FirstFT: Trump attracts US into one other Center East battle

At this time’s agenda: Suicide bombing in Damascus; Spain’s Nato goal opt-out; Revolut CEO in line for windfall; and Tesla’s robotaxis

Good morning, and welcome again to FirstFT. The US has been drawn into one other Center East battle, bombing three nuclear websites in Iran yesterday. Right here’s what occurred, and what to anticipate.

The scenario now: US B-2 stealth bombers led an assault on Fordow, Natanz and Isfahan utilizing what defence secretary Pete Hegseth known as “misdirection”. US President Donald Trump claimed the websites had been “completely and totally obliterated”, however the extent of the injury continues to be being assessed. A lot depends upon the whereabouts of Iran’s 408kg stockpile of uranium, enriched to ranges simply in need of weapons-grade. Israel and Iran traded extra air strikes this morning.

The worldwide fallout: Oil costs hit a five-month excessive over fears Tehran would retaliate by attacking power infrastructure within the area or closing the vital Strait of Hormuz. Gold costs rose throughout early buying and selling in Asia earlier than paring again good points, whereas the US greenback additionally rallied. Greater than 150 airways have suspended or diverted flights because of the battle, with British Airways and Singapore Airways cancelling flights to Dubai yesterday.

What’s subsequent? US officers mentioned there have been no plans for additional assaults except Iran hits again, however Trump has raised the potential of “regime change”. He’ll chair a nationwide safety assembly at this time. Tehran is weighing whether or not to retaliate or heed European nations’ and the UN’s calls to hunt a diplomatic answer. Iran’s overseas minister Abbas Araghchi is assembly Russian President Vladimir Putin, one in all Tehran’s closest allies, at this time. Israel has signalled it should press on with its bombing raids towards Iran.

Observe our stay weblog for the newest updates, and we now have extra evaluation on the battle:

• Gideon Rachman: Tehran’s grand technique has failed, however that’s no assure Israel and the US can succeed, writes our chief overseas affairs commentator.

• Trump’s gamble: The US strike may backfire on a president who had vowed not to attract America into new world conflicts. 

• A deal is feasible: Iran wants to indicate flexibility and the US should shift away from maximalist calls for, writes Ellie Geranmayeh of the European Council on Overseas Relations.

• The FT View: Trump’s step into the darkish makes the world a extra harmful place, writes our editorial board.

Be a part of our subscriber-only webinar on Wednesday with FT journalists and visitors and put your questions concerning the battle to our panel. Register right here. And right here’s what else I’m maintaining tabs on at this time:

• UK: Sir Keir Starmer will make investments £2bn over 4 years to reduce power costs for 1000’s of companies. Learn the prime minister’s op-ed within the FT as he unveils a long-awaited industrial technique.

• Brussels: EU overseas ministers meet to debate Ukraine with sanctions on Russia on account of expire, whereas the bloc holds a summit with Canada. European Central Financial institution chief Christine Lagarde addresses the European parliament.

• Macron in Norway: King Harald V and Queen Sonja welcome the French president and his spouse Brigitte in the beginning of a two-day state go to.

5 extra prime tales

1. At the least 20 folks had been killed in a suicide bombing at a church in Damascus yesterday night, the primary main safety incident in Syria’s capital for the reason that Assad regime was toppled final December. The Syrian authorities mentioned jihadi group Isis was chargeable for the assault.

2. Spain has secured an opt-out from a Nato defence spending goal demanded by Trump, the nation’s prime minister mentioned. Pedro Sánchez introduced the deal forward of the navy alliance’s summit this week, the place allies are anticipated to conform to spend 5 per cent of GDP on defence.

3. Unique: Revolut’s chief govt is in line for a multibillion-dollar windfall if he greater than triples its present valuation to about $150bn. Folks aware of the matter say Nik Storonsky, who based the fintech in 2015, would see his stake improve considerably beneath a long-standing Elon Musk-style pay deal. 

4. European international locations face paying extra for medicines on account of Trump’s plans to chop drug costs within the US, business specialists have warned. European international locations are probably to withstand vital value rises as a result of budgets are stretched and plenty of contracts with corporations are lengthy. This might additionally imply drugmakers find yourself not launching new medicines in these markets.

5. Tesla’s robotaxi service launched within the firm’s house metropolis of Austin yesterday with about 10 automobiles and a human security driver on board amid regulatory scrutiny of its self-driving expertise. CEO Elon Musk has touted the self-driving taxis as the way forward for his flagging electric-car maker.

Information in-depth

Mark Zuckerberg is betting greater than $14bn {that a} well-connected 28-year-old is the catalyst his firm must meet up with rivals racing to develop and commercialise synthetic intelligence. The Meta boss struck a deal not too long ago to purchase 49 per cent of Scale AI — however the actual prize was the info labelling enterprise’s head, Alexandr Wang.

We’re additionally studying . . . 

• Return to workplace: When prime executives work remotely, it turns into tougher to pull everybody else to their desks, writes Pilita Clark.

• Serial CEOs: Increased stress and extra scrutiny imply leaders are sometimes taking a “one and done” method to the highest company job, writes Anjli Raval.

• Fred Smith: The person who based FedEx in 1973, and stepped down as chief govt solely three years in the past, died on Saturday. He was 80.

Chart of the day 

Germany and Italy are going through calls to transfer their gold out of New York following Trump’s repeated assaults on the Federal Reserve and growing geopolitical turbulence.

Take a break from the information

Is F1 the final hope for originality in summer time blockbusters? Hollywood is counting on sequels and reboots greater than ever, writes FT movie critic Danny Leigh. If Apple’s motor racing film fails, it could possibly be the finish of the street for brand spanking new concepts.