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POLITICS

‘We won.’ ‘Winding down.’ ‘Close to over.’ Six months of Trump on the Iran war

WASHINGTON — For the last six months, President Trump has attempted to control the narrative of the Iran war.

As days, weeks and months passed, he repeatedly said that an agreement to end the conflict was close at hand and that Iran was already defeated. Between fraught negotiations, Trump has gone from conciliatory to antagonistic, characterizing Iran’s new leadership as more “rational” than their predecessors, only to later call them “sick individuals.”

There have even been times the commander in chief contradicted himself and his own Cabinet in the same week — and sometimes, the same day.

Friday marks the sixth month of the war launched by the U.S. and Israel. Among U.S. forces, there have been at least 18 killed and 758 wounded, according to Pentagon data. The Human Rights Activists News Agency puts the death toll in Iran at 3,636. In Lebanon, officials, say more than 4,300 have died. The Israeli military reported 72 deaths, and at least 50 civilians have died, according to news reports.

Here is a recap of notable comments Trump made in public remarks and on social media during half a year of war:

What he said: “The United States military has undertaken a massive and ongoing operation to prevent this very wicked, radical dictatorship from threatening America and our core national security interests.”

In announcing the start of Operation Epic Fury from the White House, Trump called Iran the world’s No. 1 state sponsor of terror and recalled actions by Iran or its proxies, such as the hostage crisis of 1979 and the bombing of a Marine barracks in Lebanon in 1983 that left 241 dead.

The goals of the operation, Trump said, were to destroy Iran’s nuclear ambitions, its naval capabilities and missile industry and to ensure that Iranian proxies — including Hezbollah and Hamas — were thwarted. He implored Iranian citizens to rise up against the government.

What happened: That morning the U.S. and Israel conducted airstrikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei as well as other key military and government figures. According to Iran’s Red Crescent, 24 of Iran’s 32 provinces were hit in the first day of bombings, with more than 200 deaths and 700 injuries reported. Iranian officials said that at least 120 students and 26 teachers died in a missile strike on Shajareh Tayyebeh Elementary School in Minab.

Iran retaliated by launching missiles at Israel and U.S. bases in Saudi Arabia, Iraq, Jordan, Kuwait, Bahrain, Qatar, United Arab Emirates. The Islamic Revolutionary Guard Corps also warned ships to not travel through the Strait of Hormuz, the passageway for 20% of the world’s oil and energy supplies.

What he said: “We grieve for the true American patriots who have made the ultimate sacrifice for our nation, even as we continue the righteous mission for which they gave their lives. Sadly, there will likely be more.”

Trump announced that at least three service members were killed in an Iranian attack, the first U.S. casualties in the war.

In an interview with the New York Times, Trump was asked how long the U.S. and Israel could sustain its offensive in Iran. “It won’t be difficult,” he replied. “We have tremendous amounts of ammunition. You know, we have ammunition stored all over the world in different countries.”

What happened: An Iranian one-way drone attack was launched against the industrial Port Shuaiba in Kuwait, where American soldiers set up an operations center after abandoning the larger Camp Arifjan military installation.

What he said: “We projected four to five weeks, but we have capability to go far longer than that.”

At a Medal of Honor ceremony at the White House, Trump assessed the progress of the attacks on Iran, saying the U.S. was “already substantially ahead of our time projections.”

Ret. Command Sgt. Maj. Terry P. Richardson is presented the Medal of Honor by President Trump

What happened: The conflict expanded, with Iran-backed militant group Hezbollah in Lebanon launching drones against Israel.

Israel’s counter-strike would ultimately decapitate Hezbollah leadership, but strikes between the two forces would continue through the first week of war.

U.S. Central Command increased the number of U.S. troop deaths in the Kuwait strike to six from three.

What he said: “The war itself is going unbelievably. It’s as good as it can be.”

He said that the U.S. “wiped out” the Iranian navy, air force, drone manufacturing capabilities and “every form of leadership you can have,” adding that he was interested in being a part of the selection of Iran’s new leader.

He also said that he believed the strike on the Minab school was a misdirected missile launched by Iran. He offered no evidence.

The family of 8-year-old Reza Habashian, a second-grader, observes the Persian New Year at his graveside

What happened: Iranian drone and missile strikes on gulf neighbors continued.

The day after Trump said Iranians had no existing leadership prospects, Mojtaba Khamenei, one of Ayatollah Ali Khamenei’s sons, would become the new supreme leader.

U.S. officials familiar with the preliminary findings of an investigation into the Minab school strikes leaked information to the New York Times that indicated the U.S. had bombed the school as a result of a “targeting mistake.”

What he said: “Watch what happens to these deranged scumbags today. They’ve been killing innocent people all over the world for 47 years, and now I, as the 47th President of the United States of America, am killing them. What a great honor it is to do so!”

In a Fox News radio interview with Brian Kilmeade, Trump said that an uprising by Iranian civilians appeared likely. “It’ll happen, but it probably will be, maybe not immediately,” he said.

What happened: Iran and Hezbollah continued joint attacks against Israel, while Israel continued its own large-scale strikes on Beirut and Tehran.

On March 13, a U.S. Air Force KC-135 Stratotanker — a refueling and airlift plane — crashed over Western Iraq without being attacked, resulting in the death of six more U.S. service members, Central Command announced. The U.S. death toll increased to 13.

What he said: “I think we won. All they’re doing is clogging up the Strait [of Hormuz], but from a military standpoint, they’re finished.”

Lightning streaks across the sky above an oil tanker

That same afternoon, in a post on his social media website, Trump said the U.S. was considering “winding down” military efforts in Iran.

What happened: The Pentagon said in a statement that it would send three warships and roughly 2,500 Marines to the Middle East for “routine training.”

What he said: “I am pleased to report that the United States of America and the country Iran have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.”

Trump also postponed military strikes against Iranian power plants and energy infrastructure after threatening to do so if Iran did not open access to the Strait of Hormuz.

What happened: Mohammad Bagher Qalibaf, Iran’s parliament speaker, responded to Trump’s claims in a post on X. “No negotiations have been held with the U.S.,” Qalibaf wrote, adding that he believed the U.S. was using the prospect of an accord to ease strain on financial and oil markets.

What he said: “The United States of America is in serious discussions with A NEW, AND MORE REASONABLE, REGIME to end our Military Operations in Iran.”

Iranian Foreign Ministry spokesman Esmail Baghaei

While saying in a social media post that progress had been made, Trump leveled additional threats if a pact wasn’t reached shortly. “We will conclude our lovely ‘stay’ in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island,” he wrote.

What happened: Iranian Foreign Ministry spokesperson Esmail Baghaei once again rejected that direct talks with the U.S. had taken place, describing the proposed terms as “unrealistic, unreasonable and excessive.”

What he said: “We’re gonna hit them hard over the next two to three weeks. We’re gonna bring them back to the stone ages, where they belong.”

In an address to the nation, Trump also denied that a change of governments was ever a goal in attacking Iran.

What happened: Thousands more U.S. troops arrived in the Middle East amid continuous back-and-forth strikes. Iran hit an oil tanker off Qatar’s coast and fired missiles and drones at Jordan, which were intercepted. Israel carried out strikes on a Beirut neighborhood.

What he said: “A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will.”

Vice President JD Vance holds a cellphone while on a call with President Trump to a microphone

What happened: Trump’s post about a whole civilization dying went live around 5 a.m., but later in the day the U.S. and Iran announced a two-week truce. Iran’s Supreme National Security Council said in a statement that the truce did not “signify the termination of the war.”

What he said: “Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz.”

What happened: U.S. Central Command announced that the blockade of Iranian ports began at 10 a.m. Eastern. Central Command said the blockade would be “enforced impartially against vessels of all nations” entering or departing Iranian ports and coastal areas.

People pass in front of a pro-government political mural in Tehran

What he said: “I think it’s close to over, yeah. I view it as very close to being over.”

Trump’s comment to Fox Business anchor Maria Bartiromo on “Mornings with Maria” came two days after he announced the blockade of Iranian ports.

What happened: Though the ceasefire continued to hold, Iran officials had not relented on their right to enrich uranium, to maintain conventional defensive capabilities and to police traffic through the Strait of Hormuz.

What he said: “I didn’t guarantee no war. Why would I have built the strongest military in the world?”

In an interview with Kristen Welker of NBC on the 100th day of the conflict, Trump claimed that he had never promised during his campaign that he would not engage in new wars in the Middle East.

President Trump during an interview with Kristen Welker

What happened: On multiple occasions during his 2024 presidential campaign, Trump suggested that he wouldn’t start new “endless wars.”

In a social media post in late June 2024, he framed the election as a choice between “peace and prosperity or war and no war.”

What he said: “It’s a memorandum of understanding, and if I don’t like it, we’ll go back to shooting at them, dropping bombs on their head.”

Trump spoke the same day he signed a 14-point Memorandum of Understanding with Iran to cease hostilities for 60 days. Trump put his signature to the memorandum while attending a dinner with French President Emmanuel Macron in Versailles.

French First Lady Brigitte Macron, French President Emmanuel Macron, and U.S. President Donald Trump

What happened: The document set out a series of conditions, including the release billions of dollars in Iranian assets that were frozen and restricted by the United States “upon the implementation” of the memorandum.

Some issues, such as the future of Iran’s nuclear program, were set aside for negotiations down the road.

The White Housed pushed back on bipartisan criticism of the deal, arguing its concessions were contingent on Iran’s conduct.

What he said: “There may come a point when we are no longer able to be reasonable, and will be forced to militarily complete the job that we very successfully started. If that happens, the Islamic Republic of Iran will no longer exist!”

What happened: Trump’s social media post came as Iran and the U.S. continued to carry out strikes in the Middle East despite the memorandum. CENTCOM announced that military surveillance, air defense sites and drone storage facilities were struck after an Iranian attack on a container ship, the Ever Lovely.

What he said: “Iran has been very, very badly damaged. They’ve lost everything, almost, militarily. … They’ve got very little left; They’ve got some missiles; They’ve got some drones; They’ve got some manufacturing ability, not much; We control the Strait.”

The bridge linking Bandar Abbas and Kehuristan, rendered unusable in a U.S. strike

What happened: According to a CENTCOM press release, the U.S. completed 13 nights of consecutive strikes against Iran by July 23, adding to an earlier announcement that Iran had attacked more than 30 commercial vehicles in the previous three months of conflict.

What he said: “I think it’s going to end really soon.”

Trump made the comment in the Oval Office while back-and-forth strikes — primarily over control of the Strait of Hormuz — continued.

What happened: According to a report by NPR, Iran’s parliament aimed to block U.S. and Israeli access to the Strait of Hormuz, despite Trump’s assertion that the waterway was under his control.

What he said: “We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money.”

Trump’s comments reflected how U.S. officials sought to readjust wartime strategy after multiple rounds of failed negotiations. Trump told Axios that he would not proceed with expanded strikes against Iran, as the U.S. was “low-keying” its approach to the conflict.

What happened: As the war approached its six-month mark, both sides mostly ceased military attacks, but shifted to economic pressure.

“ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences,” Trump wrote in an Aug. 19 post, threatening “ECONOMIC D-DAY” if Iran did not comply with his demands.

According to Reuters, Qalibaf, the Iranian parliament speaker, said that the Strait of Hormuz would remain closed until military threats ceased and sanctions on Iran were lifted.

What he said: “IRAN IS COMPLETELY COLLAPSING!!!”

What happened: In a post on X three days before Trump’s “completely collapsing” post, the hard-line leader of Iran’s Supreme National Security Council had noted economic sanctions placed on Iran by previous presidents, including Obama and Biden, and said they had all failed.

“We have seen this movie before,” he wrote. “Same bull. Different bullies.”

Iranian officials attend an event at the ayatollah's mausoleum to mark the first day of 'Government Week'

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POLITICS

Republicans face a midterm verdict as Iran war drags on months longer than Trump promised

Aug 28, 2026 Politics Desk

BETHLEHEM, Pa. — Mike Gibbons sat out the presidential election two years ago, frustrated that Democrat Kamala Harris did not take a stronger stand against Israel’s war in Gaza and unable to bring himself to cast a vote for Republican Donald Trump.

That is not his plan this year.

The 33-year-old restaurant server in this eastern Pennsylvania town that once housed one of the world’s largest steelmakers is eager to vote for any Democrat he can in November. As the war with Iran that Trump initially said would last weeks surpasses six months on Friday, Gibbons is feeling the fallout every time he fills his tank at nearly $1 per gallon more than last year.

“The price of gas affects the price of everything and the price of everything’s up and my pay hasn’t gone up,” he said. “I’m doing blue no matter who this time.”

The Iran war has reshaped the rapidly approaching midterm elections, undermining Trump’s campaign pledge to steer clear of foreign conflicts and challenging Republicans who would rather focus on their tax cuts as they cling to narrow majorities in Congress.

While the president’s supporters are undeterred, the war’s unpopularity and economic ripple effects could tilt the scales in tightly contested U.S. House districts like the one in Bethlehem, where Republican Rep. Ryan Mackenzie is one of this year’s most vulnerable incumbents.

Midterm elections are always difficult for the party in power in Washington. But interviews with voters around the country show how a war that Trump expected to end with a swift victory could undermine the final years of his presidency.

Many U.S. adults say the war has not been worth fighting

About two-thirds of U.S. adults say the war with Iran has not been worth fighting, according to a July poll from The Associated Press-NORC Center for Public Affairs Research. That includes the vast majority of Democrats and independents, as well as more than one-third of Republicans.

Although Trump has long criticized Iran’s leadership, he did little to prepare Americans or allies for such a lengthy conflict. Republican President George W. Bush, for instance, spent more than a year making a case for launching a war in Iraq through speeches and attempts to build an international coalition. Trump did none of that.

Trump has refused to acknowledge the war’s cost, saying this month he would “never apologize” for higher prices stemming from it and insisting he did “the right thing” to prevent Iran from obtaining a nuclear weapon. His administration announced new sanctions this week in an attempt to further isolate Tehran.

In Congress, Republicans have shifted from initially cheerleading Trump’s moves in Iran to expressing concern about the toll of the war. But the party has largely unified to block measures that would curb Trump’s war powers and leaders have shown no interest in cutting off money for the war, preferring to portray Democrats as extremists who cannot be trusted to govern.

Democrats who were blamed just two years ago for presiding over high prices see an opportunity to turn the issue back on their opponents. As part of his comeback U.S. Senate bid in Ohio, Sherrod Brown released an ad this week filmed at a gas station as he said “the cost of gas is out of control and we’re the ones paying for it.”

Speaking to a group of older adults recently in a Republican-dominated swath of western Maryland, Democratic U.S. Sen. Angela Alsobrooks blamed higher prices on the war. Heading into November, she encouraged fellow Democrats to stay focused on the war’s impact and what it says about Trump’s leadership.

“We ought to be saying what is obvious, which is our country is heading in the wrong direction,” she said in an interview.

That resonates with voters such as Brandon Bane, a fast-food worker in Bakersfield, California, where Republican Rep. David Valadao is also in a competitive congressional race. Bane, who described himself as a political independent, said he often has to balance paying rent and groceries, noting high gas prices have only added to the challenge.

“It hasn’t been worth it at all,” he said of the war, adding that he plans to vote for Valadao’s challenger, Democrat Randy Villegas.

Melissa Wegman, a Democratic retiree who is also from Bakersfield, said she was shocked when the pump recently whirled to $128 to fill the tank on her SUV.

“I have to manage a budget,” she said.

Some voters are sticking with Republicans

But there is a risk, too, that the war does not provide Democrats with the political boost they are expecting.

While there is plenty of frustration about prices, there are also voters willing to make adjustments without blaming Republicans. Many remain aligned with Trump and are not interested in seeing Democrats return to power.

North Carolina is a top pickup opportunity for Democrats hoping to flip a U.S. Senate seat. But at the State Farmers Market in Raleigh, North Carolina, Lucienda Lowe of Sugarloaf Orchards said her faith in Trump is solid.

“There has to be a reason why they’re over there,” she said. “They wouldn’t be over there doing that if there wasn’t something more going on than what we’re seeing.”

She has not raised her prices on apples even as fuel and fertilizer costs soar. Her family has been farming since 1846 so she feels resilient to weather the next rough patch and tells others to do the same.

“Suck it up, buttercup,” she said.

Similarly in Iowa, where Democrats are bullish on their prospects of flipping everything from a U.S. Senate seat and the governor’s mansion to several U.S. House races, Larry Cole said higher gas prices as a result of the war are just the “nature of the beast.”

The 66-year-old Republican service manager from Perry, Iowa, said he will back Republicans in this midterm elections and does not want to see Democrats gain control in either chamber. He said Trump has taken action that other presidents were not willing to do to keep Iran in check.

Trump “hit them where they need to be hit,” Cole said.

Mark Duffy, 65, of Scottsdale, Arizona, said he did not expect the Iran war to go on as long as it has, but it has not had material effects on his life.

“I didn’t think it would go this long,” said Duffy, who retired a year ago from his career selling electronic components. “I don’t think anybody did, but now the next wave is the economic sanctions, so we’ll see if that works and maybe that is a way for other people to join.”

For others, the war has only reinforced a sense that neither political party is responsive to the needs of voters.

As he left a tattoo parlor in Ashland, Virginia, 26-year-old Evan Mise said he feels the increase in gas prices and worries about whether his mom will be able to retire or whether he will someday be able to.

But he had not decided whether to support Democrats or Republicans in November.

“I feel like our government is pretty corrupt through and through,” he said. “It’s kind of just a sit-back-and-watch thing. And I think my generation especially feels helpless.”

Catalini and Sloan write for the Associated Press. Sloan reported from Washington. AP writers Allen G. Breed in Raleigh, N.C., Michael R. Blood in Bakersfield, Sarah Rankin in Ashland, Va., Jonathan J. Cooper in Scottsdale, Ariz., and Hannah Fingerhut in Des Moines, Iowa, contributed to this report.

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POLITICS

U.S. Patriot missile stocks in Europe are ‘beyond critical’ due to Iran war, officials say

Aug 27, 2026 Politics Desk

WASHINGTON — The U.S. military is experiencing a “beyond critical” shortage of advanced missile interceptors in Europe largely driven by President Trump’s war with Iran, a U.S. defense official in Europe and a NATO official told the Associated Press, raising concerns about vulnerabilities in NATO countries to a potential Russian attack.

The U.S. defense official said the most concerning shortfall involves Patriot missile interceptors, which can shoot down Russia’s high-speed ballistic missiles. The NATO official confirmed the low inventories of Patriots among American and NATO forces in Europe. Both spoke on condition of anonymity to discuss sensitive military matters.

In the event of a Russian ballistic missile assault on, for example, a military headquarters or power plant, NATO could be in a similar position to Patriot-starved Ukraine and be forced “to take punch after punch in the mouth,” the U.S. defense official said.

In Europe, the American military “definitely” does not have enough Patriots to stop any possible sustained ballistic missile attack and would have “very limited” capability to defend against a single ballistic missile strike or a stray Russian missile that goes off course, the U.S. official said.

It illustrates the cascading fallout from Trump’s decision to launch a war against Iran, a conflict that reaches the six-month mark on Friday. U.S. missile stocks in Europe have been moved to the Middle East, where U.S. and Gulf allies have fired off significant numbers of interceptors, including Patriots, to thwart Iran’s drones and missiles. Some of those attacks have killed and wounded American troops.

Though a Russian ballistic missile attack against NATO countries is not imminently expected, CIA Director John Ratcliffe went to Moscow this week to warn Russia not to attack, The Wall Street Journal reported. Trump played down the significance of the rare and secretive trip, saying it was “sort of semi-routine.”

European and NATO officials say Russia could be in a position to attack countries in the alliance by 2030. Patriot stockpiles are projected to rebound by then. In the meantime, Russia’s war in Ukraine could hinder its ability to carry out any missile attack on Europe as it would be a challenge for Moscow to fight an air war on two fronts.

U.S. Patriot transfers to Ukraine played a role in the drawdown, but the Iran war wasn’t expected

The Patriot missile shortage is most acutely felt in Ukraine, where officials are begging for more air defense support and where previous U.S. transfers also have drawn down some supply. Kyiv says only U.S.-made Patriots can stop Russia’s advanced ballistic missiles, which increasingly are getting through Ukrainian defenses, including as part of a barrage overnight into Thursday.

The U.S. supplied hundreds of Patriot missiles to Ukraine over the course of the 4 1/2-year-long conflict, but the Iran war was the tipping point for shrinking inventories, said Ed Arnold, senior associate fellow at the Royal United Services Institute, a military think tank in London.

The supply to Ukraine was planned for and reasonably measured, he said, whereas stocks in the Middle East have been unexpectedly and quickly drained, exposing supply chain constraints.

The U.S. military in Europe also is grappling with critical shortages of the Army Tactical Missile System, or ATACMS, a medium-range ballistic missile designed to strike behind enemy lines, the two officials said. But the overall munitions picture in Europe is less dire than on air defenses alone because some European militaries have their own offensive missiles, such as the Taurus and Storm Shadow, which are both long-range air-launched bunker-busting missiles.

U.S. Army Col. Martin O’Donnell, a senior NATO military spokesperson, said it is “simply not the case” that the number of Patriot missiles in Europe is beyond critical.

NATO, he said, is able to “block punches” and has enough air defense munitions available to defend itself as well as to donate to Ukraine.

Chief Pentagon spokesman Sean Parnell said in a statement Thursday that claims of U.S. munition shortages “are false.”

“We have everything required to strike at the time and place of the President’s choosing,” Parnell said. “Across multiple combatant commands, we have already executed successful operations while maintaining a deep, ready arsenal to defend our people and our interests.”

Europe has few alternatives while stocks are low

The dearth of Patriot interceptors in Europe would leave few alternatives for shooting down Russia’s more advanced ballistic missiles, which can be combined with swarms of inexpensive drones to overwhelm defenses, experts say.

Ukraine and some allies already use systems that can destroy slower-moving drones without expensive missiles. But ballistic missiles are a challenge because they dive steeply toward targets at more than five times the speed of sound, leaving little time to stop them.

The Patriot system tracks the missile, predicts its path and launches within minutes, all while carrying out complex calculations to ensure the interceptor finds its target. One Patriot battery can only cover a limited area: for example, a small military base but not a whole city.

One alternative could be France and Italy’s SAMP/T NG air defense system. France has promised to speed up the delivery of the system — the upgraded version of the current SAMP/T — to Ukraine, which the manufacturer says is better able to counter ballistics.

The new iteration, however, has not yet been battle tested and the current version of the SAMP/T has a smaller range than the Patriot.

While U.S. and European militaries have warships that can serve as mobile air defense, they may be too far from a target to protect it and could risk getting sunk.

Patriot stocks have plunged during the Iran war

Ukraine has received Patriots from American and European stockpiles since Russia’s 2022 invasion, with the U.S. providing about 600 of the interceptors during the Biden administration, said Mark Cancian, a retired Marine colonel who is now senior adviser at the Center for Strategic and International Studies, a Washington think tank.

But the greatest expenditure has been during the Iran conflict, which has used up 65% of U.S. Patriots, amounting to roughly 1,500 of the nation’s 2,330 interceptors, CSIS says. About 600 missiles, including those destined for Europe, should be made this year, with a production goal of 2,000 Patriot missiles a year set for 2030, Cancian said.

NATO says Europe’s first Patriot missile production facility is expected to open in Germany in September, with deliveries possibly beginning early next year. The first deliveries should go to countries that have already placed orders, including Germany, the Netherlands, Romania and Spain, the U.S. defense official said.

But for now, that means some countries, such as Germany, have bought expensive Patriot systems but are in the “ridiculous” position of not having any ammunition to fire from them, said Arnold of the London think tank.

Germany’s defense ministry said it does not comment on stockpiles.

Russia also has limitations

Moscow likely cannot carry out a sustained air assault on a NATO target while it launches almost nightly attacks on Ukraine, Arnold said.

Ukraine’s recent strikes into Russia also have exposed weaknesses in Russia’s air defenses, which could prompt Putin to think twice about provoking a retaliatory attack.

“The uncomfortable truth is possibly the best air defense that we have is Russian constraints,” Arnold said.

Burrows and Finley write for the Associated Press. Burrows reported from London. AP writer Konstantin Toropin contributed to this report.

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MONEY

US threatens Iran with ‘economic D-Day’ as markets await sanctions announcement

Aug 24, 2026 Finance Desk

Published on
24/08/2026 – 11:00 GMT+2

The US is ramping up its economic pressure on Iran after Treasury Secretary Scott Bessent declared the start of an “economic D-Day”.

According to Bessent, this represents “the single greatest financial offensive ever marshalled against an adversary.” He set out the position in a post on X late on Sunday and in a Financial Times opinion article published the same day.

Bessent stated that US President Donald Trump’s military campaign had “significantly dismantled Iran’s military capabilities and weakened its nuclear programme”. He added that the administration is now “entering the endgame” and that the economic measures begin at dawn.

The objective, according to the US Treasury Secretary, is to “sever every economic lifeline that sustains the tyrannical regime until Tehran stands alone”.

Bessent cautioned countries that continue to buy or transport Iranian petroleum, facilitate financial flows through exchange houses and free trade zones, handle flights, maintain ship registries or enable seaborne fuel transfers, that any remaining links would accelerate their own isolation.

The comments follow remarks by US President Donald Trump last week. At the time, Trump announced in a Truth Social post “the most crushing economic operation ever taken agaisnt any country!”

Despite both declarations, specific measures have not yet been set out.

According to Bessent’s outline, the package could centre on secondary sanctions against nations and entities that keep purchasing Iranian oil, process its finances, operate related banks or support shipping and other commercial channels, layered on top of the existing naval blockade.

Bessent is scheduled to hold a press conference at 7 PM CET on Monday to announce the concrete steps.

Market reaction

Oil prices are lower on Monday morning even as the rhetoric intensifies.

At the time of writing, Brent crude, the international standard, is trading at around $91.5 which is 2% lower than Friday’s close while West Texas Intermediate stands at roughly $86.2, about 1.5% lower than last week’s close.

The fall may stem from profit-taking after recent gains and from reports of a temporary rise in tanker movements through the Strait of Hormuz.

According to shipping information cited by Axios, around 40 tankers transited the southern channel on Friday night, moving roughly 16 million barrels of oil, higher than the 15-20 vessels recorded on preceding nights.

Overall volumes through the waterway remain well below pre-conflict levels.

On the other hand, US futures are also in the red ahead of market open while European stocks are trading flat.

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MONEY

Oil rises as markets rebound on US Treasury debt buyback plan

Aug 20, 2026 Finance Desk

Published on
20/08/2026 – 8:19 GMT+2

Oil prices rose on Thursday, holding near their highest levels in weeks, as the deadlocked standoff between the United States and Iran kept supply concerns elevated in the Middle East.

Brent crude, the international benchmark, rose 0.3% to $91.90 a barrel, while US benchmark crude edged up 0.2% to $84.57 a barrel.

Prices have climbed steadily since the start of August, when Brent was trading at around $87.38 a barrel, as the standoff over the Strait of Hormuz keeps supply concerns elevated even without any single new escalation.

Both benchmarks remain well above the barrel prices they were trading at before the war began.

Markets rebound on Treasury move

Global shares rallied on Thursday, reversing course after Wednesday’s heavy sell-off in artificial intelligence-related stocks, after the US Treasury Department said it would at least double the size of its buyback operations for longer-dated government debt, to $4 billion (€3.4bn) or more per operation, starting in September.

The move eased pressure on bond markets that had pushed yields to multi-decade highs in recent months, and lifted risk appetite across Asia.

South Korea’s Kospi surged 6.1% to 6,858.91, rebounding sharply after sinking 5.8% on Wednesday. Samsung Electronics jumped 9.7%, while SK Hynix surged 14.1% after the memory chipmaker announced a share buyback plan.

Japan’s Nikkei 225 added roughly 0.9%, while the Topix rose 0.8%, recovering some of Wednesday’s losses. Hong Kong’s Hang Seng gained 1.1% to 25,786.32, and the Shanghai Composite rose 0.3% to 3,905.23. Australia’s S&P/ASX 200 was up 0.3% to 9,066.40.

Bond yields ease from multi-decade highs

The yield on the 10-year US Treasury fell to around 4.64%, from 4.71% on Tuesday, while the 30-year yield dropped to 5.18% from 5.28% — pulling back from its highest level since 2007.

Yields have climbed in recent months on concerns over inflation stemming from the war in Iran and rising government debt.

Japan’s 10-year government bond yield, which had been trading near a three-decade high, fell to around 2.83% from more than 2.89% on Wednesday.

On Wall Street on Wednesday, the S&P 500 climbed 0.2% for its first gain in four sessions, snapping a three-day losing streak. The Dow Jones Industrial Average and the Nasdaq composite each added 0.2%.

The US dollar rose to 158.60 yen from 158.16, while the euro slipped slightly to $1.1676 from $1.1677.

Additional sources • AP

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MONEY

European bond yields hit multi-year highs on Iran war inflation fears

Aug 18, 2026 Finance Desk

Published on 18/08/2026 – 12:47 GMT+2•Updated
13:04

Government borrowing costs are surging on both sides of the Atlantic.

Long-term bond yields across Europe’s biggest economies hit multi-year highs on Tuesday, while the yield on 30-year US Treasuries rose to its highest level in nearly two decades.

The sell-off came as hopes of a swift resolution to the Iran conflict faded, pushing oil prices higher and renewing concerns about persistent inflation. International benchmark Brent crude traded at nearly $91 a barrel on Tuesday morning amid heightened tensions in the Middle East.

“The breakdown in US-Iran peace talks has increased the risk that energy prices remain elevated for the rest of the year, which could keep inflation higher than expected and increase the chance of central banks raising rates,” Richard Carter, head of fixed interest research at Quilter Cheviot, told Euronews Business.

Investors are increasingly betting on tighter monetary policy in the eurozone, with the ECB deposit rate expected to reach 2.76% by March 2027, up from 2.25% currently.

According to Trading Economics, investors see a 90% probability of a September rate hike by the European Central Bank (ECB).

At the same time, in the US, the 30-year Treasury yield reached 5.33%, a level not seen since 2007. In the UK, the 30-year gilt traded at 5.85% — its highest level since May 2026.

As government bonds came under renewed selling pressure globally, France’s 10-year bond yield rose to 4.10% on Tuesday morning, its highest level since June 2009.

Germany’s 10-year Bund yield, the benchmark for the eurozone, climbed above 3.25%, reaching its highest level since March 2011.

France’s 30-year bond yield reached its highest level since 2008, amid a global bond sell-off and growing concern about the country’s 2027 budget negotiations and next year’s presidential election. Germany’s 30-year bond yield rose to 3.78%, its highest level in 15 years.

Rising long-dated bond yields are not driven solely by expectations of higher interest rates and inflation fears.

“Investors are concerned about the scale of borrowing in major economies including the UK, France and Japan,” Carter continued, adding that “significant volumes of AI-related bond issuance have also added to supply, creating further pressure on prices and pushing yields higher.

Higher borrowing costs put pressure on economies and raise financing costs across a range of investments.

As government debt offices constantly raise money through bond markets, the effect of the jump in yields will gradually feed into their borrowing costs as they refinance maturing debt.

Italy is expected to refinance maturing debt equivalent to 17% of GDP in 2026, according to S&P Global Ratings, compared with 12% for France and 7% each for Germany and the UK.

For now, bond markets are likely to remain sensitive to developments in both geopolitics and economic data,” Carter said.

He added that bonds remain attractive to investors because yields are historically high and comfortably exceed inflation, offering a positive return after price rises are taken into account.

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POLITICS

U.S. pulls last aircraft carrier from Asia as Trump focuses on Iran war

Aug 15, 2026 Politics Desk

WASHINGTON — President Trump’s war against Iran is stretching the limits of U.S. aircraft carriers and leaving the western Pacific without one of the key American warships as China shows more signs of aggression.

The USS George Washington is departing the Pacific to relieve the USS Abraham Lincoln in the Middle East, amid growing concerns about mental health and supply issues aboard the long-deployed carrier. The Lincoln has had its time at sea extended from its original May return date to support the war in Iran.

The lack of a U.S. carrier in the Pacific may be short-lived if the Navy deploys another in the next couple of months. But it shows how the open-ended operations with Iran are running some American sailors ragged, analysts say, while the Trump administration further retreats from the Asia-Pacific region and focuses on the Western Hemisphere.

“The administration says that the Pacific is supposed to be the most important behind the Western Hemisphere,” said Greg Poling, director of the Southeast Asia Program at the Center for Strategic and International Studies. Instead, the U.S. is “doing the exact opposite” of its previously expressed goal of pulling out of the Middle East.

American allies in the Pacific are unsettled over the unpredictability of the Trump administration, Poling said, while China “is quite happy with U.S. distraction, with the frustration of U.S. allies and partners.”

China may take advantage

Beijing sees the U.S. military presence in the region as a threat to China’s rise and an obstacle to its ambition to seize Taiwan, the self-governing island it claims as its own. But the United States has argued that the Pacific region is too important economically to lose.

No one expects China to invade Taiwan just because an American aircraft carrier has left the region. But the carrier’s absence gives the Chinese another opportunity to show its strength, said Bryan Clark, a former Navy submariner who is a defense analyst at the Hudson Institute.

“They’re using this as part of the narrative to demonstrate to the Philippines, to Japan, to Indonesia and others that the U.S. is not the big dog in the western Pacific anymore,” Clark said. “They would just prefer that countries in the region decide that China is the bigger power and the U.S. is not able to guarantee their security anymore.”

China conducted naval exercises this week with Indonesia and recently has shown signs of aggression toward Japan and the Philippines, two key U.S. allies that also have territorial disputes with Beijing.

China carried out military drills this month near the Scarborough Shoal in the South China Sea. Both China and the Philippines have claims over the shoal. Last month, a Chinese guided-missile destroyer conducted a live-fire exercise off Japan’s southernmost island of Okinotori.

Adm. Frank Bradley, head of the U.S. Special Operations Command, has been trying to reassure regional allies of Washington’s commitment. He was in Manila on Thursday, telling his Filipino counterparts that U.S. special operations forces are ready to step up joint exercises to strengthen the countries’ alliance. He also is expected to travel to Japan.

Evan Sankey, a policy analyst at the Cato Institute who focuses on U.S. policy toward China, said aircraft carriers provide psychological assurance to U.S. allies. The absence of carriers in the region, he said, “adds to the general sense that the U.S. is distracted by events in the Middle East.”

Trump has relied on aircraft carriers for military actions

Trump has relied heavily on aircraft carriers to support his numerous military operations during his second term. The USS Gerald R. Ford returned home in mid-May after an 11-month deployment, the longest since the Vietnam War, during which it supported the U.S. fight against Iran and the capture of Venezuelan President Nicolás Maduro.

The Ford had experienced a fire in a laundry space that forced the carrier to turn around and return to the Mediterranean Sea for repairs and left hundreds of sailors without places to sleep.

The USS Lincoln has been at sea 268 days as of Saturday, a record deployment without a port visit, as the Ford had. Democratic lawmakers and families of the sailors have been calling for investigations and greater visibility into conditions aboard the ship, which is preparing to return to its home port in San Diego.

Warships and their crews can handle only so much, said Robert Farley, who teaches national security and diplomacy at the University of Kentucky and often writes about aircraft carriers.

“People don’t get enough rest. It’s psychologically exhausting. And R&R is part of keeping the crew healthy,” Farley said. “Sometimes it’s framed as, ‘These people haven’t had a vacation.’ But we are dealing with well-known limits on the capacity of a crew to operate at top efficiency over time. And that just declines.”

Clark, of the Hudson Institute, said the squeeze on the nation’s aircraft carriers stems from the lack of preparation and planning for the Iran war.

“If we were going to mobilize to do this kind of conflict, and we anticipated it might go this long, we might have done some changes to the carrier schedule to make sure more would be available,” Clark said.

Clark said the Navy has 11 aircraft carriers and typically deploys two or three at a time. But it could soon deploy four if the USS Theodore Roosevelt leaves San Diego for the Middle East, allowing the Washington to return to Pacific.

But the massive warships will need maintenance, probably causing a bottleneck at the nation’s only two carrier shipyards.

“We’ll end up with a maintenance debt that needs to be paid for the next few years,” Clark said. “We’ll probably have less carrier presence than we’ve had in the previous years because carriers will be lined up to get into the shipyard.”

Role in modern warfare

Michael Swaine, a senior research fellow in the Quincy Institute’s East Asia Program, questions the future need for aircraft carriers as warfare rapidly changes.

Carriers can be more easily targeted with drones and missiles, particularly by an adversary such as China, Swaine said, while smaller ships and submarines can be as effective in striking targets as the fighter jets that launch off a carrier.

Top Navy officials have indicated a desire to move away from a heavy reliance on carriers. Adm. Daryl Caudle, chief of naval operations, told the Associated Press in February that he wants to convince commanders to use smaller, newer ships and other assets instead of consistently turning to huge aircraft carriers.

Finley and Tang write for the Associated Press.

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MONEY

World markets mixed as oil and gold rise ahead of US inflation data

Aug 12, 2026 Finance Desk

Published on
12/08/2026 – 8:34 GMT+2

Oil prices climbed and world stocks were mixed on Wednesday, with Asian shares mostly higher even as Wall Street slipped further from last week’s record highs, as investors awaited a crucial US inflation reading and watched for any breakthrough in the stalled Iran war talks.

The price of a barrel of Brent crude, the international benchmark, was up 0.9% at $89.67 early on Wednesday. US benchmark crude picked up 0.9% to $83.98.

Gold edged up 0.8% to $4,400.44 an ounce, while silver gained 1% to $65.30 an ounce.

Iran has rejected a comment by US President Donald Trump suggesting that, since Tehran is seeking compensation as part of any talks to end the war, Washington would demand the same.

The United States and Israel attacked Iran in late February, a strike that led to the closure of the Strait of Hormuz and kept much of the world’s oil pent up in the Middle East. Last month alone, Brent’s price swung between $72 and $102 a barrel.

Meanwhile, an attack by Iran-backed Houthi rebels on a vessel in the Bab el-Mandeb strait, off Yemen’s southern tip, has raised concerns that the violence could reignite civil war and further threaten regional shipping routes.

Higher oil prices worsen inflation, and they have pushed the average cost of a gallon of regular petrol in the US to $4.01, according to AAA — up from less than $3.14 a year ago.

That has Wall Street’s attention fixed on Wednesday, when the US government releases its latest monthly inflation reading. Economists expect it to show inflation slipped to 3.4% in July from 3.5% in June.

On Tuesday, the S&P 500 fell 0.3% for a second modest drop since setting its all-time high on Friday. The Dow Jones Industrial Average dipped 184 points, or 0.3%, and the Nasdaq Composite sank 0.6%.

Cooler inflation could ease pressure on the Federal Reserve to raise interest rates to tamp down price increases.

Higher rates could curb inflation, but they would also drag on the wider US economy by making it more expensive for households and businesses to borrow, while undercutting prices for stocks and other investments.

Treasury yields have jumped since the war with Iran began, driven by higher oil prices and inflation worries, sending long-term US mortgage rates to their highest levels in a year.

Tokyo’s Nikkei 225 gained 0.6% to 67,334.94.

In South Korea, the Kospi jumped more than 4% to 6,597.90 on renewed buying of computer chipmakers. Samsung Electronics gained 7.7% and memory chipmaker SK Hynix rose 7.1%.

Taiwan’s Taiex advanced 0.8%.

The Shanghai Composite index added 0.3% to 3,946.51, while Hong Kong’s Hang Seng slipped 1.2% to 25,352.13.

In Australia, the S&P/ASX 200 lost 0.6% to 9,197.00.

In other early Wednesday dealings, the dollar rose to 159.41 yen from 159.30 yen. The euro slipped to $1.1535 from $1.1544.

Additional sources • AP

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MONEY

Oil prices and US bond yields rise as Trump and Iran trade reparations demands

Aug 11, 2026 Finance Desk

Published on
11/08/2026 – 13:25 GMT+2

Crude and US Treasury yields rose together as traders judged that the exchange of compensation demands between the US and Iran has pushed any potential deal further out of reach.

The US president said on Monday he had told his negotiators to seek payment from Iran for Americans killed and wounded in attacks he attributes to Tehran going back decades, including the bombing of the USS Cole in the year 2000 and for Iranians killed in protest crackdowns.

In a follow-up post on Truth Social he expanded on the demand, saying Iran should also pay for “the damages and death caused to the people of Lebanon, Syria, Yemen, and Gaza”.

Tehran, whose representatives had sought compensation for five months of US and Israeli bombardment, says the Strait of Hormuz will stay shut until Washington lifts its naval blockade, ends sanctions and releases frozen Iranian assets.

The front month contract on Brent traded at around $89.8 a barrel on Tuesday and West Texas Intermediate at about $84.2, both up roughly 2.5%.

The US bond market read it the same way, with yields rising across the US curve in a modest global sell-off, the two-year over 4.25%, the ten-year above 4.7% and the thirty-year higher than 5.27%. The yields for all durations are trading at the highs of this year.

Since yields move inversely to prices, the rise means investors are selling government debt as they expect that costlier oil will feed into inflation and strengthen the case for higher interest rates.

Money markets now put roughly even odds on a Federal Reserve rate hike in September, with July inflation data due on Wednesday.

Control claimed, traffic missing

The current stalling of US-Iran negotiations is deliberate as US President Donald Trump appears to have been favouring a slower approach as of late.

The US president told Axios in an interview published on Sunday that the US is “low-keying it,” meaning Washington was only semi-negotiating and content to watch Iran’s inflation and empty coffers do the work, a signal he is prepared to let economic pressure mount rather than order a fresh military campaign.

In the Oval Office on Monday, he struck a triumphant note, claiming the US controls “100%” of the Strait of Hormuz, that only the US Navy holds sway in the region, that American forces have swept it clear of Iranian mines and that the blockade of Iranian ports is impenetrable.

However, shipping data tells another story.

Confirmed crossings have run at 6 to 11 vessels a day recently, against the 130 to 140 daily before the war, according to Kpler data, leaving traffic at a fraction of normal levels throughout the five-month conflict.

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MONEY

Gulf oil producers race to build alternative routes to the Strait of Hormuz

Jul 23, 2026 Finance Desk

Before the war, roughly 15 million barrels of Gulf oil passed through the Strait of Hormuz every day, as roughly a fifth of the world’s traded oil moved through the maritime chokepoint in peacetime.

With the channel still largely closed and prices elevated, at least seven major pipeline projects are now under construction, in planning or under discussion to push supplies out through the Red Sea, the Suez Canal and the Gulf of Oman instead, according to Gulf officials, energy companies and market analysts.

With the Iran war reignited this month, Brent crude is trading again at around $93 a barrel at the time of writing, well above the roughly $72 it fetched after June’s short-lived truce, and the US benchmark WTI has also risen to roughly $90 a barrel.

Depending so heavily on the Strait of Hormuz “is no longer a prudent long-term strategy,” said Victoria Grabenwöger, a senior researcher at the data firm Kpler.

Two escape valves already exist, and both are close to their limits.

Saudi Arabia’s East-West pipeline, built in the 1980s when Tehran threatened shipping during the Iran-Iraq war, carries crude from the Abqaiq complex to Yanbu on the Red Sea, where tankers head south towards the Arabian Sea or north to the Suez Canal.

Meanwhile, the UAE has been channelling more oil to Fujairah, its port on the Gulf of Oman about 145 kilometres south of the Strait of Hormuz.

Together the two links had a spare capacity of some 3.5 to 5.5 million barrels a day before the war, according to the US Energy Information Administration, and both now run close to full representing around 6.5 million barrels a day.

Abu Dhabi’s state oil company is also racing to finish a project it began before the war.

Its $3 billion (€2.6bn), 300-kilometre pipeline to Fujairah, laid alongside an existing line, is designed to lift deliveries by over 1.2 million barrels a day and is roughly half built, according to Kpler, which expects the official early-2027 completion target to slip to mid-2027 because the port itself must be expanded.

Even that timetable, the firm argues, only became conceivable because of the blockade.

Red Sea relief, Red Sea risk

The Red Sea route has vulnerabilities of its own, and this week served as a reminder.

Yemen’s Iran-backed Houthi rebels, who declared a blockade on Saudi-linked shipping in retaliation for the kingdom’s blockade of Yemen and an attack on Sanaa’s airport, said on Thursday they had attacked two Saudi tankers, the Encelia and the Layla, setting both on fire.

Saudi state media reported a blaze at the bow of the Encelia with no casualties, while the UK Maritime Trade Operations centre reported a tanker struck by “an unknown projectile” southwest of Al Shuqaiq.

The Iran-backed group has disrupted the Bab el-Mandeb Strait before, a maritime chokepoint carrying about 12% of world trade, and a Houthi drone strike forced the East-West pipeline itself to shut back in 2019.

Iraq’s $60 billion bet on Washington

Nowhere is the scramble more urgent than in Iraq, which draws about 90% of state revenues from oil exports and has had to cut output because of its dependence on the Strait of Hormuz.

Prime Minister Ali al-Zaidi returned from Washington last week with 48 agreements signed with American firms, spanning energy, healthcare and technology and worth more than $60 billion, according to Reuters, including tie-ups involving ExxonMobil, Shell, Halliburton, KBR and GE Vernova.

The centrepiece is a deal with Syria to rebuild the long-dormant pipeline running from the Kirkuk fields to the Mediterranean port of Baniyas, a project Iraqi state media says Chevron will execute and which the US State Department, welcoming the plan, called “a critical energy corridor” with an initial capacity of 2 million barrels a day.

Baghdad is also weighing a line from Basra to Jordan’s Aqaba.

Washington’s ambassador to Turkey, Tom Barrack, predicted the agreements would render the Strait of Hormuz “an afterthought”.

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POLITICS

House Republicans adopt $95-billion package for Iran war, Trump priorities

Jul 22, 2026 Politics Desk

WASHINGTON — The House adopted a Republican-only $95-billion budget proposal Wednesday, a long-shot effort to fund the Iran war and other White House priorities over objections from Democrats and a few GOP holdouts in a final push before the midterm elections.

House Republicans were divided over the plan, with conservatives wary because there are no offsetting budget cuts. But Speaker Mike Johnson (R-La.) plunged ahead, viewing the go-it-alone process as the best chance to usher President Trump’s priorities through the split Congress, despite skepticism in the Senate.

The vote tally was 216-214, with two Republicans and one independent joining Democrats in opposition.

“Just bullets and bombs to finish the job,” said Rep. Jodey Arrington (R-Texas), the chairman of the Budget Committee.

Democrats argued the money should be spent at home, particularly on efforts to lower costs for Americans.

“Republicans plan to spend tens of billions of dollars on Trump’s failed war in Iran,” Rep. Pete Aguilar (D-Calif.), chairman of the House Democratic caucus, said this week. “Think about what we could spend with these resources instead.”

Congress is at a standstill over the U.S. war against Iran — unable to stop Trump’s military strikes, but not having authorized the use of American military force — and politically torn over having to provide billions of taxpayer dollars to pay for it. Most Americans disapprove of Trump’s Iran strategy, according to a recent AP-NORC poll.

The budget battle comes as Trump attended the dignified transfer of four service members killed in the Middle East, bringing the military death toll to 18. Defense Secretary Pete Hegseth told senators at a fiery hearing this week that the Pentagon is running short of cash, despite a massive $150 billion one-time allotment in last year’s big budget bill.

Even as the House action advanced the resolution, Johnson’s strategy faces uncertainty in the Senate.

The package has $60 billion for the Pentagon and $13 billion for other national security needs, $12 billion for farmers struggling under Trump’s tariffs and $10 billion for voting law changes aligned with the SAVE America Act and proof-of-citizenship requirements that are Trump’s top priority.

Republicans are relying on the budget reconciliation process, which enables approval on a majority vote in Congress, bypassing the Senate’s ability to filibuster the measure to stall or kill it.

Once rare, the reconciliation process is now Johnson’s preferred strategy for pushing proposals through Congress. It’s the way Republicans approved Trump’s big tax breaks and spending cuts bill last summer and funded Homeland Security this year over Democrats’ refusal to fund Trump’s mass deportation agenda.

“No matter how you feel about current events, these funds are necessary to ensure our fighting forces remain ready, our troops are paid and our nation is safe,” said Rep. Mike Rogers of Alabama, the Republican chairman of the Armed Services Committee.

But House Minority Leader Hakeem Jeffries (D-N.Y.) said, “Republicans have literally ripped food from the mouths of hungry children, seniors and veterans to sustain the Trump war machine.”

Among those opposed was Rep. Kevin Kiley of California, a former Republican turned independent who said he felt any war funding bill should be bipartisan. He also wanted to ensure Congress had a “much higher level of involvement” in bringing the war to an end, and he said this proposal did not set that process in motion.

Republicans Rep. Thomas Massie of Kentucky and Rep. Warren Davidson of Ohio also voted against.

This is the third time GOP leaders have relied on reconciliation, dubbing this version 3.0, and it’s a lengthy process. If the House approves the budget resolution, it next goes to the Senate for a round-the-clock session to consider politically tough amendments — something senators would rather avoid in an election year.

The budget resolution sets out instructions for the various committees to draft legislation, which Johnson hopes could be done this summer, with final voting on the package once lawmakers return after the August recess.

Senators pan House’s budget and have their own ideas

Senate Majority Leader John Thune (R-S.D.) has been noncommittal on the House package that also divides his own GOP majority, with some Republican senators preferring more money for the military and others demanding the costs be offset with cuts elsewhere.

“We’ll see,” Thune said this week.

Thune’s focus, at the moment, is avoiding another government shutdown. He wants the Senate to approve a stopgap funding measure, called a continuing resolution, to provide routine government funding before lawmakers leave for the summer break.

If senators are unable to reach agreement on government funding, Thune has said he may hold onto the House’s budget resolution and use it later in the fall as a way to push the resolution through the Senate over objections. He wants to prevent a federal shutdown when current funds expire on Sept. 30.

“It’s a possibility that, if necessary, we could pull that budget resolution passed by the House and use it to fund government,” Thune said. “I hope that’s not necessary.”

Thune has also clashed with Trump over the president’s push for the SAVE America Act, which would require proof of citizenship for voting. The measure, while popular among Trump’s most ardent supporters, does not have enough support among Senate Republicans for passage.

It’s already against the law for noncitizens to vote in federal elections and experts warn the proposed new rules could make it more difficult for eligible Americans to cast ballots.

Mascaro writes for the Associated Press.

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POLITICS

Pentagon seeks billions from Congress as concerns grow over Iran war

Jul 21, 2026 Politics Desk

WASHINGTON — The Trump administration urged Congress on Tuesday to approve roughly $70 billion in emergency defense funding to sustain U.S. military capabilities amid its escalating war against Iran, warning that without it the Pentagon could face “critical shortfalls” disrupting its readiness.

The request comes as the United States and Iran have traded strikes for 10 consecutive days in a renewed conflict, deepening concerns in Washington over an expanding war that could inflame the global economy and trap the president in a quagmire.

The collapse of a ceasefire agreement and the sudden resumption of war have raised alarms within the Pentagon over its ability to protect U.S. forces and assets in the Middle East over a prolonged conflict, with defensive munitions in dangerously short supply, two Defense Department officials told The Times.

Yet the administration is facing bipartisan skepticism from lawmakers over the continuation of a war unpopular with a vast majority of Americans, over which they have had little oversight, and that in recent days has led to deaths of U.S. soldiers.

Those tensions became clear as Defense Secretary Pete Hegseth and Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, testified before the Senate Appropriations Committee to make their case for the tens of billions of dollars and offer their first in-depth public remarks about the war since May.

Hegseth told senators the United States is at a “moment where we cannot afford inaction,” while Caine argued the funding request is coming to Congress “while time is still on our side.”

“It is critical that we stay ahead of our adversaries and we must have the funds before we are out of time,” Caine said.

Hegseth said the war is now expected to cost Americans $37.5 billion, up from a $29-billion estimate from early May. The war, initially projected by President Trump to last four to five weeks, is now entering its fifth month.

With no end in sight, senators from both parties signaled frustrations with the administration’s plans.

Sen. Patty Murray (D-Wash.), the top Democrat on the Appropriations Committee, said Democrats will not support more funding for the war.

“This administration’s refusal to explain what it is doing, or how this war is protecting Americans, its refusal to seek authorization from Congress, and its expectations that Americans will just pay for it all without any explanation or transparency is disrespectful,” she said.

Republican lawmakers also confronted Hegseth and Caine on several fronts.

Sen. John Kennedy (R-La.) told the Pentagon leaders that lawmakers “need some proper answers and some straight talk” about the administration’s plans to ensure Iran does not choke traffic through the Strait of Hormuz.

Asked whether Iran would impose tolls on merchant vessels passing through the vital waterway, Caine said it was a “hypothetical” scenario — a response Kennedy rejected.

Sen. Lisa Murkowski (R-Alaska) also put pressure on Hegseth, as she asked him whether the administration was still taking the position that it needed no authorization from Congress to continue hostilities against Iran.

“Senator, I know there’s a long-standing legal debate on this particular topic, but we certainly at the department share the position with the White House that we have all the necessary authorities at this moment,” Hegseth said.

Murkowski’s remarks come just weeks after Republicans joined Democrats in both the House and Senate in voting to reassert Congress’ constitutional role over the war, underscoring the simmering tensions over Trump’s decision to sideline Congress in the matter.

Hours before the hearing, Trump downplayed concerns over the war’s effect on the midterm elections and further threats in the war, as Houthis, the Iran-backed militia in Yemen, declared a maritime blockade Monday on Saudi Arabia.

“So far, it hasn’t happened. It might happen but we take care of things, if something like that happens,” Trump told reporters in the Oval Office.

Trump maintained that Iranian leaders are “desperately” trying to reach a deal to end the war but said he has no interest in meeting with them until he is convinced the talks will be “meaningful.”

“If we left right now, it would take Iran 20 to 25 years to rebuild. We are not finished at all,” Trump said. “We are not leaving right now.”

A protester holds a sign that says: No war on Iran

Asked if he thought Iran was trying to have an effect on the midterm elections by threatening the Strait of Hormuz, Trump said, “probably.”

“It won’t have any impact on me,” he said. “The election, I can’t think about that having to do with this.”

An agreement reached in June between the United States and Iran proposed an end to a U.S. naval blockade of Iranian ports and to U.S. sanctions on Iranian oil exports in exchange for Tehran allowing unfettered commercial shipping traffic through the Strait of Hormuz. But the agreement fell apart, with Iran firing on commercial vessels and pursuing a toll system for transit that had not existed before the war started.

The deal was supposed to set up a structure for more detailed negotiations on Iran’s nuclear program, a prime target of the U.S. campaign launched in February in partnership with Israel.

Much of Iran’s nuclear infrastructure was degraded in a U.S. strike conducted last year that targeted three major facilities. But the fissile material required to build nuclear weapons remains in the country, under the watch of U.S. satellite surveillance. Iran has vowed to continue pursuing civilian nuclear work.

“How about these people? They’re in this because of nuclear weapons, and they’re trying to possibly reconstitute a site? We’ll hit that site. Any site where they’re even thinking about nuclear — we’ll be hitting it very, very powerfully,” Trump said.

As the war expands, there’s been heightened concern about the infrastructure that civilians in neighboring countries rely on for water and power.

Iranian officials said U.S. strikes hit the Bunji desalination plant on Iran’s southeastern coast, leaving 20 villages — where some 10,000 people reside — without water, according to reports from Iran’s semi-official news agency Tasnim.

Meanwhile, the Kuwaiti government said its power plants and desalination plants were struck by Iran on Monday — the fourth consecutive day of attacks on a key source of drinking water for the small desert nation.

The attacks spurred the Kuwaiti government over the weekend to launch an ad campaign calling on residents to reduce their water and power usage, especially during peak hours between 11 a.m. and 5 p.m.

A concerted campaign targeting desalination plants would be devastating both for Iran and the Persian Gulf nations it has peppered with drones and missiles since the start of the war.

Bahrain, Kuwait, Oman, Qatar, the Emirates and Saudi Arabia are among the world’s eight most water-stressed countries. Israel ranks 9th, while Iran is 14th, according to the Washington, D.C.-based Water Resources Institute.

All of them suffer from “absolute water scarcity,” according to metrics used by the U.N.’s Food and Agriculture organization.

Times staff writer Nabih Bulos in Beirut contributed to this report.

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MONEY

Global oil demand set for first annual drop since the COVID-19 pandemic, IEA says

Jul 10, 2026 Finance Desk

Published on
10/07/2026 – 13:58 GMT+2

Global oil demand will fall by one million barrels a day in 2026, the IEA said on Friday, making it the first annual contraction since 2020, when Covid lockdowns grounded aviation and shuttered industry.

The comparison flatters this year’s decline in one respect, since demand collapsed by around eight million barrels a day at the height of the pandemic, but it underlines how severely the closure of the Strait of Hormuz has damaged the global economy.

The contraction is “highly skewed in both product and regional terms”, the agency noted in its monthly report.

Earlier IEA analysis traced the sharpest losses to Asia’s import-dependent economies and to petrochemical feedstocks such as naphtha and liquefied petroleum gas, whose supply chains run through the Strait of Hormuz.

At the time of writing, the front month contract on Brent crude, the international benchmark, was trading at around $76 a barrel, roughly 6% higher than before the US and Israel launched strikes on Iran in late February, and far below the peaks near $120 reached in March at the height of the conflict.

The US benchmark, WTI, was trading lower at around $72 a barrel.

June’s fragile rebound

Supply improved sharply last month, if from a desperately low base.

Global production jumped by 4.1 million barrels a day in June to 98.8 million as the partial reopening of the Strait of Hormuz allowed Gulf producers to restart shut-in wells, though output was still running 9.4 million barrels a day beneath its pre-war level.

Gulf exports, counting cargoes rerouted around the strait, climbed by 6.5 million barrels a day to 16.1 million. Before the fighting began in late February, the region shipped an average of 24 million barrels.

Global oil inventories grew for the first time since US and Israeli strikes on Iran ignited the conflict, halting months of record drawdowns, although stockpiles in the wealthiest economies shrank further as buyers held back from importing.

The truce unravels

The IEA’s forecasts rest on an assumption now under visible strain which is that a ceasefire holds and the Strait of Hormuz gradually reopens.

On that basis, global supply would contract by 3.7 million barrels a day this year, leaving production 860,000 barrels a day short of demand, before expanding by 7.5 million next year and tipping the market into surplus.

Stronger output elsewhere and weaker demand than expected before the war could still restore a surplus by the end of the year, allowing countries to rebuild depleted reserves, the IEA noted.

This week brought the second and far larger breach of last month’s truce.

After Iranian forces struck three commercial vessels on Monday and Tuesday, US Central Command hit more than 80 targets across Iran, including air defences, coastal radar and over 60 Revolutionary Guard small boats, while Washington revoked the licence permitting Iranian oil exports.

Iran fired drones and missiles at Bahrain and Kuwait, causing no major damage, and US President Donald Trump has since declared the ceasefire over.

Tehran insists the only safe passage is the route it sets in the Strait of Hormuz as traffic fell to 13 tankers on Wednesday, against an average of 33 a day the previous week, according to shipping data from Kpler.

Additional sources • AFP

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MONEY

The key global economic risks to watch in the second half of 2026

Jul 8, 2026 Finance Desk

The second half of the year rests on a delicate chain of dominoes, according to a new briefing from Oxford Economics, and whether the US-Iran peace agreement holds is the factor that determines how the rest fall.

“Its durability will determine whether the global economy gets an energy-driven disinflation tailwind or absorbs a second oil shock,” stated chief global economist Ryan Sweet in the report, calling the deal “the key domino that will determine whether other risks are amplified or dampened”.

The consultancy expects the global economy to accelerate, forecasting annualised growth of 3.1% in the second half against an estimated 1.6% in the first, powered chiefly by cheaper oil feeding through to household incomes, although Sweet puts the odds of reaching a durable deal at “a coin flip”.

If the truce holds, Oxford Economics sees Brent crude averaging in the low $70s per barrel, easing inflation and financial conditions across emerging markets and tech valuations.

If it breaks, the consequences would not stay contained to the oil market.

Early on Wednesday, the US military attacked Iran after it said Tehran struck three ships in the Strait of Hormuz. Iran retaliated with strikes targeting Bahrain and Kuwait. The regional crossfire raised the risk that the interim agreement to halt fighting in the war could break down. However, the exchange of fire followed a pattern of similar attacks during the deal’s shaky ceasefire, and neither country immediately signalled it would step away from the negotiating table.

Oil prices reacted to the attacks by increasing more than 3% by Wednesday morning, with international benchmark Brent trading above $76 a barrel.

“A peace deal breakdown won’t just raise oil prices, it would also increase pressure on AI supply chains in Asia, force central banks to be hawkish, tighten financial conditions, and could shift the outcome of the US midterms and Israeli elections […] the cascade runs fast,” Sweet stated.

A coinflip with a $20 spread

Not everyone shares Oxford Economics’ outlook for oil prices.

Morgan Stanley’s mid-year outlook, published in May, forecast crude climbing back to roughly $90 a barrel by the end of the year, a gap of some $20 compared with Oxford Economics’ forecast that amounts to two different bets on the same peace process.

The World Bank is also more cautious, forecasting Brent crude to average about $94 a barrel this year while warning that global GDP growth will slow to 2.5% in 2026.

Reflecting on how the recent exchange of attacks is testing the fragile truce, Sweet said, “Traffic through the Strait of Hormuz is a good bellwether. The deal committed to fully restoring traffic through the chokepoint within 30 days, making mid-July the first hard deadline,” he explained.

“A sustained return to 75% or more of pre-war traffic by mid-July would increase the odds that the agreement is holding and vice versa,” Sweet concluded.

The other indicator, he says, is whether Iran formally invokes the accord’s Lebanon clause over Israeli strikes, and whether its response comes in military or rhetorical form.

Tariffs, trade and AI

Trade is another risk that could reshape the outlook.

US Section 122 tariffs are due to expire on 24 July, but Washington has already lined up replacement levies under Section 301. Oxford Economics expects the changes to push effective tariff rates higher from late July as the US seeks to maintain monthly tariff revenues of between $25 billion (€21.8bn) and $30 billion (€26.2bn).

Europe is also taking a tougher stance. The European Commission has more than 50 trade-defence investigations open against China, up from 17 a year ago, and plans to unveil a broader economic security strategy by September.

These trade tensions also feed into the AI boom that has powered financial markets this year.

Oxford Economics notes the US AI industry depends heavily on semiconductors and other hardware shipped from Northeast and Southeast Asia, the regions with the most to lose from any further disruption to commodities passing through the Strait of Hormuz.

Meanwhile, the Bank for International Settlements (BIS), the umbrella body for central banks, warned that the AI boom increasingly rests on opaque “circular financing” between chipmakers, cloud giants and artificial intelligence labs, as well as lightly regulated private credit, where lending to the sector has quadrupled in five years.

The BIS’s Asia-Pacific chief, Zhang Tao, cautioned that the sector’s reliance on non-bank funding means an AI downturn could trigger a sharper and faster correction than a traditional banking crisis.

Sweet modelled what such a reversal could look like.

“We have created a so-called tech bust scenario where US technology stocks fall by 25% over the course of a year,” he told Euronews.

According to Sweet, such a shock would cause the US economy to “grind to a halt”, spilling over to technology exporters and investor sentiment worldwide, leaving global growth 1.1 percentage points below Oxford Economics’ baseline next year.

Central banks, ballots and the calendar

The final dominoes are policy and politics.

Oxford Economics expects the major central banks to prove more dovish than financial markets currently anticipate, though they could pivot quickly if traffic through the Strait of Hormuz falters or AI-input prices signal supply stress.

The nearest test is the Federal Reserve’s rate decision under chair Kevin Warsh later this month, coming on the heels of June’s soft jobs report.

Beyond that lie November’s US midterms and Israel’s general election, due by late October, both of which could influence the Middle East peace process. In September, German state elections could also test the coalition behind Germany’s fiscal policy, a key driver of the eurozone economy.

Oxford Economics also flags genuine upside, from stronger AI-driven productivity to an EU economy that weathered the second quarter surprisingly well.

Whether the resilience in Europe is real will show up first in Germany and in credit data, Sweet argues.

“If corporates were absorbing margin compression from the jump in energy prices without cutting investment and drawing down credit lines, that would strengthen the case that underlying momentum in the economy is better than we expected,” he told Euronews, adding that a contraction in eurozone bank lending would push the other way.

It is important to highlight that the typical Oxford Economics forecast miss is nearly a full percentage point, and the range around this assessment in particular is wider than usual.

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POLITICS

Costs of Iran war will linger despite conflict’s end, experts say

Jun 28, 2026 Politics Desk

WASHINGTON — A spectacular economic upturn is on its way, President Trump promised Americans last week, galvanized in part by a deal brokered this month to end his war with Iran.

“Very soon you’ll be at $2.50 a gallon for gasoline,” Trump told a crowd Wednesday night on the National Mall. The next year, he said, “is set for an economic boom the likes of which no nation has ever seen before.”

Economists are skeptical. The effects of the war and other factors driving inflation are likely to stick around for months, experts say, presenting an ongoing challenge to American households — and to Trump’s party as it seeks to retain control of Congress in November’s midterm elections.

The war’s end will not create “a complete snap-back,” said Patrick Harker, professor at the University of Pennsylvania Wharton School and former president of the Federal Reserve Bank of Philadelphia.

“Markets are still cautious, and the infrastructure that’s been destroyed [in the Middle East] is going to take a while to re-create,” Harker said. “Inflation’s going to stay elevated for a while.”

Oil prices were dropping last week — falling to their prewar level Friday — and average gas prices fell by 7 cents per gallon over a week ago. But it will take significant time for oil shipping to ramp up through the Strait of Hormuz, infrastructure to be rebuilt and gas prices to drop, said Michael Negron, senior fellow for economic opportunity at the Center for American Progress.

“I would expect there to be a continued inching downward,” Negron said, but “we’re not going to just go back within weeks to $2.90 per gallon.”

That means the prices of gas and of other essentials aren’t likely to improve dramatically before the midterms, in which affordability has become a driving issue. It could heighten challenges for Republicans, who are defending their majorities in the U.S. House and Senate, as Democrats seek to leverage the issue to gain ground.

Positive messaging about the economy from Trump and other officials “doesn’t really resonate” with Americans who are struggling to make ends meet, said Gina Plata-Nino of the Food Research and Action Center, a national anti-hunger advocacy organization.

“When you’re still making the same amount of money but there’s less for you to be able to pay [for] your basic needs — gas is more expensive, food is more expensive — it doesn’t really add up,” she said.

A fruit stand on West 7th Street sells bananas for $2 per bunch.

Americans question the costs

The Iran war has cost the average American household between $775 and $1,300 so far in fuel and taxpayer costs, according to an analysis by Roger Pielke, a senior fellow at the American Enterprise Institute.

The national average gas price sat at $3.90 on Friday, according to AAA, and California’s average was $5.48 per gallon, down 13 cents from a week earlier.

The increase in oil prices has also affected diesel and fertilizer prices, creating a ripple effect through several sectors, including agriculture. Consumer prices rose 4.1% in May from a year earlier, putting the inflation gauge at a three-year high.

Trump has leaned on a bullish message about the economy, but he has largely dismissed Americans’ worries about affordability, calling it a “fake word” and a “hoax.” Last week, he undermined the first major progress by Congress on the issue, refusing to sign a bipartisan housing affordability bill after both chambers passed it.

President Donald Trump closes his eyes as Dr. Ben Carson, left, speaks during an event in the Oval Office.

Meanwhile, the president’s approval rating on the economy dropped to 33% last week in an NPR/PBS News/Marist Poll — his lowest ever for that poll and 3 points below former President Biden’s worst reading on the question during his term.

Nearly four-fifths of respondents said that gas prices present some sort of strain, with 34% categorizing it as a major strain and 44% calling it a minor strain. Half of respondents who said they were not vacationing this summer said cost was the reason.

And only 23% of Americans say the war was worth the costs, according to a Reuters/Ipsos poll conducted days after the Trump administration announced the framework agreement to end the conflict earlier this month.

“People [are] just feeling like they’re getting left behind,” Harker said. “That’s a very real, palpable feeling when you go out and talk to people. They’re worried.”

The president and his party need a midterms message that “real economic change” is coming, said Brian Reisinger, a rural policy analyst in Wisconsin and a former GOP strategist.

“It has to be substance behind the sell,” Reisinger said.

Senate Majority Leader John Thune (R-SD) speaks to reporters

U.S.-Iran talks on shaky ground

Trump’s boosters have hailed the Iran deal as a victory for the president. And Trump has justified the shock to gas prices as “worth it not to have a nuclear weapon” in Iran, though the war has not achieved the president’s stated aims, which included the elimination of its nuclear program.

“President Trump was clear all along that there would be short-term, temporary disruptions to energy markets, and that oil and gas prices will quickly fall as soon as the Iran situation is resolved,” White House spokesperson Taylor Rogers said Friday.

How rapidly the conflict will be resolved is not yet clear. The U.S.-Iran negotiations were on shaky ground by week’s end, with each country offering diametrically opposed messaging on the status of key points of negotiation.

Analysts say much of the increase in traffic through the strait has been driven by the return of Iranian oil to global markets. Trump agreed in the controversial deal with Iran to lift sanctions on Iranian oil, allowing Tehran to resume trading its most valuable export and breaking with decades of U.S. policy.

The unpredictability of the talks is another factor keeping energy companies, shippers and insurers cautious for now, Negron said.

“Everything is to be negotiated in the next nearly two months,” he said. “It is natural to expect there to be additional risk priced into each barrel of oil, into the insurance people are paying, just because of the volatility and uncertainty of where we are.”

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POLITICS

Pentagon seeks $80 billion from Congress for Iran war

Jun 24, 2026 Politics Desk

WASHINGTON — The Pentagon has told senators it needs roughly $80 billion, mostly to cover the cost of the U.S. war against Iran, adding to what is already a sizable military spending boost being sought by President Trump.

Meanwhile, the Senate for the first time approved a war powers resolution Tuesday seeking to block U.S. military action against Iran, as lawmakers warily watch President Trump’s efforts to resolve a conflict that the administration launched on its own and now needs Congress to fund.

It was the 10th time the Senate has tried to stop the war, and the outcome, on a vote of 50-48, was a stunning turnaround from past efforts. Although the resolution is largely symbolic, and does not fully carry the force of law, it reflects the growing concerns from a number of Republican lawmakers in the House and Senate over the war and the deal Trump struck with Iran to end it. The House approved the resolution earlier this month.

The White House Office of Management and Budget has yet to make a formal request to Congress for more money for the war. But Defense Secretary Pete Hegseth has been making the rounds on Capitol Hill, including Monday evening. A top deputy Defense secretary told senators about the Iran funding request last week, according to two people familiar with the situation but not authorized to discuss it publicly.

The Wall Street Journal first reported on the developments.

The push for billions of dollars in Iran war funding comes at a fraught political moment. Lawmakers are not only skeptical of the deal Trump struck with Iran to bring an end to the war, but also wary of next steps. The White House has requested a remarkable $1.5 trillion for the Pentagon — a nearly 50% increase over the current fiscal year’s funding levels.

Senate Majority Leader John Thune said he’s expecting a supplemental spending request from the administration for the war, and when it arrives, “we’ll work through it and see where the votes are.”

“We need to make sure we’re doing everything we can to replenish, resupply a lot our munitions that have been depleted — not only just with what’s happening with Iran, but prior to that,” said Thune (R-S.D.).

Deputy Defense Secretary Stephen Feinberg spoke to several senators about the proposal in calls last week and he notified congressional committees that the $80-billion request had been sent to the Office of Management and Budget. The Pentagon did not immediately respond to a request for comment.

However, the funding package will almost certainly run into trouble from lawmakers who refuse to support Trump’s decision to go to war and are reluctant to give the Pentagon more money at a time of high costs of living for Americans at home.

“You’re spending families’ hard-earned tax dollars on a war that many strongly oppose,” Democratic Sen. Patty Murray of Washington told Hegseth in a hearing last month.

In addition to the Iran funding, Republicans hope to secure about $1.1 trillion through the regular appropriations process, which typically requires support from both parties for approval. Then, they hope to secure an additional $350 billion through a mostly party-line vote later this summer.

The amount being sought by the Pentagon is far higher than the $29-billion estimate of war costs that Hegseth gave Congress during his testimony last month. The bulk of that amount was related to replacing munitions and repairing equipment but also included operational costs to keep forces deployed. That estimate did not include the cost to repair or rebuild U.S. military sites damaged in the region.

It’s also far lower than the initial $200 billion the Pentagon floated as the costs at the start of the war. An early estimate put the cost of the first week of the war at $11.3 billion.

Sen. Brian Schatz of Hawaii, a member of Democratic party leadership, said he expects the actual price tag could be much higher than the $80 billion being proposed.

Schatz said he hasn’t done any counting of Democrats about whether there is support for an Iran-focused bill, “but I haven’t found anyone who wants to do this.”

But Republican Sen. Jim Banks of Indiana said, “To me it’s less about the war, it’s more about the stockpiles.”

Banks said, “I would sell it to my state as an investment in our defense industrial base, reshoring defense production to Indiana.”

Sen. Jack Reed of Rhode Island, the top Democrat on the Senate Armed Services Committee, said funding for an Iran supplemental can’t be done in isolation. It has to be done after lawmakers from both parties have agreed to a total spending amount for both defense and non-defense programs, “then the rest of this would follow pretty quickly,” Reed said.

And Sen. John Hoeven of North Dakota, a member of the Appropriations subcommittee on Defense, said he has been working with the administration to broaden the package to include funds for disaster aid for California, Hawaii and other states hard hit by fires and weather problems, as well as agricultural aid for farmers.

“I think that’s the kind of combination that could pass,” Hoeven said.

Hegseth declined to answer questions from reporters late Monday as he strode around the Capitol.

But on the issue of the cost of the war, Hegseth responded rhetorically during a Senate hearing last month, asking, “What is the cost of Iran obtaining a nuclear weapon?”

He acknowledged the president’s decision to confront the threat of a nuclear Iran “comes with cost — and we recognize that.”

Freking and Mascaro write for the Associated Press. AP writers Konstantin Toropin and Ben Finley contributed to this report.

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POLITICS

Trump heads to Pennsylvania, keeps focus on himself ahead of midterms

Jun 24, 2026 Politics Desk

MACUNGIE, Pa. — President Trump visited a Mack Trucks facility in battleground Pennsylvania on Tuesday, attempting to shift attention to the U.S. economy in his first major public event outside the nation’s capital since he signed an interim agreement to end the Iran war.

The trip to Macungie, in the Allentown suburbs, came as Trump works to put the conflict — and the higher gasoline prices it caused — in the rearview mirror as the November midterm elections draw closer.

Trump had a private tour of the facility, but his speech often felt more like a reelection rally from two years ago than an effort to promote his second-term accomplishments.

The president listed longstanding political grievances, and made only passing mentions of promoting Republicans ahead of Election Day — while spending more time bragging about the UFC fight he staged on the White House lawn in honor of his own 80th birthday than he did the economy.

At one point, Trump even called UFC fighters Bo Nickal and Anthony Cassar to the stage and mused about whether he could beat either one of them in a wrestling match if he were to “work out for the next couple of months.”

It was Trump’s fifth second-term visit to Pennsylvania, a state whose support in 2016 and 2024 helped him to win the White House. The truck factory is in a district where incumbent Republican Rep. Ryan Mackenzie faces Democratic challenger Bob Brooks in November.

“For more than 100 years, this legendary company has been making trucks right here in eastern Pennsylvania,” Trump said, “building the heavy duty machinery that keeps our economy rolling, our factories moving, and our industries roaring all across the nation.”

His visit coincided with rising prices that could color the verdict voters render on Trump’s stewardship in the fall. About one-third of U.S. adults approved of Trump’s approach to the economy, according to a June Associated Press-NORC Center for Public Affairs Research poll. That’s in line with last month for Trump on the issue.

The Iran war, which began Feb. 28, has also been a politically difficult issue for the president. Most Americans continued to disapprove of his handling of Iran, according to the June AP-NORC poll, which was being fielded as Trump announced a tentative deal with Iran and concluded just before the interim agreement was signed last week. It found that 65% of U.S. adults disapprove of how the president is handling issues with Iran, unchanged from May.

Still, while most Democrats and independents view Trump’s actions negatively, only about 3 in 10 Republicans are unhappy.

This is the kind of district that matters in November elections

Trump addressed a cheering crowd from a stage erected on the factory floor, flanked by two red, white and blue trucks and rows of workers in fluorescent safety vests under a large “American Workers First” banner.

It’s the kind of district that may prove pivotal to Republicans holding narrow control of the House, where a loss could hobble the president’s final two years in office.

Mackenzie, a freshman lawmaker, is looking to hold on to a district Democrats have targeted to flip. Brooks, president of the state firefighters’ union, has support from Democratic Gov. Josh Shapiro, who’s also seeking reelection this year.

Trump urged the crowd to support Mackenzie, saying of his trip, “I’m not doing this for my health.” But he devoted more energy to issues such as the U.S.-Mexico border, opposing transgender rights and decrying “Marxist” judges, while also referencing his administration’s efforts to lower prescription drug prices.

“We gotta win the midterms,” Trump said, in one of the few references he made to the midterms. Later, however, he suggested it wasn’t actually a “political season,” perhaps because he himself won’t be on the ballot in November.

On Iran, Trump suggested that the country would be smart and keep negotiating during the ceasefire. “Otherwise we’ll have to finish the job, which will take about, maybe less than a week,” he said.

An odd moment came when the president offered, “The ideology of the Muslims is slightly different than the ideology of the Catholics. We have the Catholics and the Muslims slightly different.” He didn’t elaborate.

Biden came to the same plant previously

Trump’s predecessor, Democrat Joe Biden, visited the same Mack Trucks facility in 2021 to highlight regulations aimed at promoting manufacturing jobs. Manufacturing employment peaked in 1979 at nearly 19.6 million jobs. It trended downward after the 2001 recession and the 2007-9 Great Recession. The figure now stands at 12.6 million as of May, according to the Bureau of Labor Statistics.

In 2025, the truck facility got hit by market uncertainty, including sweeping tariffs that Trump’s administration imposed, and about 170 people were laid off, according to Mack spokesperson Kimberly Pupillo. She added that by the end of last year, almost 150 people were recalled to work and anyone laid off last year was given the chance to return.

There are about 2,800 workers at Mack, Pupillo said.

At a pizzeria down the road from the truck facility, workers and diners said they’d heard about the president’s visit and recalled Biden’s trip to the plant.

George Carver, a retired elementary school principal, said he wasn’t a fan of Trump’s. “I’m looking for a president who’ll clean up this mess,” he said, meaning improve the economy and better handle the war in Iran and immigration.

“I’m looking for someone who’s gonna tell the truth — that could be a Democrat or Republican,” Carver said.

Trump’s visit underscores Pennsylvania’s status as a crucial swing state.

Trump made a trip to Mount Pocono in December 2025 to road test messages that he’s addressing affordability; in July 2025, he was in Pittsburgh to tout tens of billions of dollars of recent energy and technology investments in the state; in June 2025, he was in West Mifflin to tell steelworkers he was doubling the tariff on steel imports to protect the industry; and in March 2025, he attended the NCAA wrestling championship in Philadelphia.

Denise Green, a retired software trainer, was among a handful of people protesting the visit outside a McDonald’s across the street from the plant.

Green said she was a former Republican who became a Democrat in 2007 because her original party backed policies where “all the money” was going to the rich.

Green said her key issue was Social Security funding, which she said she’ll need but is worried could run out.

“It’s outrageous,” she said.

Catalini and Kim write for the Associated Press.

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POLITICS

Congress wonders as the Iran war draws to a close: Was it worth it?

Jun 21, 2026 Politics Desk

WASHINGTON — The question hangs in the halls at the Capitol: Was it worth it?

Congress, which never authorized the war against Iran yet never fully objected to it, now must grapple with the consequences of President Trump’s nearly four-month conflict: the lives lost, the billions spent and the national security fallout that has reordered the political dynamics in the Middle East.

Ask senators what they think about the deal Trump struck to end the war, and they do not search too far for words.

“Pathetic. Failure. Inevitable conclusion of a combination of never making the case to the American people, flawed strategic vision, lack of grasp of the regional dynamics,” said Delaware Sen. Chris Coons, a Democrat on the Senate Foreign Relations Committee.

“How many ways, can I say, bad, bad, bad?”

Many Republicans too have been critical. Sen. Lisa Murkowski of Alaska said it’s hard to see what leverage the U.S. gained to force Iran to a better negotiation.

“You want to be able to give the benefit of the doubt,” she said. But, she said, “I think we’re in a place where there is a deal that has been signed, but it doesn’t appear to me that it puts us in that much of a different position than prior to the beginning of the war.”

Others in the GOP remain supportive of Trump’s efforts. Sen. Ron Johnson of Wisconsin, a past chairman of the Senate Homeland Security and Governmental Affairs Committee, said that because of the president’s actions, “We are safer today.”

“You can criticize — oh, he didn’t totally win,” Johnson said. “Well, that was always going to be very difficult.”

As Trump moves on to the next phase, it is left to the Congress to pick up the pieces: explaining the war to voters back home, restocking the military arsenal that has run low from bombing runs and trying to ensure the fragile ceasefire holds as the United States seeks to halt Iran’s nuclear ambitions and work toward an uneasy peace.

More money for the Pentagon

Defense Secretary Pete Hegseth made the rounds on Capitol Hill last week as lawmakers consider Pentagon funding as part of the Republican majority’s next big budget package.

The White House has asked for a remarkable $1.5 trillion for the Defense Department this year, on top of the extra money the GOP delivered as part of the Trump’s tax cuts package last year.

Republicans are considering a sizable, $350-billion-plus increase in Defense spending on par with the White House’s budget request that the GOP could pass on its own, through the reconciliation process that allows Senate majority rule over potential objections from Democrats.

Senators, meanwhile, are seeking to set some guardrails on Hegseth with a provision to block a portion of his travel fund until the Pentagon delivers various reports. One such report is on an investigation into the strike on an elementary school in Iran that killed more than 165 people on the first day of the war, most of them children.

Officials have acknowledged that they believe the U.S. was responsible for the strike and say it was based on faulty intelligence.

What’s next in Iran?

Lawmakers are still processing what just happened after Trump swiftly signed a memorandum of understanding with Iran and opened a window of 60-day talks toward ending Tehran’s nuclear program, which got underway Sunday in Switzerland.

“I understand the president’s trying to find a peaceful solution to this,” said Sen. Mike Rounds (R-S.D.), who serves on the Senate Armed Services and Intelligence committees. “I commend him for that. But we’ve got a lot of questions.”

Senators are particularly concerned about the tentative deal’s provision for a potential $300-billion fund for the “reconstruction and economic development” of Iran.

To many skeptical Republicans, that money sounds similar to the “planeloads of cash” narrative they used against the Obama-era Iran nuclear deal, which offered a slim fraction of that amount, some $1.7 billion overall. To this day, Trump tells an exaggerated story of how that payment to Iran, for U.S. military equipment it never received, was made.

“The only concerns I have are the money and the conditions,” said Sen. Thom Tillis (R-N.C.).

“If we send a trainload, a shipload, it’s gonna age as well as that,” he said, referring to the Obama-era issue.

What was gained and lost

Over and again Congress tried and failed to exert its authority under the war powers act to halt the U.S. military action in Iran.

The House ultimately passed a war powers resolution that sought to force an end to the war after a small number of Republicans joined the Democratic measure last month. The Senate has voted nine times, including last week, but failed to reach the majority needed.

At the same time, Congress did not affirmatively authorize the war with a use-of-force resolution, as has been done in certain other conflicts, including the Iraq war.

“I’m glad that the conflict has finally ended and hope the ceasefire holds,” Sen. Jeanne Shaheen of New Hampshire, the top Democrat on the Senate Foreign Relations Committee, said in a statement.

But she said the country must be clear-eyed about what has come about. Not one of the president’s objectives has been achieved, she said, and Iran won significant concessions.

“The American people are paying the price with higher costs in every aspect of life and tens of billions in tax dollars spent,” she said.

Mascaro writes for the Associated Press. AP writer Mary Clare Jalonick contributed to this report.

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MONEY

Oil sinks further as Trump and Pezeshkian sign deal to end Iran war

Jun 18, 2026 Finance Desk

Oil fell sharply in early trading after US President Donald Trump and his Iranian counterpart, Masoud Pezeshkian, put their names to an initial accord to halt hostilities, a move expected to restore the flow of crude through the Strait of Hormuz, one of the world’s most important shipping arteries.

At the time of writing on Thursday morning, the front-month contract on WTI, the US benchmark, was down by 2.3% to $75 a barrel, while Brent crude, the international gauge, traded 2% lower at around $78 a barrel.

Both remain above the roughly $70 level seen before the conflict, but they have fallen well below the peaks of more than $100 reached only weeks ago.

The deal sets a 60-day window for the two sides to negotiate a final settlement on Iran’s nuclear programme, with Tehran agreeing in the interim to dilute its stockpile of highly enriched uranium.

Crucially for energy markets, it lifts US-backed sanctions, allowing Iran to resume selling its oil freely, and clears the way for tankers to move crude out of the Persian Gulf once more.

US President Donald Trump has said the strait will be fully open by Friday and operate without transit charges, a pledge that has encouraged traders to bet on easing supply pressures.

After signing the memorandum of understanding, Trump stated, “oil down, stocks up”, with hand motions.

An oil market still running on depleted reserves

The optimism arrives against a strained backdrop.

In its June Oil Market Report, the International Energy Agency said strategic oil reserves across advanced economies had slipped to their lowest level since 1990, with government stockpiles in OECD countries down by 163 million barrels since the conflict began as emergency releases accelerated.

The agency also trimmed its outlook for global demand, which it now expects to contract through 2026 as elevated fuel prices and supply disruptions bite, before recovering next year.

It cautioned that any rebound in supply may be gradual, citing the slow clearance of mines and continued disruption to shipping routes even with the interim deal in place.

Flows through the Strait of Hormuz had already begun to recover, rising from a May low to around 12 million barrels a day in early June.

Stocks mixed after the Fed signals possible hikes

Equities offered a patchier picture following Wednesday’s losses on Wall Street, where the S&P 500 fell 1.2% after fresh Fed projections showed nearly half of policymakers expect at least one interest rate hike this year.

The Dow Jones Industrial Average shed 1%, and the Nasdaq Composite slid 1.3%.

In his first press conference as Fed chair, Kevin Warsh declined to forecast where rates would end the year and signalled a rethink of how the central bank communicates, dropping the customary hints about future policy direction from its statement.

US President Donald Trump, who had long pressed Warsh’s predecessor to cut rates, was unusually relaxed about the outcome.

“It’s all right. Whatever,” Trump told reporters in France as he attended the G7 meeting.

Asked about the prospect of a hike, he said it was “hard to believe” but that, with Warsh now in place, he was “guided by what he wants.”

US stock futures pointed higher early on Thursday, with contracts on the S&P 500 up 0.9% and on the Nasdaq Composite around 1.4% higher.

In Asia, Tokyo’s Nikkei 225 and South Korea’s Kospi both jumped 2.3%, helped by hopes for an end to the Iran war and strong demand for technology shares.

European trading was more subdued, with the Euro Stoxx 50 rising 1% but the broader pan-European Stoxx 600 trading flat.

The UK’s FTSE 100, Germany’s DAX 30, Italy’s FTSE MIB, Spain’s IBEX 35, the Netherlands’ AEX, and Switzerland’s CH20 all traded between 0.4% and 0.8% higher than their Wednesday close.

France’s CAC 40 led the pack and jumped roughly 1.3%.

Additional sources • AP

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POLITICS

Trump signals swift return of sanctions on Russian oil as G7 refocuses on Ukraine

Jun 16, 2026 Politics Desk

EVIAN-LES-BAINS, France — The United States could soon reimpose sanctions on Russian oil shipments after President Trump and fellow leaders at the Group of Seven summit of major industrialized democracies moved Tuesday to put the war in Ukraine back on top of their agenda, more than four years after Russia launched its full-scale invasion.

The Iran war has recently overshadowed Ukraine, but Trump said he wants to shift the focus following the announcement of an agreement to end the 3½-month-old conflict in the Gulf.

Trump said Iran will soon be “back in the rearview mirror.”

Trump said the sanctions on Russia that were eased during the Iran war to help lower oil prices can go back in place as more oil moves through the Strait of Hormuz.

“Soon we’ll be able to do that because the oil is now flowing,” Trump told reporters in Evian, the French spa town close to the Swiss border that is hosting the summit. “We’re in a position to do that soon.”

The U.S. in March temporarily eased some sanctions on some Russian oil shipments as crude prices sharply increased. The waiver has been extended.

Zelensky joins G7 leaders for talks

Ukrainian President Volodymyr Zelensky joined the G7 leaders for talks on the war in his country. They wrapped quickly, after just 75 minutes.

Zelensky said Ukraine is serious about peace while Russia toys with world leaders. “The entire ‘Seven’ supports Ukraine unanimously today,” he said.

Zelensky added that G7 leaders supported Ukraine’s need for more Patriot missiles and discussed how to increase production by licensing production. Patriot missiles are able to counter Russian ballistic missile attacks on Ukraine’s power grid and cities.

As the U.S. under Trump has cut back aid to Ukraine, France and its European allies are now the biggest providers of military and financial support to Kyiv.

Trump downplayed the impact of the Russia-Ukraine war on the U.S. but lamented the death toll.

“The whole thing is ridiculous,” Trump said. “So, yeah, I’m going to do whatever I can.”

Meanwhile, the U.K. announced new sanctions targeting the “shadow fleet ” Russia uses to ship oil and gas, and the finance networks used by Moscow to evade Western sanctions. The ships targeted include several recently purchased by Russia to transport liquefied natural gas from its sanctioned Arctic LNG 2 project.

Russia fires again at Ukraine’s biggest cities

Hours before the summit began Monday, Russia fired hundreds of drones and dozens of missiles at Ukraine’s biggest cities in a barrage that killed 11 people and set fire to a religious landmark.

The attacks came after Zelensky and Putin spoke separately by phone with Trump on Sunday, the U.S. leader’s 80th birthday.

While campaigning in 2024 for a return to the White House, Trump claimed he could end the Russia-Ukraine war within 24 hours of taking office. However, negotiations have faltered and Trump has acknowledged it has proved much harder than he thought.

Ukraine on Monday officially started European Union membership negotiations, launching a process that will require its government to commit to years of political reforms even as it fights the Russian invasion.

Ukraine sees EU membership as a security guarantee for a stable future once the war ends. Its best guarantee would be membership in the NATO military alliance, but the Trump administration insists that cannot happen, and others are wary of Ukraine joining while the war continues.

Trump says he may send Iran deal to Congress

The U.S.-Iran ceasefire deal got plenty of attention at Tuesday’s sessions, with Trump voicing his openness to sending the deal to Congress for review. The text has not been made public.

“I like the idea, send it to Congress please,” Trump said at the start of a meeting with United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan on the summit’s sidelines. He added, “I mean who wouldn’t approve it?”

Republicans on Capitol Hill say they want Trump to provide more information about the agreement, with some expressing skepticism that the deal can deter Iran from pursuing a nuclear weapon.

Trump also met with the Emir of Qatar, Sheikh Tamim bin Hamad al-Thani. The Gulf nations are not part of the G7, but French President Emmanuel Macron extended invitations to their leaders at a fraught moment for their region.

Trump also expressed frustration over Israel’s continued hostilities with the Iranian-backed militia Hezbollah in Lebanon, telling reporters he’s “not happy with the way Israel has handled themselves with Lebanon and with Hezbollah.”

Trump said Israeli operations to target Hezbollah “should have been able to deal with them faster,” adding: “It just goes on forever. And when that happens, it throws a negative light on the big deal. And that’s the deal with Iran.”

Macron said France and other Western partners are “ready to take action very quickly” to help reopen the Strait of Hormuz peacefully to ease the economic impact of rising oil prices. France and the U.K. have championed a mission to restore maritime security there as soon as conditions allow.

The G7 comprises France, the United States, Canada, Germany, Italy, Japan and the United Kingdom. Other guest nations, including Brazil, India, Kenya and South Korea, were invited to participate in some discussions.

Superville, Corbet and Madhani write for the Associated Press. Madhani reported from Geneva. AP writers Jill Lawless and Samuel Petrequin in London, Collin Binkley in Washington and Illia Novikov in Kyiv contributed to this report.

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Macron once had a knack for managing Trump. The G7 may test it

Jun 12, 2026 Politics Desk

WASHINGTON — The relationship between President Trump and French President Emmanuel Macron started simply enough, with a handshake, nearly a decade ago.

But even then, there were signs of strain in their relationship — tensions that could be on full display during next week’s G7 summit in France.

Back in 2017, Trump was a brash businessman just elected to America’s most powerful office, and Macron was an upstart politician who had won his race in a landslide. At a NATO summit in Brussels, they clinched hands far longer than most people do when they meet for the first time. Neither seemed to want to be the first to break a grip so tight that it exposed white knuckles.

Nevertheless, a friendship was born. And early on, Macron seemed to be the one European leader with a knack for managing his mercurial, three-decades-older counterpart.

Macron invited the Republican president to join him for Bastille Day celebrations in July 2017, including an Eiffel Tower dinner date with their wives. Trump reciprocated by making Macron the guest of honor the following year at his first White House state dinner, the highest diplomatic honor the United States can extend to an ally.

But by the end of Trump’s first term, the bromance had faded. And in his second term, the leaders now openly trade barbs, disagreeing over tariffs, Ukraine and the Iran war. That dynamic will be scrutinized next week when Trump and the leaders of Britain, Canada, Germany, Italy and Japan join Macron in the French lakeside resort of Evian-les-Bains for the G7 summit.

Trump’s long-simmering frustrations with US allies could be on display

There could be awkward moments between Trump and Macron, as well as among Trump and the other G7 leaders he’s criticized for not joining him in Iran.

“But I also think European leaders are quite professionals when it comes to politics, and in some ways diplomacy at this point, and will maybe see it as an opportunity as well,” Max Bergmann, director of the Europe, Russia, and Eurasia Program at the Center for Strategic and International Studies, said in an interview.

Kurt Volker, a former U.S. ambassador to NATO, said the Trump-Macron relationship has been further complicated by the Iran war and Trump’s complaints “that Europeans weren’t helping, when they hadn’t been consulted, and their interests are very much affected by this.”

“I think that was a negative for Macron,” Volker said.

Trump joined Israel in a war against Iran over its nuclear program back in February without consulting other U.S. allies. He then complained publicly when European countries spurned his requests for their help.

Waning support for Ukraine in its war against Russia from the Trump administration “has really irritated the French,” Volker said. “They feel this is important and we’re not paying attention to it.” Macron invited Ukrainian President Volodymyr Zelenskyy to join the leaders’ discussions on Tuesday.

Macron is the G7 member who has dealt with Trump the longest

In Trump’s first term, Macron appeared confident that he could persuade and influence the U.S. leader, but the relationship increasingly has come to be defined by their disagreements.

Macron now says he is “careful” about Trump’s statements, suggesting he no longer takes them at face value. Their relationship remains cordial as each calls the other “my friend.” But the relationship has also experienced some ups and downs.

As president-elect, Trump attended the reopening of Notre Dame Cathedral in Paris in late 2024 at Macron’s invitation. After Trump began his second term in 2025, Macron was an early Oval Office visitor. The president wrote on social media that he was “delighted” to welcome Macron back to the White House and said the relationship with France has been “very special.”

But at one point during the meeting, the French president publicly corrected Trump after he wrongly suggested that Europe would recover the money it had provided to support Ukraine. With a smile, Macron touched Trump’s forearm and replied, “We provided real money.”

Macron also condemned as “brutal and unfounded” new tariffs that Trump slapped on steel, aluminum and a broader range of European imports in early 2025.

But there have also been some lighter moments mixed with the tensions.

A documentary aired last year on French television showed Macron telling Trump during a phone call that Zelenskyy had agreed to a U.S.-backed ceasefire proposal. Trump replied, “You’re the greatest.”

Macron has often said he can reach Trump directly whenever he needs to — and proved his point during last year’s U.N. General Assembly session in New York. After police officers blocked the French leader from crossing a street because traffic had been halted for Trump’s motorcade, Macron whipped out his cellphone and dialed the U.S. president.

“How are you?” Macron said. “Guess what? I’m waiting in the street because everything is frozen for you!”

‘This is not a show,’ Macron has said about Trump’s NATO ambiguity

Macron has argued that Trump’s “America first” policies bolstered his case for a stronger European defense capability that would lessen reliance on the United States.

In April of this year, as Trump sent mixed signals about Washington’s commitment to NATO after the start of the war in Iran, Macron delivered some of his sharpest criticism of the U.S. president.

“There is too much talk, and it’s going in all directions,” Macron said. “We all need stability, calm and a return to peace. This is not a show.”

“You have to be serious, and when you want to be serious, you don’t say the opposite every day of what you said the day before,” he said.

Trump, while mimicking a French accent, recently has taken to reenacting a conversation he says he had with Macron over drug prices and tariffs. Trump also poked Macron by telling a private luncheon in April that his wife, Brigitte Macron, treats her husband badly. The comments were in a video the White House had posted on its YouTube channel before blocking access.

Macron didn’t see any humor in Trump’s comments. “The remarks I heard were neither elegant nor appropriate,” he said. “They do not deserve a response.”

Still, Macron has tried to accommodate Trump’s schedule to ensure his presence at the summit in Evian-les-Bains, knowing that he has a record of leaving such gatherings early.

Macron originally had set Sunday, which is Trump’s 80th birthday, as the opening day of the summit, but he pushed the start back a day because Trump is celebrating the occasion with a UFC show staged on the White House grounds.

Superville and Corbet write for the Associated Press. Corbet reported from Paris.

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Fresh strikes, surging inflation signal new phase of Iran war

Jun 10, 2026 Politics Desk

WASHINGTON — U.S. retaliatory strikes against Iran will continue after its forces shot down an American helicopter, President Trump said Wednesday, accusing the Islamic Republic of stringing him along over months of negotiations to end the war.

The prospect of a renewed U.S. air campaign cast fresh doubt on the viability of a ceasefire between the United States and Iran that has largely held since April, when the two sides reached a tenuous truce, pausing weeks of fighting. Trump’s decision to resume attacks comes after an exchange of fire between Israel and Iran threatened to spiral into open war over the weekend.

The administration has presented Trump with options to expand U.S. targets beyond the immediate area around the Strait of Hormuz to Iranian power plants across the country, an escalation that will open the president up to accusations he is targeting civilian infrastructure, according to a defense official familiar with the matter.

Speaking with reporters in the Oval Office, Trump encouraged the Iranians to accept a framework agreement negotiated between the two sides, and suggested that additional military action might compel Tehran to accept a final truce.

“We hit them hard yesterday, and we’re gonna hit ‘em again hard today,” Trump said. “And we’ll see what happens with the deal. We were really close to a deal, but they keep tapping us along — they keep playing us for suckers.”

The president’s remarks came a few hours after Trump posted on his social media website that Iran “will have to pay the price” for taking too long in negotiating a peace deal.

When pressed by reporters to elaborate, Trump said he meant that bombing would resume but declined to say whether that would include strikes on Iranian power plants and bridges, a threat he has repeatedly issued during the war.

The ongoing conflict, which is in its fourth month, has left a mark on the global and domestic economy. The U.S. Bureau of Labor Statistics reported Wednesday that inflation accelerated in May, driven by a surge in energy prices linked to the war with Iran.

The consumer price index rose 0.5% on a seasonally adjusted basis — the largest monthly increase in three years — pushing the annual inflation rate to 4.2%.

Asked whether he was concerned about the inflation numbers, Trump told reporters that the “numbers were great.”

“You know what I really love? I love the inflation. You know why? Because as soon as this war is over…,” Trump said, without finishing the thought.

The remark prompted near instantaneous news releases from Democratic operatives, as well as the party war room, which sent out a statement accusing Trump of mishandling a reckless war that has devastated the economy in the process.

“Donald Trump’s disastrous economic agenda and deadly and costly war with Iran have made life unbearable for millions of Americans,” Kendall Witmer, the Democratic National Committee’s rapid response director, said in a statement.

“Working families are shouldering skyrocketing costs for basic goods, with their wages being eaten up by Trump’s soaring inflation,” she added. “On the campaign trail, Trump promised to ‘defeat inflation,’ and to lower costs on ‘Day One,’ but two years later, Trump can’t get a handle on his war of choice with Iran as he tanks the economy back home.”

Trump then told reporters about a secret military mission to ensure safe passage for oil tankers through the Strait of Hormuz, one of the world’s most important commercial waterways. He said the operation had secured the passage of more than 100 million barrels of oil through the strait since it began.

“We took out, the other night, 22 ships late at night with no lights because they don’t have any radar because we blasted the crap out of it,” Trump said.

A couple of hours later, Trump wrote in another post that the military operation had been “wildly successful,” and that it proved the United States — not Iran — was in control of the Strait of Hormuz.

“Their military is defeated, and their economy is lost,” he wrote. “It’s over for Iran!”

Over months of diplomacy with Iran, Trump has sought to avoid a return to conflict, often seeking de-escalation when fighting has flared — and repeatedly pressuring Israel to minimize its attacks in Lebanon, where it continues to battle the militant group Hezbollah, a proxy of Iran.

Israeli strikes continued Wednesday, according to local news reports, while Hezbollah said it carried out attacks on Israeli troops stationed in southern Lebanon.

Speaking to journalists in the Oval Office, the president implied he was losing patience with Iranian tactics at the negotiating table.

“I gave them a break, at the request of Pakistan,” he said. “They still are working on trying them to do what’s right. But we want a deal that’s meaningful. We want a deal that works.”

“It was just tap, tap, tap,” the president added. “I don’t know what they’re doing.”

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