Secretary of State Marco Rubio warned China that "the sovereignty of our hemisphere is non-negotiable" after the U.S. and regional allies accused Beijing of detaining Panama-flagged ships in a dispute tied to canal port control. In a joint statement with Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago, the U.S. said China’s actions targeting Panama-flagged vessels were a "blatant attempt to politicize maritime trade" and infringe on regional sovereignty, framing the dispute as a broader strategic test over control of one of the world’s most critical commercial arteries. While the Panama dispute centers on shipping detentions rather than a physical blockade, critics increasingly view it alongside battles over other strategic choke points, such as the Strait of Hormuz, as part of a widening contest over whether Beijing or Washington will shape the rules governing global trade and energy corridors. IRAN’S $800M OIL SMUGGLING SCHEME USES TANKERS POSING AS IRAQI SHIPS TO DODGE BLOCKADE The confrontation follows Panama’s Supreme Court decision earlier in 2026 to invalidate the legal framework behind Hong Kong-based CK Hutchison’s long-held control of the Balboa and Cristobal terminals flanking the Panama Canal, a choke point that handles roughly 5% of global maritime trade. U.S. regulators have monitored nearly 70 Panama-flagged vessels detained by Chinese authorities since March 8, according to Reuters — a surge American officials say appears designed to retaliate against Panama and pressure global shipping. "China has used Iran to destabilize the Middle East. In effect, Iran has been China’s proxy," China expert Gordon Chang told Fox News Digital, arguing Beijing’s actions in Panama fit a broader global pattern in which China uses economic leverage, trade pressure and regional partners to expand influence while condemning similar tactics from Washington. Chang said Beijing is now facing growing resistance as the U.S. increasingly moves not only against China directly, but also against governments and geopolitical flashpoints he argues have strengthened Beijing’s hand. "Trump apparently decided that he would counter this sly tactic by taking China’s proxies — Venezuela, Cuba, and Iran — off the board," Chang said. HOUSE REPUBLICANS INTRODUCE BILL TO REPURCHASE PANAMA CANAL AFTER TRUMP RAISES CONCERNS OF CHINESE CONTROL He also framed pressure on Iran and threats to the Strait of Hormuz as part of a larger strategic effort aimed at both Tehran and Beijing. "Closing the Strait of Hormuz is a two-fer, starving Iran’s regime and shaking China’s already fragile economy," Chang said. "Trump is using energy to reorder the world." Chang also accused Beijing of hypocrisy over trade. "China’s Communists invented hypocrisy. Nobody does hypocrisy better than the Chinese Communists," he said, arguing China long benefited from a global trading system it increasingly weaponized for geopolitical purposes. "The elemental truth is that China started this cycle of action and retaliation," Chang said. "If China had not threatened America, America would not have leaned on Panama. If America had not leaned on Panama, China would not have detained Panamanian vessels." CLICK HERE TO DOWNLOAD THE FOX NEWS APP China has rejected accusations that it is politicizing trade, with its foreign ministry arguing U.S. criticism reflects Washington’s own strategic ambitions around the canal. China's foreign ministry called the statement on Wednesday "entirely baseless and misleading", said it would take steps to safeguard China's interests in Panama, and accused the United States of politicizing ports, according to Reuters. "China also urges the relevant countries not to be deceived or exploited by malevolent forces," added Lin Jian, a foreign ministry spokesperson. Fox News Digital reached out to the Chinese Embassy in Washington, D.C., for comment but did not receive a response in time for publication. Reuters contributed to this article.
Secretary of State Marco Rubio warned China that "the sovereignty of our hemisphere is non-negotiable" after the U.S. and regional allies accused Beijing of detaining Panama-flagged ships in a dispute tied to canal port control. In a joint statement with Bolivia, Costa Rica, Guya…
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The Houthis in Yemen have announced a blockade of Saudi Arabian shipping through Red Sea ports, including at the Bab el-Mandeb strait. The group, described as Iran-backed, stated the measure would target the top oil exporter following recent exchanges of fire.
Reports indicate this could add to existing maritime disruptions in the Strait of Hormuz linked to US-Iran confrontations.
A Reuters poll of economists conducted July 7-16 shows that most Gulf Cooperation Council economies are now projected to contract more sharply in the current year than estimated three months earlier, with median forecasts indicating declines of 8.1% for Kuwait and Qatar, 5.
1% for Bahrain, and 0.5% for the UAE. Saudi Arabia and Oman remain the only GCC economies expected to expand. The poll links the revisions to reduced export volumes through the Strait of Hormuz, higher freight costs, and weaker investor sentiment, even as oil prices have risen.
Initial reports indicate that a limited number of vessels transited the waterway during the first full day after the United States implemented a naval blockade of Iran. These observations have not been independently verified.
The head of the UN’s nuclear agency yesterday signaled that Iranian nuclear enrichment sites would be visited by his inspectors, a key component in the interim deal between the US and Iran to reach an end to their war. The comment by International Atomic Energy Agency (IAEA) Director-General Rafael Grossi was the firmest yet from the agency, which is viewed as key in determining the status of Iran’s nuclear stockpile.
Since Israel launched a 12-day war on Iran last year, the IAEA has been blocked by Tehran from visiting enrichment sites where the Islamic republic is believed to store enough highly enriched uranium to potentially build as many as 10 nuclear weapons.
Photo: AP Iran has said that its program is peaceful, although it would be the only country in the world to have uranium enriched up to 60 percent purity without a weapons program. The US and Iran offered contradictory remarks on Tuesday about whether those sites would be inspected.
“I can understand political statements, they are part of the reality, but the fundamental thing I would like to remind you and draw your attention to is that there has been a memorandum of understanding, signed by both presidents,” Grossi told journalists at a news conference at the Fukushima Dai-ichi nuclear power plant.
The accord “explicitly states that the nuclear activities that are going to be carried out with the regards of the nuclear material facilities will be supervised by the IAEA — in all letters,” he said. “Obviously, to do that, we have to inspect,” Grossi added.
BOOST: By operating the same advanced systems as the US military, Taiwan would be better positioned to share and integrate intelligence with partners, an expert said The first batch of MQ-9B SkyGuardian drones has arrived in Taiwan, and is being assembled and tested by drone manufacturer General Atomics and the military ahead of flight trials as part of the air force’s acquisition to bolster its aerial surveillance capabilities, a source said yesterday.
The air force allocated a budget of NT$21.7 billion (US$687 million) from 2022 to 2029 to procure four MQ-9B uncrewed aerial vehicles (UAVs) manufactured by General Atomics along with associated equipment such as ground control stations. The US has agreed to deliver the four MQ-9Bs to Taiwan in two batches this year and next ‘BRAZEN’: The holiday did not stop China from activities that infringe on Taiwan’s maritime jurisdiction, but the CGA is ready to defend the nation, Kuan Bi-ling said Beijing is intensifying maritime pressure on Taiwan, but the nation will never yield, Ocean Affairs Council Deputy Minister Sung Chen-en (宋承恩) said.
The Coast Guard Administration (CGA) has adopted a “shadowing and monitoring” approach to avoid falling into a Chinese trap to escalate tensions and deepen the conflict, Sung said in an interview published yesterday in the Chinese-language Liberty Times (the Taipei Times’ sister newspaper).
China Coast Guard formations patrolling waters east of Taiwan, as well as official Chinese vessels entering areas around Itu Aba Island (Taiping Island, 太平島) and Pratas Islands (Dongsha Islands, 東沙群島) show Beijing’s attempts to significantly step up Taiwanese firms’ China investments have dwindled to less than 1 percent of their total foreign investments, putting China-based investments on track for a record low this year, Ministry of Economic Affairs data showed.
Taiwan’s investments abroad in the first five months of this year reached US$35.92 billion, Department of Investment Review data showed. Investments outside China totaled US$35.61 billion, up 133.94 percent year-on-year, while investments in China totaled US$310.
3 million, down 32.3 percent and about 0.86 percent of the total, data showed. Major overseas projects included Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$30 billion capital injection into an overseas subsidiary, VARYING OPINIONS: People with different political affiliations have different views on how bilateral ties with the US, Japan and China would affect Taiwan’s security Two-thirds of Taiwanese view closer US and Japan ties as beneficial to security, a survey by Taiwan’s top military think tank showed.
To gauge the Taiwanese public’s perceptions of how different external relationships affect security, the Institute for National Defense and Security Research commissioned a survey by National Chengchi University’s Election Study Center asking respondents whether closer relations with the US, Japan and China would strengthen or weaken Taiwan’s national security.