France may tax sectors profiting from Iran war energy surge

NATO chief Mark Rutte said freedom of navigation in the Strait of Hormuz was an issue for all NATO allies, though “maybe not for NATO as an alliance,” Reuters reported.

Speaking ahead of a NATO meeting in Helsingborg, Sweden, Rutte also welcomed President Donald Trump’s decision to send 5,000 US troops to Poland.

He said the United States would continue to play a key role in Europe’s nuclear and conventional defense, but added that Europe would have to step up gradually.

“Let’s be clear: the trajectory we are on – which is a stronger Europe and a stronger NATO, making sure we will over time, step by step, be less reliant on one ally only ... will continue,” Rutte told reporters.

Estonian Foreign Minister Margus Tsahkna said it was up to Washington to decide US troop levels in Europe, but added that it was clear Europe must take on a greater defense role.

Iran may be planning a surprise missile and drone attack against Israel and Persian Gulf states, Israeli intelligence officials warned, the Jerusalem Post reported.

The warning was raised during a situational assessment with senior Israeli military officials and Defense Minister Israel Katz, according to the report.

Israeli security officials said Tehran could try to act before the United States and Israel conclude that diplomacy is no longer viable and move toward military action.

The report said the warning comes as the United States and Iran continue ceasefire negotiations and as President Donald Trump and Israeli Prime Minister Benjamin Netanyahu reportedly differ over how to proceed with Tehran.

Israeli military officials have held discussions with American counterparts to improve readiness, including sharing intelligence on unusual Iranian activity, the report said.

IDF Chief of Staff Lt. Gen. Eyal Zamir also held security briefings with military commanders and maintained contact with US counterparts to coordinate a possible response in the event of an Iranian attack.

The report added that US military equipment transfers to Israel have increased sharply over the past month.

Iran has held talks with Oman about charging fees from ships passing through the Strait of Hormuz, with Muscat potentially sharing in the profits, The New York Times reported, citing people familiar with the discussions.

The report said the talks focused on fees for services provided to vessels, rather than tolls charged for transit itself, which would be illegal under international law.

The New York Times said Oman, a US ally, initially dismissed the idea of partnering with Iran in the waterway but has more recently seen potential benefit in the plan.

The report, citing Iranian officials, said Oman had expressed willingness to raise the proposal with Persian Gulf neighbors and the United States, even as Washington pushes for freedom of navigation to be restored in the blockaded strait.

US Central Command said US Navy fighter jets launched from the aircraft carrier USS Abraham Lincoln in the Arabian Sea as its carrier strike group enforced the US blockade against Iranian ports.

CENTCOM said in a post on X that the Abraham Lincoln Carrier Strike Group was maintaining “peak readiness” during the operation.

European AI-linked stocks have rallied sharply even as the Iran war weighs on the region’s broader markets and economic outlook, Reuters reported.

Research from TS Lombard showed two baskets of AI-related European shares accounted for more than two-thirds of the positive performance in European stocks over the past month and a half.

“The performance of our EU AI baskets since April is on par with the Nasdaq, just a touch behind Taiwan,” TS Lombard’s Davide Oneglia said. “Look through macro chaos and don’t ignore European AI winners.”

One TS Lombard basket covering semiconductor supply-chain firms such as ASML, Infineon and STMicroelectronics has risen about 20% since the start of April.

Another basket focused on AI infrastructure, including data centers and firms such as Schneider Electric and Prysmian, is up around 22%.

The rally comes as the Iran war has darkened the outlook for European equities, with euro zone economic activity falling in May at its sharpest rate in more than two-and-a-half years.

Reuters said the STOXX 600 has fallen just over 2% since the Iran war began on February 28, while European tech shares have surged 10% and this week reached their highest level since 2000.