Trump shortens G7 visit amid escalating Iran-Israel war

Today’s agenda: EU-China talks derailed; Reeves considers non-dom inheritance tax review; Trump Card and Trump Mobile; German defence tech investment; and rising risk for London wildfires

We start in Canada where the conflict between Israel and Iran has dominated the G7 summit, with US President Donald Trump deciding to leave early.

The latest: Donald Trump said he would leave the summit early to manage America’s response to the war between Israel and Iran as G7 leaders called for a resolution of the conflict and a “broader de-escalation” in the Middle East. The joint statement agreed late yesterday came after a day of intense diplomacy, after the US president initially resisted signing up to the text and issued increasingly hawkish statements on the war, including a warning to evacuate Tehran.

Trump’s early exit came in the wake of further Israeli strikes on the Iranian capital, including an attack on a state television broadcaster that fuelled concerns that the war between the two countries could spiral further.

What could come next: Trump told G7 leaders there were discussions under way to obtain a ceasefire between Iran and Israel, according to French President Emmanuel Macron. But Iran has said it will only agree to negotiate an end to the war with Israel and resume talks over its nuclear programme if Israeli forces halt their bombing campaign, diplomats said.

While the US president has said he would like to see a deal to halt the conflict, he has not ruled out American involvement in the war in support of Israel. But US officials insisted the country remained in “defensive” posture in the Middle East. Lawmakers have warned the US president that he would need a sign-off from Congress to use military force against Iran. For more updates on the war and its impact, follow our live blog.

Here’s more on the situation:

• Dispatch from Tehran: After days of bombing, Tehranis are choking in gridlock and fear as many of the capital’s 10mn residents try to flee.

• Aerial war: Israel and Iran’s endurance battle pits Israel Defense Forces jets against Tehran’s missile reserves, but how long can it last?

• Opinion: If Iran is losing a conventional conflict, there is a danger that it will resort to unconventional means of retaliation, writes Gideon Rachman.

Here’s what else we’re keeping tabs on today:

• G7 summit: World leaders will conclude talks in Canada without Trump.

• FT Live: The FT Women in Business Summit takes place. Register here and read a special report on the topic.

• IEA: The International Energy Agency publishes its Oil 2025 report alongside its monthly oil market report.

Five more top stories

1. Exclusive: The EU has refused to hold a flagship economic meeting with Beijing ahead of a summit next month because of a lack of progress on numerous trade disputes, people familiar with the matter said. The bloc’s stonewalling of the talks underlines the deep divisions between the sides despite Beijing’s efforts to court Europe.

2. Exclusive: Chancellor Rachel Reeves is exploring reversing a decision to charge UK inheritance tax on the global ***ets of non-doms, following a spate of departures and lobbying by the City of London, according to government officials and financiers briefed on the discussions. Read the full report.

3. Exclusive: Nearly 70,000 people have signed up for the new golden Trump Card, an investor visa scheme led by Howard Lutnick that will grant foreigners legal residency in the US at a cost of $5mn. More on the interview with the US commerce secretary.

4. Exclusive: Spotify founder Daniel Ek is leading a €600mn investment in Helsing, valuing the German defence tech group at €12bn and making it one of Europe’s most valuable start-ups. The deal comes as the Munich-based start-up is expanding from its origins in AI software to produce its own drones, aircraft and submarines. Read more details of the deal.

5. Exclusive: A group of mid-tier UK law firms is boosting pay for most junior lawyers to as much as £140,000 a year as they attempt to keep pace with larger rivals in the race to attract and retain talent.

The Big Read

After years of corporate messaging that highlighted purpose and inclusion, the advertising industry is shrinking away from making socially progressive statements as the movement intensifies against diversity, equity and inclusion. Daniel Thomas reports from Cannes on how the culture war is remaking the sector.

We’re also reading and listening to . . . 

• ‘Global euro’: The profound shift in the geopolitical order offers opportunities for the euro to gain global prominence, writes European Central Bank president Christine Lagarde.

• ‘Economics of small print’: Non-compete clauses may look employer-friendly but can stifle labour force fluidity and competition, writes Sarah O’Connor.

• From cars to handbags: Luca de Meo has transformed motor group Renault but can he really revive Gucci owner Kering?

• Tech Tonic 🎧: The Trump-Musk bromance is over. What does it mean for the world’s richest man?

Chart of the day 

London is at an increased risk of wildfires this summer, the UK capital’s fire brigade has warned. The service is stepping up efforts to prepare for blazes by investing in new equipment and sending firefighters on specialist training in the face of heightened risk due to climate change.

Take a break from the news

From female explorers and the world’s rivers to the greening of China and the ideological brain, here are the best summer books of 2025 on the environment, science and technology.