tensions

IT nurtured some of our broadcasting greats, from Terry Wogan and Tony Blackburn to Chris Moyles and Zoe Ball.

But now staff at BBC Radio 1 fear the station is crumbling beyond recognition.

This week it was announced that long-standing duo Melvin Odoom and Rickie Haywood-Williams will be departing, while DJs Dean McCullough, Nat O’Leary, James Cusack and Swarzy are also on their way out.

Meanwhile, social media stars GK Barry and Charley Marlowe are set to come in as part of a shake-up.

And lesser-known DJs Mylo & Rosie, as well as Emil Franchi, have landed bigger slots.

Insiders say tensions at the flagship youth station reached fever pitch after the comings and goings were announced on Wednesday, with some staffers claiming they only learnt of the changes when the BBC press office made them public.

“To say the handling of this feels like an absolute mess is an understatement,” one told The Sun.

“Some producers had no idea their talent was leaving. One of Melvin and Rickie’s team wasn’t told about the changes until they saw the email.

“They’d been on the station for seven years. So to see them suddenly off out of the back door was really upsetting. The atmosphere was chaotic and some staff were absolutely shellshocked.”

The changes have been met with hostility from listeners, many of whom took to social media to vent their anger.

One Radio 1 listener wrote on Instagram: “This is so disappointing.

“Both GK Barry and Charley Marlowe are incredibly talented at their craft but it’s so discouraging to see BBC Radio 1 providing these opportunities to host to already established presenters when there are so many people looking to break into the industry.”

Another was not happy with “clearing out DJs for social media ‘stars’,” while a third added: “Why is R1 on a self-sabotage mission by bringing in a load of social media ‘stars’ and godawful local radio DJs?”

An emotional staffer told us that a meeting, which was said to have included long-standing radio producers, was called to discuss the changes after the announcements were made.

They explained: “There is a weekly meeting on a Wednesday at Radio 1, but this week they called a second meeting where people were invited to speak up.

“A fair few people put their hands up to raise concerns.

“The main bone of contention was why Radio 1 appeared keen to say goodbye to established broadcasters and replace them with YouTubers and TikTokers.

“Much of the blame is being laid at the door of the big boss, Aled Haydn Jones. Some of the staff are so unhappy.”

Aled was a DJ on Radio 1 between 2009 and 2015 before he succeeded Ben Cooper as head of the station in 2020.

Insiders say he prides himself on championing new talent and is behind the raft of influencers joining the line-up, including GK, who came fifth in 2024’s I’m A Celeb.

Her arrival, alongside social media sensation Charley, has allegedly more than ruffled feathers.

“These influencers are lovely but they’re not radio geeks like most of the DJs who work at Radio 1,” one staffer explained.

“Working at Radio 1 is the dream job for any budding broadcaster who has put in the hard yards on student radio or local stations.

“It was held up as the pinnacle by so many people.

“But now it’s being eroded by this desperation to bring in ‘new’ talent that they think will bring in a new audience.

“The producers who work on these shows are so upset at what is happening.

“A couple have already decided to walk away. And it won’t be long before others start jumping ship.”

Another staffer added: “Aled seems to think social media is going to save Radio 1, but where’s the proof?

“Audience figures are down and they think the way to save it is by plugging the gap with people who are popular on the internet.

“That’s all well and good, but will their millions of followers start tuning into Radio 1 just to listen to them? It’s doubtful.

“Their fans already have access to their content at the touch of a button and that is a daily habit.

“Making them carve out a new habit of listening to them every day is incredibly difficult.”

Launched in 1967, Radio 1 was born out of the need to compete with the rise of pirate radio stations which had become hugely popular.

Legendary broadcaster Tony Blackburn was the first DJ to broadcast on the new station.

It grew into a juggernaut of the airwaves, commanding audiences of ten million for some shows and making huge stars out of presenters including Chris Evans, Simon Mayo and Sara Cox.

But as listening habits change, audiences across the BBC and commercial stations are decreasing.

Figures at the start of this year confirmed that the weekly audience reach across BBC radio stations is in steady decline.

In the final quarter of 2025, Radio 1’s weekly audience reach dropped by six per cent compared to the same period last year.

But bosses were keen to stress that their target market of 15 to 29-year-olds was consuming Radio 1 in different ways.

In that same final quarter, the station boasted more than 329million views on social media and Radio 1’s YouTube videos have had more than 6.1billion views.

But one BBC employee said: “It’s not just young people that listen to Radio 1.

“There is a decent percentage of listeners that are older.

“They have stuck with the station since they were young and they tune in to listen to DJs they have known and loved for years. Putting some influencers in their places, regardless of how well known they are, won’t translate as well.

“Many people working at Radio 1 think Aled is making a mistake if he carries on in this vein.”

The remaining jewel in the Radio 1 crown is Breakfast Show host Greg James.

Greg, 40, took over the coveted role from Nick Grimshaw in 2018 and pulls in more than four million listeners, making it the No1 Breakfast Show for young people across the country. But a well-placed insider revealed that BBC Radio 2 — the nation’s biggest station — was keen to bring him on board.

“Greg had meetings with Radio 2 and they were testing the water in a bid to poach him,” a source claimed.

“When Scott Mills left Radio 2’s Breakfast Show and Sara Cox took over, there was a lot of talk at Broadcasting House about whether Greg would make the move. But he’s definitely staying on board at Radio 1 for now.

“To lose Greg would have been horrendous because he is such a figurehead at Radio 1.

“Thankfully, he’s remaining in place.”

The Sun understands some staffers are now considering jumping ship with the departing talent.

And the blame is being solely laid at Aled’s door.

“Aled has been massacring the schedules and the method isn’t working,” one staffer said.

“The feeling is that he is ruining Radio 1 and it is heartbreaking.

“It feels like the craft of making radio isn’t being respected and the people behind the scenes who craft this magic for the audience aren’t being treated with the respect they deserve. Radio 1 used to be the best station to work at, with the most talented pool of people and the most incredible presenters.

“It’s like a shadow of what it once was.”

A BBC spokesman said: “Radio 1 is proud to be the number one station for young audiences and has a strong track record of supporting and developing young and emerging radio talent, with a huge majority of presenters having come through the station’s own initiatives and opportunities.

“Alongside Radio 1’s commitment to nurturing new voices, there will always be a home for DJs with specialist music knowledge and talent from a diverse range of backgrounds who we know resonate with our young audience.”

Seoul shares again plummeted Thursday, led by steep losses in technology heavyweights, as escalating tensions in the Middle East weighed on investor sentiment. The Korean won rose against the U.S. dollar.

After opening 4.45 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended its losses to close at 6,820.60, down 463.81 points, or 6.37 percent from the previous session, after falling as low as 6,730.87.

The Korea Exchange, the country’s bourse operator, activated a sell-side sidecar on the KOSPI for 20 minutes at around 9:10 a.m. after the benchmark index fell more than 5 percent.

The decline came after the index surged 6.24 percent Wednesday as softer-than-expected U.S. inflation data eased concerns about near-term Federal Reserve interest rate hikes.

Adding to investor jitters, the Bank of Korea (BOK) raised its benchmark interest rate by a quarter percentage point to 2.75 percent earlier in the day, the first increase in 3 1/2 years, to curb inflation amid escalating tensions in the Middle East.

The U.S. launched fresh strikes on Iran, escalating tensions in the Middle East and renewing concerns over potential disruptions to regional energy supplies.

“Profit-taking followed sharp gains in technology stocks a session earlier, while persistent concerns over the semiconductor industry kept the index under pressure,” Kang Jin-hyeok, an analyst at Shinhan Securities Co., said.

Institutional and foreign investors sold a net 2.37 trillion won (US$1.6 billion) and 1.38 trillion won worth of shares, respectively, while retail investors bought a net 3.66 trillion won.

Technology stocks led the decline.

Market bellwether Samsung Electronics plunged 8.77 percent to 255,000 won, while rival chipmaker SK hynix tumbled 11.53 percent to 1,842,000 won.

Top automaker Hyundai Motor fell 2.07 percent to 425,000 won, while steelmaker POSCO Holdings slipped 0.95 percent to 311,500 won.

Among gainers, shipbuilder Hanwha Ocean rose 5.73 percent to 86,700 won, while leading beverage firm Hitejinro gained 2.47 percent to 14,910 won.

The Korean won was quoted at 1,480.4 won against the U.S. dollar at 3:30 p.m., up from 1,484.7 won the previous session.

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Seoul shares plunged 9 percent Monday as investors dumped technology stocks for profit-taking amid renewed tensions in the Middle East. The Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 669.01 points, or 8.95 percent, to close at 6,806.93 after falling as low as 6,783.43.

Trade volume was moderate at 469.86 million shares worth 39.8 trillion won (US$26.5 billion), with decliners far outnumbering gainers 713 to 179.

Institutions and foreigners sold a net 2.22 trillion won and 1.7 trillion won worth of shares, respectively, while individuals bought a net 3.9 trillion won.

After opening 0.85 percent lower, the KOSPI extended its losses, triggering a circuit breaker that temporarily halted trading of KOSPI-listed stocks for 20 minutes. It marked the seventh activation of the measure this year.

On Friday, U.S. stocks advanced, buoyed by South Korean chipmaker SK hynix’s multibillion-dollar U.S. share offering. The Dow Jones Industrial Average gained 0.29 percent, while the tech-heavy Nasdaq Composite also rose 0.29 percent.

SK hynix’s American depositary receipts (ADRs) on the Nasdaq closed at US$168 each, well above the offering price of $149.

Despite the successful U.S. market debut, SK hynix shares tumbled as investors took profits and shifted to the company’s ADRs, analysts said.

Investor sentiment was also dampened by heightened uncertainty in the Middle East after the United States and Iran exchanged fresh strikes over the status of the Strait of Hormuz.

“The country’s newly introduced single-stock leveraged exchange-traded funds linked to Samsung Electronics and SK hynix continued to fuel volatility in the stock market,” Samsung Securities said in a research note.

Tech stocks led the decline.

Market bellwether Samsung Electronics plunged 10.7 percent to 254,500 won, while its chipmaking rival SK hynix plummeted 15.37 percent to 1,845,000 won.

Top carmaker Hyundai Motor fell 2.95 percent to 444,000 won, and defense giant Hanwha Aerospace declined 3.21 percent to 936,000 won.

Among gainers, leading battery maker LG Energy Solution rose 0.77 percent, and leading refiner SK Innovation climbed 7.09 percent to 110,200 won.

The Korean won was quoted at 1,503.4 won against the U.S. dollar at 3:30 p.m., down 2 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 4.1 basis points to 3.809 percent, and the return on the benchmark five-year government bonds climbed 3.3 basis points at 4.041 percent.

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Published on 13/07/2026 – 6:56 GMT+2•Updated
6:59

The price of Brent crude, the international benchmark, gained 3.9% to $78.96 per barrel, while the US benchmark crude oil price rose 4% to $74.26 per barrel.

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Prices for both types of crude oil had recently slipped back to the levels seen before the war with Iran began, after the two sides reached an interim agreement to end the conflict and ships resumed transporting oil through the Strait of Hormuz.

However, the United States launched several waves of strikes on Iran early on Monday morning following an Iranian attack on a container ship in the Strait of Hormuz that set the vessel ablaze and left one crew member missing over the weekend. Iran retaliated by targeting countries across the Middle East.

US stock futures fell, with the contract for the S&P 500 down 0.4% and that for the Dow Jones Industrial Average 0.3% lower. Nasdaq Composite futures lost 1%.

In Asian trading, Tokyo’s Nikkei 225 index lost 1.1% to 67,786.86, while in Seoul, the Kospi declined 5.6% to 7,060.69.

Shares in South Korean memory chipmaker SK Hynix, which soared 13% on their Wall Street debut on Friday, slumped 10.6% in Seoul. Its bigger rival, Samsung Electronics, fell 6.7%.

Elsewhere in Asia, Hong Kong’s Hang Seng edged 0.1% higher to 24,202.41, and the Shanghai Composite index shed 1.2% to 3,947.34.

In Australia, the S&P/ASX 200 declined 0.3% to 8,777.00.

US stocks ticked higher on Friday after investors showed sustained appetite for winners of the artificial intelligence (AI) boom. The S&P 500 rose 0.4% and the Dow Jones Industrial Average added 0.3%. The Nasdaq Composite climbed 0.3%.

SK Hynix’s shares jumped after trading began at midday after it raised roughly $26.5 billion by selling American depositary shares at a price of $149 each.

SK Hynix’s stock in Seoul had already surged more than 600% over the past year thanks to enthusiasm for AI. The boom has translated into real profits, driven by soaring demand for computer memory. But it has also raised concerns that AI stock prices have climbed too high and that the world’s spending on chips and data centres will not generate enough productivity and profit growth to justify the investment.

That has led to sharp swings in AI stocks, which have become some of Wall Street’s most influential because of their enormous market values.

Nvidia was the single biggest force lifting the S&P 500 on Friday, rising 4%.

Beyond the uncertainty surrounding AI, investors are turning their attention to the upcoming corporate earnings season.

Companies across industries will need to deliver strong profit growth to justify their elevated share prices, which remain close to record highs. This week will bring earnings reports from many of the biggest US banks, including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo, with several reporting on Tuesday alone.

Concerns about how the continued fighting with Iran will affect the global flow of crude oil are clouding the outlook for both energy costs and overall inflation.

High bond yields have been weighing on financial markets worldwide because more expensive oil and persistently high inflation could prompt the Federal Reserve and other central banks to raise interest rates.

Higher interest rates can help keep inflation under control, but they also slow economic growth and weigh on the prices of all kinds of investments.

Additional sources • AP

European shares were little changed on Friday but remained on track for their first weekly decline in five weeks as weakness in technology stocks and renewed tensions between the United States and Iran dampened investor sentiment.

The pan-European STOXX 600 index edged 0.1% lower to 640.28 points by 0849 GMT, with losses in technology companies offsetting gains in most other sectors.

The benchmark index is poised to end a four-week winning streak after investors reassessed lofty valuations in artificial intelligence-related stocks while monitoring escalating geopolitical risks in the Middle East.

Technology stocks remain under pressure

The technology sector fell 1.3% on Friday as investors continued taking profits following months of strong gains driven by enthusiasm for artificial intelligence.

The sector also remained focused on the closely watched U.S. stock market debut of South Korean memory chip maker SK Hynix after its $26.5 billion share sale.

Among European chip-related stocks:

• Soitec fell 3.3%.
• BE Semiconductor Industries declined 1.6%.
• ASML dropped 2.3%.

“The large swings we’re seeing in technology stocks suggest investors remain under stress amid elevated valuations,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

“Attention is now turning to SK Hynix’s U.S. debut, which could help gauge broader appetite for AI-related stocks and influence sentiment across the sector.”

Iran tensions weigh on market sentiment

Investor caution also reflected renewed uncertainty in the Middle East after Iranian forces targeted U.S. military infrastructure in Gulf states following fresh U.S. strikes on Iran.

The latest escalation further weakened the fragile three-week-old ceasefire and renewed concerns over potential disruptions to shipping through the Strait of Hormuz, one of the world’s most important energy trade routes.

Higher oil prices and possible supply disruptions have raised concerns about inflation, particularly in energy-importing Europe, where markets are closely watching the implications for economic growth and European Central Bank policy.

Telecoms and travel outperform

Despite weakness in technology, most sectors in the STOXX 600 traded higher.

Telecommunications stocks led gains, rising 1.4%, after Vodafone surged nearly 11%.

The rally followed an announcement by UAE telecoms group e& that it would sell its stake in Vodafone to the family investment group of French billionaire Xavier Niel.

Travel and leisure stocks gained 0.8%, supported by strength in airline shares.

British budget carrier EasyJet jumped 14% after agreeing in principle to a £5.7 billion ($7.65 billion) takeover approach from Apollo Global.

Steel stocks rally on broker upgrades

European steelmakers outperformed after J.P. Morgan adopted a more positive view of the sector.

The investment bank upgraded ArcelorMittal to “neutral” from “underweight,” lifting its shares 5%.

Austria’s Voestalpine climbed 6%, while Germany’s Salzgitter surged 10.3% after both companies received double upgrades to “overweight.”

Other movers

Wealth manager St. James’s Place was among the session’s biggest losers, falling 8.5% after reports that Sovereign Wealth, one of its largest partner firms, was in talks to join a Swedish wealth management group.

Future outlook

Markets are expected to remain focused on two key drivers in the coming days: whether the renewed U.S.-Iran hostilities escalate further and whether SK Hynix’s U.S. debut reinforces or weakens investor confidence in the AI-driven technology rally.

With geopolitical risks pushing oil prices higher and technology valuations facing increased scrutiny, analysts expect volatility across European equities to remain elevated in the near term.

With information from Reuters.

WASHINGTON — The leaders of Europe are bracing for another turbulent summit with President Trump this week as NATO members gather for their annual meeting in the Turkish capital.

European diplomats view Trump’s decision to attend as a positive sign of his continued commitment to the alliance. But the president’s grievances with several European governments over their refusal to join the U.S. war with Iran have cast a pall over a summit already strained by Trump’s wavering support for the continent.

The secretary-general of the transatlantic alliance, Mark Rutte, told reporters on Monday that Trump had aired his resentments in a recent phone call. But Rutte countered with a mix of flattery and countervailing facts that has thus far kept Trump engaged.

While Trump has accused European leaders of denying U.S. forces access to allied bases for takeoffs and refueling during the war, Rutte noted that about 5,000 sorties supporting Operation Epic Fury launched from European airfields. And last Friday, France and Britain committed to a joint military mission with Oman to support freedom of navigation in the Strait of Hormuz — “an extremely important development,” Rutte said.

At last year’s summit, held in The Hague, all NATO member states — with the exception of Spain — agreed to spend 5% of their GDP on defense by 2035, marking a significant increase in historic spending goals for modern Europe. The pledge is divided into two categories, with 3.5% of spending allocated to core military requirements, and the rest committed to a broad set of security-related investments.

Trump’s tough love on the alliance “is, I think, bringing NATO closer together,” the secretary general told reporters.

“You could argue that he is the first president of the U.S. since Eisenhower who was able to come to this situation where the Europeans and the Canadians will spend the same as the Americans” on security, Rutte said. “This equalization was a wish for 50, 60 years, and now it’s happening — I think in large part due to his leadership.”

NATO Secretary-General Mark Rutte speaks to reporters Monday ahead of the NATO summit in Ankara, Turkey.

(Hussein Malla / Associated Press)

In a video message posted on social media Monday, Trump’s ambassador to NATO, Matthew Whitaker, said the summit this week would serve as a “report card” to determine whether countries were beginning to fulfill their commitments from last year.

He offered a note of optimism and suggested the president’s goal is to enhance, rather than undermine, the alliance.

“The United States will be here, but we also need our allies to be here. We cannot do it alone, and the American taxpayer should no longer bear the burden,” Whitaker said.

A White House schedule for Trump’s trip lists bilateral meetings with Rutte and the leaders of Turkey, Syria and Ukraine, in between alliance-wide meals and conferences.

Ukraine will remain at the top of the agenda, Trump told reporters Monday, expressing hope that the war could soon come to an end after four brutal years of fighting.

Russia’s invasion of Ukraine has caused the greatest loss of life in Europe since World War II, resulting in more than 1 million casualties, including an estimated 600,000 dead. Since Russian President Vladimir Putin launched his full-scale invasion in 2022, following his covert invasions of Ukraine’s Crimean peninsula and eastern regions in 2014, Russian forces have captured roughly 12% of Ukraine’s territory.

The war has settled into a deadly stalemate since a 2023 Ukrainian counteroffensive failed to break Russian defensive lines. While Russian forces have occasionally advanced, they have only managed to hold marginal gains along the front, at tremendous cost.

In recent weeks, however, expanded Ukrainian drone and missile capabilities have shifted the dynamic, striking military production sites deep inside Russia and targets near Moscow, bringing the war more directly into the Russian public consciousness and raising questions in the Russian capital whether the war effort is sustainable.

Ukraine’s boldness has impressed the Trump administration, Alexander Stubb, the president of Finland, told the Financial Times this week.

“I think he does feel pressure,” Trump said of Putin, addressing reporters in the Oval Office before departing for Turkey on Monday.

The president referred to an ongoing U.S. effort to end the war, a goal that has remained elusive for Trump since returning to office.

“I think we’re getting much closer than people realize,” he said. “President Putin wants it to end, I will tell you that. Very strongly. Had a good call. And President Zelensky actually wants it to end now.”

“We’re going to be going to NATO, and we’re going to be talking about it,” Trump added. “And I think we’re going to get it ended. It’s been terrible.”

In the city of Nabatieh, ambulance teams, civil defense units, scouts, municipal workers, and residents joined forces in a large cleanup campaign to remove rubble and reopen streets following extensive destruction caused by the Israeli war on Lebanon.

The latest data from the Statistical Centre of Iran (SCI) shows the Consumer Price Index (CPI) for the period 22 May–21 June 2026 was 88.6% higher than in the corresponding period a year earlier. In practical terms, a household that spent 100 monetary units on the same basket of goods and services a year ago would now need to spend approximately 189 monetary units to purchase that basket.

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Economists attribute the sharp increase in prices to a combination of long-standing structural challenges and more recent pressures. These include weak economic management, persistent fiscal and monetary imbalances, the continued impact of international sanctions, subdued growth prospects, heightened uncertainty in the business environment and widening fiscal deficits. More recently, military conflict and heightened regional tensions have placed further strain on Iran’s economy by increasing investment risks, disrupting economic activity and adding pressure on public finances.

Statistical Centre versus Central Bank figures

Alongside the figures published by the Statistical Centre of Iran (SCI), the Central Bank of Iran (CBI) has reported different inflation estimates. According to the CBI, year-on-year inflation reached 83.1% at the end of the period 22 May–21 June 2026, while the annual inflation rate stood at 57.7%.

These estimates differ from those published by the SCI, which reported an annual inflation rate of 62.0% and a year-on-year inflation rate of 88.6% for the same period.

The gap between the two sets of estimates amounts to 4.3 percentage points for annual inflation and 5.5 percentage points for year-on-year inflation. Such discrepancies are not unusual in Iran and have recurred over recent years.

The differences largely reflect variations in methodology, including the composition of household consumption baskets, the weighting assigned to individual goods and services, and data collection and sampling techniques. Although both institutions seek to measure changes in the general price level, methodological differences can lead to materially different inflation estimates.

Despite these statistical differences, both sets of figures point to the same underlying trend: Iran is experiencing one of its most severe episodes of inflation in decades. Persistently rapid price growth has become a structural feature of the economy rather than a temporary shock.

Inflation accelerates from 52% to nearly 90%

Recent data indicate that inflationary pressures have continued to intensify rather than ease. Year-on-year inflation increased from 52.6% in December 2025 to approximately 68% in February 2026, before rising further to 88.6% for the period 22 May–21 June 2026.

This trajectory suggests that inflationary pressures have become increasingly entrenched, reflecting deeper structural imbalances rather than a temporary or purely monetary phenomenon.

International forecasts also point to a challenging outlook. The International Monetary Fund (IMF) projects that Iran’s annual inflation rate will average around 68.9% in 2026, placing the country among the highest-inflation economies in the world. At the same time, the IMF forecasts a contraction in real GDP of around 6.1%, indicating continued pressure on economic activity.

Short-term price dynamics are also noteworthy. The Consumer Price Index increased by 5.9% over a single month, from 22 April–21 May 2026 to 22 May–21 June 2026 (the periods corresponding to the Iranian months of Ordibehesht and Khordad, respectively).

A monthly increase of this magnitude illustrates the speed at which prices are rising, making it increasingly difficult for households to maintain purchasing power and plan their finances.

Exchange-rate depreciation and inflation

Iran’s inflation surge – one of the most severe experienced by the country since the Second World War – has been closely associated with the sharp depreciation of the rial. Inflation has eroded the currency’s purchasing power, while successive declines in the rial have, in turn, fuelled further inflation by increasing the cost of imports and raising inflation expectations.

At the beginning of the year, the US dollar traded at around 1.35 million rials on Tehran’s open market. Following the start of US and Israeli air strikes against Iran on 28 February, the exchange rate rose to approximately 1.72 million rials per US dollar.

During the conflict, the exchange rate temporarily strengthened to around 1.46 million rials per US dollar as economic and commercial activity slowed, reducing demand for foreign currency. However, after Donald Trump threatened further US air strikes against critical Iranian infrastructure on 7 April, the rial came under renewed pressure, with the exchange rate weakening to around 1.63 million rials per US dollar.

Following the announcement of a ceasefire, the exchange rate recovered to approximately 1.525 million rials per US dollar. However, as economic activity resumed and Iranian officials estimated war-related damage at around US$300 billion, the rial weakened sharply again, with the exchange rate reaching a record 1.9 million rials per US dollar.

The subsequent signing of a memorandum of understanding between Tehran and Washington led to a temporary appreciation of the rial, bringing the exchange rate back to around 1.53 million rials per US dollar. Renewed tensions between Iran and the United States, however, pushed the exchange rate higher once again, approaching 1.7 million rials per US dollar.

These developments illustrate the extent to which exchange-rate movements have become a key transmission channel for inflation in Iran. Fluctuations in the rial affect not only the domestic cost of imported goods and production inputs but also the inflation expectations of households and businesses, reinforcing upward pressure on prices.

An uneven burden

Inflation has not affected all segments of society equally. Official data show that lower-income households have experienced a greater erosion of purchasing power than higher-income groups.

Year-on-year inflation reached 108.1% in rural areas, compared with 85.2% in urban areas. This disparity is particularly significant because lower-income households typically spend a larger share of their income on essential goods and services, especially food, leaving them more exposed to rising prices.

From a distributional perspective, inflation acts as an implicit tax, disproportionately reducing the real incomes of households with the least capacity to save, invest or protect themselves against rising prices.

Food at the centre of the cost-of-living crisis

The steepest price increases have been recorded in categories most closely associated with everyday household spending. Official statistics indicate that food prices have more than doubled compared with the same period a year earlier.

Year-on-year inflation reached 173.8% for tobacco, around 178% for meat, poultry and related products, approximately 152% for milk, cheese and eggs, and around 139% for bread and cereals.

Non-food categories have also recorded substantial price increases. Prices for furniture and household equipment rose by more than 111%, while transport costs increased by over 103%.

These figures suggest that the inflationary shock extends well beyond food prices. Alongside the rising cost of everyday essentials, households are also facing substantially higher costs for household goods and transport, further eroding purchasing power and placing increasing pressure on household budgets.

Wages fall behind the cost of living

One of the clearest consequences of sustained inflation is the widening gap between wages and the cost of meeting basic living expenses.

According to the Iranian Labour News Agency (ILNA), the official minimum monthly wage for the current year was set at 166.255 million rials (approximately €85), while representatives at a meeting of the Supreme Labour Council on 13 March 2026 estimated that a minimum household living basket would cost around 450 million rials (approximately €225) per month.

On this basis, the official minimum wage covers only around 37% of the estimated cost of a basic living basket, leaving a shortfall of approximately 63%.

The figures illustrate how rapid inflation has eroded real wages. Although nominal wages have increased over time, they have failed to keep pace with the rising cost of essential goods and services, placing increasing pressure on household living standards.

More broadly, Iran’s inflation challenge extends beyond rising prices alone. A combination of persistent inflation, currency depreciation and weakening purchasing power has created a self-reinforcing cycle that continues to undermine household finances and economic stability.

Published on
11/06/2026 – 17:25 GMT+2

German MEP Bernd Lange, chair of the European Parliament’s trade committee, has warned that the long-running Airbus-Boeing dispute could jeopardise the EU-US trade agreement struck last summer if transatlantic tensions flare again in the coming weeks.

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The implementation of the Turnberry Agreement, clinched in July 2025 by US President Donald Trump and European Commission President Ursula von der Leyen in Scotland, is entering its final stretch, with EU lawmakers expected to approve it in a vote next Tuesday.

However, the five-year truce between US aerospace giant Boeing and its European rival Airbus over mutual subsidy allegations expires on 11 July, with the Trump administration and the European Commission yet to agree to extend it.

“Will this lead to another escalation? Nobody knows,” Lange, the Parliament’s lead negotiator on the EU-US deal, told journalists on Thursday during a meeting with fellow Socialist lawmakers.

The MEP is concerned that a renewed aerospace dispute could further strain transatlantic trade ties after a year of intense tensions.

“I hope this will not blow up,” Lange told Euronews.

Turnberry deal remains fragile

The battle between Boeing and Airbus dates back more than two decades. The US first brought a case before the World Trade Organization arguing that the EU was illegally subsidising Airbus. Brussels responded with its own complaint, accusing Washington of unlawfully supporting Boeing.

The dispute eventually spiralled into a tariff war, with both sides imposing punitive duties on products ranging from wine and spirits to cheese and tobacco, affecting $11.5 billion worth of trade.

A truce was reached in 2021 under the Biden administration, taking effect on 11 July that year and suspending retaliatory measures for five years. However no extension has been announced since.

“Discussions with the US are ongoing to ensure stability and certainty and to continue the suspension of countermeasures on both sides,” Commission deputy chief spokesperson Olof Gill told Euronews.

In its Trade Policy Agenda 2026, the Trump administration said the US Trade Representative would decide in July “whether to take action in the Section 301 investigation involving the enforcement of US rights in the World Trade Organization disputes involving large civil aircraft”.

The US is able to impose tariffs on trading partners under section 301 of the Trade Act of 1974.

Last week, Washington threatened to impose 10 percent tariffs on EU goods over forced labour following a Section 301 investigation. If implemented, those duties would be added to existing most-favoured-nation tariffs, pushing average US tariffs on EU goods above the 15 percent ceiling agreed under the Turnberry deal.

Under the agreement, which EU lawmakers are expected to adopt next week, the EU committed on its side to eliminate its duties on US goods. However, lawmakers fought hard to include safeguards to protect the deal from future US tariff threats and ensure the 15 percent cap is respected.

The agreement has always appeared fragile. Trump has repeatedly used tariffs as leverage in non-trade disputes, from his push for the acquisition of Greenland earlier this year to his more recent threat to impose 25 percent tariffs on EU cars after German Chancellor Friedrich Merz criticised the war with Iran.

Should the Airbus-Boeing dispute reignite, it could give the US president another pretext to unravel the 2025 agreement.

South Korean stocks plummeted more than 4 percent Wednesday amid escalating tensions between the United States and Iran and a tech slump fueled by concerns over the valuation of stocks related to artificial intelligence (AI). The local currency was trading lower against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 366.11 points, or 4.52 percent, to close at 7,730.82, almost eclipsing most of the over 8 percent surge from the previous day.

At one point, the index fell as low as 7,541.11.

Due to the sharp fall, the Korea Exchange had activated a sell-side sidecar for the index at 1:16 p.m., halting program trading for five minutes.

Trade volume was moderate at 457.5 million shares worth 39 trillion won (US$25.6 billion), with losers outnumbering winners 547 to 343.

Foreigners continued their sell-off for the 23rd consecutive session, dumping a net 2.77 trillion won, while retail investors and institutions purchased local shares worth 4.86 trillion won. Institutions sold 2.27 trillion won.

Market analysts said the KOSPI lost ground as tensions resurfaced in the Middle East after the U.S. struck Iran in response to the shooting down of an American Apache helicopter in the Strait of Hormuz and then Tehran hit back.

The risk-on appetite was also sapped by an overnight tech slide on Wall Street caused by concerns over the valuation of the AI stocks on news that Crusoe Energy Systems, a data center developer, suspended one of its projects upon the request of an unidentified big tech customer.

The tech-heavy Nasdaq composite closed 0.97 percent lower, and the S&P 500 dropped 0.26 percent, while the Dow Jones Industrial Average rose 0.17 percent.

Major tech shares led the market decline, with Broadcom losing 1.12 percent, Apple sliding 3.64 percent, Micron falling 1.4 percent and Nvidia down 0.2 percent.

Investors’ eyes are now on the upcoming release of the U.S. Consumer Price Index (CPI), which could give further clues on the U.S. Federal Reserve’s monetary policy amid bets on a hawkish pivot and the initial public offering of SpaceX later this week.

“The South Korean stock market was weighed down as risk aversion sentiment strengthened ahead of the U.S. CPI and Oracle’s earnings release, once triggering a sell-side sidecar,” Lee Kyoung-min, an analyst at Daishin Securities, said.

Lee said a hot inflation report could further contract the market sentiment, raising concerns over a possible U.S. rate hike.

In Seoul, market top-cap Samsung Electronics slid 6.06 percent to 302,500 won, while its chipmaking rival SK hynix plunged 7.54 percent to 2.05 million won.

AI investment firm SK Square shed 6.78 percent to 1.18 million won, and Samsung Electro-Mechanics shot down 8.38 percent to 1.8 million won.

Samsung Life Insurance dipped 6.36 percent to 368,000 won, and Samsung C&T plummeted 5.01 percent to 407,500 won.

Auto shares were also weak, with Hyundai Motor down 5.79 percent to 602,000 won, and its sister Kia losing 2.8 percent to 159,700 won. Hyundai Mobis dropped 4.2 percent to 570,000 won.

Internet portal operator Naver, which had recently rallied on news on its partnership with Nvidia, nosedived 11.67 percent to 227,000 won. Home appliances maker LG Electronics shot down 9.68 percent to 224,000 won.

Major shipbuilder HD Hyundai Heavy was among the few gainers, jumping 4.74 percent to 641,000 won.

Defense giant Hanwha Aerospace also climbed 1.48 percent to 1.03 million won.

The Korean won was quoted at 1,524.2 won against the U.S. dollar at 3:30 p.m., down 12.1 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys added 2.5 basis points to 3.881 percent, and the return on the benchmark five-year government bonds dropped 3.2 basis points to 4.070 percent.

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It’s called the Joint Awami Action Committee, and it’s being accused of fuelling protests in Pakistan-administered Kashmir.

The group has been demonstrating against a rule that sets aside legislative seats for refugees from India-administered Kashmir who live in Pakistan. They say it gives them disproportionate influence in the divided region.

But the government says any change would require constitutional reform.

The issue has long been a subject of political debate in Pakistan-administered Kashmir. But how will its government deal with tensions rising once again?

Presenter: Imran Khan

Guests:
Maria Iqbal Tarana – Senior leader of Pakistan Muslim League-Nawaz

Sahar Khan – Nonresident fellow at the Institute for Global Affairs

Imtiaz Gul – Executive director at the Center for Research and Security Studies

EXPLAINER

Tensions have escalated between Iran and Israel while ongoing diplomatic efforts have failed to yield a lasting peace deal.

Iran and Israel were on Monday locked in tit-for-tat missile attacks, as the fragile ceasefire that has held in place since April 8 appeared closer to collapse than at any point in the past seven weeks.

These escalating hostilities between Iran and Israel come as the United States-Israel war on Iran enters its 101st day on Monday.

Here is what is happening:

In Iran

• Explosions heard in Iran: Iran’s IRNA news agency reported that at least “two powerful explosions” were heard in Tehran and at least three in the city of Isfahan. The broadcaster also reported that explosions were heard in Tabriz. The Israeli military had said it “attacked military targets” in western and central Iran.
• Power plant in Mahshahr attacked: A security officer in the southwestern Khuzestan governorate told the Fars news agency that Israeli forces have attacked the Karun Petrochemical Company in the city of Mahshahr. The Israeli army confirmed striking the petrochemical plant. The Mahshahr Petrochemical Special Economic Zone announced that its workers have evacuated the site following the Israeli strike.
• Iran denies attacking base in Saudi Arabia: Responding to reports of an explosion at the Al-Kharj airbase in Saudi Arabia, Iran’s IRIB broadcaster cited a military official as saying that “Iran has not fired any shots.”
• Red Crescent on standby: The Iranian Red Crescent says it is standing by to respond to any fallout from Israel’s attacks across the country this morning.

In Israel

• Security cabinet meeting: Israeli Prime Minister Benjamin Netanyahu will convene a security cabinet meeting at 11am local time (08:00 GMT) amid escalating hostilities with Iran, according to multiple Israeli media reports.
• The Israeli military issued a series of alerts starting Sunday over waves of missiles launched from Iran towards Israeli territory.
• Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Monday that they launched attacks against Israel’s Nevatim and Tel Nof airbases as a response to attacks on radar sites within Iran, the Fars news agency reported.
• Israel’s Channel 12 broadcaster and Ynet News said a missile fired from Yemen was intercepted.

In the US

• The US State Department issued a security alert for citizens in Jordan over reports of projectiles in the country’s airspace – presumably missiles fired by Israel towards Iran, or by Iran towards Israel.
• Democratic Senator Chris Murphy said Israel’s latest attack on Iran “compounds” the “humiliation” for US President Donald Trump, as it comes after the US president reportedly told Netanyahu not to retaliate to Iran’s missiles fired at northern Israel.

In Lebanon

• Explosions were heard in the Lebanese capital Beirut early on Monday, but these were likely rocket interceptions, Al Jazeera’s Zeina Khodr reported from Beirut.
• On Sunday, Israel had hit the suburbs of Beirut, in attacks that Iran described as crossing a red line in terms of violating a ceasefire between Lebanon and Israel. Iran then said its decision to hit northern Israel was in response to these attacks near Beirut.

War diplomacy

• Israel defends attacks on Iran: The Israeli ambassador to the US, Yechiel Leiter, defended the attacks on Iran, saying “no self-respecting country” would tolerate Iran’s missile launches against Israel.
• Canada expresses concern: Canada’s Foreign Ministry has expressed concern about the resumption of conflict between Iran and Israel, saying it jeopardises the ongoing negotiations and “the prospects for peace”.
• Saudi-Qatari foreign ministers speak: Saudi Foreign Minister Prince Faisal bin Farhan Al Saud spoke by phone with his Qatari counterpart, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, the Saudi Foreign Ministry said.
• Qatari-Iranian foreign ministers speak: The Qatari foreign minister, who is also the country’s prime minister, spoke by phone with Iranian Foreign Minister Abbas Araghchi about mediation efforts between Iran and the US, as well as the latest developments in Lebanon, according to a Qatari statement.

June 6 (UPI) — Peru will choose its next president Sunday in a runoff election between Keiko Fujimori, leader of the right-wing Popular Force party, and Roberto Sánchez, candidate of the leftist coalition Together for Peru.

Nearly 28 million Peruvians are eligible to vote for what will be the country’s ninth president in just 10 years, a figure that reflects Peru’s deep institutional crisis and political fragmentation.

Recent polls show Sánchez and Fujimori in a statistical tie, meaning the final outcome could depend on undecided voters and the share of blank ballots.

For many observers, the central question is not only who will win the presidency, but whether Peru can break the cycle of political instability that has defined the past decade.

Fujimori’s candidacy once again places Fujimorismo at the center of Peruvian politics. The daughter of former President Alberto Fujimori remains one of the country’s most influential and polarizing political figures. Sunday’s vote marks her fourth consecutive attempt to win the presidency in a runoff election.

Sánchez, meanwhile, is a far less familiar figure outside Peru. His campaign has evolved throughout the race and has sought to appeal to supporters of former President Pedro Castillo, who was removed from office in 2022 after attempting to dissolve Congress.

Fujimori maintains a strong advantage in Lima, while Sánchez dominates much of the country’s interior, particularly in the Andean regions.

The election is taking place amid growing public frustration with Peru’s political system.

Beyond the traditional divide between Fujimorismo and anti-Fujimorismo that has shaped much of Peru’s politics over the past two decades, several analysts argue that the country’s deeper problem is a broader crisis of political representation.

Luis Lira, a researcher at the International Affairs Observatory at Finis Terrae University in Chile, said Peru has become one of the clearest examples of a “democracy without parties,” where political organizations have lost their ability to channel voter demands and have been replaced by highly personalized leadership.

“The presence of two candidates viewed as strongmen demonstrates the deterioration of political parties,” Lira told UPI.

Raúl La Torre, a Peruvian academic and professor at the University of the Andes in Chile, offered a similar assessment.

According to La Torre, Peru enters the runoff burdened by a representation crisis that has deepened over the past decade. Political parties remain weak, Congress continues to suffer from low public trust and the gap between citizens and political elites continues to widen.

Carlos Escaffi, founder of consulting firm Relaxiona Internacional, said the Fujimorismo versus anti-Fujimorismo divide remains relevant, but is no longer sufficient to explain voting behavior.

Issues such as public security, informal employment, economic opportunity and growing rejection of the traditional political class now play a larger role in shaping voter preferences, he said.

“The demand for order, security and concrete solutions to everyday problems appears to be playing an increasingly important role in voters’ decisions,” Escaffi told UPI.

Analysts also point to Peru’s political structure as a factor behind its persistent instability.

Juan Jiménez, a former prime minister under President Ollanta Humala, said the country has long experienced a contentious relationship between the executive branch and Congress, marked by frequent confrontations and repeated efforts to remove presidents from office.

“In the last 10 years we have had eight presidents. On Sunday we will have the ninth,” Jiménez told UPI.

He attributed part of the crisis to the repeated use of constitutional mechanisms that allow Congress to remove presidents from office, as well as to the country’s fragmented political landscape.

Questions over whether the eventual winner will be widely accepted have become another source of concern.

Polls released in recent days suggest an extremely close race, increasing the likelihood of legal challenges or accusations from the losing side.

Jiménez said the country’s first challenge after Sunday’s vote will be ensuring that all political actors accept the result.

“It is highly foreseeable that there will be a conflict over the outcome,” he said, noting that narrow margins in previous elections have repeatedly fueled allegations of fraud.

The former prime minister also argued that problems during the first round undermined confidence in electoral authorities and could contribute to renewed disputes once the final results are announced.

Escaffi, however, urged caution regarding claims of fraud. He said there is no evidence to support allegations of a systematic effort to alter the popular vote.

“What we have seen is that the fraud narrative has become a political tool used by different sectors to mobilize their supporters or preemptively challenge the results,” he said.

Political analyst and commentator Jorge “Coco” Salazar expressed a similar view, saying either candidate could challenge the outcome if the margin is extremely narrow.

Salazar told UPI that the climate of mistrust generated during the first round has created conditions for electoral disputes to once again dominate the political debate.

Regardless of who wins, analysts agree the next president will face structural challenges that extend far beyond the campaign.

The most pressing task will be restoring governability in a country where political confrontation has become routine.

According to La Torre, that will require building minimum agreements with a fragmented Congress, strengthening weakened institutions and rebuilding public confidence.

Corruption and public security also rank among voters’ top concerns.

Lira said Peruvians increasingly demand greater transparency and accountability from the political class, while rising crime has become one of the country’s most pressing social issues.

Escaffi warned that Peru’s ability to maintain economic stability despite years of political turmoil should not be taken for granted.

Institutions such as the Central Reserve Bank of Peru and the country’s fiscal discipline have helped cushion the effects of repeated political crises, he said, but prolonged uncertainty could eventually affect investment, economic growth and job creation.

Several analysts also believe the restoration of a bicameral legislature could help counter the institutional drift behind the recent instability.

Jiménez said the return of the Senate may make it more difficult to carry out rapid presidential removals and could create greater opportunities for political deliberation.

Even so, few experts are optimistic about a quick resolution to Peru’s political troubles.

“The election offers an opportunity to begin a more stable period, but by itself it does not guarantee that outcome,” La Torre said.

For many observers, the question that will remain after Sunday’s vote is not simply who wins the presidency but whether Peru’s political system can regain the legitimacy and stability it has steadily lost over the past decade.

Global markets are navigating two powerful and competing forces: escalating geopolitical tensions in the Middle East and continued investor enthusiasm for artificial intelligence-related stocks. While concerns over renewed conflict between the United States and Iran have boosted oil prices and supported demand for safe-haven assets, the AI-driven technology rally has continued to push stock markets higher, particularly in Asia.

What Happened

Oil prices rose for a third consecutive session on Wednesday after fresh hostilities emerged in the Gulf region. Brent crude climbed 1% to $94.74 per barrel as hopes for a quick resolution to tensions between Washington and Tehran faded.

The U.S. military reported that Iranian missile attacks targeting Bahrain, Kuwait and other regional locations were either intercepted or failed. The developments came after negotiations aimed at ending the conflict between the United States and Iran stalled despite both sides announcing a tentative agreement last week.

Meanwhile, financial markets showed mixed reactions. U.S. stock futures were largely unchanged, while European futures edged lower. In Asia, however, technology shares continued their strong advance, helping stock indexes in Japan and Taiwan reach record highs.

Why Markets Are Reacting to Middle East Risks

Investors had previously expected the United States and Iran to formalize an agreement that would reduce regional tensions and ease concerns about energy supplies. The lack of progress in negotiations has instead revived fears of a prolonged conflict that could disrupt oil shipments from the Gulf, a critical region for global energy markets.

Higher oil prices typically reflect concerns about potential supply disruptions. The latest military developments prompted traders to unwind some of their earlier bets on a diplomatic breakthrough, contributing to the rise in crude prices.

Currency markets also reflected growing caution. The U.S. dollar strengthened against the Japanese yen, briefly touching the closely watched 160 level before retreating amid concerns that Japanese authorities could intervene to support their currency.

AI Stocks Continue to Defy Market Uncertainty

Despite geopolitical concerns, enthusiasm surrounding artificial intelligence remained a major driver of equity markets. Wall Street indexes posted modest gains on Tuesday, supported by technology shares.

Chipmaker Marvell Technology surged more than 32% after Nvidia chief executive Jensen Huang described the company as a potential trillion-dollar business. Investor optimism surrounding AI also helped propel SoftBank Group above Toyota Motor Corporation as Japan’s most valuable listed company.

The AI boom has continued to attract investment even as broader markets grapple with geopolitical uncertainty and concerns about interest rates.

What Comes Next

Investors are now closely watching upcoming U.S. economic data, including services sector activity, private payroll figures and Friday’s employment report. Strong labor market data could reinforce expectations that the Federal Reserve will keep interest rates higher for longer or even consider further increases.

Bond markets remained relatively stable, while traders adjusted expectations from potential rate cuts earlier in the year to the possibility of additional rate hikes. Markets have also priced in the likelihood of monetary tightening in Europe and Japan.

At the same time, developments in the Middle East remain a key risk factor. Any further escalation between the United States and Iran could push oil prices higher and increase volatility across global financial markets, while continued strength in AI-related stocks may help support broader equity markets despite geopolitical headwinds.

With information from Reuters.

Published on
03/06/2026 – 17:25 GMT+2

The European Commission confirmed to Euronews on Wednesday that EU trade chief Maroš Šefčovič will meet his Chinese counterpart, trade envoy Li Chenggang, on the sidelines of an OECD ministerial meeting in Paris on Thursday.

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The visit comes as EU-China relations remain strained, with Brussels seeking to crack down on Chinese overcapacity and tackle a record-high €359.9 billion trade deficit with Beijing.

After the EU unveiled the so-called Industrial Accelerator Act and the Cybersecurity Act which could exclude Chinese companies from the EU market, China threatened retaliation, fuelling fears of a trade war between the two trading partners.

Tensions escalated further last week when EU commissioners met to discuss the bloc’s strategy towards the Asian giant.

“The current state of the trade and investment relationship is not sustainable,” the Commission said in a statement after the meeting.

An EU official told Euronews that a majority of the Commissioners had agreed to strengthen the EU’s trade defence tools to help counter China. Proposals will be made to EU leaders during their summit on 18 June.

However, member states remain divided over the EU’s China policy. A non-paper signed by France, Italy, Spain, the Netherlands and Lithuania called for faster use of tariffs and quotas on imports threatening EU industrial sectors, with China the principle target. The idea is to restore a level playing field against Chinese trade practices that many in Europe describe as unfair.

Among those countries taking a different line is Germany, whose policy is to preserve access to the Chinese market for its companies even as it faces a deep trade deficit.

Meanwhile, the Commission said it will continue engaging with China. There have been reports that Commerce Minister Wang Wentao could visit Brussels on 28 and 29 June, but the visit has not yet been publicly confirmed.

Wall Street closed the week higher as easing Middle East tensions, softer-than-expected inflation data, and strong corporate earnings boosted investor sentiment.

Investor sentiment improved after President Donald Trump said a framework to end the conflict with Iran and restore shipping

May 28 (UPI) — The U.S. military attacked Iran, Tehran confirmed early Thursday, as Iran announced retaliatory strikes of its own.

Iran targeted a U.S. air base at about 4:50 a.m. local time in response to the U.S. military striking presumed Iranian military assets near Bandar Abbas Airport in southern Iran.

“This response is a serious warning so that the enemy knows aggression will not go unanswered, and that in the event of a repeat, our response will be more decisive and the responsibility and consequences will lie with the aggressor,” Iran’s Islamic Revolutionary Guard Corps said in a statement carried by Iranian state media.

The air base targeted and whether it sustained damage were not known. The U.S. military has yet to comment.

The announcement came as the Kuwait Army said its air defenses were confronting “hostile missile and drone attacks.” While the United States maintains a significant military presence in Kuwait, it was not immediately clear whether those attacks were related to the U.S.-Iran exchange.

Explosions were heard near Bandar Abbas, Iranian state news agency Tasnim reported earlier Thursday.

Citing an unidentified military source, the news agency said the U.S. attack followed the Iranian Navy firing shots toward a U.S. oil tanker that had turned off its radar system and intended to pass through the Strait of Hormuz.

The oil tanker reportedly ended its attempt to transit the vital energy maritime trade route.

Iran has been enforcing has been restricting access through the Strait of Hormuz since the start of the war, permitting only certain vessels through. The United States responded with a military blockade of Iran’s ports, cutting it off from sea-based trade.

The two sides have been in talks since a fragile cease-fire was agreed to last month, with Thursday’s U.S. strikes on Iran the second time it has attacked the country so far this week.

On Monday, the U.S. military attacked southern Iran, describing the strikes as “self-defensive” in nature.

The Trump administration has repeatedly stated that it intends to secure free navigation of the Strait of Hormuz, one way or another, though it would prefer to do so through diplomacy.

Iran’s control of Hormuz is reportedly one of its conditions in negotiations on ending the war. In response to reports carried by Iranian state media that Iran and Oman, which border either side of the Strait of Hormuz, are in talks over control of the choke point, President Donald Trump said the transit route will be open to all countries and under no government’s control.

“It’s international waters. Nobody’s going to control it. We’re going to watch over it. We’ll watch over it, but nobody’s going to control it. That’s part of the negotiation that we’re having,” he told reporters during a Cabinet meeting on Wednesday.

“And Oman will behave just like everybody else or we’ll have to blow them up. They understand that. They’ll be fine.”

EXPLAINER

Israeli strikes kill 31 in Lebanon as attacks intensify and displacement orders spread.

Israeli attacks across southern Lebanon killed at least 31 people and wounded 40 others on Tuesday, as Israeli forces intensified strikes and issued dozens of displacement orders for towns and villages in the country’s south and east.

Panic spread across southern Lebanon as residents fled the escalating assault, with Israeli ground forces reportedly pushing deeper into Lebanese territory amid fears of a wider offensive.

Meanwhile, Iranian officials condemned what they called “blatant violations” of the ceasefire by the United States after attacks on southern Iran on Monday, saying the strikes had further damaged already fragile diplomatic efforts.

Here is what we know:

In Iran

• Iran accuses US of violating ceasefire: Iran said the US violated the ceasefire by carrying out strikes near the Strait of Hormuz, complicating efforts to end the war. Iranian officials described the attacks in Hormozgan province as a “gross violation”, while the US claimed the strikes were defensive and targeted missile sites and vessels attempting to lay mines.
• Khamenei warns Gulf states over US bases: In an Eid al-Adha message, Iran’s Supreme Leader Mojtaba Khamenei said the US was losing influence in the Middle East and warned regional countries against hosting military bases that could be used to launch attacks on Iran.
• Iran seeks frozen assets release: Iran’s Tasnim news agency said Tehran is pushing for the release of $24bn in frozen assets as part of ongoing negotiations, with half expected to be unlocked after an initial agreement is signed.
• Internet partially restored: Meanwhile, internet access has begun gradually returning after what NetBlocks described as Iran’s longest nationwide crackdown on online access.

War diplomacy

• US says Iran deal still possible despite strikes: Despite new US attacks, Secretary of State Marco Rubio said a peace agreement with Iran remained within reach. The strikes threatened the fragile ceasefire between Washington and Tehran, as China called on all sides to honour the truce and resolve disputes through diplomacy.

In Israel

• Netanyahu warns of ‘more to come’ in Lebanon: Israeli Prime Minister Benjamin Netanyahu said Israeli forces were “deepening” operations inside Lebanon, with troops “seizing and controlling” territory and expanding what he described as a “security zone”. Speaking after Israeli attacks, Netanyahu also said Israel was intensifying efforts against Hezbollah drones and pledged fighting would continue “until ensuring the full security of Israel’s citizens”.
• US warplanes remain stationed in Israel: Israel’s Kan broadcaster reported an “unprecedented” deployment of US fighter jets and refuelling aircraft at Israeli airports, saying the military presence at Ben Gurion and Ramon airports is affecting civilian aviation capacity. The aircraft have remained in Israel despite the ceasefire with Iran.

In the US

• US senator criticises Trump’s Iran strategy: Democratic Senator Cory Booker said President Donald Trump’s approach to Iran had backfired, arguing the conflict had strengthened Tehran’s position and given it greater leverage over the Strait of Hormuz. Booker said the US was now in a “worse” situation than before the war and accused Trump of leading the country into a costly deadlock.

In Lebanon

• Israeli attacks kill 31 in Lebanon: Recent Israeli ground and air operations killed at least 31 people, as Israeli forces intensified strikes and pushed deeper into Lebanese territory. Israel also issued dozens of forced displacement orders across southern Lebanon and the eastern Bekaa Valley.
• Hezbollah ‘not losing the war’: Security affairs analyst Ali Rizk told Al Jazeera that Israel’s intensifying military campaign suggests mounting concern over Hezbollah’s resilience on the battlefield, while also reflecting growing political pressure on Israeli Prime Minister Benjamin Netanyahu at home.
• ‘Illusion of a ceasefire is entirely gone’: Reporting from Tyre in southern Lebanon, Al Jazeera’s Obaida Hitto said the sharp escalation in Israeli attacks shows that diplomatic efforts to contain the conflict have in effect collapsed. Massive strikes hit eastern Lebanon, including areas near the strategic Qaraoun Dam, while displacement orders spread across dozens of towns and villages. Hitto said civilians were once again facing the “devastatingly familiar reality” of widespread destruction, displacement and fear.

May 19 (UPI) — U.S. Secretary of State Marco Rubio said he has imposed additional sanctions against Cuba, with more to come in the days and weeks ahead, as the Trump administration ratchets up the pressure on the communist government of President Miguel Diaz-Canel.

The sanctions announced Monday by the U.S. State Department target 11 Cuba officials and three Cuban security and intelligence entities, freezing any assets under U.S. jurisdiction and prohibiting U.S. persons from doing business with them.

Agencies blacklisted were Cuba’s Ministry of Interior, the National Revolutionary Police Force and its Directorate of Intelligence, Havana’s primary foreign intelligence agency.

Officials hit included the heads of the Revolutionary Police Force as well as various ministers, the chief of staff of military counterintelligence, the chief of the Central Army of Cuba, the chief of the Eastern Army of Cuba, and the president of Cuba’s National Assembly for People’s Power, among others.

Rubio described them as “Cuban regime elites” and officials who have been involved in repressing the Cuban people.

“Regime-aligned actors such as those designated today bear responsibility for the suffering of the Cuban people, the failing Cuban economy and the exploitation of Cuba for foreign intelligence, military and terror operations,” he said in a statement, while warning that more sanctions “can be expected” in the following days and weeks.

“Today’s designations further restrict the Cuban regime’s ability to suppress the will of the Cuban people.”

Late Monday, Diaz-Canel lashed out at the United States over the sanctions, saying no one in Cuba’s government, political party or military institutions has any assets or property to protect under U.S. jurisdiction — and the Trump administration knows this.

“The anti-Cuban rhetoric of hate tries to make people believe such things exist in order to justify the escalation of its total economic war,” he said in a social media statement.

“That’s why we will continue to denounce, int he firmest and most energetic way possible, the genocidal siege that seeks to strangle our people.”

He described Trump’s Cuban policy as “collective punishment” and “an act of genocide,” calling on the international community to prosecute those responsible for it.

President Donald Trump has been targeting Havana with sanctions and economic restrictions since early this year, when he declared a national emergency concerning Cuba on the grounds that it has aligned with “numerous hostile countries, transnational terrorist groups and malign actors adverse to the United States.”

Trump has blocked Venezuelan oil shipments to Cuba, adding to the decades-old economic embargo and worsening the island nation’s energy crisis. The country’s fuel oil stocks have run dry, according to officials, and blackouts are common.

Trump has repeatedly raised the prospect of military action against Cuba and has stopped short of directly calling for regime change as he seeks to extend the United States’ influence across the Western Hemisphere.

Cuba blames the United States for its current economic and energy situation, and the sanctions came as its foreign minister, Bruno Rodriguez Parrilla, on Monday, defended Havana’s right to self-defense in response to reports that claimed the island nation had purchased drones from Russia and Iran.

While some Republicans, including Sen. Rick Scott and Rep. Carlos Gimenez, both of Florida, celebrated the sanctions, several Democrats have condemned the Trump administration’s broader campaign, accusing it of manufacturing a pretext for war.

Reps. Delia Ramirez of Illinois and Nydia Velazquez of New York lambasted the administration in a joint statement, accusing it of attempting to justify another “unauthorized and unlawful military invasion,” seemingly referring to the U.S. military abduction of Venezuelan President Nicolas Maduro in January and Trump’s late February strikes on Iran, which triggered a war later halted by a fragile cease-fire.

“For the Trump administration, the goal is another military incursion. They will justify their actions by claiming it serves the freedom of Cubans,” the Democratic pair said, calling on Congress to pass a war powers resolution to curb Trump’s ability to make war without congressional authorization.

“Today, we must act to stop the destructive ambitions of imperialists and warmongers.”