Before the conflict began, inflation was at 2.4%, but the closure of the strait of Hormuz has affected energy prices
US inflation jumped to an annual rate of 4.2% in May, the third consecutive monthly increase since the start of the Iran war and a three-year high, as Americans continue to face steep oil prices.
Prices have increased sharply over the past several months, rising at an annual rate of 3.3% in March before going up to 3.8% in April. In February, before the conflict began, inflation was at 2.4%.
US launches strikes in retaliation for downing of US army helicopter, while White House source says deal could still be close
The future of peace talks in the Middle East have been thrown into question after Iran’s foreign ministry said it needed to “reassess” its participation, while Donald Trump said Iran would have to “pay the price” after the two countries traded fire overnight, drawing neighbouring states back into an on-and-off war that has consumed the region since late February.
The US launched strikes against Iran in the early hours of Wednesday morning in retaliation for what it said was Iran’s downing of a US army helicopter near the strait of Hormuz. Iran then launched a wave of retaliatory airstrikes claiming hits on US bases in Kuwait, Bahrain and Jordan.
Democrats have rolled the dice in Maine as they pursue a post-Trump future. Will it work?
It was over the moment he received the endorsement of Maine’s most famous resident: Stephen King, the master of horror, who announced on Tuesday that he voted for Graham Platner.
More than 100,000 Democrats in Maine agreed, making Platner, a marine veteran and oyster farmer, their nominee for the US Senate against Republican incumbent Susan Collins in November.
Vice-president says he expects war to end in a week – or a few months. Plus, get ready for start of Fifa men’s World Cup
Good morning.
US forces have launched strikes against Iran in response to the downing of an Apache helicopter near the strait of Hormuz a day earlier, and Iran has retaliated by hitting American airbases in the Middle East. The exchange of fire came as the US vice-president, JD Vance, was vague on the possible timeframe for ending the Iran war, saying it could conclude in a week or a few months.
What did Vance actually say? “Right now, I feel that we are in a position to get a deal that is good for the United States economically and that really does deal with the Iranian nuclear program. Not just now, not just while Donald Trump is president, but for the long term, to where my kids can say when they’re adults: ‘Iran is not going to have a nuclear weapon.’”
Who is Steve Hilton?Since arriving in the US 14 years ago, he has had stints as an entrepreneur, a policy analyst and a Fox News host after years of working in the background of Conservative party politics in Britain.
Who has been supporting him? Hilton has assembled a broad coalition spanning working-class voters, Latino small-business owners, religious conservatives and Silicon Valley tech tycoons. He has managed to turn his British accent into an asset, priding himself on being a legal immigrant as opposed to the undocumented kind derided by the Republican establishment.
Donald Trump said Iran has taken “too long” to agree to a deal “that would have been great for them” and will now “have to pay the price”.
In a post on Truth Social early this morning, which came after the US and Iran exchanged fire on Tuesday, Trump wrote:
Iran’s Military is a complete and total mess. Much of it, like their Navy and Air Force, doesn’t even exist anymore - They have been completely defeated. Iran is all talk and no action. The Bully of the Middle East is DEAD!!! They’ve taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!
A member of the US navy has been ordered to spend 44 years in federal prison after admitting that he fatally strangled a fellow sailor in his barracks room, violently squeezed the neck of a second woman onboard an aircraft carrier and illegally made secret video recordings of a third, including while they were being intimate.
Meanwhile, the family of the petty officer whom Jermiah Copeland acknowledged murdering, Angelina Resendiz, has called for reforms within the armed forces meant to better protect women serving in the military.
Lawmakers warn appointment of presidential loyalist will scuttle bipartisan agreement to renew Fisa surveillance law
Donald Trump is pushing ahead with his controversial plan to install political loyalist Bill Pulte as acting director of national intelligence, a move that has sparked bipartisan congressional backlash and imperiled the reauthorization of a powerful surveillance law set to expire at the end of this week.
Trump’s Tuesday evening announcement came after he met earlier in the day with the House speaker, Mike Johnson, to discuss Pulte’s elevation to the role, which has prompted widespread concern over his complete lack of national security experience and the prospect that he could use the office’s spying powers to continue his campaign of targeting Trump’s perceived political enemies.
The Chinese car company BYD has said it aims to be the world’s biggest automaker within the next five years.
Targeting Toyota’s long-held top spot, BYD’s founder and chair, Wang Chuanfu said he was confident it could overtake global rivals through rapid advances in battery technology and fast charging, as well as growing production overseas, including Europe.
Renewed outrage at White House’s use manga and anime imagery after US president is depicted as ninja Naruto
Japanese anime and manga fans are urging Donald Trump to stop using their favourite characters in his social media posts.
About 20,000 people have signed a petition on Change.org entitled Protect Japanese Manga, protesting against the official White House X account posting videos featuring unauthorised use of imagery from the popular Dragon Ball, Yu-Gi-Oh! and Naruto series. Angry fans have also been posting on social media.
Artan deemed a threat to national security by US officials
‘I promise you that I will attend the next one’
The World Cup referee from Somalia who was denied entry to the US arrived on Wednesday in Somalia’s capital, Mogadishu, where he was received by a crowd of supporters and officials.
Omar Artan was due to be the first referee from Somalia to officiate at a World Cup after making Fifa’s final list for the tournament. He is one of Africa’s top referees and was named the continent’s best male referee in 2025.
Outcome of polls in four states offers mixed signals about direction of two major parties before November’s midterms
Progressives rallied round the controversial Graham Platner after his primary victory in Maine on Tuesday, while Donald Trump again exerted his grip on the Republican party, helping to defeat a politician who had pushed for the release of the Jeffrey Epstein files.
Primary elections were held in four states – Maine, Nevada, North Dakota and South Carolina – ahead of November’s midterms to decide control of both houses of Congress. The results offered mixed signals about the direction of the two major parties.
Microsoft co-founder to appear in closed-door session as part of lawmakers’ investigation into convicted sex offender
Bill Gates is set to testify in front of the House committee on oversight and reform on Wednesday as part of the panel’s investigation into the convicted sex offender Jeffrey Epstein.
The Microsoft co-founder will appear in a closed-door session, where lawmakers are expected to question him about his past relationship with Epstein. A transcript of the interview is expected to be released at a later date.
Rolling coverage of the latest economic and financial news
European stock markets are taking a more decisive turn downwards now – the UK’s FTSE 100 has fallen 0.5%. The German Dax is down 0.6% and the French Cac 40 is down 0.3%.
Exclusive: poll across 15 countries finds ‘deep mistrust’, with majority doubting US would come to their aid in an attack
European confidence in an American “security guarantee” has hit a historic low, a survey suggests, with only one in 10 people across 15 countries seeing the US as an ally and majorities in all doubting it would come to their aid if they were attacked.
The survey, published on Wednesday by the European Council on Foreign Relations (ECFR) thinktank before critical G7 and Nato summits in France and Turkey over the coming weeks, revealed “deep European distrust in the US”, the authors said.
Lieutenant governor and attorney general advance but result signals decisive defeat for controversial Nancy Mace
Donald Trump-backed Pamela Evette, South Carolina’s lieutenant governor, and Alan Wilson, the state’s attorney general, have advanced to a runoff in a competitive race to represent the Republican party in South Carolina’s gubernatorial election.
The winner of the Republican primary is favored to win the closely watched general election, given South Carolina’s conservative tilt, although Democrats are hoping to ride a wave of progressive enthusiasm to make political gains across the ticket.
Hilton has worn many hats since he arrived in the US 14 years ago, and now faces steep odds of defeating Democratic Xavier Becerra in November
After years of working in the background of Conservative party politics in Britain, Steve Hilton has passed the first major test as his own front man: clinching a spot in the November run-off to become California’s next governor.
The outcome was far from a given under California’s open primary system, which rewards the top two vote winners regardless of party, and the particular challenge of running as a Republican in one of the most solidly blue states in the country.
Platner, whose campaign was hit by series of negative headlines, to face Susan Collins in key midterm contest
Graham Platner, a Marine veteran, oyster farmer and progressive activist, has scaled a mountain of personal controversies to win the Democratic nomination for the US Senate in Maine.
His victory on Tuesday caps a remarkable rise for a candidate who has never held elected office and whose campaign was shadowed by negative headlines that might have ended a more conventional political career.
The ex-reality TV star, who lost his home in the Pacific Palisades fire, cast himself as the antidote to the city’s woes
Spencer Pratt, an ex-reality TV star, cast himself as the antidote to Los Angeles’s woes as he campaigned to be the city’s next mayor.
He curried favor with swaths of disillusioned voters who related to his diatribes against city leadership. His fervent social media posts, including re-shares of AI-generated campaign ads showing LA in an apocalyptic light, garnered national attention.
Home city of Amazon and Microsoft passes moratorium as backlash against energy-guzzling AI infrastructure grows
Seattle has passed a year-long moratorium on the construction of new datacenters. The city council voted unanimously in favor of the temporary ban on Tuesday.
A major tech hub whose metro area is home to Amazon and Microsoft, Seattle is the largest US city to have passed such a moratorium as the backlash against AI infrastructure grows across the country.
Emily C Marks finds method proposed to kill Jeffery Lee violates ban on cruel and unusual punishment
A federal judge on Tuesday permanently blocked Alabama from executing a man with nitrogen gas after declaring the method violates the ban on cruel and unusual punishment. Alabama became the first state in the nation to use the execution method in January 2024, but has faced repeated legal challenges to its use.
Emily C Marks, a US district judge, permanently enjoined the state from executing Jeffery Lee by nitrogen gas. Lee was scheduled to be executed Thursday at an Alabama prison.
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