The Times reports Prime Minister Starmer will on Tuesday announce an extra £15 billion defence budget, unveil plans for a new generation of fighter jets, warships and drones, and publish his long-delayed 10-year defence investment plan.

ECB Governing Council member Wunsch said the case for another rate hike is less clear than in June. He said the US‑Iran agreement has largely removed the shock's root. Markets are pricing another move but the necessity is weaker than previously expected; if a further hike is needed he would prefer to act swiftly, though not necessarily in July. Wunsch added inflation will show some second‑round effects and stay above target for several quarters, but he is not overly worried; he would not delay long if data warranted another rate increase, without committing to timing.

Petrobras said output from the Búzios Field reached 1.2 million bpd last Friday, a record high.