Good morning, everyone. It is a busy morning for news. The Trump presidency has entered what some Republicans are calling a “bleak” new phase. The war with Iran continues without a resolution, new congressional investigations into Jeffrey Epstein are emerging, and Trump is opening new fronts in his trade wars with additional tariffs. With the midterms approaching, the administration appears to be stumbling from one crisis to the next.
We have new reporting on Epstein, including a White House push to win over two senators Trump has repeatedly attacked and secure their support for Todd Blanche. We also have major developments involving Iran, tariffs, and much more.
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Here’s the news:
Trump’s presidency entering bleak new phase as three US service members’ deaths deepen fears that the country is trapped in an unpopular and expensive war with Iran. Trump has threatened further retaliation and ordered new strikes, while Iran continues inflicting casualties, disrupting Strait of Hormuz shipping, and surviving sustained US bombardment. The conflict has pushed gasoline above $4 a gallon and oil toward $90 a barrel, alarming Republicans who fear higher living costs will damage them in the midterm elections. A proposed 10-day ceasefire could revive negotiations, but administration allies say Trump still has several escalation options short of deploying ground troops. His requested $1.5 trillion defense budget and another $67 billion for war costs signal preparations for prolonged operations, though Senate Democrats have blocked the broader defense legislation.
Epstein:
Rep. Jamie Raskin, the top Democrat on the House Judiciary Committee, launched an investigation into whether Jeffrey Epstein acted as an unregistered foreign agent. He requested records from the Justice Department, State Department, and intelligence community concerning Epstein’s foreign relationships. Raskin cited what he called “substantial evidence” that Epstein advanced Saudi and Kuwaiti interests, advised Russia, and consulted for a former Israeli prime minister. He argues that these activities may have created security risks because Epstein never registered as a foreign agent.
Raskin is seeking documents about Epstein’s interactions with foreign officials and asking whether the government ever investigated him under foreign-agent laws. He believes relevant information may remain among roughly 2.5 million unreleased Justice Department documents connected to Epstein. Because Republicans control the House, the agencies may not comply with his requests. The effort nevertheless previews investigations Democrats could pursue with subpoena power if they regain the House majority.
Rosa Gilles, an Uzbek model who began working for Jeffrey Epstein at age 18, alleged that he sexually assaulted her during his work release and continued abusing her for years while authorities failed to intervene. She spoke publicly after her identity appeared unredacted in Epstein-related files released by Acting Attorney General Todd Blanche, intensifying criticism surrounding his attorney general nomination. Gilles praised fellow survivors but said the institutional failures left her deeply distrustful. Gilles said that, as a child, she felt so abandoned by authorities that she considered contracting an STI to infect and stop her abuser herself.
Trump is seeking support from Republican Sens. Thom Tillis and John Cornyn to advance acting Attorney General Todd Blanche’s nomination, despite previously attacking both senators. Either senator could derail the nomination with a single Republican “no” vote in the Senate Judiciary Committee. Their concerns include Blanche’s role in a proposed $1.776 billion fund for Trump allies, immunity for the Trump family from tax investigations, and the handling of Epstein-related files and investigations. Blanche met with Epstein survivors at Tillis’s request, but several participants described the meeting as demoralizing and accused him of avoiding accountability for exposing victims’ identities. Although Blanche has offered some concessions, Cornyn wants written commitments. Here is a new letter from survivors urging Senators to vote against Blanche:
Iran:
Iran claimed attacks on an oil tanker and two other ships near the Strait of Hormuz as the United States conducted its tenth consecutive night of airstrikes. The tanker’s crew abandoned the vessel, while US forces targeted Iranian command centers and missile and drone launch sites. Iran also launched retaliatory attacks against Bahrain, Kuwait, and Jordan, all of which host US forces. Kuwait reported damage to power and desalination facilities, and Bahrain said it intercepted several Iranian aerial attacks. The escalating conflict has killed US troops, increased regional casualties, and prompted Democrats to urge President Trump to end the renewed war.
Republican senators are increasingly alarmed that the renewed conflict with Iran and the closure of the Strait of Hormuz are raising gasoline, food, and fertilizer prices ahead of November’s midterm elections. GOP leaders are urging President Trump to reopen the waterway quickly, but they disagree over whether to intensify military action or pursue another diplomatic solution. The fighting has killed three US service members, prompted additional American strikes and deployments, and fueled calls for greater scrutiny of the administration’s strategy, though several senators oppose sending ground troops. Polling shows only 33% of Americans approve of Trump’s economic management and 29% approve of his handling of the Iran war, adding to Republican concerns about voter backlash. Trump is also seeking to include Iran in a pending Russia sanctions bill, a proposal Senate Majority Leader John Thune said he would support.
Nearly 100 US service members have been injured during two weeks of escalating conflict with Iran, although the Pentagon said most suffered minor concussions and 96% returned to duty. Three US soldiers were killed in Jordan and Iraq as Iran retaliated against ten consecutive nights of American airstrikes by targeting US-linked sites across the region. Iran also claimed responsibility for striking a tanker in the Strait of Hormuz, where shipping has largely stalled despite US efforts to weaken Tehran’s control. The crisis widened after the Iran-backed Houthis threatened to block Saudi vessels from the Bab al-Mandeb Strait, placing additional pressure on global trade and oil exports. Diplomatic talks continued in Pakistan, but the escalation pushed Brent crude above $88 a barrel and average US gasoline prices to $4 a gallon.
The confrontation is threatening two major global shipping routes and raising concerns about energy supplies and international trade. Iran has maintained pressure on the Strait of Hormuz, while Yemen’s Iran-backed Houthis announced a blockade of Saudi vessels in the Red Sea’s Bab al-Mandeb Strait. Saudi Arabia vowed to protect its ships, and the International Energy Agency warned that fully reopening Hormuz is essential to global energy security. Alternative export routes and increased shipments from producers outside the Middle East have provided some protection against shortages. Oil prices nevertheless remained elevated, while supplies of refined products such as gasoline and diesel were particularly tight.
Diplomatic and political developments continued alongside the fighting across the region. Iran’s interior minister met mediators in Pakistan in an attempt to revive a short-lived interim agreement between Washington and Tehran. Israel said it had no interest in joining the current US strikes, while Lebanon began deploying troops to southern villages following an Israeli withdrawal under a US-brokered framework. Lebanese President Joseph Aoun was also scheduled to meet Trump as negotiations over Israel’s withdrawal and Hezbollah’s disarmament continued. Separately, satellite imagery reportedly showed that Israel had built a 14-mile earthen barrier dividing occupied portions of Gaza from the rest of the territory.
Trade war:
Donald Trump could announce new tariffs on dozens of countries as soon as this week, according to the Financial Times, ahead of Friday’s expiration of a temporary 10% global tariff. The initial duties are expected to remain near 10%, though the administration is pursuing investigations that could provide legal grounds for higher rates.
Trump ordered 50% tariffs on a broad range of Canadian imports, including wine, hockey sticks, and cement. Some affected products had previously entered the United States duty-free under the USMCA. Energy products, fish, critical minerals, and potash will be exempt. Steel and aluminum, which already face national-security tariffs, are also excluded. The new duties are scheduled to take effect in 30 days, allowing time for negotiations.
Canadian Prime Minister Mark Carney called the tariffs the latest unilateral US trade action violating the USMCA. He said Canada has already proposed solutions to outstanding trade disputes and is ready to intensify discussions with Washington. Canadian politicians across the political spectrum condemned Trump’s decision. Ontario Premier Doug Ford called for Canada to retaliate “tariff for tariff, dollar for dollar” if the duties proceed. Conservative and New Democratic leaders also characterized the move as an unjustified attack on Canadian workers and businesses.
Trump invoked Section 338 of the 1930 Trade Act to authorize the tariffs, alleging that Canada discriminates against American automobiles, alcohol, and cheese. The White House said the measures would hold Canada accountable for unequal treatment of US commerce. Critics noted that parts of Trump’s argument rely on Canadian retaliation against earlier US tariffs imposed over fentanyl-smuggling concerns. Legal scholar Ilya Somin linked Section 338 to the Smoot-Hawley tariff law, which economists widely associate with worsening the Great Depression. Democratic lawmakers had previously proposed repealing the provision over concerns that a president could use it to destabilize the economy.
Other news:
According to Politico, Trump’s advisers reportedly tried to dissuade him from delivering a prime-time address alleging Chinese interference in the 2020 election, but he ultimately insisted on proceeding. Some Republican operatives criticized the speech, arguing that voters are more concerned about the economy and affordability than Trump’s grievances over his defeat. Trump used the address to pressure Republicans to pass the SAVE Act, which would require documentary proof of citizenship to vote but currently lacks sufficient Senate support. Much of the declassified material he presented reportedly reinterpreted information already known to intelligence officials, leading one GOP strategist to say the speech weakened Trump’s legislative push. Despite the criticism, Trump and White House officials publicly celebrated the address and renewed their demand for Congress to pass the bill.
The IRS is expected to take a cut of Spain’s $50 million World Cup prize because income earned on American soil is generally taxable by the United States. Since Spain played seven of its eight matches in the US, as much as $43.75 million could potentially be treated as US-sourced, though the actual allocation may be more complex. Tax exposure can include distributed prize money, endorsements, appearance fees, and other tournament-related earnings, plus state income taxes where games were played. Spain’s tax treaty with the US may reduce double taxation, but exemptions vary by recipient, income type, and distribution arrangements. The final bill remains uncertain, but experts expect every participating team to leave with some degree of US tax exposure.
Spain’s Ferran Torres wore a red “Make Spain Great Again” cap during the national team’s World Cup victory parade in Madrid, apparently parodying President Trump’s political slogan. Torres scored the winning goal against Argentina in the final, where Trump presented Spain with the trophy and remained onstage during the team’s celebration. Critics had also objected to FIFA giving Trump its inaugural Peace Prize and accused him of influencing the reversal of US player Folarin Balogun’s suspension.
Sen. Mitch McConnell’s senior communications adviser, Robert Steurer, declined to answer when asked whether McConnell should release a video statement, beyond the photograph already shared by his office, while hospitalized since June 14.
The Trump administration subpoenaed phone and text-message records belonging to several New York Times journalists and their relatives, including one reporter’s mother, according to the newspaper. The Justice Department was reportedly trying to identify confidential sources behind articles about the security capabilities of Trump’s new Air Force One.
The Trump administration has considered cutting ties with the UN refugee agency, potentially ending US funding and withdrawing from its governing committee, according to sources cited by Reuters. The dispute reportedly centers on UNHCR’s appointment of career US diplomat Tressa Rae Finerty as deputy high commissioner instead of Washington-backed candidate Simon Hankinson. The United States supplied $868 million—roughly a quarter of UNHCR’s funding—in 2025, making a withdrawal especially damaging as the agency confronts near-record displacement and an existing budget crisis. Diplomats and aid organizations have mounted an urgent lobbying campaign, while the State Department says no changes have been made and that US participation remains under review. Aid officials warn that losing American support could threaten both UNHCR’s survival and the wider international refugee-protection system.
The Trump administration suspended disaster-recovery funding for the US Virgin Islands Housing Finance Authority after a HUD investigation alleged widespread mismanagement, fraud, false certifications, and improper payments. HUD says roughly $1.3 billion in congressional aid failed to reach residents, with only $570 million of the territory’s $1.9 billion allocation spent nearly nine years after Hurricanes Irma and Maria. The agency allegedly devoted more than half its grant spending to administrative costs, sought duplicate reimbursement, and completed only two of 95 planned rental-rehabilitation projects while hundreds of other housing projects never began. A former authority executive is serving prison time after inflating a lumber contract, accepting a $107,000 kickback, and allowing the purchased material to become unusable.
Nicaraguan President Daniel Ortega announced that the country would hold no further elections, saying he wants to prevent opposition parties from taking power. He pledged to use the legislature he controls to create legal barriers against political opponents, marking what analysts called Nicaragua’s transition into a full family dictatorship. Ortega and his wife, co-president Rosario Murillo, had already weakened electoral competition by outlawing parties, imprisoning candidates, and extending presidential terms. Their government’s repression since the deadly 2018 protests has driven nearly one million people into exile and left about 50 political prisoners detained. The regime has also revoked hundreds of people’s citizenship and closed thousands of civic organizations, universities, and media outlets.
Sen. Lindsey Graham will be honored next Tuesday with a ceremony in the US Capitol Rotunda and a service at Washington National Cathedral, followed by additional services in South Carolina.
NASA estimates that its Space Reactor-1 Freedom nuclear-powered Mars spacecraft will cost approximately $2.1 billion, excluding the still-unknown cost of its SkyFall science mission. The agency plans to fund the program through its exploration account and reconciliation-bill money while managing a flat overall budget and other priorities, including returning astronauts to the Moon. Targeted for launch in late 2028, the mission would demonstrate nuclear-electric propulsion while carrying three helicopters to study Mars and search for potential water sources. NASA intends to reduce development time and costs by repurposing hardware from its canceled Gateway lunar station and collaborating with the Department of Energy on the reactor. Scientists nevertheless worry that SkyFall’s additional expenses could consume funding intended for other Mars research.
See you soon.
— Aaron
