Inside Iran’s ‘impenetrable’ nuclear bunker

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0:33Good morning from the Financial Times. Today is Monday, June 16th, and this is your FT News Briefing. Israel wants to take out Iran's nuclear program, but a mountain stands in the way. And Nippon Steel finally got the go-ahead to buy its American rival. Plus, investors can't seem to get enough of a certain shiny metal. Gold has had a historic rally in 2025, and even the most pro-gold bugs out there didn't really see this coming. I'm Kasia Broussalyan, and here's the news you need to start your day.

1:20Israel and Iran traded missile strikes over the weekend, escalating the conflict between the two. Israeli Prime Minister Benjamin Netanyahu has said it'll go on as long as it takes to destroy Iran's nuclear program. But that's kind of like facing Mount Doom, as my colleague John Paul Rathbone, describes it. He's been following the weekend's events, and he's here with me now. Hey, JP. Hi, good to be here. So just explain the situation here to me. What makes Iran's nuclear facilities so difficult to target? So Iran's nuclear program is what it's all about for Israel. And there are two main ones that militarily are of interest.

2:03One is at Natanz, which has been as a surface facility, which has largely been destroyed. And there's another one at Fodro, which is, for Israeli defense planners, akin to Mount Doom. It's buried deep within a mountain, about half a mile down. It's heavily guarded. The mountain makes it difficult to strike at by bombers and fighter jets. It may even be impenetrable with so-called bunker buster, massive ordnance penetration bombs that only the US has. And it's where Iran is thought to have its centrifuges whirring to enrich uranium, which, of course, is one of the key steps towards making a nuclear weapon.

2:43Got it. So basically, at least one of these nuclear facilities is virtually impenetrable. But just back up for a second and tell me about the timing of all this. Why did Israel decide now to try and take out Iran's nuclear capabilities? Well, Netanyahu claimed that he made the decision back in November, but really it's a string of events. One of the most important is that Iran's proxies, Hezbollah, Hamas, the Houthis, are absolutely on the back foot or near defeat. The second is that last year, Iran and Israel exchanged missiles, attacks. and during that Israel led a very carefully campaign which basically took out a substantial amount of Iran's air defenses.

3:31And then third of all is the environment was kind of propitious for it. The U.S. was starting talks with Iran, which Israel was lukewarm about at best. So there is some sense that Netanyahu may have forced the U.S. hand and if he didn't get exactly a green light from the U.S. administration, got a yellow light. Right. And you mentioned that Israel has done considerable damage to Natanz through its own military capacity, but that taking out for dough would require bigger bombs, maybe only bombs that the U.S. has. What would it take for the U.S. to get more involved? That is the million-dollar question.

4:10And if Iran escalated the conflict and attacked U.S. bases and assets in the region, if Iran decided to close the Strait of Hormuz, which is this key strait through which so much of the world's energy flows, then the U.S. and maybe even other world powers, including China, might be compelled to intervene. So Iran's in this extremely difficult spot. A lot of its own capabilities have been weakened. If it escalates, it risks bringing in the US. If it doesn't, it looks impotent and weak. The key factor here, the X factor, is what happens to its nuclear-enriched uranium. It's possible that if Iran is pushed into a corner, it will have secreted some into one of its deep underground facilities, such as Fodro, and that this could then be used to hastily assemble a nuclear weapon of some sort.

5:07Now, clearly, JP, Iran's nuclear program is top of mind for Israel. It has been for many years. But is destroying its capabilities truly the endgame? Israel has this really unparalleled ability to execute complex, multi-layered military operations. But these are always tactical steps. what the end game is, is always left a bit unclear. We see that in Gaza, and we also slightly see that in Iran as well. What is the end game? Destruction of the regime. Israel has hinted, of course, that it would like that, but not made it explicitly. What it has explicitly said is an end of Iran's nuclear program.

5:51But that's like halving a distance, as you can halve a distance and halve a distance and halve a distance, but never get there. John Paul Rathbone reports on the conflict in the Middle East for the FT? Thanks, JP. Thank you.

6:10Japan's Nippon Steel is taking over U.S. Steel for nearly$15 billion. President Donald Trump approved the deal on Friday after more than a year and a half of twists and turns. Nippon first agreed to buy its troubled American rival in December 2023. But the proposal was widely criticized by labor unions, lawmakers, and then-President Joe Biden. His administration blocked the merger on national security grounds. Trump campaigned against the acquisition last year too, but he's letting it move forward now after Nippon agreed to give the U.S. government something called a golden share. That'll essentially let Washington veto certain changes to the company going forward.

7:00Gold has officially overtaken the euro as the world's second most important reserve asset. The precious metal now makes up around 20 percent of global reserves. But a few glossy alternatives are sparkling a little brighter these days. The FT's Leslie Hook has been prospecting the deposits, and she's here with me now. Hey, Leslie. Hi, Kesha. So just give me the details here. How well is gold performing these days? Well, gold has had a historic rally in 2025, and even the most pro-gold bugs out there didn't really see this coming. We've seen gold reach a record high in real terms, adjusted for inflation.

7:42And what we've learned recently is that global central banks' holdings of gold have surpassed the euro, and gold has become the world's second largest reserve asset, which is a really big moment. We've seen central banks, particularly in emerging markets, really going for gold with record purchases over the past three years. It has really just gone from strength to strength. And now, U.S. President Donald Trump, I'm assuming, has quite a bit to do with this. Can you go into a little bit more detail about why? Well, one of the key reasons for gold's huge rally is really Trump. Having Trump in the White House has introduced uncertainty and introduced questions about the U.S.

8:27dollar, and it has really sent asset managers and retail investors and central banks all scrambling for gold. Gold is a traditional safe haven, and the dollar is also a traditional safe haven. But more and more, investors are starting to question dollar's safe haven status, which has really benefited gold. Now, I mentioned that gold isn't the only glittering metal that's doing well right now. What else has caught people's attention? Well, in the last couple weeks, there's been a really interesting kind of sub-rally in platinum and in silver. Gold is, of course, the most common and widely used investment metal, but silver and platinum also have those investment uses.

9:08So I think there's been kind of a knock-on effect, but it's also because there's some concerns that gold may be getting a little overheated, a little overvalued right now, and investors are saying, well, what else can I go for? And on top of that, there's big industrial demand for these metals. Platinum is used in automotive catalysts, it's used in jewelry, and silver is used in a lot of industrial applications. A lot of people think of silver jewelry, but it's also used in solar panels and electric vehicles. So silver and platinum have seen big price rallies and demand for silver and platinum outstrip supply.

9:45All right, so precious metals are having a moment for a number of different reasons. I guess I'm wondering what that says about the market more broadly. I think it shows that people are afraid and confused, and in times of uncertainty, maybe it's easier to own something that you can hold on to. And I think there's also big signals here about the U.S. dollar. I think investors are increasingly, and central banks are seeing, gold is a little bit of a U.S. dollar hedge. Leslie Hook is the FT's Natural Resources Editor. Thanks, Leslie. Thank you.

10:26The UK's MI6 is about to have a new top spy. Her name is Blaise Metrovelli, and she's the first woman to lead the secret intelligence service in its 116-year history. Metrovelli is currently the agency's head of technology. Think of Q from the James Bond movies. Now she'll be known as C, the moniker for Britain's spy chief. She'll take over from Richard Moore, who's finishing up a five-year term in October. One of Metro Valley's first big challenges will be figuring out how to manage relations with the CIA. That's been her agency's closest partner. But security interests have diverged since President Donald Trump, we took office.

11:08You can read more on all of these stories for free when you click the links in our show notes. This has been your daily FT News Briefing. Check back tomorrow for the latest business news.

11:28The next five podcast is all about AI sovereignty. Stefan Israel at AWS joins me. Digital borders shall not become digital walls which are not interconnected. As does Catherine DiLorenzo at A &O Sherman. It looked like a race to write the rulebook and not just a race to build the most powerful technology. And Ali Oosten at McKinsey. Sovereignty. Anchors, data centers, engineering, and AI talent in the country. Listen to The Next Five wherever you get your podcasts. Enjoy. Capital raising is being redefined in real time, from macro disruptions and shifting investor expectations to AI-driven demand and the rise of private credit.

12:08When headlines can tilt markets overnight, how can companies stay on course? Strategic Alternatives, the RBC Capital Markets podcast, explores how corporates and investors are navigating new pathways to raise capital, create value, and drive growth. When conditions change, alternatives matter. Listen to Strategic Alternatives, available wherever you get your podcasts.