Nato summit faces tricky diplomacy with Trump over his defense spending demands | First Thing

• Iranian Foreign Minister Abbas Araghchi stated on Tuesday that negotiations with the United States regarding a final deal will not commence if threats against Iran persist. • Araghchi referenced part 13 of the Tehran-Washington memorandum of understanding on X, emphasizing that the terms for starting talks are clear.

• Central banks are reassessing their interest rate trajectories following military confrontations between the United States, Israel, and Iran. • Despite a fragile ceasefire, policymakers are concerned that inflationary pressures are proving more persistent than previously forecasted.

• Despite escalating public rhetoric, a diplomatic deal between the U.S. and Iran remains likely following the signing of an interim memorandum of understanding. • The current 60-day window is expected to be characterized by fluctuating tensions and occasional diplomatic friction as both parties negotiate.

• An oil tanker caught fire after being struck by an "unknown projectile" while transiting the Strait of Hormuz off the coast of Oman. • The United States has accused Iran of attacking two commercial ships, leading the U.S. to consider a potential counter strike.

• Foreign Secretary Yvette Cooper published an essay via Chatham House outlining Britain's strategic approach to a "storm" of geopolitical instability, AI risks, and climate change. • The proposal emphasizes the need for the UK to work more closely with European partners and seek expanded cooperation beyond traditional large trading blocs.

• The United Nations warned on Monday that Afghanistan is currently facing one of the world's largest displacement crises due to poverty, climate shocks, and decades of conflict. • A recent UNDP socioeconomic review highlights that the return of approximately 2.7 million Afghans is placing immense pressure on the country's fragile economy and public services.

• A tanker was set on fire in the Strait of Hormuz after being struck by a projectile, escalating tensions in a critical global shipping lane. • The incident coincides with a period of national mourning in Iran following the death of Supreme Leader Ayatollah Ali Khamenei.

• Iranian missiles reportedly struck two commercial ships in the Gulf, according to a U.S. official. • The attacks occurred amid a fragile cease-fire, though Iranian officials have not yet issued an official comment on the strikes.

• The House of Commons is scheduled to hold a debate on UK rearmament and warfighting readiness on Wednesday, July 8, 2026. • The session will focus on the current state of defense programs and the UK's capacity to maintain operational readiness for potential conflict.

• Afghanistan continues to be one of the world's most severe humanitarian crises, as reported by the United Nations. • In 2025, approximately 22.9 million people—nearly half of the total population—required urgent humanitarian assistance.

• A tanker was set on fire in the Strait of Hormuz after being struck by a projectile, marking a significant escalation in regional maritime tensions. • The attack coincides with a period of national mourning in Iran following the death of Supreme Leader Ayatollah Ali Khamenei.

A look at the the case, the appeal court decision, and how it could affect the race to succeed Emmanuel MacronA Paris court has delivered a ruling on Marine Le Pen’s appeal against her conviction for embezzlement of public funds that could – at least in principle – allow France’s far-right figurehead to run in next year’s presidential election.Here is a look at the ruling, the case that led up to it – and what the court’s decision means for the race to succeed Emmanuel Macron as French president. Continue reading...