Main developments
Benjamin Netanyahu said joint US-Israel strikes had destroyed Iran’s ability to enrich uranium and to produce ballistic missiles and that he saw “this war ending a lot faster than people think.”
The Israeli prime minister’s comments sparked a late rally for US stocks, helping the S&P 500 close just 0.3 per cent lower. Oil retreated to $107 a barrel, having topped $119 earlier on Thursday.
Treasury secretary Scott Bessent said the US could order a second release from its strategic petroleum reserve in an effort to push down oil prices. However, the White House is not considering a ban on oil exports, a senior official told the FT.
Donald Trump said he reprimanded Netanyahu for Israeli strikes on Iran’s energy fields, including the South Pars attack that drew retaliation from Tehran. Netanyahu later said Israel acted alone.
The US president also said the US was securing the Strait of Hormuz “for everybody”, adding: “We don’t use the strait.”
US defence secretary Pete Hegseth insisted the country was not “spinning towards an endless abyss or forever war”.
The leaders of six nations, including the UK, have expressed their “willingness” to take part in efforts to ensure safe passage for ships through the Strait of Hormuz when hostilities end.
EU states to call on Brussels for help over rising energy costs
European countries want the European Commission to help them design “temporary and targeted measures” to tackle high energy costs, according to draft proposals from a meeting of the continent’s leaders.
The proposal, seen by the FT, calls for the Commission to “work closely with member states to design national temporary and target measures to mitigate significant impacts of fuels and related-cost components on electricity generation costs”.
It has yet to be agreed by member states, which are gathering in Brussels for a European Council meeting. The measures also call for a review of the bloc’s carbon costs scheme, the emissions trading system, to be completed by July 2026.
Lebanon’s PM says government ready to enter negotiations with Israel
Lebanon’s Prime Minister Nawaf Salam said his government was ready to “enter into immediate negotiations with Israel” in a message directed to US President Donald Trump.
“We have been for two weeks extending our hands to have direct talks with the Israelis — so far we haven’t received an agenda,” Salam said during an interview with CNN on Thursday in response to a question about whether Lebanon would normalise ties with Israel as part of a peace deal.
Lebanon’s President Joseph Aoun last week called for direct negotiations with Israel as part of a peace initiative.
Salam suggested Beirut would not accept any Israeli occupation of Lebanon’s territory as part of a possible negotiated truce.