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One in 3 household firms earns Sh5,000 a month

More than one in three household businesses in Kenya generate monthly revenue of Sh5,000 or less, highlighting the limited sales many small traders make before restocking and paying for transport, rent and other operating costs.

A fresh survey by the Kenya National Bureau of Statistics (KNBS) shows that 34 percent of household enterprises fell into this lowest revenue bracket, making it the most common category among businesses covered by the study.

The survey defines household enterprises as ‘activities operated by household members to generate income’ through the production of goods and provision of services.

These businesses are widespread, with one in five households operating an income-generating enterprise in the month before the survey.

The proportion of households operating enterprises was higher in urban areas at 25 percent than in rural areas at 15 percent.

‘Nationally, the largest percentage of household enterprises (34 percent) reported an average monthly revenue of Sh5,000 or less,’ KNBS wrote in the 2025-26 Kenya Mini Demographic and Health Survey (KMDHS) report released on Tuesday.

That translates to about Sh167 a day in sales if spread across a 30-day month, before expenses such as transport and electricity, leaving owners with potentially much less to support their families.

The survey was designed to provide nationally representative data and draw a picture of household living conditions across Kenya. KNBS says it ran fieldwork between November 5, 2025 and February 10, 2026.

The report says the sample was designed to cover 30,000 households drawn from the Kenya Household Master Sample Frame.

The State-run statistician selected 29,875 households but successfully interviewed 26,380, representing a response rate of 96 percent.

The findings exposed the gap between running a business and generating enough money to improve the living standards of households, particularly in rural areas where family-run enterprises are more likely to report low revenue.

In rural Kenya, 43.1 percent of household enterprises reported monthly revenue below Sh5,000, compared with 27.5 percent of urban businesses, according to the survey.

While 14.6 percent of urban enterprises report monthly revenues of Sh50,000 or more, a marginal six percent of rural businesses reach the same financial threshold.

Nationally, 22 percent of household enterprises reported monthly revenue of between Sh10,000 and Sh19,999, while 21 percent earned between Sh20,000 and Sh49,999.

The report shows that women account for the majority of household enterprise operators in Kenya, running 58.5 percent of these businesses compared to 41.5 percent operated by men.

The findings also point to limited formal registration among these businesses. About 63.3 percent of urban enterprises and 68.9 percent of rural enterprises were not registered with the authorities listed in the survey.

County governments accounted for the largest share of reported registrations or licences, covering 31.8 percent of urban enterprises and 28.2 percent of rural businesses. Registration with the Business Registration Service stood at 9.3 percent of businesses in urban areas and 3.7 percent in rural settings.

The survey does not establish that low revenue causes businesses to remain unregistered, or that formal registration would automatically increase sales. However, the figures highlight the scale of household economic activity operating with limited revenue and outside the registration systems covered by the study.

For households relying on these enterprises, the distinction between sales and earnings is critical, as revenue represents the money a business brings in, while profit is what remains after operating expenses are paid.

The report does not give a breakdown of the costs these businesses incurred or the profits retained by their owners. Its findings nevertheless raise questions about how much household enterprises contribute to family budgets after the cost of running them is met.

AI, data centers crowding out climate fix for funding

AS the Philippines, a rice-dependent economy, braces for the impact of ‘Godzilla’ El Niño, it should prioritize pouring investments into climate change adaptation rather than pooling funds and resources for Artificial Intelligence (AI), according to the central bank governor.

In his speech at the 2026 Green Swan Conference, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. pointed out that climate risk is no longer just a ‘scenario’ in a model.

‘It’s now a reality we live with,’ Remolona asserted. He explained that what begins as a climate event can ‘quickly’ become an inflation problem, a financial stability concern, and a threat to sustained growth.

As such, he pointed out the need to put in place ‘resilient infrastructure, insurance that absorbs losses, and financing that supports adaptation.’

In the Philippines, the BSP governor said the past two months alone saw ‘unusual successive’ tropical cyclones.

‘The southwest monsoon caused massive damage to our farms and roads,’ Remolona said.

‘And we are now preparing for the opposite shock: what we call the ‘Godzilla’ El Niño with the risk of severe drought,’ he also noted.

With this, the central bank chief said: ‘Our task goes beyond measuring exposures. We need to prepare for the worst.’

Crowded out by AI

‘Sadly, at the very time when we need to make massive investments in adaptation, such investments are being crowded out by investments in AI [artificial intelligence] and investments in data centers,’ Remolona emphasized.

Remolona recently admitted that El Niño is the biggest inflation risk that the Philippine economy faces at the moment.

‘The scenario that we care about the most is El Niño. There’s a regular El Niño, a kind of benign El Niño which is bad news. But there’s a bad El Niño which is really, really bad news,’ Remolona said at a recent forum.

House bill boosts creative sector

THE booming creative sector-which employed a staggering 8.71 million Filipinos and generated P2.12 trillion, or 7.8 percent of the country’s gross domestic product last year-is poised to become an even stronger engine of national economic growth through a major overhaul of arts education in secondary schools, a lawmaker declared on Tuesday.

Parañaque Rep. Brian Yamsuan highlighted that the country’s creative industries hold immense potential for global expansion. Digital platforms, in particular, allow local creative businesses to tap into international markets with minimal overhead costs while generating vital employment and export revenues for the nation.

To unlock this potential, Yamsuan filed House Bill 7864, a measure designed to strengthen and modernize the Department of Education’s (DepEd) Special Program for the Creative Arts (SPCA). The bill introduces an expanded curriculum covering architecture and allied arts, cinema, design, digital fabrication, and new media. These cutting-edge disciplines will complement existing core subjects in creative writing, visual arts, media arts, music, dance, and theater arts.

‘We have many highly skilled animators, designers, filmmakers, musicians, and others in the creative industries. Certainly, there are also many talented young Filipinos who are aspiring to be part of our creative sector,’ Yamsuan noted.

‘Strengthening arts education in our secondary schools will harness their potential and help us build a sustainable pipeline of skilled and industry-ready creatives who can compete globally while telling distinctly Filipino stories,’ he added.

Yamsuan emphasized that cultivating world-class Filipino artists and creative workers is central to supporting the country’s ambitious goal of becoming Asia’s premier creative hub by 2030. Highlighting the sector’s current economic footprint, he noted that creative industries employed 8.71 million Filipinos last year, generated P2.12 trillion (7.8 percent of GDP at constant prices), and drove exports of creative goods and services to P747 billion in 2025.

‘We can turn this sunrise industry into a major economic growth driver. But we must start by developing our future creative workers into a workforce that can stand shoulder to shoulder with the best in the world,’ Yamsuan stressed.

Beyond updating classroom subjects, HB 7864 embeds practical business tools directly into the SPCA curriculum by integrating financial literacy, entrepreneurship, and basic intellectual property rights education.

To ensure the educational program stays ahead of rapidly changing industry trends, the bill establishes a dedicated SPCA Council under DepEd’s administrative supervision. The proposed seven-member council will be chaired by the Education Secretary and feature key representatives from the National Commission for Culture and the Arts, the Department of Trade and Industry, the Cultural Center of the Philippines, the Commission on Higher Education, the Philippine Creative Industries Development Council, and the Creative Economy Council of the Philippines.

This council will bridge the gap between academia and commerce by connecting schools directly with industry players through mentorships, work immersions, scholarships, and employment pathways.

In addition, HB 7864 authorizes the hiring of special instructors and industry experts, encourages active private-sector training partnerships, and provides crucial financial incentives-including tax exemptions for donations and grants given to the program, as well as tax breaks on imported creative-industry equipment and materials that are unavailable from local manufacturers.

’Food, energy-related items to drive inflation’

FOOD and some energy-related items could drive inflation above 8 percent as inflation is expected to peak ‘a few more months,’ according to top Bangko Sentral ng Pilipinas’ (BSP) top officials.

Asked, in an interview with reporters on Tuesday, when he thinks the rise in the prices of goods and services could post the fastest rate or could reach its peak, BSP Governor Eli M. Remolona Jr. said: ‘A few more months, we think it will peak.’

In a separate interview at the same event, BSP Deputy Governor Zeno Ronald R. Abenoja responded: ‘We are looking at it very closely. There may be some months where we can see inflation continue to be elevated.’

Basing on actual data alone, with inflation averaging at 5.4 percent in the first nine months of 2026 and with the BSP seeing average inflation hitting 6.1 percent this year, Abenoja said: ‘Which means, there will still be a few months where we can see elevated inflation.’

Asked if by elevated inflation he meant the rate could move beyond the 8-percent level, Abenoja said: ‘There’s a chance. We’re looking at those possibilities.’

Abenoja said inflation in the coming months could be driven by ‘similar to what we have seen in the past few months,’ such as ‘food and some energy-related items.’

Bank economists’ projections

Based on recent inflation commentaries, some bank economists expect inflation to breach the 8-percent level in the coming months.

ANZ Research, the research division of Australia-based ANZ Banking Group Limited, sees October inflation for the Philippines surging to 8.4 percent.

It also expects inflation to remain above the 8-percent level in the last quarter of 2026 due to higher rice and oil prices.

‘Inflation is expected to have accelerated for the second straight month in October in the Philippines, reaching 8.4 percent year-on-year. Crude oil prices had risen to six-month highs by the end of October, which will maintain domestic fuel prices at elevated levels,’ the research division of the Australia-based bank noted.

Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri Jr. said: ‘We have yet to see the peak in inflation this year.’

‘We expect it to come in November, when inflation could exceed 8 percent if current price pressures persist. Unlike the fuel-driven spike in April, the current upswing rests on stickier drivers,’ added Neri.

Explaining how price pressures could broaden further, he said fare and wage increases rarely reverse, and higher labor costs could feed into broader price-setting through second-round effects, a risk which he said is already ‘visible’ in core inflation, which climbed to a three-year high in September.

‘Additional upside risks include further Peso weakness, Meralco’s higher distribution charges under the newly approved rate reset, the potential impact of a Super El Niño on food and power supply, and volatile oil prices amid Middle East tensions,’ added Neri.

DILG escalates battle vs child malnutrition

IN a bid to rescue millions of young Filipinos from the lingering grips of child hunger and stunting, the Department of the Interior and Local Government (DILG) is placing local governments (LGUs) at the frontlines of a nationwide battle for child nutrition.

A new directive issued through Memorandum Circular 2026-053 by the DILG ordered provincial governors, city and municipal mayors, barangay captains (punong barangay), and local nutrition action officers to immediately step up their local feeding initiatives so that no child is robbed of proper nourishment during their crucial early development years.

The directive directly operationalizes Republic Act 11037, or the Masustansiyang Pagkain Para sa Batang Pilipino Act, a cornerstone law designed to eradicate malnutrition among Filipino children through sustained, community-level dietary interventions.

At the core of this effort is the Supplementary Feeding Program (SFP), led by the Department of Social Welfare and Development (DSWD) in close partnership with LGUs. The program targets vulnerable toddlers and children aged 2 to 5 years old enrolled in LGU-run Child Development Centers (CDCs).

Under the expanded guidelines, enrolled children will receive free, highly nutritious hot meals alongside fresh milk or milk-based food products for over two months. Beyond filling empty stomachs, the initiative is intentionally structured to boost local economies by creating direct opportunities for local farmers and dairy producers to supply the food and milk used in the program.

However, local officials are being instructed to look beyond the dining table. The DILG emphasized that the feeding initiative must serve as a gateway to comprehensive healthcare. Local health offices are mandated to conduct regular nutritional assessments and ensure every child receives critical health intervention – including full medical examinations, deworming, routine vaccinations, and essential micronutrient supplementation. These parallel health checks will allow LGUs to meticulously track each child’s growth and intervene swiftly if severe malnutrition persists.

To remove bureaucratic roadblocks and accelerate implementation, the DILG ordered LGUs to immediately coordinate with Department of Social Welfare and Development Field Offices to finalize Memoranda of Agreement (MOA). These agreements will fast-track the release of funds and streamline the distribution of daily feeding activities straight to barangay centers.

Crucially, the DILG made it clear that disaster or climate emergencies will no longer be an excuse for interrupted feeding schedules. When typhoons or calamities strike, LGUs are required to maintain continuous food assistance by either delivering hot meals directly to children’s homes or activating emergency community kitchens.

This aggressive anti-hunger drive aligns directly with President Marcos’ overarching mandate to prioritize early childhood nutrition and holistic human development. During recent Senate budget hearings, the DILG further reaffirmed its commitment to accelerate the implementation of Republic Act 12199, or the Early Childhood Care and Development (ECCD) System Act, by integrating standardized, ready-to-eat meals into feeding programs for children five years old and below.

Underscoring that the fight against stunting and chronic hunger cannot be won by national agencies alone, the DILG reiterated that LGUs hold the ultimate key to giving every Filipino child a healthy, strong start in life.

Reps summon Cardoso over unpaid pension arrears, alleged breach of CBN agreements

The House of Representatives has resolved to invite Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), to explain alleged breaches of pension agreements and the non-payment of outstanding retirement benefits to former employees of the apex bank.

The lawmakers also urged the CBN and other relevant authorities to verify and pay all pension arrears lawfully owed to affected retirees within a clearly defined period, while extending applicable general pension increases to all eligible pensioners.

The resolutions followed the adoption of a motion sponsored by Hussaini Jallo, representing Igabi Federal Constituency of Kaduna State, during plenary on Tuesday.

The motion, titled ‘Need to investigate the Central Bank of Nigeria for alleged breach of approved pension agreements, non-implementation of harmonisation policy and exclusion of pensioners from general pension increases,’ raised concerns about the administration of retirement benefits and the alleged failure of the apex bank to honour agreements with its former employees.

Presenting the motion, Jallo said the alleged non-implementation and faulty execution of the harmonisation policy had created disparities in pension benefits and resulted in the accumulation of arrears, leaving some retirees struggling financially.

‘The House is concerned that the alleged non-implementation and faulty execution of the harmonisation policy may have led to disparities in pension benefits and the accumulation of unpaid arrears, ultimately denying rightful entitlements and imposing severe financial hardship on affected pensioners who depend on these funds for their livelihood,’ he said.

The lawmaker also raised concerns over allegations that some retired CBN employees had been excluded from general pension increases because of additional or extra-statutory demands which might not be supported by existing laws, binding agreements or approved pension policies.

He argued that such exclusions, if established, could amount to a denial of benefits due to eligible pensioners under the applicable arrangements.

Jallo disclosed that the number of CBN pensioners had fallen from 5,104 in 2011 to approximately 3,000 currently, representing a decline of more than 2,100 retirees.

He said this translated to an average reduction of about 140 pensioners annually, warning that the situation could worsen as the surviving retirees advanced in age.

The lawmaker cautioned that delays in the payment of retirement benefits could leave elderly and vulnerable pensioners exposed to poverty, ill health and avoidable loss of life.

He said people who had devoted years of service to the country deserved fairness, transparency and prompt payment of their lawful entitlements.

‘The House acknowledges the need for legislative oversight to establish the facts, determine the extent of any breaches or administrative failures, and ensure that all eligible pensioners receive their lawful entitlements,’ Jallo said.

The motion received overwhelming support from lawmakers and was adopted through a voice vote during plenary presided over by Speaker Tajudeen Abbas.

Following its adoption, the House urged the CBN and other relevant authorities to establish the full extent of outstanding pension arrears and pay all verified amounts due to affected retirees within a reasonable and clearly defined timeframe.

It also called for the extension of applicable general pension increases to eligible former employees of the apex bank in accordance with relevant laws.

The House further resolved to invite Cardoso, relevant CBN officials, pension administrators, regulators and representatives of affected pensioners to appear before it, provide explanations and submit documentary evidence.

It mandated its Committee on Pension to investigate the alleged non-compliance with contractual agreements governing the administration and payment of pension benefits to retired CBN employees.

The committee is expected to examine the terms and obligations contained in the agreements, as well as the circumstances surrounding the approval and non-implementation of the harmonisation policy.

It is also to establish the reasons for the delay, determine the amount of outstanding arrears and assess the consequences for affected pensioners.

The committee will further investigate the alleged exclusion of eligible retirees from general pension increases on the basis of extra-statutory demands and determine whether the practice is consistent with applicable laws, contractual obligations and approved pension policies.

As part of its assignment, the committee is to scrutinise relevant pension agreements, policy circulars, payment records and actuarial reports to establish responsibility for any administrative failures or breaches.

It is expected to recommend corrective measures, including the extension of applicable general pension increases to all eligible retirees without discrimination.

The committee is to report back to the House within four weeks for further legislative action.

PhilHealth warns vs fake solicitations

THE Philippine Health Insurance Corporation (PhilHealth) issued a public warning on Tuesday against scammers impersonating its Acting President and Chief Executive Officer, Beverly Lorraine Ho, to solicit money, donations, and sponsorships.

In a formal advisory, the state health insurer urged healthcare providers, partners, and the general public to remain vigilant against fraudulent messages, phone calls, emails, and social media accounts exploiting Ho’s identity.

‘PhilHealth strictly clarifies that neither Dr. Beverly Lorraine Ho nor any official or employee of PhilHealth is authorized to solicit funds, donations, or personal bank transfers from the public or our partners,’ the agency stated, emphasizing that any request for payments or financial aid under its name or that of its officers is an illegal scam.

PhilHealth advised anyone targeted by suspicious communications to refrain from engaging and to report the incidents immediately to the PhilHealth Corporate Action Center, nearest regional office, or local health insurance office.

The agency reiterated that all official transactions and inquiries should be conducted strictly through its regional and local offices. For verified updates, the public is directed to consult only its official communication channels.

Carrefour shuts CBD store four years later

Supermarket chain Carrefour has shut its Comet House outlet in Nairobi’s Central Business District, four years after opening the store seeking to challenge its well-established competitors.

The closure, effective October 31, comes as Kenya’s supermarket industry continues to be reshaped by fierce competition.

In a statement, Majid Al Futtaim, which operates the Carrefour franchise in Kenya, said the decision followed a regular review of its operations.

‘Majid Al Futtaim regularly reviews its operations to ensure they continue to meet the needs of our customers and the business,’ the Kenya management team said.

When Carrefour opened its Comet House branch along Monrovia Street on November 9, 2022, the move marked its return to Nairobi’s CBD after years of concentrating on shopping malls in the city’s suburbs.

According to data by market intelligence firm Sagaci Research, Carrefour controlled 14 percent of the retail market un 2025.

‘As part of this ongoing review, we have made the decision to close our Carrefour store at Comet House in Nairobi.’

The retailer sought to reassure customers that the closure did not signal a retreat from Kenya, where it continues to expand its operations.

‘Carrefour continues to operate 35 stores across Kenya, and we remain committed to serving our customers and supporting our long-term operations in the country,’ the statement added.

The company said it was supporting employees affected by the closure through the transition but did not disclose how many workers would be affected or whether they would be redeployed to other branches.

When Carrefour opened its Comet House branch along Monrovia Street on November 9, 2022, the move marked its return to Nairobi’s CBD after years of concentrating on shopping malls in the city’s suburbs.

The launch was accompanied by promotional offers, including discounts of up to 50 percent on selected products, as the retailer sought to attract shoppers and challenge established competitors operating in the city centre.

The outlet became Carrefour’s 19th store in Kenya at the time and stocked more than 9,000 product lines, including fresh produce, groceries, household goods and personal-care products.

Majid Al Futtaim said the store would serve customers who previously struggled to access Carrefour’s products while working in the CBD.

‘Kenya remains a key market in our expansion strategy, with many opportunities to grow our network across the country through physical stores and e-commerce offering,’ the company said at the time.

Four years later, however, the outlet has shut its doors, with the company yet to explain whether the decision was linked to sales performance, operating costs, competition, lease arrangements or a broader review of its store network.

The closure comes against the backdrop of a retail market increasingly dominated by a handful of large supermarket chains.

Data published by Business Daily on October 19, citing market intelligence firm Sagaci Research, showed that Naivas, Quickmart and Carrefour controlled a combined 60 percent of Kenya’s formal retail market in 2025.

Naivas commanded an estimated 31 percent share, followed by Quickmart at 15 percent and Carrefour at 14 percent.

The three chains have expanded aggressively as they seek to capture customers and retail space left vacant by the collapse of former industry heavyweights.

As Pinoys rapidly use AI, PHL digital economy seen at $42B

THE Philippines’s digital economy is expected to grow 15 percent to $42 billion in gross merchandise value (GMV) this year, from $36 billion in 2025, as Filipinos rapidly adopt artificial intelligence (AI) and shift more of their spending to digital payments.

The figures come from the 11th e-Conomy SEA report by Google, Temasek and Bain and Co, released on Tuesday. The report also projects that the country’s digital economy could reach as much as $157 billion by 2035.

This year’s edition, titled ‘Building the Intelligent Economy,’ found that AI adoption is becoming a growth lever for the local digital economy. The report said the long-term outlook stays optimistic despite geopolitical and macroeconomic headwinds.

It cited policy support behind that outlook, including the launch this year of the National AI Center for Research and Innovation, new National Privacy Commission (NPC) frameworks, and the Internet Transactions Act. It also pointed to changes in how Filipinos behave online.

‘Embracing AI quickly’

The report found that generative AI (GenAI) has reached mass-market scale in the Philippines, with 53 percent of the working population actively using standalone GenAI platforms.

Some 42 million Filipinos now use GenAI and generate 55 billion AI queries a year. The number of monthly AI users rises to around 65 million when embedded AI is included. One in four Filipino AI users interact with AI tools every day.

Trust in the technology is also climbing. One in two users said they trust AI more than they did a year ago, and seven in 10 said they are willing to let AI insights guide their purchase decisions.

For the first time, the report measures AI usage in tokens, which it treats as the AI equivalent of GMV.

‘Filipinos are embracing AI quickly, with 53 percent of the working population already using GenAI. But we are still early in the journey, and there is significant headroom for growth,’ said Bennett Aquino, a partner at Bain and Co. ‘The next chapter is about depth, turning what is occasional use today into everyday workflows that will truly benefit Filipino individuals and businesses.’

Room to deepen engagement

Still, the report said there is a lot of room for Filipinos to use AI more often. Around 33 percent of consumer journeys in the Philippines begin with AI, but users average only about 1.87 AI sessions a week and 13 million consumer tokens per GenAI user.

Most Filipinos prefer to talk to AI in English, which the report linked to the country’s strong English proficiency. Local-language prompts make up 21 percent of conversations.

Filipinos stand out in Southeast Asia for creative and professional uses of AI. Gemini prompts for customer support content in the Philippines are nearly three times the regional average.

Study, work, health, online shopping and entertainment are the top five uses of AI in the country, in that order. Consumer applications account for around 80 percent of AI usage.

‘What is especially exciting is the rapidly growing trust and adoption of AI among Filipinos-with over half of the working population actively using AI tools to streamline work and daily life,’ said Prep Palacios, country manager of Google Philippines.

E-commerce, online travel and online media drove the growth in GMV. E-commerce grew 15 percent year-on-year to $28 billion in 2026.

Online travel grew faster this year, up 14 percent to $3 billion from 9 percent growth the year before. Online media grew 26 percent to $6 billion, compared with 23 percent previously.

Mobility and food delivery grew 2 percent to $4 billion. The segment is projected to reach $7 billion by 2030 and $11 billion by 2035.

Digital payments posted the fastest growth in Southeast Asia, with gross transaction value up 23 percent year-on-year to US$194 billion in 2026.

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The report credited this growth to the expansion of the national digital ID, InstaPay for Business, and the merger of BancNet and the Philippine Clearing House Corp. (PCHC), which is meant to make payment interoperability smoother.

Digital lending grew 17 percent to a loan book balance of $7 billion from $6 billion in 2025, and is projected to reach $31 billion by 2035.

Digital insurance grew 16 percent to $110 million in annual premium equivalent and gross written premiums. That ties the Philippines with Vietnam for the fastest-growing digital insurance sector in the region.

‘The Philippines’s digital economy continues to show remarkable resilience and momentum as it proves its unstoppable growth once again this year,’ Palacios said. ‘As user confidence deepens and local AI use cases expand, strong policy support and collaborative ecosystem development will be key to unlocking the full potential of the Philippine digital economy.’

Aquino said the Philippines is ‘well positioned’ to move from occasional to everyday AI use, with the National AI Center for Research and Innovation rolling out this year and NPC frameworks supporting responsible adoption.

‘Doing so can cement the country’s place among SEA’s fastest-growing AI markets,’ he said.

US hits Iran island amid midterm election pressure on Trump

The United States has launched limited strikes on Iran’s Qeshm Island in the Strait of Hormuz, US officials said, raising fresh questions about the prospects for ending a war that has drawn mounting political pressure on President Donald Trump ahead of the US midterm elections.

The strikes followed an attack by Iran’s Islamic Revolutionary Guard Corps (IRGC) on a US aircraft, according to the officials, who described the operation as a response to the incident. Iran’s state news agency IRNA also reported several explosions on the island on Monday. The US military’s Central Command, which oversees American operations in the Middle East, had been contacted for comment.

The latest action comes as Trump faces declining approval ratings and growing calls from within his Republican Party to bring the conflict to an end. The war began in February after the United States and Israel launched attacks on Iran, triggering a prolonged confrontation with implications for regional security and global energy markets.

Despite the strikes, Trump sought to play down the prospect of an immediate escalation. Speaking to Axios on Monday, he said he was in ‘no rush’ to intensify military operations, arguing that the campaign had already inflicted significant economic damage on Iran.

‘One way or the other, we will do something, but there is no rush. We crippled them financially,’ he said. ‘They have no money, no gasoline and their people are getting very tired of it.’

In a separate interview with Fox News, Trump said the United States might need to target Pickaxe, a site linked to Iran’s nuclear programme, describing such an operation as ‘not a big deal’ that could be completed in ‘one hour’.

His comments came amid speculation that Washington could resume large-scale attacks after the midterm elections, which will determine whether Republicans retain control of Congress or Democrats take over. Trump rejected the suggestion that the administration was deliberately delaying military action until after the vote.

The election has added a domestic political dimension to the conflict, with the president facing scrutiny over the costs and duration of the war. A change in control of Congress could also complicate his ability to sustain support for his military and foreign policy agenda.

Meanwhile, Tehran has signalled that diplomatic efforts remain active despite the renewed military action. Iran’s Foreign Minister, Abbas Araghchi, told IRNA that ‘very intensive’ discussions aimed at ending the war were under way with the United States through intermediaries.

Araghchi said Iran was prepared for both diplomatic and military scenarios ‘more than ever before’, placing responsibility on Washington to choose between what he described as a ‘wise path’ of negotiation and the ‘mistake of military aggression’.

The latest developments expose the uncertainty surrounding the conflict, as limited military exchanges continue alongside indirect negotiations. While Washington has indicated that it is not in a hurry to expand its campaign, its latest strikes suggest that the risk of further confrontation remains, even as both sides explore a possible route towards ending the war.