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Israel’s attacks on Iran continue, the G7 meeting reveals global divisions, and Mondo Duplantis brea͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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June 16, 2025
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The World Today

  1. Israel hammers Iran
  2. Bibi floats ‘regime change’
  3. Conflict boosts oil prices
  4. G7 divisions in spotlight
  5. Big day for central banks
  6. China retail sales jump
  7. Investors flee SAfrica
  8. Trump eases migrant stance
  9. Big firms turn to AI
  10. Duplantis’ latest record

The London Review of Substacks, texting with a geopolitical analyst on what Iran-Israel means for markets, and ‘one of the weirdest (and best) bands of all time.’

1

Israel hits Iran for fourth day

The aftermath of an Iranian strike on Israel
Ronen Zvulun/Reuters

Israel attacked Iran’s military and nuclear infrastructure for a fourth day, while Iran retaliated with missiles and drones. Israel’s attacks killed at least 224, and Iranian missiles caused 24 deaths in Israel. Among the dead was the head of Iran’s intelligence agency and Israel said it hit the command center of Tehran’s top military unit. The United Nations said the attacks also dealt critical damage to a key Iranian nuclear facility. US President Donald Trump wants talks, but Iran refused to negotiate under attack — nuclear negotiations scheduled for Sunday were canceled — and Israel’s prime minister said there would be no deal unless Iran dismantled its enrichment facilities. Oil prices jumped as investors grew concerned about a widened conflict.

For more on the Iranian nuclear situation, see the London Review of Substacks, below. →

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2

Israel suggests Iran regime change

Ayatollah Ali Khamenei.
Ayatollah Ali Khamenei. Office of the Iranian Supreme Leader/WANA/Handout via Reuters

Israel’s prime minister openly discussed toppling Tehran’s theocratic regime as part of his military’s aerial assault on Iran. Benjamin Netanyahu’s remarks to Fox News indicated his goals for the days of bombardment may extend beyond crippling Iran’s nuclear program: Israeli attacks have killed several top nuclear scientists and military commanders, as well as damaging two key atomic-energy sites. However, US President Donald Trump reportedly vetoed a plan to target Iran’s supreme leader. “The real debate has never been about what to do with Iran’s nuclear program,” one analyst wrote in Foreign Policy. “It’s always been about what to do with the regime.”

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3

Conflict raises energy fears

A fire at an Iranian oil depot.
Majid Asgaripour/WANA via Reuters.

Israel and Iran’s conflict risks hammering the global energy system, analysts said. Oil prices rose sharply over threats to crude supplies as a result of Israel’s attacks — which struck several Iranian oil and gas facilities over the weekend. They could surge further, ING economists warned, particularly if Yemen’s Iran-aligned Houthis either target Gulf oil production or cargo passing through the Strait of Hormuz, a key shipping route. One Iranian lawmaker suggested Tehran could shut the waterway entirely, a threat it has made previously without following through, The Wall Street Journal noted. If fighting remains contained, however, the impact could be limited: “Oil price pressures resulting from geopolitical shocks have tended to be short-lived,” an analyst told the Financial Times.

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One Good Text

Derek Chollet is head of the JPMorganChase Center for Geopolitics.

Prashant Rao: What’s been the main question you’ve been getting from clients? Derek Chollet: Do you think this conflict will continue to escalate? What will that mean for businesses?  Prashant: And your assessment? Derek: Prepare for this to go on a while. Businesses need to be ready for disruption and positioned for resilience. Think of Israel’s strikes on Iran as a decapitation strategy, years in the making. We’ve already seen the conflict intensify, and continued escalation is expected, where energy markets and supply chains will be tested. This represents a geopolitical shockwave – physical and cyber risk are now way up.
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4

G7 divisions in spotlight

A chart showing the share of global GDP between the G7 and BRICS

Meetings on either side of the globe underlined growing challenges to US hegemony, from within and beyond Washington’s traditional alliances. A G7 summit in Alberta will likely focus on divisions among its members over trade as well as their stances to wars in the Middle East and Ukraine: The last time Canada hosted the meeting, US President Donald Trump torpedoed the gathering, calling his host “dishonest & weak.” The G7’s six other members are hoping for “a low-drama summit” this time, The New York Times said. Chinese leader Xi Jinping, meanwhile, set off for Kazakhstan to join a meeting of central Asian nations, the latest sign of how Beijing is seeking to “counter the US-led global order,” Bloomberg noted.

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5

Central bankers’ global risks

A chart showing central bank interest rates.

Central bankers in countries accounting for 40% of the global economy are grappling with uncertainty around trade and conflict in the Middle East as they prepare to set interest rates this week. The US Federal Reserve, Bank of Japan, and Bank of England are expected to hold rates steady while Swedish and Swiss officials are set to deliver small reductions, a sign that officials worldwide are waiting for more information before taking definitive action. The sudden conflagration between Israel and Iran has sent oil prices higher, but Washington’s tariffs — which could increase after a 90-day moratorium expires next month — are likely to raise prices within the US and depress them abroad, while also slowing growth worldwide.

For more on the economic and financial implications of the trade war, subscribe to Semafor’s Business briefing. →

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6

China retail sales jump

A chart showing Chinese consumer spending per capita.

Retail sales in China jumped more than expected last month, signaling that the world’s second-biggest economy may be weathering US tariffs. June’s sales figures are expected to be higher still as China holds one of its main shopping festivals this week. Beijing has for decades faced calls to rebalance its economy away from manufacturing and into domestic spending. However, “the suppressed [Chinese] consumer is a myth,” a top fund manager argued in the Financial Times: The real issue is that fast-growing private spending has been overshadowed by even higher growth in investment. “The country can’t solve the real problems caused by over-investment… by attacking the phantom problem of underconsumption,” he wrote.

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7

SAfrica stocks slide

A chart showing GDP growth forecasts for sub-Saharan Africa’s biggest economies

Foreign investors have withdrawn billions of dollars from South Africa’s stock market in recent months even as global money managers seek alternatives to the US. The country’s stocks are relatively cheap, but slowing economic growth and political instability — including Pretoria’s deteriorating relationship with Washington — have spooked investors. “Foreign investors, if anything, behave like tourists,” a money manager at a South African firm told Reuters. “They will come for a trade… but they won’t stay without long-term policy certainty.” The trend is a contrast to other markets, which are seeing inflows as a result of US market underperformance: American stocks are up 2% this year, compared to 14% across the rest of the world.

For more from the continent, subscribe to Semafor’s Africa briefing. →

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8

Trump backs off crackdown

A chart showing the legal status of US crop farmworkers.

US President Donald Trump partially reversed his strict anti-immigration policies after key sectors warned of economic devastation. A senior official told agencies nationwide to freeze enforcement operations on farms, hotels, meat-packing plants, and restaurants, amid growing pressure from the agriculture and hospitality industries on the White House to soften its stance, Axios reported. Trump’s migration crackdown is seeing effects: This year, the US might see more people leave than arrive for the first time in at least 50 years, thanks to deportations and the near-total shutdown of the southern border. That net outflow could boost inflation, The Washington Post reported, with labor shortages driving up wages.

For more on Trump’s policies, subscribe to Semafor’s daily US politics briefing. →

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9

AI grows in the workplace

A chart showing AI use at the workplace

Major firms are increasingly turning to artificial intelligence for basic tasks. The British telecoms giant BT, which already plans to axe 40,000 jobs by 2030, told the Financial Times that AI presents “an opportunity for BT to be even smaller.” BT is not alone: Consulting firm McKinsey is increasingly using AI to draft slideshows, work previously given to junior employees. Relatedly or not, McKinsey has also lost 5,000 staff since 2023 when its AI platform was launched. And Accenture is training employees to use AI for “repetitive, time-consuming work that was long reserved for junior staffers,” Bloomberg reported. Analysts have warned that AI might be “breaking… the bottom rung of the career ladder” for young employees.

For the latest on the fast-changing world of AI, subscribe to Semafor’s Tech briefing. →

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10

‘Mondo’ sets world record, again

A chart showing Mondo Duplantis’ records

Armand “Mondo” Duplantis broke the world pole-vaulting record for the 12th time, with a leap of 6.28 meters (20 feet and 7.24 inches). The Swede is making the most of a rule that says every time an athlete breaks the record, they earn $100,000. But they can only do so once per event. So every time he has broken the record since his first one in 2020, he has done so by a single centimeter, and then stopped until the next event. Duplantis, competing in his home country, had already secured the gold medal in the Diamond League meeting — his closest rival was unable to get past 5.90 meters.

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Flagging
  • The Energy Asia conference opens with major industry leaders, including the CEOs of Aramco and TotalEnergies due to speak.
  • The UN Human Rights Council begins in Geneva.
  • The 55th Paris Air Show opens.
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LRS
The London Review of Substacks

À la recherche du temps perdu

The existence of “aphantasia,” an inability to form mental images, is somewhat controversial: It is hard to tell whether people are reporting real differences in their experiences or simply describing similar things in different ways. But the blogger Marco Giancotti says that he has something even stranger: He almost completely lacks episodic memory, the ability to remember past events as stories. He noticed something was off when asked in a job application to describe a problem he had faced and how he had overcome it. “I was completely stumped,” he writes. Such questions are pretty standard, but “they were anathema for me.”

For instance, his memories of his late grandfather consist of “generic, timeless facts,” rather than episodes, scenes, or conversations; the fact that he kept bees, rather than the time he took Giancotti to see those bees. His memory is otherwise fine; he still understands concepts and remembers people. It’s just that “my past feels like someone else’s… It’s like being the world’s top expert about a stranger’s life.” It doesn’t bother him, he says, and in some ways he finds it an advantage, believing it leads him to be more focused on the here-and-now than most people.

…And Justice for All

One Saturday morning in 2022, Bomani Hairston-Bassette shot Charles Wright in the back in Oakland, California, killing him. The blogger Ozy Brennan was on the jury that would try the alleged killer. It was boring, Brennan writes — much of every day was taken up with long descriptions of how some piece of evidence was taken from the scene and brought to the court — but like a combat soldier’s life, “a jury member’s boredom is interspersed with moments of sheer terror,” of missing some crucial information and making the wrong decision.

The central fact, Brennan thinks, is that “Hairston-Bassette was an idiot.” He lied to the police; made a phone call from the prison which he knew was recorded and in which he said he liked lying; and took the stand in his own defense to give an obviously implausible and internally contradictory story. Hairston-Bassette eventually pled to manslaughter. Brennan’s takeaway was that the system works well: The careful instructions to jurors to ignore all extraneous information, and the professionalism of everyone involved.

The nuclear option

The Israeli strikes on Iran “represent a seismic shift in a decades-long standoff over Iran’s nuclear ambitions,” writes the superforecaster Peter Wildeford on his blog The Power Law, not just because of the scale of destruction but also the decapitation of Tehran’s military and scientific leadership. But it also reveals a critical limitation of Israel’s capabilities: The strikes conspicuously avoided Fordow, the mountain fortress where Iran does its most advanced nuclear enrichment. The “Fordow Paradox” is that while the US has the military capability to destroy Fordow, it lacks the will; and Israel has the will, but lacks the capability.

Iran is in its “weakest strategic position in decades,” says Wildeford. Its air defenses are in ruins, it is unable to gain resupply from Russia because Moscow is concentrating on its own defense, and its military is weaker than Israel’s. But developing a nuclear bomb would change the calculus. Tehran said it would upgrade Fordow’s centrifuges, and if it creates enough fissile material, it could create a crude device within months. This creates “a dangerous window” in which Iran is close to a bomb which Israel’s conventional air strikes cannot reach. Wildeford envisages a serious (35%) risk of a serious war across the Middle East, triggered by the Fordow paradox.

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Semafor Recommends

Angel Dust by Faith No More. “If elected President, I would create a federal holiday to celebrate Faith No More,” writes Drew Magary in Defector, “one of the weirdest (and best) bands of all time.” They tend to get put in the “metal” section in record shops, but every album contains “elements of jazz, country, hip hop, Motown, gospel, easy listening, and anything else they could find, [as if] David Lynch had decided to become a rock star instead of the film director.” Flagship’s Tom would happily argue for years over which is their best album, but Angel Dust is a strong contender. Listen to Angel Dust on Spotify.

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