This Financial Times news briefing covers three major international developments. Mark Filippino hosts, with contributions from Washington bureau chief James Politi and Australia correspondent Nick Fieldes.

The episode examines proposed EU diplomatic reforms driven by coordination challenges, US-Iran tensions amid rising inflation pressure, and Australia's controversial housing affordability measures targeting decades-old tax incentives.

EU Considers Diplomatic Service Overhaul Amid Global Challenges

France and Germany are discussing taking powers away from EU chief diplomat Kyriakalas and her agency, giving the European Commission and member states more control over bloc diplomacy.

The EU has faced diplomatic challenges from Ukraine and Iran conflicts to Trump's trade war, with officials citing 'too much overlap plus a lack of coordination' between agencies.

Inflation Pressure Drives Trump's Iran Deal Urgency

US inflation jumped to 4.2% last month, creating 'a huge political problem for President Trump and every Republican' ahead of November midterm elections - James Politi.

Trump warned Iran will 'pay the price for taking too long to negotiate' as recent military strikes raise questions about ceasefire strength.

The situation remains in 'limbo of what I would call, and many others have called, a dirty ceasefire' with frequent violations and no Strait of Hormuz breakthrough - James Politi.

Australia's Housing Crisis Sparks Radical Tax Reform

Australia ranks just behind Hong Kong for housing expense, with Sydney professionals 'into their mid to late 30s' still in share houses due to unaffordable competition.

The Albanese government is reversing 1999 tax incentives, abolishing negative gearing for existing properties while maintaining it for new development.

Housing markets have 'effectively ground to a standstill' with forecasts predicting a 10% correction - potentially the worst in 40 years.

New Zealand's experience under Jacinda Ardern shows risks: they abolished negative gearing but reversed it due to rental market spikes.