iran war

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

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.

a woman pumps gas at a gas station

Yesenia De La Torre, 24, from Culver City pumps gas at the Chevron gas station on Sawtelle Boulevard and Culver Boulevard on June 15. Despite an agreement announced Sunday to end the Iran war and open the Strait of Hormuz, high oil, gasoline prices and energy supply problems won’t be solved overnight.

(Kayla Bartkowski / Los Angeles Times)

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.

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

(Carlin Stiehl / For The Times)

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.

President Donald Trump closes his eyes as Dr. Ben Carson, left, speaks during an event with the White House Religious Liberty Commission in the Oval Office on Friday.

(Anna Moneymaker / Getty Images)

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

Senate Majority Leader John Thune (R-S.D.) speaks to reporters after the weekly Senate policy luncheons at the U.S. Capitol on Tuesday in Washington, D.C. Thune spoke on a meeting with President Trump on the Iran deal.

(Kevin Dietsch / Getty Images)

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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Pentagon seeks $80 billion from Congress for Iran war

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

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

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

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.


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

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

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

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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Iran’s soccer team arrives in Mexico for training ahead of World Cup matches in L.A.

Iran’s soccer team arrived in Mexico on Sunday morning for training ahead of the World Cup, before its first two group matches at SoFi Stadium in Inglewood later this month.

Ehsan Hajsafi was the first player to exit the plane with markings for German charter airline USC, which arrived at about 5:05 a.m. He led the team, dressed in blue blazers over white T-shirts, through a brief security check with Mexican officials and dogs before boarding a bus.

The bus stopped briefly at the entrance to the Tijuana airport, where around 20 or so Iran fans waved flags.

The team’s participation in the World Cup, jointly hosted by the United States, Mexico and Canada, has been complicated by the Iran war. Problems with processing visas earlier led Iran to move its training base from Tucson to Tijuana.

The team has been training in the Turkish city of Antalya. It flew directly to Mexico on a private jet from the Mediterranean city’s airport.

Some members of their entourage were reportedly still without U.S. visas, according to Iranian state television Saturday. Those include the Iranian Football Federation’s secretary-general, Hedayat Mombeini, and its vice president, Mehdi Mohammad Nabi.

Iran plays its first two games at SoFi Stadium in Inglewood against New Zealand on June 15 and Belgium on June 21, then heads to Seattle to face Egypt on June 26. Iran and the U.S. could meet in the Round of 32 on July 3 in Arlington, Texas, if both teams finish second in their groups.

In March, President Trump discouraged Iran from participating in the tournament, saying he didn’t think it was “appropriate” and raising concerns over players’ “life and safety.” A day later, Iran’s national team countered, saying “no one can exclude” it from playing.

Iran finalized its team on Monday, including 17 home-based players whose clubs haven’t played since February because of the war. Star forward Sardar Azmoun was dropped in March, reportedly because of a social media post that angered Iranian authorities during the war.

Iran’s sports minister said in March that it would “not be possible” for the team to participate in the World Cup, but the Islamic Republic’s soccer federation said in May that it was moving ahead with a team. The federation had insisted that all players and staff be granted visas, including those who had military service in the Islamic Revolutionary Guard Corps.

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Iran war’s effects on costs jeopardize travel to tourism-dependent countries in Asia

With summer around the corner, soaring prices and other complications from the war with Iran are straining the tourism-dependent economies of Cambodia, Thailand, Vietnam and other countries in Southeast Asia.

The region’s peak tourist summer season is at risk as elevated jet fuel costs coupled with ceasefire uncertainties prompt flight cancellations and higher ticket prices.

Tourism in Asia has yet to fully recover from the COVID-19 pandemic. Now, many countries are coping with the war’s repercussions on global energy supplies and prices, which hit Asia first and hardest. Some families are pulling back on travel as gas and groceries get more expensive worldwide. Crowds have thinned at some places once synonymous with travel.

“With gasoline prices rising and tourism declining, how can we make money?” asked Siv Pech, a 58-year-old rickshaw driver in Siem Reap, home to Cambodia’s centuries-old Angkor Wat temple complex.

Tourism is an economic lifeline for many developing nations. It contributes nearly 13% of gross domestic product in Thailand and nearly 9% in Vietnam, and it underpins millions of jobs in Cambodia. Travelers bring in much-needed foreign currency for import-dependent economies such as the Philippines and Nepal.

Those tourism dollars are more crucial than ever as war-driven spikes in oil prices push up the cost of fuel imports, especially for parts of the world that relied on the Strait of Hormuz off Iran’s coast as a conduit for much of their oil and gas. Iran essentially shut down the strait to commercial traffic after the U.S. and Israel launched the war more than three months ago.

The war will determine which tourism businesses can survive long enough to benefit from the eventual return of travelers, said Jitsai Santaputra of the Lantau Group, an energy industry consulting firm. “This, happening within five years of each other, first the pandemic and now the war, is horrible for the tourism industry,” she said.

Travel costs

Jet fuel shortages and surging costs have led Vietnam Airlines, the Malaysia-based AirAsia group, Hong Kong’s Cathay Pacific and other carriers to cut flights or otherwise adjust schedules.

European carriers face a squeeze for similar reasons.

Airspace closures across the Persian Gulf early in the war and the intermittent closures of certain Persian Gulf airports cut off key layover locations for Asia-bound flights or forced commercial airplanes to take longer, costlier routes.

Airfares have jumped, with airlines such as Air India and Cathay Pacific implementing sharp increases in fuel surcharges.

Cathay Pacific’s fuel surcharge for medium-haul flights has jumped to $80, up from $34 before the war. For long-haul flights, it increased to $174, up from $73.

“Jet fuel prices remain at highly elevated levels” and have increased cost pressures, said Lavinia Lau, Cathay’s chief customer and commercial officer. Travelers are booking closer to their departure dates, she said, indicating growing unease.

Sandra Awodele, a freelance travel writer in the Washington area, often plans year-round international trips and hoped this summer would be when she finally crossed off Asia from her bucket list.

In March, she began planning a long-awaited vacation to Thailand, envisioning one to two weeks of exploring. Her plans hit a wall when she checked airfares.

“I looked at flight options and that’s where it ended,” Awodele said.

On the ground, rising fuel costs in tourism-dependent Southeast Asia are squeezing taxi and ride-hailing app drivers.

Pech, the Cambodian rickshaw driver, said he used to earn up to $20 a day toting tourists around Siem Reap. That’s plummeted to about $5 a day.

His gas bill eats half of that. The rest goes to food. “Some days, I don’t earn even a cent,” he said.

Slow summer expected

Tourism is vital for many regional economies, accounting for nearly 11% of economic activity in the Assn. of Southeast Asian Nations in 2019, according to the World Travel and Tourism Council.

An analysis by Moody’s Analytics estimated effects from the war would probably reduce economic growth across the Asia-Pacific region by 0.1 to 0.4 percentage points in 2026.

“The conflict will weigh on growth mainly through higher production costs and consumer prices, along with weaker external demand from trade and tourism,” said Albert Park, chief economist at the Asia Development Bank.

Higher airfares and weaker travel confidence can quickly spill over into household livelihoods and public revenues in economies where visitor arrivals are a major source of jobs, income and foreign exchange, according to a recent report by the United Nations Development Program.

Travel is often the first expense people cut when the economy worsens, said Le Tuyet Lan, who runs bed-and-breakfast properties in Vietnam’s Hanoi and Ho Chi Minh City.

In times of crisis, luxury travelers tend to shift toward mid-range options, mid-range travelers move toward budget hotels, and the cheapest tier of the market becomes the most vulnerable.

“This will disrupt the whole industry,” she said.

‘We are feeling it’

Tourism in Thailand is “a big industry and we are feeling it,” said Santaputra with the Lantau Group in Bangkok, one of Southeast Asia’s most visited cities.

The number of visitors to Thailand fell 7% year-on-year in April, while European arrivals fell almost 16% and Middle Eastern arrivals sank 57%, according to the Ministry of Tourism and Sports.

In neighboring Cambodia, Sokha Sambo, owner of the popular Sambo Khmer & Thai Restaurant in Siem Reap, said the rising price of liquefied petroleum gas used for cooking has strained her budget, hindering her ability to dish out her signature green curries.

“I’m worried about gas and goods inflation. It makes the business less profitable and difficult to cover employees’ salaries,” said Sambo, who has 14 staff members.

In the first four months of 2026, the number of recorded international and domestic visitors to Siem Reap dropped by 37.5% compared with the same period last year, according to the province’s tourism department.

“This has greatly affected all of us,” Sambo said.

Delgado and Chan write for the Associated Press and reported from Bangkok and Hong Kong, respectively. AP writers Aniruddha Ghosal in Hanoi and Rio Yamat in Las Vegas and freelance journalist Sinorn Thang in Phnom Penh, Cambodia, contributed to this report.

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Oil steadies at $100 and markets stay volatile as US-Iran talks stall

Brent crude edged 2.5% higher on Tuesday and seems to have steadied around $100 per barrel at the time of writing, as US-Iran negotiations stall.


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On the other hand, WTI dropped over 4% and is trading around $92.6 per barrel.

Overall, oil prices were declining since last Wednesday as the framework for a peace deal, or at least a longer and more encompassing ceasefire, between the US and Iran was seemingly on the verge of being agreed.

However, Iran accused the US of breaching the current ceasefire after Washington carried out what it described as defensive strikes in the southern part of the country.

Iran’s foreign ministry stated that the US attacks in the Hormozgan province, where Iranian media reported hearing explosions early Tuesday, amounted to a “serious violation” of the fragile ceasefire that has been in effect for almost seven weeks.

Meanwhile, US Secretary of State Marco Rubio said negotiations aimed at ending the conflict could require “a few days” to reach an agreement.

On Monday, US President Donald Trump also reiterated nuclear demands in a social media post, as tensions continue to surround the fundamental aspects of a possible agreement.

Investors appear to have mixed reactions to the developments with some markets seeming to price in a decrease in the probability that a deal is imminent.

In Europe, the Euro Stoxx 50 has fallen more than 0.7% while the broader pan-European Stoxx 600 is trading around 1% lower as we approach the close of Tuesday’s session.

The UK’s FTSE 100, Germany’s DAX 30, France’s CAC 40, Italy’s FTSE MIB, the Netherlands’ AEX and Switzerland’s CH20 have all dropped between 0.1% and 0.7%.

Over in Asia, Japan’s Nikkei 225 and Taiwan’s TAIEX closed flat, but South Korea’s KOSPI jumped 2.5% primarily driven by a continuous demand for AI-related equities.

However, US markets appear completely decoupled from other indices and the broader situation. Not only have WTI prices continued to fall on Tuesday but the S&P 500 also opened 0.6% higher.

Latest on the Strait of Hormuz

Both the US and Iran had signalled headway toward a memorandum of understanding that could end the conflict and resume maritime traffic through the blocked Strait of Hormuz, while allowing negotiators a 60-day window to tackle more complicated matters such as Iran’s nuclear activities and supplies.

In his latest remarks, US Secretary of State Marco Rubio stated that the Strait of Hormuz must remain accessible “one way or the other” as traffic through the chokepoint has dropped sharply, with only a few dozen ships currently using the route each day, compared with the usual 125 to 140 vessels.

Iran has continued to permit limited shipping, prioritising vessels connected to allied or friendly nations and arranging passage through state-to-state agreements.

Continuous reports of attacks in the Strait of Hormuz underscore how far from the normalisation of energy flows and other supplies the global economy still is.

On Tuesday, the United Kingdom Maritime Trade Operations (UKMTO) reported that a tanker experienced an external blast near the waterline on its port side.

According to the agency, the vessel was located about 60 nautical miles from Muscat, the capital of Oman.

UKMTO said the tanker and all crew members were unharmed, although a quantity of bunker fuel spilled into the sea.

This is the most recent reported incident near the Strait of Hormuz at the time of writing.

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The GOP’s YOLO caucus is small but growing. That may spell trouble for Trump’s congressional agenda

The YOLO caucus is in session.

In a Republican-led Congress defined by deference to President Trump, there’s a small but steadily growing cohort who have found themselves more willing to break with the White House. Although the president maintains a firm grip on Republican voters, the expanding club could hinder his agenda on everything from the Iran war to immigration funding at a moment when his party holds a tenuous majority on Capitol Hill.

Sen. Bill Cassidy of Louisiana is the newest member of the club. Just days after losing his primary to a Trump-backed challenger, Cassidy on Tuesday reversed himself on legislation involving the war in Iran and voted with Democrats to rein in U.S. military action.

“The way our Constitution is set up, Congress should hold the executive branch accountable,” he told reporters the day before.

Sen. John Cornyn of Texas could be next after Trump endorsed Ken Paxton, Cornyn’s rival for the Republican nomination in next week’s runoff.

Rep. Thomas Massie of Kentucky is perhaps a founding member of the YOLO caucus — slang for “you only live once,” used to punctuate unbothered or even foolhardy behavior. He frustrated Trump since the president’s first term, and his status was solidified after losing his primary on Tuesday to a Trump-backed challenger. Massie has enraged Trump by voting against his signature tax and spending bill and by pushing for the release of the Jeffrey Epstein files.

He hinted there’s more to come before he leaves office.

“I got seven months left in Congress,” Massie said with a grin during his concession speech as the crowd erupted.

More Republicans feel free to shrug off Trump

Other similarly situated Republicans include Sen. Thom Tillis, who was a fierce critic of former Homeland Security Secretary Kristi Noem and has more recently turned his attention to Defense Secretary Pete Hegseth. There’s also Sen. Lisa Murkowski of Alaska, who joined Democrats last week in a bid to curb Trump’s war powers in Iran. Sens. Susan Collins of Maine and Mitch McConnell of Kentucky have voted against some of Trump’s Cabinet picks. And in the House, Rep. Don Bacon of Nebraska has pushed to reclaim congressional power over tariffs.

“If the legislative branch always votes with the president, we do have a king,” Massie said in his concession speech Tuesday.

This hardly amounts to a revival of the Never Trump movement that some Republicans unsuccessfully hoped would curb the president’s excesses during his first term or block him from returning to office. Many in the party, including Trump’s occasional detractors, have either stood by or been unable to block the president as he launched the war in Iran and presided over an aggressive immigration enforcement operation and the dismantling of the federal workforce.

Today’s unencumbered Republicans don’t fit into an ideological box. But they are united by a sense of emboldening that can only be attained in a few ways in Trump’s Washington.

Many, like Tillis, McConnell and Bacon, have decided to retire and can cast votes knowing they’ll never again have to face Republican primary voters. Others like Collins and Murkowski have more leeway because they represent states that tend to reward political independence. And some like Massie banked on the idea that voters could support both Trump and someone who occasionally crossed him.

It’s a paradox for Trump. As he demands total loyalty and pushes out Republican dissenters, he’s left with a growing cohort who, for one reason or another, owe Trump nothing.

Democrats look to capitalize

That could be a problem for Senate Majority Leader John Thune and House Speaker Mike Johnson, who are already governing with threadbare majorities. Shifting loyalties of even a few Republican lawmakers could dramatically complicate the ability for either chamber to pass substantial legislation ahead of the November midterm elections.

Thune called Cornyn a “principled conservative” and “very effective senator” on Tuesday.

“None of us control what the president does,” he said.

The next tests could come later this week as Thune pushes a funding package for Immigration and Customs Enforcement and Customs and Border Protection designed to pass on a party line basis.

Democrats are eager to pounce.

Speaking at an event in Washington on Tuesday sponsored by the Center for American Progress, House Democratic leader Hakeem Jeffries said he would aim to drive a wedge between Republicans by using a so-called discharge petition to bring issues directly to the floor for a vote.

That tactic has been successful in securing House passage on issues including the Epstein files and temporary protection of Haitian immigrants.

“When we’re disciplined and when we’re focused and when we put pressure in particular on the so-called swing seat Republicans, they have been breaking with us,” Jeffries said.

California Gov. Gavin Newsom told reporters on Tuesday that Trump’s endorsement of Cornyn’s rival was a sign that his political power lies within the Republican base — not the American public at large.

“He’s showed the only influence he has, and that’s an outsize influence within the base of the party,” the potential 2028 Democratic presidential contender said. “Otherwise he’s shown little to no influence with the American people.”

Counting the votes

That leaves Republicans gaming out how they might cobble together the votes needed to pass legislation.

Sen. John Hoeven of North Dakota called Cassidy a “good friend” and said the loss was “tough for him.” He said Cassidy “will always vote in line with what he thinks is best” but doubted he will become a less reliable Republican vote.

His fellow Louisianan, Sen. John Kennedy, said Cassidy deploys power “rationally and maturely” and “will continue to do the same thing.”

Cassidy repeatedly rejected the notion that he will spend his final months in Washington as a troublemaker for Trump, saying he’s going to do “what’s good for my country and my state.”

Yet the independent streak that ended his political career quickly resurfaced. A week after Trump visited China, Cassidy spoke of a Western alliance that’s “totally falling apart” and will be unable to “push back on the threat China represents.” He seemed stunned that the administration would create a nearly $1.8-billion fund to compensate Trump allies who they believe have been unjustly investigated and prosecuted.

“I just came off the campaign trail,” he said. “People are concerned about making their own ends meet, not about putting a slush fund together without a legal precedent.”

Sloan and Cappelletti write for the Associated Press. AP writer Stephen Groves in Washington contributed to this report.

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Senate advances bill aimed at ending Iran war as Cassidy, after primary loss, flips to support it

The Senate advanced legislation Tuesday that seeks to force President Donald Trump to withdraw from the Iran war, as a growing number of Republicans defied the president’s wishes.

Since Trump ordered the attack on Iran at the end of February, Democrats have forced repeated votes on war powers resolutions that would require him to either gain congressional approval for the war or withdraw troops. Republicans had been able to muster the votes to reject those proposals, but Louisiana Sen. Bill Cassidy — fresh off a primary election loss in which Trump endorsed his opponent — switched sides to deliver a crucial vote to pass the legislation.

The 50-47 vote tally demonstrated the small but crucial number of Republicans voting to halt the war with Iran. The legislation will get a vote on final passage, but the timing was not immediately clear.

Republican Sens. Rand Paul of Kentucky, Susan Collins of Maine and Lisa Murkowski of Alaska had all previously voted for similar war powers resolutions and did so again Tuesday. Cassidy voted for the legislation for the first time.

After his primary election loss last week, Cassidy returned to Washington saying that he was proud of his work to uphold the Constitution and would carefully consider how he would vote on several priorities of the Trump administration.

Groves writes for the Associated Press.

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Pentagon halts deployments to Poland and Germany to cut troop numbers in Europe, AP sources say

The Pentagon is drawing down thousands of troops in Europe by canceling deployments to Poland and Germany as opposed to yanking forces already stationed there, U.S. officials say, as President Trump has tussled with allies over the Iran war and called for changes.

Several U.S. officials confirmed that 4,000 troops from the Army’s 2nd Armored Brigade Combat Team, 1st Cavalry Division were no longer en route to Poland this week. The Trump administration had previously said it was cutting U.S. forces only in Germany, and the decision spurred questions and criticism in both Warsaw and Washington.

Two officials told the Associated Press that the deployments were canceled after Defense Secretary Pete Hegseth signed a memo directing the Joint Chiefs of Staff to move a brigade combat team out of Europe. One of them said the choice of which unit was left to military leaders.

Besides the Army combat team based in Fort Hood, Texas, the memo also led to the cancellation of an upcoming deployment to Germany of a battalion trained in firing long-range rockets and missiles, according to the two officials, who like the others spoke on condition of anonymity to discuss sensitive military operations.

Three U.S. officials said the changes were part of an effort to comply with a presidential order issued at the beginning of May to reduce the number of troops in Europe by about 5,000. The reasoning does not appear to have been well communicated because others based in Europe said they did not know if the halted deployment to Poland was part of the previously announced reduction.

Trump and the Pentagon have said in recent weeks that they were cutting at least 5,000 troops to Germany after Chancellor Friedrich Merz said the U.S. was being “humiliated” by the Iranian leadership and criticized Washington’s lack of strategy in the war.

The drawdown reflects a growing rift between the administration and traditional European allies, with the U.S. leader repeatedly criticizing fellow NATO members for a lack of support for the Iran war.

Polish officials on Friday insisted that the U.S. withdrawal was not targeted directly at Poland but was a consequence of Trump’s decision to reduce the number of troops in Germany.

Polish Prime Minister Donald Tusk said he “received assurances” that the decision was of a logistical nature and said it does not directly affect deterrence capabilities and Poland’s security.

Military officials say the decision to halt unit to Poland made recently

Joel Valdez, a Pentagon spokesman, said, “the decision to withdraw troops follows a comprehensive, multilayered process” and he argued that it was “not an unexpected, last-minute decision.”

Speaking to Congress in a hearing Friday, Army Secretary Dan Driscoll and Gen. Christopher LaNeve, the Army’s chief of staff, told lawmakers that discussions around the halted deployment occurred over the last two weeks but noted the decision itself was made in the last couple days.

Republican Rep. Don Bacon of Nebraska said he spoke with Polish officials on Thursday and they noted they were “blindsided.”

The move also left many U.S. military personnel in Europe in the dark about how the Trump administration was reducing forces. A U.S. official based in Europe said a meeting was called with 20 minutes’ notice on Monday to discuss the cancellation of the deployment to Poland.

At that time, troops had already been sent to Poland and some, still in the U.S., were told shortly before departure not to travel to the airport, that official said. Another official said most of the Army unit’s equipment had already made it to Europe and was sitting in ports.

Change to troop deployment to Poland draws bipartisan criticism

The reductions drew criticism from Democratic and Republican lawmakers about the move sending the wrong signal both to allies and Russian President Vladimir Putin, whose forces this week have launched one of the deadliest attacks on the Ukrainian capital in the 4-year-old war.

At the House Armed Services Committee hearing Friday, LaNeve said he worked with U.S. Gen. Alexus Grynkewich, commander in Europe of both U.S. and NATO forces, after Grynkewich received the instructions for the force reduction.

“I’ve worked with him in close consultation of what that force unit would be, and it made the most sense for that brigade to not do its deployment in theater,” LaNeve said.

Bacon called the decision “reprehensible” and said it was “an embarrassment to our country what we just did to Poland.”

Republican Rep. Mike Rogers of Alabama, who chairs the committee, said the military is required to consult with lawmakers and that did not happen.

“So we don’t know what’s going on here,” Rogers said. “But I can just tell you we’re not happy with what’s being talked about.”

A State Department official said Friday at a security conference in Tallinn, Estonia, that the U.S. reductions in Europe were “right there in black and white” but also noted that “the U.S. isn’t going anywhere.”

“We’ll continue to work with the Pentagon and work with our partners to make sure we get the right fit and right mix of what’s happening here on the ground,” said Thomas G. DiNanno, U.S. undersecretary of state for arms control and international security.

NATO says the change in Poland won’t affect defense

With the halted deployments, the U.S. military presence in Europe will now be at pre-2022 levels, before Russia commenced its full-scale invasion of Ukraine, one U.S. official said.

European countries have been bracing for a U.S. reduction since Trump returned to the White House, with the administration warning that Europe would have to look after its own security, including Ukraine’s, in the future.

A NATO official said the U.S. decision to cancel its rotational deployment to Poland would not impact NATO’s deterrence and defense plans. Canada and Germany have increased their presence on the alliance’s eastern flank, which contributes to NATO’s overall strength, the official said, insisting on anonymity in line with NATO regulations.

Ben Hodges, former commanding general of U.S. Army Europe, said the move “reinforces the perception that the United States just does things without consultation with allies,” which ultimately “damages cohesion inside the alliance.” The decision would in the long run harm the U.S. defense industry as it reduces the trust of partners, he said.

Around 10,000 U.S. troops are typically stationed in Poland, the majority of them present in the country on a rotational basis. Only about 300 troops are permanently stationed in the country, according to the U.S. Congressional Research Service.

Polish officials had hoped they would be spared from any cuts as Poland spends the most in NATO on defense as a proportion of its economy — around 4.7% in 2025. Hegseth has called it a “model ally” in NATO for spending so much on defense.

When Poland’s conservative president, Karol Nawrocki, visited the White House in September, Trump said he didn’t intend to pull U.S. troops out of Poland. “We’ll put more there if they want,” Trump said at the time.

Toropin, Burrows, Finley and Ciobanu write for the Associated Press. Burrows reported from Tallinn, Estonia, and Ciobanu from Warsaw.

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Republican resistance to Iran war grows in the Senate as Murkowski flips

Senate Republicans on Wednesday again blocked Democratic legislation that would halt President Trump’s war with Iran, but the number of GOP senators voting against the war grew.

Republican Sen. Lisa Murkowski of Alaska voted against the war for the first time since it began at the end of February. Two other Republicans, Sens. Susan Collins of Maine and Rand Paul of Kentucky, also voted against the war, as they had done previously.

The war powers legislation ultimately failed to advance 49-50, with Sen. John Fetterman of Pennsylvania the only Democrat to oppose it, yet the close tally reflected growing unease with Trump’s war. Several other Republican senators have signaled they want Congress to weigh in on the direction of the conflict.

“There will be a day — and it might be soon, I believe — where this Senate will say to the president, ‘Stop this war,’” Democratic Sen. Tim Kaine of Virginia, who has spearheaded his party’s tactic of forcing repeated votes on the war, said before the vote.

Even if it passes the Senate, a war powers resolution would have a slim chance of passing the House and would also certainly be vetoed by Trump. But Democrats say the votes are about building political pressure on the president either to withdraw from the conflict or seek congressional authorization to wage the war.

Trump officials downplay role for Congress

The White House, meanwhile, has asserted that it does not need congressional authorization for the war and has circumvented legal requirements to gain approval from Congress to continue the military campaign. It claims that it has “terminated” hostilities with Iran because the U.S. has entered a ceasefire.

That posture has created tension between the Republican-controlled Congress and the White House because presidents under the War Powers Resolution of 1973 are required to obtain authorization from Congress after 60 days of engaging in a conflict.

Defense Secretary Pete Hegseth told lawmakers this week that the U.S. could start attacking Iran again without the White House seeking congressional approval. He told Murkowski during a hearing on Tuesday that the Trump administration believes it has “all the authorities necessary.”

Murkowski voiced skepticism about that argument. She pointed to the troops and war ships deployed to the region, saying, “It doesn’t appear that hostilities have ended.”

GOP leaders back the war, but unease grows

Republican leadership has continued to back the war with Iran, arguing that the stalemate in the Strait of Hormuz that has blocked most commercial shipping puts more economic pressure on Iran than it does on the U.S.

“Iran’s economy is on life support. Its leadership is eliminated,” said Sen. John Barrasso, the No. 2 Republican in leadership, during a floor speech Wednesday.

He also argued that the Democratic effort on the war is all about undermining Trump. Forcing the issue just as he arrived in China for a summit would “pull out the rug from under him,” Barrasso said.

Still, Republicans are also growing uneasy about the high gas prices, especially as the November elections draw near.

Sen. Mike Rounds, a Republican from South Dakota, said Wednesday he’d prefer that the two branches of government work out the constitutional issues instead of a congressional war powers vote or a potential challenge in court.

The two sides should sit down together and say “we have shared constitutional responsibilities,” Rounds said.

Democrats plan to keep forcing weekly votes on war powers resolutions and are looking ahead to put limitations on Trump during the debate over annual legislation that authorizes and funds the military.

Sen. Jeff Merkley, an Oregon Democrat who sponsored Wednesday’s resolution, told reporters that he believes there is an “erosion of support, erosion of enthusiasm, an increase in skepticism” about the war from Republicans.

Groves writes for the Associated Press.

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Trump arrives in Beijing for talks with China’s Xi on Iran war, trade and U.S. arms sales to Taiwan

President Trump arrived in Beijing on Wednesday for his hotly anticipated talks with Chinese President Xi Jinping on the Iran war, trade and U.S. arms sales to Taiwan.

The meat of the summit doesn’t start until Thursday, when the leaders hold bilateral talks, visit the Temple of Heaven, where Chinese emperors once prayed for bumper crops, and take part in a formal banquet. But the Chinese offered Trump a pomp-filled welcome, literally rolling out the red carpet for him after Air Force One landed in the Chinese capital.

The president was greeted by Chinese Vice President Han Zheng; Xie Feng, China’s ambassador to Washington; Ma Zhaoxu, executive vice minister of foreign affairs; and the U.S. envoy to Beijing, David Perdue.

The welcoming ceremony included a military honor guard, a military band and some 300 Chinese youths waving Chinese and American flags and chanting, “Welcome, welcome! Warm welcome!” as Trump made his way to his waiting limousine. The youth greeters were decked out in white and robin’s egg blue outfits that matched the paint job of the iconic presidential plane.

President Trump walks with China's Vice President Han Zheng during an arrival ceremony

President Trump walks with China’s Vice President Han Zheng during an arrival ceremony Wednesday at Beijing Capital International Airport, as Eric and Lara Trump, Elon Musk, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and U.S. Trade Representative Jamieson Greer follow.

(Mark Schiefelbein / Associated Press)

“We’re the two superpowers,” Trump told reporters as he departed the White House on Tuesday for the long flight to Beijing. “We’re the strongest nation on Earth in terms of military. China’s considered second.”

While Trump likes to project a sense of strength, the visit occurs at a delicate moment for his presidency as his popularity at home has been weighed down by the U.S. and Israel’s war with Iran and rising inflation as a consequence of that conflict. The Republican president is seeking a win by signing deals with China to buy more American soybeans, beef and aircraft, saying he’ll be talking with Xi about trade “more than anything else.”

The Trump administration hopes to begin establishing a Board of Trade with China to address differences between the countries. The board could help prevent the trade war ignited last year after Trump’s tariff hikes, an action China countered through its control of rare earth minerals. That led to a one-year truce last October.

But Trump is visiting Beijing when Iran continues to dominate his domestic agenda. The war has led to the effective closure of the Strait of Hormuz, stranding oil and natural gas tankers and causing energy prices to spike to levels that could sabotage global economic growth. The U.S. president declared that Xi didn’t need to assist in resolving the conflict, even though Iran’s Foreign Minister Abbas Araghchi was in Beijing last week.

Fellow rescuers carry the coffins of two members of the civil defense who were reportedly killed in Israeli airstrikes

Fellow rescuers carry the coffins of two members of the civil defense who were reportedly killed in Israeli airstrikes in Nabatieh the previous day, during their funeral in the southern city of Sidon on May 13, 2026. Israel hammered south Lebanon with strikes on May 12 ahead of talks between the two countries in Washington, as Beirut reported 380 people killed in Israeli attacks since an April 17 ceasefire took effect.

(Mahmoud Zayyat/AFP via Getty Images)

“We have a lot of things to discuss. I wouldn’t say Iran is one of them, to be honest with you, because we have Iran very much under control,” Trump told reporters Tuesday.

Taiwan high on the agenda

The status of Taiwan also will be a major topic as China is displeased with U.S. plans to sell weapons to the self-governing island, which the Chinese government claims as part of its own territory.

Trump told reporters on Monday that he would be discussing with Xi an $11 billion weapons package for Taiwan that the U.S. administration authorized in December but has not yet begun fulfilling. The arms package is the largest ever approved for Taiwan.

But Trump has demonstrated greater ambivalence toward Taiwan, an approach that’s raising questions about whether the U.S. leader could be open to dialing back support for the island democracy.

The Taiwanese flag at Democracy Boulevard is lowered at the Chiang Kai-shek Memorial Hall

The Taiwanese flag at Democracy Boulevard is lowered at the end of the day as the Chiang Kai-shek Memorial Hall is seen in the background in Taipei on May 13, 2026.

(I-Hwa Cheng/AFP via Getty Images)

At the same time, Taiwan — as the world’s leading chipmaker — has become essential for the development of artificial intelligence, with the U.S. importing more goods so far this year from Taiwan than China. Trump has sought to use Biden-era programs and his own deals to bring more chipmaking to America.

The Chinese Communist Party’s news outlet, People’s Daily, published a strongly worded editorial ahead of Trump’s arrival underscoring that Taiwan is “the first red line that cannot be crossed in China-U.S. relations” and is “the biggest point of risk” between the two nations.

Trump was already portraying the trip as a success before he even left White House grounds. He openly mused about Xi’s planned reciprocal visit to the U.S. later this year, lamenting that the White House ballroom under construction would not be completed in time to properly fete the Chinese leader.

“We’re going to have a great relationship for many, many decades to come,” Trump said of the U.S. and China.

Counter snipers and other security forces watch over Air Force One while refueling at Joint Base Elmendorf

Counter snipers and other security forces watch over Air Force One while refueling at Joint Base Elmendorf during a trip with US President Donald J. Trump in Anchorage, Alaska, on May 12, 2026. Donald Trump was due in Beijing on May 13, 2026 on the first visit to China by a US president in nearly a decade, as he seeks to ramp up trade despite potential friction over Taiwan and Iran.

(Brendan Smialowski/AFP via Getty Images)

Trump embarked on Air Force One for the big meeting with a coterie of aides, family members and business world titans, including Nvidia’s Jensen Huang and Tesla and SpaceX’s Elon Musk. While en route to Beijing, he posted on social media that his “first request” to Xi during the visit will be to ask the Chinese leader to bolster the presence of U.S. firms in China.

“I will be asking President Xi, a Leader of extraordinary distinction, to ‘open up’ China so that these brilliant people can work their magic, and help bring the People’s Republic to an even higher level!” Trump wrote.

Tajikistan's President Emomali Rahmon and China's President Xi Jinping attend a welcoming ceremony

Tajikistan’s President Emomali Rahmon and China’s President Xi Jinping attend a welcoming ceremony at the Great Hall of the People on Tuesday, in Beijing.

(Maxim Shemetov—Pool / Getty Images)

Despite Trump’s outward confidence, China appears to be entering the meeting from “a much stronger place,” said Scott Kennedy, a senior adviser on Chinese business and economics at the Center for Strategic and International Studies, a Washington think tank.

China would like to reduce tech restrictions on accessing computer chips and find ways to reduce tariffs, among other goals.

“But even if they don’t get much on any of those things, as long as there’s not a blow-up in the meeting and President Trump doesn’t go away and look to re-escalate, China basically comes out stronger,” Kennedy said.

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met on Wednesday to discuss economic and trade issues at Incheon International Airport, just west of the South Korean capital of Seoul, according to the Chinese state run Xinhua News Agency.

Bystanders are kept back by police tape as they film the motorcade of President Donald Trump as he arrives

Bystanders are kept back by police tape as they film the motorcade of President Donald Trump as he arrives at the Four Seasons Hotel on Wednesday in Beijing.

(Kevin Frayer / Getty Images)

Trump wants 3-way nuclear arms deal

Trump also intends to raise the idea of the U.S., China and Russia signing a pact that would set limits on the nuclear weapons each nation keeps in its arsenal, according to a senior Trump administration official who briefed reporters ahead of the trip. The official spoke on the condition of anonymity under ground rules set by the White House.

China has previously been cool to entering such a pact. Beijing’s arsenal, according to Pentagon estimates, exceeds more than 600 operational nuclear warheads and is far from parity with the U.S. and Russia, which each are estimated to have more than 5,000 nuclear warheads.

The last nuclear arms pact, known as the New START treaty, between Russia and the United States expired in February, removing any caps on the two largest atomic arsenals for the first time in more than a half-century. As the treaty was set to expire, Trump rejected a call by Russia to extend the two-country deal for another year and called for “a new, improved, and modernized” deal that includes China.

The Pentagon estimates China will have more than 1,000 operational nuclear warheads by 2030.

Madhani, Weissert and Boak write for the Associated Press. Boak reported from Washington. AP writers Darlene Superville in Washington, Huizhong Wu in Bangkok, Hyung-jin Kim in Seoul, South Korea, and Kanis Leung in Hong Kong contributed to this report.

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Two-thirds of Europe’s LNG imports to come from the US amid increased reliance

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Europe’s reliance on American liquefied natural gas is set to increase further next year as the EU continues efforts to phase out Russian fossil fuel imports, according to new analysis published by the IEEFA on Wednesday.


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The report estimates that the US could supply close to two-thirds of Europe’s LNG imports in 2026, reinforcing Washington’s dominant position in the continent’s gas market after Russia’s invasion of Ukraine and the Iran war reshaped global energy flows.

According to IEEFA, the US already accounted for 57% of Europe’s LNG imports in 2025, a sharp increase compared with pre-war levels.

The organisation warned that the share could continue rising over the coming years if current import trends persist and additional long-term supply contracts enter into force.

The findings come as most European governments seek to fully eliminate Russian gas imports by 2027 under the European Commission’s REPowerEU strategy.

Since 2022, EU member states have rapidly expanded LNG purchases, particularly from the US, to compensate for declining Russian pipeline deliveries.

The IEEFA stated that the shift had improved Europe’s short-term energy security but also created a growing concentration risk.

The think tank argued that replacing dependence on Russian gas with heavy reliance on another single alternative supplier could expose Europe to future political and market instability.

Lower demand but higher imports and investment

The report noted that LNG imports from the US generally come at a higher cost than pipeline gas because of liquefaction, shipping and regasification expenses.

The IEEFA estimates that EU countries spent roughly €117 billion on US LNG imports between early 2022 and mid-2025.

Several European policymakers and regulators have previously warned against excessive dependence on imported LNG.

Earlier this year, European Commission Executive Vice President Teresa Ribera said the bloc should avoid replacing one energy dependency with another and accelerate investment in renewable power and electrification instead.

The European Union Agency for the Cooperation of Energy Regulators has also raised concerns about supply concentration risks linked to the growing role of US LNG in the European market.

The increase in LNG imports also comes despite a broader decline in European gas consumption in recent years.

High prices following the energy crisis, industrial weakness, energy-saving measures and faster deployment of renewable energy have all contributed to lower demand.

The IEEFA data shows Europe’s LNG imports declined in 2024 as gas consumption fell to its lowest level in more than a decade. However, imports rebounded in 2025 amid colder weather conditions and efforts by governments to replenish storage sites.

At the same time, several EU countries continue expanding LNG import infrastructure.

Germany, which previously relied heavily on Russian pipeline gas, has rapidly developed floating LNG terminals and emerged as one of the largest buyers of US LNG in Europe.

Analysts have also questioned whether Europe risks building excess LNG import capacity as long-term gas demand is expected to weaken further during the energy transition in the coming years.

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Hegseth faces bipartisan grilling about weapons drawdown during the Iran war

Defense Secretary Pete Hegseth faced tough questions Tuesday from Republican and Democratic lawmakers about the Trump administration’s end game for the Iran war, the cost of the conflict and its impact on diminishing U.S. weapons stockpiles.

For his part, the Pentagon chief softened his tone from hearings before Congress nearly two weeks ago, notably avoiding the same pointed criticism of lawmakers in his opening remarks as he outlined the Trump administration’s efforts to ramp up production of weapons and other military capabilities.

Even so, Hegseth insisted that the military has plenty of missile defense systems and other munitions for the Iran war or future conflicts as both Republicans and Democrats hammered him with those concerns.

“I take issue with the characterization that munitions are depleted in a public forum,” Hegseth said. “That’s not true.”

The cost of the Iran war has risen to about $29 billion, the vast bulk of which — $24 billion — is related to replacing and repairing munitions but also includes operational costs to keep forces deployed, Pentagon comptroller Jay Hurst said. That’s up from $25 billion that he told lawmakers nearly two weeks ago.

The powerful House and Senate Appropriations subcommittees that oversee defense spending are holding back-to-back hearings to review the Trump administration’s 2027 military budget proposal, which calls for a historic allocation of $1.5 trillion. The discussions in the House quickly veered into the handling of a war that appears locked in a stalemate as higher fuel prices pose political problems for Republicans in the midterm congressional elections.

Hegseth and Caine face bipartisan pushback on munitions stockpiles

Rep. Rosa DeLauro, the ranking Democrat on the House Appropriations Committee, told Hegseth that the “question must be answered at the end of this crisis: What have we accomplished and at what cost?”

“This administration has not presented Congress with any kind of clear or coherent strategy week to week, day to day, hour to hour,” DeLauro said. “The rationale shifts, the objectives change. The end game is ill-defined when it is defined at all.”

California Republican Rep. Ken Calvert, the House subcommittee’s chair, also asked about the impact of the Iran war on military funding as well as the U.S. military’s weapons stockpiles.

“Questions persist about whether we are building the depth and reliance required for a high-end conflict,” Calvert said.

Minnesota Rep. Betty McCollum, the defense subcommittee’s ranking Democrat, pressed Hegseth on whether the military has a plan to draw down troops in the Middle East if Congress passes so-far-unsuccessful efforts to end the Iran war.

“We have a plan to escalate if necessary,” Hegseth said. “We have a plan to retrograde if necessary. We have a plan to shift assets.”

He said he would not reveal any next steps publicly. Noting repeated questions from lawmakers over the military’s weapons stockpiles, drawn down from the Iran war, Hegseth said the concerns have been “unhelpfully overstated” and that “we have plenty of what we need.”

He said the defense industry has been told to “build more and build faster,” blaming the military industrial base’s inadequate capacity on previous administrations and U.S. aid to Ukraine in its war with Russia.

Trump administration faces pressure from impact of the Iran war

President Trump is facing increasing pressure from the economic shocks of Iran effectively closing the Strait of Hormuz, a vital shipping corridor where 20% of the world’s oil normally flows. The U.S. military in turn has blockaded Iranian ports and the two sides have traded fire, with American forces thwarting attacks on their warships and disabling Tehran-linked oil tankers.

Trump said Monday that the ceasefire is on “massive life support” and criticized Iran for its latest proposal, pointing to his demands that Iran significantly limit its nuclear program.

“I would call it the weakest right now after reading that piece of garbage they sent us,” Trump said.

The Republican president also said he wanted to suspend the federal gas tax to help Americans shoulder surging fuel prices. He has previously said higher costs are worth it to prevent Iran from getting a nuclear weapon.

Tuesday’s hearings are giving a mostly new group of lawmakers the chance to grill or applaud Hegseth and Gen. Dan Caine, chair of the Joint Chiefs of Staff, on the planning and execution of the war.

The Senate hearing later Tuesday will include Sen. Susan Collins of Maine, a Republican whose reelection this year is far from guaranteed. She voted with Democrats on an effort to halt the conflict late last month, saying she wants to see a defined strategy for bringing the war to a close.

Alaska Sen. Lisa Murkowski, another Republican on the Senate Appropriations defense subcommittee, has voted against the string of unsuccessful war powers resolutions but spoken of the need for congressional authorization so Americans will know the war’s limits and objectives.

He also will face plenty of friendly Republicans, including the Senate subcommittee’s chair, Sen. Mitch McConnell of Kentucky, and perhaps the Iran war’s biggest booster in Congress, Sen. Lindsey Graham of South Carolina.

Finley, Toropin and Barrow write for the Associated Press. Barrow reported from Atlanta.

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Oregon Democrats found a way to improve roads. Now their gas tax goes before voters as prices soar

Appealing to voters’ anxieties about the soaring cost of living is central to Democrats’ messaging in their hopes of big wins in this year’s midterm elections. In Oregon, a question on the primary ballot is complicating that strategy.

The Democratic-controlled Legislature raised the state gas tax and a range of fees last fall as a way to pay for road improvements and plug a hole in the state’s transportation budget. Republicans responded with a petition to repeal the increases, leading to a referendum that will land before voters just as the Iran war is causing the price of gas to skyrocket around the United States.

“It is a hell of a time to be raising gas taxes on people,” said Jeanine Holly, filling up her tank on a recent morning in Portland.

The gas tax repeal on the state’s May 19 primary ballot comes amid widespread disruptions in the oil industry from the war with Iran started by Israel and President Trump. Discontent is high among U.S. consumers across the political spectrum, with the price of gas topping $4.50 a gallon nationally on Friday and averaging about 80 cents more per gallon in Oregon.

The referendum will give voters a chance to weigh in on a hot-button issue hitting them directly in the pocketbook at a time when prices remain elevated for everything from housing to groceries. Nationally, Democrats have focused on the affordability concerns similar to those that helped propel Trump to victory in 2024. Some of their candidates have even proposed ways to cut taxes as a way to promote their agenda and counter a traditional GOP strategy.

“It’s difficult to imagine a worse situation for … a gas tax increase than right now in American politics,” said Chris Koski, professor of political science and environmental studies at Portland’s Reed College.

Republicans sense an opportunity

Republicans wasted no time in appealing to voters after the Legislature and Democratic governor signed off on the tax increase, which also included a higher payroll tax for transit projects and a boost in vehicle registration and title fees.

They needed 78,000 voter signatures to qualify the referendum for the ballot. They quickly got 250,000.

“That is a remarkable number,” Republican strategist Rebecca Tweed said.

Republicans in Oregon have countered Democrats’ affordability messaging by portraying the tax and fee increases as further fueling the high cost of living.

“Do Oregonians want to pay more? The answer is no,” said GOP state Sen. Bruce Starr, who helped lead the referendum campaign. “Everything they’re looking at is expensive.”

Under the legislation, Oregon’s gas tax would rise from 40 cents to 46 cents a gallon. That would make it tied with Maryland for the eighth-highest gas tax of any state when factoring in other state taxes and fees, according to figures from the U.S. Energy Information Administration.

At the Portland gas station, Michael Burch said he used to spend $70 to fill three-quarters of his pickup truck’s tank, but now pays $80 for just over half a tank.

“I’m sick and tired of taxes,” the 76-year-old retiree said. “Gas is certainly dampening the spirits and the coffers of folks that aren’t as well off.”

Hannah Coe, a 30-year-old student, said she was not sure how she would vote on the primary ballot referendum.

“I think I would be in favor of it if it was going to go to the things that it was saying it was going to go to, such as fixing our roads,” she said. “I also kind of feel like that’s just a grab at trying to get more money from the people who live here.”

Democrats blame the Iran war

Oregon Democrats spent much of last year fighting to pass a transportation funding bill to help raise money for services such as road paving and snow plowing. The debate came amid projections of declining gas tax revenue as more people adopt electric, hybrid and fuel-efficient cars.

They finally passed a narrower version of their plan during a special session called by Gov. Tina Kotek.

She recently acknowledged the challenging timing of the referendum.

“Certainly, the conversation at the ballot this year … is a tough sell right now, because I think everyone is feeling a pinch on their household budgets,” she told reporters.

But she and other Democrats said the root cause of the jump in gas prices is Trump’s decision to go to war with Iran. She suggested the federal government consider reducing the federal 18-cent-a-gallon gas tax if it wants to provide relief at the pump for Americans.

Some Oregonians are receptive to the Democrats’ reason for passing the legislation last year. Kurt Borneman, 68, said he would support the gas tax increase, even though he’s now paying at least $10 more to fill up his tank.

“I realize that money’s tight and roads need to be improved,” he said at the Portland gas station. “I want less government, but I also want nice roads.”

Democratic state Rep. Paul Evans said his party lost the battle over how to frame the gas tax increase to the public. So far, there has been no organized effort from Democrats and their allies to oppose the ballot referendum.

“When anything is reduced to, ‘Do you want a tax or not?’ Most people are going to say no,” he said. “The messaging got away from us, and it became focused upon the price instead of the value.”

Rush writes for the Associated Press.

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Rubio presses Europe on Iran action as he seeks to mend ties with Italy and Vatican

U.S. Secretary of State Marco Rubio urged European allies Friday to move beyond rhetoric and take concrete action against Iran, even as he sought to repair strained ties with Italy and the Vatican during a two-day visit following tensions over the U.S.-Israeli war in Iran.

Speaking after meetings with Premier Giorgia Meloni and Foreign Minister Antonio Tajani, Rubio warned that Tehran was attempting to assert control over the strategic Strait of Hormuz, calling the move “unacceptable” and a threat to global security.

“Everybody says Iran is a threat. Everybody says that Iran can’t have a nuclear weapon … but you’ve got to do something about it,” Rubio told reporters in Rome. “If the answer is no … then you better have something more than just strongly worded statements to back it up.”

Clear ‘red line’

Rubio said Iran was trying to normalize control over an international waterway, a precedent he warned could encourage similar actions elsewhere. He also cautioned Tehran against targeting U.S. maritime assets, saying the United States had thwarted attacks on three Navy ships in the strait.

“The red line is clear. They threaten Americans, they are going to be blown up,” he said.

Rubio said Washington was pursuing a diplomatic track, including a proposed U.N. Security Council resolution aimed at preserving freedom of navigation. He added the U.S. was awaiting Iran’s response on Friday to ongoing diplomatic efforts.

Rubio’s visit comes after weeks of sharp disagreements between Washington and Rome over the Iran war, tariffs and President Trump’s criticism of both Meloni and Pope Leo XIV.

Differences remain over Iran war

Meloni described her meeting with Rubio as “constructive, frank and productive,” focused on both bilateral relations and major international issues. She said the talks covered strategic topics, including the Middle East, freedom of navigation in the Strait of Hormuz, Ukraine, China and areas of Italian interest such as Libya and Lebanon.

“We both understand how important the trans-Atlantic relationship is, but we also understand that each country must defend its own national interests,” Meloni stressed after the meeting.

Tajani struck a more conciliatory tone after meeting his U.S. counterpart, reaffirming the importance of the trans-Atlantic alliance.

“I am convinced Europe needs America — Italy needs America — and the United States also needs Europe and Italy,” Tajani said, adding he hoped “tensions have been calmed.”

He said discussions covered the Iran conflict and its spillover into Lebanon, as well as Venezuela and Cuba. The U.S. State Department said Rubio also raised the need to protect economic interests and end the war in Ukraine.

Despite the effort to ease tensions, differences remain over the Iran conflict. Italy has opposed the U.S.-Israeli bombing campaign, with Meloni calling it “illegal,” and has resisted involvement in offensive operations.

Tajani said Italy would be prepared to contribute naval forces to demine the Strait of Hormuz once a permanent ceasefire is reached, and would maintain its role in the U.N. peacekeeping mission in Lebanon. He also stressed the importance of continued U.S. troop presence in Europe amid concerns about possible reductions.

No final decision on NATO troops adjustments

Rubio said “no final decision” had been made on NATO troop adjustments, noting that any changes would depend on U.S. national interests and global priorities.

The U.S. has announced a decision to pull 5,000 military personnel from Germany and Trump has threatened to withdraw more troops from Italy and Spain over their stance on the war.

Italy, a key logistics hub for U.S. and allied operations in the Mediterranean and beyond, has already signaled limits to its cooperation. In March, it declined to allow U.S. bombers bound for the Middle East to use a base in Sicily without parliamentary approval, reflecting constitutional constraints and strong domestic opposition to the war.

Meloni, weakened by a recent referendum defeat and facing public unease over the conflict, has insisted that any use of Italian bases for offensive operations would require parliamentary backing.

The war has also raised economic concerns in Italy, with Meloni warning that disruptions in the Strait of Hormuz risk driving up energy costs and inflation, while U.S. tariff threats weigh on the country’s export-driven economy.

An attempt to de-escalate at the Vatican

Rubio also sought to ease tensions with the Vatican following Trump’s criticism of the pope’s calls for peace. After a lengthy meeting on Thursday with the pontiff and Vatican Secretary of State Cardinal Pietro Parolin, Rubio said Washington remained committed to a “productive and fruitful” relationship with the Catholic Church.

“The president’s perspective is clear. He thinks that Iran is a threat, and it needs to be addressed. And that position remains unchanged,” Rubio said.

Rubio confirmed that Cuba was also discussed at the Vatican, with Washington hoping the church’s Caritas charity organization would continue distributing humanitarian aid.

Rubio said the U.S. has provided about $6 million in humanitarian aid to Cuba, to be distributed through Caritas, should the Cubans allow it. He added Washington has also offered up to $100 million in additional aid, but the Cuban government has not accepted it so far. Rubio blamed Cuba’s government for blocking assistance and worsening conditions, describing it as “incompetent.”

U.S. officials said the Vatican talks underscored strong bilateral ties and a shared commitment to promoting peace, even as differences over the Iran war persist.

Zampano and Winfield write for the Associated Press.

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Vatican and State Department stress solid ties after Rubio’s fence-mending visit over Trump attacks

The Vatican raised the “need to work tirelessly in favor of peace” in talks Thursday with U.S. Secretary of State Marco Rubio, who came to Rome on a fence-mending visit after President Trump’s criticisms of Pope Leo XIV over the Iran war.

Both the Vatican and the U.S. State Department stressed that Rubio’s meetings with Leo and the Vatican’s top diplomat underscored strong bilateral ties. Those relations, though, have been strained over Trump’s repeated broadsides about Leo’s calls for peace and dialogue to end the U.S.-Israeli war.

Rubio, a practicing Catholic, has often been called on to tone down or explain Trump’s harsh rhetoric. He had an audience first with Leo, which was complicated at the last minute by Trump’s latest criticism of the Chicago-born pope. During a 2½-hour visit, Rubio then met with the Vatican secretary of state, Cardinal Pietro Parolin, who on the eve of his visit had strongly defended Leo and criticized Trump’s attacks.

“Attacking him like that or criticizing what he does seems a bit strange to me, to say the least,” Parolin said Wednesday.

After the meetings, the U.S. State Department said that Rubio and Parolin discussed “ongoing humanitarian efforts in the Western Hemisphere and efforts to achieve a durable peace in the Middle East. The discussion reflected the enduring partnership between the United States and the Holy See in advancing religious freedom.”

In a separate statement about the audience with Leo, U.S. State Department spokesperson Tommy Pigott said that the two discussed the situation in the Middle East and the Western Hemisphere. “The meeting underscored the strong relationship between the United States and the Holy See and their shared commitment to promoting peace and human dignity,” he said.

The Vatican, for its part, said that during Rubio’s meetings with both Leo and Parolin, “the shared commitment to fostering good bilateral relations between the Holy See and the United States of America was reaffirmed.”

It said the two sides exchanged views on the current events “with particular attention to countries marked by war, political tensions, and difficult humanitarian situations, as well as on the need to work tirelessly in favor of peace.”

Rubio also has meetings Friday with Italian Premier Giorgia Meloni and Foreign Minister Antonio Tajani. Those meetings might not be much easier for Washington’s top diplomat, given both have strongly defended Leo against Trump’s attacks and have criticized the Iran war as illegal — drawing the president’s ire.

A mission to smooth ties

The tensions began when Trump lashed out at Leo on social media last month, saying the pope was soft on crime and terrorism for comments about the administration’s immigration policies and deportations as well as the Iran war. Leo then said that God doesn’t listen to the prayers of those who wage war.

Later, Trump posted a social media image appearing to liken himself to Jesus Christ, which was deleted after a backlash. He has refused to apologize to Leo and has sought to explain away the post by saying that he thought the image was a representation of him as a doctor.

Rubio said that Trump’s recent criticisms of Leo were rooted in his opposition to Iran potentially obtaining a nuclear weapon, which he said could be used against millions of Catholics and other Christians.

Leo has never said Iran should obtain nuclear weapons and that the Catholic Church “for years has spoken out against all nuclear weapons, so there is no doubt there.”

“The mission of the church is to preach the Gospel, to preach peace. If someone wants to criticize me for announcing the Gospel, let him do it with the truth,” Leo said late Tuesday, after Trump again accused him of being “OK” with Iran having a nuclear weapon.

By Thursday, tensions seemed to have eased.

Rubio gave Leo a small crystal football paperweight. He acknowledged Leo’s known allegiance to the Chicago White Sox, saying “you’re a baseball guy,” but noted that the football had the seal of the State Department on it.

“What to get someone who has everything?” Rubio joked as he gave Leo the paperweight.

Leo, for his part, gave Rubio a pen apparently made of olive wood — “olive being of course the plant of peace,” Leo said — with his coat of arms on it and a picture book of Vatican artworks.

Trump also has criticized Meloni and other NATO allies for a lack of support for the Iran war, recently announcing plans to withdraw thousands of American troops from Germany in the coming months.

Vatican seen as willing to have dialogue

Giampiero Gramaglia, former head of the ANSA news agency and its onetime Washington correspondent, said that he didn’t expect much to come out of Rubio’s visit for Italian or Vatican relations. He, and other Italian commentators, believe Rubio instead was looking to smooth over relations with the pope for his own political ambitions, as well as the upcoming midterm U.S. congressional elections and 2028 presidential race.

“I doubt Rubio has the role of conciliator for Trump,” he told Italy’s Foreign Press Association. “I have the perception that Rubio’s mission is more about himself” and his political ambitions as a prominent Catholic Republican.

The Rev. Antonio Spadaro, undersecretary in the Vatican’s culture office, said that Rubio’s mission wasn’t to “convert” the pope to Trump’s side. Rather, Washington “has come to acknowledge — implicitly but legibly — that (Leo’s) voice carries weight in the world that cannot simply be dismissed.”

“The situation created by President Trump’s remarks required a high-level, direct intervention, conducted in the proper language of diplomacy: a semantic corrective to a narrative of frontal conflict with the church,” he wrote in an essay this week.

Cuba is also on the agenda

Rubio said that topics other than the Iran war were on the agenda for the Vatican visit, including Cuba. The Holy See is particularly concerned about the Trump administration’s threats of potential military action there following its January ouster of Venezuelan President Nicolás Maduro.

Trump has said frequently that Cuba could be “next,” and even suggested that once the Iran war is over, naval assets deployed in the Middle East could return to the United States by way of Cuba.

Rubio is the son of Cuban immigrants and a longtime Cuba hawk.

“We gave Cuba $6 million of humanitarian aid, but obviously they won’t let us distribute it,” Rubio said. “We distributed it through the church. We’d like to do more.”

Winfield and Lee write for the Associated Press. Lee reported from Washington.

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Lufthansa posts record revenue but warns Iran war fuel costs will hit annual profit

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The surge in jet fuel prices has become a primary concern for the European travel industry, with Lufthansa finding itself at the centre of this crisis.


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According to Lufthansa’s latest earnings report, the airline expects an additional €1.7 billion ($2bn) fuel cost burden in 2026 as soaring jet fuel prices continue to weigh on the industry.

The need to avoid certain airspaces has led to longer flight times, which naturally increases consumption. These adjusted routes also require more staff hours and higher maintenance cycles, adding layers of complexity to an already strained global supply chain.

As reported by Euronews, global airlines have already cancelled approximately 13,000 flights this May, while Lufthansa alone has axed 20,000 short-haul flights through to October in a bid to cut fuel consumption.

This reduction in capacity is a direct response to the unsustainable cost of operating older, less fuel-efficient aircraft during price peaks.

While Lufthansa has managed to stay profitable, the jet fuel price spikes have forced the firm to advise passengers to book their holidays as early as possible to avoid further surcharges.

The company is currently investing heavily in its “fleet modernisation” programme to mitigate these risks in the long term, though the immediate impact of fuel volatility continues to weigh on the balance sheet.

Lufthansa remains committed to its financial targets, but the volatility of the global oil market remains the largest variable in its 2026 outlook.

“We are satisfied with the first quarter […] at the same time, the current situation compels us to rigorously examine every lever available to reduce costs, improve efficiency and mitigate risks in order to maintain our ability to act decisively. Our annual profit will likely be lower than originally anticipated,” CFO Till Streichert stated.

The Lufthansa Group has announced a landmark financial performance, revealing that it generated the highest revenue in its history in 2025. Revenue rose by 5% compared with the previous year to €39.6 billion.

According to the latest figures, the airline group also saw its operating profit grow by 20% compared with 2024, highlighting a robust recovery in passenger demand.

In the first quarter of 2026, year-on-year revenue climbed 8% despite challenges linked to the conflict involving Iran, including €1.7 billion in additional costs caused by volatile jet fuel prices and the suspension of dozens of routes.

The firm kept its capacity broadly stable with slight growth in long-haul traffic compensating for capacity reductions in short and medium-haul segments.

Lufthansa Technik and Lufthansa Cargo also significantly contributed to earnings with demand for maintenance, repair and overhaul services increasing, as well as through the marketing of ITA Airways’ cargo space.

Global demand for air travel remains high and continues to prove resilient even in times of crisis, as Lufthansa Group again expects a strong summer travel season.

“In the first quarter, we significantly improved on the previous year’s financial results […] but the ongoing crisis in the Middle East, combined with rising fuel costs and operational constraints, poses enormous challenges for the world as a whole, for global air travel and for our company as well,” CEO Carsten Spohr stated.

“However, we are resilient in our ability to absorb these impacts. This applies both to our above-average hedging against fuel price fluctuations and to our multi-hub, multi-airline strategy, which provides us with greater flexibility in our route network and fleet development,” Spohr added.

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