Iran floats nuclear inspections for sanctions relief as tanker burns in Hormuz

PM Andy Burnham said Britain has "strong indications" Iran's state was involved in a security incident at RAF Fairford, which US forces use to strike Iran. Police arrested a 27-year-old UK-Iranian man in Westminster on suspicion of preparing terrorist acts. Iran denied involvement and summoned Britain's ambassador. Trump said the US must make a deal with Iran or "blow them up", with stronger strikes possible after the November midterms.

Iraq's Foreign Ministry thanked the US and other "friendly countries", saying Baghdad takes full responsibility for its security. Kataib Hezbollah said it will suspend military activity in Iraq except against "hostile aircraft". Iraq has drafted a plan to disarm all armed groups by June 2027. PM Ali al-Zaidi vowed Iraq will not be a launchpad against its neighbours. Kurdish Peshmerga factions have merged into one force. Analysts fear militias and Islamic State could fill the vacuum.

Global bond markets sold off further, driven by fears that high oil prices will keep inflation up and that US deficits are unsustainable. The US 10-year Treasury yield hit its highest since 2002 after Treasuries' worst quarter since 1994. UK 30-year borrowing costs passed 6% for the first time since 1998. US mortgage rates topped 7%, the biggest weekly jump in four years. UK banks tumbled, and the US KBW Bank Index hit its lowest since late May.

Russia launched its largest attack on Ukrainian energy infrastructure since spring, killing at least six people. Strikes continued overnight into Thursday, damaging infrastructure in Kyiv and Odesa. Russian drones then hit a major Kyiv bridge in daylight for the first time in the war, along with a school. Ukraine says it struck an oil facility in Russia's Samara region. Putin ruled out a ceasefire in a Moscow speech, saying Russia would use every weapon, including nuclear, to defend Kaliningrad.

The US Supreme Court overturned an appeals court stay that had stalled Tennessee's first execution of a woman in 200 years, but officials could not carry it out. Pike, convicted of a 1995 murder, was still awake and snoring about 40 minutes after two doses of pentobarbital, witnesses said; her lawyers said she was alive and receiving life-saving care in hospital. Governor Bill Lee, who called it "a tragedy", suspended executions until at least year-end and ordered an independent inquiry.

A Flydubai Boeing 737 Max 8 bound for Tel Aviv with 174 passengers dropped about 17,000 feet after the Omani co-pilot stabbed the captain, Smit Machchhar, who is recovering and was hailed as a hero. Passengers and crew overpowered the attacker, and the plane landed safely at Tabuk, Saudi Arabia. Netanyahu, who first urged caution, later said the attacker had undergone Islamist radical indoctrination and meant to down the plane. The UAE is probing a possible terrorist link.