Iran-US war latest: Oil prices jump after Trump says Tehran’s response to peace plan is ‘totally unacceptable’

Britain faces a projected loss of 163,000 jobs this year, with lower-income regions set to bear the brunt of the economic fallout from the Iran war, a new report warns.

The Item Club’s latest regional outlook highlights South Wales and the Humber, two of the UK’s most economically vulnerable areas, as those most likely to endure severe job market difficulties over the coming year.

These regions, heavily reliant on manufacturing and construction, are particularly susceptible to the sharp energy price increases and supply chain disruptions stemming from the Middle East conflict. The report forecasts job reductions of 5,700 in South Wales and 2,800 in the Humber by 2026.

Tim Lyne, economic adviser to the Item Club, explained: “Some of the lowest income regions will feel the biggest effects of the manufacturing and construction sectors reducing headcount in the face of rising energy prices and supply chain disruption. While consumers in these areas typically have less rainy-day savings, which will reduce spending in the retail and hospitality sectors.”

Overall, the report predicts a 0.4% decline in UK employment this year, equating to 163,000 net job losses. This downturn is attributed to a pullback in consumer spending, escalating costs for fuel, energy, materials, and ingredients, alongside significant shipping disruptions.

​Iran executed a man convicted of spying for ⁠the US and Israeli intelligence services, the judiciary’s Mizan ⁠news ​outlet reported ⁠on Monday.

Mizan identified ⁠the man as ​Erfan ⁠Shakourzadeh, saying ‌he had worked at a scientific organisation ‌involved in ‌satellite activities and had shared classified ⁠scientific information with foreign intelligence services.

According to rights group Iran Human Rights Society, Shakourzadeh, a 29-year-old ‌graduate of ​aerospace engineering, was ‌arrested in ⁠2025 and ⁠was forced into his ‌confession.

The stern of a bulk carrier operated by South Korean shipper HMM, was struck by two unidentified objects on ⁠4 May while stranded in the Strait of Hormuz, the foreign ministry said on Sunday.

A week ago, Seoul reported a blast and fire aboard the same vessel, the HMM Namu, in the strait, while anchored ⁠near the United Arab Emirates. ​No ⁠one was harmed in the incident.

US president Donald Trump said at the time the incident was caused ⁠by an Iranian attack.

Seoul was investigating the incident, ​and ⁠the vessel was towed to a ‌port in Dubai after the blaze on Monday, while an on-site inspection was conducted on Friday.

It was not ‌certain what the objects were, though ‌they were captured on surveillance camera, the ministry said. Authorities said debris would be collected at the site for analysis.

The objects hit the left stern at around 3.30pm Monday, Park Il, the ministry’s spokesperson said on Sunday.

The strike caused a blaze that damaged a 7-by-5-metre area, Park said, adding that the incident was unlikely to have been caused by a sea mine or any problems ‌with the vessel’s engine, generator or boiler.

“We assume the ​cause of the fire was irrelevant to ‌internal issues on the ship,” ⁠he said.

South Korea was in contact with relevant ⁠countries, including Iran, over the incident, Park said.

Iran has denied responsibility. It ‌did not immediately respond ​to a request for comment ‌on the objects outside ​of normal business hours.

US president Donald Trump is expected to press Chinese President Xi Jinping over Beijing’s ties with Iran during summit talks in Beijing this week, according to the Financial Times.

Trump is expected to raise concerns over China’s alleged support for Tehran, including exports of dual-use technology and possible weapons-related assistance, as efforts to secure a ceasefire in the Iran war remain unresolved.

The leaders are also expected to discuss Taiwan, artificial intelligence, trade tensions and nuclear arms issues, the report said.

“I would expect the president to apply pressure,” a US official told reporters in a briefing.

“I expect that conversation to continue. I think you’ve seen some actions, meaning sanctions, coming out from the US side just in the last few days that I’m sure will be part of that conversation,” the official added.

A very large crude carrier (VLCC) bound for Vietnam and carrying Iraqi crude successfully crossed the Strait of Hormuz on Sunday through a route designated by Iran, according to Iran’s Tasnim news agency.

The transit comes amid continued tensions in the strategic waterway, which has seen disruptions and heightened military activity linked to the Iran war.

Indian prime minister Narendra Modi on Sunday urged Indians to conserve fuel, limit non-essential imports and reduce overseas travel as soaring global energy prices place pressure on the country’s foreign exchange reserves.

Speaking amid concerns over rising oil prices, Modi encouraged a return to work-from-home practices and online meetings adopted during the Covid-19 pandemic, saying the measures would help reduce fuel consumption.

“In the current situation, we must place great emphasis on saving foreign exchange,” Modi said, while also urging people to use public transport such as the metro and to carpool where possible.

India, the world’s third-largest importer and consumer of oil, has so far avoided raising diesel and petrol prices despite the global surge in energy costs.

Modi also called on people to avoid buying gold, particularly during the wedding season, and to cut non-essential foreign travel for at least a year to help conserve foreign exchange reserves.

He further urged families to reduce cooking oil consumption, describing the move as both healthy and patriotic.

Iran’s football federation said on Saturday the country will “definitely” participate in the 2026 Fifa World Cup and insisted that the tournament’s hosts – the United States, Canada and Mexico – consider Tehran’s concerns around the team’s travel and how it will be treated.

“All players and technical staff, especially those who served their military service in the Islamic Revolutionary Guard Corps, should be granted visas without problems,” Football Federation Islamic Republic of Iran president Mehdi Taj said, according to Iranian media.

The team represents a country in a fragile ceasefire with the United States after the US and Israel sparked a war with attacks on Iran on 28 February, and whose citizens are subject to a travel ban imposed by the Trump administration.

Israeli attacks across Lebanon killed at least 51 people in the past 24 hours, including two medical workers, according to Lebanon’s health ministry, despite a US-brokered ceasefire now entering its third week.

The ministry accused Israel of directly targeting two Health Authority locations in Qalawiya and Tibnin in the Bint Jbeil district, saying the attacks violated international humanitarian law.

Lebanese authorities say 2,846 people have been killed since Israel launched a new military operation on 2 March.

The United Nations says at least 103 Lebanese medical workers have been killed and 230 wounded in more than 130 Israeli strikes since then.

“We’re under threat every second, every day,” Ali Safiuddin, head of the Lebanese civil defence in Tyre, told Al Jazeera. “We ask ourselves if we’re going to survive or if we’re going to die.”

More than 1.2 million people have been displaced in Lebanon since 2 March, with attacks continuing despite the 16 April ceasefire.

Iran has issued a stark warning to Britain, urging it not to “escalate the crisis” in the Middle East by sending warships to the Strait of Hormuz.

Iran’s deputy foreign minister said that the presence of French and British warships in the key shipping route, effectively controlled by Tehran in retaliation for US and Israeli attacks, “will be met with a decisive and immediate response”.

It comes after the UK’s Ministry of Defence (MoD) said the Royal Navy was sending the HMS Dragon warship to the Middle East, where it could join an international mission to safeguard shipping in the Strait of Hormuz.