Originally published at: https://peakprosperity.com/european-gas-crisis-looms-as-us-resumes-strikes-on-iran-the-pope-likens-ai-to-a-new-tower-of-babel/
Geopolitics
U.S. Central Command conducted strikes on Iranian missile launch sites and boats near the Strait of Hormuz. The IRGC stated that it shot down one U.S. drone and forced another drone and a fighter jet to leave the area. Secretary of State Marco Rubio said negotiations remain stalled over wording on Iran’s nuclear program and sanctions relief. Iranian Supreme Leader Mojtaba Khamenei stated in a Hajj message that Middle East nations will no longer serve as shields for U.S. bases. That said, oil prices reportedly declined on indications of progress toward reopening the Strait of Hormuz.
Meanwhile, President Trump posted on Truth Social that Saudi Arabia, the UAE, Qatar, Pakistan, Türkiye, Egypt, Jordan, and Bahrain should sign the Abraham Accords as part of an Iran settlement. He stated that signing should begin with Saudi Arabia and Qatar. A Saudi source told CNN that Riyadh’s position on the accords has not changed. Senator Lindsey Graham described the proposal as “brilliant.” Saudi Arabia and Pakistan reportedly rejected joining the accords in response to the proposal.
Turning to Ukraine, Russia’s Foreign Ministry announced strikes on Ukraine’s military-industrial complex, decision-making centers, and command posts. Moscow warned residents of Kiev to stay away from military and administrative infrastructure, and also advised foreign nationals and diplomats to vacate the city.
Energy
Equinor executives stated that one to three additional months of shipping disruptions in the Strait of Hormuz could create a critical shortage of natural gas in Europe. Storage levels stand at 35-37%, below the 50% seasonal average and the EU’s 80-90% winter target. Dutch reserves ended winter at 5.8%, with Germany near 20% and France around 27%. Inverted Dutch TTF spreads of roughly -€1.3/MWh have slowed summer injections. Equinor projects that TTF prices could reach €90/MWh under a prolonged blockage, leading to a 10 billion cubic meter reduction in gas-to-power demand. However, some market observers noted that European gas prices retreated on hopes for diplomatic progress reopening the strait.
Artificial Intelligence
Pope Leo XIV published his first encyclical, “Magnifica Humanitas.” The document frames the choice before humanity in the AI era as one between “a new Tower of Babel” and “the city in which God and humanity dwell together.” The pope stated that humanity should avoid “the idolatry of profit that sacrifices the weak” and the reduction of human persons to “data and performance.” The text addresses mass unemployment, transhumanism, cryptocurrency, cyberattacks, education, screen time, and AI in warfare, and calls for “rigorous ethical constraints.” Citing St. John Paul II, it describes potential AI-driven joblessness as a “grave evil” and “social calamity,” and recommends regulation that treats data as a “common or shared good.” Signed May 15, the encyclical quotes Tolkien and cites Martin Luther King Jr., Dorothy Day, and St. Teresa of Kolkata. Critics have argued that the document risks enabling overregulation that could stifle beneficial AI applications.
Contrasting this, in a New York Times op-ed, Goldman Sachs CEO David Solomon wrote that forecasts of widespread AI-driven job losses are overstated. He stated that AI will increase productivity, move workers to higher-value tasks, and create new roles in managing and regulating AI systems. Solomon cited Goldman economists’ projections that AI could automate 25% of current work hours over the next decade, with banking, law, accounting, software, and customer service most affected, and called for joint corporate-government efforts to manage the transition. His comments were consistent with remarks by Marc Andreessen, who stated that AI and robots are arriving at a time when they are needed to address shrinking populations. However, some surveys indicate that many executives are preparing for near-term AI-driven layoffs.
Economy
Semiconductor Manufacturing International Corp. shares reached a record in China after Huawei semiconductor chief He Tingbo presented the “Tau (τ) Scaling Law” at the IEEE ISCAS conference. The proposal replaces geometric scaling with time scaling to reduce signal propagation delay. Huawei stated that its “LogicFolding” architecture will be used in Kirin mobile chips this fall and reach 1.4-nanometer production by 2031. SMIC shares rose more than 18%, and Hua Hong Semiconductor shares reached daily limits. Skeptics note potential technical hurdles such as thermal issues and lower yields with the proposed architecture.
In the US, the Bureau of Labor Statistics data indicate that healthcare specialties account for the highest-paying jobs in the United States. Pediatric surgeons rank first in mean annual wages. The US is projected to face a shortage of more than 141,000 physicians by 2038. Outside healthcare, the highest mean annual wages are reported for airline pilots and engineers ($280.6K), chief executives ($262.9K), financial managers ($180.5K), and architectural and engineering managers ($175.7K). Healthcare spending is projected to grow faster than the overall economy through 2033. Some commentators attribute high healthcare costs to regulatory barriers rather than solely to physician compensation.
Health
A cross-sectional study of 2,192 Australian adults aged 40-70, published via the Healthy Brain Project, reported that higher consumption of ultraprocessed foods was associated with lower scores on tests of visual attention and processing speed. Using the Nova classification system, researchers found that each 10% increase in ultraprocessed food intake corresponded to reduced performance on standardized cognitive measures. Higher intake was also associated with elevated dementia risk. The cross-sectional nature of the study limits conclusions about causation, according to some methodological discussions.
Sources
Pope Leo’s AI Encyclical Warns of Godless ‘Tower of Babel’ Future
The risk of dehumanization — of building a future that excludes God and reduces the other to a means — is an ancient and ever-new temptation that today takes on a technical guise.
Source | Submitted by Walberga
Huawei’s Tau Scaling Breakthrough Sends SMIC Shares Soaring
Huawei Touts Sanctions-Busting Chip Breakthrough, SMIC Shares Erupt
Source | Submitted by pinecarr
Equinor Warns Hormuz Disruptions Could Sink Europe’s Gas Storage Targets
Europe could face a critical shortfall in natural gas stocks if shipping disruptions through the Strait of Hormuz persist for another 1-3 months, senior executives at Norwegian energy giant, Equinor ASA (NYSE:EQNR), have warned.
Healthcare Workers Dominate America’s Highest-Paid Jobs
The results show how concentrated high pay is in healthcare.
Goldman Sachs CEO Joins Andreessen in Rejecting AI Job Apocalypse Hysteria
The A.I. Job Apocalypse Is Overblown
Trump Demands Mandatory Abraham Accords, Floats Iran as Member
It should be mandatory that all of these countries, at a minimum, simultaneously, sign onto the Abraham Accords.
Russia Escalates Strikes on Kiev After Ukrainian Dormitory Attack
Russia’s Foreign Ministry announced that it will begin “systematic strikes” against targets in Ukraine’s capital Kiev following Ukraine’s attack on a college dormitory in the Russian town of Starobelsk last week.
Even Modest Ultraprocessed Food Intake Tied to Cognitive Decline
Even small amounts of ultraprocessed food cause measurable declines in cognitive function, according to a new study.
US Strikes Iranian Sites Near Hormuz as Ceasefire Talks Continue
U.S. forces conducted self-defense strikes in southern Iran today to protect our troops from threats posed by Iranian forces,