Hello from the FT newsroom, where we are closely tracking diplomatic efforts to bring the US-Israeli war on Iran to an end. In an interview aired on Wednesday, US President Donald Trump said his Chinese counterpart Xi Jinping had personally denied that Beijing was sending arms to Iran. Yet our reporters have revealed that Tehran used a Chinese spy satellite to target US military bases across the Middle East during the conflict.

As the US forges ahead with its blockade of Iranian ports in the Strait of Hormuz, and Lebanon and Israel engage in talks for the first time in decades, the world has been left guessing: are we moving towards peace or prolonged regional conflict?

In other news, former hedge fund boss Crispin Odey has dropped his £79mn libel claim against the FT over our reporting of sexual misconduct allegations against him, acknowledging that we would win in our defence. As our editor Roula Khalaf said, “this is a case that should never have been brought”. Its removal is a vindication for the women who courageously shared their stories of abuse with us.

My choices this week

1. Twenty years ago, the global economy was shaken by a “China shock” as a wave of low-cost goods destroyed the business models of manufacturers in advanced economies. Now a second shock is under way — and it is even more threatening to China’s trading partners. (Free to read)
2. Meta is building an AI version of chief executive Mark Zuckerberg that can engage with employees in his stead. Here are more exclusive details on the social media giant’s push for “personal superintelligence”.