Yesterday witnessed at least the eighth Saudi oil tanker attacked by the Houthis since the maritime blockade began on July 22, which is being followed by reports the Yemeni rebel group backed by Iran could be preparing for all-out war with Saudi Arabia.

The group struck two Saudi oil tankers in the Red Sea on Wednesday and coupled the action with a threat to intensify attacks in order to close “all access routes” to Saudi oil shipments. Military spokesman Brig. Gen. Yahya Saree confirmed that ballistic missiles were launched at a Saudi tanker called Wafa near the Saudi port city of Yanbu.

A second oil tanker identified as Daisy was subsequently hit in the Gulf of Aden with a ballistic missile and “forced to turn back” – the spokesman said in a social media post. The Houthis are dubbing it a “blockade for blockade” strategy.

But it seems the Saudis aren’t ready to take this laying down, even if the ratcheting Red Sea region conflict threatens fragile Oman-sponsored talks to reopen the Strait of Hormuz, as on Thursday its proxy the Yemeni Armed Forces – representing the official government whose seat is in Aden in the south – announced preparations for a large new military operation.

This as Al Arabiya reports a fresh outbreak of ground fighting, in a renewal and intensification of the civil war that goes back to at least 2015 (and has an international proxy war aspect to it). The Arab publication says that a Houthi attack killed 45 government forces in Hadramawt and Marib in Yemen, areas which also happen to be home to the vast majority of the country’s oil and gas fields.

Separately Al Jazeera describes of the same event:

The Yemeni Emergency Forces of the internationally-recognised government, have said that there have been material and human losses following attacks on its camps.

Several causalities have been reported after a suspected Houthi rocket and drone attack targeted bases hosting the forces in Marib and Hadramaut.

So now it seems that even if a grand Hormuz deal to reopen energy transit can be pulled off with some level of sticking power, there will have to be a separate ceasefire to contain the Yemen and Bab al-Mandab Strait crisis.

To some degree, the Houthi closure of the Red Sea to Saudi shipping represents a good cop, bad cop approach to the United States and its Gulf allies. It is a way for Tehran to still maintain some serious tangential leverage over global energy, even as ships in Hormuz could finally get moving again.

The Houthis launched ballistic missile and drone strikes on Saudi-backed Yemeni forces in Marib Governorate, targeting several military sites.

According to preliminary reports, at least 45 personnel were killed and dozens wounded, with Saudi-aligned media confirming the attacks… pic.twitter.com/uThIgebcfe

— Conflict Radar (@Conflict_Radar) August 6, 2026

As a reminder, the Houthis have been part of what Iran sees as the “axis of resistance” going back to when the Shia rebel group first seized power in September 2014:

Saudi Arabia is now being squeezed from three directions in the widening U.S.-Iran war — Iraq to its northeast, Yemen to its southwest, and Iran to its east. (On July 18, Tehran struck Prince Sultan Air Base near Riyadh, its first direct hit on Saudi soil in nearly four months.)

To understand why this matters beyond the price of oil, it helps to picture the crises as a set of nesting dolls.

The innermost doll is Yemen’s own civil war: a decade-old fight between the Houthis (officially known as Ansar Allah), who rule the populous north from Sana’a, and Yemen’s internationally recognized government, formally led by a body called the Presidential Leadership Council. The roots of this war trace to the 2011 Arab Spring revolution, which toppled Yemen’s long-serving president and left a power vacuum the Houthis moved to fill, seizing Sana’a in 2014. Saudi Arabia and a coalition of partners intervened in 2015 with the explicit aim of reversing that takeover and restoring the internationally recognized government, and the war has continued in one form or another ever since.

The middle doll is Saudi Arabia’s broader rivalry with Iran, a contest for regional leadership that has run since Iran’s 1979 Islamic Revolution, when Tehran’s new theocratic government began exporting a revolutionary, Shia-inflected challenge to the Gulf’s Sunni monarchies.

In the meantime, Al Jazeera is reporting Thursday that the Saudi-backed government shot down a drone operated by the Houthis over the city of Marib.

The country’s official SABA news agency said the Houthi targeting of Marib “embodies their escalatory approach and their insistence on continuing their terrorist acts” and that “the air defenses engaged the drone as soon as it entered the city’s airspace and successfully shot it down.”

Over in the Persian Gulf region, Iran officials have said a deal with Oman to reopen the Strait of Hormuz is “on the verge of being finalized” which entry and exit routes and protocols having been established. Iran continues to say that Washington has nothing to do with this, and warns against US military interference.

The White House seems to be quite serious about ensuring an offramp from the conflict this time, as the bombs have fallen silent for several days now…

🇺🇸 US Vice President JD Vance said diplomatic negotiations with Iran are “going to be messy” and will “take some time,” in an interview on Fox News, a more cautious tone than President Donald Trump, who claimed earlier this week that “a lot of progress” had been made.

🔹”That…

— Drop Site (@DropSiteNews) August 6, 2026

But lots of unknowns and variables remain, as some international reports suggest a final deal could be signed as early as the close of Thursday, or at least by week’s end. Al Jazeera notes: “For Iran to reopen the Strait of Hormuz, the US must abide by the memorandum of understanding (MoU) it signed with Iran in mid-June, although that would not be enough on its own, Iranian Deputy Foreign Minister Kazem Gharibabadi said in comments carried by Iran’s IRNA news agency.”

Iranian Foreign Minister Abbas Araghchi has newly warned that “We’re ready to ‌retaliate, but finding a diplomatic solution is the best way to avoid wider escalation and destruction ​across ‌the ⁠region.“

As for President Trump, he has freshly stated, “I’d rather make a deal because I don’t want to kill people. But Iran cannot have a nuclear weapon.“

Authored by Zoltan Vardai via CoinTelegraph.com,

Situational Awareness, the hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, reportedly invested $400 million in a privately held company days after it nearly collapsed under margin calls.

The fund invested $100 million in the same unnamed company in July, Bloomberg reported Thursday, citing people familiar with the matter. 

The latest investment was completed on Tuesday.

Cointelegraph has approached Situational Awareness for comment.

Assets at Situational Awareness fell about 78% in July, as an AI-stock sell-off triggered margin calls from Wall Street lenders.

The fund sought fresh capital and considered selling stakes in private companies, according to the Financial Times.

“We took the steps that were necessary to fight another day,” Aschenbrenner told investors in a letter on Friday.

“But our fund must always be structured such that we can take a loss and fight another day. I will make it my mission to ensure that we learn the necessary lessons from this experience.”

The fund subsequently sold most of its public equity portfolio to Ken Griffin’s Citadel, allowing it to repay lenders and retain its private holdings.

*SITUATIONAL AWARENESS MAKES INVESTING RETURN WITH $400M BET

this time with 8x TRS leverage pic.twitter.com/kXY7MQa0Px

— zerohedge (@zerohedge) August 6, 2026

Situational Awareness had invested heavily in power and data centers supporting AI, including Bitcoin miners expanding into AI computing.

A May 18 filing with the US Securities and Exchange Commission covering holdings as of March 31 showed about $1.11 billion in positions across seven Bitcoin mining stocks, including IREN, Core Scientific, Riot Platforms and CleanSpark.

The number of Americans filing for unemployment benefits for the first time held below 200k again last week…

…basically hovering at its lowest since 1969…

Pennsylvania and New Jersey saw claims rise the most last week while North Carolina and Ohio saw the biggest decline…

Continuing jobless claims ticked up, just above 1.8 million Americans…

After ADP’s disappointing job additions, it appears the ‘low hire, no fire’ economy is entrenched.

Will tomorrow’s payrolls print confirm that?

SpaceX shares are hovering near record lows after the company’s first earnings report as a publicly traded company beat expectations. However, as we noted Tuesday, Thursday’s first lockup expiration is likely the more significant near-term catalyst than earnings.

The first insider share lockup expires today and more than doubles the float from about 639 million to 1.55 billion. That means about 911.5 million shares of new supply are inbound for the market.

HSBC analysts Nicolas Cote-Colisson and Charlie Rothbarth recently mapped out the staggered lockup-expiration schedule:

SpaceX’s IPO prospectus indicated that 555,555,555 shares would be issued to constitute the free float. We understand that the underwriters have exercised their option to purchase additional shares of Class A common stock in full, so the free float would have extended to 638,888,888 shares.

We identify 4,678m locked up shares and another 8,160m shares subject to an extended lockup. Based on the information provided by the SpaceX prospectus dated 12 June 2026, we calculate that 912m shares could be available for sale in the public market from 6 August 2026, compared with 640m shares constituting the free float at present. The free float would increase from 4.9% at present to 11.8%.

Another release event could occur on the same day depending on SpaceX shares trading above USD175.5 for at least five of 10 consecutive trading days ending on 4 August 2026 (i.e. between 22 July and 4 August 2026). The table below provides further event/date triggers for subsequent share releases.

Those restricted shares are currently owned by funds and individuals that have participated in the private rounds of financing and may be inclined to keep their shares. But we think investors should be aware of this.

Lockup expiration roadmap:

“We’ve never seen anything like it. We’ve never seen anything of this scale, and we’ve never seen a lockup phased in this way,” Peter Singlehurst, head of Baillie Gifford’s private companies team, which first invested in Musk’s company in 2018, told Bloomberg. “We’re in uncharted waters.”

The incoming wave of supply has attracted short sellers to pile bearish bets on SpaceX. Data compiled by S3 Partners through Tuesday’s close shows that 35% of the float is sold short.

That short interest is so concerning to Musk that he even felt compelled to comment and taunt bears hours before earnings on Tuesday.

“I try to warn them, but they just double down…,” Musk wrote in an X post responding to a report citing proprietary data from S3 Partners.

I try to warn them, but they just double down … 🤷‍♂️

— Elon Musk (@elonmusk) August 4, 2026

Shares initially rallied following Musk’s comments but have since reversed course, sliding back toward the $109 level. On Monday, the stock touched a record low of $104.83, leaving it 22.4% below its $135 offering price and 53.5% beneath its June peak of $225. The selloff has erased more than $1 trillion in market value.

Here’s how Wall Street currently views the stock:

A large trading desk told us earlier this week that its team has yet to initiate any buy orders but may begin considering a long position once the first lockup expiration is underway.

Pro-bitcoin Senator Cynthia Lummis has said that bipartisan work is going into the crypto Clarity Act but warned that some lawmakers are still making unreasonable demands.  

The Republican, speaking to Fox Business Wednesday, said that she had been working with Democratic lawmakers into the night to get the bill over the line. 

But, as Bitcoin Magazine’s Mathew Di Salvo reports, she said that some Democrats were still dragging their feet on the bill. Lawmakers are pushing to get a vote on the crypto market structure bill before the Senate goes to recess.

JUST IN: 🇺🇸 Senator Cynthia Lummis says “I believe we will get a vote on the Clarity Act before August recess.” 👀

“I don’t think we’ll be leaving on Friday, I think we’ll go into the weekend.”

Pass it! 🚀

pic.twitter.com/1AZR7DzEln

— Bitcoin Magazine (@BitcoinMagazine) August 5, 2026

“The president agreed to an ethics provision that no president has ever agreed to,” Lummis said.

“He’s gone farther to protect ethics than any president in history — yet the Democrats do want more. Their proposal is in front of the president now, and we’ll see what he does.”

She added:

“We’re going to vote on it. If it dies, it’s going to be because the Democrats kill it. I’ve bent over backwards for 11 months, to give them as much as we can possibly give them to regulate this industry.”

The Clarity Act has been in a deadlock for much of 2026, partially because the banking lobby raised concerns over crypto companies allowing clients to earn stablecoin yield. 

An updated bill of the Clarity Act was introduced in July addressing concerns around ethics; it now bans government officials and their families from issuing or promoting crypto. 

Democrats have criticized President Trump’s family crypto business ventures. The White House has always said there have been no conflicts of interest. 

A group of Democrats in July said the bill needs work. 

Major financial institutions like Fidelity and BlackRock, and law enforcement organizations have thrown their weight behind the new bill, 

If passed, the Clarity Act would create a regulatory framework for the U.S. cryptocurrency market.

Submitted by Thomas Kolbe

Will German policy paralysis and French protectionism save Germany’s automakers? Unlikely, since Paris and Berlin are pursuing similar ideological goals. Everything points toward the expansion of a green state-run economy. On that, there is agreement. The concerns of private enterprise are secondary.

Given the dramatic situation, automakers would probably take even the most hopeless escape route in an attempt to escape the downward spiral. This has now also caught up with the previously remarkably resilient BMW Group: Just last week, Volkswagen announced plans to cut 120,000 jobs, Porsche has to eliminate 5,000 positions, and Mercedes has already parted ways with 5,500 employees. Now BMW is following suit, announcing that it will have to part with 8,000 of its 154,000 employees. The pressure to act is considerable. In the second quarter, the Munich-based group’s profit plunged by a staggering 35 percent year-on-year. In the core automotive business, the company lost 60 percent of its earnings.

BMW’s workforce reduction is supposed to take place quietly: through natural employee turnover and a voluntary severance program. The company wants to avoid compulsory redundancies in Munich.

The initiative will begin in October and run until 2027, specifically targeting employees outside production. Between 30,000 and 40,000 administrative employees at BMW are expected to receive an offer to leave the company – in return, BMW will expand its employment guarantee for the future: compulsory redundancies in Germany are to be ruled out even if the company falls into the red.

Whether this policy can ultimately be maintained when push comes to shove remains to be seen. In any case, entire layers of management are to be eliminated and departments merged – not least because BMW has concluded that artificial intelligence can increase operational efficiency.

Efficiency programs in Germany’s automotive industry are unavoidable. Excessive energy costs are weighing on companies’ results, alongside Brussels regulation and the political campaign against the combustion engine, which still dominates the market. It is impossible to keep pace with global competition from the domestic production base. According to consultancy EY, German automakers and their suppliers lost 50,000 jobs within a single year. There is no sign of a reversal: Germany’s automotive industry association VDA now expects 225,000 jobs to disappear across the sector by 2035, some 35,000 more than its estimate just a few months ago.

And what is politics doing? It clings doggedly to the ideology of the Green Deal, regardless of what it may cost citizens – with the state, financed through taxes and debt, remaining as an employer of last resort if necessary. That, in a nutshell, has so far been the position of the political leadership of the European Union.

Euro-corporatism has grown far beyond its limits. Billions flow from taxpayers to Brussels and return, rebranded as climate bonuses, credit guarantees and funding allocations for dubious start-ups, into the channels of the green transformation machine. This may be the most extreme case of politically driven destruction of capital. The decline of European industry is inevitable. It is impossible to conceive of an economy that could withstand the subversive barrage of European ideologues over an extended period.

Bewildered and incredulous, they stand in Berlin and Paris before the ruins of their own work. Since political circles operate under an imperative of infallibility, every last resource is being mobilized to continue the prevailing policy. At the German-French Council of Ministers in Germany in mid-July, Emmanuel Macron and Friedrich Merz reaffirmed their common industrial policy agenda. The two governments subsequently instructed their negotiators to work out a broader compromise: France wants to shield European industry more strongly from foreign competition, while Germany is primarily seeking a way out of the crisis engulfing its automotive industry.

Too much money is flowing out: For Chinese EV manufacturers or solar-panel producers, Brussels’ subsidy machine is a welcome bonus. Countless businesses are effectively living off the naivety of European policymakers. It pays to put up the umbrella for subsidies when EU bureaucrats and political fools are scattering taxpayers’ money with both hands.

And so a German-French bargain is now supposed to bring relief in the crisis. Berlin would support the French demand for a tougher “Made in Europe” model for industrial funding. At the heart of the strategy is the Industrial Accelerator Act, or IAA, presented by the European Commission in March. It is supposed to apply in public tenders and funding programs and define requirements for applicants in advance. Naturally, CO₂-free products and manufacturing processes are to receive priority in the subsidy jungle.

Subsidies will continue to flow above all to decarbonization champions. But there is nothing remotely market-oriented about this; the subsidy frenzy merely promotes cronyism and a subsidy-hunter mentality in the EU. Brussels also wants to define in the future which third countries qualify as so-called “trusted partners.” In doing so, the bureaucracy is intervening massively in the existing supply chains of European companies. “Made in Europe” – a crude form of industrial policy, with bureaucrats at the helm who can, at the behest of politicians, give suppliers the thumbs-down and shut them out, regardless of the consequences this may have for European businesses.

Berlin had rejected this practice until now. But given the situation in the automotive sector and the French concessions in this area, the German government now appears open to a “Made in Europe” strategy.

The other side of the deal is this: France is signaling a willingness to handle the 2035 combustion-engine phaseout more flexibly. It will ultimately come down to negotiating CO₂ consumption quotas more flexibly and assigning a different weight to investments in hybrid drivetrains in the CO₂ balance. In short: business as usual in the same outfit, merely unbuttoned at one point.

Ways out of the crisis mean the end of the current policy. Technological openness for business, competition in a free, deregulated single market – politics contributes nothing to solving the crisis. Quite the contrary. The bargain between Paris and Berlin would appear protectionist from the outside, but could provide companies with some short-term breathing room through more efficient allocation of subsidies. In doing so, political pressure is removed to break with the fatal ideological design of the Green Deal.

Without a structural break with the ideological present, there will be no recovery. The therapy that Emmanuel Macron and Friedrich Merz intend to prescribe for the European automotive industry will ultimately prove to be an injection of the same poison that has turned the entire EU economy into an economic cripple.

* * * 

About the author Thomas Kolbe, a German graduate economist, has worked for over 25 years, he has worked as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

In most countries, the average worker still earns less than the income researchers associate with peak reported well-being.

Research on income and well-being has identified a “satiation point,” an income level beyond which additional earnings no longer improve reported happiness. But how close does the average worker come to reaching that threshold?

An analysis from Remitly calculated the price of happiness in economies around the world and compared it with average local wages.

This graphic, via Visual Capitalist’s Niccolo Conte, ranks the 50 countries where average annual income comes closest to that threshold.

The analysis is based on Purdue University‘s income satiation research and data from the International Labour Organization, adjusted for purchasing power, inflation, and currency exchange rates.

Slovenia Is the Only Country Where Wages Exceed the Threshold

Slovenia stands alone among the 50 countries analyzed. Its average wage of $42,800 is 16.3% higher than its estimated price of happiness of $36,800, meaning the typical worker earns more than the income associated with peak reported well-being.

No other country crosses that line. Luxembourg comes closest, with wages covering 92.8% of its $118,400 happiness threshold, followed by Estonia (90.5%), Singapore (90.0%), and Lithuania (89.2%).

The data table below shows the average annual wage and price of happiness in each country, along with how close wages come to reaching that threshold:

Central and Eastern European countries occupy seven of the top 11 spots, including Estonia, Lithuania, Czechia, Latvia, Greece, Romania, and Poland.

Their wages are modest by global standards, but their estimated happiness thresholds are also comparatively low, keeping the gap between the two smaller. A similar pattern appears in Where Wages Go Furthest Around the World, where several of the same economies rank highly for purchasing power.

High Wages Do Not Guarantee a Smaller Gap

The United States has the third-highest average wage in the study at $75,300, but it also has one of the highest prices of happiness at $134,800. As a result, wages cover just 55.8% of the threshold.

Australia has the highest price of happiness in the ranking at $161,300, more than double its average wage of $59,000. With wages covering 36.6% of the threshold, the country ranks 39th overall.

The United Kingdom (35.9%), Canada (44.4%), and New Zealand (34.0%) show a similar pattern. Despite relatively high wages, workers in these countries remain further from the income associated with peak well-being than those in several lower-wage economies in Central and Eastern Europe.

Ecuador ranks last among the 50 countries measured, with an average wage of $6,500 covering 32.9% of its $19,700 price of happiness.

If you enjoyed today’s post, check out Money Can Buy Happiness After All on Voronoi.

Authored by Steve Watson via Modernity News,

The Spanish Red Cross is treating the military-age men who swam around the border fence and stormed Ceuta like victims of an earthquake.

Volunteers in red vests are lining up on the sand at Playa del Trampolín, handing out bread, milk, biscuits, water, cans of tuna and pastries to the thousands who remain after last week’s deliberate mass invasion from Morocco. Police stand by to keep the queues orderly while the same people who refused to go home sit and eat.

This is not a natural disaster. These men crossed into Spanish territory because the opportunity was created for them. There is nothing stopping Spanish authorities from sending them straight back. Instead the humanitarian apparatus has arrived with supplies.

The Red Cross is now handing out food and supplies to illegals in Ceuta as if they’re victims of a natural disaster. They literally swam the coastline and invaded Spain because they felt like it and there is nothing preventing them from being sent home. pic.twitter.com/eAruK5wyiy

— m o d e r n i t y (@ModernityNews) August 4, 2026

Cadena SER and local outlets confirmed the first organised distribution of food since the crisis began. Cruz Roja and the local branch of Cooperación Sur-Sur handed out the packages to around 2,000 migrants, the majority from sub-Saharan Africa.

???? Red Cross in Ceuta handing out food and water to the migrants who just stormed Spanish territory.

Locals are furious and it’s hard to blame them.

Carrots don’t keep people away, sticks do…

Writer: Samuelpic.twitter.com/hanliozVRk

— Mario Nawfal (@MarioNawfal) August 4, 2026

National Police managed the lines so the recipients stayed seated until their turn, then returned to the beach to eat. One Nigerian man named Genesis told reporters he was “happy to finally have something to eat and drink.” He said he had been trying to cross for months and now hopes for asylum.

African Migrants in Ceuta Complain About Treatment: ‘No Food, No Blankets’ pic.twitter.com/RmWGWe2oVA

— New York Post (@nypost) August 3, 2026

A Sudanese man named Malik Alher said he had gone five days without food, then added that he wants to “learn Spanish, live in Madrid and work in a supermarket.”

The volunteers doing the handing-out look exactly like the usual crowd: white European leftist women. Locals watching the scene are furious, and for good reason. Feeding the people who just overran your city does not encourage them to leave.

This comes after Spanish officials spent days insisting the problem had solved itself. Foreign Minister José Manuel Albares claimed the “practical totality” of those who entered had returned to Morocco.

The Spanish Embassy in London repeated the line. Reality on the ground never matched the press releases. Streets remained full, facilities were stormed, and thousands simply stayed put on the beaches and around the CETI reception centre.

Local estimates of those left behind ranged from 2,000 to 15,000. But it’s anyone’s guess. Many of the remaining group are now openly declaring they will not go back. They are waiting for the next step toward the Spanish mainland and the wider European welfare systems.

?? A Spanish soldier in Ceuta said they are now ordered only to direct illegal migrants toward the border so they leave the country on their own.

“Right now we are not allowed to do anything else,” the soldier has said.

For him, it is a personal sorrow what Sánchez’s… https://t.co/nwDPZjRFyB pic.twitter.com/U19WqDSij5

— Visegrád 24 (@visegrad24) August 4, 2026

Muslim Invaders Chanting “Allahu Akbar” Have OVERTAKEN The Streets of Ceuta.

Police are completely overwhelmed.

The government wants you to think this isn’t happening.

We are witnessing the total collapse of a nation. https://t.co/9VhvDWSP3A

— Benny Johnson (@bennyjohnson) August 3, 2026

The situation in Ceuta:

Thousands of invaders still remain. They’ve taken to forested areas around the city to avoid being captured.

Their goal now is to get on boats to the Spanish mainland. Social media is also full of calls by illegals to stage another mass invasion on the… pic.twitter.com/Q8JBQPwN36

— ???? ???? ?? ?? (@NiohBerg) August 4, 2026

Auf der marokkanischen Seite an der Grenze zu Ceuta warten Schwarzafrikaner auf ihre Weiterreise in die EU. Sie werden von den Behörden zurückgehalten, damit zuerst die Marokkaner nach Spanien eindringen können.

Sie nennen es “Zwischenhaltungs-Internatzentrum”.

Das Video ist… pic.twitter.com/U8idHK1VAo

— ???? (@queru_lant) August 1, 2026

Some, have already been sent to mainland Spain.

?? Dozens of migrants were allegedly transferred from Ceuta to Andalusia, mainland Spain today.

Follow: @europa pic.twitter.com/BU0F9vJm21

— Europa.com (@europa) August 4, 2026

Vox leader Santiago Abascal has called the episode an “invasion and an act of war promoted by Morocco and allowed by Sánchez.” He demanded the prime minister face legal proceedings.

Muslim Invaders in Ceuta are now BURNING the Countryside as they Continue TAKE OVER the Streets.

This is total chaos and collapse of a country.

It looks like a literal zombie apocalypse. pic.twitter.com/6GqklXUK4n

— Benny Johnson (@bennyjohnson) August 3, 2026

The People’s Party has accused Sánchez of being on holiday while sovereignty was tested. Ceuta’s own president Juan Jesús Vivas described the situation as “absolutely unsustainable” for a city of just 83,000.

Handing out free meals does not change the fundamental facts. These men were not shipwrecked, they did not come from a war zone. They walked and swam into Spanish territory in a coordinated surge that Morocco facilitated and Spain failed to stop.

Every ration distributed on that beach signals that the cost of illegal entry will be met with care packages rather than immediate removal. Carrots do not deter the next wave. Only the credible threat of being sent straight home does.

Spain’s government can still choose enforcement over theatre. Until it does, the Red Cross will keep unpacking boxes for the people who invaded, and the residents of Ceuta will keep watching their city turned into a holding pen for those who refuse to leave.

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