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Wake-up call

President Joe Biden has made bolstering U.S. infrastructure a top priority. Now his administration is dealing with an unwelcome illustration of just how vulnerable key supply lines can be.

A cyberattack on the nation's biggest fuel pipeline system threatens to disrupt the supply of gasoline, jet fuel and diesel from Atlanta to New York. The target, Colonial Pipeline, halted all operations late Friday and is still working to restore them, while presumably considering how to respond to any demands.

Biden invoked emergency powers in an attempt to keep supplies flowing, and the White House established a task force to tackle disruptions.

Still, fuel suppliers are growing increasingly nervous about the possibility of shortages across the eastern U.S., with the threat of gasoline about $3 a gallon further stoking inflation fears.

A ransomware group called DarkSide, which first surfaced in August 2020, appeared to be behind the attack, Andrew Martin and Alyza Sebenius report. It uses a double extortion method, encrypting a victim's data so that it can't be accessed while threatening to make it public, according to cybersecurity firm Cybereason.

Some evidence has emerged linking DarkSide to Russia or elsewhere in Eastern Europe.

The incident has the potential to influence debate over Biden's $4 trillion economic plan, much of which is focused on infrastructure. The president meets face-to-face this week for the first time with the top two congressional Republicans to try and win backing for his proposals.

The pipeline breach demonstrates the importance of protecting critical infrastructure. The question is whether the attack will serve to unite or further divide Washington over the president's plans. Kathleen Hunter 

Computer code displayed on screens arranged in Danbury, U.K., on Jan. 7

Source: Bloomberg

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Global Headlines

Foregone conclusion | The much-expected win by the Scottish National Party in elections to Scotland's semi-autonomous government will reinforce the push for another vote on breaking away from the rest of the U.K. Nicola Sturgeon, the SNP leader and Scottish first minister, says she has a mandate to force the British government to agree to an independence referendum, but Prime Minister Boris Johnson insists that won't happen any time soon.

  • Opposition Labour Party leader Keir Starmer revamped his senior bench after local elections in England saw it lose key battlegrounds to Johnson's governing Conservatives.

Violence flares | Israeli police fired stun grenades and rubber bullets at Palestinian protesters on a volatile hilltop shrine in Jerusalem early today, after weeks of violence related to Israel's celebration of its control over the contested holy city. U.S. National Security Advisor Jake Sullivan has told his Israeli counterpart of Washington's "serious concerns" over the violence.

Palestinian protesters run for cover from tear gas fired by Israeli security forces during clashes today at Jerusalem's Al-Aqsa mosque.

Photographer: Ahmad Gharabli/AFP/Getty Images

Failing to impress | As China moves to roll out the world's first major sovereign digital currency, speculation over the global implications has reached fever pitch. Yet the people who've actually used the digital yuan sound indifferent. "I'm not at all excited," said telecom industry worker Patricia Chen, one of the more than 500,000 people in Shenzhen eligible to take part in a digital yuan trial.

Odd couple | In polarized Washington, Senators Amy Klobuchar, a pro-choice Democratic proponent of big government, and conservative Republican Mike Lee shouldn't be friends. But as Anna Edgerton explains, they're working together out of mutual concern that mega-corporations, especially tech giants such as Apple and Amazon.com, wield too much power.

Center stage | Iran wants its banking industry to be given guaranteed sanctions relief as part of talks to restore its nuclear deal with world powers. As Golnar Motevalli writes, Tehran says U.S. restrictions have damaged the ability to import non-sanctioned goods like food and medicines and effectively handle the coronavirus outbreak.

What to Watch This Week

  • The leadership of South Africa's ruling African National Congress today wraps up a meeting that's been roiled by the exclusion of its secretary-general, who's facing graft charges.
  • South Korean President Moon Jae-in plans to use his final year in office to reach an "irreversible peace" on the Korean Peninsula, and will seek help in his quest at a summit next week with Biden.
  • The U.S. president is due to speak today with NATO leaders from central and eastern Europe ahead of a summit of Alliance members next month.
  • At least two of China's liquefied natural gas importers have been told to avoid buying from Australia, another sign of souring trade ties.
  • Hong Kong is one of the easiest places in the world to get a Covid-19 vaccine, but most people are skeptical and are choosing not to get vaccinated, making it a global outlier.

Thanks to the two dozen people who answered our Friday quiz question and congratulations to Lavan Sriranjan, who was the first to name St. Vincent as the place where the eruption of a volcano triggered an environmental threat on the other side of the planet.

And finally ... While a naval standoff between Britain and France over post-Brexit fishing rights has been defused, the Channel island episode that sparked the tensions is a reminder of the real-life consequences of an acrimonious divorce from the European Union and why it's such populist political catnip. Fish was a sticking point in talks and one that resurrected hostility between two nations that have been both bitter enemies and strategic allies over centuries, with Jersey historically stuck in the middle.

The Lighthouse Beach Cafe in Le Mare, Jersey.

Photographer: Chris J. Ratcliffe/Bloomberg

 

 

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