World
Guterres warns of UN’s ‘imminent financial collapse’
In his letter, Guterres said “decisions not to honour assessed contributions that finance a significant share of the approved regular budget have now been formally announced.”
The U.N. chief has told member states the organisation is at risk of “imminent financial collapse,” citing unpaid fees and a budget rule that forces the global body to return unspent money, a letter seen by Reuters on Friday showed.
U.N. Secretary-General Antonio Guterres has repeatedly spoken about the organisation’s worsening liquidity crisis but this is his starkest warning yet, and it comes as its main contributor the U.S. is retreating from multilateralism on numerous fronts.
“The crisis is deepening, threatening programme delivery and risking financial collapse. And the situation will deteriorate further in the near future,” Guterres wrote in a letter to ambassadors dated January 28.
The U.S. has slashed voluntary funding to U.N. agencies and refused to make mandatory payments to its regular and peacekeeping budgets.
U.S. President Donald Trump has described the U.N. as having “great potential” but said it is not fulfilling that, and he has launched a Board of Peace which some fear could undermine the older international body.
Founded in 1945, the U.N. has 193 member states and works to maintain international peace and security, promote human rights, foster social and economic development, and coordinate humanitarian aid.
In his letter, Guterres said “decisions not to honour assessed contributions that finance a significant share of the approved regular budget have now been formally announced.”
He did not say which state or states he was referring to, and a U.N. spokesperson was not immediately available for comment.
Under U.N. rules, contributions depend on the size of the economy of each member state. The U.S. accounts for 22% of the core budget followed by China with 20%.
But by the end of 2025 there was a record $1.57 billion in outstanding dues, Guterres said, without naming the nations that owed them.
“Either all Member States honour their obligations to pay in full and on time – or Member States must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” he said.
U.N. officials say the U.S. currently owes $2.19 billion to the regular U.N. budget, another $1.88 billion for active peace-keeping missions and $528 million for past peace-keeping missions.
The U.S. State Department did not immediately respond to a request for comment on the Guterres letter.
Guterres launched a reform task force last year, known as UN80, which seeks to cut costs and improve efficiency. To that end, states agreed to cut the 2026 budget by around 7% to $3.45 billion.
Still, Guterres warned in the letter that the organisation could run out of cash by July.
One of the problems is a rule now seen as antiquated whereby the global body has to credit back hundreds of millions of dollars in unspent dues to states each year.
“In other words, we are trapped in a Kafkaesque cycle expected to give back cash that does not exist,” said Guterres, referring to author Franz Kafka who wrote about oppressive bureaucratic processes.
World
Trump says he does not regret Iran war despite potential impact on midterm elections
U.S. President Donald Trump says he does not regret launching the war against Iran, despite its potential impact on the November midterm elections.
In an interview with Fox News host Laura Ingraham, Trump said that if given the choice again, he would take the same course of action, adding that he does not believe in the word “regret.”
Trump also dismissed suggestions that some of his supporters had become upset or demoralized over the war, saying they were proud that he was preventing Iran from obtaining a nuclear weapon.
He also reiterated his claim that the war would end immediately after the midterm elections, saying, “It ends right after the election.”
The conflict and the resulting rise in oil and gas prices have become a major political issue for Republicans ahead of the elections.
The United States and Israel launched attacks on Iran on February 28, while Iran responded with strikes on Israel and Gulf states hosting U.S. military bases. The fighting has reportedly killed thousands and displaced millions.
Trump has cited the weakening of Iran’s nuclear capabilities as one of the main objectives of the war. Iran, however, says its uranium-enrichment program is peaceful and maintains that it does not possess nuclear weapons.
World
Trump touts $5,000 payout if Republicans win as Vance waits in wings
It was not immediately clear how the $5,000 payments would work or whether they would be legal. The proposal would likely cost more than $1 trillion, with approximately 270 million U.S. adults, and could require the approval of Congress.
President Donald Trump capped the first day of his Republican Party’s first-ever midterm convention by proposing to pay every U.S. adult a $5,000 “Trump dividend” if his party wins November’s congressional elections.
Trump delivered the extraordinary overture during a primetime speech that lasted nearly two hours and firmly placed him at the center of the midterm campaign at a time when his sagging approval ratings could weigh on Republicans’ chances, Reuters reported.
Vice President JD Vance will give the keynote address on Thursday night, though Trump is scheduled to make closing remarks to bring the made-for-television two-day event in Dallas to an end.
With Trump constitutionally barred from seeking a third term, Vance’s speech could serve as an early audition for the 2028 presidential election and offer clues about how he would lead a party reshaped by Trump.
It was not immediately clear how the $5,000 payments would work or whether they would be legal. The proposal would likely cost more than $1 trillion, with approximately 270 million U.S. adults, and could require the approval of Congress.
The convention’s focus on Trump – some Republicans have dubbed it “Trumpapalooza” – amounts to a risky bet that he can mobilize the voters who carried him to the presidency two years ago, despite opinion polls showing his popularity is at an all-time low.
But it remains to be seen whether his campaign-style speech will appeal to the critical swing voters who have drifted away from Trump’s party amid growing dissatisfaction with the cost of living and the war on Iran.
‘PRETEND THAT I’M ON THE BALLOT’
“I’m asking you to pretend that I’m on the ballot,” Trump said, a line that may have pleased Democratic campaign strategists just as much as MAGA voters.
Republican efforts got a boost from an unlikely source on Wednesday, when Democratic U.S. Senator John Fetterman appeared in a pretaped video segment introducing his “great friend,” fellow Pennsylvania Senator Dave McCormick, a Republican.
Fetterman said he would always “reject the extremes in socialism,” a comment that is likely to bolster Republican attacks on Democrats as too left-wing. Fetterman, who has increasingly broken with his fellow Democrats, has nevertheless rejected speculation that he might leave the party.
Some vulnerable Republicans in tough races, perhaps mindful of tying themselves too closely to the unpopular Trump, elected to skip the affair, including Senator Dan Sullivan of Alaska and Senator Susan Collins of Maine.
DEMOCRATS PORTRAYED AS ‘SOCIALISTS’ AND ‘COMMUNISTS’
While Republican officials had described the convention as an opportunity to tout Trump’s policies, most speakers focused on attacking Democrats as extreme on topics such as transgender women in sports and border security – political red meat for core Trump supporters.
Alabama state Representative Ernie Yarbrough, a convention attendee, said Trump needs to give voters a clearer sense of how long the war in Iran could last.
“People want to feel like we’re not getting stuck in an endless cycle,” he said.
Trump defended his decision to attack Iran, saying he acted to prevent Tehran from developing a nuclear weapon. He also promised that oil prices would drop “as soon as we win the war with Iran,” which he vowed would happen soon.
But the conflict shows little sign of ending more than six months after the U.S. and Israel launched strikes on Iran, and analysts have said Iran’s nuclear program has not been eliminated. Iran denies seeking a nuclear weapon.
Before Trump took the stage, a parade of speakers called Democrats “socialists” and “communists,” echoing one of Trump’s favorite attack lines. Democrats are “dangerous, radical and weird,” said Senator Tim Scott of South Carolina, the chairman of the party’s Senate campaign arm.
The stakes are high for both parties. With the elections less than two months away, Republicans face the prospect of losing control of at least one chamber of Congress, with public polling showing Democrats more motivated to vote and Trump’s approval ratings deeply underwater.
World
US Treasury ratchets up pressure on Iran with sweeping new aviation sanctions
Treasury Secretary Scott Bessent last week warned that airlines were possible sanctions targets along with digital assets and the maritime industry.
The United States on Tuesday issued 36 Iran-related sanctions targeting the country’s aviation sector and other companies as part of a broad push to escalate economic pressure on Tehran as the war in the Middle East has moved into a seventh month, Reuters reported.
The U.S. Treasury Department said the action was aimed at grounding Iran’s Mahan Air, which was already sanctioned by the U.S. and the European Union, and expanding sanctions to all other Iranian airlines. The sanctions also took aim at covert front companies, cargo handlers, foreign intermediaries and deceptive trans-shipment routes that Washington says Iran relies on to obtain U.S.-origin aircraft and sensitive technology.
The Treasury instructed financial institutions to report any procurement networks supporting Iran’s aviation industry, while designating firms in Turkey, the United Arab Emirates, Malaysia and Kazakhstan that it said had helped Iran’s airlines operate and Tehran acquire U.S.-origin aircraft and sensitive technology.
Treasury’s Office of Foreign Assets Control also suspended three Iran-related aviation authorizations that allowed overflights and permitted non-U.S. airlines to fly U.S.-origin or U.S.-controlled commercial aircraft into Iran.
Miad Maleki, a former senior Treasury official and fellow at the Foundation for Defense of Democracies, said the suspension would hit air traffic from Dubai, Doha and Istanbul, shutting Tehran’s main gateways to regional trade and finance. OFAC’s action also closes previous carve-outs that allowed transport of safety parts, fuel and emergency repairs, he said.
Tuesday’s actions marked a sharp escalation of the Trump administration’s renewed push to squeeze Iran’s economy and pressure Tehran to loosen its chokehold on the Strait of Hormuz. A U.S. naval blockade and tougher sanctions are curbing Iran’s oil exports, restricting access to foreign currency and exposing growing strains in the economy.
Treasury said any foreign firm or individual aiding Iranian airlines through aircraft transfers, cargo services or general sales agent support would face serious consequences.
Treasury Secretary Scott Bessent last week warned that airlines were possible sanctions targets along with digital assets and the maritime industry.
”Under Operation Economic Outcast, we promised severe consequences for those providing financial lifelines to the Iranian regime,” Bessent said in a statement on Tuesday. “Let this be a warning to anyone doing business with Iran’s remaining airlines, all of which we sanctioned today: You are at risk of being cut off from the global financial system.”
On Tuesday, Treasury designated 27 Iranian airlines, as well as several firms based in Turkey and the United Arab Emirates for helping Mahan Air secure at least three Boeing B-777 aircraft this summer that had been retired elsewhere, read the report.
It hit UAE-based Egyptian citizen Ibrahim Ali Mohamed Mohamed Mahran, the chief executive of ECT Aviation Support, as well as the British unit of the firm.
OFAC also imposed sanctions on two firms based in Turkey and Malaysia that it said had serviced Mahan Air’s international flights and coordinated cargo shipments.
The U.S. Treasury has repeatedly targeted global networks supporting Mahan Air. In July, Treasury designated six entities and individuals in China, India, Russia and Iran, including several firms that act as sales agents for the airline. Washington first sanctioned Mahan in 2011 over support it provided to Iran’s Islamic Revolutionary Guard Corps.
In 2020, Washington imposed sanctions on a China-based company it accused of acting on behalf of Mahan Air.
Brett Erickson, managing principal of Obsidian Risk Advisors, said the latest moves were significant.
“The United States is using sanctions to effectively blockade Iran’s aviation sector from the rest of the world,” he said. “That represents a major expansion of the economic war, with foreseeable consequences for civilian travel, commerce, supply chains and Iran’s ability to sustain their strained economy.”
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