US-Iran deal, Poland's tax bracket issues, and EU-China trade tensions

A potential breakthrough in US-Iran relations has emerged, with the Axios portal reporting that negotiators from both nations have agreed on a framework for ending their conflict and reopening the Strait of Hormuz. This agreement includes a 60-day extension of the current ceasefire, during which talks will focus on Iran's nuclear program and the potential lifting of U.S. sanctions. While White House officials have confirmed progress, the final decision rests with President Donald Trump. The news comes amid heightened tensions in the Persian Gulf, and financial markets have reacted cautiously, with Brent crude prices hovering around $90 per barrel, reflecting ongoing concerns about regional stability and oil transport.

Meanwhile, in Poland, the tax system is under scrutiny as the number of individuals falling into the second tax bracket (PIT) has surged to 2.4 million in 2025, a significant increase from the previous year. This trend has fueled demands to raise the current income threshold of 120,000 PLN. A "Rzeczpospolita" panel of economists showed divided opinions, with half advocating for an increase to 140,000 PLN, citing the need to ease the tax burden on the middle class. However, opponents argue that the state's high budget deficit makes reducing tax revenue unfeasible. Two draft laws proposing changes to the second tax bracket have been submitted to the Sejm.

On the trade front, the European Union and China are initiating negotiations concerning new restrictions on steel imports into the EU. Beijing has cautioned that further limitations could adversely affect bilateral trade relations. Concurrently, EU Industry Commissioner Stephane Sejourne announced plans for additional tariffs on Chinese goods, asserting that certain European industries face threats from unfair competition. These escalating trade tensions risk igniting another round of tariff disputes, impacting sectors such as steel, automotive, and new technologies.