Beijing expands its presence in the Gulf as Washington seeks a deal with Tehran. Xi issues his sharpest warning over a US blockade, while the Pentagon increases deployments to apply pressure. The standoff risks derailing a planned summit and disrupting vital oil trade.

Britain faces slower growth, weaker hiring and higher living costs as global tensions drive up petrol, energy and mortgage bills. Strained public finances delay defence investment, require £3.5bn in savings and threaten Labour’s 1.5m homes pledge, though a rebound is expected in 2027.

New EU border checks are causing severe delays for UK travellers, with long queues leaving some stranded and missing flights despite arriving hours early. Officials warn of wider summer disruption. Polling points to Brexit fatigue and growing support for closer EU ties.

UK inflation fears grow after Donald Trump vowed to restrict shipping in a vital oil strait following failed talks with Iran. The PM said Britain will not join any US move. The Chancellor heads to Washington as markets brace for higher energy costs and possible rate shifts.