Donald Trump

Trump says he will suspend petrol tax amid soaring US fuel prices | Energy News

Senator Hawley plans legislative action supporting President Trump’s bid to waive the petrol tax amid rising consumer costs.

United States President Donald Trump said he will cut the 18-cent federal tax on petrol to offset surging prices that have continued to soar after his comments that the US ceasefire with Iran is on “life support”.

On Monday, Trump said he would suspend the petrol tax, but did not specify an end date.

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“Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in,” Trump told CBS News.

Trump later told reporters that he would waive the tax, which generates $2.5bn in funds used for US roadway infrastructure, “till it’s appropriate”.

The US administration hinted at the idea on Sunday, when US Energy Secretary Chris Wright told the NBC News programme Meet the Press that the White House was considering suspending the tax.

While the Republican president claimed he would waive the tax, that is not within the White House’s authority. Suspending a federal tax requires an act of the US Congress.

However, key Trump ally Senator Josh Hawley, a Republican from Missouri, said on the social media platform X that he would introduce legislation on Monday to do that.

In March, Senator Mark Kelly, a Democrat from Arizona, proposed suspending the tax until October.

“I anticipate it would pass, but there could be a procedural delay. It also suggests that President Trump doesn’t see a quick end to the reduced volumes and is trying to cushion the American consumer,” Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, told Al Jazeera.

“The impact could be greater in states that have also reduced their own petrol taxes and could reinforce differentiation between petrol prices by region.”

US states also tax petrol, with Indiana, Kentucky and Georgia moving to make cuts to give consumers some relief at the pump.

Petrol prices have continued to climb since the initial strikes of the US-Israel war on Iran on February 28. The average price for a gallon (3.78 litres) of regular petrol is $4.52, according to the American Automobile Association, which tracks daily petrol prices, compared with $2.98 when the strikes first began.

However, news of the stumbling ceasefire has sent oil prices surging. Brent crude futures were up $3.17, or 3.13 percent, at $104.46 a barrel, while US West Texas Intermediate crude was at $98.32 a barrel, up $2.90, or 3.04 percent. Brent reached a session high of $105.99 and WTI hit a peak of $100.37.

On Wall Street, stocks for oil and gas giants are trending upward. Shell was up 1.6 percent in midday trading, Exxon rose 3.1 percent, BP gained 2 percent, and Chevron climbed 1.7 percent.

Airline bailout?

Trump was also asked by CBS on Monday whether a bailout was planned for the airline industry, which has taken a hit since the war on Iran began.

The president told the outlet that a bailout had not “really been presented” and that “the airlines are doing not badly”.

However, earlier this month, budget carrier Spirit Airlines ceased operations after 34 years. Court documents said the airline shut down because of “recent geopolitical events resulting in a massive and sustained increase in fuel prices”.

That comes as other major US carriers raise prices. In April, United Airlines said it would raise fares by 20 percent amid a surge in jet fuel costs.

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Nonprofit sues Trump over Lincoln Memorial Reflecting Pool renovation

May 11 (UPI) — A nonprofit organization filed a lawsuit against the Trump administration Monday over renovating the Lincoln Memorial Reflecting Pool.

The lawsuit, filed by the Cultural Landscape Foundation and founder Charles Birnbaum, argues that the National Mall renovation violates environmental and preservation laws without proper authority by changing the “historic character” of the reflecting pool.

“The dark grey, achromatic basin was not incidental to the design,” the lawsuit reads. “It was the design.”

The lawsuit seeks a preliminary injunction to block the renovation from moving forward.

The National Historic Preservation Act, the main law cited in the lawsuit, requires a review process before changing historic properties like the reflecting pool.

The Trump administration plans to add a coat of “American flag blue” paint to the base of the reflecting pool.

“The [Interior] Department is proud of the work being carried out by our Park Service to ensure this magical spot can be enjoyed for not only our 250th, but for many generations to come,” the Interior Department said in a statement.

The Cultural Landscape Foundation called the project and other renovations led by President Donald Trump, such as the demolition of the East Wing of the White House to build a ballroom, a “desecration.”

“A blue-tinted basin is more appropriate to a resort or theme park,” Birnbaum said in a statement.

Trump announced the project last month with an estimate for it to be completed by July 4.

President Donald Trump delivers remarks at an event he is hosting for a group that includes Gold Star Mothers and Angel Mothers in honor of Mother’s Day in the Rose Garden of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo

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45 million Americans expected to travel for Memorial Day weekend

May 11 (UPI) — AAA estimates that 45 million Americans will be traveling at least 50 miles from home over Memorial Day weekend, a slight uptick over last year.

AAA reported its estimate on Monday, forecasting an uptick in travel between Thursday, May 21 and Monday, May 25. Last year about 44.8 million people traveled for Memorial Day weekend.

About 39.1 million people are estimated to be hitting the road while another 3.66 million will fly and 2.22 million will take other forms of travel.

“Memorial Day marks the unofficial start of summer, and for most Americans, it’s a three-day weekend,” Stacey Barber, AAA vice president, said in a statement. “Travel demand remains strong, and despite higher fuel prices, many people are prioritizing leisure travel during holiday breaks.”

AAA said last year the average gallon of regular gasoline cost $3.17 on Memorial Day.

Fuel prices remain high across the United States as the war in Iran drags on. The average cost of a gallon of regular gasoline in the United States is $4.52. That is up from $4.45 last week, $4.13 last month and $3.13 a year ago.

Oil prices climbed again on Monday, following President Donald Trump‘s statement that Iran’s response to the United States’ latest peace proposal was “totally unacceptable.”

Brent crude oil increased by 4% to $105.50 per barrel and West Texas Intermediate rose 4.4% to $99.80.

President Donald Trump delivers remarks at an event he is hosting for a group that includes Gold Star Mothers and Angel Mothers in honor of Mother’s Day in the Rose Garden of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo

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Trump to discuss Iran with Xi Jinping during China visit: Officials | Donald Trump News

Official says US president will likely ‘apply pressure’ on China over Beijing’s purchase of Iranian oil amid war.

Donald Trump is set to arrive in Beijing on Wednesday evening to discuss the Iran war and other issues with his Chinese counterpart President Xi Jinping.

White House Principal Deputy Press Secretary Anna Kelly said an opening ceremony and meeting will be on Thursday morning, and the trip will conclude on Friday. The US plans to host the Chinese leader during a reciprocal visit later this year.

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Kelly said that this week’s trip would be of “tremendous symbolic significance” and focus on “rebalancing the relationship with China and prioritising reciprocity and fairness to restore American economic independence”.

Trump’s visit, initially scheduled for earlier this year but postponed in March due to the US-Israel war on Iran, comes as the US president struggles to contain the fallout from the war, both at home and abroad.

A senior administration official told news outlets in an anonymous briefing on Sunday that Trump could “apply pressure” to China on Iran in areas such as oil sales and Tehran’s purchase of potential dual-role military-civilian goods.

US Treasury Secretary Scott Bessent last week accused China of “funding” Iran.

“Iran is the largest state sponsor of terrorism, and China has been buying 90 percent of their energy, so they are funding the largest state sponsor of terrorism,” Bessent told Fox News.

Iran closed the Strait of Hormuz in response to US-Israeli attacks, restricting passage through a key artery of global energy transport.

China has said that it wants to see the war end and hosted Iranian Foreign Minister Abbas Arraghchi last week. At the same time, Beijing has refused to recognise Washington’s “unilateral” sanctions on Iran’s oil sector.

Disruptions stemming from the war have disrupted the global economy, with Asian states that depend on imports from the Middle East especially hard hit.

Trump could also bring up China’s support for Russia during the talks, along with trade and rare earth minerals, a vital resource for the US tech sector. Business executives from aerospace manufacturer Boeing and a handful of agricultural companies are set to travel with the US delegation.

The anonymous administration official said that no change was expected regarding the US stance on Taiwan, a main sticking point in relations between Washington and Beijing. China considers the self-ruling island a part of its territory, but the US has deep security and economic commitments to Taiwan.

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Trump says US will not allow Iran to reach enriched uranium | US-Israel war on Iran News

President Donald Trump has warned that the United States will target any Iranian trying to reach the country’s highly enriched uranium, saying that the nuclear material is under constant surveillance by the US military.

In an interview with the syndicated TV show Full Measure that aired on Sunday, Trump appeared to play down the significance of the uranium, which is believed to be buried under the rubble of nuclear facilities, remaining in Iran for now.

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“We’ll get that at some point, whenever we want. We have it surveilled,” Trump said.

“I did a thing called Space Force, and they are watching. If somebody walked in, they can tell you his name, his address, the number of his badge … If anybody got near the place, we will know about it, and we’ll blow them up.”

Iran’s highly enriched uranium is one of the major sticking points between Washington and Tehran in ceasefire negotiations to end the 10-week US-Israel war on Iran.

The US wants Iran to transfer the uranium outside the country and completely shut down its nuclear programme, but Tehran has stressed that it will not give up its right to a domestic enrichment programme.

Several international media reports have said that the uranium remains under nuclear sites that the US bombed in June 2025, but Tehran has not confirmed the location of the nuclear material.

Last month, Trump announced that Iran had agreed to allow Washington to retrieve the uranium and bring it to the US – claims that Tehran quickly dismissed.

Trump told Reuters on April 17 that the US would work with Iran “at a nice leisurely pace, and go down and start excavating with big machinery” to retrieve the uranium stockpile at the sites.

“We’ll bring ⁠it back to the United States,” he added.

Iran’s Foreign Ministry spokesperson Esmaeil Baghaei denied Trump’s claim. “Enriched uranium is as sacred to us as Iranian soil and will not be transferred anywhere under any circumstances,” he said.

Iran is estimated to have more than 400kg (882lb) of uranium enriched at 60 percent purity.

Uranium enrichment is a complex process of isolating and garnering the most radioactive variety – isotope – of the element to produce nuclear fuel.

When enriched to around 90 percent purity, uranium can be used to make nuclear weapons.

In 2015, Iran agreed to a multilateral deal that saw Tehran scale back its nuclear programme and cap its uranium enrichment at 3.67 percent under strict international supervision in exchange for lifting sanctions against its economy.

Trump nixed that agreement – known as the Joint Comprehensive Plan of Action (JCPOA) – and started reimposing sanctions on Iran.

In response, Tehran – which denies seeking a nuclear weapon – began to advance its enrichment programme well beyond the limits set by the JCPOA.

Trump has argued that the ongoing conflict with Iran aims to prevent the country from acquiring a nuclear bomb.

Asked about the rising oil prices due to the war, Trump said: “We cannot let Iran have a nuclear weapon because they’re crazy.”

The average price of one gallon (3.8 litres) of petrol or gasoline in the US has risen to more than $4.50 due to supply issues linked to the Iranian blockade in the Strait of Hormuz, fuelling inflation. It was less than $3 before the war.

Despite the truce that came into effect last month, skirmishes have erupted in the Gulf over the past week as the US continues to enforce a siege on Iranian ports amid Tehran’s Hormuz blockade.

Iranian state-affiliated news outlets reported on Sunday that Iran has delivered its response to the latest US proposal to end the war to Pakistan, which is mediating the talks.

But Trump said the war is not over while reiterating his claim that Iran has been “defeated”.

“They are defeated, but that doesn’t mean they’re done,” the US president said. “We could go in for two more weeks and do every single target. We have certain targets that we wanted, and we’ve done probably 70 percent of them, but we have other targets that we could conceivably hit.”

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Iran responds to U.S. peace proposal, state media says

May 10 (UPI) — Iran has communicated its response Sunday through a mediator to a proposal by the United States to end the war, its state media reports.

The Islamic Republic News Agency reported Sunday that Iran’s response has been sent through Pakistan, which has mediated talks between Iran and the United States. IRNA did not share details about what the response was.

“According to the proposed plan, negotiations at this stage will focus on the issue of ending the war in the region,” IRNA said.

The war has centered on the blockade of the Strait of Hormuz, with U.S. and Iranian forces continuing to exchange fire in the Persian Gulf region as recently as Saturday.

“We will never bow our heads before the enemy, and if talk of dialogue or negotiation arises, it does not mean surrender or retreat,” Iranian president Masoud Pezeshkian posted on social media Sunday. “Rather, the goal is to uphold the rights of the Iranian nation and to defend national interests with resolute strength.”

Mike Waltz, U.S. ambassador to the United Nations, said on Fox News on Sunday that he expects President Donald Trump to remain firm that Iran must abandon its nuclear program.

“We’ll see what the Iranians just came back with overnight in terms of their response to our very clear red line,” Waltz said.

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After Italy visit, Rubio says he can’t stop Trump’s jabs at pope

Italy’s Prime Minister Giorgia Meloni meets Secretary of State Marco Rubio at Palazzo Chigi, in Rome, Thursday. Rubio was in the Italian capital for high-level meetings with Italian and Vatican officials. Photo Guiseppe Lami/EPA

May 8 (UPI) — Secretary of State Marco Rubio highlighted his support for NATO, the pope and Italy on Friday during his visit to the country, but said President Donald Trump may still continue social media attacks.

“The president will always speak clearly about how he feels about the U.S. and U.S. policy,” Rubio said after being asked by reporters in Rome if he would ask Trump to limit his verbal attacks. He said, “the president of the United States is always going to act on what’s in the best interest of the United States.”

He added that Trump’s decision to remove troops from Germany was already in the works.

“There was always a plan to do some shifting within NATO,” Rubio said. He added that the troops that are being removed from Germany “represent less than 14% of our total troop presence there.”

Rubio, who visited Pope Leo XIV with his wife and several State Department employees Thursday, gifted the pope a crystal football with the State Department’s logo on it, while the pope gave Rubio a pen made from an olive branch.

Italian Prime Minister Giorgia Meloni gave Rubio documentation of his family’s Italian origins in Piedmont, in the country’s northwest.

Rubio said it was a “true honor” to get the documentation. He said visiting Piedmont is “one more reason to be back” in Italy. He’ll give a speech in Italian next time he visits, he said.

“I need to learn a third language,” Rubio said.

Meloni and Trump had been cordial until the president began attacking the pope and Italy stayed out of the war in Iran.

Meloni said the meeting was a “frank dialogue, between allies who defend their own national interests but who both know how precious Western unity is.”

Polls in Italy show that most Italians are against joining the war against Iran. Meloni said, “we are not at war, and we do not want to go to war.”

President Donald Trump delivers remarks at an event he is hosting for a group that includes Gold Star Mothers and Angel Mothers in honor of Mother’s Day in the Rose Garden of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo

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Russia, Ukraine confirm three-day cease-fire, prisoner swaps after Trump conversations

May 8 (UPI) — Russia and Ukraine on Friday confirmed a three-day cease-fire and prisoner swap, which they said was agreed to after their leaders spoke with U.S. President Donald Trump.

Trump announced in a post on Truth Social that the countries agreed to pause the conflict Saturday through Monday, and for both country to swap 1,000 prisoners each that have been captured during the four-year war.

Ukrainian President Volodymyr Zelensky confirmed the agreement in a post on X, and said that he has instructed his team to “promptly prepare everything necessary for the exchange.”

Russian presidential aide Yuri Ushakov also confirmed the deal, saying that Russian President Vladimir Putin found it acceptable and that Russia “welcomes” it, Turkey’s state-run Anadolu Agency reported.

The deal comes less than a day before Russia celebrates Victory Day, its annual commemoration of the allied powers victory over Nazi Germany in World War II.

“This request was made directly by me, and I very much appreciate its agreement by President Vladimir Putin and President Volodymir Zelenskyy,” Trump said in the post, referring to calls he placed to both leaders and which they confirmed.

“Hopefully, [the cease-fire] is the beginning of the end of a very long, deadly, hard fought War,” Trump said. “Talks are continuing on ending this Major Conflict, the biggest since World War II, and we are getting closer and closer every day.”

The cease-fire in the biggest land war in Europe since World War II will include “a suspension of all kinetic activity,” as well as countries returning 1,000 prisoners each to one another.

Zelensky said there had been appeals and signals about a potential cease-fire to start on Saturday because of Victory Day, which motivated it to negotiate the pause and pursue the return of Ukrainians held during the war.

“An additional argument for Ukraine in determining our position has always been the resolution of one of the key humanitarian issues of this war — namely, the release of prisoners of war,” he said. “Red Square is less important to us than the lives of Ukrainian prisoners who can be brought home.”

Ushakov said that Trump, during the call with Putin, emphasized that Russia and the United States were allies during World War II, pointing to Victory Day as a potential date to start a cease-fire.

“An agreement on this matter was reached during our telephone contacts with the U.S. administration,” Ushakov said. “In turn, U.S. representatives were in contact with Kyiv.”

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DOGE cuts to National Endowment for the Humanities were illegal, judge says

May 8 (UPI) — The Department of Government Efficiency illegally canceled roughly $100 million in grants that Congress had approved the National Endowment for the Humanities to award, a judge ruled.

U.S. District Court Judge Colleen McMahon said Thursday in a 143-page decision that DOGE and the Trump administration had “no constitutional authority to block, amend, subvert or delay spending appropriations based on the president’s own policy preferences,” CBS News and The Washington Post reported.

DOGE used ChatGPT to revoke grants the NEH had already awarded that it thought were related to diversity, equity and inclusion programs the administration sought to rapidly eliminate throughout the federal government in 2025.

The NEH was one of 16 “small agencies” that President Donald Trump last May marked for elimination in his 2026 budget proposal, which the DOGE effort, as spearheaded by Elon Musk, had already started culling expenditures from.

“The termination of NEH grants challenged in this action was unlawful because it was undertaken in violation of the First Amendment, in violation of the equal protection component of the Fifth Amendment and without statutory authority,” McMahon wrote in the decision.

The lawsuit was brought by the American Council of Learned Societies, the American Historical Association and the Modern Language Association of America after DOGE cut more than 1,400 grants that had been awarded to scholars, research institutions and humanities organizations.

McMahon said that because Congress had not given DOGE the authority to “identify, select or direct the termination of the grants,” she permanently enjoined the government from terminating all of the grants referenced in the lawsuit, as well as from cutting any others using the arguments rejected in the ruling.

Representatives of the three organizations hailed the ruling and said they would continue to push for the full restoration of all the NEH grants, which includes “staff, programs and capacity to serve the public it was created to support.”

“This ruling is an important achievement in our effort to restore the NEH’s ability to fulfill the vital mission with which Congress charged it,” Sarah Weicksel, executive director of the American Historical Association, said in a press release.

“From history exhibitions and path breaking scholarship to library programs and professional development opportunities, the humanities help us understand our past and ourselves, providing all of us with the essential tools for our future,” she said.

President Donald Trump delivers remarks at an event he is hosting for a group that includes Gold Star Mothers and Angel Mothers in honor of Mother’s Day in the Rose Garden of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo

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Peter Serafinowicz makes cameo as ‘prime minister’ Nigel Farage in SNL UK skit

Saturday Night Live UK’s cold open featured Peter Serafinowicz in a guest cameo as Nigel Farage, spoofing the Reform UK leader as Prime Minister in 2046 following the party’s sweeping local election wins.

Shaun Of The Dead actor Peter Serafinowicz made a surprise appearance playing Reform UK leader Nigel Farage as prime minister in an SNL UK sketch set in the year 2046.

The comedy programme kicked off on Saturday evening with a political skit depicting Mr Farage occupying Number 10, pulling pints at his desk while US President Donald Trump has seized control as the nation’s king.

The sketch took aim at the party’s landslide victories during this week’s local council and Scottish and Welsh elections. It began with ‘Mr Farage’ recording a personalised 120th birthday message for much-loved naturalist Sir David Attenborough, before Conservative party leader Kemi Badenoch (Ayoade Bamgboye) appeared as his deputy.

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“Big news day, Prime Minister. Thanks to our deportations, the population of London is finally down to single fingers,” she said, drawing uproarious laughter from Mr Farage.

Taking a swipe at the continuing tensions between the US and Iran, she went on: “One last thing, King Trump assures us he has almost negotiated a ceasefire over the Strait of Hormuz.”

Mr Farage responds: “Phew, for a minute there, it felt like we were on the brink of World War Four.”

The pair jest that since their parties joined forces, they have been “unstoppable”, drawing a comparison to the spreading hantavirus, referencing the outbreak that has dominated news coverage in recent days. After checking the weather forecast – which shows London engulfed in flames, satirising climate change – the pair head out for a stroll before Sir Keir Starmer and Angela Rayner emerge from behind a bookshelf, which turns out to be a time machine.

The former deputy leader, portrayed by Celeste Dring, warns Sir Keir (George Fouracres) that unless he allows her to run the government, “this future will come to pass”, to which he replies he will “seize every moment” as Prime Minister.

When Mr Farage returns to the office accompanied by Mrs Badenoch, he queries who Sir Keir is, declaring himself the “big chungus” of the “great United Kingdom and the middle part of Wales”.

They warn they’ll have the Labour party leaders removed from the building by security guards, but Mrs Badenoch jokes: “We deported security.”

The sketch concluded with Al Nash emerging through the prime ministerial time machine portal dressed as Sir Winston Churchill to launch the show, leading into Ted Lasso star Hannah Waddingham’s opening monologue.

The award-winning actress made light of the “glamorous characters” she has portrayed throughout her career, before displaying pictures of less flattering parts such as her “sexy little turn as the shame nun” in hit TV series Game Of Thrones.

Throughout the episode, Waddingham took part in numerous sketches alongside the show’s inaugural cast, and was accompanied by Stargazing singer Myles Smith as the musical guest. The programme also marked Sir David’s landmark 100th birthday in its weekend news segment, with hosts Ania Magliano and Paddy Young sitting down to interview a rhino (Hammed Animashaun) for their take on the much-loved broadcaster.

The skit descended into mayhem when Sir David (Fouracres) burst onto the scene to grapple with the wild beast after it dared to criticise him.

The Sky Original production is filmed live in London, featuring a rotating guest host each week alongside the show’s regular cast, which comprises actor Hammed Animashaun and comedian Ania Magliano.

SNL UK returns to Sky and Now TV on May 16 for its series finale, with Sex Education star Ncuti Gatwa taking the hosting duties, accompanied by musical guest Holly Humberstone.

Saturday Night Live UK is available to watch on Sky and Now TV on Saturdays at 10pm.

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Trump may fire FDA chief Marty Makary, reports say

May 8 (UPI) — President Donald Trump intends to fire Food and Drug Administration Commissioner Marty Makary because he is frustrated with the agency.

Trump signed off on the decision to replace Makary as he has clashed with Trump, officials in the Department of Health and Human Services and other officials in the administration, multiple reports said on Friday.

The reports — from NBC News, The New York Times, The Wall Street Journal and The Washington Post — all were attributed to Trump administration sources who requested anonymity because they were not authorized to comment on the issue.

Makary, a former surgeon at Johns Hopkins, was confirmed to run the FDA in March 2025 on a vote the included two Democratic members of the Senate voting yes.

His nomination carried some controversy because, like several other Trump cabinet members and nominees, is a former Fox News contributor who preferred that society develop natural immunity to the virus that causes COVID-19 instead of the CDC’s preferred method of using vaccine-induced immunity during the pandemic.

The reports suggest that Makary has struggled to run the FDA as long-time staff have left the agency and a range of healthcare, pharmaceutical and advocacy groups have been highly critical of its actions.

The Department of Health and Human Services and Makary have not commented on the reports, and sources for all four news organizations noted that the plan could change if Trump changes his mind.

President Donald Trump delivers remarks at an event he is hosting for a group that includes Gold Star Mothers and Angel Mothers in honor of Mother’s Day in the Rose Garden of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo

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Trump honors mothers at Rose Garden Mother’s Day lunch

1 of 5 | President Donald Trump delivers remarks at an event for Gold Star Mothers and Angel Mothers to honor Mother’s Day, which is this Sunday, in the Rose Garden of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo

May 8 (UPI) — President Donald Trump on Friday delivered a Mother’s Day address as he hosted Gold Star Mothers and Angel Mothers in the White House Rose Garden.

Starting with his own mother, Trump thanked mothers across the country in a 20-minute speech that included specific thanks for mothers in the audience and those who work for his administration.

“I want to thank every single mother here this afternoon and all across our nation for your work,” Trump said.

“Every single day, America’s moms are raising — really — raising the future of our country … You have the most important job there is in America or any place else, and you’re doing an incredible job,” he said.

During the speech, Trump honored the mothers of children who died in crimes linked to illegal immigrants, whom he has dubbed Angel Mothers, noting that he hoped to prevent their ranks from growing due to “open borders” and what his administration has in pursuit of that goal.

The president honored Gold Star Mothers — the mothers of members of the military who have been killed in action — some of whom in attendance lost children during the war in Afghanistan.

Questioning whether “time heals all wounds,” Trump said that “our hearts are out to you on Mother’s Day.”

He also spoke about legislative and executive actions his administration has meant to benefit mothers and families.

“We’re honored to be joined by many strong and truly heroic moms who have stood up for their children,” he said, wishing them a Mother’s Day “filled with love and gratitude and joy.”

President Donald Trump delivers remarks at an event he is hosting for a group that includes Gold Star Mothers and Angel Mothers in honor of Mother’s Day in the Rose Garden of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo

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Trump threatens ‘much higher’ EU tariffs if deal not signed by July 4

May 8 (UPI) — President Donald Trump threatened to raise tariffs to “much higher levels” on the European Union if it doesn’t agree to a trade deal by July 4.

“I had a great call with The President of the European Commission, Ursula von der Leyen. We discussed many topics, including that we are completely united that Iran can never have a Nuclear Weapon. We agreed that a regime that kills its own people cannot control a bomb that can kill millions. I’ve been waiting patiently for the EU to fulfill their side of the Historic Trade Deal we agreed in Turnberry, Scotland, the largest Trade Deal, ever! A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO! I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels,” the president said Thursday afternoon on Truth Social.

The threat came after The EU has struggled to agree on the terms of the Turnberry Accord, which was for the United States to lower tariffs on EU products and for the EU to remove tariffs on U.S. industrial goods and invest billions in U.S. industries, including energy.

Von Der Leyen said on X that the bloc is still committed to the deal.

“I had a very good call with @POTUS. We discussed the situation in the Middle East and our close coordination with regional partners. We are united that Iran must never possess a nuclear weapon. Recent events have clearly shown that the risks to regional stability and global security are too great.

“We also discussed the EU-U.S. trade deal. We remain fully committed, on both sides, to its implementation. Good progress is being made towards tariff reduction by early July.”

Last week, Trump threatened to raise tariffs on European autos to 25%. It’s unclear if his renewed threat is specifically for vehicles or if it encompasses all EU exports.

Complicating matters is that Trump’s current method of levying tariffs was blocked Thursday by the U.S. Court of International Trade.

In February, the U.S. Supreme Court struck down the administration’s tariffs issued under the International Emergency Economic Powers Act of 1977. Trump then added a 10% across-the-board tariff and then later upped it to 15%.

U.S. Trade Representative Jamieson Greer said in an interview with Politico Thursday that the EU is moving slowly.

“With the tariffs, they’ve at least started a process. They’re working it through,” Greer said. “It’s a pain. I understand it’s slow. We’re not patient. But there are other things where they haven’t even started a process.”

“We’re 95% compliant for nine months … and they’ve been 0% compliant during that time. What am I supposed to do?” he said.

Speaker of the House Mike Johnson, R-La.,, speaks during an observance celebrating the 75th National Day of Prayer in Statuary Hall at the U.S. Capitol on Thursday. Photo by Bonnie Cash/UPI | License Photo

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Trump’s FEMA review council recommends widespread changes

May 7 (UPI) — A group appointed by President Donald Trump made its final recommendations Thursday on changes to the Federal Emergency Management Agency, suggesting moves that would put more responsibility back on states and other authorities.

The changes also include reviews of agency staffing and privatizing flood insurance, The Hill reported.

“We need to refocus FEMA to get it back on what its mission originally was,” Homeland Security Secretary Markwayne Mullin said. FEMA is part of Homeland Security.

Panel members said FEMA has become too involved in politics, specifically mentioning state assistance during the coronavirus epidemic, The New York Times reported. Recommendations included changes in how FEMA helps state and local governments with financial recovery.

“Disaster response is complicated and increasingly expensive,” the final report said. “With taxpayers bearing the burden of funding emergency management in the United States, it is the responsibility of every American to embrace their individual responsibility to lessen this burden by being prepared for disasters. … As our nation returns ownership of emergency management back to local communities and their states, tribes and territories, we encourage every American to review their insurance policies and personal disaster plans as well as engaging with their local community leaders to be better prepared when disaster strikes.”

Trump has said that FEMA’s work is too expensive and that state governors should be able to manage more on their own, the Times reported. He has also suggested in the past that the agency should “go away” entirely.

The changes recommended by the report would require congressional approval. They include tweaks meant to make the reimbursement process, once approved, quicker and more direct, and changes meaning the FEMA plays less of a role in helping disaster survivors find housing.

“These recommendations are all about accelerating federal dollars, streamlining the process, making it less bureaucratic, so that Americans can get the help they need on the worst day of their lives,” said former Virginia Gov. Glenn Youngkin, a member of the council. “And this is not a moment for bureaucracy, it is a moment for action, it is a moment for clarity.”

The Environmental Defense Fund said in a statement that Americans are facing increasingly severe weather and the council’s recommendations “don’t meet this reality.”

“The proposed changes would leave communities without the necessary funding, information and access to insurance to stay prepared and safe when disasters strike,” said Will McDow, the fund’s associate vice president for coasts and watersheds.

The group said the proposed changes would “shift enormous burdens onto states and communities and reduce government efficiency.”

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U.S. Secretary of State Rubio, Pope Leo XIV meet at the Vatican

1 of 3 | Pope Leo XIV (L) talks with Secretary of State Marco Rubio during a private audience in Vatican City on Thursday. Photo courtesy Vatican Media/EPA

May 7 (UPI) — U.S. Secretary of State Marco Rubio met Thursday with Pope Leo XIV at the Vatican, a moment of diplomacy in the wake of President Donald Trump‘s repeated attacks on the Catholic leader.

Rubio and the pope talked about “the situation in the Middle East and topics of mutual interest in the Western Hemisphere,” State Department spokesman Tommy Pigott said, The Washington Post reported.

“The meeting underscored the strong relationship between the United States and the Holy See and their shared commitment to promoting peace and human dignity,” Pigott said.

The meeting, which was a little more than 2 hours long, was not open to the press. There has been tension between the White House and the Vatican in recent months, with Trump directing insults at the pope and the pontiff (who is the first U.S.-born pope) criticizing the United States’ actions in the Middle East.

Rubio also met with Vatican Secretary of State Cardinal Pietro Parolin. Pigott said Rubio and Parolin talked about “mutual cooperation and pressing international issues” and efforts “to achieve a durable peace inthe Middle East,” CBS News reported.

The meeting comes after Trump said in an interview Monday that the pope’s views on the U.S. attacks on Iran “are endangering Catholics and a lot of people” and that the Catholic leader “thinks its just fine for Iran to have a nuclear weapon.” In recent months, the president has also criticized Pope Leo on social media, saying the pontiff is “WEAK on crime” and “terrible for Foreign Policy.”

For his part, Pope Leo has said that he “has no fear of the Trump administration.”

“Should anyone want to criticize me for proclaiming the Gospel, they should do so with the truth,” the pope said in response to Trump’s comments Monday. “For years the Church has spoken out about all nuclear weapons, so there’s no doubt about it, there. So I simply hope to be listened to for the value of God’s word.”

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Former Florida Congressman Convicted Over Undisclosed Venezuela Lobbying

Rivera could face a lengthy prison sentence. (Reuters)

Mérida, May 7, 2026 (venezuelanalysis.com) – A federal jury in Miami found former US Congressman David Rivera guilty on charges related to an undisclosed lobbying campaign on behalf of the Venezuelan government of Nicolás Maduro.

The guilty verdict was issued on Friday, May 1. Rivera was convicted of acting as an unregistered agent of a foreign government, conspiracy to commit money laundering, and tax evasion. The final decision concluded a six-week trial that featured testimony from Secretary of State Marco Rubio, a former roommate and close friend of the defendant.

Rivera, a Republican who represented Florida’s 25th district in the US House of Representatives from 2011 to 2013, was accused by the Justice Department of securing a $50 million contract to secretly lobby senior US officials to improve relations and ease sanctions on Caracas during the first Trump administration.

The indictment, unsealed in 2022, alleged that the former congressman and an associate, political consultant Esther Nuhfer, manipulated political connections to advance the interests of the Maduro government at a time when Washington was ramping up regime-change efforts against the Caribbean nation.

“The ultimate goal of these efforts was to garner political support in the United States for a normalization of relations,” prosecutors argued, detailing how Rivera allegedly tried to arrange meetings for then-Foreign Minister Delcy Rodríguez, now Venezuela’s acting president, with White House officials and members of Congress.

The conviction rested on a series of meetings and communications in 2017. The lobbying efforts proved unsuccessful as the Trump administration introduced its “maximum pressure” sanctions campaign beginning in August 2017.

One of the main highlights of the trial was the testimony of Secretary of State Marco Rubio. In an unusual move for a sitting cabinet member, Rubio took the stand in a Miami federal courthouse on March 24 to detail his interactions with Rivera.

According to reports, Rubio testified that Rivera approached him in July 2017 with an urgent plan. Rivera claimed to be working with Venezuelan media magnate Raúl Gorrín on an alleged scheme to convince Maduro to voluntarily resign and step down as president in exchange for guarantees for himself and his inner circle.

“He provided me with insight into some of the key phrases that regime insiders would have wanted to hear to know this was serious,” Rubio told the jury, referencing talking points he later used in a Senate floor speech about non-retribution. “No vengeance, no retribution.”

However, Rubio, who was serving as a Florida Senator at the time, insisted he was unaware that Rivera had been hired by the Maduro government to lobby. He claimed to have been “skeptical” of the plan, which he eventually labeled a “total waste of my time” after Gorrín failed to produce a promised letter from Maduro to Trump. Had he known Rivera was working directly for Caracas, Rubio stated, he never would have agreed to deliver a rare televised address to Venezuela on Gorrín’s Globovisión network.

The back-channel talks reportedly collapsed as the Trump administration escalated unilateral coercive measures and regime-change efforts.

Rivera’s defense team, led by attorney Ed Shohat, claimed that their client had not acted as a foreign agent but rather as a “promoter of democracy.” They contended the contract focused on commercial work, specifically luring Exxon Mobil back to Venezuela, which they argued is generally exempt from the Foreign Agents Registration Act (FARA).

Furthermore, Rivera latched onto Rubio’s testimony to argue that his actions were aimed at ousting Maduro. “Marco Rubio made it abundantly clear today that everything we worked on together in 2017 was meant to remove Maduro from power in Venezuela,” Rivera said in a statement following Rubio’s testimony.

The former congressman was taken into custody immediately after the verdict and faces a potentially lengthy prison sentence. He also faces additional federal charges in Washington, D.C., related to a separate foreign lobbying case.

Rivera’s trial came amid a fast-tracked rapprochement between Washington and Caracas. Diplomatic relations, which had been severed in 2019 after Trump recognized self-proclaimed “Interim President” Juan Guaidó as Venezuela’s legitimate leader, were reestablished in March.

The White House also recognized Rodríguez as Venezuela’s “sole leader” and lifted personal sanctions against her. Rodríguez took over the Venezuelan presidency after US special forces kidnapped Maduro on January 3.

The Trump administration has also seized control over the South American country’s oil revenues and has sought to force the return of Western corporations into Venezuela’s energy and mining sectors under privileged conditions.

Venezuelan authorities have not commented on Rivera’s trial and conviction. A government social media account labeled a report from investigative portal La Tabla on the alleged Maduro resignation plan as “fake,” but officials offered no further explanations.

Edited by Ricardo Vaz in Caracas.

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Mexico’s Sheinbaum rejects Trump’s criticism about drug cartels

Mexican President Claudia Sheinbaum, in her morning press conference Thursday, rejected criticism from the President Donald Trump over her government’s anti-drug efforts after Trump suggested the United States could take unilateral action against drug cartels operating in Mexican territory. Photo by Isaac Esquivel/EPA

May 7 (UPI) — Mexican President Claudia Sheinbaum rejected criticism from the U.S. President Donald Trump over her government’s anti-drug efforts after Trump suggested the United States could take unilateral action against drug cartels operating in Mexican territory.

“President Trump has said this several times before, but we are acting,” Sheinbaum said Thursday during her daily morning press conference.

During a White House event Wednesday, Trump said his administration already had reduced maritime drug trafficking by 97% and would now begin a “land phase” against drug smuggling operations.

“If they are not going to do the job, we will,” Trump said.

Sheinbaum defended her administration’s security strategy and said Mexico has achieved a nearly 50% reduction in homicides, dismantled 2,500 clandestine laboratories used to manufacture synthetic drugs and reduced fentanyl trafficking from Mexico into the United States.

The Mexican president also urged Washington to recognize the severity of the U.S. drug consumption crisis and strengthen efforts to stop the illegal flow of firearms into Mexico.

She said the trafficking of weapons strengthens the operational capacity of criminal organizations and fuels violence across several regions of the country.

During the press conference, Sheinbaum said the 2026 U.S. National Drug Control Strategy, presented Tuesday, marked the first time the Trump administration formally acknowledged the seriousness of domestic drug consumption in the United States.

According to Sheinbaum, the report recognizes that the United States faces “a serious drug consumption problem” by proposing prevention measures, public awareness campaigns and public health programs to combat addiction.

Asked about comments made Wednesday by U.S. Deputy Attorney General Todd Blanche to U.S. network NewsNation regarding possible new investigations into Mexican officials allegedly linked to drug trafficking, Sheinbaum again demanded evidence from U.S. authorities.

“Evidence, send evidence, because extradition treaties and mutual trust agreements require proof,” she said.

The Mexican president reiterated that drug trafficking and drug consumption must be addressed as a shared responsibility between both nations.

She said her government remains willing to cooperate with the Trump administration on security, migration and anti-drug policies, but stressed that any collaboration must respect Mexico’s sovereignty.

The 2026 U.S. National Drug Control Strategy identifies Mexico as the center of Washington’s anti-drug campaign, reaffirming the designation of Mexican cartels as terrorist organizations and classifying fentanyl as a weapon of mass destruction.

The document conditions future security cooperation on measurable results in extraditions and the dismantling of drug laboratories, warning that the United States will use “all available capabilities” against criminal networks.

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What are US proposals to end war, and will Iran agree to them? | US-Israel war on Iran News

Iran said on Wednesday that it was reviewing a United States peace proposal that sources said would formally end the war, while leaving unresolved the key US demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.

An Iranian Foreign Ministry spokesperson quoted by Iran’s ISNA news agency said on Wednesday that Tehran would convey its response. US President Donald Trump said he believed Iran wanted an agreement.

“They want to make a deal. We’ve had very good talks over the last 24 hours, and it’s very possible that we’ll make a deal,” Trump told reporters in the Oval Office on Wednesday.

A day before, Trump paused “Project Freedom” to reopen the blockaded strait, citing progress in peace talks. The de facto blockade of the waterway threatens to cause a global recession. Iran has been pressing to keep Hormuz under its control, through which a fifth of global oil and gas supply passes.

Here is more about the US proposal to end the war, and how experts think Iran would respond.

What is the latest US proposal to end the Iran war?

US media outlet Axios said the two sides were “getting close” to an agreement on a 14-point document. Under the memorandum, Iran would agree not to develop a nuclear weapon and halt enrichment of uranium for at least 12 years, it said.

The US would lift sanctions and release billions of dollars in frozen Iranian assets, and both sides, which have imposed competing blockades in the Strait of Hormuz, would reopen the critical waterway within 30 days of signing.

Iran has been under US sanctions for decades, and the lifting of some sanctions under the 2015 nuclear agreement was reversed after Trump walked out of the landmark deal signed under his predecessor, President Barack Obama. Billions of dollars of Iranian assets remain frozen in foreign banks due to the sanctions.

It is unclear how this memorandum differs from a 14-point plan proposed by Iran last week.

The Reuters news agency reported on Thursday, citing a source briefed on the mediation, that the US negotiations were being led by Trump’s envoy Steve Witkoff and son-in-law Jared Kushner. If both sides agreed on the preliminary deal, that would start the clock on 30 days of detailed negotiations to reach a full agreement.

The full agreement would end the competing US and Iranian blockades on the strait, lift US sanctions and release frozen Iranian funds. It would also include certain curbs on Iran’s nuclear programme, which was allowed by the United Nations nuclear watchdog.

While the sources said the memorandum would not initially require concessions from either side, they did not mention several key demands Washington has made in the past, which Iran has rejected, such as curbs on Iran’s missile programme and an end to its support for armed proxy groups in the Middle East.

The sources also made no mention of Iran’s existing stockpile of more than 400kg (900lb) of near-weapons-grade uranium.

Israeli Prime Minister Benjamin Netanyahu, Trump’s ally, said on Wednesday the two leaders agreed that all enriched uranium must be removed from Iran to prevent it from developing a nuclear bomb.

The US and Israel bombed Iranian nuclear sites last June during the 12-day war, after which Trump claimed that Tehran’s nuclear programme was obliterated. A significant portion of Iran’s enriched uranium stockpile remains buried inside the bombed nuclear sites.

Tehran denies wanting to acquire a nuclear weapon. It insists its programme is for civilian purposes as allowed within its position as a signatory to the non-proliferation treaty.

ISFAHAN, IRAN - MARCH 30: A worker walks inside of an uranium conversion facility March 30, 2005 just outside the city of Isfahan, about 254 miles (410 kilometers), south of capital Tehran, Iran. The cities of Isfahan and Natanz in central Iran are home to the heart of Iran's nuclear program. The facility in Isfahan makes hexaflouride gas, which is then enriched by feeding it into centrifuges at a facility in Natanz, Iran. Iran's President Mohammad Khatami and the head of Iran's Atomic Energy Organisation Gholamreza Aghazadeh is scheduled to visit the facilities. (Photo by Getty Images)
A worker walks inside of an uranium conversion facility on March 30, 2005 just outside the city of Isfahan, about 254 miles (410 kilometers), south of capital Tehran, Iran. President wants Iran to end its nuclear programme [File: Getty Images]

Could Iran agree to this proposal?

Iran has yet to formally respond to the latest US proposal. However, Iranian leaders have pushed back against it.

Iranian lawmaker Ebrahim Rezaee, a spokesperson for the parliament’s powerful foreign policy and national security committee, described the text as “more of an American wish-list than a reality”.

Iran’s Parliament Speaker Mohammad Bagher Ghalibaf appeared to mock reports that the two sides were close, writing on social media in English that “Operation Trust Me Bro failed.”

Al Jazeera’s Resul Serdar Atas, reporting from Tehran, said on Thursday that Iran is still reviewing the US proposal, after which a response is expected to be given to the Pakistani mediators later today.

The Pakistani Ministry of Foreign Affairs said on Thursday that it welcomes the news of a potential agreement between Iran and the US, adding that it will not disclose additional information at this stage.

“As mediators, we will not lose the trust of both parties by revealing details,” it said in a statement quoted by Al Jazeera Arabic.

Atas said, “Iranians are saying that, at this stage, they’re not negotiating their nuclear programme; it’s only about ending the war on all fronts.”

He added that Tehran wants direct guarantees from the UN Security Council, a lifting of sanctions and the reopening of the Strait of Hormuz.

“If that is achieved, in a second phase, they’re ready to discuss their nuclear programme.”

Al Jazeera’s Almigdad Alruhaid reported from Tehran on Tuesday that Iran has set “a very firm red line” on the nuclear file. “The nuclear enrichment programme is non-negotiable,” he said.

According to former US Assistant Secretary of State Mark Kimmitt, Trump’s reported demand that Iran halt all uranium enrichment is unrealistic and unlikely to be accepted by Tehran.

“If there is anything the Iranians are going to insist upon in these negotiations, it is their right to enrich uranium to the 3.67 percent level, which is allowed under nuclear non-proliferation treaties,” he told Al Jazeera.

Kimmitt added that even the 2015 nuclear deal permitted Iran to continue enrichment. Iran boosted its enrichment up to 60 percent after Trump withdrew from the deal in 2018, during his first term.

However, Kimmitt postulated that Trump might want Iran’s existing stockpile of enriched uranium outside of Iran. He added that Iran might either agree to move the enriched uranium outside the country or dilute it down to a non-enriched state.

Alruhaid, the Al Jazeera correspondent, however, said Iran is resisting handing over its existing stockpile of enriched uranium.

Iran is believed to have about 440kg (970lb) of uranium enriched to 60 percent. A 90 percent threshold of enriched uranium is needed to produce a nuclear weapon.

Al Jazeera’s Alruhaid said “the sovereignty on the Strait of Hormuz is becoming one of the main issues on the negotiating table.

“We are seeing the Iranians are tightening their control. They are setting new protocol, new mechanism for controlling that strategic chokepoint for each vessel that is to pass through.”

The US allies in the Gulf, who faced the brunt of Iranian retaliatory strikes, have been pushing for the restoration of navigation in the strait without any conditions. Iran carried out attacks on the Gulf nations, mainly targeting US military assets, after the US and Israel launched attacks on it on February 28.

Trump has repeatedly played up the prospect of an agreement that would end the war, so far without success. The two sides remain at odds over a variety of difficult issues, such as Iran’s nuclear ambitions and its control of the Strait of Hormuz.

A Pakistani source and another source briefed on the mediation told Reuters that an agreement was close on a one-page memorandum that would formally end the conflict, the agency reported on Thursday.

This agreement would kick off discussions to unblock shipping through the strait, lift US sanctions on Iran and set curbs on Iran’s nuclear programme, the sources said.

Al Jazeera, however, could not confirm the veracity of the reports.

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Indiana, Ohio primaries draw midterm battle lines, reinforce Trump’s pull | US Midterm Elections 2026 News

Latest votes set up key Senate race, underscore Trump’s continued influence over Republican Party.

Primary elections in Indiana and Ohio have drawn the latest battle lines for the United States midterm elections in November, while underscoring Trump’s continued sway over Republican voters.

In Ohio, voters on Tuesday picked the candidates who will face off in the consequential election, with Democrats picking former Senator Sherrod Brown to take on Republican Jon Husted. Husted replaced Vice President JD Vance when he left his Senate seat for the White House.

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The race is considered one of the most consequential, as Democrats face an uphill battle to retake control of the Senate, which currently has a 53-47 Republican majority. Brown has long styled himself as an economic populist, able to cut across party lines, while Republican groups have pledged to spend heavily to defend Husted.

Also in the “Buckeye State”, Trump ally Vivek Ramaswamy won the Republican gubernatorial nomination. Ramaswamy, who had a short tenure co-running Trump’s Department of Government Efficiency (DOGE) panel, will face off with Democrat Amy Acton, who led the state’s Department of Health during the COVID-19 pandemic.

In Indiana, meanwhile, Trump’s continued influence over the Republican Party was apparent, even as polls have seen his overall approval rating tank in recent weeks amid economic uncertainty and the US-Israeli war in Iran.

The US president had promised to target Republicans who pushed back on his calls for Indiana to redraw its congressional districts in advance of the midterms. Indiana was one of the few Republican-controlled state legislatures to reject the president’s pressure amid a wider flurry of state redistricting.

Five of the state-level candidates Trump targeted subsequently lost their primary elections on Tuesday. One candidate won, and one race remained too close to call.

State Senator Linda Rogers, one of the ousted Republicans, said Trump’s successful attempt to scuttle her race sent a clear message to others in the party considering opposing the president.

“If someone is going to ask you to take a tough vote, you may think twice about your conscience and what’s best for your community and instead what’s best for you and your career,” she said.

The primary comes shortly before US Representative Thomas Massie in Kentucky and US Senator Bill Cassidy in Louisiana, both Republicans, face punishing primary challenges. Trump is opposing both incumbents.

Massie has been one of the most outspoken critics of the administration, particularly when it comes to the US-Israeli war in Iran and the Department of Justice’s handling of documents related to disgraced financier Jeffrey Epstein.

Cassidy had voted to impeach Trump in 2021 for his role in the January 6, 2021, riot at the US Capitol and remained a critic throughout Trump’s 2024 re-election campaign.

While Trump’s influence remained strong in the Indiana primary, it does not necessarily spell Republican success in the general elections.

Recent polls have shown tanking support for Trump among independents, who are unaffiliated with either party and often serve as key deciding factors in close races.

For example, a recent NPR/PBS News/Marist Poll found that 63 percent of US residents nationally place a “great deal or good amount of blame” on Trump for high petrol prices. That rate was the same – 63 percent – for independents.

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Oil price plunges back below $100 on hopes of U.S.-Iran peace deal

A gas station in South Africa displays the latest prices for petrol and diesel after they hit a record high on Wednesday despite global oil prices plunging back below $100 a barrel on hopes of a deal to end the war in Iran. Photo by Kim Ludbrook/EPA

May 6 (UPI) — Global oil prices fell sharply and financial markets rallied Wednesday after U.S. President Donald Trump paused a military operation to reopen the Hormuz Strait to commercial shipping to give advanced peace talks with Iran a chance to deliver “a complete and final deal.”

Falls in Brent crude of more than $10 a barrel to $99, American crude by $13 to $92 a barrel and rallies in Asian stock markets overnight that fed into Europe when bourses opened there failed to feed through to U.S. gas prices, which jumped 5 cents a gallon to their highest level of the war.

AAA motor club figures showed a national average of $4.54 for a gallon of petrol and $5.67 for diesel, meaning drivers were paying 53% and 51% more than before the war started on Feb. 28, with the caveat that fuel price adjustments normally lag crude oil price movements by several days.

The White House believes a draft one-page, 14-point memorandum of understanding to end the war and create a structure for more in-depth nuclear talks could succeed in breaking the deadlock, two U.S. officials and two other sources said.

An Iranian foreign ministry spokesman confirmed to CNBC that Iran was in receipt of the U.S. proposal and was “evaluating it.”

The Trump administration anticipates Iran will give its response with regard to the most critical elements of the plan in the next two days and although nothing has been finalized it was being seen as significant because it was the closest the sides had been to a deal since the beginning of the war.

However, Trump also appeared ambivalent, saying Wednesday it was “perhaps” too big of a stretch to believe Iran would take the deal and threatening to order the U.S. military to restart its airborne offensive against the country if it didn’t.

Analysts said investor confidence was boosted mainly by the fact the cease-fire was holding and signs that the economy was nowhere near as badly affected by the war as feared.

“This helped oil prices to come back down again and ease fears about a renewed escalation, with investors a bit more hopeful that an extended stagflationary shock would be avoided,” Deutsche Bank wrote in a note.

It added that investor confidence was also bolstered by new U.S. economic data showing among other positive indicators, that job vacancies declined less than anticipated in March, saying the numbers “cemented the case that the conflict’s wider economic impact was still fairly muted.”

“This helped oil prices to come back down again and ease fears about a renewed escalation, with investors a bit more hopeful that an extended stagflationary shock would be avoided,” they added.

Hopes were also riding on the possibility China would prevail on visiting Iranian foreign minister Abbas Araghchi to persuade Iran to uphold the current truce with the United States, so as not to throw a wrench into Trump’s visit to Beijing on May 14, the first by any U.S. president in almost a decade.

China is one of Iran’s largest customers for its oil exports.

President Donald Trump speaks before signing a proclamation inside the Oval Office at The White House on Tuesday. The memorandum is set to restore the Presidential Fitness Test Award, a competitive school-based fitness program last seen under the Obama administration. Photo by Tom Brenner/UPI | License Photo

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Seoul shares shoot up nearly 6.5 pct to over 7,300 on chip rally, Mideast hopes; won rises

Employees take part in a ceremony at the trading room of Woori Bank in Seoul on Wednesday to celebrate the benchmark KOSPI closing at an all-time high of 7,384.56. Photo by Yonhap

South Korean stocks shot up nearly 6.5 percent Wednesday, extending a record-breaking run to top the 7,300-point mark, driven by a semiconductor rally and optimism for a potential peace deal in the Middle East. The local currency also strengthened against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 447.57 points, or 6.45 percent, to a fresh record high of 7,384.56.

It marked the second-largest daily gain in terms of points following 490.36 points reached on March 5.

Trade volume was heavy at 984.4 million shares worth 58.2 trillion won (US$40 billion), with losers outnumbering winners 199 to 677.

Foreigners bought 3.1 trillion won worth of local shares, while institutions and individuals dumped a net 2.3 trillion won and 571.2 billion won, respectively.

Overnight, U.S. President Donald Trump said he would pause operations to escort ships through the Strait of Hormuz as part of efforts to reach a final agreement with Iran.

The KOSPI opened 2.25 percent higher to surpass the landmark 7,000-point threshold for the first time and extended the gains throughout the session.

The main index has been on a bullish run in recent months, surpassing the 5,000-point mark in late January and topping another milestone of 6,000 points in February.

After recouping its losses in March following the outbreak of the U.S.-Iran war in late February, the KOSPI breached the 7,000-point level on continued optimism over the artificial intelligence (AI) boom and hopes for the reopening of the key waterway.

“Global tech giants’ strong performances and the strengthened value chain for AI data centers boosted the AI-related shares,” Lee Kyung-min, an analyst at Daishin Securities, said. “In particular, the market’s top-three shares of Samsung Electronics, SK hynix and SK Square led the rally.”

Top-cap Samsung Electronics surged 14.41 percent to close at 266,000 won, pushing its market capitalization above 1.5 quadrillion won and becoming the second Asian company to surpass the $1 trillion milestone after Taiwan Semiconductor Manufacturing Co.

SK hynix soared 10.64 percent to 1.6 million won, and AI investment firm SK Square jumped 9.89 percent to 1.1 million won.

Hanmi Semiconductor, a chip manufacturing company, rose 4.37 percent to 394,500 won, and LG Electronics vaulted 8.17 percent to 154,900 won.

However, shipbuilding and defense shares dropped. Major shipyard HD Hyundai Heavy Industries fell 4.71 percent to 648,000 won, and defense giant Hanwha Aerospace lost 2.18 percent to 1.4 million won.

Leading biotech firm Samsung Biologics declined 0.34 percent to 1.48 million won, and top mobile carrier SK Telecom backtracked 1.95 percent to 95,500 won.

The Korean won was quoted at 1,455.1 won against the U.S. dollar at 3:30 p.m., up 7.7 won from the previous session.

The quotation marks the highest since February 27, when the currency closed at 1,439.7 to the greenback.

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