Russia signed a landmark nuclear agreement with Kazakhstan on Thursday to build the Central Asian country’s first-ever commercial power plant, marking a major geopolitical and economic victory for President Vladimir Putin, according to reports.

The $16.5 billion project, signed during high-level bilateral talks in Astana between Putin and Kazakh President Kassym-Jomart Tokayev, will be backed by a Russian export loan covering roughly 85% of the total cost, Reuters reported.

Rosatom, Russia’s state-run nuclear corporation, will lead construction near the village of Ulken in southeastern Kazakhstan along the shores of Lake Balkhash.

Rosatom secured the primary construction mandate after beating out competition from China National Nuclear Corp., France’s EDF and Korea Hydro & Nuclear Power, the outlet said.

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The pact directly advances the Kremlin’s efforts to anchor its economic and geopolitical influence within former Soviet states amid Western sanctions.

According to the World Nuclear Association, Kazakhstan is the world's largest producer of uranium.

For Kazakhstan, the facility is intended to stabilize a long-term domestic energy supply, since it has struggled with old coal-reliant power infrastructure and electricity deficits for more than two decades.

"The agreement signed today on the construction of the Balkhash NPP has an important role," Tokayev said at the signing ceremony.

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Putin called the deal "a flagship project in the field of peaceful nuclear energy" and said "the commissioning of the plant will make a significant contribution to the energy supply of the Kazakh economy, helping to provide businesses and households with affordable and clean energy."

"I would like to point out that, as we agreed with the president of Kazakhstan, we are not simply talking about the creation of a nuclear power plant or construction; we are talking about the creation of an entire industry, including education, personnel training, and so on," he added.

According to Kazakhstan’s atomic energy agency, the massive facility will feature two advanced VVER-1200 Generation III+ reactors.

Total development costs are estimated at $16.5 billion, with officials noting that approximately $2 billion of the sum will be allocated toward security systems and foundational infrastructure.

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Construction is scheduled to begin in 2027, with the first reactor slated to become operational by early 2034.

The project follows a 2024 national referendum in which Kazakh voters formally approved development at the Balkhash site.

However, the pivot to atomic energy is sensitive for local citizens. The nation hosted hundreds of Soviet nuclear weapons tests at the Semipalatinsk site between 1949 and 1989, leaving behind severe public health crises and environmental pollution.

Distrust increased over the 1986 Chernobyl disaster in Ukraine, after which tens of thousands of Kazakh workers fell ill assisting in cleanup operations.

According to Bloomberg, the two countries also signed a currency swap arrangement Thursday.

Bank of Russia Gov. Elvira Nabiullina and National Bank of Kazakhstan Gov. Timur Suleimenov signed the ruble-tenge swap agreement.

Satellite imagery revealed a massive suspected oil slick spreading near Kharg Island, Iran’s main oil export terminal, in what experts say could be evidence that Tehran’s oil infrastructure is buckling under mounting U.S. pressure.

The slick, seen in Copernicus Sentinel satellite images between Wednesday and Friday, covered roughly 45 square kilometers west of the island, according to analysts cited by Reuters.

The incident is emerging as a potential sign that Trump’s maritime pressure campaign is achieving one of its central objectives of overwhelming Iran’s export system to the point Tehran can no longer move or store crude fast enough to sustain normal production.

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The suspected spill near Iran’s main oil hub is raising concerns that mounting U.S. pressure is overwhelming Tehran’s ability to store or export crude, potentially forcing risky workarounds with environmental consequences in the Gulf.

"At this stage, I see two plausible explanations, and they’re not mutually exclusive," Miad Maleki, an Iran sanctions and energy expert at the Foundation for Defense of Democracies, told Fox News Digital.

"One is operational: They simply didn’t ramp down extraction fast enough relative to their true onshore capacity and over counted on empty tankers slipping through the blockade," he said.

"Now they’ve effectively over-delivered crude into the export system, with more oil at or near the terminals than they can actually load, and the ‘solution’ is to push some of that excess into the water."

Maleki said another possible explanation is mechanical failure tied to Iran’s use of aging tankers as floating storage or sanctions-busting carriers.

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"They’ve dragged older, marginal tonnage into service as floating storage or sanctions-busting carriers, and some of those retired or poorly maintained hulls are now leaking," he said.

"Either way, the common denominator is the same — storage and evacuation capacity are out of sync with upstream output, and the Gulf is paying the price for that mismatch."

The incident comes as the Trump administration continues pressing its Economic Fury campaign against Iran, combining sanctions enforcement with a growing U.S. naval presence around the Strait of Hormuz aimed at restricting Iran’s oil exports.

Before the conflict, Iran exported roughly 1.5 million barrels of oil per day, much of it to China. Analysts say the blockade and the threat of sanctions on shipping companies and financial institutions have made it increasingly difficult for Tehran to move crude out of Kharg Island.

Reuters reported the slick appeared as a "grey and white" plume west of the 8-kilometer-long island. 

Leon Moreland, a researcher at the Conflict and Environment Observatory, told Reuters the slick was "visually consistent with oil," while Louis Goddard, co-founder of Data Desk, said it could be the largest spill since the start of the U.S.-Israel war against Iran roughly 70 days ago.

Kharg Island handles roughly 90% of Iran’s oil exports and has become a critical choke point in the Trump administration’s effort to cut off the regime’s main source of revenue during the ongoing war.

Energy analysts say Iran is now facing a dangerous dilemma. If Iran cannot export oil or find additional storage capacity, it may be forced either to shut down wells, risking long-term damage to oil fields, or dispose of excess crude in ways that could trigger environmental fallout across the Gulf.

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"They’ve already reduced extraction. In a true blockade scenario, the constraint isn’t production at the wellhead, it’s the inability to load tankers at export terminals," Maleki said.

"Once onshore storage nears capacity, output has to be cut to match remaining headroom or wells get shut in," he added. "In Iran’s case, that’s roughly 13 days."

The environmental implications are also raising alarm across the Gulf.

Windward, a maritime risk intelligence firm, estimated the slick was moving southeast at roughly 2 kilometers per hour and warned it could reach Qatar’s exclusive economic zone within days and potentially drift toward the United Arab Emirates within two weeks.

The Gulf’s desalination infrastructure, relied upon by millions across the region, remains especially vulnerable to major oil contamination events.

The spill also is unfolding amid heightened military tensions in the Gulf. The war has trapped hundreds of vessels in the region and caused one of the largest disruptions to global crude and liquefied natural gas supplies in recent years.

Iranian authorities have not publicly commented on the suspected spill or its possible causes.

Fox News Digital reached out to the Iran mission to the U.N. for comment. 

Reuters contributed to this report.

A new U.S.-backed proposal to build a network of overland energy pipelines bypassing the Strait of Hormuz is gaining attention as tensions in the region expose a critical vulnerability in the global energy system.

A policy memo reviewed by Fox News Digital outlines the concept, known as "ARAM Express," a proposed consortium between the United States and Gulf partners to develop a multidirectional overland network for oil, gas and petrochemicals, originating with Richard Goldberg of the Foundation for Defense of Democracies.

The plan envisions pipelines extending westward to the Red Sea and Mediterranean, as well as southern routes toward the Arabian Sea, creating multiple export pathways that would reduce reliance on the strait, through which roughly one-third of the world’s seaborne oil currently flows.

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The proposal would rely on broad international participation, with European and Asian buyers investing in infrastructure and securing long-term supply agreements.

"European buyers are desperate for long-term supply resilience, and Asian customers are equally exposed," Goldberg said. "Even China cannot tolerate the risk of a sustained disruption."

The push comes as Iran’s threats to commercial shipping and ongoing U.S. efforts to secure the waterway under President Donald Trump’s "Project Freedom" highlight the risks posed by a single chokepoint to global energy flows.

Roughly one-third of the world’s seaborne oil passes through the narrow waterway, making it a critical artery for global markets. With Iran threatening shipping and U.S. forces now guiding vessels through the strait under President Donald Trump’s "Project Freedom," the White House is framing the crisis in global terms. 

"The President will not allow Iran to hold the global economy hostage and undermine the free flow of energy," said White House spokeswoman Taylor Rogers, describing the launch of "Project Freedom" as a humanitarian effort to restore navigation through the strait.

That framing aligns with a growing view among U.S. officials and analysts that the risk is not only immediate but also structural.

U.S. Ambassador to the United Nations Mike Waltz signaled that Washington’s partners are already looking beyond the strait itself.

"I know our Gulf partners and allies are seriously thinking through that," Waltz told Fox News Digital when asked about long-term alternatives during a conference call with reporters Monday.

"I know they’re looking at additional alternatives to frankly diversify their pathways and diversify their economies," he added.

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The idea that Hormuz represents a structural weakness is not new. But until now, it has largely been tolerated, with global markets relying on stability in the Gulf to keep energy flowing.

That assumption is now under strain.

Even with U.S. naval power deployed to secure the waterway, the current crisis has highlighted how quickly disruption, or even the threat of it, can ripple through global supply chains.

"This isn’t just a long-term idea anymore," said Rich Goldberg of the Foundation for Defense of Democracies think tank. "There is a real threat to the Strait of Hormuz that isn’t going away so long as the regime in Tehran remains."

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Saudi Arabia stands out as the country among Gulf states that has invested most heavily in reducing reliance on Hormuz.

Its East-West pipeline allows crude oil to travel from eastern fields on the Gulf to the Red Sea port of Yanbu, bypassing the strait entirely. From there, shipments can move toward Europe, Africa and Asia without entering the chokepoint.

"Saudi Arabia has treated the Strait of Hormuz risk with planning, not panic," said Salman Al-Ansari, a Saudi geopolitical analyst.

"The East-West pipeline is strategic insurance," he told Fox News Digital, "A Hormuz closure would be disruptive, but not paralyzing. Saudi Arabia has spent years reducing that vulnerability, and today it is uniquely positioned to absorb shocks and keep global flows moving."

Al-Ansari argued that the kingdom’s strategy goes beyond energy exports, positioning the country as a broader logistics hub.

"Ports, pipelines, land bridges, storage and Red Sea access are all part of one Saudi contingency architecture," he said.

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Saudi Arabia is not the only player adapting. 

The United Arab Emirates also has developed alternative export capacity through its pipeline to Fujairah, outside the Strait of Hormuz.

At the same time, some analysts argue that recent regional dynamics point to a deeper shift, one that goes beyond infrastructure and into the political structure of the Gulf itself.

Yonatan Adiri, an Israeli entrepreneur and former adviser to former Israeli President Shimon Peres, said the traditional model of a unified Gulf energy system centered on Hormuz is beginning to break down.

"The whole arrangement … it’s starting to expire," Adiri said, referring to the long-standing reliance on the strait as a central artery for Gulf exports. 

He pointed to emerging economic and geopolitical realignments, including new corridors and shifting alliances, that are fragmenting the region’s traditional energy architecture.

"The UAE stepping away from OPEC is not just about production policy," Adiri said, referring to the country’s decision to leave the Organization of the Petroleum Exporting Countries effective May 1, 2026. "It reflects a broader shift toward an independent strategy — building its own routes, partnerships and leverage rather than relying on a collective system."

These changes are driven in part by broader global competition, according to Adiri, particularly efforts by the United States and its partners to counter China’s Belt and Road Initiative.

"The entire system is being rethought," he said, describing a shift toward diversified routes that reduce reliance on single choke points.

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Despite these developments, not all Gulf states are equally prepared.

"If you’re Kuwait, you’re in a world of hurt," Goldberg said, pointing to countries that lack meaningful alternatives to maritime exports.

Qatar, one of the world’s largest exporters of liquefied natural gas, remains heavily dependent on the strait, with limited options to reroute supply if shipping is disrupted.

This uneven exposure could reshape regional dynamics, giving countries with alternative routes greater resilience and leverage in future crises.

While the technical case for alternative routes is growing stronger, political constraints remain.

One of the most sensitive issues is whether future corridors could involve Israel, even indirectly.

"As for routes involving Israel, even indirectly, the politics are extremely difficult under current circumstances," Al-Ansari said. "I genuinely do not see it happening now."

At the same time, he suggested that such cooperation could become more realistic in the future under different political conditions.

For now, the U.S. and its allies remain focused on stabilizing the immediate situation in the Strait of Hormuz, ensuring that ships can pass safely and global markets continue to function.

But as tensions persist, the current crisis is forcing a broader reassessment.

The question is no longer just how to secure the strait, but whether the global energy system can afford to depend on it to the extent it has for decades.

If the current trajectory continues, Hormuz may remain critical, but no longer dominant, experts argue, as countries invest in new routes, new partnerships and a more diversified energy map.

Fox News Digital reached out to Saudi Arabia and the UAE for comment but did not receive a response in time for publication.

The U.S. Treasury's Office of Foreign Assets Control (OFAC) on Friday sanctioned a major Chinese oil refinery and dozens of ships tied to Iran's "shadow fleet," escalating efforts to choke off Tehran's main source of revenue.

Officials said in a press release the move targets Hengli Petrochemical, one of Iran’s largest oil buyers, along with a network of shipping companies and tankers responsible for transporting billions of dollars worth of petroleum products to foreign markets. 

The Treasury Department identified these "shadow fleet" vessels as the financial lifeline for Iran's "unstable regime."

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The crackdown is part of Economic Fury, a broader campaign to squeeze Iran’s economy by limiting its ability to sell oil abroad, revenue the U.S. says funds the regime’s military and destabilizing activities across the Middle East.

"Economic Fury is imposing a financial stranglehold on the Iranian regime, hampering its aggression in the Middle East and helping to curtail its nuclear ambitions," Treasury Secretary Scott Bessent said.

Hengli Petrochemical (Dalian) Refinery Co. is a China-based "teapot" refinery, a term used for independent facilities known for purchasing discounted crude, including from sanctioned countries.

The refinery, one of China’s largest independent facilities, has received Iranian oil cargoes from sanctioned shadow fleet vessels since at least 2023. Hengli has also purchased oil tied to Iran’s armed forces, generating hundreds of millions of dollars for the Iranian military.

Hengli has also received shipments tied to Sepehr Energy Jahan Nama Pars Company, a firm identified by U.S. officials as a front for Iran’s armed forces that helps facilitate oil sales abroad. 

The company operates on behalf of Iran’s Armed Forces General Staff, using a network of intermediaries and vessels to move sanctioned crude, with proceeds helping fund the country’s military programs and regional proxy groups.

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The new sanctions also target the network that makes these oil sales possible, a "shadow fleet" of aging tankers and shell companies that move petroleum across global markets while evading sanctions and obscuring the origin of shipments.

These ships avoid detection by transferring cargo from one tanker to another in the open ocean. Treasury officials said 19 vessels were targeted in the action.

The move is part of the Trump administration’s renewed "maximum pressure" campaign against Iran, aimed at cutting off the regime’s primary source of revenue through oil exports and sanctions enforcement.

U.S. officials say oil exports remain the backbone of Iran’s economy, and efforts to restrict those flows are designed to limit the government’s ability to fund its military, support proxy groups and advance its nuclear program.

Treasury officials warned that additional sanctions are likely as the U.S. continues targeting the networks, intermediaries and buyers that enable Iran to move oil on the global market.

Iran is moving tens of millions of barrels of oil through covert offshore networks to bypass the new U.S. blockade on its ports, maritime intelligence firm Windward AI says.

The blockade, which took effect April 13, came amid a two-week ceasefire and failed peace talks between the U.S. and Iran, and as President Donald Trump insisted the waterway must remain open. Roughly 20% of the world’s oil passes through it.

"Iranian oil distribution continues through indirect routing and offshore transfer networks," Windward told Fox News Digital.

"As of April 13, at least 11 tankers carrying approximately 20 million barrels of Iranian oil are positioned offshore Malaysia within a ship-to-ship transfer hub," the firm determined.

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"These vessels are likely awaiting counterpart vessels for offloading or preparing for onward movement."

Windward also clarified that the concentration highlights Iran’s "continued use of offshore storage and transfer mechanisms."

This allows Iranian oil flows to "persist outside direct transit through the Strait."

"Dark activity remains a central enabler of ongoing operations, supporting both post-transit port calls and broader evasion strategies," Windward added.

"At the same time, Iranian oil flows are increasingly routed through offshore hubs, reducing reliance on direct Hormuz transit."

U.S. forces began implementing the blockade at 10 a.m. ET April 13 after Trump vowed to block "any and all ships from trying to enter or leave" the strait, following weeks of pressure on Tehran.

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As previously reported by Fox News Digital, the U.S. military confirmed Wednesday it stopped nine oil tankers from attempting to breach the blockade.

"During the first 48 hours of the U.S. blockade on ships entering and exiting Iranian ports, no vessels have made it past U.S. forces," U.S. Central Command (CENTCOM) said.

"Additionally, nine vessels have complied with direction from U.S. forces to turn around and return toward an Iranian port or coastal area," CENTCOM wrote on X.

Fox News was also told all nine vessels were oil tankers. None of the vessels ordered to turn around needed to be boarded by U.S. forces, a senior U.S. defense official said.

On the first "full day" of the blockade, April 14, however, under active U.S. enforcement, Windward noted vessel behavior indicating "a fragmented and uneven response to the blockade."

"Initial movements show a combination of continued transit, route deviation and potential evasion," the firm said.

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"Sanctioned and falsely flagged vessels remain active, with some proceeding through the Strait while others delay, reverse course or adjust routing patterns.

"Iranian oil flows continue through indirect distribution networks, with significant volumes accumulating offshore rather than transiting directly through Hormuz."

CENTCOM said the blockade would apply only to maritime traffic entering and exiting Iranian ports.

It stressed that U.S. forces would not "impede freedom of navigation" for vessels transiting the strait to and from other destinations.

The blockade on the key trade route would be enforced "impartially" against any vessels entering or departing Iranian ports, including those in the Persian Gulf and the Gulf of Oman.

So far, sanctioned and falsely flagged vessels continue to operate under evolving enforcement conditions.

Rich Starry, a U.S.-sanctioned handy-size tanker signaling laden status, resumed outbound transit after previously turning around.

Windward said its routing did not follow the Larak Island corridor and instead aligned with the alternative outbound path proposed by Iran.

At the same time, Murlikishan, a U.S.-sanctioned chemical tanker, was also observed journeying inbound, Windward clarified.