Bill Gates says there is currently no strategy to handle the social, political, and economic turmoil that artificial intelligence is poised to unleash.

The Microsoft

In an essay published Wednesday, Gates said AI could displace workers across the economy, squeeze entry-level hiring, and force policymakers to rethink employment, education and the social safety net.

The essay marks a shift from his earlier remarks, in which he described AI as “the biggest technical thing ever in my lifetime” and stressed its profound influence.

In the piece, Gates argues that new national bodies and international institutions will ultimately be required to coordinate and safeguard against evolving AI risks worldwide.

“The challenge is monumental. Even under the best circumstances, the transition to this new AI era will be one of the most turbulent times in human history,” he said.

‘A vicious cycle’

He contends that, unlike previous technological shifts, AI could replace human cognitive work across industries faster than displaced workers can move into newly created roles.

“We need time to prepare for the period of social, political, and economic upheaval we are about to enter,” he wrote.

“Unfortunately, right now we are not preparing for it. I don’t see evidence that leaders, experts, and communities are confronting the challenges adequately. There is no plan to ease the entry into the AI era.”

Gates notes that white‑collar jobs in sales, customer support, software engineering and paralegal work are already feeling the pressure, with AI poised to take on tasks such as loan assessment, data analysis and patient triage.

Blue‑collar workers will also face strain as ever‑cheaper, more capable robots spread, while younger people risk entering a labor market with fewer openings.

“The people who need the most time are the ones who have the least — the accounting worker replaced by a bot or the $20‑an‑hour worker who loses their job to a $10‑an‑hour robot,” he added.

Competition could accelerate adoption as firms use AI and robotics to cut costs and prices, forcing rivals to follow. “Robots and AI combined can create a vicious cycle,” he warned, noting that retraining and finding new work would cause significant turmoil.

How Gates says governments should prepare

Gates — who acknowledged in the essay that he still has financial ties to the tech industry — also said the technology can “accelerate innovation” in the world’s “toughest technical challenges”: providing reliable clean energy, combating climate change, growing enough food and eradicating diseases.

He said managing the transition requires new national bodies able to coordinate policy across employment, taxation, energy, elections, public health, the financial system and national security.

“But even a country that gets its own house in order will still be exposed to risks that cross borders. This is why an international organization will need to be built in parallel,” he said.

These agencies could be modeled on existing systems such as the global inspections regime for nuclear weapons, regulations for international aviation and agreements that protect the ozone layer.

“A new global organization for AI will need elements of all three and more,” he added.

The U.S. is obstructing an agreement between Iran and Oman to secure a safe transit route through the Strait of Hormuz, the Islamic Republic’s hard-line Revolutionary Guard said Wednesday.

Iran and Oman have already reached an agreement on their respective shares of the vital economic artery, controversially including revenues associated with its administration, the influential military group told the semiofficial Tasnim news agency.

The Revolutionary Guard said the strait would remain closed if the U.S. does not accept Iran’s conditions.

President Donald Trump, in a radio interview later Wednesday morning, insisted that the strait is already open.

“We take a lot of ships through the strait now. We’re taking them in,” Trump told conservative radio host Glenn Beck.

“Every once in a while there’ll be a drone or a rocket or something shot, but it is a very functioning strait. A lot of oil is pouring out,” the president said.

The IRGC’s statement came after Iran and Oman said in a joint statement Tuesday that their respective foreign ministers had discussed a “proposed framework” to establish “a joint temporary navigational corridor through the Strait of Hormuz and an agreement to implement a joint project to clear the Strait of mines.”

Trump has recently claimed that the U.S. and Iran are engaged in behind-the-scenes negotiations, even as Tehran has denied any such talks are taking place. Last week, however, Trump said the parties were done talking and had no plans to resume communications.

In an interview with Al Jazeera on Wednesday, Trump said he’s in no hurry to restart negotiations with Iran.

“I have no time schedule, none. I’m not in a hurry. I have no time schedule at all,” Trump said when asked how much time he was giving Iran to return to talks.

Trump also told Al Jazeera that he thinks economic measures and military operations against Iran “are both effective.”

Two days earlier, Treasury Secretary Scott Bessent announced a plan to economically isolate Iran by threatening to slap secondary sanctions on the Islamic Republic’s “enablers.” Those sanctions, unveiled nearly six months into the war, have yet to be imposed.

Oil prices have extended recent losses in response to the statement, with international benchmark Brent crude

Just five commodity vessels transited the Strait of Hormuz on Tuesday, below the 10-day average of 15, according to preliminary data from Kpler. Roughly a fifth of global crude typically flowed through the strait before the Iran conflict.

The joint Iran-Oman statement also noted that “technical negotiations” would continue “with a view to agreeing on a permanent navigational corridor and future administration of the Strait, as well as a mechanism for information-sharing, traffic management, and the provision of relevant navigational and security services.”

Contributing to pressure on oil prices in recent days, the U.S. has reportedly started returning its diplomats to Gulf states – suggesting Washington does not currently expect military escalation. Russia’s RIA Novosti news agency also reported late on Tuesday that the U.S. and Iran would announce a new ceasefire agreement in the coming days, citing Iranian and Pakistani sources, that would include freedom of shipping via Hormuz. However, this could not be independently verified, and the White House did not respond to MS NOW’s request for comment.

U.S. holds back on secondary sanctions

It comes after Bessent’s pledge on Monday to launch an “economic D-day” on the Iranian regime, threatening to target Tehran’s “enablers” and trading partners in efforts to strangle its economy. This included a list of 60 individuals, entities and vessels.

However, the U.S. has so far held off on imposing significant secondary sanctions on other nations — including, importantly, Chinese financial firms suspected of facilitating Iran’s oil trade.

“Why would I want to blow up the global financial system? We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious,” Bessent said Monday.

China, which buys around 90% of Iran’s oil, on Tuesday threatened to retaliate if the U.S. opted to expand economic pressure on nations trading with Tehran.

Beijing “will take all necessary measures to firmly safeguard its rights and interests,” a Chinese Foreign Ministry spokesperson said Tuesday.

On Wednesday, Iran’s hard‑line Revolutionary Guard asserted that the United States is blocking a deal between Iran and Oman aimed at guaranteeing safe passage through the Strait of Hormuz.

The Guard added that Tehran and Muscat have already settled on how to split control of this crucial waterway, including the disputed revenue from its management, according to the semi‑official Tasnim agency.

It warned that the strait would stay shut unless Washington accepts Tehran’s terms.

Later that morning, President Donald Trump told a radio interviewer that the waterway is already open.

He said, “We’re moving many vessels through the strait right now,” speaking to conservative host Glenn Beck.

He added, “Occasionally a drone or rocket is fired, but the route remains fully operational, with large volumes of oil flowing out.”

The IRGC’s remarks followed a Tuesday joint statement from Iran and Oman, in which their foreign ministers said they had discussed a proposed framework for a temporary joint navigation corridor in the Strait of Hormuz and a plan to clear mines from the waterway.

Trump has recently asserted that the United States and Iran are holding covert talks, although Tehran denies any such discussions. Last week, however, he said the two sides had finished talking and had no intention of restarting dialogue.

In a Wednesday Al Jazeera interview, Trump said he is not rushing to resume negotiations with Iran.

He stated, “I have no timetable, none. I’m not in a hurry. I have no schedule at all,” when asked how much time he is giving Iran to return to talks.

He also told Al Jazeera that he believes both economic pressure and military action against Iran are effective.

Two days prior, Treasury Secretary Scott Bessent unveiled a plan to economically isolate Iran by threatening secondary sanctions on the Islamic Republic’s “enablers.” The measures, announced almost six months into the conflict, have not yet been imposed.

Oil prices have continued to fall after the statement, with the international Brent crude benchmark.

According to preliminary Kpler data, only five commodity ships passed through the Strait of Hormuz on Tuesday, well below the 10‑day average of fifteen. Normally, about one‑fifth of global crude moves through the waterway before the Iran‑related tensions.

The Iran‑Oman joint statement added that technical talks would continue aimed at reaching a permanent navigation corridor, future administration of the strait, and a system for sharing information, managing traffic, and providing navigational and security services.

Adding to oil‑price pressure, the United States has reportedly begun redeploying diplomats to Gulf states, indicating Washington does not anticipate imminent military escalation. Late Tuesday, Russia’s RIA Novosti cited Iranian and Pakistani sources, saying the U.S. and Iran might announce a new cease‑fire in the coming days that would guarantee shipping freedom through Hormuz. The claim could not be independently verified, and the White House did not reply to a request for comment from MS NOW.

U.S. Delays Secondary Sanctions

This follows Bessent’s Monday pledge to launch an “economic D‑day” against the Iranian regime, threatening to target Tehran’s “enablers” and trading partners to choke its economy, a list that covered 60 people, organizations and ships.

Nevertheless, the United States has so far refrained from levying major secondary sanctions on other countries, notably Chinese financial firms believed to be facilitating Iran’s oil exports.

Bessent said on Monday, “Why would I want to destabilize the global financial system? We think it’s important to set a baseline and give people a grace period, but they should know we will act swiftly and we are serious.”

China, which purchases roughly 90 % of Iran’s oil, warned on Tuesday that it would retaliate if the United States broadened economic pressure on countries trading with Tehran.

A Chinese Foreign Ministry spokesperson said on Tuesday, “Beijing will take all necessary steps to firmly protect its rights and interests.