The Iran war reignites as Washington's institutions strain at home
Iran suspended its US-mediated talks and threatened to keep the Strait of Hormuz closed after Israel struck Beirut's southern suburbs, with oil jumping more than 5 percent and US forces intercepting two Iranian missiles aimed at Kuwait. At home, former Fed chair Jerome Powell warned that political interference could 'permanently destroy' the central bank's credibility as the Supreme Court weighs Trump's bid to fire Governor Lisa Cook. The State Department prepared grants to reshape European politics, and protests over an ICE detention center forced a curfew in Newark.
Recent events
us95Iran suspends US talks and threatens to keep Hormuz closed over Israel's Lebanon offensive
Iran suspended its US-mediated peace negotiations until Israel halts its operations in Lebanon and Gaza, the IRGC-affiliated Tasnim agency said, with the Revolutionary Guards threatening to open 'new fronts,' keep the Strait of Hormuz closed and 'activate' the Bab el-Mandeb. Oil prices jumped more than 5 percent and equities slid; US forces intercepted two Iranian ballistic missiles aimed at American troops in Kuwait, with no casualties. Foreign Minister Abbas Araqchi warned that 'violation on one front is a violation of the ceasefire on all fronts,' even as the EU urged Israel to stop and Lebanon's speaker said Hezbollah was ready for an immediate ceasefire.
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Iran suspends US talks and threatens to keep Hormuz closed over Israel's Lebanon offensive
Iran suspended its US-mediated peace negotiations until Israel halts its operations in Lebanon and Gaza, the IRGC-affiliated Tasnim agency said, with the Revolutionary Guards threatening to open 'new fronts,' keep the Strait of Hormuz closed and 'activate' the Bab el-Mandeb. Oil prices jumped more than 5 percent and equities slid; US forces intercepted two Iranian ballistic missiles aimed at American troops in Kuwait, with no casualties. Foreign Minister Abbas Araqchi warned that 'violation on one front is a violation of the ceasefire on all fronts,' even as the EU urged Israel to stop and Lebanon's speaker said Hezbollah was ready for an immediate ceasefire.
Iran suspended its US-mediated peace negotiations until Israel halts its operations in Lebanon and Gaza, the IRGC-affiliated Tasnim agency said, with the Revolutionary Guards threatening to open 'new fronts,' keep the Strait of Hormuz closed and 'activate' the Bab el-Mandeb. Oil prices jumped more than 5 percent and equities slid; US forces intercepted two Iranian ballistic missiles aimed at American troops in Kuwait, with no casualties. Foreign Minister Abbas Araqchi warned that 'violation on one front is a violation of the ceasefire on all fronts,' even as the EU urged Israel to stop and Lebanon's speaker said Hezbollah was ready for an immediate ceasefire.
us93Israel orders strikes on Beirut suburbs, captures Beaufort Castle, as ceasefire collapses
Israeli Prime Minister Benjamin Netanyahu on Monday ordered the military to strike Hezbollah targets in Beirut's southern suburbs, prompting thousands of residents to flee. The order came a day after Israeli forces captured the medieval Beaufort Castle in southern Lebanon, their deepest incursion since 2000. The escalation threatens to derail US-brokered ceasefire efforts and Iran-US peace talks.
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Israel orders strikes on Beirut suburbs, captures Beaufort Castle, as ceasefire collapses
Israeli Prime Minister Benjamin Netanyahu on Monday ordered the military to strike Hezbollah targets in Beirut's southern suburbs, prompting thousands of residents to flee. The order came a day after Israeli forces captured the medieval Beaufort Castle in southern Lebanon, their deepest incursion since 2000. The escalation threatens to derail US-brokered ceasefire efforts and Iran-US peace talks.
Israeli Prime Minister Benjamin Netanyahu on Monday ordered the military to strike Hezbollah targets in Beirut's southern suburbs, prompting thousands of residents to flee. The order came a day after Israeli forces captured the medieval Beaufort Castle in southern Lebanon, their deepest incursion since 2000. The escalation threatens to derail US-brokered ceasefire efforts and Iran-US peace talks.
us85US State Department to Issue Grants Aimed at Reshaping European Politics
The US State Department will soon announce grants from its Democracy Fund to reshape European domestic politics, overseen by the Bureau of Democracy, Human Rights, and Labor (DRL). The effort is led by Samuel Samson, 27, who became DRL deputy assistant secretary on May 3 and previously worked at the conservative group American Moment. Critics warn the campaign could strain US-European ties and legitimize fringe views, while the fund had $205.2 million in 2025, with remaining money to be spent by September 2026.
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US State Department to Issue Grants Aimed at Reshaping European Politics
The US State Department will soon announce grants from its Democracy Fund to reshape European domestic politics, overseen by the Bureau of Democracy, Human Rights, and Labor (DRL). The effort is led by Samuel Samson, 27, who became DRL deputy assistant secretary on May 3 and previously worked at the conservative group American Moment. Critics warn the campaign could strain US-European ties and legitimize fringe views, while the fund had $205.2 million in 2025, with remaining money to be spent by September 2026.
The US State Department will soon announce grants from its Democracy Fund to reshape European domestic politics, overseen by the Bureau of Democracy, Human Rights, and Labor (DRL). The effort is led by Samuel Samson, 27, who became DRL deputy assistant secretary on May 3 and previously worked at the conservative group American Moment. Critics warn the campaign could strain US-European ties and legitimize fringe views, while the fund had $205.2 million in 2025, with remaining money to be spent by September 2026.
us78Powell warns political interference could destroy Fed credibility in first speech since leaving chair
Former Federal Reserve Chair Jerome Powell warned Sunday night that a single act of political interference in monetary policy could permanently destroy public trust in the central bank, calling the institution's current situation a "stress test." Accepting the 2026 John F. Kennedy Profile in Courage award in Boston, Powell said the Fed's credibility, built over decades, would be lost if administrations remove officials over policy differences. His remarks come as the Supreme Court weighs a decision on the firing of Fed Governor Lisa Cook, whom President Donald Trump attempted to remove last August.
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Powell warns political interference could destroy Fed credibility in first speech since leaving chair
Former Federal Reserve Chair Jerome Powell warned Sunday night that a single act of political interference in monetary policy could permanently destroy public trust in the central bank, calling the institution's current situation a "stress test." Accepting the 2026 John F. Kennedy Profile in Courage award in Boston, Powell said the Fed's credibility, built over decades, would be lost if administrations remove officials over policy differences. His remarks come as the Supreme Court weighs a decision on the firing of Fed Governor Lisa Cook, whom President Donald Trump attempted to remove last August.
Former Federal Reserve Chair Jerome Powell warned Sunday night that a single act of political interference in monetary policy could permanently destroy public trust in the central bank, calling the institution's current situation a "stress test." Accepting the 2026 John F. Kennedy Profile in Courage award in Boston, Powell said the Fed's credibility, built over decades, would be lost if administrations remove officials over policy differences. His remarks come as the Supreme Court weighs a decision on the firing of Fed Governor Lisa Cook, whom President Donald Trump attempted to remove last August.
us44Oil prices rise as renewed US-Iran hostilities threaten ceasefire; Wall Street remains calm
Background: Oil prices had rebounded on Thursday after Kuwait intercepted Iranian missiles following US strikes on Iranian missile sites and minelaying boats. New development: On Monday, fresh fighting threatened the US-Iran ceasefire, pushing Brent crude up 4.7% to an unspecified level. US stock markets showed minimal reaction, with the S&P 500 down 0.1% from its record high, the Dow dropping 166 points, and the Nasdaq little changed. Technology stocks outperformed, and Treasury yields moved higher. Shares in Science Applications International Corp. surged after reporting quarterly profits above expectations, indicating continued market calm despite geopolitical tensions.
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Oil prices rise as renewed US-Iran hostilities threaten ceasefire; Wall Street remains calm
Background: Oil prices had rebounded on Thursday after Kuwait intercepted Iranian missiles following US strikes on Iranian missile sites and minelaying boats. New development: On Monday, fresh fighting threatened the US-Iran ceasefire, pushing Brent crude up 4.7% to an unspecified level. US stock markets showed minimal reaction, with the S&P 500 down 0.1% from its record high, the Dow dropping 166 points, and the Nasdaq little changed. Technology stocks outperformed, and Treasury yields moved higher. Shares in Science Applications International Corp. surged after reporting quarterly profits above expectations, indicating continued market calm despite geopolitical tensions.
Background: Oil prices had rebounded on Thursday after Kuwait intercepted Iranian missiles following US strikes on Iranian missile sites and minelaying boats. New development: On Monday, fresh fighting threatened the US-Iran ceasefire, pushing Brent crude up 4.7% to an unspecified level. US stock markets showed minimal reaction, with the S&P 500 down 0.1% from its record high, the Dow dropping 166 points, and the Nasdaq little changed. Technology stocks outperformed, and Treasury yields moved higher. Shares in Science Applications International Corp. surged after reporting quarterly profits above expectations, indicating continued market calm despite geopolitical tensions.
us40US and Iran exchange strikes as ceasefire holds; Kuwait intercepts Iranian missiles
Over the weekend, US forces conducted self-defense strikes against Iranian radar and drone command sites in Goruk and Qeshm Island after Iran shot down a US MQ-1 drone over international waters. In retaliation, Iran's IRGC launched ballistic missiles targeting a US airbase in Kuwait, which were intercepted by Kuwaiti air defenses. Kuwait condemned the attacks as a dangerous escalation. The exchanges occurred despite a fragile ceasefire in effect since April 8, as negotiations for a permanent deal remain stalled over disputes regarding the Strait of Hormuz, Iran's nuclear program, and the release of frozen assets. The conflict has disrupted global energy markets and drawn in regional actors, with oil prices rising over 3%.
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US and Iran exchange strikes as ceasefire holds; Kuwait intercepts Iranian missiles
Over the weekend, US forces conducted self-defense strikes against Iranian radar and drone command sites in Goruk and Qeshm Island after Iran shot down a US MQ-1 drone over international waters. In retaliation, Iran's IRGC launched ballistic missiles targeting a US airbase in Kuwait, which were intercepted by Kuwaiti air defenses. Kuwait condemned the attacks as a dangerous escalation. The exchanges occurred despite a fragile ceasefire in effect since April 8, as negotiations for a permanent deal remain stalled over disputes regarding the Strait of Hormuz, Iran's nuclear program, and the release of frozen assets. The conflict has disrupted global energy markets and drawn in regional actors, with oil prices rising over 3%.
Over the weekend, US forces conducted self-defense strikes against Iranian radar and drone command sites in Goruk and Qeshm Island after Iran shot down a US MQ-1 drone over international waters. In retaliation, Iran's IRGC launched ballistic missiles targeting a US airbase in Kuwait, which were intercepted by Kuwaiti air defenses. Kuwait condemned the attacks as a dangerous escalation. The exchanges occurred despite a fragile ceasefire in effect since April 8, as negotiations for a permanent deal remain stalled over disputes regarding the Strait of Hormuz, Iran's nuclear program, and the release of frozen assets. The conflict has disrupted global energy markets and drawn in regional actors, with oil prices rising over 3%.
us38Fed officials warn AI investment risks inflation, productivity gains uncertain
Multiple Federal Reserve officials caution that AI-driven investment is boosting demand and inflation risks, while productivity gains remain uncertain and may take years to materialize. St. Louis Fed President Alberto Musalem and others argue against relying on AI to solve inflation, contrasting with Kevin Warsh's view that AI is disinflationary. Fed Governor Lisa Cook notes AI investment is pushing up prices for chips, equipment, and construction.
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Fed officials warn AI investment risks inflation, productivity gains uncertain
Multiple Federal Reserve officials caution that AI-driven investment is boosting demand and inflation risks, while productivity gains remain uncertain and may take years to materialize. St. Louis Fed President Alberto Musalem and others argue against relying on AI to solve inflation, contrasting with Kevin Warsh's view that AI is disinflationary. Fed Governor Lisa Cook notes AI investment is pushing up prices for chips, equipment, and construction.
Multiple Federal Reserve officials caution that AI-driven investment is boosting demand and inflation risks, while productivity gains remain uncertain and may take years to materialize. St. Louis Fed President Alberto Musalem and others argue against relying on AI to solve inflation, contrasting with Kevin Warsh's view that AI is disinflationary. Fed Governor Lisa Cook notes AI investment is pushing up prices for chips, equipment, and construction.
us36Minnesota Republicans Hold Moment of Silence for Derek Chauvin at State Convention
The Minnesota Republican Party held a moment of silence for Derek Chauvin, the former police officer convicted of murdering George Floyd, at their annual convention in Duluth. State Attorney General Keith Ellison, who led the prosecution, condemned the act as 'profound cruelty' and disrespectful to law enforcement. The gesture reflects Chauvin's emergence as a cause célèbre among right-wing figures, with calls for a presidential pardon.
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Minnesota Republicans Hold Moment of Silence for Derek Chauvin at State Convention
The Minnesota Republican Party held a moment of silence for Derek Chauvin, the former police officer convicted of murdering George Floyd, at their annual convention in Duluth. State Attorney General Keith Ellison, who led the prosecution, condemned the act as 'profound cruelty' and disrespectful to law enforcement. The gesture reflects Chauvin's emergence as a cause célèbre among right-wing figures, with calls for a presidential pardon.
The Minnesota Republican Party held a moment of silence for Derek Chauvin, the former police officer convicted of murdering George Floyd, at their annual convention in Duluth. State Attorney General Keith Ellison, who led the prosecution, condemned the act as 'profound cruelty' and disrespectful to law enforcement. The gesture reflects Chauvin's emergence as a cause célèbre among right-wing figures, with calls for a presidential pardon.