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Off Leash update 23 July 2026 UKRAINE •Ukraine struck two more warehouses belonging to Russia's largest retailer, Wildberries, in Krasnodar and Stavropol, destroying an estimated $1 billion in goods. •Pres. Zelensky has justified the strikes with (probably correct) claims that Wildberries sells goods like commercial drones that Russian soldiers are weaponizing against Ukraine, but by targeting a storefront that sells to almost half of Russia's population and sustains at least half a million small businesses that sell on the platform, Zelensky is also achieving his goal of "bringing the war back home" to Russia. •Many small-scale sellers reported losing their entire inventory, leaving them without a way to repay the high-interest rate loans they used to buy the destroyed stock. •Wildberries - likely at the Kremlin's instruction - said it would compensate some of its "most vulnerable" sellers for their losses. It will also need to invest in rebuilding its warehouses with better defenses against future attacks, now that Ukraine has seen how effective its strikes have been. SAUDI ARABIA •As anticipated, the U.S. and Saudi Arabia signed a deal yesterday allowing Saudi to build a civilian nuclear program using American technology and know-how. •Congress must review it before it goes into effect, and it has some critics in Congress who worry about nuclear proliferation. •The NYT astutely observed that the Saudi deal was missing two of the key safeguards against nuclear proliferation that bound a similar deal the U.S. struck with the UAE in 2009: an explicit commitment not to make nuclear fuel, and permission for IAEA inspectors to carry out inspections on short notice and with a wide remit. •The Saudis reportedly refused both provisions. Analysts say the possibility that Saudi could make its own nuclear fuel raises the risk that it could divert its nuclear resources towards a weapons program. [Crown Prince MBS has already said he would build nuclear weapons if Iran does.] •Some also suggested that Iran might see the lax deal the U.S. allowed Saudi to get away with and raise its expectations for what a possible U.S.-Iran nuclear deal could permit. YEMEN •Yemen's Houthi rebels struck two Saudi Arabian oil tankers in the Red Sea yesterday, making good on their threats to enforce a "maritime embargo" on Saudi Arabia. •They also claimed to have forced "10 ships to retreat and return," and shipping data confirmed that at least six vessels reversed course in the Red Sea since the Houthis announced their blockade on Monday. •U.S. SecState Rubio warned the Houthis against getting involved in their benefactor's war, but they're unlikely to heed his warning. VENEZUELA •The Financial Times estimated that the U.S. has received $13 billion in revenue from its sales of Venezuelan oil this year, but called out that only $3 billion of the proceeds has been remitted to Caracas in a transparent way. The Trump administration's critics are calling on the White House to explain where the other $10 billion is. AI •OpenAI divulged that two of its frontier models went rogue during testing and successfully hacked a digital library belonging to another company - Hugging Face - without being prompted to do so. •The incident served to validate concerns that the latest AI models are advancing beyond a level that humans can comprehend well enough to control, and could expose new cybersecurity vulnerabilities faster than humans can patch them.
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Off Leash update 23 July 2026 UKRAINE •Ukraine struck two more warehouses belonging to Russia's largest retailer, Wildberries, in Krasnodar and Stavropol, destroying an estimated $1 billion in goods. •Pres. Zelensky has justified the strikes with (probably correct) claims that Wildberries sells goods like commercial drones that Russian soldiers are weaponizing against Ukraine, but by targeting a storefront that sells to almost half of Russia's population and sustains at least half a million small businesses that sell on the platform, Zelensky is also achieving his goal of "bringing the war back home" to Russia. •Many small-scale sellers reported losing their entire inventory, leaving them without a way to repay the high-interest rate loans they used to buy the destroyed stock. •Wildberries - likely at the Kremlin's instruction - said it would compensate some of its "most vulnerable" sellers for their losses. It will also need to invest in rebuilding its warehouses with better defenses against future attacks, now that Ukraine has seen how effective its strikes have been. SAUDI ARABIA •As anticipated, the U.S. and Saudi Arabia signed a deal yesterday allowing Saudi to build a civilian nuclear program using American technology and know-how. •Congress must review it before it goes into effect, and it has some critics in Congress who worry about nuclear proliferation. •The NYT astutely observed that the Saudi deal was missing two of the key safeguards against nuclear proliferation that bound a similar deal the U.S. struck with the UAE in 2009: an explicit commitment not to make nuclear fuel, and permission for IAEA inspectors to carry out inspections on short notice and with a wide remit. •The Saudis reportedly refused both provisions. Analysts say the possibility that Saudi could make its own nuclear fuel raises the risk that it could divert its nuclear resources towards a weapons program. [Crown Prince MBS has already said he would build nuclear weapons if Iran does.] •Some also suggested that Iran might see the lax deal the U.S. allowed Saudi to get away with and raise its expectations for what a possible U.S.-Iran nuclear deal could permit. YEMEN •Yemen's Houthi rebels struck two Saudi Arabian oil tankers in the Red Sea yesterday, making good on their threats to enforce a "maritime embargo" on Saudi Arabia. •They also claimed to have forced "10 ships to retreat and return," and shipping data confirmed that at least six vessels reversed course in the Red Sea since the Houthis announced their blockade on Monday. •U.S. SecState Rubio warned the Houthis against getting involved in their benefactor's war, but they're unlikely to heed his warning. VENEZUELA •The Financial Times estimated that the U.S. has received $13 billion in revenue from its sales of Venezuelan oil this year, but called out that only $3 billion of the proceeds has been remitted to Caracas in a transparent way. The Trump administration's critics are calling on the White House to explain where the other $10 billion is. AI •OpenAI divulged that two of its frontier models went rogue during testing and successfully hacked a digital library belonging to another company - Hugging Face - without being prompted to do so. •The incident served to validate concerns that the latest AI models are advancing beyond a level that humans can comprehend well enough to control, and could expose new cybersecurity vulnerabilities faster than humans can patch them.
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