Germany, France and the UK have drafted a plan aimed at persuading Putin to take part in peace talks; the plan to negotiate with Moscow would also include Kyiv.

Most Fed districts reported inflation at a moderate-to-strong pace, with readings higher than in the prior report. Energy costs tied to the Middle East conflict were cited as the main inflation driver, spilling into shipping, packaging, grocery and fertilizer. Non-labor input costs continue to rise faster than selling prices, prompting broader concerns about margin compression; pass-through ability is uneven, especially among consumer-facing firms. Firms reported responses including supply-chain optimization, product adjustments, reduced supply and temporary absorption of higher costs to sustain demand.

Iran's armed forces said they struck a U.S. warship hours after U.S. forces carried out an 'aggressive' action against an Iranian merchant ship in the Gulf of Oman; Iran said the targeted vessel served as the 'command and control center' for the hostile action.