Following the strikes this weekend, everyone has suddenly become an expert in interpreting satellite imagery, as well as in identifying all manner of warplanes and munitions. Television channels, influencers, commentators, and newspapers alike were saturated with coverage - it was almost impossible to avoid the news.

Mr “I'll give myself two weeks” ultimately allowed himself just 48 hours before ordering strikes on Iran. In a meticulously planned operation, the United States launched a large-scale assault on three key sites linked to Iran's nuclear programme, deploying a combination of air strikes and cruise missiles. The damage appears to be substantial, though the condition of the deeply buried underground facilities remains unclear. The Americans employed enormous bunker-buster bombs - designed to pierce unprecedented layers of reinforced protection - which have been the subject of extensive media coverage in recent days.

Donald Trump has suggested that the United States will not go beyond destroying Iran's nuclear capabilities. He revived his favorite slogan, transforming MAGA into MIGA: Make Iran Great Again. While claiming that it is not politically correct to advocate regime change, he suggested that the current regime is incapable of making the country prosper. This is a clever, if elementary, way of pushing the Iranian people to increase pressure on a ruling class already weakened by its inability to prevent its historic rival Israel and its ally from doing as they please within the country's borders.

On the financial markets, the US attack triggered relatively conventional mechanisms, but without excessive volatility. Oil prices rose, but without skyrocketing. The price of gold rose slightly. The Tel Aviv stock exchange hit a record high. The dollar regained some ground because it remains, despite everything, a safe haven asset. However, investors classified the US's entry into the fray as a predictable event and were not thrown off balance. Iran's military power deficit seems to rule out a conventional response. Tehran is all the more isolated given that the US has built up a fairly solid network of alliances among Arab countries in recent years and that Russia does not seem inclined to support its ally. Moscow has "strongly condemned" the US attack, but clearly has no intention, nor the means, to provide Iran with outright and massive support.

Tehran's most obvious response is through oil and the Strait of Hormuz, a transit point for some of the oil and gas used around the world. So far, access to the Persian Gulf has not been significantly impeded, but two supertankers decided to turn back this weekend while waiting for a better overview of the situation.

The situation in Iran is dominating global headlines at the start of this week, but we must not forget that the deadline for Donald Trump's ultimatum to dozens of countries regarding tariffs is approaching. On the weekly agenda are June PMI activity indicators for the major economies today and US PCE inflation on Friday. In between, Fed Chairman Jerome Powell will face Congress on Tuesday and Wednesday for his mid-year testimony. The corporate calendar includes a few companies with unconventional reporting dates, such as Prosus, Fedex, Micron, and Nike.

In Asia Pacific, markets are down at the start of the week. Taiwan (-1.1%) and India (-0.8%) are the two worst-hit markets. Declines are limited to 0.1%/0.3% in Australia, South Korea, and Japan. In Hong Kong, the Hang Seng is up 0.1%. Futures are down for Europe and the US.

Today's economic highlights:

On today's agenda: Japan's PMIs, followed by those from France, Germany, the Eurozone, and the United Kingdom; In the United States, the PMIs will be accompanied by existing home sales. See the full calendar here.

  • GBP / USD: US$1.34
  • Gold: US$3,358.73
  • Crude Oil (BRENT): US$78.28
  • United States 10 years: 4.39%
  • BITCOIN: US$102,103

In corporate news:

  • NatWest Group PLC executives sold shares worth GBP 465,000.
  • Rolls-Royce is being lobbied by the UK to have its engines adopted by South Korea for new fighter jets.
  • NATO has raised its defense spending target to 5% of GDP for member countries.
  • Prada CEO Gianfranco D'Attis is set to resign.
  • Dalata Hotel's budget increased following acquisition interest from Pandox and Eiendomsspar.
  • Bilfinger will replace Tietoevry in the Stoxx Europe 600 index in June.
  • Rheinmetall has replaced Kering in the EuroStoxx 50 index.
  • Tesla launched a limited robotaxi service in Austin, Texas, emphasizing safety and facing regulatory challenges.
  • News Corp extended CEO Robert Thomson's contract until June 2030.
  • Bank of New York Mellon approached Northern Trust for potential merger discussions.
  • Wolfspeed is set to file for bankruptcy following a restructuring agreement.

See more news from UK listed companies here

Analyst Recommendations:

  • Londonmetric Property Plc: Stifel maintains its buy recommendation and raises the target price from GBX 200 to GBX 225.
  • Breedon Group Plc: Goodbody maintains its buy recommendation and reduces the target price from 6 to GBP 5.50.
  • Halma Plc: Rothschild & Co Redburn maintains its buy recommendation and raises the target price from 2845 to GBX 3440.
  • B&M European Value Retail S.a.: Investec maintains its buy recommendation and reduces the target price from 530 to GBX 500.
  • The Berkeley Group Holdings Plc: Berenberg maintains its buy recommendation and reduces the target price from GBX 5500 to GBX 5000.
  • Serica Energy Plc: Shore Capital initiates a Buy recommendation with a target price of GBX 221.
  • Pearson Plc: Barclays maintains its equalweight recommendation with a target price reduced from 12.50 to GBP 11.05.
  • Diageo Plc: Morgan Stanley maintains its underweight recommendation and raises the target price from 99 to USD 100.
  • Rentokil Initial Plc: JP Morgan maintains its neutral recommendation and reduces the target price from 4.10 to GBP 3.95.
  • Diploma Plc: Jefferies remains at a hold recommendation with a price target raised from 3950 to GBX 4500.