What's behind the Iran-Pakistan flare-up?

Tensions are rooted in the restive borderlands.

View in Browser Sign up for Reuters newsletters Daily Briefing Red Sea shipping attacks pressure China's exporters, Britain flirts with recession, and two North Korean teenagers get hard labor for watching K-pop.   As the World Economic Forum draws to a close, Global Breaking News Editor Leela de Kretser tells the Reuters World News daily podcast what we've learned from this year's Alpine gathering of the global elite.   By Linda Noakes Today's Top News A man watches a news channel in Peshawar, Pakistan. REUTERS/Fayaz Azi MIDDLE EAST The US launched new strikes against Houthi anti-ship missiles aimed at the Red Sea, as growing tensions in the region's sea lanes disrupted global trade and raised fears of supply bottlenecks that could reignite inflation. The rupture of one of the world's busiest shipping routes has exposed the vulnerability of China's export-reliant economy to supply snarls and external demand shocks. The Iranian strike on Pakistan this week that drew a rapid military riposte and raised fears of greater regional turmoil was driven by Iran's efforts to reinforce its internal security rather than its ambitions for the Middle East. Here's what you need to know about Iran, its proxies and widening violence in the region. IN OTHER NEWS The US House of Representatives approved a stopgap bill to fund the federal government through early March and avert a partial government shutdown.  Donald Trump can remain on Washington state's Republican presidential primary ballot, a judge ruled, rejecting the latest effort to disqualify the former president from running again based on his efforts to reverse his 2020 election loss. Hundreds of supporters of a jailed rights activist staged a protest in the capital of Russia's Bashkortostan republic and police detained at least seven people, a Russian news outlet reported from the scene. Haiti's capital Port-au-Prince was on lockdown, as flaming barricades across several neighborhoods forced residents to shelter in place or return home in the latest flare-ups in chronic gang violence plaguing the Caribbean country. Video footage released by an organization that works with North Korean defectors shows North Korean authorities publicly sentencing two teenagers to 12 years' hard labor for watching K-pop. Business & Markets British retailers suffered the biggest drop in sales for almost three years during December, raising the risk that the economy entered recession late last year, official data showed.  Taiwanese chipmaker TSMC's Taipei-listed shares soared after the company gave a bullish outlook on the back of the boom in artificial intelligence, delivering a massive shot in the arm for stocks at home and abroad. Several US banks reported a plunge in fourth-quarter profits, hurt by a drop in interest income and charges tied to replenishing a deposit insurance fund. In the face of intense pressure from authorities to help revive a sickly stock market, Chinese fund management companies are increasingly launching equity funds that are bankrolled mostly by the firm's own money. Binance is due to square off against the US Securities and Exchange Commission in a Washington courtroom today, marking the second high-profile hearing this week involving the regulator and a top crypto exchange. The Week Ahead Big central banks are kicking off their first meetings of 2024 with the Bank of Japan and European Central Bank gathering in coming days, while in emerging markets Turkey takes center stage. Earnings season and a snapshot of how business activity is holding up in January are also due. Here's a look at the week ahead in world markets. Donald Trump and his allies are going all out to deal Republican rival Nikki Haley a back-breaking blow in next week's New Hampshire primary, courting her donors and bashing her in TV ads. The private jet parking lots at airports near the Indian city of Ayodhya are full as wealthy devotees prepare for Monday's invite-only opening ceremony of one of Hinduism's holiest temples. The World in Pictures See a slideshow of some of our top photos from around the world this week. Sponsors are not involved in the creation of newsletters or other Reuters news content. Advertise in this newsletter or on Reuters.com Reuters Daily Briefing is sent 5 days a week. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.   Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here. Reuters Terms & Conditions and Privacy Statement © 2024 Thomson Reuters. All rights reserved. 3 Times Square, New York, NY 10036