The OECD warns the UK will see the biggest G20 hit to growth from the energy price shock, with inflation rising fastest after the US. Elevated bills will squeeze firms and households, making the BoE’s rate decisions harder and posing an early setback for the PM’s economic agenda.

Western officials report a major European power has sent drones, medicines and food to Iran, the first clear sign of military support. The shipments deepen ties and could expand Iran’s capabilities. Tehran denies related claims about contacts over a previous US deal.

VW is considering a move into defence manufacturing via a partnership with Israel’s Rafael, repurposing a struggling Lower Saxony plant to protect thousands of jobs. The tie-up would supply European buyers with air-defence components, subject to political sign-off and board approval.

Trump promotes a diplomatic path to end the Middle East crisis, calling off planned military action against Iran’s energy facilities. Oil prices fell as markets stabilised. Tehran says no talks have occurred with Washington, while the Pentagon positions additional forces in the region.