6.4 Magnitude Quake Rocks Western Cuba, Sends Tremors Into South Florida
The USGS reported that a magnitude 6.4 earthquake struck just off the coast of Cuba around 2 p.m. ET, with residents across parts of Florida reporting feeling the shaking.
The Department of Justice (DOJ) on Monday announced it has asked courts across the country to strip more than a dozen people who have pleaded guilty or been convicted of crimes of their U.S. citizenship.
Filings in federal court requested judges revoke the naturalization of 17 individuals, including Jean Claude Alfred, a 68-year-old Haitian native who became a U.S. citizen in 1994.
Federal officials said that Alfred, who does not have a lawyer listed on the court docket, was convicted in 1996 of attempting sexual battery and indecent assault on his daughter, for conduct that began three years prior.
Alfred “concealed his crime throughout the naturalization process,” DOJ lawyers told the federal court in Miami.
Another man, 39-year-old Armando Mendoza of Mexico, received sexually explicit images of minors as early as 2009 and pleaded guilty in 2013. Mendoza failed to disclose the crime in his 2011 citizenship application and interview, which means his citizenship should be revoked, officials said in a separate filing in federal court in California.
Mendoza has not hired an attorney, according to the court docket.
“When criminal aliens exploit the naturalization process by breaking the law, there are consequences,” acting Attorney General Todd Blanche said in a statement. “Criminal aliens are lying about their past crimes, including drug dealers, sexual predators, and fraudsters.”
Homeland Security Secretary Markwayne Mullin added that “American citizenship is a privilege, and it must be earned honestly.”
He said, “If you come here break our laws, and lie in your immigration proceedings, you forfeit that privilege.”
Apple’s Long-Awaited AI Siri Fails To Impress As Shares Pump Then Dump During WWDC
Summary:
Market Reaction: Buy the rumor, Sell the news
Apple Reveals Long-Awaited AI Siri
CEO Tim Cook gives his final WWDC keynote speech
Goldman And UBS Preview Apple’s WWDC: AI Siri Takes Center Stage
Apple CEO Tim Cook opened WWDC26 with a keynote on artificial intelligence, software updates, and developer tools across the company’s ecosystem.
WWDC26 presentation centered on a broad rollout of Apple Intelligence features across its ecosystem, with the tech giant previewing a more conversational Siri, a dedicated Siri app, Visual Intelligence tools and new AI capabilities across Safari, Mac, Watch, Vision Pro and first-party apps.
The updated Siri will be available first in English, then expand to other languages. It is expected to work across iPhone, iPad, Mac, Apple Watch, and Vision Pro, with deeper device context, back-and-forth conversations, and more integration with Spotlight and system files. Apple also showed a customizable Siri voice, revamped dictation, and a 3D Siri experience for Vision Pro.
Safari is getting AI-powered automatic tab grouping, along with a feature that monitors web pages and notifies users of changes. Apple also highlighted privacy messaging, taking a shot at rival AI browsers that track user activity.
1. Tim opens the show for the last time: Tim Cook is giving his usual intro talking about how great Apple’s devices and tools are and praising its developers. Show a pic of the Earth taken from the journey to the moon. Apple Intelligence and Siri starting things off!
2. Three areas of focus: Platform improvements, Trust and safety, Apple Intelligence, and Siri
3. A new version of macOS has been revealed, called Golden Gate
4. They’re not announcing features for each iOS (just yet), but rather talking about system-wide changes that affect all OSes. For example, there’s now a Liquid Glass slider as well as a unified menu bar. In macOS, sidebar icons will be clearer and more consistent. App icons will get a new Liquid Glass layer that add depth and refraction. System optimization is smooth, and “a lot” of things are faster. iPhone and iPad launch up to 30% faster.
5. Improved Search: iOS, iPad, and macOS rebuilt the foundation of search that powers Spotlight, Settings, and Mail. It’s more stable and more efficient, indexed immediately. This is the only thing I wanted and I can’t wait to try it out.
6. A new voice for Siri: Siri AI, as Apple is calling it, has a new customizable voice with sliders for pace and expressivity.
7. Siri does what other chatbots do: Apple is spending a bit of time demoing Siri doesn things that ChatGPT and Gemini already do, like making plans, messaging groups of friends, getting information from the web, create a menu on the iPhone. On the Mac, Siri is integrated into Spotlight, which could be trouble if Apple hasn’t fixed it like it said.
8. Siri, Siri, Siri: The Siri section is long as expected, but there’s not a lot here that wasn’t previewed back in 2024. And of course, other chatbots and AI platforms are already doing a lot of this stuff. It remains to be seen whether the deep integration with Apple products will be enough.
9. WatchOS: It took almost an hour, but Apple finally mentioned watchOS in the WWDC keynote. It will be getting a new app layout and some Apple Intelligence features including the new Siri.
10. Visual Intelligence gets new abilities: Visual Intelligence with Siri can understand more about what’s on your screen and will be able to get contextual answers about the things it sees around you and on your screen. I have to wonder how many of these features will elicit yawns from users. We’ll have to see how it works.
“The WWDC 2024 version was pure vapourware but this looks more legit because Siri responses actually take a while to respond. After getting fined last time for false advertising, Apple can’t mess around with this Siri update,” tech journalist Trung Phan wrote on X.
Goldman And UBS Preview Apple’s WWDC: AI Siri Takes Center Stage
Apple’s annual Worldwide Developers Conference (WWDC) begins this afternoon at 1 p.m. EST at Apple Park in Cupertino, Calif.
Ahead of WWDC, Goldman analysts led by Michael Ng provided clients with a preview of what to expect, including the unveiling of a long-delayed AI-enhanced Siri and operating system version “27” across iOS, macOS, watchOS, tvOS, and visionOS.
The new AI-enhanced Siri will include many delayed features from WWDC24, such as on-screen awareness, personal context, and deeper integration with apps like Messages, Calendar, Photos, and Notes.
“We view these new features as key demand drivers for the iPhone and other products, which should help extend the strong revenue momentum realized to date (e.g., iPhone revenue +23% YoY in F1H26),” Ng wrote in the note.
Expected WWDC announcements:
AI-enhanced Siri launch timing & feature details. After announcing AI-enhanced Siri at WWDC in 2024 and seeing subsequent delays, we expect Apple to share updated details on AI Siri’s launch timeline and capabilities.
Launch timing: During Apple’s F2Q26 earnings call, the company stated it expects to launch personalized Siri this year (C2026). We expect Apple to confirm AI Siri should launch with iOS 27 in September 2026 alongside the premium iPhone 18 family launch.
AI Siri feature details: First, AI-enhanced Siri should have greater on-screen awareness (e.g., using information across iOS Apps including Messages, Calendar, Photos, Notes), which should allow it to provide more detailed, personalized answers to queries/prompts. Second, Apple likely will announce that users will have the ability to choose between various model providers to power AI features (Siri, Image Playground, Writing Tools), per Bloomberg. Third, Apple likely will announce a new standalone Siri app for users to interact in a chatbot-like manner.
Additional AI-driven & ancillary features. Aside from AI Siri, per Bloomberg, Apple likely will announce more sophisticated AI photo editing tools on the Photos App (besides Clean Up) that allow users to (a) generate content within a photo (Extend), (b) enhance photo aspects, and (c) adjust photo framing (Reframe). Apple likely will also announce improved Visual Intelligence capabilities through the Camera app, which will be able to do things like scanning nutrition labels (to sync with the Health app to log food intake) or scan business cards to create new contacts. Lastly, Apple is also expected to announce the ability to make tab groups in Safari and create custom Wallet passes from physical tickets.
Ng noted that Apple’s price action tends to be positive heading into WWDC, but shares often trade lower during the event.
Shares have traded up 19% since late April.
Ng remains “Buy” rated on Apple with a 12-month target price of $340.
Separate from NG’s note, UBS analyst David Vogt does not expect WWDC26 to be a positive catalyst for shares.
What Vogt expects at WWDC:
Google Gemini integration: Apple is expected to rebuild its internal models utilizing Gemini, using a combination of Google’s and its own in-house model to power Siri features. Apple is reportedly paying around $1 bn annually for access to the 1.2T model, which will run on its Private Cloud Compute servers.
Link to third-party models: Currently offered with ChatGPT, users will be able to choose which model they use through a feature called “Extensions”, a potential tailwind to App Store revenue.
Dedicated Siri app: The app will function similarly to other AI apps, including a history of prior conversations and an interface for text, voice, and attachments. Chat syncing across devices with iCloud: User conversations will sync across devices with iCloud, potentially increasing its usage.
Personalization and on-screen awareness: Siri is expected to possess the ability to understand personal data and analyze on-screen content. Users have long awaited these features since they were originally announced at WWDC24
WWDC26 is set to be Apple’s first major test of AI Siri.
Trump Admin Provided No Defensive Action For Israel Amid Iranian Missile Salvo
We’ve been documenting the apparent immense strain in the US-Israel relationship related to Iran policy and strategy. In this latest round of trading major blows, President Trump reportedly not only told Israel to immediately halt its response and to not retaliate, but gave no order for US forces to protect Israel, for example by manning and operating crucial anti-air defenses.
While Iranian ballistic missiles were inbound, “The US military didn’t take part in the Israeli attacks against Iran, the first since the ceasefire, and the Trump admin didn’t order any US defensive action to shield Israel from incoming Iranian missiles, per a US official” – according to CBS White House correspondent Jennifer Jacobs.
If accurate, this marks a major change in US priorities and the Pentagon’s posture in the region. Going back to last year’s 11-day June war, as well as from the start of Operation Epic Fury, Washington has previously provided consistent cover and protection for Israel, especially on the anti-air defense front.
The notable change and shift is also being reported by NBC, which writes Monday morning, “The U.S. military did not conduct any strikes against Iran with Israel, according to a U.S. official.”
“The U.S. did not shoot down or intercept any incoming Iranian missiles or projectiles during this recent volley between Israel and Iran,“ the report continues. “And the current U.S. assessment is that Iran was not targeting any U.S. personnel, assets, or locations during the strikes directed at Israel, the official said.”
US Central Command (CENTCOM) has however, affirmed it has been in contact with senior Israeli military officials, presumably to receive updates and briefings on the Iranian attacks of the prior 24 hours, as well as related to the latest on Israeli offensive actions.
While Washington is creating distance between itself and this renewed round of fighting, Iranian officials aren’t buying the narrative.
In a fresh message from Iranian foreign ministry spokesman Esmaeil Baqaei, Tehran says that “Without a doubt … the actions of the Zionist regime in the region cannot be separated from U.S. policies.” Tehran is rejecting the US insistence that it is not behind Israel’s actions: “No one believes that the Zionist regime would carry out any action without prior coordination and cooperation with the United States,” Baqaei added.
Meanwhile, President Trump declared in a Financial Times interview published on Sunday – “I call the shots” regarding actions against Iran, and not Israel.
Prime Minister Benjamin Netanyahu “won’t have any choice” but to accept an impending agreement between the US and Iran, Trump stated.
Mark Levin rages over lack of US defense for Israel:
At the same time, a US official told Axios on Sunday that Trump was “pretty adamant that we are close to a deal with Iran,” urging space to give diplomacy a chance.
Though Israel ultimately went ahead with a strike on Iranian territory following Sunday’s missile barrage, the situation is showing signs of a temporary pause on Monday. Iran’s military announced it had halted its operations, claiming it had successfully sent its intended message, even as Trump continued to publicly insist that both nations are actively looking to agree on an “immediate CEASEFIRE” (on Truth Social).
Netanyahu Confirms Israel ‘Holding Fire, For Now’ – Rejects Iran Red Line To Not Attack Lebanon
Summary
Israel has rejected Iran’s warning not to attack Lebanon, though aerial operations appear paused.
Israeli officials say strikes on Iran being halted at President Trump’s request to ‘stop shooting’. Netanyahu confirms attacks halted ‘for now’.
Iran FM accuses US of cooperating with Washington: “No one believes that the Zionist regime would carry out any action without prior coordination and cooperation with the United States” (Foreign Ministry spox).
Iran’s sprawling Bandar Imam Petrochemical Complex bombed by Israeli Air Force.
Houthis seek to close/threaten Bab-el-Mandeb Strait for Israeli-linked passage: We declare a complete and total ban on maritime navigation for the Israeli enemy in the Red Sea.
Israel Rejects Iran Attempt to Assert Red Line on Not Attacking Lebanon
The Lebanon crisis remains a tug-of-war flashpoint between Tehran and Tel Aviv. The Iranians want to force a situation where any broader peace deal with the US is linked directly to achieving permanent truce in Lebanon. However, the US and Israel have consistently sought to thwart these attempts. According to Bloomberg:
Israel will strike Hezbollah in Beirut in retaliation for any further cross-border attacks by the Iranian-backed Lebanese faction, Israel’s defense minister says in a statement, rejecting a threat by Tehran to resume missile salvos in solidarity with Lebanon.
“Any Iranian attempt to link Lebanon to Iran in attacking Israel will be met with a forcible response, as happened yesterday,” Defense Minister Israel Katz says, referring to an air strike in the Lebanese capital which prompted Iranian missile fire against Israeli targets. If Hezbollah attacks Israel’s northern communities “it will lead to an attack on the Dahieh,” he says, referring to a Beirut suburb where support for Hezbollah is strong.
Still, Israel has by late Monday (local) made clear it is halting attacks on Iran and Lebanon ‘for now’ after President Trump called for immediate restraint.
Israel Halts Iran Attacks ‘For Now’
“After Iran attacked Israel, I instructed the IDF to strike military and economic targets throughout Iran,” Netanyahu said in a fresh Monday statement. “For now, the fire has been contained, because after we struck the terrorist regime in Tehran, it ceased attacking us. If the terrorist regime in Iran makes the mistake of attacking us again, we will respond with force.” The key lines from Netanyahu:
Israeli Prime Minister Benjamin Netanyahu said Monday that Israel had stopped its attacks on both Iran and Hezbollah in Lebanon, after the Iranian military announced it was halting operations.
In a brief statement Monday, Netanyahu said “Iran and Hezbollah are weaker than ever, and we are stronger than ever – but our struggle with them is not over yet.”
Having bombarded both adversaries, he added, “right now, the fire has been halted.”
Iran’s military headquarters responds: “Should aggression and hostile actions continue—including in southern Lebanon—far more severe and forceful measures than before will follow,” it said, according to Iranian state media.
And in a clear sign of the exchange of strikes having ceased:
Iran says flight restrictions have been lifted with airspace returning to normal conditions: state media
Israel Pauses Iran Strikes At Trump’s Request
Israel’s N12 News is reporting that Israel is halting strike on Iran at President Trump’s request. There are widespread initial reports that Israeli forces are indeed pausing the attacks, which persisted overnight through Monday morning, and included attack on a major petrochemical complex. However, the latest Israeli messaging has included a warning on the Lebanon front, per Bloomberg:
Senior Israeli official says Israel is stopping strikes in Iran at Donald Trump’s request, but confirms operations in southern Lebanon will continue at full intensity in the coming days. The official also warns that Dahieh in Beirut could be targeted if attacks on Israeli settlements and civilians continue.
There are also emerging reports (via CBS) that Trump did not order any US defensive efforts to protect Israel from the latest Iranian ballistic missile attacks – which were the first against Israel since the early April ceasefire.
Meanwhile, in a fresh message from Iranian foreign ministry spokesman Esmaeil Baqaei, Iran says “Without a doubt … the actions of the Zionist regime in the region cannot be separated from U.S. policies.” Tehran is rejecting the attempts of the Trump administration to distance the US from Israeli actions: “No one believes that the Zionist regime would carry out any action without prior coordination and cooperation with the United States,” Baqaei added.
Trump: ‘Stop Shooting’
A big question remains is if this flare-up in major fighting, which has featured the first direct attacks between Iran and Israel since the April ceasefire took effect, will be short-lived or whether it will endure and escalate into sustained war.
So far the situation is showing signs it could be short-lived, after early Monday morning President Trump urged Israel and Iran to immediately stop “shooting” in a Truth Social post. He also expressed that this musts be done “quickly” and is still talking up a “final” peace deal – which at this moment looks as distant as ever. Iran is signaling it is ready to get back to ceasefire, but Israel is again threatening the Beirut suburbs.
Here’s what Trump wrote in a couple of brief Monday posts:
Israel and Iran must immediately stop “shooting.” …and:
Both sides, Israel and Iran, are looking to do an immediate CEASEFIRE! Final negotiations on “Peace” are proceeding, subject to ignorance or stupidity getting in its way. The Blockade will remain in place, and in full force and effect, until a “Final Deal” is reached. Things should move quickly. Thank you for your attention to this matter!
Big Round of Israeli Retaliation Airstrikes on Iran
Videos of Israel’s further daytime attacks on sites across Iran have emerged, after Iran sent ballistic missile waves on Israel on Sunday, in response for the IDF renewing airstrikes on Beirut.
BREAKING NEWS: Israel is striking targets in Iran.
The Israeli Air Force carried out heavy strikes across Iran. About 15 targets in total. pic.twitter.com/3dlaht2nm5
For now, Tehran is claiming the current round is over, with Iran’s armed forces having announced the end of military operations against Israel while warning of “harsher” attacks if Israel resumes strikes on Lebanon, according to the semi-official Fars news agency.
The Khatam al-Anbiya Central Headquarters spelled out the Islamic Republic’s latest justification: “Following the aggressions and acts of mischief by the brutal Zionist regime in southern Lebanon and the Dahieh area, carried out with the support of criminal America, the powerful armed forces of the Islamic Republic of Iran, in support of the oppressed people of Lebanon, delivered a painful response to this regime.” And there’s a new message from Iranian President Pezeshkian, saying:
“Diplomacy and defense are the two wings of national power; we have neither left the field nor the negotiating table… We will defend the rights of the nation with authority and will not retreat in the face of any threat.”
Massive Iranian Petrochemical Complex Hit
Israel, however, made sure to leave a massive mark before any cooling off. The Israeli military confirmed it attacked Iran’s sprawling Mahshahr petrochemical complex on Monday, marking its first strike on the critical asset since the April 7 ceasefire agreement.
The Bandar Imam Petrochemical Complex, as it is formally known, is widely seen as one of the crown jewels of Iran’s energy sector. Tucked near the southern city of Mahshahr and Bandar Imam Khomeini – a vital industrial port on the Persian Gulf – the sprawling complex consists of more than 50 separate petrochemical plants producing roughly 72 million tons of products annually, according to Iran’s oil ministry.
The Israel Defense Force (IDF) released color footage of strikes on an Iranian air defense system in Iran. Per the IDF release, Israel has gained relative air superiority over western and central Iran and have struck a number of air defense systems in these areas. pic.twitter.com/WjEPzqSu3H
Iranian state media reported that one specific installation, the Karun petrochemical plant, was hit twice Monday morning. While a local official told Fars that no casualties were reported, the facility sustained notable structural damage.
IRGC: ‘Dangerous Game’
The response from Iran’s elite military branch was immediate and ominous. The Islamic Revolutionary Guards Corps condemned the precise strike as a “dangerous game” – openly threatening to expand the scope of how it retaliates against Israel, explicitly noting that future targets will include energy-related sites.
Israel already compiled a visual strike map showing targets it hit in Iran overnight into Monday:
The latest wave of strikes in Iran involved dozens of fighter jets targeting the regime’s strategic defense systems. pic.twitter.com/A2mBGwd9LU
With both sides testing the absolute limits of the April truce, the macro risk to regional energy infrastructure has officially rocketed back to the forefront, as Trump desperately tries – or is at least appearing to – walk the two sides back from the ledge.
Vital Bab-el-Mandeb Strait (Red Sea) Under Threat: Houthis Declare “Total Ban” On Israeli Ships
On the maritime chokepoint front, Iran-backed Houthis declared a full ban on Israeli vessels in the southern Red Sea, warning that any Israeli ship (or linked ship) will be seen as a military target:
“First: We declare a complete and total ban on maritime navigation for the Israeli enemy in the Red Sea, and we consider all enemy movements to be military targets for our Armed Forces from the moment this statement is issued.”
The statement continued, “Second: We affirm that we will meet escalation with escalation, and that our military operations will escalate in line with events, the battle, and in conjunction with the axis of Jihad and Resistance.”
The announcement is similar to the Houthis’ late-2023 campaign, when rebel forces attacked ships linked to Israel or bound for Israeli ports in or around the Bab-el-Mandeb Strait. They framed the attacks as retaliation for the Gaza war. Potential disruption of the Bab-el-Mandeb Strait in the southern Red Sea will only add to the headaches for global maritime trade, as it is a critical sea route for Asia-to-Europe commerce and Gulf energy exports.
At its narrowest point, the strait is about 18 miles wide, making commercial vessels extraordinarily vulnerable to suicide drones, missiles, mines, and small boats.
More Headlines/Latest Developments
via Newsquawk…
WEEKEND MIDDLE EAST RECAP
Israel conducted airstrikes on a couple of apartment buildings in Beirut’s Dahiya district on Sunday, in what the military described as targeting a Hezbollah command centre.
Iran launched four waves of strikes against Israel on Sunday evening in retaliation for an Israeli strike on Beirut, which it stated ‘crossed all red lines’, while it threatened devastating blows if Israel expands Lebanon operations. Iran signalled a halt to attacks if Israel refrains from strikes, but vowed stronger retaliation if Israel strikes back, and it closed its western airspace until further notice.
IRGC said that the Ramat David Airbase was hit by ballistic missiles and that future attacks are to target US-Israel regional assets, while Tehran Times noted reports of missiles being fired at a US airbase in Jordan.
Israeli PM Netanyahu was reported to be holding security consultations following the latest developments, while the Israeli military said the missiles launched by Iran were intercepted, although Iran claimed a successful strike on northern Israel.
US President Trump said he was supposed to announce that a deal with Iran would be signed this week, and now this is happening, while he called for Iran to end the missile fire and return to talks. Trump also stated that he was not happy about Israel striking Beirut and that Israel’s attacks were not coordinated with the US. Furthermore, Trump said he would call Israeli PM Netanyahu to tell him not to attack Iran in response, and noted that they are close to a final deal, which he doesn’t want to blow up.
US attacked Iranian coastal surveillance sites on Saturday after shooting down drones launched towards the Strait of Hormuz. US military said that Iran had fired missiles and drones towards Kuwait and Bahrain, while drones were also fired towards 4 commercial ships in the Strait of Hormuz.
Iran Supreme Leader’s military adviser Rezaei said Iran’s attack on Israel on Sunday serves as a warning to Israel to cease strikes on Beirut, while he warned of a further response to aggression.
EUROPEAN MORNING IRAN CONFLICT UPDATES
US President Trump posted “Israel and Iran must immediately stop shooting.”
US President Trump said Israeli PM Netanyahu will have no choice but to accept whatever deal the US negotiates with Iran because he calls the shots. Trump stated that Iran’s strikes had not changed his desire to conclude US-Iran negotiations and he thinks the deal is going on, but we will see what happens, and he would consider a commando raid on Iran if a deal failed, according to FT.
US told Israel to hold off for a few days to allow space for a deal, with a joint action plan to proceed if talks fail. It was separately reported by Tasnim, citing Israel’s Channel 12, that Israeli PM Netanyahu tried to object to US President Trump’s request not to react to Iran during a phone call, but in the end accepted it.
Iranian Foreign Ministry Spokesperson said Washington is responsible for the current situation because it is a party to the ceasefire agreement, and the ceasefire has been continuously and repeatedly violated by the opposing sides. Action is to be taken whenever deemed necessary to defend the country’s interests. On the ceasefire agreement, the spokesperson said that ending the war in Lebanon was part of the ceasefire agreement, and when this clause is violated, the diplomatic track is also affected. Furthermore, he said the message exchange is ongoing with the US and Pakistan’s Interior Minister visited Tehran to push negotiations. Lastly, he said they are not talking about the issues of enriched uranium or enrichment at this stage.
Iran’s IRGC said that by taking action against civilian targets and targeting oil industries, Israel has targeted a dangerous game which will encompass all energy targets in the region and consequences for the global economy belong to the US. Iran’s IRGC further said that we are ready to carry out operations on all fronts, and our response has been planned based on various enemy scenarios.
An Iranian source said that “Iran is prepared for a long-term war… The coming days will show that the calculations of the Israelis and Americans are always wrong”, Tasnim reported.
Iranian Supreme Leader senior adviser said on Sunday that Tehran threatened to block the Bab-al Mandab if Israel escalates its attack, according to CNN citing IRIB.
Yemen’s Houthis announce a complete and total ban on Israeli maritime navigation in the Red Sea. The Houthis also claimed responsibility for a missile attack in Israel and said banning navigation to the enemy is a preliminary step and the group is prepared for additional steps against any escalation.
Israeli projectile hit an Iranian petrochemical plant, with the Karun petrochemical plant damaged in Khuzestan province.
Israel’s army expects the exchange of strikes with Iran to continue for several days, Al Hadath reported.
Israeli Minister Smotrich is expected to propose at the next Security Cabinet meeting that Israel should respond to every Iranian missile launched at Israel by striking 20-30 buildings in Beirut’s Dehaya district, journalist Stein reported.
Israeli military said the Israeli Air Force struck military targets belonging to the Iranian regime in western and central Iran.
Throughout Monday in Iran, there have been reports of loud explosions in Tehran, Tabriz, Isfahan, Kermanshah and Karaj, while explosions were reportedly heard in southern Lebanon. Additionally, there were some arab sources reporting explosions at the Prince Sultan Air Base in central Saudi Arabia, however involvement was denied by Iran.
Drone attack reported from Yemen towards Israeli targets, according to Tasnim.
India Rescues 24 Crewmembers From Stricken Tanker Off Oman After US Airstrike
Update(1315ET): US Navy forces have announced a new Monday direction action operation in the Gulf of Oman. The US has cited that the vessel refused to respond to orders related to the blockade of Iranian naval ports.
The ship attempted to sail to an Iranian port, in violation of the ongoing blockade. A CENTCOM statement indicated that the military “disabled Palau-flagged M/T Marivex as it transited international waters in the Gulf of Oman toward Iran.”
“An F/A-18 Super Hornet from USS Abraham Lincoln (CVN 72) fired a precision munition into the ship’s engineering and steering spaces after the crew failed to comply with directions from U.S. forces,” the statement continued. “Marivex is no longer sailing to Iran,” it said. The Pentagon has also reviewed the following since initiating the blockade on April 13.
CENTCOM forces have disabled seven non-compliant vessels
it has redirected 134 ships that complied
allowed 42 vessels supporting humanitarian aid to pass
Indian navy helicopters airlifted 24 sailors off a tanker on fire off the coast of Oman on Monday, New Delhi officials said, without saying what caused the blaze.
India’s Ministry of Ports, Shipping and Waterways said a fire was reported at around 1:30 p.m. (0800 GMT) on the MT Marivex, a Palau-flagged tanker.
“There has been a fire reported on a vessel, MT Marivex, on which there were 24 Indian seafarers… all Indian seafarers are safe,” ministry director Opesh Kumar Sharma told reporters.
And more from the same report:
Images posted on social media by the Forward Seamen’s Union of India showed crew members being winched from the vessel by helicopter as thick black smoke billowed from its bridge and accommodation cabins.
The tanker’s position was shown by ship-tracking service MarineTraffic as being off the coast of Oman, south of the capital Muscat.
* * *
Brent crude futures jumped as much as 5% to $97.83 a barrel, while WTI traded around $95 a barrel, as renewed Iran-Israel fighting threatened to unravel a fragile US-Iran ceasefire and further disrupt energy flows.
On the maritime chokepoint front, Iran-backed Houthis declared a full ban on Israeli vessels in the southern Red Sea, warning that any Israeli ship (or linked ship) will be seen as a military target.
“First: We declare a complete and total ban on maritime navigation for the Israeli enemy in the Red Sea, and we consider all enemy movements to be military targets for our Armed Forces from the moment this statement is issued,” the terror group said Monday in a statement.
The statement continued, “Second: We affirm that we will meet escalation with escalation, and that our military operations will escalate in line with events, the battle, and in conjunction with the axis of Jihad and Resistance.”
“Third: We affirm the right of our people and the peoples of our free nation to confront American-Israeli aggression, and that we will not stand idly by in the face of the unjust siege imposed on our people and the peoples of the axis of Jihad and Resistance in Palestine, Gaza, Iran, Lebanon, and Iraq. All enemy attempts will fail, God willing, and our operations will continue as long as the aggression and siege against us and the axis of Jihad and Resistance continue,” the statement concluded.
The Houthis have announced a “complete blockade” of the Red Sea and the Bab al-Mandab Strait against all vessels linked to Israel.
They also warned that any further escalation will be met with an even stronger response. pic.twitter.com/fu6UFPtD1G
The announcement is similar to the Houthis’ late-2023 campaign, when rebel forces attacked ships linked to Israel or bound for Israeli ports in or around the Bab-el-Mandeb Strait. They framed the attacks as retaliation for the Gaza war.
Potential disruption of the Bab-el-Mandeb Strait in the southern Red Sea will only add to the headaches for global maritime trade, as it is a critical sea route for Asia-to-Europe commerce and Gulf energy exports.
At its narrowest point, the strait is about 18 miles wide, making commercial vessels extraordinarily vulnerable to suicide drones, missiles, mines, and small boats.
The previous disruption of the Bab-el-Mandeb Strait led to ships rerouting around the Cape of Good Hope, adding time, fuel, insurance costs, and higher shipping costs. The IMF has previously said that the Red Sea attacks halved Suez Canal trade in early 2024, while shipping traffic via the Cape of Good Hope surged.
Readers were brefied in mid-April on the threat other critical straits could be disrupted. Read the note here.
The big risk here is a simultaneous disruption of both maritime chokepoints. Bab-el-Mandeb would hit the world’s trade artery, while Hormuz has already disrupted the world’s energy artery. Combined, the clogging of both maritime chokepoints would be viewed as a major escalation, likely raising the risk of additional supply chain stress, higher freight and insurance costs, and another inflationary wave.
Trump Weighs Plan To Buy Chagos Islands, Home To Diego Garcia Military Base
The White House is actively considering a plan to purchase the Chagos Islands, potentially undermining the UK’s agreement to transfer sovereignty of the strategically vital territory to Mauritius, according to reports.
US officials have prepared proposals to bypass Britain and negotiate directly for control of Diego Garcia, the key Indian Ocean atoll that hosts a major joint US-UK military base. The idea forms part of broader options being developed by the Trump administration as alternatives to Prime Minister Keir Starmer’s plan to cede the islands to Mauritius, which has close ties to China and Iran.
Strategic Importance
Diego Garcia’s location makes it critical for long-range operations. It enables round-the-clock bomber missions, including potential strikes on Iran using B-2 Spirit stealth bombers, and places key areas within striking range. Amid ongoing conflicts involving Iran and China’s expanding naval presence, US and UK officials stress the need to maintain a robust chain of global military bases.
Senior Trump administration officials worry that transferring control to Mauritius could expose the base to espionage or interference. One former adviser to UK Foreign Secretary David Lammy, Ben Judah, told the Telegraph that the base has “super secret, super sensitive facilities” that are vital to British and allied capabilities, noting they would be difficult to replicate elsewhere.
Background on the UK-Mauritius Deal
The UK had agreed to hand sovereignty of the Chagos Islands to Mauritius while securing a long-term lease for the military base, reportedly involving around £35 billion ($46.7 billion) over 99 years. However, the deal requires US consent due to longstanding agreements governing the base, and Britain has since placed it on hold.
President Trump initially appeared open to the arrangement but later strongly opposed it, particularly after the UK reportedly declined to allow strikes on Iran from Diego Garcia in the early stages of the Iran war. He publicly denounced the deal as “great stupidity” and criticized Starmer for weakening the special relationship, calling him “no Winston Churchill.”
“President Trump has been consistent in his position that the United Kingdom should not give away the British Indian Ocean Territory, which includes our joint U.S.-UK military facility on the Diego Garcia atoll. Diego Garcia’s strategic location in the Indian Ocean makes it a vital and indispensable military installation of significant importance to the national security of the United States.”
The US continues regular discussions with Britain to preserve the base’s viability.
Purchasing the islands outright would likely involve waiting for the UK-Mauritius sovereignty transfer before negotiating with Mauritius. No specific price has been discussed, according to sources.
In February, Trump said that he had retained the right to “militarily secure” the Diego Garcia air base after calling the UK’s decision an “act of total weakness.”
UK Response
A UK government spokesperson defended the original agreement, stating it was necessary to protect long-term interests and prevent adversaries from gaining a foothold:
“Diego Garcia is a key strategic military asset for both the UK and the US, which has protected our shared security for nearly 60 years. Maintaining long-term operational control and security of Diego Garcia is the entire basis for the UK-Mauritius agreement.”
In May, UK minister Hamish Falconer stated there was “no scenario” in which Washington could purchase the islands, reaffirming commitment to the deal. Downing Street has not commented on the latest US proposals.
Solid-state battery advances could accelerate flying car adoption. GAC
As the flying car industry moves from prototype development toward commercial deployment, attention is increasingly shifting to the technologies needed to support safe and scalable operations.
Su Qingpeng, founder and CEO of GAC Govy, a low-altitude mobility company incubated by GAC, recently described solid-state batteries as the “essential path” for the future of flying cars, highlighting their potential to deliver the energy density and safety required for aerial mobility.
At the same time, investor expectations are evolving. Rather than focusing primarily on technical specifications and performance claims, capital markets are placing greater emphasis on practical indicators of commercial success, including vehicle deliveries, profitability, production readiness, and the timeline for obtaining airworthiness certification.
Flying Cars Follow a Path Similar to Early EVs
Su compared the current stage of the flying car industry to the position electric vehicles occupied roughly a decade ago, when the market was still transitioning from early adoption to large-scale growth. He argued that aviation mobility could advance even more rapidly than the EV sector once adoption reaches a critical threshold.
According to his outlook, the industry is expected to establish a sustainable commercial ecosystem by 2030, supported by technological progress, regulatory approvals, and the gradual rollout of low-altitude transportation services,CarNewsChinareported.
After entering the market with its first production model, GAC Govy has been advancing toward regulatory approval and commercial deployment. Its flagship aircraft, the Govy AirCab, opened for pre-orders in 2025 and officially entered production in May 2026.
The Chinese company aims to complete airworthiness testing and secure Type Certification (TC) by the end of 2026, while Production Certification (PC) is targeted for the first half of 2027, paving the way for larger-scale manufacturing and commercial operations.
Safer, Longer-Range Flying Cars Depend on Solid-State Batteries
In the long run, battery technology is emerging as one of the most important factors shaping the future of aerial mobility. Su noted that solid-state batteries will play a central role in enabling the next generation of flying cars by delivering both the energy density required for longer flight ranges and the safety standards needed for commercial operations.
Furthermore, the business case for solid-state batteries is markedly different in aviation than in the automotive sector. Whereas carmakers are pursuing the technology largely to lower costs and improve competitiveness in high-volume markets, flying car manufacturers can absorb significantly higher battery costs due to the economics of aircraft production. Su noted that conventional aircraft are far more expensive to build than automobiles, giving eVTOL developers greater flexibility to adopt advanced battery technologies.
As a result, solid-state batteries can already be deployed in limited production runs for aerial vehicles. Over time, broader adoption across the automotive industry is expected to drive down battery costs, making flying cars more economical to operate and opening the door to wider commercial use.
However, Su also warned that flying car production is likely to scale more slowly than traditional automobiles. Extensive design iterations, airworthiness certification, and manufacturing validation requirements make the path to mass production longer and more complex, resulting in a gradual ramp-up in deliveries.
Key Events This Week: All Eyes On The First CPI Print Over 4% In 3 Years
Before we look at the Fed, let’s take another quick look at the rollercoaster of the past trading session: a hawkish Fed repricing after the payrolls report triggered a sharp US equity sell-off on Friday with the S&P 500 falling -2.64% (2.59% on the week), its worst day of the year so far, snapping a run of nine consecutive weekly gains. Tech led the declines, not helped by Broadcom’s softer earnings earlier in the week. The NASDAQ dropped -4.18% on Friday (4.68% on the week), while the Philadelphia semiconductor index plunged -10.26% – its worst day since March 2020, and dubbed the “Red Sox.”
All of this comes as tensions in the Middle East are building again with renewed strikes between Iran and Israel, despite what should be the 61st day of a truce or ceasefire. Iran targeted Israel with a missile attack yesterday after an Israeli strike in Beirut, while Israel’s military has responded with strikes against targets in Iran overnight. The IRGC warned yesterday evening that its actions would mark “a full week of continuous strikes”, but there are also signs that the sides are looking to avoid a full escalation, with Axios reporting Israel strikes were “relatively limited” in scope and Iranian state media denying that it launched a strike towards a US airbase in Saudi Arabia after a missile alert there. The de-escalatory tone appears particularly evident from the US side, with Trump reportedly urging Israel not to strike back earlier last night, telling Axios that “The Iranian strikes didn’t hurt anybody. Hopefully Israel is not going to retaliate.” This and the wider quotes from Mr Trump sound like a President who really doesn’t want this war to escalate any further and is trying to find all ways to avoid it. Still, the events have further complicated the chances of an imminent deal. The key sticking points to a deal remain the release of Iran’s frozen assets, its stock of highly enriched uranium, developments in Lebanon, and how control of the Strait of Hormuz will be handled going forward.
So what a backdrop for the main economic event of the week, namely Wednesday’s May US CPI report. The timing is critical with the Federal Reserve’s next policy meeting, and Kevin Warsh’s first as Chair, a week later. For a while now the case for hiking has looked notably stronger than the case for a cut and last Friday’s payrolls has hugely reinforced that. Non-farm payrolls rose by 172k, comfortably ahead of consensus expectations of 88k, with private payrolls of 120k also exceeding forecasts (89k). It left the 3 month average for payrolls at a 2 year high of +188k. In addition, net revisions to prior months were positive by around 93k, adding to the impression of underlying momentum. While a large share of the upside came from leisure and hospitality hiring and a sharp increase in local government employment, job gains were not narrowly concentrated. The three month diffusion index rose to 53.8, its highest level since March 2024, signalling a broadening in employment growth across sectors.
Against this backdrop, attention now shifts squarely to inflation. DB economists expect energy to play a key role in May’s CPI, with a sharp increase in petrol prices (around +6.8% seasonally adjusted) lifting headline inflation more than core. They forecast headline CPI to rise by around +0.55% month on month (after +0.6% in April), while core CPI is expected to increase by a still firm +0.22% (after +0.4%). On a year on year basis, headline CPI is projected to move back up to around 4.3%, from 3.8%, while core inflation is expected to edge higher to roughly 2.9%.
As BofA’s Hartnett cautions, with US CPI set to print above 4% YoY and on course for 5% by US midterms, in the past 100 years once CPI crosses 4% on average SPX -4% next 3 months, -7% next 6 months
Beyond the aggregates, the composition of the CPI will be closely scrutinized. DB economists expect continued tariff related price pressures in apparel and ongoing firmness in certain information technology goods. Lagged wholesale price increases could also feed through into used car prices. On the services side, shelter inflation is likely to normalize following recent distortions, but markets will be watching carefully for any spillover from higher fuel costs into core services such as airfares, delivery services and other transport related components. Evidence of broader pass through would add to concerns about inflation persistence.
Thursday’s PPI release will be an important complement to the CPI, particularly as it informs the Fed’s preferred PCE inflation measure. Economists expect PPI to rise by around +0.5% month on month, following a strong April print. Based on current CPI assumptions and the PPI categories that feed into PCE, core PCE inflation is tracking around +0.33% in May, which would push the year on year rate up to roughly 3.4%. Key PPI components to watch include healthcare services, domestic airfares and portfolio management fees, all of which have been contributing to underlying inflation momentum.
Beyond inflation, the US data calendar is lighter but still relevant. On Friday, the University of Michigan survey will be watched for signals on consumer sentiment and inflation expectations. The headline sentiment index is expected to improve modestly to 48.5 from 44.8, with particular attention on whether longer term inflation expectations continue to drift higher.
Outside the US, central banks and inflation data remain the main focus, though the flow of information is more compressed. In Canada, the Bank of Canada announces its policy decision on Wednesday with no change expected. In Europe, the ECB meets on Thursday, where DB economists, and everyone else, expects a 25bp rate hike (99.9% probability according to futures), lifting the deposit rate to 2.25%, as policymakers continue to prioritise inflation control despite signs of softening growth.
In the UK, April monthly GDP on Friday will be the key release, offering insight into whether growth regained traction early in the second quarter. In Germany, April factory orders (today), industrial production and trade (tomorrow) will give a read on manufacturing momentum and external demand. Inflation updates are also due for May in Denmark and Norway on Wednesday.
In Asia, the focus turns to China, with May trade data tomorrow followed by CPI and PPI on Wednesday. China’s gradual reflation is expected to continue, with PPI rising to around 3.0% year on year from 2.8% and CPI edging up to roughly 1.4% from 1.2%. Trade is also expected to remain firm, with export growth around 15% year on year and import growth staying elevated near 26%. In Japan, the highlight is May PPI on Wednesday. Futures are suggesting a 94% probability of a BoJ hike next week. DB’s economist is more hawkish than consensus and expects a hike per quarter over the next year. You can see more on this in the World Outlook. On the corporate side, earnings highlights include Oracle and Adobe.
Courtesy of DB, here is a day-by-day calendar of events
Monday June 8
Data: US May NY Fed 1-yr inflation expectations, Japan May bank lending, Economy Watchers survey, April BoP current account balance, BoP trade balance, Germany April factory orders
Tuesday June 9
Data: US May NFIB small business optimism, existing home sales, April trade balance, wholesale trade sales, China May trade balance, Japan May M2, M3, machine tool orders, Germany April industrial production, trade balance, Canada April international merchandise trade
Central banks: ECB’s Moulin speaks
Auctions: US 3-yr Notes ($58bn)
Wednesday June 10
Data: US May CPI, federal budget balance, China May CPI, PPI, Japan May PPI, Italy April industrial production, Norway May CPI, Denmark May CPI, Sweden April GDP indicator
Central banks: BoC decision
Earnings: Oracle
Auctions: US 10-yr Notes (reopening, $39bn)
Thursday June 11
Data: US May PPI, initial jobless claims, UK May RICS house price balance, Germany April current account balance, Canada April building permits
Central banks: ECB’s decision
Earnings: Adobe, Lennar
Auctions: US 30-yr Bond (reopening, $22bn)
Friday June 12
Data: US June University of Michigan survey, UK April monthly GDP, Japan April capacity utilisation, Canada Q1 capacity utilisation rate
Central banks: ECB’s Kocher and Nagel speak
Looking at just the US, Goldman writes that the key economic data release this week is the CPI report on Wednesday. Fed officials are not expected to comment on monetary policy this week, reflecting the blackout period ahead of the June FOMC meeting.
Monday, June 8
There are no major data releases scheduled.
Tuesday, June 9
08:30 AM Trade balance, April (GS -$57.0bn, consensus -$56.5bn, last -$60.3bn); We forecast that the trade deficit narrowed from $60.3bn to $57.0bn in April, roughly in line with consensus expectations. The forecast reflects declines in the goods trade deficit and the services trade surplus, with the latter driven by a sharp pullback in tourism services exports in April.
10:00 AM Existing home sales, May (GS +0.5%, consensus +1.0%, last +0.2%)
Wednesday, June 10
08:30 AM CPI (MoM), May (GS +0.45%, consensus +0.5%, last +0.6%); Core CPI (MoM), May (GS +0.17%, consensus +0.3%, last +0.4%); CPI (YoY), May (GS +4.17%, consensus +4.2%, last +3.8%); Core CPI (YoY), May (GS +2.79%, consensus +2.9%, last +2.8%): We estimate a 0.17% increase in May core CPI (month-over-month SA), which would leave the year-over-year rate unchanged at 2.8% on a rounded basis. We expect mixed autos inflation, reflecting unchanged used car prices, a 0.1% increase in new car prices, and a 0.1% decline in the car insurance category. We forecast benign readings for the shelter categories—a 0.22% increase in the OER category and a 0.22% increase in the rent category—reflecting the continued slowdown in their underlying trend. We expect increases in the travel services categories (airfares: +2%; hotels: +0.2%), reflecting signals from alternative price data. We expect downward pressure from potential residual seasonality on the communication categories and public transportation categories outside of airfares. We estimate a 0.45% rise in headline CPI—reflecting higher food prices (+0.3%) and sharply higher energy prices (+4.2%)—which would raise the year-over-year rate to +4.17% from +3.81%. Our forecast is consistent with a 0.27% monthly increase in the core PCE price index in May. We expect a sharp increase in the financial services component—reflecting the increase in equity prices in April, which flow through to the component with a lag—to contribute to the larger increase in core PCE prices than the core CPI.
Thursday, June 11
08:30 AM Initial jobless claims, week ended June 6 (GS 220k, consensus 219k, last 225k); Continuing jobless claims, week ended May 30 (consensus 1,785k, last 1,777k)
08:30 AM PPI final demand, May (GS +0.5%, consensus +0.7%, last +1.4%); PPI ex-food and energy, May (GS +0.4%, consensus +0.5%, last +1.0%); PPI ex-food, energy, and trade, May (GS +0.4%, consensus +0.5%, last +0.6%)
Friday, June 12
10:00 AM University of Michigan consumer sentiment, June preliminary (GS 46.0, consensus 46.5, last 44.8); University of Michigan 5-10-year inflation expectations, June preliminary (GS 3.8%, last 3.9%)
By Bas van Geffen, Senior Market Strategist at Rabobank
There has been little progress in the US-Iran peace negotiations over the past weekend. In fact, it feels like the two sides have been walking backwards as the ceasefire is faltering.
The US and Iran are still at odds over the frozen Iranian assets, which Iran wants released as part of any deal. But, yesterday, President Trump said that he will not unfreeze any amount of Iranian assets, nor lift sanctions, immediately after a deal is closed: “If they behave, if they do a good job, we start talking” about unfreezing these assets, he said.
And, if it is up to the US Treasury, there may be few assets left by the time Trump is willing to talk. The Financial Times reports that Treasury Secretary Bessent is considering using the Iranian assets to pay for the rebuilding of Gulf countries that were hit by Iranian attacks. So, we’ve now moved from “the US and Gulf countries help with the reconstruction of Iran” to “Iran pays to rebuild the Gulf countries.”
On top of that, new attacks put further pressure on the negotiations, and on the fragile ceasefire that was tacitly extended while negotiations are ongoing. US Central Command reported it took down two Iranian drones that threatened marine traffic near Hormuz, after Iran also fired missiles at Kuwait on Wednesday and at Bahrain on Friday. The US, meanwhile, has struck Iranian radar and surveillance sites.
Fighting between Israel and Hezbollah is also still ongoing. Defence Minister Katz said the country’s air force had launched a strike on a command center in one of Beirut’s suburbs, in response to Hezbollah’s continuing attacks on Israel.
That’s another red line for Iran, which has already retaliated overnight. This remained limited to a tokenistic firing of five missiles. Nonetheless, it’s the first time since the ceasefire that Iran directly targeted Israel.
President Trump called on Netanyahu to refrain from further retaliation. However, this morning, the Israeli Prime Minister announced that the military had struck targets in western and central Iran – including a petrochemical facility.
This may be more about saving faces – Netanyahu wanting to project strength in the region, and Trump trying to salvage his peace deal – than an actual split between the US and Israel. Prior to the latest attacks, Iranian negotiator Qalibaf had already stated that the US’ greenlighting of Israel’s strikes on Lebanon made US assets in the region a legitimate target.
Trump may be trying to salvage what there is to save, but can we really still talk of a ceasefire? The Houthis are now saying that they will close the Red Sea for maritime trade with Israel, effectively broadening the conflict. For now, Israel is singled out as the target, but the move adds to the risk of a broader blockade of the key passage – though Iran must know that that would certainly cause global backlash.
Unsurprisingly, energy futures are trading higher after a turbulent weekend. Brent futures are up almost 5%, to $97.50/barrel. This is spilling over into broader sentiment as well. Asian equities are down, led by a 4.3% decline in the Nikkei 225. The risk-off sentiment stacks on top of some unwinding of the AI trade last week, and concerns that a stronger US payroll report might force the Fed to tighten rather than ease. European equity futures indicate a loss of around 1.5% on the open. Likewise, rates markets are under pressure. 10y Bund yields are currently 3bp higher on the day.
