Israel attacked Iran again after US strikes on its nuclear facilities over the weekend fueled fears of an escalating conflict in the Middle East. Among Israel’s targets was the Fordow nuclear site, as well as airports and an internal-security headquarters run by the Islamic Revolutionary Guard Corps.  

Underscoring the spreading impact of the standoff, major global airlines have extended flight cancellations to the Persian Gulf, disrupting air traffic to hubs like Dubai. The US strikes also weighed on investor sentiment, with European equities mostly in the red today. 

Tehran has vowed retaliation for the US strikes, but has yet to announce whether or how to hit American targets in the Middle East. Iranian leaders may choose to salvage what they can from damaged nuclear sites and hide it elsewhere, while launching limited “face-saving” strikes against American and Israeli targets, writes Bloomberg columnist James Stavridis. —Philip Lagerkranser

What You Need to Know Today

Novo Nordisk is terminating its recently formed obesity-drug partnership with Hims & Hers Health, a fresh blow for the Danish drugmaker behind Ozempic. Novo Nordisk cited concerns about sales of compounded drugs and accused Hims of “deceptive marketing that put patient safety at risk.” Shares in Novo Nordisk fell today on the news. 

HSBC expects hundreds of millions in extra costs related to its push to get more employees to return to the office, we’re told. Securing the extra space needed to support a return to three office days a week in four cities including London would cost around $200 million a year. That could complicate CEO Georges Elhedery’s goal of finding $1.5 billion in annual cost savings. 

Germany plans to lift defense spending to 3.5% of GDP over the next five years, helping it meet NATO’s new goal. An additional 1.5% in military-related spending will be required to reach the 5% benchmark that US President Donald Trump has demanded — and which NATO members are set to back at this week’s summit in The Hague. One holdout is Spain, which has said it won’t commit to such high targets and has secured an exemption. 

Ireland would get hit hard by US pharmaceutical tariffs, with around 75,000 jobs potentially lost, said Finance Minister Paschal Donohoe. Ireland is running a huge budget surplus thanks to corporate tax income from US multinationals like drugmaker Pfizer. Donohoe, speaking today at Bloomberg’s Future of Finance in Ireland event in Dublin, said the government plans to use that buffer to support capital investment. 

An experimental drug from Lilly helped patients maintain muscle mass when taking the Wegovy weight-loss treatment, a new study found. Those who took Wegovy combined with bimagrumab lost 22.1% of their body weight in 48 weeks, with 92.8% of that coming from the body’s fat stores, according to results shared today at a conference in Chicago. That was a significantly better outcome than for those who took Wegovy alone. 

Tesla kicked off its long-promised driverless taxi service without much fanfare. The first trips were limited to a narrow portion of Austin, Texas, and Tesla handpicked a friendly group of retail investors and social-media influencers for the initial rides. Sawyer Merritt, a Tesla investor who runs an account focused on the company, called the experience “awesome.”

A Tesla robotaxi vehicle in Austin on June 22. Photographer: Tim Goessman/Bloomberg

Angola’s government will sign a pact with Symbion Power’s Hydro-Link unit to build a $1.5 billion private transmission line that will connect hydropower sites with mines producing critical minerals in neighboring Democratic Republic of Congo. The 1,150-kilometer (715-mile) connection between the two southern African nations will have the potential to deliver as much as 1.2 gigawatts of power, and is scheduled to be completed in 2029.

What You’ll Need to Know Tomorrow

For Your Commute

What’s the go-to refreshment for CEOs when they don’t want booze? From 0% alcohol beer to an elaborate, kombucha-based cocktail, here’s what a selection of c-suite bosses drink when they’re not, well, drinking. 

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