Inflation & Energy Shock: U.S. CPI hit 4.2% in May, the highest since 2023, with energy prices driving most of the jump as the Iran-related disruption keeps pressure on oil, gasoline and shipping. US-Iran Deal Politics: Vice President JD Vance says Washington will pursue a nuclear agreement with Iran even without Israel’s approval, while Trump pushes for a fast signing and Hormuz reopening—Israel’s opposition warns any deal leaves Iran’s regime and missile program intact. Israel-Lebanon Security: Despite a fragile ceasefire, Israeli strikes in southern Lebanon reportedly killed multiple people and targeted Hezbollah infrastructure, including tunnel-linked routes and weapons storage. Defense Tech & Autonomy: Reports say Israel is expanding AI-controlled drones for surveillance and strike missions, reflecting a broader shift toward more autonomous warfare. AI in Military Targeting: Anthropic’s CEO said a U.S. AI-assisted strike on an Iranian school didn’t cross the company’s “red lines,” as scrutiny grows over how Western AI tools are used in targeting. Regional Trade & Diplomacy: Somaliland’s president is set to visit Israel, with talks expected to cover security, trade and water/renewables—an added geopolitical move near key shipping lanes. Local Industry Angle: A U.S.-Israel defense-technology cooperation push in the NDAA faces backlash in Congress amid concerns about deeper military integration.