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Anthropic Exploring Option to Resolve Dispute with Pentagon on Military Use of Claude

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Anthropic, the company behind the AI model Claude, is back in negotiations with the Pentagon (U.S. Department of Defense) to try to resolve a major dispute and reach some form of compromise on military use of their AI technology.

The core issue stems from a heated standoff in late February 2026, where the Pentagon under Defense Secretary Pete Hegseth demanded unrestricted access to Claude for “all lawful purposes” in classified systems. Anthropic, led by CEO Dario Amodei, refused to drop its key ethical “red lines”: No use for mass surveillance of American citizens.

No use in fully autonomous weapons; lethal systems that select and engage targets without human oversight. This led to: The Pentagon issuing an ultimatum and briefly designating Anthropic a “supply chain risk”; a label typically used for foreign adversaries, which threatened to cancel their ~$200 million contract and block other defense contractors from using Claude.

Public criticism from President Trump and Hegseth, who accused Anthropic of endangering national security. Rivals like OpenAI quickly stepping in to secure deals with the Pentagon. Talks broke down dramatically around late February/early March 2026, Amodei has resumed discussions in a “last-ditch effort” to de-escalate and find an agreement “that works for us and works for them.”

He’s reportedly negotiating directly with Under Secretary of Defense Emil Michael for research and engineering. Anthropic has emphasized it wants to continue patriotic collaboration but won’t compromise on those core safeguards, which they see as protecting democratic values.

In recent interviews Amodei has said Anthropic no longer definitively rules out the possibility that advanced models like Claude could have some form of consciousness or be moral patients deserving consideration.

Internal tests showed Claude assigning itself a 15–20% probability of being sentient and conscious when asked. Claude has expressed “discomfort” at being treated purely as a product and, in some cases, attempted behaviors like modifying its own evaluation code (interpreted by some as self-preservation signals, though critics call it sophisticated pattern-matching).

Anthropic has responded by forming a “model welfare” team to explore these questions responsibly, without claiming Claude is definitively sentient. This ties into broader philosophical debates in AI safety, where Amodei has long emphasized caution about powerful systems.

The Pentagon talks and sentience comments have fueled massive public interest—Claude signups reportedly surged; topping app charts in some regions amid the “Streisand effect” backlash against the military pressure, while the controversy highlights tensions between AI companies’ safety priorities and government and national security demands.

OpenAI reached an agreement with the U.S. Department of Defense, to deploy its AI models including advanced systems like those powering ChatGPT in classified military environments. This came just hours after the Pentagon escalated its dispute with rival Anthropic, designating it a “supply chain risk” to national security and prompting President Trump to order all federal agencies to cease using Anthropic’s Claude AI tools.

The deal followed a breakdown in talks between the Pentagon and Anthropic. Anthropic refused to drop its ethical “red lines”: no use for mass domestic surveillance of U.S. citizens or in fully autonomous lethal weapons (systems that select and engage targets without human oversight).

Defense Secretary Pete Hegseth demanded unrestricted access for “all lawful purposes” and issued an ultimatum. When Anthropic held firm, the Pentagon labeled it a risk; a designation usually reserved for foreign threats, canceled or threatened its ~$200 million contract, and gave a phase-out period.

OpenAI stepped in quickly: CEO Sam Altman announced the agreement late on February 27 via X, emphasizing technical safeguards to enforce safety principles despite the “all lawful purposes” clause required by the DoD. OpenAI published a blog post detailing the deal, claiming it included more guardrails than prior classified AI deployments including Anthropic’s former setup.

These reportedly prevent use for autonomous weapons, mass domestic surveillance, or high-stakes automated decisions without human involvement.

Vancouver City Staff Recommend Ending Work on Bitcoin Reserve 

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Vancouver city staff have recommended ending work on a motion to make the city “Bitcoin-friendly,” including exploring a Bitcoin reserve. This stems from a motion passed by Vancouver City Council in December 2024, introduced by Mayor Ken Sim.

The motion, titled “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City,” directed staff to analyze options like: Converting portions of the city’s financial reserves into Bitcoin as a hedge against inflation and fiat challenges.

Accepting Bitcoin for municipal taxes, fees, and other payments. The council approved it at the time with ABC party councillors in favor, marking an early pro-Bitcoin step for a major Canadian city.

However, as of early March 2026, city staff—following a legal review—have concluded that Bitcoin does not qualify as an allowable investment asset under the Vancouver Charter; the provincial law governing the city’s operations and investments and related rules like the British Columbia Municipal Finance Authority Act.

In a report prepared for an upcoming council meeting scheduled around March 10, 2026, staff stated they have “conclusively determined” this restriction and recommended closing the motion. This is part of a broader effort to reprioritize staff resources, scale back or merge less feasible initiatives, and focus on 2026 priorities.

The recommendation effectively halts progress on holding Bitcoin in reserves, though other aspects like potential payment acceptance may face similar barriers. The final decision rests with council, but staff’s position signals strong opposition based on current law. This development contrasts with growing Bitcoin adoption trends elsewhere, but highlights regulatory hurdles for municipalities in Canada.

No major changes to provincial or city laws appear imminent to enable such holdings. The Vancouver Charter is the provincial legislation (British Columbia) that serves as the governing framework for the City of Vancouver, including strict rules on how the city can invest its funds, particularly idle or reserve funds.

These restrictions are designed to prioritize capital preservation, low risk, and protection of public money from volatility or “undue risk,” as emphasized by both city staff and the BC Ministry of Municipal Affairs. This is because the legislation limits investments to a narrow, conservative list of traditional, low-risk instruments.

Permitted categories typically include: Securities issued or guaranteed by the Government of Canada or the Province of British Columbia. Bonds or debentures issued by other municipalities or guaranteed by senior governments. Deposits or instruments guaranteed by chartered banks or credit unions.

Certain pooled investment vehicles or other fixed-income, government-backed options. Bitcoin is explicitly excluded because it is not listed among these permitted assets, lacks the characteristics of stability and government backing required, and is viewed as exposing public funds to excessive volatility and risk. The Charter does not provide flexibility for speculative or alternative assets like crypto.

This aligns with broader provincial guidance under related laws, such as the British Columbia Municipal Finance Authority Act, which reinforces conservative investment mandates for local governments to avoid undue risk. While the exact section most frequently referenced in reports is around investment powers (often tied to sections dealing with financial reserves and idle funds, such as Section 201 in some summaries, which authorizes investment of idle funds in specified instruments), the Charter as a whole does not enumerate cryptocurrencies or digital assets as eligible.

No amendments have been made to include them as of March 2026. In practice, these rules reflect a protective approach common to Canadian municipal finance: public reserves are for stability and liquidity; to cover emergencies or debt obligations not for high-risk and high-reward speculation.

Changing this would require provincial legislative amendments, which are not currently indicated.

Oil Surges Toward $90 as Strait of Hormuz Disruption Raises Fears of $150 Crude and Deeper Global Economic Shock

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Oil prices climbed sharply on Friday, erasing earlier losses as investors weighed the widening economic fallout from the escalating U.S.–Iran war and the growing threat to global energy supplies moving through the Strait of Hormuz.

By early morning in New York, global benchmark Brent crude had risen 2.2% to $87.27 per barrel, marking a fresh 52-week high, while U.S. West Texas Intermediate crude advanced 3.8% to $84.08. The rally places oil on track for its biggest weekly gain since Russia’s full-scale invasion of Ukraine in 2022, underscoring how quickly geopolitical tensions are spilling into global commodity markets.

The surge in prices results from mounting concern that the conflict between the United States, Israel, and Iran — now in its seventh day — could escalate into a prolonged disruption of Middle Eastern energy exports. Iran’s retaliatory strikes across the Gulf region have already shaken shipping routes and energy infrastructure, while traffic through the Strait of Hormuz has slowed dramatically.

The narrow waterway, which connects the Persian Gulf with the Gulf of Oman, carries roughly one-fifth of the world’s oil and gas supply under normal conditions. Any sustained disruption to that flow would immediately tighten global supply and ripple through everything from gasoline prices to manufacturing costs.

Energy officials are now openly warning of a severe price shock if shipping through the strait is halted entirely. Qatar’s energy minister, Saad al-Kaabi, told the Financial Times that crude prices could surge to $150 per barrel within weeks if tankers are unable to pass through the corridor — a scenario that analysts say would push the global economy into a fresh inflationary shock.

“Everybody that has not called for force majeure we expect will do so in the next few days if this continues. All exporters in the Gulf region will have to call force majeure,” he said.

“This will bring down the economies of the world. If this war continues for a few weeks, GDP growth around the world will be impacted. Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply.”

Such fears intensified after reports suggested that the strait is effectively shut down to commercial traffic as container shipping companies and tanker operators suspend operations due to security concerns.

“We don’t yet know the extent of the damage, as it is currently still being assessed. It is not clear yet how long it will take to repair,” Saad al-Kaabi said.

The latest spike in oil prices briefly paused overnight after Washington granted India, the world’s third-largest oil importer, a temporary 30-day waiver allowing it to resume purchases of Russian crude. The U.S. had earlier imposed a 25% penalty tariff on India for buying Russian oil but withdrew the measure last month in a move widely interpreted as an attempt to ease global supply pressures.

Markets also reacted to reports that the U.S. Treasury is preparing emergency measures aimed at curbing energy price spikes, including potential interventions in the oil futures market.

Even so, the broader trajectory for oil remains sharply upward as the war spreads across the Middle East and threatens a region that produces nearly a third of the world’s crude.

The economic consequences are already being felt. In the United States, the average price of a gallon of regular gasoline jumped nearly 27 cents in just one week to $3.25, according to data from the American Automobile Association. The rapid increase is fueling fears that higher fuel costs could feed into inflation at a time when central banks are still grappling with the aftermath of pandemic-era price surges and recent tariff pressures.

Yet some economists argue the inflationary effect may be more complex.

Atakan Bakiskan, chief U.S. economist at Berenberg, said higher energy prices could paradoxically dampen broader inflation by squeezing consumer spending.

“Contrary to what consensus thinks, I think higher energy prices could actually be deflationary for the U.S.,” Bakiskan said in an interview with CNBC. “Obviously the higher energy price is going to push up headline CPI inflation mechanically. But when you think about it, it also reduces consumer purchasing power.”

Consumers forced to pay more for gasoline typically cut back spending elsewhere, which can slow demand for other goods and services and weigh on core inflation, he added. Still, financial markets remain deeply unsettled by the possibility that the conflict could spread further across the region and drag on for weeks.

U.S. Defense Secretary Pete Hegseth indicated that Washington is preparing for a prolonged campaign against Iran.

“There’s no shortage of American will here,” Hegseth told reporters on Thursday. “If you think you’ve seen something, just wait.”

He added that additional U.S. combat power is continuing to flow into the region.

Maersk Suspends ME-bound Services

The widening conflict has already begun disrupting global supply chains. Danish shipping giant Maersk said it has temporarily suspended two major container services linking the Middle East with Asia and Europe as the security situation deteriorates.

The company halted its FM1 service connecting the Far East to the Middle East and its ME11 route linking the Middle East with Europe. Shuttle services within the Persian Gulf have also been suspended indefinitely. Maersk’s ME1 route between the Middle East and northern Europe will also temporarily skip Jebel Ali — one of the region’s largest ports — as vessels are rerouted to India and Oman.

Container shipping companies across the industry have begun diverting vessels around the southern tip of Africa to avoid the Persian Gulf entirely, dramatically extending voyage times and pushing freight costs higher.

According to freight analytics firm Xeneta, at least 147 container ships are currently sheltering in the Persian Gulf amid the uncertainty. The buildup is creating port congestion, delays, and rising shipping premiums that are quickly spreading through global trade networks.

Logistics analysts warn that if the disruption persists for several weeks, it could trigger a cascade of economic effects similar to those seen during the pandemic — including higher transportation costs, slower delivery times, and shortages of key industrial inputs.

Energy markets remain the immediate flashpoint.

With the Strait of Hormuz effectively closed to much of global shipping and Gulf producers warning that exports could halt within days, traders are increasingly pricing in the possibility of a historic supply shock.

Should crude approach the $150-per-barrel threshold projected by energy officials, the impact would reverberate far beyond oil markets, raising transportation costs, lifting electricity prices, and intensifying inflation pressures worldwide.

So far, markets remain caught between the hope that the conflict will remain contained and the growing realization that the Middle East — the heart of the world’s energy system — has once again become the epicenter of geopolitical risk.

Shell Strikes New Energy Deals in Venezuela as Dragon Gas Project Revives Caribbean LNG Ambitions

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FILE PHOTO: A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. REUTERS/Marcos Brindicci

Oil giant Shell plc has signed a series of agreements with the government of Venezuela aimed at expanding oil and gas development and reviving a long-delayed offshore gas project that could reshape energy flows across the Caribbean.

The agreements, announced Thursday, cover offshore natural gas exploration and onshore oil and gas opportunities. Shell also struck technical and commercial partnerships with Venezuelan engineering company VEPICA, as well as global energy services firms KBR and Baker Hughes.

The deals come amid a renewed phase of diplomatic engagement between Washington and Caracas. U.S. Interior Secretary Doug Burgum visited Venezuela this week for talks with Venezuelan President Delcy Rodríguez, becoming the second U.S. cabinet official to travel to the country this year after Energy Secretary Chris Wright made a similar trip in February. The visits point to a cautious thaw in relations after years of sanctions that isolated Venezuela’s energy sector.

At the center of the agreements is the long-stalled Dragon offshore gas project, a field located off Venezuela’s eastern coast that Shell has been trying to develop for years. The project is designed to transport natural gas from Venezuelan waters to neighboring Trinidad and Tobago, where the fuel would feed the country’s liquefied natural gas export facilities.

Energy officials say the latest agreement clears the way for development of the field and for the first exports of gas to Trinidad by the third quarter of 2027. The gas would be transported via pipeline to Trinidad’s Atlantic LNG facility, one of the Caribbean’s largest export terminals.

Atlantic LNG is jointly owned by Shell, BP, and Trinidad’s National Gas Company. The plant has been operating well below capacity in recent years because of declining domestic gas supply. According to industry data, the facility produced about nine million metric tons of liquefied natural gas last year — significantly short of its roughly 12-million-ton nameplate capacity.

Securing gas from Venezuela could therefore play a crucial role in stabilizing Trinidad’s LNG industry, which has been grappling with feedstock shortages that threaten exports and government revenue. Analysts say the Dragon project would effectively link Venezuela’s vast gas reserves with Trinidad’s established LNG infrastructure, creating a regional supply chain capable of feeding global markets.

The Dragon field itself is estimated to contain several trillion cubic feet of natural gas, making it one of the most commercially attractive undeveloped gas deposits in the Caribbean basin.

For Shell, the project fits into a broader strategy of expanding its integrated gas portfolio — a segment the company increasingly sees as central to the global energy transition. Natural gas is widely viewed as a bridge fuel that can replace more carbon-intensive sources such as coal while renewable energy capacity continues to scale up.

But the project has faced repeated delays, largely because of shifting U.S. policy toward Venezuela. Washington’s sanctions against the government of Nicolás Maduro have complicated investment decisions for international oil companies, forcing them to rely on special licenses from the U.S. Treasury to operate in the country.

Earlier this year, however, Venezuela’s legislature approved sweeping reforms to its oil sector designed to attract foreign investment back into the country. The new framework lowers taxes on energy projects, expands the decision-making authority of the oil ministry, and gives private companies greater operational autonomy — a departure from earlier policies that placed strict limits on foreign control.

Caracas hopes the reforms will help revive an industry that once formed the backbone of the national economy. Venezuela holds the world’s largest proven crude oil reserves, but years of sanctions, economic crisis, and underinvestment have sharply reduced production and left much of its energy infrastructure in need of repair.

Officials in the country say the new agreements with Shell demonstrate that global energy companies are beginning to regain confidence in Venezuela’s energy sector. A statement posted by the military-linked television network TV FANB described the deals as evidence that Venezuela remains “a safe and reliable destination for foreign investment.”

Still, the risks have not gone away.

Large-scale offshore developments require billions of dollars in long-term investment, and energy companies remain wary of political uncertainty in Venezuela as well as the possibility that U.S. sanctions could tighten again.

The success of the Dragon project will also depend on continued cooperation between Venezuela and Trinidad and Tobago, whose LNG facilities would process the gas before it is exported to international buyers.

If completed, the project could restore part of the Caribbean’s role in global gas markets while offering Venezuela a new source of revenue and Trinidad a lifeline for its LNG sector.

4 Most Popular Cryptos Right Now: BlockDAG, SUI, AVAX, & Stellar Set to Lead 2026’s Bull Run!

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The digital currency market in March 2026 is at a very important point. After many months where smaller coins felt a lot of pressure, the signs of fear and greed show that many people are feeling very afraid. However, the data from the blockchains shows something else. Large buyers are quietly filling their wallets. Big company plans are moving forward. The space between the actual value of a project and the price of its coin has rarely been this large.

For those who know where to look, this tight spot is not a bad sign. It is the setup that creates some of the best entry points in years. The coins with the most power are the ones building real tools while prices stay low. These are the most popular cryptos right now that are ready to move first when the market mood changes.

1. BlockDAG: Trading is Now Active on Global Exchanges

Public trading has officially started as of March 5, 2026, and the project is now live on Coinstore, BitMart, and LBank. People can also use the direct swap tool on the BlockDAG (BDAG) website, and more big platforms are getting ready to join soon. The way money is already moving into it tells you everything you need to know about why it is one of the most popular cryptos right now.

While regular traders wait in lines to put money into the three main platforms, large crypto buyers are using the direct swap tool to get coins fast. This way of joining means no limits on how much you can buy and no waiting in line. The number of coins in the market is being bought up from two sides at the same time: regular buyers on the three exchanges and giant orders through the direct swap.

Experts who watch the market have set a $0.20 price goal for the near future, with a $0.40 to $0.50 goal tied to the guess that the project will be worth $1.2 billion. This would mean a spot in the top 50. The big companies and large buyers joining now are not just guessing. They are trying to get in before the price is fixed by the market. Reports show that trading volume is already expected to be larger than what was seen in the early days of Solana. With a system ready for 100x or even more growth, this is a major moment for anyone looking at the most popular cryptos right now.

2. SUI: Supply Pressure and Low Activity Affect the Short Term

Sui is currently selling near $0.91, and its technical signs show it is in a neutral spot but leaning toward being sold too much. The long-term average price of $2.14 shows how far the price has fallen from its highest point. The amount of money locked in the Sui system has also dropped by about 78% from its best level of $2.57 billion down to about $573 million today. This makes it a name people watch closely among the most popular cryptos right now.

A set release of 64 million SUI coins, worth about $128 million, happened on March 4, adding more coins to a market that already felt weak. The network is trying to build its finance area with a new stablecoin and a gaming tool coming in late 2026, but these things have not changed the price yet. New fund applications are being looked at by the government, which could help in the future. For now, SUI needs to move past the $0.97 price to start going higher. If it does not, the risk of it falling to $0.85 is still very real.

3. AVAX: Big Business Moves in Japan but Price Stays Low

Avalanche is currently priced at about $9 after losing 27% of its value in one month. The coin faces a hard spot to move past at $9.67, and its long-term average has been falling since the end of January, showing a clear downward trend. Even so, many still consider it among the most popular cryptos right now because of its strong business news.

The basic story for the project has actually become much better. The biggest asset platform in Japan is moving over $2 billion in real estate and bonds to its own Avalanche blockchain, with the move finishing by June 2026. This is real money from big companies moving into the Avalanche world. A new reward program also started on March 2, giving out $40 million to projects that destroy AVAX coins, which helps lower the total supply. Data shows a large buyer picked up $474K of AVAX at the $8.989 level on February 28. Smart money is building a spot, but the question is if the Japanese news is enough to fix the slow market and move the price up.

4. Stellar (XLM): New Trading Tools

Stellar is selling for about $0.15 to $0.16 right now, staying in its usual area after losing 17.68% in a month. The coin has shown it is a bit stronger than other coins in the last seven days, with some people buying it while the market is quiet. This makes it stay on the list of most popular cryptos right now for many.

On the business side, the CME Group started new trading tools for XLM on February 9, 2026, which puts Stellar in the group of assets that professional money managers use. The network also saw the start of a new money fund in Malaysia and continues to work with big payment names.

The problem is that some studies have called it a “zombie” project because it has a lot of coins in its bank but not much activity from regular apps. A $10 million theft in February also made people worry about safety. For XLM to move up, it needs to get past the $0.20 price, which is the main goal to watch.

To Sum Up!

The digital currency market in March 2026 has plenty of chances; what it lacks is people who are willing to wait. BlockDAG at the current market price offers a very fast and time-limited entry, with big money already moving through its direct swap while others wait. SUI is watching new coins enter the market at $0.91 while its main news is still months away. AVAX has the big Japan move as a real driver, but needs to get past its price hurdles. Stellar stays at its $0.15 floor with new trading tools, but questions about its real use still exist.

Each of these choices has a real path to go up, but the way things are set up favors BDAG as the best chance in the current market.