The World in Brief from The Economist

Mr Trump said he would increase tariffs on cars from the EU to 25%, from 15% currently, and accused the bloc of “not complying” with a trade deal struck last year

Donald Trump dismissed a new proposal from Iran for negotiations with America, though details of the offer are unclear; The Pentagon agreed deals with Amazon, Microsoft, Nvidia and Reflection AI, authorizing use of their AI models on its most classified networks. Google, OpenAI and SpaceX reached similar deals earlier this year. Anthropic, which was designated a supply chain risk by the defense department in March, was not included in the list of approved suppliers.

The president said America would “see how long they hold out”, adding to concerns that the Strait of Hormuz will not reopen soon. Also, America’s secretary of war told Congress that a ceasefire with Iran “pauses” a deadline set by the War Powers Resolution.

Motjaba Khamenei, Iran’s supreme leader, vowed in a statement to maintain control of the Strait of Hormuz and put an end to “the enemies’ abuses of the waterway”.

Motjaba Khamenei, Iran’s supreme leader, vowed in a statement to maintain control of the Strait of Hormuz and put an end to “the enemies’ abuses of the waterway” (although Mr Khamenei has not been seen in public since he succeeded his father in March); America’s Congress passed a bill to reopen the Department of Homeland Security, which has been shut for 75 days.

The price of Brent crude, the global oil benchmark, soared past $125 a barrel—its highest level since 2022—before falling. Also, the Pentagon revealed that the war with Iran has cost America $25 billion so far.

Meta reported revenues of $56.3bn in the first quarter, up 33% year on year and ahead of expectations.

Meta reported revenues of $56.3bn in the first quarter, up 33% year on year and ahead of expectations; Jerome Powell said he had “no choice” but to remain on the Federal Reserve’s board until the Justice Department’s criminal investigation into America’s central bank was “well and truly over”

Donald Trump claimed King Charles III “agrees with me even more than I do” that Iran should not have a nuclear weapon. Also, regulators charged Meta with breaking EU law by failing to prevent children under the age of 13 from using its platforms.