May 12, 2026 - Daily News Digest

On this day: in 1881, In North Africa, Tunisia becomes a French protectorate.

QOTD: ““As of now, the government has not received any reports indicating that immediate supply issues are expected for printing ink or naphtha,” [Japanese] Deputy Chief Cabinet Secretary Kei Sato said Tuesday at a news conference.

UAE/IRAN/MIL - U.A.E.’s Secret Attacks on Iran
https://www.wsj.com/articles/the-u-a-e-has-been-secretly-carrying-out-attacks-on-iran-f1745a0d?mod=article_inline

The United Arab Emirates has carried out military strikes on Iran, people familiar with the matter said, casting the Gulf monarchy as an active combatant in a war in which it has been Iran’s biggest target.

Its military is well-equipped with Western-made jet fighters and surveillance networks. And the attacks suggest the country is now more willing to use them to protect its economic power and growing influence across the Middle East.

The strikes, which the U.A.E. hasn’t publicly acknowledged, have included an attack on a refinery on Iran’s Lavan Island in the Persian Gulf, the people familiar with the matter said. That attack took place in early April—around the time President Trump was announcing a cease-fire in the war after a five-week air campaign—and sparked a large fire, knocking much of the refinery’s capacity off line for months.

Iran said at the time that the refinery had been struck in an enemy attack and launched a barrage of missile and drone strikes against the U.A.E. and Kuwait in response.

The U.S. wasn’t upset by the attack, as the cease-fire hadn’t yet settled into place, and it has quietly welcomed the participation of the U.A.E. and any other Gulf states that want to join in the fight, one of the people said.

The U.A.E.’s Ministry of Foreign Affairs declined to comment on the strikes but pointed to previous statements in which it asserted its right to respond—including militarily—to hostile acts.

US/ECON - Consumer prices rose 3.8% annually in April, the highest since May 2023
https://www.cnbc.com/2026/05/12/cpi-inflation-april-2026-.html

Prices that consumers pay for a wide range of goods and services increased at a faster-than-expected pace in April, as another burst in energy prices raised further concerns about inflation’s impact on the U.S. economy.

The consumer price index rose at a seasonally adjusted 0.6% for the month, putting the one-year pace at 3.8%, the Bureau of Labor Statistics reported Tuesday. The monthly rate was as forecast, but the annual rate was 0.1 percentage point above the Dow Jones consensus.

Excluding food and energy, the core CPI increased 0.4% and 2.8%, respectively, keeping inflation well above the Federal Reserve’s 2% goal as the monthly rate was the highest since January 2025. Fed officials consider core a better indicator of longer-term inflation trends.

The annual headline inflation rate was the highest since May 2023 and was up half a percentage point from March. Core inflation rose 0.2 percentage point annually.

ISRAEL/UAE/MIL/TECH - In first official confirmation, US envoys say Israel sent Iron Dome to UAE
https://www.timesofisrael.com/in-first-official-confirmation-us-envoy-says-israel-sent-iron-dome-to-uae/

US Ambassador to the United Nations Mike Waltz confirmed Monday that Israel’s Iron Dome missile defense system was used to shoot down Iranian missiles targeting the United Arab Emirates, becoming the first government official to publicly verify that the equipment was deployed and used in the UAE during the recent fighting.

Waltz made the comments in remarks at an Independence Day event hosted by the Israeli Mission to the UN in New York.

“We saw the UAE make use of the Iron Dome provided to it by Israel,” the Israel Hayom daily quoted Waltz as having said.

The remarks were confirmed to The Times of Israel by a source present at the event.

On Tuesday, US Ambassador to Israel Mike Huckabee also confirmed the delivery.

“Israel just sent (the UAE) Iron dome batteries and personnel to help them operate them. How come? Because there’s an extraordinary relationship between the UAE and Israel based on the Abraham Accords,” Huckabee said at an event in Tel Aviv, referring to a 2020 deal that saw Israel establish ties with the UAE.

KUWAIT/IRAN/CHINA - Kuwait says Iran attacked an island where China is helping to build a port
https://apnews.com/article/iran-us-israel-uae-iron-dome-f3d5738853111cfc80985c157edab7c3

Kuwait accused Iran of launching a failed attack earlier this month on an island where China is helping build a port in the Middle East nation.

The accusation brought Tuesday came just before U.S. President Donald Trump was to depart for Beijing where he’ll meet with Chinese President Xi Jinping in a high-stakes visit over the war and other issues.

Iran didn’t immediately acknowledge the allegation by Kuwait, which came under attack by Iran in the war and during the shaky ceasefire still holding in the region. But that allegation and ongoing attacks throughout the region have threatened to reignite open warfare.

The narrow Strait of Hormuz remains in Iran’s chokehold, the U.S. is maintaining a blockade against Iran and negotiations between the two countries appear at a standstill.

With the risk of the conflict breaking out again, Israel has sent Iron Dome air-defense weapons and personnel to operate them in the United Arab Emirates to defend the country during the war, the U.S. ambassador to Israel said.

That underlined the growing relationship between Israel and the UAE, both long suspicious of Iran. It also represents the first publicly acknowledged deployment of Israel’s military to the Emirates, home to Abu Dhabi and Dubai.

US/CUBA - Trump says Cuba is seeking help, will hold talks
https://www.reuters.com/world/us/trump-says-cuba-is-seeking-help-will-hold-talks-2026-05-12/

U.S. President Donald Trump ​on Tuesday said Cuba was asking for ‌help and "we are going to talk," without providing any more detail.

"No Republican has ever spoken to me about Cuba, ​which is a failed country and only ​heading in one direction - down! Cuba is asking ⁠for help, and we are going to ​talk!!! In the meantime, I’m off to China!" Trump ​wrote in a Truth Social post.

Representatives for the White House and the State Department could not be immediately reached for ​comment. Representatives for Havana also could not ​be immediately reached.

Trump had threatened that Cuba was "next" after the U.S. ‌military ⁠seized the leader of longtime Cuban ally Venezuela earlier this year and has since imposed fresh financial sanctions and expanded others. His administration has also ​imposed a fuel blockade, ​curtailed U.S. ⁠travel and remittances to the island nation and sought to dissuade regional ​allies from contracting Cuban doctors.

China, where ​Trump ⁠is traveling this week to meet Chinese President Xi Jinping, has called on Washington to immediately end its ⁠embargo ​and sanctions on Havana.

UK/POL/ANOTHER ONE - UK’s Starmer under pressure as ministers quit, MPs call on PM to go
https://www.aljazeera.com/news/liveblog/2026/5/12/live-first-uk-minister-resigns-amid-calls-for-pm-stamers-resignation

Three ministers including Jess Phillips, a high-profile Labour politician, have quit in protest as Prime Minister Keir Starmer refuses to heed growing calls to resign.

Starmer has promised to “get on with governing”, defying calls from more than 80 MPs who are urging him to leave imminently or set out a timetable to do so after the Labour Party suffered heavy election losses.

As Labour was hammered, the hard-right Reform UK party surged in local elections last week.

The UK’s fourth prime minister in five years, Starmer also faces pressure over the Labour Party’s vetting process to approve Peter Mandelson’s appointment as ambassador to the United States, given Mandelson’s relationship with the billionaire sex offender Jeffrey Epstein.

RSA/POL - South Africa's Ramaphosa faces down calls to resign over cash-in-sofa scandal
https://www.reuters.com/world/south-africas-anc-meet-after-court-revives-impeachment-process-against-president-2026-05-11/

South African President ​Cyril Ramaphosa faced down calls to resign on Monday over a scandal in which thieves stole bundles of ‌cash in foreign currency hidden in a sofa on his ranch.

In a televised address to the nation, Ramaphosa said he respected a constitutional court ruling that revived impeachment proceedings against him last week but pledged to defend himself.

"While there have been calls in some circles that I should resign, nothing ​in the Constitutional Court judgment compels me to resign my office," Ramaphosa said.

The scandal, dubbed "Farmgate" by local media, has ​been a major embarrassment for Ramaphosa since it broke in 2022, as he came to power ⁠on a pledge to fight corruption and clean up the image of his party, the African National Congress.

Political analysts said they ​expected Ramaphosa would try to fight misconduct allegations against him but faced rising pressure before municipal elections in November, in which his ​party had already been expected to perform poorly.

"The timing couldn't really be worse ... from an ANC perspective," said independent political analyst Daniel Silke.

The ANC has called a special meeting of its National Executive Committee for Tuesday to discuss what it should do.

JAPAN/IRAN/CHEMICALS/SNACKS - Potato-Chip Bags Are Going Black and White Because of the Iran War
https://www.wsj.com/world/asia/potato-chip-bags-are-going-black-and-white-because-of-the-iran-war-3f91c07e?mod=world_lead_pos1

War in Iran is draining the color from Japanese supermarket shelves.

Snack maker Calbee plans to switch to black-and-white packaging for some of its most popular potato chips because of chemical shortages, the company said Tuesday.

The new monochrome packages will go on sale in Japan May 25, Calbee said, blaming difficulties procuring raw materials such as naphtha, a petrochemical used in paints and inks.

Fans of lightly salted Calbee chips will no longer see the familiar orange and blue design, while seaweed-flavor enthusiasts will miss out on yellow and green. Consommé flavor is also affected, Calbee said.

The Japanese government expressed puzzlement. Prime Minister Sanae Takaichi has said Japan has secured enough naphtha and similar oil-derived products to last into next year.

EU/RUSSIA/UKRAINE - EU targets Russians with sanctions over the abduction of thousands of Ukrainian children
https://apnews.com/article/ukraine-children-abducted-russia-war-europe-3d927ab6cb0f7ff90ffcce9f4bef8792

The European Union on Monday imposed sanctions on 16 officials accused of helping Russia to abduct tens of thousands of children from Ukraine and force many to change their identities or be put up for adoption.

Sanctions were also slapped on seven centers suspected of indoctrinating the children or training them to serve in the armed forces, either for Russia or pro-Russian militias inside Ukraine.

Over 130 people and “entities” are now under EU travel bans and asset freezes over the abductions.

EU headquarters said the measures target “those responsible for the systematic unlawful deportation, forced transfer, forced assimilation, including indoctrination and militarized education, of Ukrainian minors, as well as their unlawful adoption and removal to the Russian Federation and within temporarily occupied territories.”

AUSTRALIA - Australia unveils changes to negative gearing, capital gains tax
https://www.reuters.com/world/asia-pacific/australia-unveils-changes-negative-gearing-capital-gains-tax-2026-05-12/

Australia's centre-left Labor government will pare tax breaks for landlords to level the playing field for young Australians to own a home, in the biggest housing tax changes ​this century.

Here are the changes to capital gains tax (CGT) and negative gearing ‌Treasurer Jim Chalmers is proposing in the federal budget on Tuesday.

** From July 1, 2027, the government will scrap the 50% capital gains tax discount on assets held for more than a year and return ​to the pre-1999 policy of taxing inflation-indexed gains, with a 30% minimum tax on ​net capital gains. These changes will apply to all CGT assets, held ⁠by individuals, trusts and partnerships.

** For existing investments, transitional arrangements will ensure the changes ​only apply to gains arising on or after July 1, 2027. The 50% CGT discount ​will continue to apply to gains arising before July 1, 2027.

** Investors in new residential properties will be able to choose either the 50% CGT discount, or cost base indexation and the minimum tax.

** The ​government will limit negative gearing for residential property, which allows investment losses to be ​offset against taxable income, to new builds to help boost housing supply.

** From July 1, 2027, losses ‌from established ⁠residential properties will only be deductible against rental income or the capital gains from residential properties.

UKRAINE/POL - Ukraine officials say Zelenskyy’s ex-chief of staff is a suspect in a money-laundering probe
https://apnews.com/article/russia-ukraine-war-corruption-yermak-fighting-drones-3b305f6e9b6f763605ebe6de2b356a54

Two national agencies fighting corruption in Ukraine named President Volodymyr Zelenskyy’s former chief of staff as an official suspect in a major graft investigation. They said Tuesday that the Ukrainian leader is not under suspicion in the case.

Andriy Yermak is suspected in an alleged 460-million-hryvnia ($10.5 million) money-laundering scheme, the agencies announced late Monday.

Meanwhile, Zelenskyy met with the CEO of Palantir Technologies, part of Ukraine’s growing cooperation with the U.S. defense sector, as a three-day U.S.-brokered ceasefire that decreased the fighting but failed to stop it altogether ended Monday.

Russia’s invasion of its neighbor is now in its fifth year, with no sign of a peace settlement within reach.

US/CHINA/MEETINGS - Trump and Xi appear intent on keeping deep differences over Iran war from overshadowing China summit
https://apnews.com/article/trump-xi-iran-sanctions-trade-48b0ca751712ce473ffcd207997928af

President Donald Trump is set to leave on Tuesday for Beijing to meet with President Xi Jinping after weeks of trying, and failing, to persuade the Chinese government to use its considerable leverage to prod Iran to agree to U.S. terms to end the 2-month-old war — or, at the very least, reopen the Strait of Hormuz.

Trump has veered between venting that China, the world’s biggest buyer of Iranian oil, hasn’t done more to get the Islamic Republic in line and acknowledging that Xi’s government helped de-escalate the conflict last month by nudging Tehran back to ceasefire talks when negotiations wobbled.

But ahead of the U.S. leader’s high-stakes visit, the White House has set low expectations that Trump will be able to persuade Xi to change China’s posture.

Instead, Trump’s Republican administration seems determined not to let differences on Iran overshadow efforts to make headway on other difficult matters in the complicated relationship — ranging from trade to further Chinese cooperation to block exports of fentanyl precursors.

“We don’t want this to be something that derails the broader relationship or the agreements that might come out of our meeting in Beijing,” U.S. Trade Representative Jamieson Greer said on Bloomberg TV last week.