.

At least 20 Iskander-M/S-400 ballistic missiles, 5 Zircon hypersonic cruise missiles, and 2 Kn-23 ballistic missiles were launched from Bryansk, Kursk, Voronezh, and Rostov Oblasts.

Every single missile impacted. Not a single Patriot… pic.twitter.com/vXUKsehk4s

— AMK Mapping 🇳🇿 (@AMK_Mapping_) August 5, 2026

But on the flip side Ukraine has only expanded its own long-range drone attacks on Russian territory, including on the capital city.

Moscow Mayor Sergey Sobyanin has explained to TASS that "In recent months, the number of drones launched toward Moscow has increased significantly. And overall, of all the attacks carried out almost daily against Russian territory, two-thirds of the drones are heading toward Moscow."

Last month Zelensky had announced a 40-day "operation of influence" - describing a multi-pronged campaign of long-range drone strikes intent on forcing Moscow to halt the war and get to the negotiating table on terms favorable to Ukraine. The Russian military has all the while also been upping its response.

Tyler Durden Wed, 08/05/2026 - 12:10

Middle East War Triggers New Global Refining Boom

Submitted By Tsvetana Paraskova of OilPrice.com

For the second time this decade, a war has upended global oil markets and sent oil prices and refining margins to multi-year highs, benefiting the world’s biggest oil companies and top refiners.

The war in Iran has tightened fuel supply as crude oil has struggled to move through the Strait of Hormuz, triggering reduced refining throughput in Asia and a temporary Chinese ban on exports. The fuel markets tightened even more than the crude market to send refining margins to record highs.

And the biggest refiners benefited from the new refining boom, with Big Oil reporting their highest second-quarter earnings since the previous outbreak of a war, the Russian invasion of Ukraine in 2022. The bumper earnings were driven not only by the jump in oil prices between April and June—the contribution of the refining and trading divisions was also fundamental for fueling the high profits.

Record Refining Margins

Despite the slump in crude prices and the extreme volatility in the past five months, the refined product market continues to tighten with refining margins at record highs because the supply of petroleum products is much tighter than crude supply.

Refining margins held at record highs even as crude oil prices soared to $100 per barrel and above. That’s because global gasoline, diesel, and jet fuel supply is tightening and has been tightening for months amid a combination of factors, most stemming from the wars in Iran and Ukraine.

Last month, refining margins for gasoline and diesel jumped to new record highs amid on-and-off escalation in the Middle East, Russia’s ban on diesel exports, and crumbling global fuel inventories.  

In a rare statement last month, Fatih Birol, the executive director of the International Energy Agency (IEA), said that “There is no room for complacency on oil security amid the escalation in hostilities and a continued drawdown of available commercial inventories.”

While assuring markets that IEA countries still hold more than 1 billion barrels of government-controlled stocks, Birol said that “Refinery activity and product supplies have not picked up as much as crude deliveries, meaning that markets for refined oil products, including diesel and gasoline, are considerably tighter than those for crude.”

Big Oil’s Bumper Profits

As a result of the tight fuel markets and soaring refining margins, the world’s biggest international oil companies reported their strongest earnings for the second quarter since at least 2022. They also expect refining to continue providing high earnings in the short term amid distorted fuel markets with restricted supply and refining capacity.

Shell, for example, more than doubled its second-quarter earnings from a year earlier, as higher oil and gas prices, record refinery utilization, and strong trading boosted profits to above analyst expectations.

Refinery utilization at Shell was 102% in April to June, compared with 99% in the first quarter of 2026, mainly due to lower planned and unplanned maintenance activities. Strong refining and chemical margins also boosted Shell’s earnings in the past quarter.

Shell’s global indicative refining margin rose to $24 from $17 per barrel in the first quarter, while the global indicative chemical margin doubled to $270 per ton, from $139 per ton.

“The operational performance of Refining has been excellent,” CEO Wael Sawan said on Shell’s earnings call.

TotalEnergies’ adjusted net income jumped by 68% from a year earlier to $6 billion for the second quarter of 2026 as the jump in oil prices and refining margins boosted earnings and cash flows.

The European Refining Margin Marker for the supermajor rose by 19% quarter-to-quarter and soared nearly threefold year-to-date compared to the first half of 2025, to $12.4 per barrel, up from $4.3 a barrel.

“Refining and Chemicals performed in an exceptional way leveraging market conditions, managing well the tensions on supply of refined products to maximize captured margins,” TotalEnergies CEO Patrick Pouyanné said on the earnings call.

The U.S. supermajors, ExxonMobil and Chevron, also reported their highest earnings in years, drawing criticism from U.S. President Donald Trump, who this week said they are making “too much money” and “They’re going to give some of that back to the public and they better cut the retail price, the consumer price.”

Chevron had record refinery throughput of over 1 million barrels per day for the second quarter, CEO Mike Wirth said on the earnings call on Friday.

“Middle distillates are really the tight spot right now. Initially, it looked like jet, now diesel,” the executive noted, saying that European diesel demand could soon start rising from relatively weak levels in Q2 amid restocking of heating oil ahead of winter.

“That lands on top of the export ban from Russia, refinery outages in Russia, the obvious constraints that exist in the Strait,” Wirth added.

China and its demand is a big unknown for the market now, but Chevron doesn’t see a significant scale of demand destruction, said the executive, adding “I think we're going to see some upward pressure on product pricing here into the third quarter and perhaps beyond that.”

Exxon’s CEO Darren Woods said the supermajor expects continued “very robust refining market with very high margins.”

Even if supply disruptions are resolved by the end of the year and crude and fuels flows from the Middle East are restored, low global inventories and the need to restock could support the global refining complex for a few more quarters.

Tyler Durden Wed, 08/05/2026 - 11:50

Progressive El-Sayed Wins Michigan's Democratic Senate Primary

Authored by Jacob Burg via The Epoch Times,

ANN ARBOR, Mich. - Progressive Abdul El-Sayed narrowly defeated establishment candidate Rep. Haley Stevens (D-Mich.) to win the Michigan Democratic Senate primary in a contentious race that became a proxy fight for the broader battle within the party over its direction.

Michigan Democratic Senate candidate Abdul El-Sayed speaks at a rally in Canton, Mich., on July 29, 2026. Jacob Burg/The Epoch Times

El-Sayed beat his centrist opponent, Rep. Haley Stevens (D-Mich.), 48.5 percent to 47.5 percent, with 99 percent of the votes tabulated. The Associated Press called the race at 9:54 a.m. ET on Aug. 5.

The progressive will take on Republican Mike Rogers in November in the race for Michigan's battleground Senate seat.

El-Sayed faced more than $60 million in outside spending in support of Stevens, compared to around $4.6 million spent to support his campaign.

The race became a flashpoint in a wider ideological battle taking place nationwide in the Democratic Party between progressives and establishment centrists.

A number of progressive leaders, including Sens. Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.), and Reps. Alexandria Ocasio-Cortez (D-N.Y.), Rashida Tlaib (D-Mich.), and Ro Khanna (D-Calif.) endorsed El-Sayed ahead of the Aug. 4 primary.

Stevens received support from outgoing Sen. Gary Peters (D-Mich.), as well as Gov. Gretchen Whitmer (D), Senate Minority Leader Chuck Schumer (D-N.Y.), and Sens. Jeanne Shaheen (D-N.H.), Catherine Cortez Masto (D-Nev.), and Ruben Gallego (D-Ariz.).

A Rhodes Scholar and epidemiologist, El-Sayed was the director of the Wayne County Health Department from 2023 to 2025. He ran on a platform supporting Medicare for All, abolishing Immigration and Customs Enforcement (ICE) in favor of bringing back the Immigration and Naturalization Service (INS), passing a moratorium on U.S. data centers, and ending U.S. military support for Israel.

Stevens began her political career working on the 2008 Hillary Clinton presidential campaign, before pivoting to President Barack Obama's campaign after he clinched the nomination that year. She then served as chief of staff for Obama's auto rescue program - experience she championed throughout her campaign for Senate.

Running on a broadly liberal platform of lowering costs, rebuilding the auto industry, and bringing back manufacturing to Michigan, Stevens faced criticism from progressives like El-Sayed for defending continued U.S. military support of Israel and for accepting record financial support from the American Israel Public Affairs Committee (AIPAC) this year.

AIPAC and its associated groups - which supported Stevens' successful primary battle against then-Rep. Andy Levin (D-Mich.) in 2022 - had spent $30.6 million on the race by July 30, its largest election expenditure in history.

El-Sayed highlighted the record expenditures on the campaign trail over the past month, telling rallygoers that AIPAC was trying to "buy" the race away from Michiganders.

Asked about AIPAC's ongoing financial support for her during a July 27 debate, Stevens said her support for Israel was more nuanced but didn't address the record spending.

"I believe in a two-state solution. [El-Sayed] has attacked me for supporting that people in Palestine and Israel deserve to live side by side peacefully. And [Benjamin Netanyahu] has attacked me by name, and they both represent the extremes," Stevens said.

After a rally in a coffee shop in Canton Township on July 29, El-Sayed told reporters that he believes American taxpayer money is being wasted to support foreign militaries overseas.

"We pay more for all we have to buy. We pay less for the work we do. [We] watch as our tax dollars get misappropriated to drop bombs and buy tanks for foreign countries instead of building schools and healthcare for our own," El-Sayed said.

Electability Argument

The closing argument of Stevens' campaign was that she is more electable in a November matchup against Rogers, who lost to Sen. Elissa Slotkin (D-Mich.) by less than 20,000 votes in 2024, when President Donald Trump won Michigan.

In a flurry of text messages sent out in the twilight hours of the primary race, Stevens claimed she was the only Democrat who could defeat a Republican in purple Michigan.

The congresswoman seized on a July 28 Glengariff Group poll that measured hypothetical matchups of Stevens vs. Rogers and El-Sayed vs. Rogers.

That poll gave Stevens a 0.8-point advantage over Rogers, while by contrast, the Republican led El-Sayed by more than 10 percentage points.

"Poll after poll shows I'm the strongest Democrat to beat Mike Rogers. But MAGA Republicans and their billionaire donors are trying to boost my opponent to shut down our momentum," Stevens wrote in a campaign text sent on Aug. 2.

However, a Mitchell Research poll released on July 31 found Rogers and El-Sayed tied in a hypothetical matchup, whereas Stevens trailed the Republican by 4 percentage points.

"Highly electable candidates don't usually need $60 million to come in to help them get elected. That is a historical amount of money," El-Sayed told The Epoch Times after his rally in Ypsilanti, Michigan, on July 30.

"If you can't get elected without $60 million, you're not electable," he added.

And of course, Trump has some thoughts about 'her':

Tyler Durden Wed, 08/05/2026 - 11:15

WTI Maintains Losses After Another SPR Drain, Distillate Stocks At 30-Year Seasonal Lows

Oil prices have roller-coastered overnight - higher on new Houthie attacks in the Red Sea and now lower on reports that a draft deal approval in imminent.

Up...

A Houthi military spokesperson said the group would escalate attacks on Saudi vessels in the northern Red Sea — the latest workaround for the kingdom’s exports to avoid the perilous Bab al-Mandab Strait off Yemen’s coast to the south. Exports from the Red Sea have become a vital lifeline for Saudi Arabia since the Iran war choked off shipping from the Persian Gulf.

Down...

Axios reported the US, Iran and Oman were nearing an interim, 60-day accord to reopen the waterway, with Washington aiming for an announcement later Wednesday. The proposal would involve no tolls or fees, with inbound vessels using a northern lane, and outbound traffic a southern one.

But in the short-term, and especially in light of the recent decline in refined product prices, all eyes are on the official inventory and supply data (which API reported a crude build and diesel draw).

API

• Crude +2.7mm (-2.1mm exp)

• Cushing +2.4mm

• Gasoline +200k

• Distillates -1.2mm

DOE

• Crude +2.48mm (-2.1mm exp)

• Cushing +2.36mm - biggest build since March

• Gasoline -1.64mm

• Distillates -3.47mm

After last week's huge crude draw, this week saw a modest (2.48mm) build in inventories while Cushing stocks soared 2.36mm barrels (the most since March). Products saw sizable draws...

The Trump admin drained another 2.84mm barrels (smallest since the start of the war) from the SPR last week, making a total decline of 110mm barrels since the start of the war...

Cushing stocks rose very marginally off 'tank bottoms'...

Seasonally, distillate stockpiles are now at their lowest since 1996, driven by a 5.2 million barrel draw on the Gulf Coast. That’s the largest pull on stocks for the region since February 2021.

US Crude production ticked up modestly last week - just shy of record highs...

US refiners are importing the most crude since May of this year as refiners continue to run hard, churning through over 17 million barrels of oil each day.

Bloomberg reports that Gulf Coast crude refinery runs fell but remained at the highest levels for this time of the year. The drop can be partly explained by a blip in operations at the Marathon Garyville refinery. The Louisiana facility shut down its 283,000-barrel-a-day crude unit and a vacuum distillation unit last week. The units were restarted on Monday.

Meanwhile, crude exports are holding below 4 million barrels a day, far from the nearly 6.5 million daily barrels earlier this year as the Iran war disrupted global supply.

WTI is lower and maintaining the decline after the official inventory data...

Even if a short-term deal to normalize commercial shipping is reached, however, it might still fail to end the war or resolve Trump’s concerns about the Islamic Republic’s nuclear program.

“It’s still very unclear who is negotiating with whom and what could come out of this agreement,” said Hamad Hussain, a climate and commodities economist at Capital Economics.

“As we’ve seen before, these deals can very easily collapse. That’s obviously a risk we’ll see persist, even after a deal may be announced.”

Meanwhile, Bloomberg reports that the Houthis remain a source of concern for shipowners. People familiar with the matter said this week that Saudi Arabia had held talks with the militants through Omani mediators in an effort to prevent the conflict from widening. They said the leading OPEC member is continuing to prepare military options should negotiations fail.

Tyler Durden Wed, 08/05/2026 - 10:38