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Bitcoin and other altcoins like Bonk, Floki, and Pepe crashed on Friday as concerns about geopolitics rose. BTC price plunged to $102,000, and then bounced back above $105,000. 

Other top altcoins like Bonk, Floki, and Pepe also plunged, with the total market cap of all coins dropping to $3.2 trillion. This article explains why these tokens may bounce back in the coming days.

Bitcoin and altcoin crash was a knee-jerk reaction

The first main reason why Bitcoin and altcoins like Pepe, Bonk, and Floki may bounce back is that the crash was a knee-jerk reaction or an overreaction. 

Historically, risky assets like stocks and cryptocurrencies plunge whenever there are significant black-swan events. 

A good example of this is when they crashed at the onset of the Covid-19 pandemic in 2020. Most of them plunged as investors predicted the “end of the world.”

Most recently, Bitcoin and these altcoins plunged when Donald Trump delivered his “Liberation Day” speech introducing “reciprocal” tariffs on all countries, including allies and foes. 

Bitcoin crashed to $74,500 after Trump introduced tariffs, triggering a bigger dive among other altcoins. 

Another notable event was the crypto market crash that happened in late 2022 following the collapse of FTX. Bitcoin and other altcoins bounced back after that. 

Bitcoin demand and supply is supportive

The other main reason why Bitcoin and other altcoins may bounce back soon is that the demand and supply is supportive. 

Data shows that spot Bitcoin ETFs had net inflows of over $86 million on Friday, bringing the cumulative total to over $45 billion. BlackRock’s IBIT had net inflows of $288 million on Thursday, which was offset by a $197 million outflow from Fidelity’s fund. 

IBIT now has over $72 billion in inflows, while Fidelity’s FBTC has $21.1 billion, while Ark Invest has $5 billion. 

Spot Ethereum ETFs are also attracting substantial inflows. They had net inflows of over $112 million on Thursday, with BlackRock’s ETHA having inflows of $101 million. It has brought its net assets to $4.5 billion. These funds have had inflows in the last five consecutive weeks.

At the same time, their supply on exchanges have plunged this year. Bitcoin supply on exchanges has dropped to 1.1 million from the year-to-date high of $1.5 million. The supply of Ethereum also continued to fall this year. 

Therefore, the ongoing demand and supply metrics mean that Bitcoin price will bounce back this year. If this happens, other altcoins like Pepe, Bonk, and Floki will surge. 

Bitcoin price cup and handle

BTC price chart | Source: TradingView

The other main reason why Bitcoin price will bounce back in the coming weeks is its strong technicals. The daily chart shows that the coin formed a double-top pattern at $109,200. 

It then formed a rounded bottom, confirming the cup section of the cup-and-handle pattern, a popular bullish signal. It is now forming the handle section of this pattern.

The cup section has a depth of 30%. Measuring the same depth and the upper side of the cup-and-handle pattern gives it a target of $143,000. It has also moved above the 50-day and 100-day Exponential Moving Averages.

Therefore, the coin will likely bounce back in the coming days. Such a move will then trigger more gains among altcoins.

Read more: Top 3 altcoins to buy the dip in as the crypto crash accelerates

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Following significant growth in 2024, the US battery energy storage (BESS) market is experiencing a nationwide boom this year.

Declining battery manufacturing costs are a key factor in the rapid expansion observed. Rystad Energy forecasts this downward trend to persist for the next five to seven years, driven by continuous design enhancements.

While lawmakers consider rescinding tax incentives for low-carbon energies, creating policy headwinds for renewable energy investment, the grid-scale BESS market is currently unaffected.

Rystad Energy predicts an increase in the installation rate to approximately 16 GW per year by early 2026, indicating a continuation of this growth.

“As energy demand rises in the US due to increased electrification, grid resilience will continue to be critical, with batteries playing a key role in meeting this need, along with both traditional and renewable energy sources,” Artem Abramov, head of new energies at Rystad Energy, said in a release.

In 2024, the US grid-scale BESS market experienced substantial growth, with installations reaching 10 GW. This represents approximately a 60% increase from the 6 GW of capacity added in 2023, according to Abramov.

Planned inventory is a very strong leading indicator of actual capacity additions and we believe this rate of growth will create increased annual battery demand for grid-scale BESS.

States with highest level of BESS market

Texas and Arizona are experiencing the highest growth in the BESS market, while the California market saw stabilization last year.

By 2024, Texas had emerged as the largest US BESS market, with an installation rate of approximately four GW per year, comparable to California’s, according to Rystad Energy. 

In the past year, Texas has seen a substantial increase in its BESS inventory, rising from 5 GW to over 7 GW. 

This contrasts with California and suggests a probable continued rise in installations throughout the current year in Texas.

“Notwithstanding the growth in Texas, it is the rest of the country that is currently experiencing a BESS boom,’ the Norway-based energy intelligence company said. 

Currently, BESS inventory in emerging US markets, led by Arizona, stands at seven GW, a significant increase from the three GW recorded in the second quarter of last year.

Source: Rystad Energy

Batteries becoming significant power source

In established markets, batteries are becoming vital during peak power demand, effectively extending solar energy availability into the evening.

Batteries have fulfilled 13% of the power demand within the California Independent System Operator (CAISO) during their discharge hours over the past 90 days, Rystad said.

Although the trend is new, the days of batteries delivering more than 16% of electricity during discharge hours are becoming increasingly common.

During discharge hours, the average contribution is approximately 13%, but the peak contribution often reaches nearly 30%, it added.

The current 90-day average peak hour contribution has increased by 10 percentage points over the last 12 months, now reaching 26%.

Renewables

“Looking at the share of CAISO power demand satisfied by renewables – mainly solar, wind and hydro – we observed that the annual average increased from less than 30% in 2021 to more than 40% in the last 12 months,” Rystad said.

Renewable energy’s contribution continues to grow, peaking in spring to meet over 65% of daily demand on certain days in 2025, the data showed. However, its winter contribution remains consistent, supplying only 20-25% of demand.

Over the past four years, renewables integration has led to a significant reduction in CAISO’s reliance on energy imports, decreasing from approximately 27% to 16% of total system demand, according to Rystad. 

“As both BESS and solar PV installed capacity continue to grow in California, it is important to remember two things in particular: which power system challenges are being addressed by batteries, and what batteries cannot really help with,” Abramov said. 

Whether it is theoretically possible to have all renewable plus BESS systems in CAISO and what kind of overbuild – and economic implications for project developers and end consumers – will be associated with it remains to be seen.

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The long-simmering, complex conflict between Israel and Iran, a defining feature of the Middle East for decades, has violently erupted into a new and perilous phase.

Previously characterized by indirect attacks and proxy engagements, the hostilities have dramatically escalated, culminating in Israel’s reported airstrikes on Iranian military targets and its nuclear program on June 13.

This audacious move, which included the targeting of scientists and generals and reportedly killed the head of the Islamic Revolutionary Guard Corps, Hossein Salami, has pushed the two regional powers dangerously close to open warfare.

For years, Israel and Iran engaged in a shadow war, a series of mostly quiet, often deniable attacks, with Iran frequently operating through allied proxy groups.

However, this fragile equilibrium began to unravel following the outbreak of war between Israel and the Iran-backed Palestinian group Hamas in October 2023.

Since then, isolated incidents of direct fire, utilizing missiles and drones, have punctuated the escalating tensions.

The June 13 Israeli airstrikes, which caused explosions in the Iranian capital, Tehran, represent a major escalation.

In response to its own “pre-emptive strike,” Israel declared a state of emergency, bracing for the anticipated retaliation that Iranian officials have warned would follow any attack on its assets.

With a renewed global focus on Iran’s nuclear capabilities, the specter of open warfare looms large.

Israel, widely believed to possess its own nuclear arsenal, has long viewed a nuclear-armed Iran as an existential threat.

A friendship shattered: the roots of enmity

The current animosity starkly contrasts with a period of alliance between Israel and Iran that began in the 1950s under Iran’s last monarch, Shah Mohammad Reza Pahlavi.

This friendship abruptly ended with the 1979 Islamic Revolution in Iran.

The new clerical leadership in Tehran adopted a fiercely anti-Israel stance, calling for its destruction and denouncing the Jewish state as an imperialist power in the Middle East.

Since then, Iran has consistently supported groups that actively fight Israel, most notably Hamas, Hezbollah in Lebanon, and the Houthi rebels in Yemen—all designated as terrorist organizations by the United States.

For Israel, the prospect of Iran obtaining nuclear weapons is an overriding security concern.

Israeli officials have repeatedly implied that if Iran were on the verge of weapons capability, Israel would take pre-emptive military action, much as it did when it struck a reactor in Iraq in 1981 and an alleged Syrian nuclear site in 2007.

A history of direct confrontation

Prior to the latest Israeli offensive, the two nations had already exchanged direct blows for the first time in April 2024.

Iran launched a massive missile and drone attack on Israel, a move precipitated by an airstrike two weeks earlier on Iran’s diplomatic buildings in Damascus, Syria—an attack widely attributed to, though not officially acknowledged by, Israel.

While Iran’s April assault caused minimal damage and prompted a more limited Israeli counter-assault, this direct head-to-head fighting marked a dangerous precedent, moving their conflict into a more overt and perilous phase.

Further escalating the direct conflict, Israel assassinated Hamas’s political leader, Ismail Haniyeh, in Tehran in July of the same year.

Another round of missile attacks and airstrikes was exchanged by both sides in October.

Military might: a tale of asymmetry and ambition

In a conventional military comparison, Israel’s forces possess a significant technological advantage over Iran’s.

This is partly due to substantial military and financial support from the United States, which has long sought to ensure Israel’s qualitative military edge.

Israel is the only Middle Eastern state to have acquired Lockheed Martin Corp.’s F-35 stealth fighter jet, the world’s costliest weapons system.

It is also widely, though unofficially, understood to be a nuclear-armed state.

Iran, conversely, has long been suspected of harboring ambitions to develop nuclear weapons under the guise of its civilian nuclear power program—an ambition it consistently denies.

The country’s reserves of highly enriched uranium have been growing and could, according to experts, be quickly purified to the 90% level typically used in nuclear weapons if its leadership chose to do so.

However, Iran would still need to master the complex process of weaponizing the fuel to produce an operable device capable of hitting a remote target.

Decades of sanctions and political isolation have hampered Iran’s access to foreign military technology, compelling it to develop its own indigenous weapons capabilities.

Its combat aircraft fleet largely consists of older models acquired before the 1979 revolution.

Iran hopes to upgrade its military through increased collaboration with Russia, having agreed to purchase Sukhoi Su-35 fighter jets, although the delivery status of these aircraft remains unclear.

Despite its technological disadvantages, Iran’s military is believed to possess a significant stockpile of ballistic and cruise missiles, as well as a large fleet of relatively inexpensive unmanned aerial vehicles (drones), which it deployed against Israel in its 2024 assaults.

However, as those attacks demonstrated, penetrating Israel’s formidable, multi-layered air defenses is a significant challenge.

Israeli defenses include advanced fighter jets, the Arrow and David’s Sling air-defense systems, which, in conjunction with US and other allied forces in the region, reportedly intercepted 99% of the more than 300 drones and missiles Iran fired in the April 2024 barrage, according to Israel’s military.

Iran’s own defensive capabilities include surface-to-air missile systems, such as Russia’s S-300, and the locally made Arman anti-ballistic missile system.

These systems are not nearly as battle-tested as Israel’s, a reflection of Iran’s preference for asymmetric warfare, where it can project outsized power, over direct conventional combat. Both nations also possess cyberwarfare capabilities.

Over a decade ago, the Stuxnet malware, widely suspected to be a US and Israeli operation, compromised operations at an Iranian nuclear enrichment facility.

According to a US Defense Intelligence Agency assessment released last year, Iran is capable of “a range of cyber operations, from information operations to destructive attacks against government and commercial networks worldwide.”

Past cyberattacks attributed to Iran include a hack targeting Israeli water infrastructure, as noted by the Council on Foreign Relations.

The challenge of striking Iran’s nuclear program

An Israeli air attack specifically targeting Iran’s nuclear program would be an extreme and logistically complex operation.

Iran’s atomic sites are numerous, geographically dispersed, and, in recent years, many key assets have been moved deep underground to protect them from attack.

This has not deterred smaller-scale sabotage operations routinely attributed to Israel, including the assassinations of five Iranian nuclear scientists in Tehran since 2010 and an explosion at a key enrichment facility in 2021, for which Iran blamed Israel.

Israel claims to have destroyed most of Iran’s air defenses and much of its missile-making capacity in the October 2024 exchange.

If these capabilities have indeed been significantly neutralized, Israel would face considerably less resistance in a solo attack.

However, intelligence officials have cautioned that even a successful strike on Iran’s nuclear facilities might only delay, not definitively destroy, the country’s ability to eventually manufacture an atomic weapon.

Moreover, any such attack would be complicated by the operational requirements for Israel’s most advanced fighter jets, which would likely need aerial refueling to strike targets in Iran and return safely.

A senior Iranian military official responsible for protecting the country’s nuclear program stated in April 2024 that Iran would retaliate in kind if Israel targeted its assets.

He also hinted that even the threat of such an attack could push Iran to reconsider its stated policy of a peaceful nuclear program.

A web of alliances: regional and global alignments

Iran’s most crucial allies are the Shiite militias it supports with funding, weapons, and training in Lebanon (Hezbollah), Yemen (Houthis), and Iraq.

Hezbollah had long been the most formidable of these, but its recent clashes with Israel since the start of the Gaza war, including an Israeli ground incursion into Lebanon, have reportedly left it seriously weakened.

Tehran also lost its only state ally in the Middle East, Syria, with the fall of President Bashar al-Assad in December 2024.

Yemen’s Houthi rebels would likely be eager to participate in any wider conflict between Israel and Iran.

Since the start of the Israel-Hamas war, the Houthis have been launching ballistic missiles and drones at Israel, in addition to attacking commercial shipping in the Red Sea.

A Houthi drone strike in central Tel Aviv in July 2024 resulted in a fatality, the first deadly attack of its kind on Israeli soil. In early May 2025, a Houthi missile struck near Israel’s main airport, leading numerous foreign airlines to suspend flights.

Iran also maintains warm relations with Russia, although Russia’s ongoing war in Ukraine would likely limit its capacity to provide substantial assistance in a new conflict.

The Islamic Republic also has good ties with China, which has continued to purchase Iranian oil despite US and allied sanctions.

Israel, on its part, counts the United States and the United Kingdom as its key allies. Forces from both countries assisted in intercepting some of the missiles and drones Iran launched at Israel in 2024.

The US military also announced measures to bolster its presence in the Middle East, deploying additional ships, fighter planes, and ballistic missile defense vessels.

Nevertheless, the Israeli operation poses the first major foreign-policy crisis of US President Donald Trump’s second term, particularly as he had reportedly urged Israeli Prime Minister Benjamin Netanyahu not to proceed with such a strike.

The Arab states: a precarious balancing act

Many Arab states in the region find themselves in a difficult position.

Four Gulf Arab countries normalized relations with Israel in 2020 through the Abraham Accords, partly driven by a shared distrust of Iran.

However, these same countries have also sought to mend ties with Tehran as they focus on domestic economic growth and navigate a perceived US disengagement from the region.

Unlike during previous periods of tension over Iran’s nuclear program, this time they are publicly backing diplomatic solutions.

Iran and Saudi Arabia restored diplomatic relations in 2023 after a seven-year freeze.

Saudi Arabia has previously explored normalizing ties with Israel as part of a broader deal involving US security guarantees and would likely try to avoid becoming entangled in an Israel-Iran conflict.

It is considered unlikely that any Arab state would overtly side with Israel in a direct confrontation against a fellow Muslim country, especially one as powerful as Iran.

That said, an Israeli strike on Iran might only require their tacit acquiescence for Israeli jets to transit through their airspace.

The unfolding situation presents a complex geopolitical chessboard with potentially far-reaching consequences.

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European stock markets opened sharply lower on Friday, with investors reacting swiftly to a significant escalation of conflict in the Middle East following Israeli airstrikes on Iran.

The pan-European Stoxx 600 index was down, and oil prices surged as concerns over regional stability and potential supply disruptions took center stage.

About 20 minutes after the opening bell, the pan-European Stoxx 600 was trading 1% lower, a clear indication of the market’s nervousness.

The sell-off was broad-based, with nearly all sectors in negative territory, the notable exception being oil and gas stocks, which benefited from the spike in crude prices.

National bourses across the continent reflected the heightened risk aversion. Germany’s DAX tumbled 1.4% in early trade, while the French CAC 40 was 1.1% lower.

London’s FTSE 100, which had just come off a record high, was down 0.5%.

Futures markets had already signaled a turbulent start, with those tied to the pan-European Stoxx 600 last seen 1.2% lower, and futures linked to the German DAX index down by a more substantial 1.7%.

Even futures for the FTSE 100, despite its recent record, were pointing 0.5% lower.

Israel strikes Iran: details of the attack emerge

The market jitters were a direct consequence of Israeli military action against Iran in the early hours of Friday morning.

Reports indicated that Israel launched a series of airstrikes, and it was later stated that these actions killed the chief of the Iranian Armed Forces as well as two of the country’s leading nuclear scientists.

Israeli Prime Minister Benjamin Netanyahu, in an address, characterized the military action as a “targeted military operation” against Iran’s nuclear and ballistic missile program.

He specified that Israel had hit Iran’s main enrichment site at Natanz, targeted its leading nuclear scientists, and struck at the heart of its ballistic missile program.

This direct and significant military engagement, reportedly conducted without US support, marks a major escalation of tensions in the already volatile region.

Oil soars, safe havens sought as investors flee risk

The immediate and most dramatic market reaction was seen in the oil markets.

Crude oil futures jumped by as much as 13% on Thursday evening following the news of the Israeli airstrikes.

US West Texas Intermediate was last seen up 8.23% at $73.65 per barrel, while global benchmark Brent crude surged 7.96% to $74.88 per barrel.

These sharp increases put both benchmarks on course for their largest single-day gains since 2020.

The scale of the Israeli attack, explicitly aimed at Iran’s nuclear program, took markets by surprise and prompted a swift flight to safe-haven assets.

Investors sought protection in assets traditionally considered stable during periods of heightened volatility.

“The news has led to significant fears about an escalation and a wider regional conflict,” Deutsche Bank strategists noted in a report early Friday.

The effects of the attack have cascaded across global markets, with a strong risk-off move for several asset classes.

The sudden re-emergence of acute geopolitical risk has clearly unsettled investors, who are now reassessing their positions in light of the rapidly evolving situation in the Middle East.

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Iran will not be participating in the nuclear negotiations with the United States scheduled on Sunday, the country announced on state television on Friday in the wake of Israel’s airstrikes on Iran’s nuclear program and ballistic missile sites this morning.

Iran has also launched retaliatory attacks with Israel claiming the country has launched over 100 drones in the last few hours. 

Explosions were reported across Tehran, the central city of Natanz—home to one of Iran’s major nuclear enrichment plants—and several other locations.

Israeli Prime Minister Benjamin Netanyahu declared that Israeli forces had “struck at the heart of Iran’s nuclear enrichment program,” claiming they had also eliminated top Iranian military figures.

Among those reportedly killed in the strikes were Mohammad Bagheri, Iran’s Chief of Staff, and Hossein Salami, commander of the Islamic Revolutionary Guards Corps (IRGC), according to both Israeli authorities and Iranian state media.

Former US President Donald Trump, who withdrew the US from the original 2015 nuclear agreement during his first term, had expressed concern over the timing of the Israeli strikes.

“I worry this could blow the negotiations,” Trump said Thursday, adding that he had ordered some American personnel to evacuate the Middle East in case of Iranian counterstrikes that “could include missiles flying into their buildings.”

Iran has retaliated with over 100 drones, Israel claims

As news of the airstrikes broke, Iran launched a retaliatory barrage, with Israel claiming over 100 drones were deployed in response.

Air raid sirens reportedly sounded in several Israeli cities, though details of the damage remain sparse.

The situation has cast a shadow over the US-Iranian diplomatic efforts.

Negotiators from both countries were set to meet in Oman for the sixth round of discussions aimed at reviving the 2015 nuclear deal, which imposed strict limits on Iran’s uranium enrichment in exchange for sanctions relief.

However, with Iran pulling out of the talks, the future of diplomatic engagement appears increasingly uncertain.

The talks had already been strained over whether Iran should be allowed to continue enriching uranium on its own soil—a right Tehran insists is non-negotiable.

IAEA confirms Natanz hit, but no radiation leak

The IAEA confirmed that the Natanz nuclear facility, a critical site for Iran’s uranium enrichment, had been struck but reported no abnormal radiation levels.

Iran’s Bushehr nuclear power plant, the country’s first civilian nuclear facility, was not targeted in the attacks, Iranian officials told the watchdog.

Natanz, located about 150 miles south of Tehran, houses Iran’s most advanced centrifuges and has long been viewed by Western and Israeli intelligence agencies as a focal point of its nuclear ambitions.

“The type of concrete that (the Iranians) use is actually a very specialized, hardened concrete,” CNN military analyst Cedric Leighton said.

“It’s unclear whether Israel’s bombs can penetrate that type of concrete,” he said, adding that the Israelis would have to mount waves and waves of attacks.

Visual evidence from the scene showed thick plumes of smoke rising above the complex, though the full extent of the damage remains unclear.

Why does Israel oppose Iran’s nuclear activities?

Israel has long opposed any scenario where Iran could obtain a nuclear weapon.

The enmity between the two countries dates back to the 1979 Iranian Revolution and is exacerbated by Iran’s financial and military support to Hezbollah, Hamas, and other militant groups arrayed against Israel.

Analysts warn that Iran’s nuclear program has reached a critical point.

The International Atomic Energy Agency (IAEA) issued its first censure of Iran in two decades on Thursday, accusing Tehran of failing to comply with its nuclear nonproliferation commitments.

Iran rejected the censure, claiming it undermined the credibility of the global nuclear watchdog.

In May, Reuters reported seeing an IAEA report that found that Iran had carried out secret nuclear activities with material not declared to the nuclear watchdog at three locations that have long been under investigation.

In a separate report by IAEA, the watchdog said Iran now possesses enough enriched uranium—at 60% purity—to theoretically produce material for nine nuclear weapons if further refined to weapons-grade levels of 90%.

The fragile legacy of the 2015 deal

The original 2015 nuclear accord, signed under President Barack Obama, aimed to restrict Iran’s enrichment capabilities.

Under the agreement, Iran could enrich uranium to no more than 3.67% and maintain only a limited stockpile of 300kg using basic centrifuge technology.

After Trump’s 2018 withdrawal, Iran began incrementally breaching the deal’s limits, eventually reaching enrichment levels of up to 60%.

Despite severe economic sanctions and covert operations—including the assassination of top Iranian nuclear scientist Mohsen Fakhrizadeh in 2020—Iran’s nuclear development has continued.

With regional tensions at a boiling point, the immediate future of diplomacy looks bleak. As the possibility of further strikes and counterstrikes looms, the world watches nervously for signs of either a renewed dialogue—or a broader conflict.

Will the attack set Iran back on its nuclear programme?

Will Israel’s attack dent Iran’s efforts to advance its nuclear programme?

The Natanz facility has long been the centerpiece of Iran’s nuclear program, producing the majority of the country’s enriched uranium — including much of the near-weapons-grade material accumulated over the past three years.

The full scale of damage to the site following Israeli airstrikes remains unclear.

There is still no confirmation on whether Israel also targeted Fordow, Iran’s second major enrichment facility.

Located deep within a mountain and housed inside an Islamic Revolutionary Guards Corps base, Fordow was deliberately constructed to withstand aerial attacks.

International Atomic Energy Agency (IAEA) Director General Rafael Mariano Grossi, who has toured the site, has noted that it sits nearly a half-mile beneath the surface — making it the most fortified installation in Iran’s nuclear network.

“It may take days, or weeks, to answer one of the most critical questions surrounding the attack of Iran’s facilities: How long has Israel set back the Iranian nuclear program?” David E Sanger, White House and national security correspondent for The New York Times, who has covered Iran’s nuclear program for two decades, writes in a report.

“If the program is delayed only a year or two, it may look as if Israel has taken a huge risk for a fairly short-term delay. And among those risks is not only the possibility of a long-lasting war, but also that Iran will withdraw from the Nuclear Nonproliferation Treaty, take its program underground, and race for a weapon — exactly the outcome Mr. Netanyahu was out to prevent.”

Brett McGurk, who has advised multiple US administrations on Middle East affairs, emphasized the centrality of Fordow:

If you don’t get Fordow, you haven’t eliminated their ability to produce weapons-grade material.

American officials have said Israel does not have the bunker-busting bombs to get at that facility, where Iran’s most advanced centrifuges have been installed.

And if Fordow survives the attacks, then there is a good chance the key technology of the country’s the nuclear program will survive with it.

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The European Commission announced on Friday that European Union countries would need 241 billion euros ($278 billion) in investments to expand nuclear energy. 

The Commission also stated that new funding instruments would be necessary to mitigate the substantial financial risks for private investors, according to a Reuters report.

Expanding capacity and lifespan

The Commission’s draft analysis of investment needs for the nuclear power sector, anticipated for publication on Friday, indicates that EU countries aim to increase their nuclear power capacity to 109 gigawatts by 2050.

This represents an increase from the current 98 GW.

These initiatives specifically target the expansion and maintenance of nuclear energy infrastructure, recognising its potential as a reliable, low-carbon power source.

The proposed investments are estimated to be a staggering 205 billion euros dedicated to the construction of new nuclear power plants. 

This considerable sum reflects the high capital expenditure associated with developing advanced reactor technologies and establishing new facilities, including site preparation, complex engineering, and long construction timelines. 

These new plants are envisioned to significantly augment existing power generation capabilities, contributing to national energy security and climate change mitigation goals.

In addition to building new capacity, a substantial allocation of 36 billion euros is earmarked for extending the operational lifespan of existing nuclear reactors. 

This investment is crucial for maximising the return on previously deployed assets and ensuring a stable, uninterrupted supply of electricity while new plants are being developed. 

Financing

Life extension programs typically involve comprehensive maintenance, component upgrades, and safety enhancements to ensure these facilities continue to operate safely and efficiently beyond their initial design life.

The draft outlines that these monumental investments will be sourced from a combination of public and private funds.

This collaboration aims to leverage both public resources and private sector expertise and capital to facilitate the timely and efficient execution of these critical energy infrastructure projects. 

Approximately 24% of the EU’s electricity last year was generated by nuclear power.

The Commission stated that additional financial instruments were required to attract private investors, who are deterred by the risks and substantial upfront costs associated with recent European nuclear projects that have experienced budget overruns and significant delays.

It noted that a five-year delay in planned new projects would increase their estimated cost by an additional 45 billion euros by 2050.

The Commission was quoted in the report as saying:

A combination of diverse sources of financing complemented by de-risking instruments may be the response.

EU’s nuclear divide

Disagreement has long persisted among EU countries regarding the promotion of nuclear power to meet CO2 emissions targets. 

The debate is primarily fueled by France, where nuclear power is the leading electricity source, and Germany, which had previously opposed it under past administrations.

Consequently, EU energy policies have generally avoided singling out nuclear power with specific incentives or targets. Additionally, the EU budget does not allocate funds for the construction of new nuclear power plants.

A 500-million-euro pilot program for power purchase agreements, open to nuclear projects, will be initiated by the European Investment Bank and the Commission, according to the draft document.

Out of 27 EU member countries, twelve currently operate nuclear reactors, with France possessing the largest fleet. Slovakia and Hungary are in the process of constructing new reactors. 

Meanwhile, nations like Poland are looking to develop their first nuclear plants.

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European aerospace giant Airbus SE is painting a picture of a dramatically busier future for global aviation, predicting the world’s commercial aircraft fleet will nearly double to almost 50,000 planes over the next two decades.

This surge, according to Airbus’s latest global market forecast, will be significantly propelled by rapid expansion in emerging markets like India, where a burgeoning middle class is increasingly embracing air travel.

In its comprehensive outlook, which encompasses both its own aircraft and those of competitors like Boeing Co., Airbus anticipates the global in-service fleet will swell by an additional 24,480 units, reaching a staggering 49,210 aircraft by the year 2044.

The lion’s share of this growth, Airbus noted, will come from single-aisle aircraft – the workhorses of the industry, such as the Airbus A320 family and Boeing’s 737 models, which form the backbone of many airline fleets worldwide.

The plane manufacturer identified India’s domestic network as poised to become the fastest-growing aviation market globally over the next two decades.

Meanwhile, China is projected to emerge as the largest aviation market by capacity within the same timeframe.

On a global scale, Airbus expects passenger traffic to advance at a steady clip of 3.6% annually over the long term, with routes to and from the Middle East also highlighted as another key driver of this anticipated growth.

Navigating a complex horizon: trade tensions and supply snags

Commercial aircraft are among the longest-cycle industrial products, granting manufacturers like Airbus and Boeing unique insights into travel trends that stretch out for decades.

Airbus released its latest forecast against a backdrop of tense global trade negotiations.

These ongoing disputes threaten to complicate the movement of aircraft and their essential components, potentially creating headwinds for production output and jet deliveries.

Despite these overarching uncertainties, Airbus indicated that airlines have not curtailed their appetite for new models.

This holds true even as the unpredictability created by US President Donald Trump’s global tariffs prompts some consumers to rein in spending and forces certain carriers to adopt a more cautious outlook for the remainder of the year.

“With the possible exception of maybe the more domestic US market, we have not seen an inflection fundamentally in demand from our customers,” Christian Scherer, the chief executive officer of Airbus’s commercial aircraft unit, stated at a briefing in Toulouse, where Airbus is headquartered.

We see continued traction and demand for our products.

While supply-chain disruptions that accumulated during the pandemic are gradually easing, Airbus acknowledged that it continues to experience shortfalls in some critical parts.

Scherer specifically mentioned a lack of engines from CFM International for its popular A320neo model, as well as a shortage of toilets for its flagship A350 long-haul jet, both of which have hampered aircraft deliveries.

India’s aviation ascent: a crucial driver of Ffuture demand

India, already recognized as the world’s third-largest domestic aviation market, is set to play an increasingly pivotal role in shaping future aircraft demand.

The significant growth in the number of more affluent individuals within the nation of over 1.4 billion people makes it a crucial engine for the industry’s expansion.

This was evident at the International Air Transport Association (IATA) annual general meeting held in New Delhi this month, where numerous airlines—both foreign and domestic—announced a range of initiatives to either launch new services or increase existing flight frequencies to and from the South Asian nation.

The country has firmly established itself as a major buyer of commercial aircraft.

National carrier Air India Ltd. has placed orders for an impressive 570 planes from both Airbus and Boeing since 2023.

IndiGo, India’s leading low-cost specialist, currently boasts an order book of more than 900 Airbus planes, a figure that includes a recently expanded purchase of 60 A350 widebody aircraft, underscoring the immense scale of India’s aviation ambitions.

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For over a decade, the United States has used export controls to stymie China’s progress in acquiring and developing cutting-edge technologies—especially those with military applications such as advanced semiconductors and artificial intelligence.

This long-standing strategy has become a central feature of US–China economic relations, one that successive administrations have refined and intensified.

This week, senior officials from both nations met in London in an effort to manage their growing list of trade disputes.

As expected, export controls were a core topic of discussion.

“In eight years of negotiating with the Chinese, I have never had a meeting where they didn’t want to talk about export controls,” Jamieson Greer, the United States Trade Representative, said on Tuesday.

While it remains unclear whether US negotiators made any concessions in exchange for a reported easing of Chinese export restrictions on rare earth metals—a class of minerals vital to high-tech manufacturing—the foundational architecture of US export controls appears unchanged.

Use of tech controls by Trump during first presidency

President Donald Trump first began weaponizing export controls during his first term, embedding them within a broader agenda aimed at resetting America’s trade relationship with China.

Declaring that China had exploited the US for years, Trump imposed steep tariffs starting in 2018—beginning with solar panels and eventually spanning everything from aircraft to automobiles.

The first significant use of export controls under Trump came the same year, when his administration banned US companies from supplying parts to the Chinese electronics firm ZTE, citing national security concerns.

That move followed a similar action taken years earlier by the Obama administration.

Although Trump later reversed the ban in exchange for a $1 billion fine, it marked a turning point in tech trade enforcement.

A year later, the Trump administration blacklisted Huawei, barring American firms from supplying critical components to the Chinese telecommunications giant.

The action sent ripples through global tech supply chains.

Before leaving office, Trump negotiated a deal for China to purchase $200 billion worth of US exports, a commitment that China largely failed to fulfill, according to later reports.

How Biden shifted the target from firms to sectors

President Joe Biden didn’t abandon Trump’s approach but instead broadened it.

His administration aimed less at individual Chinese companies and more at curbing China’s overarching technological rise.

Under Biden, the Commerce Department issued sweeping controls, including a 2022 rule that restricted any chip manufactured using US equipment or software from being sold to Chinese customers.

Washington also urged its allies to adopt similar stances.

The Netherlands-based ASML, which produces the world’s only advanced extreme ultraviolet lithography machines essential for leading-edge chipmaking, came under pressure to stop supplying Chinese firms.

Biden’s efforts effectively turned a national policy into an international campaign.

Trump’s second term complicates the picture

Since returning to office in January, President Trump has taken steps to revise the policy structure he inherited.

One of his first moves was to rescind a rule—finalized during Biden’s final weeks—that governed the sharing of advanced AI chips with foreign countries.

While the administration has signalled that it will issue a replacement, no details have been released.

The Trump administration also appears to be increasing scrutiny on Nvidia, the leading US chipmaker whose products have become essential in AI development.

Nvidia had adjusted its chips to remain below the thresholds imposed by Biden-era controls, enabling sales to China.

In April, however, US officials imposed new licensing requirements for those chips, prompting Nvidia to announce a $5.5 billion writedown on the unsold inventory.

Additionally, the House Select Committee on the Chinese Communist Party has opened an inquiry into whether Nvidia knowingly violated export rules by supplying technology to DeepSeek, a Chinese AI start-up.

The probe signals growing bipartisan appetite for tightening the flow of sensitive technology, even to third-party buyers across Asia.

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European stock markets took a sharp dive at the open on Thursday, with a palpable sense of unease spreading across trading floors.

The pan-European Stoxx 600 index fell 0.42% shortly after trading began, as a stark drop in UK exports to the US underscored the real-world impact of trade tariffs, while confusing signals from Washington regarding a US-China trade deal further rattled investor confidence.

A significant contributor to the gloomy market mood was fresh data from the UK’s Office for National Statistics (ONS), which revealed a staggering £2 billion ($2.71 billion) plunge in UK goods exports to the US in April.

This represents the biggest monthly drop since records began in 1997, pushing the value of these exports to its lowest level since February 2022.

The ONS directly stated that the shift was “likely linked to the implementation of tariffs on goods imported to the United States.”

This sharp decline in UK exports comes despite the UK and US having announced the outline of a trade deal at the start of May.

However, that agreement still imposed 10% blanket tariffs on British goods sent stateside and has not yet been fully implemented, leaving 25% duties on crucial sectors like steel, aluminum, and autos.

Adding to the bleak trade picture, US imports to the UK also fell by £400 million for the month.

Overall, the UK’s trade deficit in goods widened by £4.4 billion to £60 billion in the three months to April, while its trade surplus in services dipped by £500 million to £48.5 billion.

The travel sector led the sectoral declines across Europe, down 1.5%, as almost all segments found themselves in the red.

US-China trade deal: confusion reigns after Trump’s tariff claims

Global market confidence, which had seen some apparent progress in trade talks between the US and China, seemed to falter somewhat overnight.

Asia-Pacific markets traded in mixed territory, and US stock futures pointed lower as investors tried to decipher conflicting messages from the Trump administration.

President Donald Trump declared in a post on Truth Social earlier Wednesday that a trade deal with China was “done”, stating, “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”

However, this claim was later contradicted by Commerce Secretary Howard Lutnick, who said that US levies on goods from China would not change from their current levels.

The deal still requires official approval from both President Trump and Chinese President Xi Jinping, leaving its status and terms uncertain.

UK economic data disappoints; chancellor vows growth focus

Adding to the downbeat sentiment, the latest UK GDP figures also underwhelmed. Data showed the economy shrank by 0.3% in April on a monthly basis.

UK Chancellor Rachel Reeves acknowledged this, describing the print as “clearly disappointing.”

“Our number one mission is delivering growth to put more money in people’s pockets through our Plan for Change, and while these numbers are clearly disappointing, I’m determined to deliver on that mission,” she said in a statement out Thursday.

Reeves pointed to the spending review she delivered to lawmakers on Wednesday, which laid out expenditure and investment plans for all government departments for the next few years, as evidence of the Treasury’s ambition to deliver jobs and growth.

“Whether that’s improving city region transport, a record investment in affordable homes or funding Sizewell C nuclear power station. We’re investing in Britain’s renewal to make working people better off,” she commented.

Trade tensions top investor worry list

The current market anxiety underscores a broader trend. Mounting trade tensions and tariffs have now become the single biggest worry for global investors, overshadowing all other economic risks, according to a new survey published by British investment manager Schroders.

The survey found that nearly two-thirds (63%) of institutional investors and wealth managers identified trade levies as the most significant macroeconomic concern impacting their investment strategy.

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The UK economy shrank by 0.3% in April, a sharper-than-expected decline that has raised fresh concerns about the fragility of the recovery and the growing pressure on both households and businesses.

Figures released by the Office for National Statistics (ONS) on Tuesday showed that the fall in gross domestic product (GDP) was driven by a 0.4% drop in the services sector — the largest contributor to the overall contraction.

Production output also declined by 0.6%, while construction output offered a rare bright spot with a 0.9% increase.

The latest data underscores the challenges facing Prime Minister Keir Starmer’s Labour government, which took office after a landslide election victory last summer.

The April decline marked the sharpest monthly fall in GDP since October 2023 and the worst performance since Labour came to power.

Economists surveyed by Bloomberg had predicted only a 0.1% decline in GDP for April. The larger contraction may complicate the government’s fiscal plans ahead of the autumn Budget.

Chancellor of the Exchequer Rachel Reeves told Sky News:

“We know that April was a challenging month.”

“There was a huge uncertainty about tariffs, and one of the things, if you dig into those GDP numbers today, is exports weakening and also production weakening because of that uncertainty in the world around tariffs.”

She added that the figures for April were “disappointing, but also perhaps not entirely unexpected”, given global economic uncertainty.

Source: The Guardian

Exports fall by £2 billion amid Trump tariffs, pulling growth down

A significant drag on growth came from the collapse in exports to the United States, which fell by £2 billion in April.

The ONS said this was the largest monthly drop in US-bound goods exports since records began in 1997.

The decline followed President Donald Trump’s announcement on April 2 of a blanket 10% tariff on imports from the UK, part of a wider effort to reshape global trade.

The impact was felt across several sectors, with notable declines in car shipments, non-ferrous metals, and chemical exports.

While UK officials have since negotiated a new trade agreement with the US, the tariffs still applied during April and were cited as a major factor in the economic downturn.

“After increasing for each of the four preceding months, April saw the largest monthly fall on record in goods exports to the United States with decreases seen across most types of goods, following the recent introduction of tariffs,” said Liz McKeown, Director of Economic Statistics at the ONS.

Tax pressures, weak demand weigh on output

Domestically, the economic landscape in April was shaped by higher energy bills, increases to payroll taxes and the national minimum wage, and an overall tightening of household finances.

Retail sales fell as consumers pulled back after stronger spending earlier in the year.

Real estate and legal services experienced a sharp drop in activity, reflecting a slowdown in home sales amid tax-related transaction changes.

The latest figures contrast sharply with the stronger-than-expected performance in the first quarter, which Labour had touted as evidence that the UK economy was turning a corner.

However, economists have warned that much of that strength was driven by temporary factors, including a rush by exporters to ship goods ahead of anticipated tariffs.

“Weaker growth is a headache for the chancellor as it makes generating the revenue government needs to support its sizable spending plans more difficult, increasing the chances of further tax rises in the autumn Budget,” said Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales in a Bloomberg report.

Outlook dims for second quarter

The outlook for the second quarter remains muted.

Most analysts now expect growth of just 0.1% between April and June, significantly below earlier forecasts.

The fragile trajectory of the economy is further clouded by Trump’s escalating trade measures and ongoing global uncertainty.

While April’s construction growth offered a glimmer of resilience, the broader picture remains troubling for policymakers, businesses and consumers alike.

With mounting job losses and tighter financial conditions, the challenge of sustaining growth in the face of global headwinds and domestic constraints continues to loom large.

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