Morning Briefing: Thursday 28 May 2026
- Iran’s Islamic Revolutionary Guard Corps said overnight it struck a US airbase in retaliation for US military strikes on an Iranian drone operation near the Strait of Hormuz. The IRGC said any further US attacks would trigger “a more decisive response”. Kuwait’s army said its air defences intercepted hostile missile and drone threats overnight. President Donald Trump on Wednesday rejected an Iranian state TV report of a Hormuz framework deal as “a complete fabrication”, threatened to “blow up” Oman if it sided with Iran, and said his administration was “not satisfied” with the negotiating terms. The escalation collapses the framework-deal optimism of recent days.
- Brent crude jumped 3.7% to $97.79 a barrel overnight; FTSE futures pointed 1% lower into the London open at 10,400; the dollar strengthened as investors moved to safe havens; the US 10-year Treasury yield rose to near 4.5%. European Central Bank Chief Economist Philip Lane warned the global nature of the energy shock may amplify and prolong inflation impact across Europe, reinforcing central-bank caution on rate cuts. Gold rose 0.9% to $4,480 an ounce.
- The US Treasury Department added the Persian Gulf Strait Authority — the body Iran set up to manage requests for passage through the Strait of Hormuz — to the Specially Designated Nationals sanctions list yesterday. The PGSA was the operational vehicle for Iran’s “protection-fee” transit regime; sanctioning it formally puts the United States on a path of denying any international legitimacy to Iran’s claimed control of the strait. The 18 June Makerfield by-election is 21 days away with the Iran-war oil shock now firmly back in the centre of UK macro and political-economy debate.
IRGC Strikes US Airbase in Retaliation; Kuwait Air Defences Intercept Threats
Iran’s Islamic Revolutionary Guard Corps said overnight it targeted a US airbase after US military strikes on what a Washington official described as an Iranian drone operation that “posed a threat to US forces and commercial maritime traf…
Trump Rejects Hormuz Framework; “Blow Up” Oman Threat; Sanctions on Strait Authority
President Donald Trump at Wednesday’s Cabinet meeting dismissed an Iranian state TV report that Iran and Oman would manage shipping through the Strait of Hormuz as part of a deal, calling it “a complete fabrication”. “Nobody’s going to con…
Russia Launches 88 Drones at Ukraine; Svitlovodsk Industrial Plant and Railways Hit
Russia launched 88 drones at Ukraine overnight along with five Iskander-M ballistic missiles and a Kh-59/69 guided air missile, the Ukrainian Air Force said. Drones were launched from Millerovo, Oryol, Kursk and Primorsko-Akhtarsk. Air def…
Hamas Confirms Odeh Death; Israeli Strikes Kill 18 Palestinians in Gaza on Eid
Hamas confirmed on Wednesday that Israeli airstrikes killed its newly-appointed military wing leader Mohammed Odeh, less than two weeks after his predecessor was killed in a similar strike. Dozens of Palestinians carried Odeh’s body throug…
Taiwan Prosecutors Charge Three Over Nvidia AI Chip Smuggling Route to China
Taiwan prosecutors suspect three individuals successfully smuggled at least one shipment of Nvidia AI chips to China after first exporting them to Japan, in what marks the island’s first public crackdown on AI-chip diversion after years of…
FTSE Futures Down 1% on Iran Escalation; Brent +3.7% to $97.79
The FTSE 100 is set to open down 1% at around 10,400 on Thursday after the US-Iran exchange of fire overnight collapsed framework-deal hopes. Brent crude jumped 3.7% to $97.79 a barrel, recovering Wednesday’s losses and reigniting the geop…
Burnham Makerfield Campaign — 21 Days to Polling; Green Party Names Chris Kennedy
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…
Streeting Coronation Talk Continues; Ten-Week Timetable in Play
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…
Reeves Rearguard Holds — Blair Warning, Bond-Market Fear of Miliband
Chancellor Rachel Reeves’s backbench-lobbying push continues. Friends of Reeves believe there is a world in which she survives the transition to a Burnham premiership precisely because it would reassure the markets. Former Prime Minister T…
UK Energy Price Cap +13% From July — £221 Increase Per Household
The UK energy price cap will rise 13% from July to its highest level in more than two years, Ofgem confirmed on Wednesday — an increase of £221 per year per household. The regulator warned elevated energy prices are likely to persist throu…