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Ohio State University Reaches $100 Million Settlement With Nearly 300 Sex Abuse Survivors

Ohio State University Reaches $100 Million Settlement With Nearly 300 Sex Abuse Survivors

Authored by Jasper Ward via The Epoch Times,

Ohio State University has reached a $100 million settlement with nearly 300 former students who had accused the school’s campus doctor of sexually assaulting them decades ago, the school and a lawyer for the victims said on Wednesday.

The Ohio State University campus in Columbus, Ohio, U.S., November 25, 2020. Megan Jelinger/Reuters

The settlement with 279 of the 280 former students was ratified by the university’s board on Wednesday. It followed years of litigation over accusations of decades of abuse by Richard Strauss.

The abuse occurred from 1978 to 1998, the year he retired from the faculty.

“The mediation and its confidentiality are continuing as the parties work to finalize the details of the settlements, and additional information will be shared as appropriate,” the school and a lawyer for the victims said in a joint statement.

In February, the university reached eight additional settlements, bringing the total to 304 survivors and more than $60 million.

Strauss, who killed himself in 2005, was employed by Ohio State’s athletic department and medical staff for nearly two decades.

A 2019 report detailing the investigative findings said that Strauss had sexually abused at least 177 men, nearly all of whom were students, and that university staff who knew of the abuse failed to act. The abuse included groping and fondling of the students’ genitals and other acts under the guise of a medical examination.

News of the investigation and its findings prompted more than 500 plaintiffs to sue Ohio State, alleging they had been sexually abused by Strauss and that the school had shown deliberate indifference.

Tyler Durden
Fri, 06/05/2026 – 15:00

Ringing The Bell: Meta Plunges On Report It May Sell “Tens Of Billions” In New Stock

Ringing The Bell: Meta Plunges On Report It May Sell “Tens Of Billions” In New Stock

They don’t ring the bell at the top, but they sure do sell a lot of stock.

With SpaceX, Anthropic and OpenAI looking to IPO hundreds of billions in common stock (not counting even more hundreds of billions in lock up expirations that will hit the market soon)…

… coupled with Google’s record $80 Billion follow on offering (of which half was a memestock-esque At The Market offering direct to retail), suddenly the cash-incinerating AI companies – already full to the gills with SPV and various other forms of debt – are realizing that if they don’t move fast they will miss the boat.

And sure enough, FT reports that arguably the biggest cash burner of the lot, Meta, is considering raising tens of billions of dollars in a stock offering as it seeks new sources of capital to fund Mark Zuckerberg’s vast ambitions in AI, following the launch of Google’s record $85bn share deal this week.

According to the report, company execs have been exploring “creative” ways to raise cash as it prepares to sharply boost its AI-related capital expenditures to as much as $145bn this year and even higher in 2027, according to three people familiar with the plans.

The discussions intensified after the success of Google parent Alphabet’s equity raising this week, which was increased by $5bn after strong investor demand, but – as noted above – GOOGL has a much more viable cash flow profile than Meta, which will be FCF negative this year.

The news sent META stock plunging to the lowest level since early April. 

Meta’s decision to consider a fresh share sale comes amid a frenzy of activity in US equity capital markets, with Elon Musk’s SpaceX set to hold its initial public offering next week and AI groups Anthropic and OpenAI also working on plans for massive Wall Street debuts. 

Mega tech companies have also tapped debt markets – which as we said last year AI is also now a bubble – as they rush to finance AI infrastructure, including chips and data centers.

Meta CFO Susan Li is leading the talks over the potential share sale alongside Dina Powell McCormick, who moved from Meta’s board to take a more active role as president in January. Powell McCormick has been tasked with overhauling Meta’s approach to AI infrastructure and financing, with a focus on longer-term planning as it enters the most capital-intensive period in its history.

Meta must find new ways to fund the huge data centers needed to train and run advanced AI models to fulfil Zuckerberg’s vision for “personal superintelligence” delivered through Facebook, WhatsApp and Instagram, as well as a family of AI-powered wearables such as smart-glasses and voice pendants.

Meta has not yet hired banks and ultimately may not issue new stock. One person cautioned that it was “premature” to say that the company had decided what to do and all financing options remain on the table.  A Meta spokesperson said the share sales talks were “pure speculation”, but added “we’ve been clear that huge opportunities lie ahead in AI, and we’ll continue focusing on raising capital in the most flexible ways to support that”.

A person familiar with Meta’s discussions said the group had looked at the structure of Alphabet’s capital raising, which included “mandatory convertible preferred issuance”. This allows it to raise cash immediately, but defers the stock issuance potentially for years.

According to the FT report, Goldman Sachs would be in a strong position to win the Meta mandate considering Powell McCormick spent 16 years at the investment bank. The Wall Street bank led the Google deal announced this week. 

As noted above, Meta exces are conscious that they will have to move fast if they decide to raise equity to ensure capacity and investor enthusiasm remain amid a historic glut of activity in US public markets. SpaceX is set to raise as much as $86bn next week in an IPO that would value the group at $1.78tn. Claude maker Anthropic has confidentially filed for its own listing and rival OpenAI is also preparing to go public. Both are expected to raise tens of billions and attract $1tn-plus valuations.

Analysts say that Meta’s Big Tech rivals such as Microsoft and Amazon are also likely to be considering their own stock sales as their data centre spending surges and investors question the impact on their balance sheets.

Meta has already raised fresh capital through new means and innovative structures. The company had less than $10bn in long-term debt as recently as 2022, but borrowed $55bn in globe-trotting deals in recent months. In October, it raised $27bn in a bond sale through a joint venture with private capital firm Blue Owl to build a Manhattan-sized data centre in Louisiana dubbed “Hyperion”. Something we warned would soon become an off balance sheet template for all Mag 7s.

Meta has also been conserving capital by cutting costs and other means. Last month it fired 8,000 people and stopped hiring for 6,000 roles.The company also halted share buybacks in late 2025 after repurchasing its shares regularly since 2017.

Google paused its buyback programme in the first quarter after repurchasing about $45bn last year, according to FactSet data and company filings.

Finally, those wondering why the Mag 7s are rushing to sell stock instead of do much cheaper debt offerings, we gave the answer exactly a month ago: “Banks Are Choking”: The AI Debt Bubble Has Started To Burst.

Which only leaves equity sales, and just like that what went up in the past 2 months, is rapidly coming down. 

Tyler Durden
Fri, 06/05/2026 – 14:42

Fannie, Freddie Jump After Trump Floats $1 Trillion Valuation

Fannie, Freddie Jump After Trump Floats $1 Trillion Valuation

Fannie Mae and Freddie Mac shares jumped on Friday morning after President Trump said late Thursday that the mortgage giants were “probably worth $1 trillion,” reviving Wall Street hopes for a long-awaited exit from government control.

President Trump praised FHFA Director Bill Pulte on Thursday for turning around Fannie Mae and Freddie Mac, saying the mortgage giants “probably have $1 trillion in value.”

Full transcript:

“…a person who’s got high integrity. He’s done a phenomenal job at Fannie Mae, Freddie Mac. You probably have $1 trillion in value there. When he took over it was much less, and I guess I’m responsible for that too because everybody wanted me to sell it in my first term for 10% of what it’s worth right now. If I would’ve sold it, we would’ve lost $900 billion. We would’ve lost. Think about it. It’s probably worth $1 trillion. People want me to sell it at $100 billion — a very small percentage of what it’s worth now. And he built up a lot. Did a great job. And it’s an acting position. He is not going to be permanent because I don’t think you’d want to be. But he was a smart guy. You may find out some things about the rigged elections, etc. etc. I think he wants to do it. He’s got a lot of energy but will be very good. He’s not a permanent position. We’re looking at — we are interviewing people right now. But it is somebody just to take over for a little while.”

Fannie and Freddie were both up in the early cash session, rising 5% and 3%, respectively. Shares in both mortgage giants tumbled earlier this week after Trump named Pulte as acting Director of National Intelligence, raising concerns that the dual role could delay the sale of the government’s stake.

As of Friday morning, Fannie shares are down 34% YTD, while Freddie has slumped 38% YTD, as traders grow uneasy over the pace of the Trump administration’s privatization plans. Optimism around potential share sales drove large gains in 2025.

Bose George, managing director at Keefe, Bruyette & Woods (KBW), wrote in a note, “We’re comfortable with our most recently published numbers on the valuation—a current combined fair value in the $200–$250 billion range.”

Related:

Christopher Maloney, mortgage strategist at BOK Financial, noted, “I don’t believe I will ever see Fannie and Freddie released from conservatorship, at least not in my lifetime.”

Tyler Durden
Fri, 06/05/2026 – 14:00

University Of Oregon Grapples With Budget Crisis After Years Of Woke Excess

University Of Oregon Grapples With Budget Crisis After Years Of Woke Excess

Authored by Jonathan Turley,

It appears that being unrelentingly woke means that you need fewer dormitories. The University of Oregon is facing a major budget crisis and will cut $65 million from its budget and close dorms due to low enrollment. That growing crisis, however, did not stop Oregon from burning almost a million dollars fighting against free speech. It also did not induce its faculty to offer greater intellectual diversity and tolerance to prospective students. Oregon is a cautionary tale for a generation of academic social warriors, but also an opportunity for those who want to restore balance in higher education.

Oregon has long been an example of academic orthodoxy. While most state schools begrudgingly yield to First Amendment demands and offer better free speech alternatives to private universities, Oregon is known as a hardened silo for the far left in teaching.

We previously discussed how Portland State University Professor Bruce Gilley, who was blocked from the Twitter account of the University of Oregon’s Division of Equity and Inclusion after tweeting “All men are created equal.” Oregon spent almost a million dollars fighting to bar such speech.

Such controversies have plagued the university for years, with no sign of self-examination by administrators or academics. The university was criticized for its monitoring of social media to punish errant thoughts or microaggressions. The law school’s law review was accused of anti-Israel discrimination.

The school previously gave special recognition to University of California (Santa Barbara) Professor Mireille Miller-Young, who criminally assaulted pro-life advocates on the campus of the University of California at Santa Barbara.  At the University of Oregon, she was honored as a featured speaker at the University of Oregon’s  Department of Women’s, Gender, and Sexuality Studies.  Part of its “black feminist speaker series,” Miller-Young’s work was highlighted by the College of Arts and Sciences and the Department of English to show “the radical potential of black feminism in the work that we do on campus and in our everyday lives.”

Now, the school is facing declining revenues and enrollments.

President Karl Scholz recently announced that this was due to lower out-of-state first-year enrollment, which means lower tuition revenue, increased costs, and a loss of grant funding.

Strangely, while closing dorms, the school is still building two new dorms.

Putting aside the school’s past budget judgment and discipline, the university’s reputation for intellectual orthodoxy deters many who do not want to pay tuition for their children to be indoctrinated or silenced.  Even with plunging trust in higher education, administrators and faculty cannot resist the temptation to exclude opposing voices.

Oregon is not the only school facing such shortfalls. Some woke institutions have closed entirely. The irony is that faculty would seem to prefer to see their institutions die than restore balance to their departments. However, this may offer a real opportunity for legislators and donors to force real changes in the culture of these schools.

As I have previously written, parents and students who value free speech must increasingly look to public universities where faculty are subject to constitutional guarantees. Public universities may be the final line of defense for free-speech advocates.

We now largely have two systems of higher education for those seeking education with a diversity of opinions and viewpoints. Except for outliers like the University of Chicago and other private universities holding the line on free speech, the orthodoxy found at private universities remains a barrier to many conservative and independent thinkers.

If we are to protect these bastions of free speech, legislatures will need to play a more active role in addressing the exclusion of both faculty candidates and speakers on public campuses. Too many faculty members continue to take the view that citizens are a captive audience expected to continue funding their departments, while excluding conservative or dissenting views held by many, if not most, citizens in a given state.

If faculty members want to continue maintaining echo chambers for their own viewpoints, they should have to seek private donors to sustain such intolerance and orthodoxy.

Legislatures can demand evidence that schools are maintaining intellectually diverse faculties in determining the level of continued support from citizens.

When some of us have argued for such campaigns, academics hypocritically claim that we are calling for political litmus tests or hiring based on political parties. It is an absurd argument that I have previously addressed, including in my book The Indispensable Right: Free Speech in an Age of Rage.”

The call is for donors and legislators to withhold funding until they see real reforms, including greater diversity on faculties. They are not directing the hiring but looking at the results. The faculty members objecting to such calls have watched passively (or actively supported) the purging of conservative or libertarian faculty from universities and colleges.

When confronted by their own obvious ideological litmus tests, they shrug. Some acknowledge that their departments are overwhelmingly liberal, but insist that they just cannot find “competent” or “intellectually promising” conservatives. A few will admit that they do not believe that conservative views have a place in their departments.

It is impossible to deny the purging of faculties to create an academic echo chamber. If a large corporation effectively eliminated women or minorities while claiming no conscious discrimination, they would be trounced in court.

For years, I have raised concerns about the intolerance in higher education and surveys showing that many departments no longer have a single Republican as faculty members replicate their own views and values. There is no evidence that any faculty members (including those acknowledging the loss of virtually all faculty from the right of center) are honestly willing to reform their schools.

That ideological echo chamber is hardly an enticement for many facing rising tuition costs and relatively little hope of being taught by faculty with opposing views.

A Georgetown study recently found that only nine percent of law school professors identify as conservative at the top 50 law schools — almost identical to the percentage of Trump voters found in the new poll.

There is little evidence that faculty members are interested in changing this culture or creating greater diversity at schools.  In places like North Carolina State University a study found that Democrats outnumbered Republicans 20 to 1.

As college and university presidents face these shortfalls, it is time for legislators and donors to demand real proof of diversity in hiring and a change in the culture of these institutions. Otherwise, schools like Oregon will continue to close dorms as they push wokeness over wisdom.

Tyler Durden
Fri, 06/05/2026 – 13:40

“The Rebirth Of America’s Nuclear Industry”: Antares Microreactor Goes Critical

“The Rebirth Of America’s Nuclear Industry”: Antares Microreactor Goes Critical

Antares just did something that has been painfully rare in American nuclear energy: it took a privately developed advanced reactor from concept to actual criticality on an aggressive, publicly stated schedule.

On June 4th at Idaho National Laboratory (INL), the company’s Mark-0 microreactor achieved initial zero-power fueled criticality under the Department of Energy’s Reactor Pilot Program. 

When a reactor goes critical, it is experiencing a self-sustaining chain reaction of fissioning uranium atoms inside of its core. A zero-power fueled criticality means the reactor was taken critical at an extremely low power level to prevent any heat production or significant radiation and facilitate data collection. 

It is the first advanced reactor to hit that mark in the program and the first privately developed non-light-water reactor to reach criticality in the United States in more than four decades.

This is not another rendering or licensing milestone:

  • Fission happened
  • Ahead of schedule

We have been tracking the microreactor industry’s rapid evolution across multiple articles. The handful of developers positioning under the new DOE fast-track authorities created by President Trump’s May 2025 executive orders

In early April we detailed Antares securing the first-ever Documented Safety Analysis approval for an advanced reactor under DOE-STD-1271, which is a regulatory green light viewed as equivalent to an NRC license for their test reactor. 

We covered their selection for the Air Force’s Advanced Nuclear Power for Installations program at Joint Base San Antonio. And just last week we reported on their groundbreaking multi-year commercial HALEU supply agreement with Urenco, the first long-term commercial contract of its kind, securing fuel for scale beyond limited government allocations.

Today’s criticality is the concrete payoff from that string of updates.

The Mark-0 demonstration validates key reactor physics and overall system performance for Antares’ broader R1 transportable microreactor design. The unit is sized for 100 kWe to 1 MWe, with a targeted refueling interval of more than six years, factory-fabricated modularity, and high-temperature heat pipes. 

It uses TRISO fuel fabricated by BWX Technologies, drawing directly on the fuel specification and manufacturing work matured under the Department of Defense’s Project Pele military microreactor program. The U.S. Army was integrated throughout as a future end user.

Energy Secretary Chris Wright called it fitting on the eve of the nation’s 250th anniversary: the first new privately developed non-light-water reactor criticality in America in over 40 years. Assistant Secretary Ted Garrish noted the skeptics who doubted the Reactor Pilot Program could deliver criticality in less than a year. ANS President Mark Peters congratulated the team but correctly framed criticality as “a starting line, not a finish line.”

U.S. Chief Technology Officer Dr. Ethan Klein was a little more enthusiastic

Antares CEO Jordan Bramble on making history: “Hitting our commitments is everything to us. Nuclear in America has been defined for too long by delays, by companies that said they would and then didn’t. We said criticality in 2026, electricity production in 2027, and power to the warfighter in 2028. Today is the first of those commitments delivered on the schedule we set.”

The company went from concept to a critical reactor safely in less than 12 months. 

Criticality is the starting line. But for the first time in a long time, that line just got crossed on a credible, aggressive timeline rather than a bureaucratic one. The microreactor race has a clear early leader in execution. The question now is whether the rest of the industry and the policy apparatus treat this as the new baseline, or simply another headline before the next round of delays sets in.

Tyler Durden
Fri, 06/05/2026 – 13:20

New Footage Reveals Ford Carrier Damage Far More Severe Than Pentagon Acknowledged

New Footage Reveals Ford Carrier Damage Far More Severe Than Pentagon Acknowledged

Newly surfaced footage obtained by CNN indicates that a severe fire aboard the USS Gerald R. Ford – the world’s largest aircraft carrier – inflicted far more extensive damage than the Trump administration initially admitted to the public.

Early in the conflict it was forced to depart Mideast regional waters and retreat West in the Mediterranean, before undergoing extensive repairs at port in Croatia. Pundits were skeptical of official explanations, which suggested an accidental fire was sparked in the laundry room aboard the giant vessel.

US Navy file: Ford carrier

The major blaze erupted in March at a moment Iran claimed to have directly hit US naval vessels, but crisis was consistently downplayed by Pentagon officials at the time.

The obtained video reveals severely destroyed sleeping quarters, showing sailors’ bunks entirely reduced to charred, twisted metal. The ceiling directly above the berthing areas appears completely gutted by the intense flames, while exposed wiring hangs from overhead and thick ash blankets the floor.

One sailor and eyewitness stationed on board the aircraft carrier told CNN: “I seriously thought we were going to lose the ship. It’s either fight or die.”

This doesn’t sound like some localized fire in a small compartment, but a massive emergency – which as we now now derailed the Ford’s ongoing Iran mission in CENTCOM regional waters.

According to prior revealed details, it took the carrier’s crew approximately 30 hours of continuous damage control to fully extinguish the fire, clear out the wreckage, and importantly prevent the fire from reigniting. Some

600 sailors were displaced and left without access to their standard bunks, it had been revealed soon after the event took place.

While the definitive cause of the fire remains unclear, Tehran has claimed responsibility, asserting it successfully targeted the premier American aircraft carrier.

Again, this has fueled widespread speculation that the Iranian account could be accurate, given the Pentagon is known to have downplayed other instances where significant military hardware came under fire.

Prior reporting has also underscored that the blaze actually hindered combat operations against Iran. The incident has been confirmed to have resulted in a complete halt to two days of combat operations. Chief of Naval Operations Adm. Daryl Caudle, had described two months ago, “They fought that, put it out, and started flying sorties two days after that, so I’m very proud of that crew.”

Tyler Durden
Fri, 06/05/2026 – 12:40

Morgan Stanley Projects SpaceX Revenue Hitting Stratospheric $3.4 Trillion In 2040, $2.7 Trillion In EBITDA

Morgan Stanley Projects SpaceX Revenue Hitting Stratospheric $3.4 Trillion In 2040, $2.7 Trillion In EBITDA

Yesterday we shared a forensic analysis of the mechanics of the $75 billion SpaceX IPO and how to trade it, while specifically saying we are leaving the fundamentals aside. The reason for that is that the historicals of the company are, to put it mildly, problematic when it comes to projecting how the company grows into a multi-trillion behemoth. 

As a reminder, SpaceX posted revenue of just under $20 billion for the LTM period, with approximately $6 billion EBITDA and loss of $4 billion, virtually all driven by the conglomerate’s Connectivity (Starlink) division and to a lesser extend, the Launch Services division. Solid numbers on their own, but do they justify a $1.75 trillion in valuation?

So how exactly does SpaceX get from here to there? 

We got the answer this morning courtesy of the WSJ which got its hands on an analysis shared by Morgan Stanley with top investors. 

Needless to say, to support the $1.77 trillion valuation Elon Musk’s SpaceX is targeting in its IPO, bankers are telling investors to look to the future…. far into the future. 

Morgan Stanley projects that SpaceX’s revenue could reach $3.4 trillion in 2040. The bank told investors the rocket maker’s adjusted EBITDA in 2040 could top $2.7 trillion, or a largely unheard of 80% EBITDA margin.

Some more details: the WSJ also notes that sellside analysts at Goldman Sachs and Morgan Stanley both projected SpaceX’s revenue would be near $160 billion in 2028, up from $20 billion currently. Goldman estimated that the rocket company’s revenue would exceed $470 billion in 2030, while Morgan Stanley projected it would reach nearly $330 billion. Goldman and Morgan Stanley expect SpaceX to have adjusted EBITDA of around $110 billion in 2028 and $352 billion and $230 billion, respectively, in 2030. 

Using these data, we have charted how SpaceX revenue and EBITDA would have to grow (assuming a 2028 baseline of $160BN in revenue and $110 billion in EBITDA). The projection is… aggressive.

To get to those stratospheric – no pun intended – levels, both banks anticipate revenue from SpaceX’s AI business to provide the bulk of the revenue after this year and grow dramatically. Goldman projected that unit would contribute around $322 billion in 2030, while Morgan Stanley projected around $190 billion that year. SpaceX reported revenue from its nascent AI division of $3.2 billion in 2025.

How realistic are these assumptions? Some thoughts from Brandon Carl, who writes that the MS forecast would require 14% US GDP growth over 14 years . The long-term average is 6.5%.:

“Most Successful Company Ever” Assumptions

  • SpaceX commands 5% of US corporate profits
  • Corporate profits become 15% of GDP, by far a record

Implications

  • Total US corporate profits = $54 trillion
  • US GDP = $205 trillion
  • 14 year US GDP growth rate = 14%

“Still Aggressive” Assumptions

  • SpaceX commands 2% of corporate profits
  • Corporate profits are 10% of GDP, historically high
  • Then US GDP = $770 trillion growing at 26%

Assume that EBITDA is about 1.75x profits, so profits = $1.54 trillion.

Goldman and Morgan Stanley are certainly redefining the hockeystick when it comes to the SpaceX IPO: the two banks snagged the top two roles out of the 21 banks on SpaceX’s IPO, putting their banks in line to get the biggest shares of the hundreds of millions of dollars of fees. Which is why if for whatever reason the IPO bombs or fails to launch they stand to lose the most.

So will people “buy” these ludicrous projections? Well, according to Bloomberg, with one week left to go until the actual IPO, the offering is already oversubscribed.

  • *SPACEX IPO IS SAID TO DRAW MORE ORDERS THAN SHARES AVAILABLE

This means that the deal will almost certainly price at Musk’s desired offering price of $135. What happens after that is anyone’s guess. 

Tyler Durden
Fri, 06/05/2026 – 12:05

Micro-Cap ‘War Unicorn’ Merlin Soars After Advancing AI Pilot For C-130 Military Plane

Micro-Cap ‘War Unicorn’ Merlin Soars After Advancing AI Pilot For C-130 Military Plane

Aerospace and defense technology firm Merlin jumped in premarket trading after announcing that its AI-powered autonomous flight software for the C-130J Super Hercules cargo plane, developed with U.S. Special Operations Command, is moving toward formal testing.

Merlin wrote in a press release earlier that its AI-powered autonomous flight software has “successfully completed” the critical design review for the C-130J, adding the “milestone positions the program to enter a structured formal test campaign, including aircraft-level testing, reflecting a disciplined systems engineering progression from design through verification.”

The Merlin AI Pilot will automate flight operations for the C-130J from takeoff to touchdown and is framed as an “operating system” for autonomous aviation.

The C-130 is the workhorse cargo plane of the U.S. military. The upgraded version, by slapping a “J” on the end, includes:

  • Newer turboprop engines

  • Six-blade composite propellers

  • Digital cockpit and avionics

  • Reduced crew requirements

  • Better range, climb, speed, and fuel efficiency than older C-130s

Shares of the micro-cap defense company jumped 28% in premarket trading.

Merlin also pointed out that it is “rapidly advancing its AI-powered autonomy stack onboard the C-130J, with potential pathways for expansion across other Department of War or commercial aviation platforms.”

The rise of “war unicorns” has been an important theme this year as the Department of War resets its procurement program toward startups and away from big legacy primes.

Goldman analysts also recognize the rise of defense startups and sat down with Palmer Luckey’s Anduril earlier this week. Read the note here.

Tyler Durden
Fri, 06/05/2026 – 11:50

ISS Astronauts Told To Prepare For Possible Evacuation As Air Leak Worsens

ISS Astronauts Told To Prepare For Possible Evacuation As Air Leak Worsens

NASA senior adviser and press secretary Bethany Stevens wrote on X that astronauts aboard the International Space Station have quickly shifted into SpaceX’s Dragon spacecraft and are prepared to evacuate if needed, after cracks and leaks in the Zvezda service module transfer tunnel appeared to worsen.

“The Zvezda service module transfer tunnel, known as PrK, has suffered from cracks and leaks for some time, and has been mitigated by Roscosmos as much as possible to date. The cracks have always been a concern that NASA watches very closely,” Stevens said.

According to NASA, the Zvezda service module is 43 feet long and contains living quarters, life support systems, communications systems, electrical power distribution systems, data processing systems, flight control systems, and propulsion systems.

Stevens continued, “The cracks have always been a concern that NASA watches very closely. NASA and Roscosmos have been working to determine the root cause of the cracks, and Roscosmos manages the issue through operational mitigation measures and periodic partial-repair efforts.”

Out of caution, NASA ordered all four SpaceX Crew-12 members, along with NASA astronaut Chris Williams, to be on high alert inside Dragon during the repair.

NASA said it continues to work with Roscosmos and other station partners toward a more permanent fix for the long-running issue.

Reuters cited a senior NASA official who said the air leak has been monitored over the last few months but significantly worsened earlier this week, increasing from a loss of one pound of air per day to two pounds per day.

Tyler Durden
Fri, 06/05/2026 – 11:20

The Atomic Crab

The Atomic Crab

By Benjamin Picton, senior market strategist at Rabobank

The Atomic Crab

The Dow Jones hit a fresh all-time high yesterday, surging 1.73% to close at 51,562. The S&P500 posted more modest gains while the NASDAQ closed slightly lower as investors rotated out of some growth-oriented tech names and back towards healthcare and financials with more of a value or cyclical flavor.

Treasuries traded in a narrow range to close with yields little changed, while European sovereigns mostly saw modest declines in yields with the slightest hint of bull steepening evident in some curves. The Bloomberg Dollar spot index was down slightly but is inching higher again in early trade this morning.

Oil markets continue to be a point of focus. Front-month Brent futures closed 2.84% lower yesterday as markets remain of a Pollyanna state of mind over the status of the Strait of Hormuz. Dated Brent went the other way to post a (very) small gain yesterday after a 3.61% lift on Wednesday. The Singapore gasoil for spot delivery index was down 4.45% to $136.57/bbl.

Scuttlebutt over the status of US-Iran peace talks continued to dominate headlines yesterday. Following Donald Trump’s announcement of a Israel/Lebanon ceasefire that was contingent on Hezbollah ceasing its attacks on Israel we had confirmation this morning that Hezbollah has no intention of halting strikes. Hezbollah leader Naim Qassem made a statement on Thursday saying that “as long as the occupation exists, the resistance will continue” and calling the negotiations between the Lebanese government and Israel “absurd, humiliating and shameful.”

For Israel’s part, defence minister Katz has said that Israeli attacks in Southern Lebanon will continue and that the IDF will maintain “freedom of action” including in Beirut – which has been a red line for the Americans. Benjamin Netanyahu has recently faced criticism at home for being seen to be too compliant with American demands over strikes in Lebanon. Netanyahu faces an election in October, which polling suggests he may lose. Peace on all fronts was an Iranian condition precedent for reopening Hormuz and commencing the 60-day nuclear talks, but it seems that neither belligerent is interested.

Meanwhile, Donald Trump’s language on the Iran peace talks has gone from “deal imminent”, to “a deal soon, maybe” to “actually, we really don’t need a deal”. Trump showed signs of crabwalking away from a key demand that Iran hand over its stockpile of highly enriched uranium by saying that he does not need a deal with Iran to secure the uranium, but that there was no reason to send US troops into Iran to do so because the uranium is “entombed”.

Regular readers will recall that RaboResearch updated our Iran war baseline forecast two weeks ago to say that we didn’t think a meaningful deal would stick in the short term, and that the Strait of Hormuz would consequently remain functionally closed until September at least. The incompatibility of the two parties’ nuclear demands was a key factor in this judgement, so it is significant that Trump is now showing hints of softening his position on this point. However, capitulation on the highly enriched uranium or the limits of Iran’s nuclear enrichment program shifts the needle back towards US strategic defeat, with potentially grave consequences for all who have prospered under 80-years of Pax Americana.

We noted here yesterday that Bloomberg had reported that the IAEA had published a restricted document arguing that the nuclear risk posed by Iran is now higher than it was prior to the war. Subsequently, Bloomberg has reported that Iran has permitted IAEA monitors to inspect its Bushehr nuclear plant within the last week, but that Iran has steadfastly refused to comply with requests to verify the condition and location of its highly enriched uranium.

Needless to say, while the US-Iran stalemate continues global oil and oil products stocks continue to run down towards dangerously low levels. Vitol board member Tom Baker recently said that the oil trader estimated global demand destruction at about 4 million barrels a day, mostly from emerging Asia and Africa. China alone has reportedly reduced daily imports by close to 4 million barrels, while strategic reserve releases coordinated by the IEA have also been running close to 4 million barrels a day.

It’s not entirely clear whether or not there is some double counting in the Vitol estimates and China import drop-off, but the back of the napkin calculation gets us somewhere close to the ~12mbbl/day estimated supply loss from the Hormuz closure, and goes some way toward explaining why oil prices have remained remarkably low. Nevertheless, this remains a stocks to flows problem, and the cracks cannot be papered over indefinitely without supply tightness also being felt materially in developed markets.

While China’s reduction in oil imports helps planet earth rebalance energy flows, movements are afoot in Australia to counter Chinese monopsony power over the iron ore trade. China recently formed the state-owned China Mineral Resources Group to coordinate purchases of iron ore cargoes for China’s steel industry and exert market power to ensure that suppliers are paid in CNY, rather than USD. Australian firms supply more than 50% of global iron ore, but those firms have seen their market power eroded by alternative supply coming online in west Africa and an inability to coordinate to counter Chinese market power.

The Australian Financial Review this morning reports overtures from iron ore majors to the Australian government to counter monopsony buying power and give producers more say over how much they are paid and in which currency. Could we see state-backed single desk iron ore marketing in the land down under? Australia’s second-closest neighbour Indonesia recently did just that for coal, palm oil and ferroalloys, and has the world’s largest reserves of nickel – a critical input for Chinese stainless steel and EV battery production.

Elsewhere, there are again renewed hopes for peace prospects in Ukraine as Kyiv’s long-range drone strikes continue to cause havoc deep inside Russia. Vladimir Putin’s St Petersburg International Economic Forum (a kind of Davos for dictators) was recently interrupted by Ukrainian drone strikes on nearby Russian oil infrastructure – prompting Putin to vow that Russia will bolster its defenses against Ukrainian air attacks.

At the same time, Russia’s spring/summer offensive appears to have stalled and news outlets are reporting that Putin is signalling openness to a compromise on Ukraine in line with discussions held with President Trump in Alaska. Putin says that Ukraine needs to accept those compromises, but might there be some wiggle room for Ukraine to extract a better deal given the changed battlefield calculus? For his part, Zelenskyy is pushing for face-to-face talks with Putin to reach peace terms, but Putin says that he will only meet once terms have already been agreed, and that he will only meet in a neutral third-party country, which rules out EU member states in his view.

Tyler Durden
Fri, 06/05/2026 – 10:55