Chief-Exec.com

US embassy in Iraq hit by drone strikes
A drone and rocket attack targeted the US embassy in Baghdad early on Tuesday. Black smoke was seen rising after an explosion in the embassy complex, as well as air defences intercepting another drone. The strikes came hours after air defences thwarted an earlier rocket attack at the embassy and a drone sparked a fire at a luxury hotel frequented by foreign diplomats in Baghdad’s fortified Green Zone. Iraq’s interior ministry initially said that a “projectile” fell on the roof of the luxury al-Rasheed Hotel, before later clarifying it was a drone. It did not specify whether the building itself was the target. “The incident caused no casualties or material damage,” it added. The Times, March 17

Oil prices jump
The price of oil jumped more than five per cent on Tuesday as several countries pushed back against US President Donald Trump's demand that they help secure the key Strait of Hormuz, while Iran targeted crude-producing neighbours. At around 06.15 GMT, US benchmark West Texas Intermediate was up 5.16 per cent at $98.32 a barrel while Brent Crude also rose above five per cent before easing back. Meanwhile, a new drone strike hit the Fujairah oil complex on the UAE's east coast on Tuesday causing a fire but no injuries, local authorities said. The facility, which sits on the Gulf of Oman and enables the UAE to bypass the Strait of Hormuz for some exports, was already hit on Monday. France 24, March 17

Starmer distances UK from Iran war as EU leaders rule out sending warships
Keir Starmer has insisted that the UK will not be drawn into the wider war in the Middle East as European leaders ruled out sending warships to the strait of Hormuz. In his clearest signal yet of the UK’s divergence from Donald Trump’s attack on Iran, the prime minister said he would stand firm in the face of US pressure despite the decision being “difficult, there’s no hiding that”. As concerns mounted at home over US demands for the British military to help keep shipping lanes open, he said: “While taking the necessary action to defend ourselves and our allies, we will not be drawn into the wider war.” Despite threats from the US president that Nato faces “a very bad future” if members fail to help reopen the vital waterway, European leaders underlined Washington’s isolation as Germany and Italy said they had no plans to send ships. Australia, France and Japan have taken a similar position. This drew a further rebuke from Trump, who singled out Starmer’s failure to provide minesweepers to the Middle East, saying it was terrible and that he was not happy with his close ally. The Guardian, March 16

UK drone interceptor start-up in funding talks at $1bn-plus valuation
The British defence start-up Cambridge Aerospace is in talks to raise new funding for its interceptor systems at a more than $1bn valuation at a time when the Iran war has put air defence in focus. Cambridge Aerospace, which launched in 2024 and is chaired by former UK defence minister Grant Shapps, is speaking with investors about raising about $200mn, according to people familiar with the matter. An investment round topping a $1bn valuation, which has not been finalised and could still shift, would herald a steep rise after the start-up raised funding from Spark Capital at a $400mn valuation last year. Led by founder and chief executive Steven Barrett, a Cambridge professor, the start-up is among a group of emerging companies focused on developing cheaper methods of drone and missile interception. The war in the Middle East has underlined the cost asymmetry of firing expensive missiles from air-defence systems such as the US-made Patriots to neutralise Iran’s cheap Shahed drones, the same weapons Russia has used in its war against Ukraine. Financial Times, March 17

Chancellor vows to stop UK tech from 'drifting abroad'
Chancellor Rachel Reeves has told the BBC she wants to stop top British technology firms and scientists "drifting abroad" to make money. She said she wants "the pattern to end", adding that the government was investing £2.5bn in quantum computing and artificial intelligence. At a lecture to business leaders in London later on Tuesday, she will say this investment as well as closer ties with the EU and greater regional powers will help boost sluggish economic growth. The Conservatives said the government "wanted to row back on Brexit" and criticised it for "blaming anyone but themselves for their economic failures". Many tech firms that start in the UK end up moving their businesses overseas, often to the US. Some of the suggested reasons for this are poor investment from the UK government and pension funds; the perceived weakness of the London Stock Exchange; and better tax breaks elsewhere. Speaking to the BBC at the National Quantum Computing Centre in Oxfordshire, Reeves said her UK growth plan showed the benefits of stability and a "strategic and active state". BBC news, March 17

Donald Trump warns Nato faces ‘very bad future’ if allies fail to help US in Iran
Donald Trump has warned that Nato faces a “very bad” future if US allies fail to assist in opening up the Strait of Hormuz, sending a blunt message to European nations to join his war effort in Iran. The US president told the FT in an interview on Sunday that he could also delay his summit with China’s President Xi Jinping later this month as he presses Beijing to help unblock the crucial waterway. “It’s only appropriate that people who are the beneficiaries of the strait will help to make sure that nothing bad happens there,” Trump said, arguing that Europe and China are heavily dependent on oil from the Gulf, unlike the US. “If there’s no response or if it’s a negative response, I think it will be very bad for the future of Nato,” he added. Trump’s comments, made in an eight-minute phone call with the FT, came a day after he appealed to China, France, Japan, South Korea and the UK to join a “team effort” to open up the chokepoint through which a fifth of the world’s oil passes. Iran in effect shut the strait after the US and Israel launched their war more than two weeks ago, sparking fears of a new oil price shock for the global economy. Financial Times, March 16

India hails talks with Iran to open Strait of Hormuz
India has hailed its direct talks with Iran as the most effective way to restart shipping through the Strait of Hormuz, after Donald Trump called on countries to send warships to help the US force open the critical waterway for energy markets. Trump’s call for China, France, the UK and other countries to send “War Ships” to the Strait comes as governments hit by surging energy prices following Tehran’s closure of the waterway weigh up their options, including talks with Iran or military involvement that would risk dragging them into the spiralling Middle East conflict. India’s foreign minister S Jaishankar told the FT that negotiations between New Delhi and Tehran which allowed for two Indian-flagged gas tankers to pass through the Strait on Saturday were an example of what diplomacy could bring. “I am at the moment engaged in talking to them and my talking has yielded some results,” he said in an interview. “This is ongoing. If it is yielding results for me, I would naturally continue to look at it.” “Certainly, from India’s perspective, it is better that we reason and we co-ordinate and we get a solution than we don’t,” he added. “So, if that sort of allows other people to engage, I think the world is better off for it.” Financial Times, March 15

Starmer says UK 'working with allies' on plan for Strait of Hormuz after Trump call
The prime minister, Keir Starmer, says it is clear the US operation has "massively weakened" the military capability of the "abhorrent regime in Iran". But after the conflict Starmer says there is going to need to be some sort of "negotiated agreement" limiting Iran's ability to rebuild their nuclear programme and secure international shipping. He says the Strait of Hormuz must be reopened to "ensure stability in the markets". "That is not a simple task," he says, which is why the UK is working with "all of our allies" to bring a "viable plan" to restore freedom of navigation to the region. BBC news, March 16

UK: food prices will be forced up by Iran conflict, farmers warn
The Iran conflict will trigger the biggest spike in food prices since the invasion of Ukraine, the president of the National Farmers’ Union has claimed. His warning comes as ministers will promise for the first time to hold food production at present levels, as part of a government blueprint for land use this week. Tom Bradshaw told The Times that while food inflation was unlikely to surpass the 19.1 per cent rise in the year to March 2023, the conflict had triggered an “inflationary wave” that would probably peak in the autumn. He also said that profiteering by fuel and fertiliser suppliers may also be worsening inflation. By targeting tankers in the Strait of Hormuz, Iranian forces have disrupted trade in two of the biggest agricultural necessities: oil and fertiliser. Before the US and Israel bombed the Islamic Republic, a fifth of the world’s seaborne trade in oil and gas flowed through the strait, along with a third of that in fertiliser, which is made from gas. The Times, March 16

China urges US to correct 'erroneous ways' over trade probes ahead of Paris talks
Beijing said on Monday it has "lodged representations" and urged Washington to "correct its erroneous ways" after the US launched new trade probes last week, with negotiators from both countries meeting in Paris. Washington's trade investigations target 60 economies, including China, and will look into "failures to take action on forced labour" and whether these burden or restrict US commerce. Those investigations came a day after a separate set of US probes centred on excess industrial capacity that target 16 trading partners, including China, which Beijing's foreign ministry criticised as "political manipulation". "We urge the US side to immediately correct its erroneous ways, meet China halfway … and resolve issues through dialogue and negotiations," Beijing's commerce ministry said in a statement. France 24, March 16

Google scraps AI search feature that crowdsourced amateur medical advice
Google has dropped a new artificial intelligence search feature that gave users crowdsourced health advice from amateurs around the world. The company had said its launch of “What People Suggest”, which provided tips from strangers, showed “the potential of AI to transform health outcomes across the globe”. But Google has since quietly removed the feature, according to three people familiar with the decision. A Google spokesperson confirmed “What People Suggest” had been scrapped. The move came as part of a “broader simplification” of its search page and had nothing to do with the quality or safety of the new feature, the spokesperson said. The revelation comes as the company faces mounting scrutiny over its use of AI to provide millions of users with health information and advice. The Guardian, March 16