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Published on 18/06/2026 – 13:20 GMT+2•Updated
13:35

The Bank of England left its benchmark interest rate unchanged at 3.75% on Thursday, extending a pause that began in December 2025, as policymakers weighed the inflationary fallout from the Iran war against signs of resilience elsewhere in the economy.

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Governor Andrew Bailey and fellow Monetary Policy Committee members were widely expected to keep rates on hold and maintain a broadly neutral stance on future policy moves.

The decision came a day after official figures showed UK inflation holding steady. Consumer prices rose 2.8% year-on-year in May, unchanged from April and below economists’ expectations of 3.0%, leaving the headline rate at its lowest level since early 2025.

However, the stable reading masked diverging trends beneath the surface. Transport costs accelerated sharply to 6.8%, driven by higher fuel prices and rising air fares, while food inflation eased to 2.2% and housing costs continued to moderate.

Though inflation remains above the bank’s target of 2%, the figure raised hopes that the upward pressure on prices emanating from the spike in oil and gas prices after the start of the Iran war on 28 February may have been less than anticipated.

Andrew Bailey, the bank’s governor, said the recent fall in oil prices has been “encouraging” while noting they are still higher than before the war.

“Whatever happens in the future, the higher energy prices of the past four months mean there’s already some inflationary pressure in the pipeline,” he said. “The Bank’s job is to make sure that doesn’t turn into sustained inflation above our 2% target.”

Analysts also cautioned that inflation could still accelerate later this year, as higher household energy bills feed through to prices. Lindsay James, investment strategist at Quilter, said: “Whilst inflation was below expectations in May and currently under 3%, it is still likely to jump closer to 4% later in the year due to the coming impact of a higher energy price cap.”

James added that while oil prices have retreated from recent highs, they remain above last year’s levels, suggesting underlying inflation pressures have not fully disappeared.

The decision to hold the key interest rate was not unanimous, with two of the nine Monetary Policy Committee members voting for a quarter-point rate increase, reflecting concerns that higher energy costs could still feed through into broader inflation pressures.

A labour market losing momentum

Thursday’s labour market release painted a mixed picture.

The unemployment rate dipped unexpectedly to 4.9% in the three months to April, down from 5.0% in the first quarter, yet payrolled employee numbers fell over the period, pointing to an underlying loss of momentum even as the headline jobless rate improved.

Wage growth, a metric the Bank of England watches closely for signs of persistent price pressure, held firm, with regular pay excluding bonuses rising 3.4% on the year.

“The labour market is still continuing to lose momentum, with the latest figures showing a further cooling,” stated Richard Carter, head of fixed interest research at Quilter Cheviot.

Sanjay Raja, chief UK economist at Deutsche Bank, struck a similar note, cautioning that “it’s clear that the labour market is not out of the woods yet,” though he added that the mixed data buys the committee more time to wait and see how the economy evolves.

The combination of cooling headline inflation, a softening jobs market and still-robust pay growth underscores the bind facing the committee. Strong earnings keep alive the risk of so-called second-round effects, where higher wages feed back into prices, even as hiring loses steam.

The Franco-German KNDS company has presented a new main battle tank, which it is offering to France as an interim replacement for its Leclerc fleet. The development comes as France recognizes that it will need a Leclerc successor before the next-generation Main Ground Combat System (MGCS) becomes available. This joint French and German program is complicated and already delayed, while Europe at large is increasingly alert to the need for capable tanks and other armored vehicles as the threat from Russia grows, and trust around U.S. military backing diminishes.

The proposed CAPINT tank was unveiled at the Eurosatory defense show on the outskirts of Paris this week.

Europe currently has four major lines of development effort for future main battle tanks (excluding the United Kingdom), ranging from multinational programs to national developments. The landscape has become much more fragmented over the past two years, as nations have increasingly understood the urgency of fielding new-generation armored vehicles.

Arguably the most ambitious of these programs is the now-delayed Franco-German MGCS, which began in 2017 and is now expected to arrive in service some time in the mid-2040s. With the MGCS delayed by roughly a decade, both France and Germany have a looming capability gap. In the case of France, its Leclerc tanks are due to be taken out of service by 2038.

As well as the main battle tank that is supposed to be its centerpiece, the MGCS program, as a ‘system of systems,’ is expected to field other crewed and uncrewed vehicles. These will likely be tasked with electronic warfare, air defense, or as platforms from which to launch drones or loitering munitions or fire directed-energy weapons.

Alongside this effort, around a dozen European nations (excluding France) are currently working on research and development under the MARTE (Main ARmored Tank of Europe) program, which is looking at tank requirements for the post-2040 period.

Against this complicated backdrop, France and Germany have both come to the realization that they will need new tanks before the MGCS arrives in service.

As a result, Germany is now working on the Leopard 3, also known as the Leopard 2AX, expected to provide a service-ready fighting vehicle around the early 2030s.

Back in April of this year, French Armed Forces Minister Catherine ​Vautrin told parliament that Paris had decided to launch an “intermediate” tank program to mitigate delays affecting MGCS.

To meet the French requirement for a stopgap tank, KNDS is now proposing its CAPINT (CAPacité INTérmédiaire, or Interim Capability).

This will combine a French turret and main gun on the hull of a German Leopard 2, a tank that is already in production for a variety of customers. Should this solution be chosen, a new Leopard 2 would likely be set up in France to manage the demand.

Interestingly, another new tank on show in Paris this week, the New Main Battle Tank (NMBT) concept demonstrator, from the Leonardo Rheinmetall Military Vehicles (LRMV) joint venture, also uses a Leopard 2 hull as its starting point, although that may change in the future. Derived from the Rheinmetall Panther KF51, the new tank is being offered to the Italian Army, which is also looking for a successor to its current Ariete main battle tank.

Returning to the CAPINT tank, the turret will be uncrewed and armed with the 120mm ASCALON smoothbore gun from KNDS France. The plan is to have the turret able to accommodate a 140mm cannon in the future. The 120mm ASCALON has already undergone firing trials using an uncrewed turret on a moving vehicle. Meanwhile, the 140mm version of the ASCALON is planned for the MGCS.

#ASCALON

Unlike larger-caliber guns that have been proposed for future tank programs in the past, the 120 mm ASCALON offers the advantage of being fully compatible with all NATO-standard 120 mm ammunition. This means operators can maintain and leverage their existing ammo stockpiles.

The three crew of the CAPINT will be carried in an “armored citadel” at the front of the vehicle, which will be defended by passive composite armor as well as reactive and active protection systems.

The active protection system will be developed by KNDS and will be distributed around the turret and hull, so its defensive effectors provide more complete coverage.

In the meantime, it is interesting to note that a Leclerc outfitted with an anti-drone “cope cage” on top of its turret is part of the dynamic demonstration of military equipment at Eurosatory this week.

KNDS says it will complete a CAPINT demonstrator tank as early as 2030 and, should France choose to go with it, it could deliver the first series-production examples in 2035, leading to frontline deployment in 2037.

There is also a plan to incorporate into the CAPINT some of the advanced systems that are intended for the MGCS.

These elements are likely to include fully integrated AI, the aforementioned passive/reactive/active protection systems, counter-drone warfare, and beyond-line-of-sight engagement capability.

Another feature of the MGCS program that would likely be brought forward for the CAPINT tank is accompanying uncrewed ground vehicles (UGVs). According to MGCS, one or two types of “robotic wingmen” are planned for the interim tank. These UGVs will be able to keep up with the tank, but will be small enough to be affordable. Their cost will also be governed by offering different levels of passive protection.

The renewed focus on tank programs reflects a broader resurgence of armored warfare across Europe, driven largely by lessons from Russia’s full-scale invasion of Ukraine. While that conflict has highlighted the vulnerability of tanks to drones, loitering munitions, and precision anti-tank weapons, it has also underscored that heavily protected, mobile firepower remains indispensable for combined-arms operations. As a result, European militaries that once downsized or delayed armored modernization are now investing heavily in new main battle tanks and upgrades.

While the need for interim tanks in both France and Germany is becoming increasingly urgent, the current push for the CAPINT and for the German Leopard 3/Leopard 2AX does risk putting the MGCS program under threat.

“We are already working to create what will be the combat of tomorrow,” KNDS CEO Jean-Paul Alary said during a press conference at Eurosatory yesterday. “Maybe the combat of tomorrow, the ambition of MGCS, will come a little bit earlier than the project itself.”

Meanwhile, according to Reuters, a German government spokesperson raised doubts about the future of MGCS, saying that the project would be focused on “platform-independent” technologies, adding that it was not clear whether a joint tank would still be built.

Depending on how capable these stopgap tanks prove to be, the decision of France and/or Germany to walk away from the more complex MGCS program could become easier. Much will likely also depend on the path that the MARTE program takes, with the possibility that MGCS requirements could be superseded. Meanwhile, recent experience with the Franco-German-led pan-European Future Combat Air System (FCAS) has highlighted just how difficult it can be to keep programs like these on track, regardless of how badly they may be needed.

Contact the author: thomas@thewarzone.com

June 11 (UPI) — President Donald Trump said Thursday that the United States may take control of Iran’s oil and gas industries like it did in Venezuela earlier this year.

Trump posted the threat on social media, warning that the United States will continue attacking Iran after a series of airstrikes on Wednesday.

“The United States will be hitting Iran (Whose Navy, Air Force, Radar, Anti Aircraft, and all other forms of Defense, together with most of its offensive capability, are GONE!), VERY HARD TONIGHT,” Trump wrote. “At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets, much like we have with Venezuela, which is working out brilliantly for both Venezuela and the United States of America.”

About 90% of Iran’s crude oil shipments were exported from Kharg Island before the United States and Israel launched the war on Feb. 28.

The United States has launched strikes on Kharg Island during the Iran war but it has not seized control of any of its oil and gas infrastructure yet.

Trump further discussed taking control of Iranian infrastructure during an appearance on Fox News on Thursday morning.

“Look, my preference has always been take Kharg Island,” he said. “I don’t think America has the stomach for that. I think they’d like to see us come home, but we did it with Venezuela. Venezuela’s worked out great for everybody.”

Fighting has heightened again between the United States and Iran with Iran shooting down a U.S. helicopter earlier this week near the Strait of Hormuz. The U.S. military launched what it is calling “self-defense strikes” on Iranian military surveillance, communication systems and air defense targets.

U.S. Central Command said Wednesday that the strikes were “in response to Iran’s unwarranted and continued aggression.”

Trump has said for weeks that Iran and the United States are close to reaching a peace agreement, saying at several points Iran wanted to reach a deal. Fighting between Iran and Israel paused over the weekend after Trump urged both sides to stop exchanging fire.

The United States continues to enforce a blockade on ships using Iranian ports on the Strait of Hormuz.

Violence erupted after Turkish police stormed the headquarters of the main opposition CHP party in Ankara following a court ruling that removed leader Ozgur Ozel and reinstated former chairman Kemal Kilicdaroglu.
Officers fired tear gas and smashed through barricades, removing Ozel from the building.

A MAIN road into a major UK airport is set to shut over the half term – and could spark getaway chaos for thousands of Brits heading on holiday.

The works will take up to 11 days to complete.

An overnight road closure will block a main access route into Leeds Bradford Airport, with works starting next Monday (May 18).

From 7pm to 6am, the route between the Pool Bank and Dyneley Arms junction and Leeds Bradford Airport will be shut, with works set to last until Friday, May 29.

The airport notified travellers of the disruption via social media, and said a sign-posted diversion route will be in place, operating via the A660.

It added that those travelling from North Yorkshire, the North East, and Wetherby may find their journey times up to 30 minutes longer than usual.

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The airport also suggested to factor in additional time when travelling to or from the area, as disruption is to be expected.

Online, travellers reacted with disbelief and frustration over the schedule of the closures.

One said: “Staggering timing as the Friday and the overnight on Saturday is the first day of half term so lots of families will be travelling.”

Others complained that the works in place last week had caused “horrendous” traffic, where “there was no way to get through”.

Leeds Bradford Airport welcomes more than four million passengers a year, with flights from airlines like Jet2, Ryanair, and easyJet.

Last year, it opened a new multi-million pound terminal and aims to serve seven million travellers annually by 2030.

More commercial flights have been departing from Iran’s largest airport following its reopening last week.

Iranian authorities announced the resumption of flights at Imam Khomeini international airport after approximately 58 days of suspension since the launch of the US-Israel war on Iran. Flight information boards also went offline after the closure of Iran’s airspace.

For weeks, the suspension of flights stranded many travellers, disrupted businesses, and separated families.

Air traffic gradually resumed from April 25 with flights to 15 destinations operated by eight domestic airlines, covering regional and international destinations such as Medina, Istanbul, Muscat, China and Russia. Yet the number of flights is a fraction of what it was before the war.

Maryam, a passenger who planned to go to Toronto to see her daughters, told Al Jazeera: “After a lot of stress and problems, now I’ve found a ticket with an Iranian airline — flying first to Armenia with a long layover, and then on to Canada.”

Before the war, the airport was bustling with travellers and would witness 150 flights on a typical day. Now, terminals that were packed, then empty, are slowly filling up again as flights resume.

Ramin Kashef Azar, CEO of Imam Khomeini Airport City, told Al Jazeera that the return of foreign carriers, many of which have operated in the country for years, “will depend on political stability and their own risk assessments.” According to the Iranian Civil Aviation Organization, 20 aircraft have been destroyed and are no longer operational. However, the airport infrastructure has not been damaged and is approximately 95 percent ready.

These developments come after Iran’s gradual reopening of its airspace from April 19, in four phases. It encompasses transit flights followed by domestic flights, culminating in the full resumption of operations at international airports, as stated by the Iranian aviation regulator.

Foreign companies are apprehensive about returning to operate at Iranian airports amid the uncertainty surrounding the political and negotiating landscape between Tehran and Washington.

Targeting of airports

Iran’s civil aviation sector has suffered damage as a result of the war. More than 3,300 people have been killed in Iran, and thousands have been injured, in addition to widespread destruction of civilian infrastructure.

Another airport that was subject to US-Israel attacks several times was Mehrabad airport, also in Tehran. The airport mainly handles domestic flights. Located in the west of the capital, it was the official airport for international and domestic flights before the construction of Imam Khomeini airport in 2009.

In addition to Mehrabad, airports in Kashan, Tabriz, Ahvaz, Mashhad, Khoy and Urmia were also targeted. Several civilian aircraft have been damaged.

It is not the first time Mehrabad Airport has been attacked. In June 2025, it was reported that Israel targeted Mehrabad airport during the 12-day war. Iranian authorities, however, said the airport and its runways escaped damage.

The impact of the war goes beyond airports. It has affected other businesses, causing revenue losses, layoffs and operational disruptions.

Babak, a tour guide, said he and many of his colleagues lost their jobs “because there were no incoming or outgoing tours, as flights were suspended and the war was ongoing”.

Nowruz, the Persian New Year, which comes with a peak aviation season for Iranian airports, also witnessed flight suspensions and caused major disruption. According to Bijan, a travel agent, this affected tours, charter flights, and hotel bookings. He added that they are processing refunds and had to cut staffing from 20 to just two.

Airports are coming back to life, and passengers are returning, hinting at a fragile normalcy after weeks of silence. Each departure signals renewed connection with the world, even as uncertainty on the ground endures.

Al Jazeera’s Tohid Asadi has been seeing more flights take off at the main airport in Iran’s capital, where operations resumed on Saturday as the ceasefire with the US and Israel continues.

Ex-intelligence officer Amjad Youssef was seen shooting blindfolded civilians in a leaked video.

Syrian authorities have arrested the main suspect accused of the 2013 Tadamon massacre in Damascus, during which at least 41 people were killed.

Amjad Youssef was arrested following a “tightly executed security operation”, the interior ministry said, adding that surveillance and tracking operations were employed for days across the Al-Ghab Plain in Hama.

Footage circulating on social media showed the moment Youssef was arrested. He is seen handcuffed on the floor and then in a vehicle surrounded by security forces, with traces of blood on his face.

An intelligence officer during the leadership of former Syrian leader Bashar al-Assad, Youssef was responsible for security operations in southern Damascus during the Syrian uprising. He has been accused of numerous crimes against civilians.

In 2022, a leaked video appeared to show evidence of crimes committed by Syrian forces. Youssef, whose face appeared clearly in the footage, was seen shooting civilians who had been detained and blindfolded, with their hands bound.

A military recruit filmed the incident and leaked the video, date-stamped on the day of the Tadamon massacre – April 16, 2013, after fleeing war-torn Syria.

The release of the video footage triggered an outcry, with some families recognising their relatives being killed in the video.

Youssef went into hiding after the fall of Assad in December 2024.

The Tadamon district was a battlefront between Syrian government forces and opposition forces at that time.

Youssef was trained in military intelligence and rose through the ranks to become an investigator.

Accountability following the massacre

In August 2023, German police arrested Ahmed al-Harmouni, a friend of Youssef, also accused of taking part in the Tadamon massacre, after a three-year investigation in cooperation with the Syrian Centre for Justice and Accountability.

Syria’s new government began a security campaign to pursue figures of the former leadership, while citizens launched a public fundraising campaign to offer a reward to anyone who could find those accused of atrocities, primarily Youssef.

Since then, several suspects of the Tadamon tragedy have been arrested and confessed to the killings.

Human Rights Watch visited the southern Damascus neighbourhood in December 2024, where it found human remains that showed signs consistent with execution and called on the transitional authorities to preserve evidence of war crimes.