The US-Iran ceasefire, in place since June 17, collapsed in late June 2026 after Iran targeted commercial ships in the Strait of Hormuz. The US military responded with two rounds of strikes inside Iran, hitting around 170 targets. The White House formally requested an $87 billion supplemental for Operation Epic Fury, including $21 billion for munitions, $17.3 billion for operational costs, $2.4 billion for drones, $12.1 billion for classified programs, and $5.1 billion for cybersecurity and autonomy. The Pentagon's acting chief financial officer updated the conflict cost to $29 billion, while outside experts place the figure as high as $100 billion. Long-term costs include $250-300 billion for regional base repairs and $250-500 billion in veteran benefits over a decade. President Trump declared the ceasefire over on Truth Social, though diplomatic talks continue.

Background: President Trump resumed military strikes against Iran after the ceasefire collapse, creating political dilemmas for Republicans ahead of midterms. Today: Trump claimed he is Iran's 'No. 1' target amid renewed fighting. Former CENTCOM commander Gen. Frank McKenzie and Ambassador to NATO Matthew Whitaker will discuss military operations on Sunday shows. Trump also fired remaining Democratic members of the Election Assistance Commission, drawing Democratic condemnation.

Background: Iran's former Supreme Leader Ali Khamenei was killed in a US-Israeli airstrike on February 28, 2026, and his funeral procession in Tehran on July 6 drew millions of mourners calling for revenge. Mojtaba Khamenei, who was seriously wounded in the attack that killed his father, succeeded him. On July 11, he issued a statement on his Telegram channel vowing revenge against the 'criminal and dishonorable killers,' stating that 'this revenge is the demand of our nation, and it will most certainly be carried out.' He did not specifically name President Trump but referenced 'these criminals — whose names are known from top to bottom.' In response, President Trump posted on Truth Social that 1,000 missiles are 'locked and loaded' aimed at Iran and that he has ordered the U.S. military to 'completely decimate and destroy all areas of Iran' if any assassination attempt is made. Trump also traveled on the older Air Force One plane rather than the new one from Qatar, reportedly due to security concerns after Israel shared intelligence that Iranian officials had discussed assassinating Trump.

The Clarity Act, a cryptocurrency regulation bill, previously advanced out of the Senate Banking Committee with bipartisan support but now faces a make-or-break moment before the August recess. President Trump publicly urged the Senate to pass the bill in honor of the late Senator Lindsey Graham, who died suddenly from an aortic dissection. Trump's financial disclosures, released late last month, showed he made about $1.2 billion in crypto-related income last year, further inflaming ethics disputes. At least seven Democratic votes are needed, and key hurdles include ethics rules for elected officials, law enforcement concerns over developer liability, stablecoin rewards opposed by the banking industry, and the composition of SEC and CFTC commissioners. The Independent Community Bankers of America launched an advertising campaign against the bill. Senate leadership aims to start floor consideration the week of July 20, but the House is only in session through July 23, shortening the timeline.

US Representative Ro Khanna (D-Calif.) was detained for over an hour in the West Bank by armed Israeli settlers, who were later joined by IDF soldiers. Khanna accused the IDF of siding with the settlers and lying about the incident, while the IDF claimed they dispersed the civilians. Khanna called for an investigation into the soldiers and settlers involved. The incident highlights ongoing tensions between US lawmakers and Israeli authorities over Palestinian-led visits and settler violence.

The U.S. Air Force announced plans to procure more than 11,000 JASSM and LRASM cruise missiles over the next five to seven years, covering Lots 27–33 and 13–19 respectively. The expansion includes new variants JASSM-XR and LRASM-ER. Lockheed Martin has invested over $7 billion to ramp up production capacity, driven by Pentagon demand signals for a potential Pacific conflict and post-Operation Epic Fury reconstitution. This massive procurement reflects the Pentagon's objective of scaling up production of its most critical weapons to wartime-adjacent levels.

Iraqi Prime Minister Ali al-Zaidi, a businessman with no prior political experience, traveled to Washington for his first foreign trip since taking office in May. He met President Donald Trump to discuss energy investment, trade agreements, and a strategic economic partnership, while also seeking to convince the Trump administration he can disarm Iran-backed militias. Key agenda items include increasing oil production to seven million barrels per day over three years, establishing an energy and development fund initially structured on 500,000 barrels per day of oil exports, and securing an IMF loan of up to $8 billion. The Iraqi delegation comprises more than 70 people, including key ministers, the central bank governor, and lawmakers. The visit comes amid tensions over Iran's influence, with the Islamic Resistance in Iraq rejecting the trip and warning against economic occupation. Al-Zaidi faces pressure to disarm Iran-backed militias by a September 30 deadline, matching the departure of the US-led coalition's combat forces. Some armed factions have pledged to disarm, but hardline groups continue to resist. The US has withheld dollar shipments and paused security cooperation to pressure Iraq on militia disarmament. Al-Zaidi also launched a wave of 47 anti-corruption arrests on June 27. Early US support has been strong, but al-Zaidi must show progress on key priorities to maintain the partnership.