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Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program

Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program
SpaceX headquarters is shown in Hawthorne, California, on June 5, 2025. (REUTERS)
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Updated 06 June 2025

Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program

Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program
  • Trump threatens to cancel Musk companies’ contracts amid tax cut bill dispute
  • Musk says SpaceX will decommission spacecraft used by NASA

WASHINGTON: About $22 billion worth of SpaceX’s government contracts is at risk and multiple US space programs could face dramatic changes in the fallout of Elon Musk and President Donald Trump’s explosive feud on Thursday.
The disagreement, rooted in Musk’s criticism of Trump’s tax-cut and spending legislation that began last week, quickly spiraled out of control. Trump lashed out at Musk when the president spoke in the Oval Office. Then in a series of X posts, Musk launched barbs at Trump, who threatened to terminate government contracts with Musk’s companies.
Taking the threat seriously, Musk said he would begin “decommissioning” SpaceX’s Dragon spacecraft used by NASA. Under a roughly $5 billion contract, the craft has been the agency’s only US vessel capable of carrying astronauts to and from the International Space Station, making Musk’s company a critical element of the US space program.




In this photo illustration, social media posts by US President Donald Trump and Elon Musk are displayed on a smartphone on June 05, 2025. (Getty Images via AFP)

The feud raised questions about how far Trump, an often unpredictable force who has intervened in past procurement efforts, would go to punish Musk, who until last week headed Trump’s initiative to downsize the federal government.
If the president prioritized political retaliation and canceled billions of dollars worth of SpaceX contracts with NASA and the Pentagon, it could slow US space progress.
NASA press secretary Bethany Stevens declined to comment on SpaceX, but said: “We will continue to work with our industry partners to ensure the president’s objectives in space are met.”
Musk and Trump’s tussle ruptured an unprecedented relationship between a US president and industry titan that had yielded some key favors for SpaceX: a proposed overhaul of NASA’s moon program into a Mars program, a planned effort to build a gigantic missile defense shield in space, and the naming of an Air Force leader who favored SpaceX in a contract award.
Taking Dragon out of service would likely disrupt the ISS program, which involves dozens of countries under a two-decade-old international agreement. But it was unclear how quickly such a decommissioning would occur. NASA uses Russia’s Soyuz spacecraft as a secondary ride for its astronauts to the ISS.

SpaceX’s rise
SpaceX rose to dominance long before Musk’s foray into Republican politics last year, building formidable market share in the rocket launch and satellite communications industries that could shield it somewhat from Musk’s split with Trump, analysts said.
“It fortunately wouldn’t be catastrophic, since SpaceX has developed itself into a global powerhouse that dominates most of the space industry, but there’s no question that it would result in significant lost revenue and missed contract opportunities,” said Justus Parmar, CEO of SpaceX investor Fortuna Investments.
Under Trump in recent months, the US space industry and NASA’s workforce of 18,000 have been whipsawed by looming layoffs and proposed budget cuts that would cancel dozens of science programs, while the US space agency remains without a confirmed administrator.
Trump’s nominee for NASA administrator, Musk ally and billionaire private astronaut Jared Isaacman, appeared to be an early casualty of Musk’s rift with the president when the White House abruptly removed him from consideration over the weekend, denying Musk his pick to lead the space agency.

Trump on Thursday explained dumping Isaacman by saying he was “totally Democrat.”
Musk’s quest to send humans to Mars has been a critical element of Trump’s space agenda. The effort has threatened to take resources away from NASA’s flagship effort to send humans back to the moon.
Trump’s budget plan sought to cancel Artemis moon missions beyond its third mission, effectively ending the over-budget Space Launch System rocket used for those missions.
But the Senate Commerce Committee version of Trump’s bill released late on Thursday would restore funding for missions four and five, providing at least $1 billion annually for SLS through 2029.
Since SpaceX’s rockets are a less expensive alternative to SLS, whether the Trump administration opposes the Senate’s changes in the coming weeks will give an indication of Musk’s remaining political power.
SpaceX, founded in 2002, has won $15 billion worth of contracts from NASA for the company’s Falcon 9 rockets and development of SpaceX’s Starship, a multipurpose rocket system tapped to land NASA astronauts on the moon this decade.
The company has also won billions of dollars to launch a majority of the Pentagon’s national security satellites into space while it builds a massive spy satellite constellation in orbit for a US intelligence agency.
In addition to not being in US interests, former NASA Deputy Administrator Lori Garver said canceling SpaceX’s contracts would probably not be legal.
But she also added, “A rogue CEO threatening to decommission spacecraft, putting astronauts lives at risk, is untenable.”


Iran executes man accused of spying for Israel and another for planning IS group sabotage

Iran executes man accused of spying for Israel and another for planning IS group sabotage
Updated 2 min 26 sec ago

Iran executes man accused of spying for Israel and another for planning IS group sabotage

Iran executes man accused of spying for Israel and another for planning IS group sabotage
  • Iran has executed two men in separate cases, accusing one of spying for Israel and another of being a member of the Daesh group. State media says the two men were hanged Wednesday

DUBAI, United Arab Emirates: Iran executed two men in separate cases Wednesday, accusing one of spying for Israel and another of being a member of the Daesh group, state media reported.
A report by the judiciary news website Mizanonline identified the alleged spy as Rouzbeh Vadi, who was accused of relaying classified information to Israel’s intelligence service, the Mossad.
Authorities said Vadi provided information about an Iranian nuclear scientist who was killed during Israel’s June airstrikes on Iran, according to the report, which did not identifying the scientist or the time and place of Vadi’s arrest.
Vadi met the Mossad officers five times in Vienna, Austria, the report said.
Israel’s ambassador to France, Joshua Zarka, said in June that Israel’s 12-day war on Iran included targeted strikes that killed at least 14 physicists and engineers involved with Iran’s nuclear program.
Iran has hanged seven people for espionage during the conflict with Israel, sparking fears from activists that the government could conduct a wave of executions.
Iran separately hanged a member of Daesh group on Wednesday after he was convicted of plotting sabotage, Mizanonline reported.
Officials accused Mehdi Asgharzadeh of being a member of the Daesh group who participated in military training in Syria and Iraq before illegally entering Iran with a four-member team who were killed in a fight with Iranian security, the news site reported.
Authorities said Iran’s Supreme Court upheld the sentences of lower courts and followed full legal procedures before executing both men, Mizanonline reported.


End of era as Beirut renames Assad avenue after late music legend

End of era as Beirut renames Assad avenue after late music legend
Updated 2 min 50 sec ago

End of era as Beirut renames Assad avenue after late music legend

End of era as Beirut renames Assad avenue after late music legend
  • Lebanon has decided to rebaptise a thoroughfare named after former Syrian president Hafez Assad in favor of late Lebanese musician and playwright Ziad Rahbani

BEIRUT: Lebanon has decided to rebaptise a thoroughfare named after former Syrian president Hafez Assad in favor of late Lebanese musician and playwright Ziad Rahbani, a move many welcomed on Wednesday.
The decision marks the end of an era and a rupture with the authoritarian rule of former Syrian leaders Hafez Assad and his son Bashar — close allies of Lebanon’s Hezbollah militant group — who from Damascus held Lebanon in a stranglehold for almost three decades.
Islamist forces ousted Bashar Assad in December, ending five decades of one-family rule, further weakening Hezbollah after a war with Israel and helping to change the balance of power in Lebanon.
“Hafez Assad into the dustbin of history, Ziad Rahbani is the name of the airport road forever!” independent lawmaker Mark Daou who opposes Hezbollah wrote on X.
The government on Tuesday announced the renaming of the avenue, which runs to the international airport through south Beirut, where Hezbollah enjoys strong support.
Lebanese actor Ziad Itani welcomed the move, telling AFP that the former Syrian leader was associated with “dark periods in Lebanese history, marked by massacres, abuses and assassinations.”
The Syrian army entered Lebanon in 1976 as part of an Arab force that was supposed to put an end to the country’s civil war which began a year earlier.
Troops only withdrew in 2005 under enormous pressure after the assassination of Lebanese ex-prime minister Rafic Hariri, which was widely blamed on Syria and Hezbollah.
The Lebanese army dismantled a number of monuments paying homage to the Assad family following the pullout.
The government announced the street’s name change as it said it had tasked the army with developing a plan to disarm Hezbollah by the end of the year, an unprecedented step since civil war factions gave up their weapons decades ago.
The road’s renaming “is the decision that made me the happiest,” said Hassan Roumani near the avenue.
“Each time I passed along the Assad road, I felt like Hafez Assad and the Syrian army were still in Lebanon. Now psychologically I feel relieved — that period is over, and for the best,” he told AFP.
Not all welcomed the renaming however, particularly Hezbollah supporters.
Faysal Abdelsater, an analyst close to the Iran-backed group, said the move was “the result of political malice” and urged the local council to reject it.
Rahbani, son of iconic singer Fairuz, died last month aged 69 after a decades-long career that revolutionized the country’s artistic scene.


Saudi POS transactions rise 31.5% to $4.16bn

Saudi POS transactions rise 31.5% to $4.16bn
Updated 1 min 2 sec ago

Saudi POS transactions rise 31.5% to $4.16bn

Saudi POS transactions rise 31.5% to $4.16bn
  • Food and beverage category remained the largest in value at SR2.34 billion
  • Spending at restaurants and cafes increased by 22.8% to SR1.90 billion

RIYADH: Point of sale transactions in ֱ reached SR15.6 billion ($4.16 billion) in the week ending Aug. 2, representing a 31.5 percent weekly rise, driven by increased spending across all sectors. 

According to the latest data released by the Saudi Central Bank, also known as SAMA, the number of transactions also witnessed a weekly increase of 18.2 percent to reach 244.03 million. 

The sustained spending momentum highlights consumer confidence and the ongoing digital transformation of payments, driven by initiatives under the Kingdom’s Vision 2030 strategy.

The food and beverage category remained the largest in value at SR2.34 billion, marking a significant 38.2 percent increase compared to the previous seven days.

Spending at restaurants and cafes also increased by 22.8 percent to SR1.90 billion. 

POS activity in the transportation sector saw a rise of 28.2 percent to reach SR1.21 billion, while spending on professional and business services grew by 28.6 percent to SR1.19 billion. 

The Saudi Central Bank data further revealed that spending on apparel, clothing, and accessories rose by 49.4 percent to reach SR1.11 billion. 

POS transactions in the Kingdom’s gas stations amounted to SR1.09 billion, followed by spending in the health care sector at SR1.02 billion. 

The increase marks a key milestone in the nation’s shift toward a cashless economy, aligning with one of the core objectives of the Financial Sector Development Program under Vision 2030.

In April, SAMA said the total number of non-cash retail transactions reached 12.6 billion in 2024, up from 10.8 billion in 2023, reflecting the continued growth and adoption of electronic payment systems across the country.

In its latest report, SAMA said that ֱ’s capital city, Riyadh, dominated POS transactions, with a value amounting to SR5.08 billion, representing an increase of 17.3 percent. 

Jeddah followed with a 24.2 percent rise, reaching SR2.11 billion, while Dammam came third with transactions amounting to SR698 million. 

POS spending in Makkah rose 28.9 percent to reach SR646.01 million.
 
Transactions in Madinah amounted to SR632.36 million, marking a rise of 33.9 percent compared to the previous week. 

In Al-Khobar, POS transactions totaled SR399.83 million, followed by Buraidah at SR365.99 million, and Abha at SR301.68 million. 


Italy ministers accused over release of Libyan official

Italy ministers accused over release of Libyan official
Updated 22 min 25 sec ago

Italy ministers accused over release of Libyan official

Italy ministers accused over release of Libyan official
  • Najim, head of Libya’s judicial police, was arrested in the northern Italian city of Turin on January 19 on an ICC warrant, only to be released by Rome’s Court of Appeal two days later and immediately flown to Tripoli on an Italian air force plane

ROME: Judges have requested permission from Italy’s parliament to bring proceedings against two government ministers over the release of a Libyan wanted by the International Criminal Court (ICC), reports said Wednesday.
Justice Minister Carlo Nordio is accused of failing to perform his official duties and also, alongside Interior Minister Matteo Piantedosi, of aiding and abetting Osama Almasri Najim’s return to Libya.
Najim, head of Libya’s judicial police, was arrested in the northern Italian city of Turin on January 19 on an ICC warrant, only to be released by Rome’s Court of Appeal two days later and immediately flown to Tripoli on an Italian air force plane.
He is accused of charges including murder, rape and torture relating to his management of Tripoli’s Mitiga detention center, and his release sparked a major political row in Italy.
Allegations that Meloni and her ministers acted improperly have been under consideration by a special court that deals with ministerial cases.
Meloni revealed on Monday she had been cleared of any wrongdoing.
But the court has now requested permission from parliament’s Chamber of Deputies to bring a case against her ministers — although this will almost certainly be denied, as Meloni’s coalition government has a majority.
According to Italian news agencies, Nordio is accused of failing to comply with ICC requests over the arrest of Najim, and effectively standing by when he could have intervened to keep the Libyan in prison.
Piantedosi and under-secretary Alfredo Mantovano, who is responsible for the intelligence service, are both also accused of aiding and abetting Najim’s release, and also of complicit embezzlement.
Piantedosi ordered the Libyan’s expulsion from Italy and Mantovano ordered the use of a state plane to send him home, despite, like Nordio, being fully aware of the requests for cooperation from the ICC, according to the court.
Meloni on Monday said the judges had cleared her, making what she called the “absurd” conclusion that she was not informed about the decisions on Najim.
She defended the government’s actions, saying they were entirely focused on “protecting the safety of Italians.”
Nordio has previously said the ICC warrant was badly drafted, while Piantedosi claimed that once Najim had been released from prison he was too dangerous to remain in Italy.
Piantedosi also denied allegations by some opposition politicians that the suspect was sent home to avoid jeopardizing relations with Libya.


Pakistan partners with DP World to open zero-cost export mart in Dubai

Pakistan partners with DP World to open zero-cost export mart in Dubai
Updated 40 min 35 sec ago

Pakistan partners with DP World to open zero-cost export mart in Dubai

Pakistan partners with DP World to open zero-cost export mart in Dubai
  • Pakistan Mart will be established at Jebel Ali with comprehensive backing from DP World
  • Jam Kamal says exporters will not be charged taxes at the facility until products are sold

ISLAMABAD: The government will establish Pakistan Mart, a commercial hub near Jebel Ali in the United Arab Emirates, to showcase made in Pakistan products to global buyers, the commerce ministry said on Wednesday, adding that DP World will build the facility at no construction cost to Pakistani stakeholders.

The development comes as Pakistan pushes for export-led growth after stabilizing its crisis-hit economy with assistance from the International Monetary Fund and financial support from friendly nations. The Gulf region, particularly the UAE, offers critical advantages such as proximity, low freight costs and established Pakistani trade networks, making it a natural launchpad for this initiative.

Pakistan Mart is expected to significantly support the exporters of the South Asian state by improving visibility, reducing logistical barriers and allowing direct market access in the region. The mart will also facilitate digital trade and is aimed at helping sectors like textiles, garments, surgical instruments, food, perishables and nutraceuticals.

“When this facility will be established, more than 500 Pakistani retailers, shopkeepers and those who are going to use the warehousing facility will get a window, a platform,” Commerce Minister Jam Kamal Khan said.

“They will showcase their products for Dubai market, UAE market and Gulf market. They will be able to export their products in other regions as well.”

“The good thing about this project is that unless you sell the product, there will be no tax or fees imposed on you,” he continued, adding “there is a minimum rental for it.”

According to the statement issued by the ministry, the project was presented to the commerce minister by a delegation comprising officials from Pakistan’s National Logistics Cell (NLC) and DP World, led by NLC’s director general.

Kamal described the project as “transformational” for Pakistani trade and directed all relevant agencies, including the Trade Development Authority of Pakistan (TDAP), to urgently coordinate with stakeholders and facilitate export-ready enterprises for tenancy at the new facility.

The delegation urged the ministry to take a lead role in tenant selection, awareness campaigns and ensuring that exporters are equipped to capitalize on the opportunity.

Pakistan Mart is expected to become a strategic platform for export diversification and economic diplomacy, reinforcing Pakistan’s presence in key international markets.

It is also expected to attract more Africans buyers to the Pakistani products.