UK May seasonally adjusted trade balance -£1.044 bln, prior -£8.435 bln.

The Fed's Beige reports U.S. price levels rose modestly. Of 12 Fed districts, nine reported moderate price increases, two reported stronger gains and one reported smaller gains; overall momentum was unchanged or slower versus the prior period. Higher energy, transport and raw-material costs lifted business input prices; some firms cited the Middle East conflict and tariffs as contributors. Consumer prices continued to climb and some firms reported margin compression. Outlooks on inflation diverged—some expect inflation to remain near current levels, while others said falling fuel prices could ease pressure.

Conflict Update 1. Iranian official: New US airstrikes have injured over 260 Iranians. 2. US again attacks Chabahar port maritime traffic control center. 3. Israeli military: Two Hamas "Nuhba" force commanders killed in airstrikes in northern Gaza. 4. US military: The operation against Iran took 90 minutes to complete. 5. US officials say recent US strikes against Iran are increasing the US's options for further escalation. 6. US military launches Hellfire missiles at an oil tanker bound for Iran. 7. Trump: (When asked if he would set a deadline for bombing Iran) I don't like setting deadlines. US-Iran Negotiations 1. Iranian Foreign Minister: Iran will not be the first to bow down and demand negotiations with the US. 2. Iran: Currently has no plans for negotiations; focused on defense. 3. Former Israeli intelligence representative to the US: Military escalation is more likely than negotiations at present. 4. US Official: The trilateral talks between the US, Israel, and Lebanon have concluded with positive results. The next step will be broader technical consultations. Strait of Hormuz 1. Iranian Government: Iran will never allow the US to interfere in the management of the strait. Ships illegally passing through will face punishment. 2. Iranian Government: In the past 24 hours, at least two ships were intercepted by the Revolutionary Guard Navy with warning shots for violating regulations. Other News 1. Netanyahu may visit the US this week. 2. Israeli media: The US is pressuring for the lifting of restrictions at Ben Gurion Airport. 3. Former Iranian President Ahmadinejad denies any connection with Israeli intelligence agencies. 4. Trump: Our relationship with Iraq has gone from not very good to very good. We will build a long-term relationship with Iraq. 5. Trump and Netanyahu may meet next Monday. 6. The US House budget bill will accelerate the allocation of $73 billion for the Iran war. 7. US Vice President Vance: The US will not send ground troops to implement regime change. 8. US Vice President Vance: There are people inside Israel manipulating US public opinion to prolong military operations.