And Berkshire Hathaway reports weaker fourth quarter earnings.
Kia ora and welcome to your Monday summary of international business and political news.
We start with ongoing developments in the Middle East following the attack by the United States and Israel on Iran. US President Donald Trump told CNBC that military operations in Iran were “ahead of schedule”.
Three US service members had been killed in the operation, while at least five others had been wounded.
Iran's state-controlled media confirmed long-time supreme leader Ayatollah Ali Khamenei was killed during US-Israeli air strikes. President Masoud Pezeshkian labelled the killing of Khamenei a "declaration of war against Muslims".
Trump said many other Iranian leaders were also dead, while Iran claimed "hundreds of civilians" had been killed or injured, the ABC reported.
Israeli Prime Minister Benjamin Netanyahu promised to intensify air strikes over the coming days, in a "full strength" campaign against Iran.
"Our forces are now striking at the heart of Tehran with intense power, and this will only escalate in the days ahead," Netanyahu said.
Israeli Prime Minister Benjamin Netanyahu.
Meanwhile, Iranian Foreign Minister Abbas Araghchi rejected Trump’s warning not to retaliate against the US and Israeli bombardment, claiming there was “no limit” to the country’s self-defence, Al Jazeera reported.
“What the United States is doing is an act of aggression. What we are doing is the act of self-defence. There are huge differences between these two.”
Global markets are heading into a high-risk period following the attacks on Iran. Brent crude oil closed last week near seven-month highs around US$73 per barrel after climbing roughly 16% since the start of the year.
Energy traders were now modelling significantly wider ranges, with several scenarios pointing towards US$80 if supply flows face disruption or credible threat, according to financial advisory firm deVere Group.
At least two ships have been hit by unknown projectiles near the Strait of Hormuz, the BBC said. One vessel sailing east of the vital trade route was struck, while another was hit off the coast of the United Arab Emirates, but planned to continue its journey.
Iran warned ships not to pass through the strait, which carries about 20% of the world's oil and gas. International shipping has almost come to a standstill at the strait's entrance.
Elsewhere, Wall Street was already volatile after stocks dipped on Friday local time after the latest US producer price index data came in much hotter than expected, adding sticky inflation to a list of concerns for markets, CNBC reported.
The core measure, which excludes volatile food and energy prices, increased a seasonally adjusted 0.8%, more than the 0.6% gain in December, and well ahead of estimates of 0.3%.
Former US President Bill Clinton testified at a congressional committee investigating the late financier and sex offender Jeffrey Epstein. Clinton said their "brief acquaintance" ended years before Epstein’s crimes came to light, the BBC reported.
"I saw nothing, and I did nothing wrong," Clinton said.
He also criticised the committee for having his wife, former US Secretary of State Hillary Clinton, testify at the committee. Images of the former president were published in the Epstein files. There was no suggestion that appearing in the Epstein documents implied wrongdoing.
In business news, Paramount Skydance has beaten Netflix to take over Warner Bros Discovery after the streaming giant refused to increase its bid. The US$110 billion deal ends a bidding war between Paramount and Netflix, but the takeover still requires regulatory approval, the Guardian reported.
In a statement, Netflix co-chief executives Ted Sarandos and Greg Peters said the deal was no longer “financially attractive” at the price required to match Paramount’s latest offer.
Paramount is expected to merge its Paramount+ service with Warner Bros' HBO Max to create a competitive streaming offering against competitors Netflix, Amazon and Disney, the BBC said.
Investment conglomerate Berkshire Hathaway reported that operating earnings for the fourth quarter totalled US$10.2b, down almost 30% from the same quarter a year earlier, following weakness from its insurance business.
Overall, last year’s operating earnings totalled about US$44.5b, down 6% from the previous year. Net income fell to US$19.2b, compared with US$19.69b in 2024.
The latest financial report marked the first year Berkshire’s annual letter to shareholders wasn’t written by Warren Buffett. ‘The Oracle of Omaha’ announced in May last year that he would step down and named Greg Abel as his successor. Abel has now taken the helm after Buffett’s six decades of leading the company, CNN reported.
To the UK, Barclays senior banker Katharine Braddick has been appointed as the next deputy governor of prudential regulation at the Bank of England, the Guardian reported.
She will succeed Sam Woods when he steps down in June. The Treasury said Braddick brought significant expertise to keep the UK safe and open for investment, support growth, and competitiveness.
Chancellor Rachel Reeves described Braddick as a “pro-business” leader. “She…will help ensure the UK remains one of the best places in the world to do business.”
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