Good morning. Local infrastructure and small businesses are likely facing the greatest risk of Iranian cyber attacks in response to the U.S. bombings over the weekend.

That’s because those entities, like the Iranian government and its aligned hacking groups, aren’t as sophisticated as large companies and federal assets, which if hacked would produce widespread disruptions, cybersecurity experts said.

• Holding back: Experts see cyberattacks as one way to retaliate against the U.S. after its strikes on Iranian nuclear facilities. But experts said Iran’s government, which possesses the country’s most sophisticated hacking capabilities, would likely hold off on severe attacks for the time being for fear of U.S. retaliation.
   
• Hacktivist threat: There are many “hacktivist” groups aligned with Iran and its interests that could act on behalf of its government, allowing it to shirk responsibility. The U.S. Department of Homeland Security warned about such attacks in an announcement Sunday.
   
• Wake-up call: Even if the cyber retaliation is relatively small, cyber experts said U.S. businesses and governments should take it as an opportunity to review their cyber defenses.

New York to build one of first U.S. nuclear-power plants in generation, a test of Trump-era regulatory overhaul.

New York intends to build a large nuclear-power facility, the first major new U.S. plant undertaken in more than 15 years and a big test of President Trump’s promise to expedite permitting for such projects.

The project will offer a practical assessment of the executive orders Trump signed in May that aim to accelerate development of nuclear-power projects. Trump’s orders outlined plans to overhaul the U.S. nuclear regulator, fast-track licenses for new projects, boost domestic fuel supplies and use federal lands for reactors for the military or large data centers for artificial intelligence.

Fed to stop examining reputational risk.

The Federal Reserve said its examination programs of banks will no longer include reputational risk.

The banking regulator, in a supervision and regulation letter Monday, said it would start reviewing and removing references to reputation and reputational risk from its supervisory materials, including its examination manuals. Instead, the Fed said it would replace these references with more specific discussions of financial risk.

• Ford Motor still faces difficulties obtaining vital magnets made with rare-earth elements, despite a deal the U.S. struck with China to ease export controls, a company executive said Monday. Several other carmakers say that the pace of export license approvals for rare-earth magnets hasn’t changed significantly.
   
• Automated hiring systems are a black box to job seekers. After more than 100 unsuccessful applications, one job seeker wondered if he’d been blackballed by the software, and sued.
   
• The U.K.’s antitrust authority said it has proposed to designate Google as having strategic market status in general search and search advertising, paving the way for measures that could change how the U.S. tech company operates.
   
• Advertising holding company Omnicom Group can proceed with its proposed acquisition of rival Interpublic Group after the companies promised not to collude on politically motivated ad boycotts, the Federal Trade Commission said.

Iran fires on U.S. base in Qatar, as Gulf neighbors close airspace.

Iran launched missiles at a U.S. base in Qatar and at Iraq, where the U.S. keeps military facilities, officials said. The U.A.E., Bahrain and Kuwait closed their airspaces. The U.S. military intercepted missiles and there were no casualties.

Iran warned Qatar prior to Monday’s attack on an American military base in the Gulf country, several Arab and other officials familiar with the situation said. Afterward, Iran’s Supreme Leader Ali Khamenei posted on X that his country would respond when attacked. His comments come days after the U.S. bombed Iranian nuclear sites.

Earlier, Iran took the first step toward ending its cooperation with the United Nations atomic-energy agency effectively leaving Iran free to do what it wants without oversight of its nuclear program.

• Ships Go Off Course Near Hormuz Strait After Navigation Systems Jammed
• Trump’s Iran Attack Spurs Concerns of Retaliation in the U.S.
• Trump Says Iran, Israel Agree to Truce
• U.S. Attack on Iran Injects Uncertainty Into an Already Uncertain Economy

• Canadian Prime Minister Mark Carney said he will pursue new strategic economic agreements with allies regardless of the outcome of talks between Washington and Ottawa to resolve the current trade row.
   
• Nearly two million student loan borrowers are at risk of having their wages garnished this summer.
   
• Hotel owners are in open revolt against Los Angeles’s new $30-an-hour minimum wage, the latest blow to one of the country’s poorest-performing lodging markets.
   
• The conflict in the Middle East increases the risk that businesses and households in the U.K. will expect the rate of inflation to remain high, and raise their prices and wage demands, a policymaker at the Bank of England said Tuesday.

• The Supreme Court on Monday cleared the way for the Trump administration to swiftly deport certain migrants to countries they aren’t from.
   
• President Trump escalated his long-running public attack on the Federal Reserve, creating a lose-lose situation for the central bank as it navigates the risks of higher prices and weaker growth from tariffs.
   
• Axel Springer said it plans to double its value within five years supported by artificial intelligence, calling time on the business model of maximizing clicks and advertising.
   
• Closing the Strait of Hormuz would be a Pyrrhic victory for Iran, itself a major oil exporter, and would likely draw the U.S. further into the conflict in more than just military ways, Spencer Jakab writes in a new column.

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