Evening Briefing: Thursday 28 May 2026
- Iran’s Islamic Revolutionary Guard Corps said today it targeted a US air base in Kuwait in retaliation for US strikes on a military site near Bandar Abbas. The US separately shot down four Iranian one-way attack drones. President Donald Trump told reporters: “They thought they were going to outwait me. You know, ‘We’ll outwait him. He’s got the midterms.’ I don’t care about the midterms.” The framework-deal optimism of recent days has collapsed; the IRGC has threatened “a more decisive response” to any further US attacks.
- The FTSE 100 traded down 1% at 10,395.98 by midday and held the losses through the afternoon. Brent crude rose 2.2% to $96.40 a barrel as the war-risk premium returned to the market. Sterling traded at $1.3410 against the dollar; the US 10-year Treasury yield rose to 4.50%. US Personal Consumption Expenditures inflation data — the Federal Reserve’s preferred inflation measure — landed this afternoon: Core PCE expected to rise to 3.3% from 3.2%; headline PCE to 3.8% from 3.5%, well above the Fed’s 2% target. Defence firms BAE Systems, Babcock and Melrose were among the FTSE’s top performers.
- Ukraine’s air defences shot down 138 of 147 Russian drones overnight, the Ukrainian Air Force said. President Volodymyr Zelensky appealed to President Trump and the US Congress for more air defence systems, urging Washington to “eliminate Putin’s last advantage”. Russian attacks killed two and injured 23 across Ukraine over the past day, with a Kherson family devastated in one of the strikes. The parallel Iran-war redirect of US Patriot interceptors continues to constrain Ukrainian air defence inventory.
IRGC Targets US Air Base in Kuwait; US Shoots Down Four Iranian Drones
Iran’s Islamic Revolutionary Guard Corps said today it targeted a US air base in Kuwait in retaliation for US strikes on a military site in the port city of Bandar Abbas. The US separately shot down four Iranian one-way attack drones. Kuwa…
Trump — “I Don’t Care About the Midterms”; Won’t Be Rushed Into Iran Deal
President Donald Trump told reporters at the White House Cabinet meeting on Wednesday that he wouldn’t be rushed into a peace deal with Iran. “They thought they were going to outwait me,” Trump said, referring to Iran’s leadership. “You kn…
Ukraine Shoots Down 138 of 147 Russian Drones; Zelensky Appeals to Trump for Air Defences
Ukraine’s air defences shot down 138 of 147 Russian drones launched overnight, the Ukrainian Air Force said. President Volodymyr Zelensky made a two-fold appeal to President Donald Trump and the US Congress for more air defence systems, ur…
Israel Agrees to Talks With Lebanon but Keeps Striking Hezbollah
Israel has agreed to talks with Lebanon but has continued striking Hezbollah positions in the country’s south. Iran has insisted Lebanon is covered by the US-Iran ceasefire framework; the United States and Israel have said it is not, threa…
US PCE Inflation Data — Core 3.3%, Headline 3.8%; Fed Target 2%
US Personal Consumption Expenditures inflation data — the Federal Reserve’s preferred measure — was released this afternoon. Core PCE rose to 3.3% from 3.2% the previous month; headline PCE rose to 3.8% from 3.5% in March, well above the F…
FTSE 100 Down 1% on Iran Strikes; Defence Stocks Lead, BT Slumps on Mittal Report
The FTSE 100 traded down 1% at 10,395.98 by midday on Thursday and held the losses through the afternoon as the Iran-US strike exchange ended the framework-deal optimism. Brent crude rose 2.2% to $96.40 a barrel. Defence firms BAE Systems,…
Blair — “Labour Must Put Policy First, Politics Second”; Step Back and “Analyse the World”
Former Prime Minister Tony Blair urged Labour yesterday to take a step back and “analyse the world” amid speculation over Sir Keir Starmer’s leadership. Blair’s intervention urged the party to put policy first and politics second. He separ…
Burnham Campaign 21 Days From Polling; Green Chris Kennedy Joins Five-Way Race
Andy Burnham’s Makerfield by-election campaign has 21 days to polling day on 18 June. The Green Party announced Chris Kennedy, a nurse, as its candidate yesterday. Kennedy said “we can’t let this election be dominated by a Westminster psyc…
UK Energy Price Cap +13% From July; Iran Shock Re-Anchors Inflation Backdrop
The UK energy price cap will rise 13% from July to its highest level in more than two years — an increase of £221 per year per household. Ofgem warned elevated energy prices are likely to persist through winter. The cap rise is the direct…
Streeting Coronation Talk Persists; Ten-Week Timetable in Play Behind Closed Doors
Senior allies of Wes Streeting say he is likely to abandon his Labour leadership bid and fall in behind Andy Burnham if the Greater Manchester mayor wins Makerfield. One Streeting ally: “The consensus among the team is that if Andy wins Ma…