Study finds way to make resistant bacteria more vulnerable to antibiotics

News Ghana
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Study finds way to make resistant bacteria more vulnerable to antibiotics

South Korean researchers engineered a delivery system that let a last-resort antibiotic work at lower doses against drug-resistant E. coli in mice.

Researchers at Pusan National University in South Korea have identified a bacterial peptide that makes drug-resistant strains of E. coli more vulnerable to polymyxins, a class of antibiotics used as a last resort against severe infections, according to a study published July 1 in the journal Drug Resistance Updates.

The team, led by chemistry professor Kwang-sun Kim, screened 91 bacterial small non-coding RNAs and identified one called RyfA, which encodes a peptide named TimP. The peptide binds to an outer membrane protein called LamB, triggering changes in the bacterial cell envelope that make it easier for polymyxins to penetrate. Polymyxins are among the few remaining treatments for infections caused by multidrug-resistant gram-negative bacteria, but their use is limited by kidney and nerve toxicity at the doses currently required.

The researchers then packaged TimP together with the antibiotic polymyxin B into engineered extracellular vesicles, describing the resulting delivery system, called PMB@TimP EVs, as a “Trojan-horse” approach that delivers the drug directly to bacteria while simultaneously weakening their defenses.

In laboratory tests, the engineered vesicles improved bacterial killing and caused less toxicity to mammalian cells than the antibiotic alone. In mice with sepsis caused by multidrug-resistant E. coli, the treatment improved survival at doses where the antibiotic alone did not protect the animals, and researchers found no abnormal buildup of the treatment in major organs.

The study has so far only been tested in bacterial cultures and mice, and the researchers said further work, including safety and manufacturing studies, would be needed before it could be tested in humans. They also said LamB, the protein the treatment targets, is present in Salmonella Typhimurium, suggesting the approach could potentially extend to other drug-resistant bacteria beyond E. coli.

“With the development of new antibiotics failing to keep pace with bacterial evolution, maximizing the efficacy of existing resources will become the primary strategy to bridge the therapeutic gap in clinical settings,” Kim said.

It’s Time to Rethink PANAFEST and Emancipation Day

Emmanuel Frimpong
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It’s Time to Rethink PANAFEST and Emancipation Day

Nearly three decades on, Ghana’s flagship diaspora festivals still move people emotionally. It’s time they moved the economy too, writes tourism analyst Emmanuel Frimpong.

By Emmanuel Frimpong, Tourism Analyst and Consultant

Nearly three decades after the launch of the Pan-African Historical Theatre Festival, and many years of commemorating Emancipation Day, Ghana stands at a crossroad as it marks another edition of both from July 23 to August 1, 2026. These celebrations have helped preserve the memory of the transatlantic slave trade, reconnected Africans in the diaspora with the continent, and positioned Ghana as a spiritual home for people of African descent. They inspired initiatives such as the Year of Return and Beyond the Return, and reinforced Ghana’s image as the gateway to Africa.

Yet an honest question deserves asking: are PANAFEST and Emancipation Day still achieving their intended objectives, or have they become largely ceremonial events in need of a new vision? I believe the time has come, not to abandon these historic celebrations, but to fundamentally rethink and reposition them for the 21st century.

A noble vision, an aging format

PANAFEST was conceived as more than a cultural festival. It was meant to promote Pan-Africanism, healing, reconciliation, historical education, cultural exchange and investment between Africa and its diaspora. Emancipation Day similarly serves as a solemn reminder of the abolition of slavery and honours the millions of Africans who suffered one of humanity’s greatest tragedies. Those objectives remain relevant, but the context in which the festivals were created has changed dramatically. Today’s Africa faces youth unemployment, climate change, digital transformation, migration, artificial intelligence, investment deficits and skills gaps, issues that now define the continent’s future as much as remembering its past.

Every year, thousands gather at Cape Coast, Elmina and, more recently, Tamale to remember slavery through emotional ceremonies, candlelight vigils and symbolic processions. These remain necessary, but remembrance alone cannot build Africa’s future. Many young Ghanaians and other Africans leave these events emotionally inspired but without real opportunities to contribute to the continent’s development. Descendants of enslaved Africans increasingly ask practical questions: how can we invest in Africa, start businesses, send our children to study here, transfer technology and create jobs? PANAFEST has not evolved enough to answer them.

The world has also changed since PANAFEST began in 1992. Globalisation was then still emerging; today the global African community is connected through digital technology, diaspora engagement has grown more sophisticated, and countries compete for investment, talent and influence. Many African nations have built creative industries, innovation hubs and cultural diplomacy programmes that connect heritage to economic development. PANAFEST, by contrast, remains organised largely around conferences, durbars, cultural performances and memorial activities. These are valuable, but no longer sufficient.

From commemoration to investment

One of PANAFEST’s biggest weaknesses is its limited economic impact. Imagine if the festival also became Africa’s largest diaspora investment forum, a Pan-African innovation summit, a youth entrepreneurship convention, a creative industries marketplace, a tourism investment expo, a heritage technology exhibition, a diaspora property and investment fair, and an African university collaboration platform. Such additions would turn remembrance into economic empowerment, sending visitors home not just moved but having signed business agreements, research partnerships, investment commitments and educational exchanges.

Youth participation is another concern. Many young Ghanaians and Africans see PANAFEST as an event designed mainly for older generations or diaspora visitors, yet over 60% of Africa’s population is under 30. If young people do not see themselves reflected in the festival, its future is uncertain. It should become Africa’s largest gathering of young innovators, entrepreneurs, creatives, tourism professionals, researchers and future leaders, who should be shaping conversations about Africa’s future, not merely performing cultural dances.

There is also untapped tourism potential. Many international visitors spend only a few days in Ghana during the celebrations, rarely travelling beyond selected heritage sites or engaging with local communities. A redesigned PANAFEST should encourage visitors to experience Ghana’s national parks, ecotourism destinations, cultural villages, gastronomy, creative arts, museums, universities and business ecosystems, which would increase visitor spending, length of stay and regional tourism development.

A blueprint for renewal

The success of the Year of Return showed Ghana’s convening power; the challenge now is sustaining that momentum. Rather than launching separate initiatives every few years, Ghana should establish PANAFEST as Africa’s permanent platform for diaspora engagement, with every edition producing measurable outcomes: investment commitments, research collaborations, student exchanges, tourism partnerships, business deals, technology transfers, skills programmes, youth employment initiatives and policy recommendations. Without measurable outcomes, festivals risk becoming symbolic rather than transformational.

A reimagined PANAFEST should include several strategic pillars: an annual Global African Investment Forum connecting governments, entrepreneurs, investors and diaspora business leaders; a Pan-African Youth Leadership and Innovation Summit focused on entrepreneurship, technology, tourism and sustainable development; an African Heritage Tourism Expo for destinations, museums, tour operators, airlines and hospitality businesses; a Diaspora Skills Exchange Programme enabling African professionals abroad to contribute expertise in medicine, engineering, education, technology and governance; a PANAFEST Research and Policy Forum bringing together universities, think tanks and policymakers; the integration of digital tools such as virtual reality and interactive museums to engage younger audiences; decentralised activities so every region of Ghana benefits economically; and annual impact reports measuring tourism receipts, investments secured, jobs created and partnerships formed.

True emancipation today extends beyond remembering the abolition of slavery. It means liberation from poverty, unemployment, poor education, corruption, underdevelopment, dependency and technological exclusion. If PANAFEST and Emancipation Day can inspire Ghana and Africa to confront these modern forms of bondage, they will become more meaningful than ever.

History must never be forgotten, and the memory of slavery remains essential to understanding our collective identity. But remembrance should inspire action. PANAFEST and Emancipation Day should no longer be viewed simply as commemorative festivals; they should become engines of tourism development, investment promotion, youth empowerment, innovation, research, cultural diplomacy and continental cooperation. Ghana has already shown what visionary leadership can achieve through the Year of Return. The next step is to transform PANAFEST from a festival of remembrance into a movement for African renewal, so that we honour the past while building the future our ancestors dreamed of.

Albie Sachs: The Judge Who Chose Reconciliation Over Revenge

Emmanuel Frimpong
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Albie Sachs: The Judge Who Chose Reconciliation Over Revenge

At 90, the former Constitutional Court justice reflects on the life that shaped South Africa’s constitution, from apartheid-era imprisonment to a car bomb that nearly killed him.

On a warm afternoon in Potsdam, Germany, I sat across from one of the jurists who helped shape modern South Africa, Justice Albie Sachs. At 90, his voice remains gentle but resolute, his humour intact, and his belief in humanity as compelling as ever. For nearly an hour, we spoke about justice, freedom, reconciliation and democracy. Before sharing that conversation, his own story is worth telling first.

Sachs is a lawyer, freedom fighter, constitutional architect, author and one of the moral voices who helped shape modern South Africa. His life traces a path from resilience under oppression to forgiveness over vengeance, and a lasting commitment to the rule of law.

Born in Johannesburg in 1935 to politically active parents, Sachs grew up in a household where justice, equality and human dignity were everyday subjects of conversation. His parents were active in the struggle against racial discrimination, and from an early age he saw the injustices that would later define his career.

He studied law at the University of Cape Town and was admitted to the Bar in his early twenties. He quickly built a reputation for representing Black South Africans, trade unionists and political activists persecuted under apartheid, at a time when the legal system was routinely used to enforce racial segregation.

That work put him in the sights of the apartheid state. He was detained without trial on multiple occasions in the 1960s and held for prolonged periods in solitary confinement. The imprisonment did not silence him. He remained committed to the idea that the law should serve humanity, not political power.

As government repression intensified, Sachs went into exile, spending years in the United Kingdom and later Mozambique, where he continued working with the African National Congress. In exile, he helped develop legal and constitutional ideas that would later shape democratic South Africa.

Then came a defining moment. In 1988, while living in Maputo, a car bomb planted by agents of the apartheid regime exploded as he entered his vehicle. The blast destroyed his right arm and permanently damaged the sight in one eye. It could easily have killed him. Instead, it became another turning point.

Many would have responded to such violence with bitterness or calls for revenge. Sachs chose differently. During his recovery, he thought not about retaliation but about the kind of society South Africa should become once freedom was achieved. He emerged convinced that democracy could only endure if it was built on constitutionalism, reconciliation and respect for human dignity.

When apartheid ended, Sachs helped shape South Africa’s constitutional negotiations before Nelson Mandela appointed him as one of the first judges of the newly established Constitutional Court in 1994.

Over the next fifteen years, Sachs took part in landmark decisions that helped define one of the world’s most admired constitutions. His judgments consistently held that the law should protect human dignity, equality, freedom and inclusion, and he became particularly known for rulings advancing gender equality, children’s rights, freedom of expression, restorative justice and the rights of marginalised communities.

What distinguished Sachs was not only his legal reasoning but his humanity. He often told audiences that constitutions are not simply collections of legal provisions but living expressions of a society’s shared values, and that the law should never lose sight of the people it exists to serve.

Throughout his career, he has argued for reconciliation over retribution, maintaining that lasting peace depends on acknowledging past injustices while building institutions capable of protecting future generations. His own life stands as evidence that forgiveness is not weakness but an act of courage.

Since retiring from the Constitutional Court in 2009, Sachs has remained an active voice on constitutional democracy, judicial independence, human rights and inclusive governance, lecturing at universities, advising on constitutional reform, and writing widely read books.

His story resonates well beyond South Africa. Across the continent and elsewhere, democracies continue to confront questions about the rule of law, human rights, corruption and national reconciliation. Sachs argues that democracy cannot survive on elections alone, and that it requires ethical leadership, independent institutions, active citizens and respect for the dignity of every individual.

For young lawyers, judges, public servants and political leaders, his life offers a lesson: leadership is measured by principle, not power. His story shows that courage is often quiet, that justice requires patience, and that reconciliation can become a nation’s greatest strength.

As our conversation in Potsdam ended, it was a reminder that some people leave their mark not through wealth or office but through the values they embody. Sachs turned personal suffering into public service and helped build a constitutional order admired around the world.

Readers will soon hear directly from Justice Sachs in an exclusive interview reflecting on his journey, the lessons of South Africa’s democratic transition, and his hopes for the future of Africa and the world.

Unilever Ghana posts 252% jump in half-year profit

Roger A. Agana
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Unilever Ghana posts 252% jump in half-year profit

The consumer goods company reported higher margins and stronger sales for the six months to June, driven by growth in its Personal Care, Home Care and Beauty & Wellbeing brands.

Unilever Ghana PLC reported profit before tax of GH¢167.4 million for the six months ended June 30, up 252.2% from GH¢47.5 million in the same period last year, according to the company’s unaudited financial statements.

Revenue rose 13.6% to GH¢606.2 million from GH¢533.9 million, which the company attributed to growth in its Power Brands across the Personal Care, Home Care and Beauty & Wellbeing categories. Gross profit margin widened to 53% from 36%, while operating profit margin rose to 27.3% from 9.3%, which the company said reflected a more favourable product mix, cost discipline and operational efficiency gains.

Profit after tax came to GH¢125.6 million, up from GH¢25.5 million, with earnings per share of GH¢1.0044 compared with GH¢0.2040 a year earlier.

The company’s cash and bank balances stood at GH¢297.9 million at the end of June, up from GH¢66.7 million a year earlier. Total assets rose to GH¢731.3 million from GH¢477.6 million, while total equity increased to GH¢340.8 million from GH¢216.9 million. The statement of financial position shows dividend payables of GH¢62.5 million as at June 30, against none in the prior-year period.

The financial statements were prepared under International Financial Reporting Standards and in accordance with Ghana’s Companies Act, 2019.

US imposes new tariffs on 60 trading partners over forced labor

Roger A. Agana
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US imposes new tariffs on 60 trading partners over forced labor

The tariffs, ranging from 10% to 12.5%, took effect Friday and cover nearly all of America’s major trading relationships, replacing levies that expired the same day.

The United States imposed new tariffs of 10% to 12.5% on imports from 60 economies starting July 24, citing what the Trump administration said was inadequate enforcement of bans on goods made with forced labor. The countries account for about 99% of US imports.

The US Trade Representative’s office took the action under Section 301 of the Trade Act of 1974, replacing a temporary 10% tariff that had been in place under a separate legal authority since February, when the Supreme Court ruled the administration had exceeded its power in imposing an earlier round of global tariffs under emergency powers.

Canada, Mexico, India and the UK are among the trading partners facing the lower 10% rate, tied to steps those governments have taken toward banning forced-labor imports. Japan, Switzerland, South Korea and dozens of others face 12.5%. Oil, gas, fertilizer, and goods qualifying under the US-Mexico-Canada Agreement are among the products exempted.

Several governments rejected the administration’s rationale. Australia’s trade minister called the tariffs on his country “unjustified,” and New Zealand’s prime minister said the investigation “did not provide meaningful evidence” to support the forced-labor claims. Brazil, facing the 12.5% rate, said it would pursue a complaint with the World Trade Organization and consider retaliatory tariffs. The European Union also disputed the accusation.

A separate US investigation into industrial overcapacity in 16 other economies is ongoing, according to the Office of the US Trade Representative.

Nigel Green, chief executive of the financial advisory firm deVere Group, said the scale of the tariffs poses risks many investors have not priced in. “Diversification on paper means nothing if half your holdings quietly depend on the same handful of manufacturing regions or shipping routes,” Green said, adding that currency markets, bond yields and equity sector rotation are likely to move in the coming weeks.

IATA launches monthly aviation safety workshops for Africa

Roger A. Agana
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IATA launches monthly aviation safety workshops for Africa

The airline body says the initiative aims to close a persistent gap between Africa’s accident rate and the global average.

The International Air Transport Association has launched a series of monthly safety workshops for African aviation professionals, aiming to improve a regional accident rate that remains the highest of any region worldwide.

The workshops, delivered under IATA’s Collaborative Aviation Safety Improvement Program, began this month with an in-person safety management systems workshop in Nairobi, supported by Boeing, Kenya Airways and the International Federation of Air Line Pilots’ Associations. Further sessions are scheduled monthly through November, covering ground operations risk, space debris awareness, runway safety and GNSS radio frequency interference.

Africa’s all-accident rate improved to 7.86 accidents per million sectors in 2025, down from 12.13 in 2024 and below the region’s five-year average of 9.37, according to IATA’s 2025 safety report. The rate remains roughly six times the global average of 1.32 per million sectors, and Africa recorded the highest regional accident rate for a second consecutive year. The same report found the region’s fatality risk rose to 2.19 in 2025, up from zero the previous year.

Kamil Alawadhi, IATA’s regional vice president for Africa and the Middle East, said the workshops are intended to share industry expertise and practical tools with safety professionals across the continent. “As this is still several times the global average, we have more work to do,” Alawadhi said.

CASIP, launched in 2023 under IATA’s Focus Africa initiative, brings together regulators, airlines and manufacturers including the African Civil Aviation Commission, the African Airlines Association, Airbus, Boeing, the European Union Aviation Safety Agency, the US Federal Aviation Administration, the International Civil Aviation Organization and Kenya Airways. The program’s stated aims include identifying operational safety gaps, running corrective action plans, and improving how safety data is collected and shared across the region.

IATA represents more than 370 airlines accounting for about 85% of global air traffic.

Barry Callebaut ends two long-running distribution deals

Roger A. Agana
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Barry Callebaut ends two long-running distribution deals

Trade publication CocoaRadar reported the Swiss chocolate maker ended partnerships in Australia and Malaysia within days of each other, without disclosing its reasons.

Barry Callebaut has ended two distribution partnerships spanning nearly 60 years combined, in Australia and Malaysia, within days of each other, according to CocoaRadar, a cocoa and chocolate industry intelligence publication.

CocoaRadar reported that Barry Callebaut ended its 32-year distribution relationship with Bidfood Malaysia, giving the distributor one month’s notice. A customer memorandum obtained by the publication said Barry Callebaut products would leave Bidfood Malaysia’s portfolio from October 1. The report followed an earlier CocoaRadar story on the end of Barry Callebaut’s 27-year partnership with Australian distributor F Mayer Imports.

Neither company has disclosed the commercial reasons for the changes, CocoaRadar said. Barry Callebaut has not confirmed the moves are part of a coordinated global restructuring.

Responding to CocoaRadar’s questions, Barry Callebaut said it “regularly reviews its route-to-market approach” and does not comment on confidential commercial arrangements, adding that its focus remains on continuity of supply. CocoaRadar said the statement closely matched the company’s earlier response on the Australian changes.

In Australia, F Mayer Imports has launched its own Belgian couverture chocolate brand, Mayern, aimed at the professional bakery and foodservice market, CocoaRadar reported. The family-owned distributor, which had represented Barry Callebaut since 1999, said the move followed Barry Callebaut’s shift toward a more direct route-to-market model. Gary Willis, who manages the company’s chocolate and patisserie division, described it as the biggest change in a partnership spanning more than 25 years, according to the report.

CocoaRadar said the timing and similarity of the two distributor exits are likely to draw attention across the global food ingredients sector, though it noted Barry Callebaut has not publicly linked the two decisions.

Study links Chinese mining in Ghana to policy neglect

Roger A. Agana
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Study links Chinese mining in Ghana to policy neglect

New research from CDD-Ghana argues that decades of state neglect of small-scale mining, not simply illegality, explain why Ghanaian miners keep partnering with Chinese financiers.

Chinese involvement in Ghana’s artisanal and small-scale gold mining sector is driven less by external infiltration than by the long-standing exclusion of small-scale miners from land, credit and licensing, according to a research paper published in February by the Ghana Center for Democratic Development.

The paper, authored by researchers Gioia Serena Wang and Elena Weinreich, draws on 15 interviews with civil society groups, academics, Ghanaian miners and Chinese financiers, alongside a review of academic literature and Chinese-language news sources. Small-scale gold mining is legally reserved for Ghanaian nationals under the Minerals and Mining Act of 2006, meaning most Chinese participation in the sector is illegal regardless of who formally holds a mining licence.

Barriers miners face

The study traces the sector’s vulnerability to foreign involvement to economic reforms Ghana adopted in the 1980s under IMF and World Bank-backed structural adjustment, which it says favoured large-scale industrial mining over small-scale operators. That legacy, researchers argue, left small-scale miners without meaningful access to capital, land or state support.

Commercial banks typically require geological data to assess lending risk, but most small-scale operators lack the resources to conduct that prospecting themselves, creating what the report calls a “self-reinforcing trap.” Dr Richard Kumah, an independent researcher interviewed for the study, said miners have no government-funded lending scheme to turn to and are “always looking for external sources” of finance.

Licensing costs, which the report estimates at $4,000 to $5,000 once fees, environmental assessments and land registration are included, present a further barrier for what several interviewees described as a poverty-driven sector. Applications must also be processed in Accra by the Minerals Commission, adding travel costs for miners elsewhere in the country.

How the partnerships work

The report describes Chinese entry into the sector as typically organised through personal and business networks, including Chinese nationals already working in other industries in Ghana and social media platforms such as Douyin. Once a site is identified, Chinese financiers commonly rent land from chiefs or landowners and pair with a Ghanaian who holds or can front a mining concession, since Ghanaian law restricts licences to citizens.

Under these arrangements, the report says Chinese partners typically finance equipment and labour and take the majority share of gold produced, while Ghanaian concession holders receive an estimated 15% to 30% of profits, though terms vary and are not always honoured. One Ghanaian miner interviewed for the study, identified only as Isaac, said some Chinese operators pay nothing after using local miners to locate gold-bearing sites.

The paper also documents what it calls a “double marginalisation” of small-scale miners priced out of land by Chinese buyers able to pay far more than they can, and a “triple marginalisation” of women in the sector, who researchers said were already confined to lower-income tasks before mechanisation reduced demand for manual labour they had traditionally performed.

Enforcement and recommendations

The Ghanaian government has responded to Chinese involvement in the sector with visa restrictions, bans on foreign participation in gold trading, and enforcement operations including Operation Vanguard, a 2017 military task force that destroyed mining equipment at illegal sites. The report argues these measures reduced the visible presence of Chinese miners but did not resolve the underlying incentives driving the partnerships, and in some cases made banks more reluctant to lend to the sector at all.

The paper recommends steps including decentralising the licensing process to regional offices, creating dedicated financing mechanisms for small-scale miners, auditing idle large-scale mining concessions for possible reallocation, and reforming how mineral royalties are distributed to affected communities. It also raises, with what the authors call “severe caution,” a proposal circulating among some experts and reflected in the government’s own reform plans to create a mid-tier mining licence that could formalise Chinese involvement, warning this could further marginalise Ghanaian operators if not carefully designed.

The Ghanaian government announced in January that it would overhaul the country’s mining legislation, a step the report’s authors described as a welcome development addressing some of the concerns raised in their findings.

WoPU rejects Atiku’s US forfeiture case disclosure on Tinubu

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WoPU rejects Atiku’s US forfeiture case disclosure on Tinubu

The pro-government coalition called the lobbying disclosure a political move, days after a Washington firm hired by Atiku Abubakar began circulating US Justice Department records to Trump administration officials and Congress.

Working People United, a coalition describing itself as representing labour unions, professionals and traders, has dismissed a decision by a US lobbying firm hired by African Democratic Congress presidential candidate Atiku Abubakar to submit historical American forfeiture records concerning President Bola Tinubu to US officials.

In a statement signed by its national coordinator, Comrade Williams Eniredonana Akporeha, the group called the move “political desperation” and said Tinubu has never been convicted of a crime in the United States or elsewhere.

The Washington-based firm, Von Batten-Montague-York, said this week it had begun distributing more than 60 pages of Justice Department records to the Trump administration, members of Congress and congressional staff. The documents concern a 1993 civil forfeiture case, United States v. Funds in Account No. 263226700 et al., in which federal investigators examined an alleged heroin trafficking operation between Nigeria and Chicago. Tinubu was named in the proceedings, along with two other individuals. The firm was retained by Atiku in March under a reported 12-month, $1.2 million lobbying contract.

Atiku and former Labour Party candidate Peter Obi raised the forfeiture case in petitions challenging Tinubu’s 2023 election victory. Nigeria’s Presidential Election Petition Court dismissed the argument, ruling that the case was civil rather than criminal and that the petitioners had not proven Tinubu was convicted of any offence or had misled the electoral commission by not disclosing it. The Supreme Court later upheld Tinubu’s election.

WoPU also pointed to a July 6 letter from US President Donald Trump to Tinubu, in which Trump praised what he called Tinubu’s “decisive leadership” in confronting terrorism and violence against Christian communities in Nigeria and reaffirmed US security cooperation with Abuja. The letter was made public last week by presidential spokesperson Bayo Onanuga.

The group said the commendation showed the international standing Tinubu holds and urged Nigerians to disregard what it described as attempts by “serial electoral losers” to discredit the president.

Brent crude tops US$100 as Red Sea attacks rattle markets

Roger A. Agana
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Brent crude tops US$100 as Red Sea attacks rattle markets

Oil hit its highest level since May as fresh Houthi attacks on Saudi tankers combined with a tech-earnings selloff to drag Wall Street lower.

Brent crude settled at $100.69 a barrel on July 23, up 7% and its highest close since May 26, after Yemen’s Houthi rebels claimed fresh attacks on two Saudi oil tankers in the Red Sea. The contract touched $102 during the session.

US crude also climbed sharply, extending a rally driven by weeks of fighting between the United States and Iran that has already disrupted the Strait of Hormuz. Traders said the Red Sea attacks raised the risk that a second major export route, alongside Hormuz, could face sustained disruption.

Wall Street fell alongside the oil move but not because of it alone. The S&P 500 dropped 1.2% to 7,408.30, the Dow Jones Industrial Average lost 506.93 points, or 1%, to 51,711.65, and the Nasdaq Composite sank 2.2% to 25,137.69. The declines came as Alphabet fell 7% and Tesla dropped 14% following earnings reports that raised concerns about the scale of AI-related spending, alongside the pressure from rising oil prices on business costs and consumer spending.

The move comes days before the Federal Reserve’s July 28-29 meeting, where policymakers are widely expected to hold rates steady at 3.5% to 3.75%. Annual inflation climbed to 4.2% in May, its highest level in years, before easing to 3.5% in June as gasoline prices fell during a ceasefire between the US and Iran. That ceasefire has since collapsed.

Nigel Green, chief executive of the financial advisory firm deVere Group, said the renewed oil spike complicates the inflation picture the Fed had been counting on. “The drop which gave the Fed room to relax may already be reversing,” Green said, adding that investors positioned for rate cuts later this year may need to reassess.

Benjamin Jones, global head of research at Invesco, said markets are pricing in the risk that Red Sea shipping stays constrained, adding that crude prices are likely to stay “near or above $100 per barrel over the coming months” if the disruptions and regional tensions persist.

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