US preparing for possible Iran strikes, potentially this weekend - BBG

Iranian authorities arrested 18 people in the northeastern city of Mashhad, Iranian state media reported on Thursday local time, accusing them of designing and manufacturing drones for Israel.

According to a report by Revolutionary Guards-affiliated Fars News, the suspects were allegedly operating under the cover of local workshops as they produced surveillance and suicide drones on Israel's behalf.

The US military has withdrawn some aircraft and ships from Mideast bases due to their vulnerability to a potential Iranian attack, Reuters reported on Wednesday citing two US officials.

Ships had been moved from a Bahrain naval bases and fighter planes which could not be placed in reinforced shelters were relocated from the al-Udeid air force base in Qatar, Reuters cited the sources as saying.

Israel told the Trump administration that while its munitions may not be able to reach deep enough into Iran's Fordow underground nuclear facility, Israel may "do it with humans", Axios reported citing a US official.

Here's a brief summary of major developments as the conflict entered its sixth day.

President Trump gives "ultimate ultimatum"

• US President Donald Trump said Wednesday the Islamic Republic's downfall was possible. Trump added he seeks “total and complete victory,” not a ceasefire.
• The US President said he had given Iran the "ultimate ultimatum".
• Iran has expressed interest in negotiating, Trump said on Wednesday.
• Trump said Tehran had even proposed a visit to the White House. “They should have negotiated sooner,” Trump said.
• The US President was growing more comfortable with bombing Iran's Fordow nuclear site, ABC News reported citing a source familiar with the intelligence.

Khamenei warns US of pain

• Iran’s Supreme Leader appeared in a defiant video address.
• Ali Khamenei said a US military intervention would result in “irreparable damage".
• Khamenei rejected Trump's call for Iran to surrender the previous day.
• Iran's Foreign Minister Abbas Araghchi lashed out at Israel but said diplomacy was still possible, in an apparent reference to the United States.

Mutual blows continue

• Israel's military said it continued to target Iran’s military capabilities.
• Israeli strikes over the past day hit 60 locations, a spokesman said, including centrifuge and anti-tank missile production sites in and around Tehran.
• Iran continued to launch missile salvos at Israel, albeit at less intensity.
• Residents reported huge explosions in Isfahan, Shiraz and Kermanshah.
• Iran has launched around 400 ballistic missiles and 1,000 drones at Israel since the conflict began on Friday, CNN cited a senior Israeli military official as saying.
• The IAEA confirmed Israeli air strikes hit two Iranian centrifuge production sites, the TESA Karaj workshop and the Tehran Research Center.

US military readied, Congress to be briefed

• US Defense Secretary Pete Hegseth said the military was ready for any scenario, including the fallout from a potential attack on Iran.
• Hegseth said the US military is prepared to execute any decision President Donald Trump makes regarding war or peace.
• An aide to Senate Democratic Leader Chuck Schumer said senators would be briefed on Iran in a classified session early next week.

US moves assets to Mideast

• The USS Ford Carrier Strike Group is set to deploy into the eastern Mediterranean near Israel, CNN reported citing US officials.
• The United States has deployed more than 30 aerial refueling tankers to the Middle East.

Israel touts wins

• Israeli Prime Minister Benjamin Netanyahu said Israel controlled Iran's skies.
• The country's pilots, Netanyahu added, were striking at nuclear and missile sites.
• Israel's Defense Minister Israel Katz said the air force had destroyed the headquarters of Iran’s internal security agency.

Iran warns of retaliation to US

• Iran’s UN envoy in Geneva warned that Tehran would retaliate against the United States if it detects American involvement in Israeli attacks.
• Iran’s Revolutionary Guards warned Israelis to flee or risk being trapped in bomb shelters under missile fire.
• A senior Iranian official Mojtaba Ranjbar said the United States targets the Supreme Leader, Iran would strike Washington and New York.
• Iran’s UN mission in New York rejected President Donald Trump’s statement that Iranian officials proposed a visit to the White House.

Diplomacy quickens

• Foreign Minister Abbas Araghchi would accept a meeting to discuss a ceasefire with Israel, the New York Times cited a senior Iranian official as saying.
• Russia’s President Vladimir Putin said Moscow had presented ideas for a settlement to Iran, Israel and the United States.
• Russian Deputy Foreign Minister Sergei Ryabkov cautioned on Wednesday that direct US military assistance to Israel could sharply destabilize the Middle East.
• UK Prime Minister Keir Starmer warned his cabinet to prepare for a potential US military strike on Iran, the Financial Times cited British officials as saying.
• Foreign ministers from Germany, France, and Britain will meet their Iranian counterpart in Geneva on Friday for nuclear talks, Reuters cited a German diplomatic source as saying
• IAEA Director General Rafael Grossi told Bloomberg the UN nuclear watchdog can no longer verify the location or security of Iran’s highly enriched uranium.

State TV hacked, internet down

• Iran’s state broadcaster was hacked Wednesday night and videos calling for street protests briefly aired.
• Iran's Cybersecurity Command said it had thwarted a major cyberattack targeting the country’s banking system
• Armed Revolutionary Guard forces took control of Iran’s state broadcaster compound in Tehran following an Israeli airstrike, tightening security.
• Iran’s exiled prince Reza Pahlavi said The Islamic Republic is in its final phase, urging support for a peaceful transition led by Iranians.
• Several buildings near the headquarters of the Law Enforcement Command (FARAJA) were attacked wounding several offices, Iranian authorities said.