America’s House of Representatives passed the “One Big Beautiful Bill” by 218 to 214 votes, sending it to Donald Trump’s desk ahead of his July 4th deadline. Two Republicans voted against it. The Republican bill, which extends the tax cuts from Mr Trump’s first term, is expected to increase the budget deficit and could leave an additional 12m Americans without health insurance.


Russia said that Mikhail Gudkov, its second-highest naval commander, who oversees the navy’s coastal and land forces, was killed in Ukraine. He had reportedly been killed in combat operations in Kursk, a region of western Russia near its border with Ukraine. Mr Gudkov is the one of the highest ranking Russian officers to be reported dead since the full-scale invasion began.


The number of workers on non-farm payrolls rose by a surprisingly healthy 147,000 in America during June. The unemployment rate fell slightly to 4.1%, also confounding expectations. The robustness of the labour market will ease pressure on the Federal Reserve to lower interest rates. Jerome Powell, the Fed’s beleaguered chair, had said that a rate cut in July was not “off the table”.


OpenAI signed a deal worth $30bn a year to rent 4.5GW of computing power from Oracle, a business-software giant. The agreement is part of the artificial-intelligence startup’s Stargate initiative to invest $500bn in building AI infrastructure in the coming years. Oracle plans to build several data centres across America to meet OpenAI’s demand for power.


French air-traffic controllers began a two-day strike over pay and working conditions, affecting hundreds of flights across Europe. France’s civil aviation authority asked airlines to cancel a quarter of their flights to and from Paris on Thursday, and almost half on Friday. Philippe Tabarot, France’s transport minister, called the strikes, which coincide with the start of summer holidays in France, “unacceptable”.


Annual negotiations between Japan’s trade unions and large companies, known as shunto, resulted in the highest wage increase in 34 years. Rengo, the country’s largest federation of unions, estimated that the 7m workers who belong to them negotiated an average wage increase of  5.25% in the spring. The bump will feed into the Bank of Japan’s decision whether to raise rates in response to a rise in inflation.


A small number of senior BBC staff were asked to “step back from their day-to-day duties”. The broadcaster has been heavily criticised after it failed to stop streaming a concert by Bobby Vylan, a rapper from Ipswich, as he led a chant of “Death, death to the IDF”, referring to Israel’s armed forces. Mr Vylan is being investigated by the police over the matter.


Figure of the day: $19, the price of the individually wrapped strawberries that made a grocery chain go viral.


Photograph: Getty Images

A Capitol Fourth

Spare a thought for the leader who fights on after the battle is lost. Hakeem Jeffries, the top Democrat in America’s House of Representatives, spoke for nearly nine hours on Thursday morning, postponing a vote on the One Big Beautiful Bill act. It was no use. Donald Trump, America’s president, and Mike Johnson, the Republican speaker, had whipped enough would-be rebels into submission. The tax-and-spending bill passed by 218 to 214 votes. Mr Trump intends to sign it into law on Friday—Independence Day.

Mr Jeffries spoke at length about the Americans who would be hurt by the bill. He is not wrong—it will significantly reduce the money spent on health care and welfare. It also extends lavish tax cuts, adding some $4.5trn to America’s debt over the coming decade, according to preliminary estimates. That is likely to harm economic growth. The bill illustrates the long-term damage Mr Trump is doing to the foundations of America’s economy.


Photograph: Getty Images

India and Argentina on common ground

On Friday President Javier Milei of Argentina is expected to welcome Narendra Modi, India’s prime minister, to Buenos Aires for talks, which will begin on Saturday. It will be the first bilateral visit to Argentina by an Indian prime minister in 57 years.

Mr Modi is on a five-nation tour across Africa, the Caribbean and South America that culminates at the BRICS conference in Brazil this weekend. Argentina made the list in part because of India’s interest in its minerals, such as lithium. The two countries have set up a working group to encourage Indian investment in mining in Argentina.

Attracting foreign money is an important part of Mr Milei’s plan to revive his country’s economy. He’d also like Argentina to sell more food and eventually liquefied natural gas to the world’s most populous country. New partners would also help politically. Argentina trades heavily with China but is tightly aligned with the United States on policy. That can be a difficult balance.

 

 

Photograph: Getty Images

Starmer’s first year ends in tears

The first birthday of Britain’s Labour government on Friday could scarcely offer a greater contrast in fortunes. Sir Keir Starmer won last year’s general election by a landslide, consigning the Conservative Party to its worst-ever defeat. Yet 12 months on, Labour’s polling is dreadful, trailing Reform UK, a hard-right party. All its promises—to grow the economy, build more houses—are off track. On Tuesday the government was humiliated by its own backbenchers, who gutted a bill to cut welfare benefits. The sight of the chancellor, Rachel Reeves, weeping in Parliament seemed to sum it all up.

What went wrong? Sir Keir tweaks systems that need reinvention and shores up institutions that should be demolished. Labour’s reforms to the planning code, Brexit, the National Health Service and taxation are too timid. Consequently, the government has blown its political capital on measures that are often sensible, frequently unpopular, but invariably too small and shallow to make a difference.


Photograph: Getty Images

Oasis goes all around the world, again

In a summer of big-ticket tours, some musical artists—including even the once unassailable Beyoncé—have been struggling to fill venues. Not Oasis. In perhaps the most anticipated return to the stadium circuit of any, every single date to see the reunited British rock legends, across five continents, has long since sold out. They begin their tour on Friday in Cardiff.

The shows mark a pause in the notorious feud between brothers Liam and Noel Gallagher, the band’s core members. Thirty years ago Oasis were one of the dominant stories in British news. It is testimony to their enduring popular appeal that they managed to repeat the feat when announcing their reunion. Fans, many of whom have paid far over the odds for tickets, will hope that this truce of convenience holds better than on the band’s previous tour. In 2009 Oasis broke up after a pre-concert backstage fight between the Gallaghers. All remaining performances were cancelled.

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America’s Senate narrowly passed Donald Trump’s “One, Big, Beautiful Bill”. Three Republicans defected, leaving the vote split at 50-50; J.D. Vance, the vice-president, broke the tie. The tax and spending measure, which runs to nearly 1,000 pages, must now clear the House, where changes made by the Senate could face opposition. Mr Trump wants Congress to pass the legislation before July 4th.


Meanwhile, British MPs voted 335-260 to advance Labour’s welfare bill—after the government offered last-minute concessions to party rebels. A controversial reform to disability benefits will be delayed at least until a review concludes next year. Sir Keir Starmer, the prime minister, had already significantly reduced planned welfare cuts after more than 120 Labour MPs turned against him. Forty-nine still voted against.


More than 160 NGOs and other charities called for the American-backed Gaza Humanitarian Foundation to be shut down. Since it started handing out aid to the territory in May, hundreds of Palestinians have been shot dead trying to gain access to its distribution hubs. Israel, accused of doing at least some of the shooting, supports the system, claiming that it stops aid going to Hamas.


Poland will introduce border checks on arrivals from Germany and Lithuania to stop “uncontrolled flows” within the Schengen free-travel area, said Donald Tusk, the prime minister. The temporary measures will begin on July 7th. Germany introduced emergency controls in 2023 and has since used them to send migrants back to Poland. Mr Tusk said that Poland’s patience was “running out” on the issue.


Switzerland will hold a referendum on a 50% inheritance tax on assets above 50m Swiss francs ($63m). The country currently has some of the lowest income taxes in Europe. Critics worry that the proposed tax would scare off super-rich taxpayers. But despite government opposition, activists have gathered enough signatures to put it to a plebiscite on November 30th.


Standard Chartered was slapped with a $2.7bn lawsuit in Singapore in the latest push to recover stolen funds in the 1MDB scandal. The British bank has been accused of helping hide money siphoned out of Malaysia’s sovereign wealth fund and laundered more than a decade ago. The outflow between 2009 and 2013 has been estimated at $4.5bn.


America’s Justice Department charged two Chinese nationals with acting as agents of the Chinese government. The pair are accused of gathering intelligence about American navy members and bases, as well as attempting to recruit people from the country’s armed forces to work with China. America’s attorney-general said the case underscored China’s “sustained and aggressive effort to infiltrate our military”.


Figure of the day: Three-quarters. The proportion of young Africans who say they cannot find adequate work.

Photograph: Alamy

Who will be the next Dalai Lama?

Tibetan Buddhists consider it inauspicious to discuss what happens after the Dalai Lama, their spiritual leader, dies. Some think it unnecessary since he remains in good health. Nonetheless on Wednesday, in the run-up to his 90th birthday on July 6th, he is expected to issue his most definitive statement yet on his succession plans. Tradition holds that, after his death, aides and senior lamas identify a child as his reincarnation. But the Dalai Lama may choose not to be reborn. He may also “emanate” as another person while still alive.

The only certainty is that China will dispute his decision. The country’s Communist Party, which seized Tibet in 1951, claims that it alone can approve the next Dalai Lama. It hopes the death of the current one, who fled to India in 1959, will curb international backing for his non-violent campaign for Tibet’s greater autonomy within China. And it plans to appoint a rival successor.


Photograph: EPA

The Middle East divides South America

On Wednesday President Javier Milei of Argentina (pictured) will host a summit of Mercosur, a customs union in the Southern Cone, with the region’s presidents. Last year the bloc agreed to a historic trade deal with the European Union. But the tone of the meeting is unlikely to be triumphant: the deal has not yet been fully ratified in Europe.

And tensions smoulder between the bloc’s heavyweights, the libertarian Mr Milei and the leftist Luiz Inácio Lula da Silva of Brazil, known as Lula. The two seldom speak. Their divergent view on the Middle East, in particular, will not make conversation any easier: Mr Milei is a forthright supporter of Israel; Lula is not. Both bang on about it. Lula may also visit Cristina Fernández de Kirchner, a leftist former president of Argentina, who is under house arrest after she was given a six-year sentence for corruption. The leaders of Uruguay, Paraguay and Bolivia would be happy to just chat about trade.


Photograph: AP

Russia’s party is over

Figures due out on Wednesday are expected to confirm that Russia’s economy is slowing. In 2023 it boomed, defying forecasts of a deep recession. Last year GDP grew by more than 4%. Oil exports surged and the government spent big on defence and welfare. Sanctions, what sanctions?

Now, though, growth has fallen to about 1%. That is in part due to tougher Western sanctions on oil exports. But domestic developments play a role, too. The central bank has raised interest rates to quell high inflation. As a result, consumers have pulled back on spending and companies on investment. And the government is taking its foot off the fiscal accelerator, in part because it no longer sees the need to continue to build up the military. Other statistics due out on Wednesday, from retail sales to real-wage growth, will reinforce the downbeat narrative.


Photograph: Alamy

Spain’s water-pistol moment

Last year a record 94m tourists visited Spain—nearly double the size of the country’s population. This year it is on track to receive even more visitors, as data for May, released on Wednesday, will probably confirm. In April Spain hosted almost 9m tourists, a tenth more than in the same month last year. They brought in €10.8bn ($12.8bn), contributing to Spain’s healthy economic growth.

But with the peak season about to begin not everyone is happy. Last year activists protested against “overtourism”. In one widely publicised incident young women shot water pistols at tourists tucking into their tapas on Barcelona’s famous las Ramblas. This year hard-left groups have already repeated the stunt. Although protests are sporadic, many Spaniards sympathise with them. Tourist apartments worsen an acute housing shortage and visitors choke pavements, they say. For the authorities, the challenge is to allay those concerns without strangling the tourist goose that lays the golden tortilla.


Photograph: Getty Images

Europe’s women footballers fight for the crown

Bookmakers have Spain as narrow favourites to win the UEFA Women’s Euro 2025, which kicks off on Wednesday in Switzerland. But England, Germany and France are close behind. Spain are the reigning world champions and have what looks like the strongest squad, which balances experienced players and fearless young talent. Midfielders Alexia Putellas and Aitana Bonmati have each won the Ballon d’Or Féminin, the award for the world’s best female player, twice in the last four years.

England won the previous Euros but have had a horrid build-up to the tournament with three important players retiring. Their coach, Sarina Wiegman, is however an expert at negotiating tournament football. Staggeringly, Germany lost only one knock-out match at the Euros between 1991 and 2007. And France, who draw players from some of the world’s best clubs, have until now been women’s football’s great underachievers. They have reached only one semi-final. This year they will have another very talented squad but also the toughest path to victory, with England, the Netherlands and Wales in their group.

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America’s Senate narrowly voted to advance a bill that would cement Donald Trump’s tax cuts and ramp up immigration and defence spending. Two Republicans voted against the controversial “Big Beautiful Bill”; several who earlier declined to back Mr Trump fell into line. Senate Republicans aim to pass the bill before July 4th, but it still faces significant hurdles.


Russia launched one of its biggest drone and missile attacks deep inside Ukrainian territory. A Ukrainian F-16 fighter jet was lost while helping to fend off the overnight assault; the pilot was killed after failing to eject. Ukraine’s armed forces said that they had downed 436 drones and 38 missiles, while six apparently got through.


The head of the United Nations’ nuclear watchdog said that Iran could start producing enriched uranium again “in a matter of months”. Rafael Grossi told CBS News that while it was clear American strikes against Iran’s nuclear facilities had caused “severe damage”, it was “not total”. Mr Trump insists Iran’s nuclear programme was “obliterated” and “set back decades”.


Israel’s army told residents in Gaza City and several other neighbourhoods in northern Gaza to evacuate and head south. An Israel Defence Forces spokesman said it was “operating with extreme force in these areas” and that operations were about to escalate. Hopes of a ceasefire may rest with Mr Trump, and his newly won leverage over Israel’s prime minister, Binyamin Netanyahu.


Donald Trump claimed that he has found a group of “very wealthy people” to buy TikTok. A federal law requiring the Chinese social-media platform to be sold (to a non-Chinese buyer) or banned (on grounds of national security) was paused by Mr Trump soon after he took office. Mr Trump said he would reveal the group in about two weeks.


Yoweri Museveni, Uganda’s long-serving, authoritarian president, announced that he would contest next January’s election. If he wins (which is not really in doubt), the 80-year-old will extend his rule to over 50 years. His ruling party has twice changed the constitution to allow Mr Museveni more terms of office. Human-right groups have often accused him of using the security forces to vanquish opposition to his rule.


Viktor Orban accused the EU of orchestrating an LGBTQ+ Pride march in Budapest on Saturday that he described as “repulsive”. Offering no evidence, Hungary’s hard-right prime minister said the EU had encouraged opposition politicians to turn the event into one of the biggest anti-government demonstrations of his rule. An estimated 100,000 participants defied a police ban to join the demonstration.


Figure of the day: $10bn, the amount a majority share in the LA Dodgers is being sold for. It still looks like a bargain.


Photograph: EPA

China’s economy defies the odds

The first half of this year has gone better for China’s economy than anyone could have expected a couple of months ago. Despite American tariffs, exports have continued to grow. And despite low consumer confidence, retail sales have picked up, thanks partly to a recent online shopping festival and government subsidies for consumers who trade-in old products for new. This week Citigroup, an American bank, raised its growth forecast for 2025 to from 4.2% in early April to 5%.

The purchasing-managers’ indices released on Monday by China’s statistics bureau are likely to confirm this stability, registering little change from May to June. But worries remain. The property market is still fragile and deflationary pressures linger. China’s steady growth could also lull the country’s policymakers into delaying further fiscal stimulus. The economy has started the year well. But if China’s leaders take too much encouragement from that fact, it may finish the year badly.


Photograph: Getty Images

Republicans push to deliver a bill

The end may be in sight for Donald Trump’s sprawling budget bill. Republicans in the Senate won a tricky preliminary vote late on Saturday, and could take a final poll as early as Monday. John Thune, the top Republican in the upper chamber, faced a daunting task: some of his members balked at the cost, others objected to the cuts to Medicaid (government health insurance for the poor). But a few last-minute tweaks—a fund to help rural hospitals, for example—appears to have helped pull a few sceptics back into line.

For months Donald Trump has been talking about passing the One Big Beautiful Bill Act by July 4th. But merging the Senate’s version with the one that the House of Representatives passed earlier could be harder still. More than a dozen congressmen have already said the Senate’s Medicaid cuts are a deal-breaker. There are more negotiations to come, probably even beyond Independence Day, before the saga ends.


Photograph: Getty Images

Back to the bloody impasse in Gaza

With the war between Israel and Iran apparently over, attention has returned to Gaza. Israel’s bloody offensive is dragging on into its 21st month amid reports that Israeli soldiers have been shooting at civilians trying to get food from the controversial distribution hubs of the Gaza Humanitarian Foundation. Hundreds have been killed, adding to a death-toll that surpasses 55,000.

Israeli forces now control around a third, or more, of the strip. The chief of staff of the Israel Defence Forces reckons that Israel will soon “reach the lines” of its aims in Gaza. But this contradicts the ambitions of the far-right parties in Israel’s government. They want to occupy Gaza in perpetuity. While Israel’s stance remains unclear, and Hamas still refuses to accept a 60-day truce, President Donald Trump has weighed in. He posted on his social media channel “MAKE THE DEAL IN GAZA. GET THE HOSTAGES BACK!!!” In Iran he succeeded in imposing a ceasefire this way. In Gaza it may be more difficult.


Photograph: EPA

Soured cream on the Wimbledon strawberries 

This year, like every year, Wimbledon will look pristine, blooming flowerbeds offsetting the crisp Ralph Lauren uniforms. But underneath the sheen, the tournament, which begins on Monday, faces complaints from some of its players. The Professional Tennis Players’ Association, an organisation co-founded by Novak Djokovic in 2020, is suing the sport’s governing bodies that set the rules and organise the calendar. The operators of the four grand slams, including the All England Lawn Tennis Club, which runs Wimbledon, are also named as “co-conspirators”.

The PTPA wants a shorter calendar and more prize money. It has a case. The off-season is just six weeks. Wimbledon paid out £50m to players in 2024, which is around 12% of the AELTC’s revenue. In America’s National Basketball Association and National Football League, collective bargaining agreements ensure that the players receive around 50% of total revenue. The PTPA has given the grand slams three months to negotiate before it adds them to its lawsuit.

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Iran’s foreign minister said there was “no room” for nuclear talks while Israel’s attacks continued, and that America was “a partner in these crimes”. His comments came shortly before European counterparts met Iranian officials. Israeli and Iranian militaries meanwhile continued to trade fire on Friday. Earlier Donald Trump said he would decide within two weeks whether to take military action against Iran.


British MPs voted to legalise assisted dying for some terminally ill adults in England and Wales. Proponents argued it offers a compassionate choice; critics warned it could erode safeguards for vulnerable people. The bill is not yet law: it will now be scrutinised by the House of Lords and, if passed, is not expected to be implemented before 2029.


A federal judge ordered the Trump administration to release on bail Mahmoud Khalil, a pro-Palestinian activist detained since March without being criminally charged. The judge had already said that the government’s argument for deporting Mr Khalil—that he poses a risk to America’s foreign policy—did not justify his detention. On Friday the judge said the government’s other allegations did not warrant it, either.


Separately, a federal judge indefinitely blocked the Trump administration’s effort to prevent Harvard University from enrolling foreign students. In May the Department of Homeland Security said it was revoking Harvard’s certification allowing it to host immigrants on student visas. The status of foreign students at Harvard is part of a larger war the administration is waging against the university.


After weeks of talks Nicusor Dan, Romania’s president, nominated Ilie Bolojan, the leader of the centre-right National Liberal Party, to be prime minister. Mr Bolojan served as acting president until Mr Dan won a surprise victory in May. His cabinet must be approved by Romania’s parliament; it will probably include the country’s four pro-EU parties.


Authorities in Rwanda arrested Victoire Ingabire, the leader of an opposition party, accusing her of plotting to incite public disorder and creating a criminal organisation. Ms Ingabire’s lawyers called the allegations “baseless and politically motivated”. She was previously jailed by the government of Paul Kagame, Rwanda’s longtime dictator, and lived in exile in the Netherlands until 2010.


France said it would invest €717m ($826m) in Eutelsat, a European competitor to Elon Musk’s satellite-communications service, Starlink. The French state will become Eutelsat’s biggest shareholder. European governments have been looking for alternatives to Mr Musk’s firm, which has become vital in supporting Ukraine’s armed forces. Eutelsat’s share price has risen almost three-fold since the end of February.


Word of the week: Guokao, the name of China’s national civil-service exam. Last year 3.4m people applied to take the test.


Photograph: Getty Images

The OIC is powerless on Israel’s wars

The summit of the Organisation of Islamic Co-operation, which begins in Istanbul on Saturday, will no doubt focus on Israel’s war with Iran. Abbas Araghchi, the Iranian foreign minister, is set to attend. Many of his counterparts from the OIC’s 57 member states are expected to call for an immediate ceasefire. But the war in Gaza, now in its 21st month, and the humanitarian crisis triggered by Israel’s blockade and relentless bombing of the strip, will be on the agenda as well.

The situation in Gaza is grim. Aid workers say that more Palestinians are killed while trying to collect food than in the actual fighting. According to Gaza’s health ministry, at least 59 people were killed on June 17th—Israeli tanks reportedly opened fire near an aid centre run by the Israel-backed Gaza Humanitarian Foundation. Israel’s armed forces said they would review the incident. The OIC has been powerless to stem the bloodshed in Gaza. It will probably fare no better in Iran.


Photograph: Getty Images

An anti-abortion gathering in Kansas

This weekend anti-abortion activists will meet outside Kansas City for the National Right to Life’s annual conference. The mood is mixed. Next week marks three years since the Supreme Court’s decision in Dobbs v Jackson Women’s Health Organisation, which overturned the federal right to abortion. Since then, 16 states have banned the procedure at or before six weeks.

Yet the number of abortions is rising. Recent data suggest nearly 98,000 procedures are performed each month, up from around 81,000 before Dobbs. So some campaigners are pressing lawmakers to go further. In at least 14 states legislation has been introduced that would punish abortion as murder and recognise fertilised eggs as full legal persons. Others are hoping for action at the federal level. Donald Trump has so far kept relatively shtum on abortion: he pardoned activists for conspiring to block access to clinics, but has not restricted the availability of abortion medication. For activists in Kansas, Dobbs’s third birthday will be bittersweet.


 

 

 

Photograph: AP

A zombie franchise returns from the dead

In 2002 “28 Days Later” let loose a zombie horde that has been shambling across the landscape of popular culture ever since. The British horror film inspired countless film and television series, including “The Walking Dead” and “The Last of Us”.

Now the film’s writer, Alex Garland, and director, Danny Boyle, have reunited for “28 Years Later” (“23 Years Later” would have been more accurate). The film-makers’ feelings about Brexit inspired the conceit: while the rest of the world is now free of the Rage Virus, which turns people into marauding homicidal maniacs, Britain is a quarantined, zombie-infested island.

The film stars Aaron Taylor-Johnson, Jodie Comer and Ralph Fiennes. There are plenty of breathless chases and grisly deaths. But “28 Years Later” is also a melancholy coming-of-age drama, an eerie rural folk-horror film and a smart state-of-the-nation satire. The zombies may be mindless, but the movie isn’t.


Photograph: Alamy

Celebrating the summer solstice

Four celestial events define the Earth’s seasons. On the two equinoxes, marking the start of spring and autumn, the planet’s orbit brings its equatorial plane closest to the Sun, so everywhere gets roughly 12 hours of daylight. On the two solstices, in late December and, this year, on Saturday, the sun is at its farthest from the equatorial plane. The northern hemisphere will experience its longest day, the summer solstice; the southern will have its shortest, inaugurating winter.

The solstices have long been occasions for celebration. Christmas probably absorbed pre-Christian winter-solstice festivities. People still mark the summer solstice. Midsummer is a significant holiday in Scandinavia, parts of which will not see the Sun set until August. Swedes dance flower-garlanded maypoles; Finns and Norwegians light bonfires. Across the Nordic region, people spend the holiday outside, under the midnight sun.


Photograph: Zuma/eyevine

Weekend profile: Ayatollah Ali Khamenei, Iran’s great survivor

Just over a week ago it seemed as if Iran’s supreme leader, Ayatollah Ali Khamenei, might be part of a breakthrough. Talks between Iran and America were approaching decision-hour. A nuclear deal seemed achievable. But things changed on June 13th, when Israel began launching air strikes on Iran’s nuclear facilities and its military leaders. The Islamic Republic has been battered. Now, while a diplomatic breakthrough is still possible, Mr Khamenei must worry about his regime breaking apart.

Mr Khamenei was born in 1939, one of eight children of a poor religious scholar from the north-east of Iran. He followed in his father’s footsteps and went to study in the city of Qom, the pre-eminent place of Shia scholarship. From the first he reasoned that God needed a helping hand from man to deliver. Alongside the Koran, he listened to music, recited poetry and read novels such as “Les Miserables” and “The Grapes of Wrath”, which depict a secular struggle against oppression.

The first positions he held after the Islamic Revolution in 1979 had little to do with God. He was deputy defence minister and a commissar in the newly formed Islamic Revolutionary Guard Corps (IRGC), the regime’s most powerful security force. In 1981 he won a tightly controlled election to become president of the republic. Obedient and uncharismatic, he was favoured by Ruhollah Khomeini, the father of the revolution. Mr Khamenei would hold the largely ceremonial post for eight years, winning re-election in 1985.

His opponents consistently underestimated him. After Khomeini’s death, the late cleric’s wily chief adviser, Ali Akbar Hashemi Rafsanjani, shoehorned Mr Khamenei into the post of supreme leader. Rafsanjani assumed what he anticipated would be an empowered presidency. But Mr Khamenei proved adept at playing Iran’s state institutions off against each other, turning himself into the final arbiter. And he had an inbuilt advantage over Rafsanjani and his successors as president, many of whom wanted to turn Iran into a more normal Islamic republic. Whereas they had a limit of two terms, he was appointed for life.

Over time, the contradictions of Mr Khamenei’s rule have grown more stark. He lives frugally, but heads a business empire worth tens of billions of dollars. While he celebrates Iran’s isolation from the cultural impurities of the West (he has visited America only once), most Iranians want to connect with the world. Women resent his enforcement of a dress code that requires them to wear a veil and black manteaux. Increasingly, Iran’s transformation from hybrid-democracy into dictatorship has stirred dissent.

At protests in recent years, participants have chanted not just for Mr Khamenei’s downfall, but for his death. His response has always been the same: beating, shooting, jailing and kangaroo courts. The lesson he took from the fall of the Shah during the Islamic Revolution was to never concede.

In his pursuit of power he has come to resemble the Shah. Many insiders have tipped his second son, Mojtaba, to be his successor. The war might scupper any such plans. If Mr Netanyahu doesn’t get him, his own security forces might. Tehran’s rumour mill is rife with talk of a new IRGC council which has taken the reins while Mr Khamenei is cloistered in a bunker for his safe-keeping. But his latest opponents would be wise not to underestimate him.

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Iran launched dozens of ballistic missiles against Israel in retaliation for an overnight attack. A spokesperson for Israel’s Defence Forces said that most fell short or were intercepted, reportedly with the help of America. At least 40 people were being treated for injuries in Tel Aviv and its surrounding areas, according to hospitals. Earlier Israel conducted a fresh wave of attacks on Iran, targeting “missile launchers and infrastructure”.


Israel Katz, the Israeli defence minister, said Iran’s strike on civilian areas “crossed a red line” and that Iran would “pay a very heavy price”. Meanwhile, in a video message recorded in English and Farsi, Mr Netanyahu urged Iranians to “stand up and let your voices be heard” because Iran’s regime “has never been weaker”.


Markets fell on Friday, with the Dow Jones Industrial Average, a stock index, closing down by 1.8% The price of Brent crude, a global benchmark, settled at around $74 a barrel—a 7% rise compared with the start of the day—after peaking at more than $78. Iran could disrupt the oil exports of Iraq, Kuwait and Saudi Arabia if it desires. The price of gold, a safe-haven asset, rose to near-record levels.


The International Atomic Energy Agency confirmed that Israel’s initial attack destroyed Iran’s above-ground nuclear enrichment plant in Natanz. Earlier the agency described the strikes as “deeply concerning”; Rafael Grossi, the head of the IAEA, asked “all parties to exercise maximum restraint”. Separately the Kremlin condemned Israel’s attack as a “dramatic escalation”. Saudi Arabia accused Israel of “blatant aggressions” against Iran.


After a day of back and forth in the courts, California’s National Guard remains under federal control, at least for now. A judge had earlier ordered that the 4,000-odd troops deployed by the Trump administration in Los Angeles be placed back under the control of California’s governor. An appeals court quickly stayed that decision and scheduled another hearing for Tuesday.


Britain’s Supreme Court dismissed a case in which private schools and parents of students accused the Labour government of violating their human rights with a value-added tax on fees. The 20% levy was introduced on January 1st. The court said the argument, despite being “superficially attractive”, did not “withstand analysis”.


Narendra Modi, India’s prime minister, visited the site where a Boeing 787-8 Dreamliner plane crashed on Thursday, killing more than 260 people. One passenger survived the Air India flight, which was heading to London. The aircraft crashed shortly after take-off from Ahmedabad, a city in west India. The tragedy will hinder Boeing’s efforts to recover from years of reputational damage after crashes involving its other planes.


Word of the week: Coca machucada, an amped-up version of the coca leaf.


Photograph: Getty Images

Iran has few good responses to Israel

Ali Khamenei, Iran’s supreme leader, promised that Israel would face “severe punishment” for air strikes on Friday that knocked out its air defences, damaged its nuclear-enrichment facility at Natanz and decapitated its military. Late on Friday it launched a barrage of ballistic missiles, sending Israelis across the country heading for bomb shelters.

More exchanges of fire will follow. Israel has promised a wave of strikes lasting for weeks, presumably targeting more of Iran’s nuclear sites. Iran will want to hit back—both to avenge a humiliated regime and to compel Israel to stop. It has few good options. If its response is too weak, it will not deter Israel; too strong, and it might draw America into the war. The least risky course of action is to carry out further missile-and-drone attacks to wear down Israeli defences. But it can no longer rely on allied militias in the region: Hizbullah in Lebanon and Hamas in Gaza are exhausted by their own fronts with Israel.


Photograph: Getty Images

What might happen to oil prices?

The Middle East has been a tense place for the past two years. But so long as a full-blown war between Israel and Iran was avoided, oil prices remained calm. That all changed when Israel launched its offensive on Friday. Further attacks threaten to inflame the Gulf, which pumps a third of the world’s oil. How high might prices go?

In the case of de-escalation, the risk premium would evaporate, leaving Brent prices between $65 and $70 a barrel, according to experts contacted by The Economist. A more probable continued tit-for-tat would hurt the Iranian oil supply, nudging up prices by a few more dollars. But in more desperate scenarios, such as if Iran were to shut the Strait of Hormuz, through which 30% of the world’s seaborne crude and 20% of its liquid natural gas travel, Brent may rush past $100. Worse still, if Iran were to bomb the Gulf’s largest oil-production sites, $120 could be in sight.

 

 
 

Photograph: EPA

Trump’s birthday clash

On Saturday America will celebrate 250 years of its army. June 14th is also the day that America officially adopted the stars and stripes as its flag. And, serendipitously for Donald Trump, it is his 79th birthday. The president has promised a “spectacular” military parade in Washington, DC. While 7,000 soldiers march, he has said, “thundering tanks and breathtaking flyovers will roar through our capital city”. The price tag is certainly spectacular—up to $45m, according to estimates by defence officials.

Many plan to RSVP to a very different event. At least 1,500 anti-Trump “No Kings” protests are planned across America and elsewhere in the world to counter the parade. Organisers expect millions to turn out, with attendance doubtless boosted by outrage over Mr Trump’s deployment of troops to Los Angeles. The president is not keen on the competition. This week he warned that protesters would be “met with very big force”.


Photograph: Getty Images

Ferrari defends its title at Le Mans

The 24 Hours of Le Mans takes place in France on Saturday. The race is the most prestigious of motor racing’s endurance events, held annually since 1923 (with a roughly ten-year hiatus in the 1930s and 40s because of labour strikes and war). The team that covers the most distance in one day wins.

Ferrari (whose biggest shareholder, Exor, also part-owns The Economist’s parent company) was one of the most successful teams at Le Mans in the event’s early years; it won the first time that it competed, in 1949. But Ferrari stepped back from endurance racing in 1973 to focus entirely on Formula One. In 2023 the team returned to compete in the new hypercar category, which permits a broader design brief. That year one of Ferrari’s two teams delivered a stunning victory over Toyota, which had dominated in recent years, and prevailed again in 2024. Ferrari will be hoping to secure an unlikely hat trick.


Photograph: AP

Weekend profile: Gavin Newsom, a governor with an opportunity 

Normally, Gavin Newsom is loose. The Democratic governor of California talks with a staccato cadence, often flitting from one incomplete thought to the next. But on June 10th he was clear and direct. “This brazen abuse of power by a sitting president inflamed a combustible situation,” he said during a televised address after President Donald Trump deployed nearly 5,000 troops to Los Angeles to quell protests over immigration raids.

Mr Newsom was already a national figure. But the protests give him the chance to establish—or damage—his credentials. Born in 1967, he is a fourth-generation San Franciscan. His father was a lawyer before becoming a judge. His parents divorced when he was young and Mr Newsom often talks about his mother working at several jobs to raise him and his younger sister. Dyslexia meant that he struggled in school; he went to university on a partial baseball scholarship.

In the late 1990s and early 2000s he rose through San Francisco’s cut-throat, Democrat-dominated politics. Republicans now paint Mr Newsom as a bleeding-heart liberal, but in true blue San Francisco he was considered a moderate, pro-business Democrat. But he was still provocative. After he was elected mayor in 2003, Mr Newsom issued marriage licences to same-sex couples at City Hall even though state law defined marriage as a contract between a man and a woman. Republicans used the episode to convince social conservatives to vote against John Kerry, the Democratic candidate in the 2004 presidential race.

After eight years as lieutenant-governor, he was elected in 2018 to California’s top job, and won re-election in 2022. The governor’s podcast, first aired in March, has Californians wondering how he has so much free time. In “This is Gavin Newsom”, he asks right-wingers and Democrats alike where his party went wrong in 2024. Progressives are suspicious that Mr Newsom’s chummy conversations with MAGA leaders are a bald attempt to try to win back the bro vote, and presage a move to the centre ahead of a possible presidential run in 2028.

Certainly, Mr Trump’s deployment of troops to Los Angeles—which one federal judge has ruled is illegal—offers Mr Newsom a political opportunity. The president looks reckless; the governor, like a responsible adult. By condemning violence and trying to safe-guard Californians’ right to protest, he is striking a balance that could resonate with Americans beyond the Golden State, and perhaps help unite a Democratic Party that has seemed fractured and aimless since 2024.

But Mr Trump will try to convince Americans that the governor is protecting dangerous illegal immigrants from deportation. Scenes of disorder and burning cars in LA fit a narrative some Republicans have been pushing for years: that Democratic-run cities are lawless, and their leaders irresponsible. Mr Newsom is concentrating on his home state now, but 2028 isn’t far away.

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