Donald Trump announced that the United States was reinstating a naval blockade targeting Iranian shipping in the Strait of Hormuz and demanded 20% reimbursement for security costs. Iran disputed the US framing and tensions escalated after missile and drone exchanges, pushing Brent crude higher and weighing on Wall Street. The UK and Switzerland agreed to a services trade deal worth about £5.2 billion annually, while US states led by California sued to block Warner Bros. Discovery’s proposed merger with Paramount on antitrust grounds. UK counter-terrorism police are also investigating the suspected murder of former MP Ann Widdecombe.

The United States says the Strait of Hormuz remains open while Iran claims to have closed it, amid Iranian attacks and US strikes on 140 Iranian military targets. UN Secretary-General Antonio Guterres called for an immediate end to the escalation. Other political developments include the death of US Senator Lindsey Graham, an arrest over the killing of former UK MP Ann Widdecombe, and Israel's plans for parliamentary elections while Benjamin Netanyahu faces war-related criticism and corruption charges. In business news, Apple sued OpenAI alleging theft of confidential product information, EasyJet became the subject of competing Apollo and Castlelake takeover bids, and Volkswagen announced plans to reduce its model range and production capacity.

Iran holds a multi‑day funeral for Ayatollah Ali Khamenei amid regional tensions as vessel traffic through the Strait of Hormuz declines and OPEC+ members agree to higher production quotas. Donald Trump speaks separately with Vladimir Putin and Volodymyr Zelensky about the Ukraine conflict ahead of a NATO summit. Market analysts warn that optimism over easing Middle East tensions may be premature. EasyJet reaches an agreement in principle on a multibillion‑pound takeover proposal from Castlelake. An experimental Ebola treatment trial begins in the Democratic Republic of Congo as cases rise, while wildfires across southern Europe destroy thousands of hectares during extreme heat.

US employment growth underperformed expectations, driven by a drop in the participation rate and a decline in hospitality jobs despite the Football World Cup. Indirect US‑Iran technical talks in Doha recorded progress, while Russian missile and drone strikes on Kyiv killed at least 18 people. The EU upheld a €4.1 billion fine against Google over Android competition practices. Microsoft announced a US$2.5 billion investment in a new AI‑focused group. Lloyds Banking Group will retire the Halifax brand in the UK while keeping branches open. Australia’s proposed gambling‑advertising restrictions contain a loophole allowing ads during online sports streams for logged‑in adults.

Andy Burnham outlined a plan to decentralise power, raise living standards and expand housing in the UK, while Bank of England economist Huw Pill warned Brexit-related structural changes were complicating inflation control. Tensions in the Middle East continued as conflicting signals emerged over potential US–Iran talks and Iran asserted control over shipping routes through the Strait of Hormuz. The US Supreme Court blocked Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook. Major business developments included British American Tobacco’s plans for significant job cuts, Comcast’s proposal to split its operations, South Korea’s multibillion‑dollar investment push in chips and AI, and Ford’s rehiring of experienced engineers after automated systems underperformed.

Talks to end the Iran war stalled after US strikes on Iranian targets prompted threats of further escalation from both sides, with Iran asserting control over the Strait of Hormuz and retaliatory attacks widening regional tensions. Donald Trump warned European countries against imposing digital services taxes, threatening 100% tariffs on their goods. Markets showed signs of stabilizing despite uncertainty, while oil prices fell as tankers exited the strait. SpaceX is expected to join the Nasdaq 100 index, Serbia’s president plans to resign ahead of early elections, Europe faces deadly heatwaves, UK food and drink exports decline, and King Charles disclosed paying £12.9 million in taxes to promote transparency.

The US Supreme Court allowed President Trump to end deportation protections for nationals from Haiti and Syria and revive a restrictive migrant‑processing policy. The International Maritime Organisation paused its vessel evacuation plan in the Strait of Hormuz following a reported attack. Venezuela declared a state of emergency after two severe earthquakes caused significant casualties and destruction, with the UN coordinating rescue efforts. Anthropic accused Alibaba of extracting its AI capabilities through distillation attacks and urged US lawmakers to act. US inflation reached a three‑year high in May. EasyJet began talks with Castlelake after rejecting a takeover bid. Australia signalled stronger regulation to enforce its social media age restrictions for minors.

Iran agreed to allow nuclear inspectors to visit as US vice‑president JD Vance reported progress in negotiations and mechanisms to keep the Strait of Hormuz open. Keir Starmer resigned as UK prime minister and Labour leader after losing party support, triggering financial market uncertainty and opening a leadership contest likely to feature Andy Burnham. Nigel Farage argued the country needed significant political change. SpaceX secured a multibillion‑dollar computing agreement with Reflection AI, while EasyJet rejected a takeover offer from Castlelake. Former US Federal Reserve chair Alan Greenspan died at 100, and Guinea banned exports of unrefined gold to boost domestic processing.

Negotiations between the United States and Iran resumed amid conflicting claims over the status of the Strait of Hormuz, with Iran asserting it was closed and the US military insisting it remained open. Political tensions continued as Donald Trump was blamed by Germany’s defence minister for the situation, while US Senator Lindsey Graham discussed a potential plan for the United States to seize control of the waterway if diplomacy fails. UK Prime Minister Keir Starmer faced increasing pressure over his leadership following a by‑election setback. Ethiopia’s Prosperity Party secured another parliamentary majority, keeping Abiy Ahmed in power. Volodymyr Zelensky returned Poland’s highest honour after it was revoked over a controversial naming decision. In business, Mukesh Ambani’s Jio Platforms filed for a large IPO, and King Charles III prepared to disclose his personal tax bill as part of moves toward greater transparency.

The Bank of England left interest rates unchanged after a split vote while lowering near‑term inflation forecasts and upgrading growth expectations. UK job vacancies fell to a five‑year low despite resilient labour conditions. The United States and Iran began a formal negotiating period following a memorandum to end the war, with Donald Trump warning Iran against violating commitments as the Strait of Hormuz reopened. Oil prices declined as tanker traffic increased. OPEC rejected predictions of an impending supply glut. Ukraine intensified drone attacks on Russia in retaliation for a strike on a Kyiv monastery. Apple signalled upcoming retail price increases due to surging memory‑chip costs. An audit of Australia’s Snowy Hydro project found ongoing deficiencies despite a reset in 2023.