Iran launches missile barrage at Israel

Good morning. Today we’re covering:

But we start with the latest news from the Middle East: Iran fired a barrage of missiles at Israel last night, hours after Israeli forces launched a ground offensive against Hizbollah in southern Lebanon as the region inches closer towards all-out war.

The Israeli military said that approximately 180 missiles had been fired into Israel from Iran since the beginning of the attack at about 7:30pm local time.

Israel’s air defences carried out “a large number of interceptions,” said Daniel Hagari, the Israeli military spokesperson. “There were a few hits in the centre and other areas in the south of the country,” he said, adding that the military was not aware of any casualties.

The attack, which came with little warning, marked a big escalation in tensions between Iran and Israel, which has recently stepped up attacks on Tehran’s proxies, notably Hizbollah in Lebanon.

Speaking at the outset of a political security meeting several hours after the attack, Israeli Prime Minister Benjamin Netanyahu said “Iran made a big mistake tonight — and it will pay for it”. Read the full story.

Our live blog is tracking the latest developments, and we have more coverage below on the implications of yesterday’s escalation.

• Oil prices surge: Brent crude rose as much as 5 per cent to $75.40 a barrel in intraday trading yesterday following Iran’s missile attack on Israel.

• Military briefing: Israeli officials expect a huge test in the days ahead for the country’s multi-layered air defence system that includes the Iron Dome.

• Go deeper: Israel’s land offensive into Lebanon this week follows multiple invasions of its northern neighbour over the past 50 years. Here’s how the last three conflicts ended.

Here’s what else I’m keeping tabs on today:

• Economic data: Singapore’s purchasing managers’ index for September is due while South Korea reports CPI inflation data for the month.

• US election: Vice-presidential candidates JD Vance and Tim Walz face off in a debate at 9am HKT.

• Holidays: Financial markets are closed in China as Golden Week continues. In India they are closed for Mahatma Gandhi’s birthday.

Five more top stories

1. India has tightened rules on derivatives trading to curb the frenzy among millions of young retail investors who have piled into high-risk options and short-term bets on the country’s booming stock market. Analysts have likened the fevered interest in derivatives trading to gambling in a nation where betting is not legal.

2. Swiss authorities have stepped up action against the family of Indonesian president-elect Prabowo Subianto over outstanding tax dues owed by the new leader’s brother and influential tycoon, Hashim Djojohadikusumo. Geneva has been given the go-ahead to seize bank accounts linked to Hashim and his wife Anie in an effort to recover tax dues. Prabowo is set to take office later this month and Hashim is one of his closest advisers.

3. Nike reported a steeper than expected drop in sales for its most recent quarter, extending a tumultuous several months for the world’s largest sportswear maker. The earnings come as Nike is preparing for a new chief executive after John Donahoe, who held the top job for more than four years, said he will retire in two weeks.

4. OpenAI is betting that artificial intelligence-powered assistants will “hit the mainstream” by next year as Big Tech groups race to bring so-called AI agents to consumers. AI agents, which can reason and complete complex tasks for people, have become the newest front in the battle between tech companies such as Google and Apple.

5. Pink Floyd, the British rock band, has agreed to sell the rights to their vast catalogue of music including hits such as Wish You Were Here and Money to music label Sony for about $400mn. The deal resolves the fate of one of the most valuable assets during a boom time for sales of vintage rock music.

The Big Read

Ukraine is heading into what may be its darkest moment of the war so far. It is losing on the battlefield in the east of the country, with Russian forces advancing relentlessly, and facing the prospect of winter energy shortages. As Volodymyr Zelenskyy returns home from the US, he faces an exhausted country and increasing pressure to find a negotiated settlement, with soldiers at the front fearing a “forever war”.

We’re also reading . . .

Chart of the day

Korea Zinc’s share price is up almost 25 per cent since Seoul-based private equity firm MBK announced an initial tender offer for the world’s biggest zinc smelter. But the management of Korea Zinc say it is being subjected to a hostile takeover bid led by foreign-backed “corporate raiders” intent on selling the company off to China.

Watch this

What impact would a Donald Trump or Kamala Harris presidency have on Taiwan and the semiconductor supply chain? How much longer can south-east Asian countries sustain their balancing act between the US and China? A panel of experts addressed these questions and more in an FT Live webinar last week on the US election and its implications for Asia. If you missed it, you can watch by signing up for a video on-demand pass.

And don’t miss the inaugural Energy Transition Summit India in New Delhi October 8-9. Register now to attend in-person or digitally.

Additional contributions from Gordon Smith and Tee Zhuo