Key development: Trump says US-Iran talks are in their “final stages” as Pakistan shuttles a new American proposal to Tehran.
Diplomacy
(Update) Pakistan’s interior minister is now in Iran trying to broker a US-Iran peace deal. Trump says negotiations are in their “final stages” as Iran reviews a new American proposal. (AlJazeera, France24)
Context: Pakistan is physically mediating between Washington and Tehran. Iran received a new US proposal—separate from Iran’s earlier response—and is examining it now. Trump told reporters Wednesday the talks are nearly done, though both sides are still trading threats about resuming attacks. This represents a concrete escalation from earlier document exchanges to active, in-person mediation.
Military Operations
(Update) A drone hit near a UAE nuclear power plant in Abu Dhabi, probably fired by Iran. No casualties or radiation leak, but Trump is reportedly meeting national security advisers to discuss military options. (France24)
Context: The strike triggered a fire near the plant but caused no radiological release. The UAE hasn’t confirmed attribution, but suspicion points to Iran. Trump convened his security team on May 18 to discuss potential military responses—a concrete signal that the US is weighing retaliation options.
Sources: France24
Economy
(Update) The EU cut its 2026 growth forecast after the Strait of Hormuz crisis sent energy prices sharply higher. Member states are fighting over whether to spend more to cushion the blow. (Euronews)
Context: The EU officially downgraded its economic outlook after the Hormuz situation drove up fuel costs earlier this year. With no end to the conflict in sight, rising energy prices are creating political tensions inside the bloc over fiscal support measures.
Sources: Euronews
EasyJet’s losses deepened as the Iran war drove up fuel prices and hit travel demand. The airline is warning about continued pressure on bookings this summer. (Euronews) [UNCONFIRMED]
Context: The budget carrier reported deeper first-half losses as jet fuel costs climbed and demand softened. EasyJet says higher prices and weaker summer bookings will keep squeezing margins, even as its package holiday business performs well.
Sources: Euronews
Inside Iran
Ahmad Vahidi—the IRGC general wanted by Interpol for a 1994 bombing—is running Iran’s war strategy and talking to mediators. He’s accused of planning the Buenos Aires attack that killed 85 people. (Euronews)
Context: Vahidi is the deputy IRGC commander and the person Argentina formally blamed for the 1994 Jewish center bombing. He’s emerged as the key figure organizing Tehran’s military response and participating in back-channel negotiations with regional intermediaries. Iran has effectively placed an internationally wanted war crimes suspect in charge of both fighting and diplomacy.
Sources: Euronews
International
More than a dozen Chinese companies are operating in Russian-occupied parts of Ukraine alongside Iranian firms. They’re working in Donetsk and Luhansk. (AlJazeera) [UNCONFIRMED]
Context: A Ukrainian monitor counted over a dozen Chinese companies working in the occupied Donetsk and Luhansk regions, along with Iranian businesses. It shows how Beijing and Tehran are economically embedded in Russia’s war effort.
Sources: AlJazeera
What to watch: Whether Trump’s national security meeting leads to US military action against Iran, and whether Pakistan can close the diplomatic deal before that happens.