Diplomatic efforts to engage Iran will continue after an apparent attack on Tehran's nuclear site at Natanz, the US defence secretary said as he left Israel on Monday.
Lloyd Austin said he was aware of reports of the attack, which Iran blamed on Israel, but had no details.
Iran said on Sunday that it's underground Natanz site had been sabotaged after it experienced power cuts. Foreign Minister Javid Zarif accused Israel of carrying out "nuclear terrorism".
“I’m aware of the reports. I really don’t have anything to add on Natanz," Mr Austin said from Israel's Navatim airbase.
"In terms of, you know, our efforts to engage Iran in diplomacy on the JCPOA, those efforts will continue. And I’m very obviously supportive of the president’s efforts to negotiate a way ahead there. And I’ll just leave it at that.”
Mr Austin reiterated US support for Israel's security in remarks made alongside Prime Minister Benjamin Netanyahu after a meeting on Monday.
Mr Netanyahu said the US and Israel agreed that "Iran must never possess nuclear weapons".
“In the Middle East there is no threat that is more serious, more dangerous, more pressing, than that posed by the fanatical regime in Iran.”
“Iran continues to support terrorists around the world in five continents, threatening civilians everywhere.”
“Iran has never given up its quest for nuclear weapons and the missiles to deliver them, and Iran consistently and outrageously calls for Israel’s annihilation and works towards that goal.”
“My policy as prime minister of Israel is clear. I will never allow Iran to obtain the nuclear capability to carry out its genocidal goal of eliminating Israel. And Israel will continue to defend itself against Iran’s aggression and terrorism.”
Mr Austin' two-day visit to Israel included talks on security co-operation with Israeli Defence Minister Benny Gantz and a tour of Israeli air and missile defence systems and its fleet of F-35 combat aircraft.
Mr Gantz gave Mr Austin a model of the David’s Sling missile system and Mr Austin presented Mr Gantz with the original communique in which the US officially recognised the establishment of the state of Israel.
Natanz sabotage allegations
Details remain scarce about what happened early on Sunday at Natanz.
The event was initially described as a power failure of the electrical grid feeding its above-ground workshops and underground uranium enrichment halls.
While there was no immediate claim of responsibility, suspicion fell immediately on Israel, where several news outlets reported a devastating cyberattack on the Iranian site, orchestrated by the country's intelligence services.
Mr Austin arrived in Israel just as Iran reported that the site lost power hours after starting up new advanced centrifuges capable of enriching uranium faster.
If Israel caused the blackout, it would further heighten tensions between the two nations, already engaged in a shadowy conflict across the wider Middle East.
Mr Austin's visit to the region comes as his colleagues in the Biden administration meet in Vienna with Iranian counterparts, as part of President Biden's attempt to work out an arrangement to re-enter the Iran nuclear deal.
Israel's government has for years described Iran as an existential threat due to its alleged pursuit of a nuclear weapon and its support for militant groups like Lebanon’s Hezbollah.
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Batti Gul Meter Chalu
Producers: KRTI Productions, T-Series
Director: Sree Narayan Singh
Cast: Shahid Kapoor, Shraddha Kapoor, Divyenndu Sharma, Yami Gautam
Rating: 2/5
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
'Moonshot'
Director: Chris Winterbauer
Stars: Lana Condor and Cole Sprouse
Rating: 3/5
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
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On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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