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Iran strikes Kuwait airport and reaches tentative peace MOU with Washington on the same day, testing whether the April ceasefire can hold

Iran struck Kuwait's international airport on Wednesday, killing one Indian national, even as US-Iran negotiators reached a tentative 60-day ceasefire extension and peace framework still awaiting Trump's sign-off. A bumper May jobs report -- 172,000 added against a 105,000 forecast -- pushed Fed rate-hike expectations to nearly 70 percent by year-end; Fed Cleveland President Hammack said it may soon be appropriate to tighten. The WFP warned the Iran war is pushing 45 million additional people into acute hunger, forcing the agency to serve 1.5 million fewer globally than before the February strikes began.

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WFP: 45 million more people face acute hunger as Iran war drives global food and cost crisis

The UN World Food Programme confirmed on June 5 that its pessimistic March projections are materialising: the US-Israeli war on Iran has closed the Strait of Hormuz, driven oil prices above $100 per barrel and is pushing an estimated 45 million more people into acute hunger on top of the 320 million already food insecure globally. WFP director Jean-Martin Bauer told AFP the agency will now serve 1.5 million fewer people in 2026 than planned and warned that if the conflict lasts six months, more than nine million could lose food assistance -- with Somalia facing a pipeline break next month that would leave no food for distribution in a country already at famine risk in one district. "What is shaping up is the return of a global cost of living crisis of the likes that we experienced in 2022," Bauer said, adding the humanitarian system is now caught in a double squeeze of rising needs and rising delivery costs, weakened by aid funding cuts since the Trump administration took office.

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The UN World Food Programme confirmed on June 5 that its pessimistic March projections are materialising: the US-Israeli war on Iran has closed the Strait of Hormuz, driven oil prices above $100 per barrel and is pushing an estimated 45 million more people into acute hunger on top of the 320 million already food insecure globally. WFP director Jean-Martin Bauer told AFP the agency will now serve 1.5 million fewer people in 2026 than planned and warned that if the conflict lasts six months, more than nine million could lose food assistance -- with Somalia facing a pipeline break next month that would leave no food for distribution in a country already at famine risk in one district. "What is shaping up is the return of a global cost of living crisis of the likes that we experienced in 2022," Bauer said, adding the humanitarian system is now caught in a double squeeze of rising needs and rising delivery costs, weakened by aid funding cuts since the Trump administration took office.

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Iran strikes Kuwait airport, US says missiles intercepted; both sides signal readiness for force

Iranian missiles and drones struck Kuwait's international airport on Wednesday, killing one Indian national and injuring others, according to state news agency KUNA. US Central Command said several Iranian ballistic missiles aimed at Kuwait fell short or were intercepted, and that no US personnel or assets were harmed in Kuwait or Bahrain. The attack followed US strikes on Iranian radar and drone sites and came as Washington and Tehran continue ceasefire talks brokered by Pakistan.

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Iranian missiles and drones struck Kuwait's international airport on Wednesday, killing one Indian national and injuring others, according to state news agency KUNA. US Central Command said several Iranian ballistic missiles aimed at Kuwait fell short or were intercepted, and that no US personnel or assets were harmed in Kuwait or Bahrain. The attack followed US strikes on Iranian radar and drone sites and came as Washington and Tehran continue ceasefire talks brokered by Pakistan.

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US hospitality jobs surge 70,000 in May ahead of World Cup; overall payrolls rise 172,000

The US economy added 172,000 jobs in May, far exceeding the 105,000 expected, driven by a 70,000 surge in leisure and hospitality hiring ahead of the World Cup, the Bureau of Labor Statistics reported. Food and drink establishments alone contributed 48,000 of those positions. The unemployment rate held at 4.3%, while average hourly earnings rose 3.4% year-over-year, lagging inflation at 3.8%.

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The US economy added 172,000 jobs in May, far exceeding the 105,000 expected, driven by a 70,000 surge in leisure and hospitality hiring ahead of the World Cup, the Bureau of Labor Statistics reported. Food and drink establishments alone contributed 48,000 of those positions. The unemployment rate held at 4.3%, while average hourly earnings rose 3.4% year-over-year, lagging inflation at 3.8%.

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Investors Boost Bets for Fed Rate Rise After Strong US Jobs Report

Investors increased wagers on a Federal Reserve interest rate rise following a stronger-than-expected US jobs report. The shift in market expectations reflects the latest labor market data. The report adds to debate over the pace of monetary tightening.

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Investors increased wagers on a Federal Reserve interest rate rise following a stronger-than-expected US jobs report. The shift in market expectations reflects the latest labor market data. The report adds to debate over the pace of monetary tightening.

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US job growth accelerates in May 2026, beating expectations

Background: The US labor market stabilized in April 2026, adding 115,000 jobs. In May 2026, job growth accelerated to 172,000, well above forecasts, driven by healthcare, leisure, and construction. The unemployment rate held steady at 4.3%. Upward revisions were made for March and April. Healthcare and social assistance led with 47,200 new jobs, leisure and hospitality added 70,000, and construction improved for the third consecutive month, partly due to data center construction for AI. Manufacturing added 7,000 jobs month-over-month but remained negative year-over-year.

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Background: The US labor market stabilized in April 2026, adding 115,000 jobs. In May 2026, job growth accelerated to 172,000, well above forecasts, driven by healthcare, leisure, and construction. The unemployment rate held steady at 4.3%. Upward revisions were made for March and April. Healthcare and social assistance led with 47,200 new jobs, leisure and hospitality added 70,000, and construction improved for the third consecutive month, partly due to data center construction for AI. Manufacturing added 7,000 jobs month-over-month but remained negative year-over-year.

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Semiconductor sell-off threatens Wall Street rally

A sharp decline in semiconductor stocks is endangering Wall Street's prolonged winning streak. The sell-off, driven by sector-specific headwinds, has raised fears of a broader market correction and underscores the tech sector's vulnerability.

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A sharp decline in semiconductor stocks is endangering Wall Street's prolonged winning streak. The sell-off, driven by sector-specific headwinds, has raised fears of a broader market correction and underscores the tech sector's vulnerability.

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US House passes Ukraine Support Act defying Trump, with bipartisan support

The US House of Representatives passed the Ukraine Support Act on June 4, 2026, by a vote of 226-195, authorizing over $1 billion in security and reconstruction aid and up to $8 billion in defense loans for Ukraine, along with new sanctions on Russia's financial, oil, and mining sectors. The bill was forced to the floor via a discharge petition, bypassing House Speaker Mike Johnson and Republican leadership, with 18 Republicans joining Democrats. It marks the first standalone Ukraine aid package to pass either chamber during President Donald Trump's second term and represents a significant bipartisan rebuke to his foreign policy. The legislation now faces an uncertain path in the Senate, where Republican leaders have blocked similar measures, and a likely presidential veto.

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The US House of Representatives passed the Ukraine Support Act on June 4, 2026, by a vote of 226-195, authorizing over $1 billion in security and reconstruction aid and up to $8 billion in defense loans for Ukraine, along with new sanctions on Russia's financial, oil, and mining sectors. The bill was forced to the floor via a discharge petition, bypassing House Speaker Mike Johnson and Republican leadership, with 18 Republicans joining Democrats. It marks the first standalone Ukraine aid package to pass either chamber during President Donald Trump's second term and represents a significant bipartisan rebuke to his foreign policy. The legislation now faces an uncertain path in the Senate, where Republican leaders have blocked similar measures, and a likely presidential veto.

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Iran claims warning shots at US warships in Gulf of Oman; US denies

On 5 June 2026, Iran's Navy claimed to have fired Qadir missiles and Shahed Danesh offensive drones as warning shots toward US destroyers DDG-103 and DDG-87 in the Sea of Oman, asserting the vessels withdrew to the Indian Ocean. US Central Command (CENTCOM) denied the claim, stating Iranian forces did not attack or fire at US Navy warships and that US forces continue to operate freely while enforcing a blockade against Iran. The incident follows US Indo-Pacific Command's confirmation of a maritime interdiction and boarding of the stateless vessel MT DAVINA in the Indian Ocean. Iran accused US forces of harassment and maritime theft, warning of longer-range weapons if necessary. The event highlights ongoing tensions between Iran and the US in regional waters.

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On 5 June 2026, Iran's Navy claimed to have fired Qadir missiles and Shahed Danesh offensive drones as warning shots toward US destroyers DDG-103 and DDG-87 in the Sea of Oman, asserting the vessels withdrew to the Indian Ocean. US Central Command (CENTCOM) denied the claim, stating Iranian forces did not attack or fire at US Navy warships and that US forces continue to operate freely while enforcing a blockade against Iran. The incident follows US Indo-Pacific Command's confirmation of a maritime interdiction and boarding of the stateless vessel MT DAVINA in the Indian Ocean. Iran accused US forces of harassment and maritime theft, warning of longer-range weapons if necessary. The event highlights ongoing tensions between Iran and the US in regional waters.

Frequently Asked

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What happened at Kuwait's international airport on Wednesday?
Iranian missiles and drones struck Kuwait's international airport, causing damage, flight suspensions and diversions. One Indian national was killed and several others were injured.
Did the US and Iran reach a new agreement on the same day?
Yes, negotiators from both sides announced a tentative memorandum of understanding to extend the ceasefire by 60 days and open formal negotiations to permanently end the war.
What does the proposed MOU cover?
The framework covers freedom of navigation through the Strait of Hormuz, Iran's nuclear and ballistic missile programme, reconstruction and sanctions, and a long-term peace settlement.
How did US Central Command respond to the Iranian strikes?
CENTCOM said several Iranian ballistic missiles aimed at Kuwait fell short or were intercepted, and that US personnel and assets in Kuwait and Bahrain were unharmed. It also shot down five Iranian attack drones and struck a ground control station in Bandar Abbas.
What is the status of the April 8 ceasefire?
The ceasefire, mediated by Pakistan, remains in effect but is being tested by the day's escalation, which was the most intense single-day escalation since April 8.