Balm — Tuesday, August 4, 2026 PM

US and Iran Report Progress Toward Strait of Hormuz Reopening Deal; Oil Prices Fall

US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent said negotiations have advanced toward an agreement to reopen the Strait of Hormuz, through which a significant share of global oil shipments pass. Oil prices fell on the news. The United States and Iran, with Oman as intermediary, reported meaningful progress Tuesday toward a deal that would reopen the Strait of Hormuz, the narrow waterway at the entrance to the Persian Gulf through which roughly a fifth of the world's oil supply travels. US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent both confirmed that talks had advanced, with Rubio saying a deal could come 'very shortly.' Oil prices dropped on the reports, reflecting market expectations that a resolution could restore normal shipping flows. Under the framework taking shape, ships would enter the Persian Gulf through an Iranian-controlled route and exit through a separate route, according to regional officials. Iran's president, Masoud Pezeshkian, has faced pressure from domestic hardline factions opposed to any agreement with the United States, and was forced to deny reports that he threatened to resign during negotiations over the deal. The Strait's closure has disrupted global energy markets since the conflict between Israel and Iran-backed forces escalated, driving up fuel costs for American consumers and businesses. Any agreement to reopen the waterway would represent a significant diplomatic development with direct consequences for energy prices worldwide.

US Army Long-Range Missile Stockpiles Severely Depleted After Iran Conflict, Reports Say

Reports indicate the US Army has used nearly all of its ATACMS and PrSM long-range missile stocks during the Iran conflict. Separately, production of Patriot interceptors is running far behind the rate at which the US and its partners are consuming them in both the Middle East and Ukraine. The Iran conflict has placed severe strain on US military missile stockpiles, according to multiple reports. The Army has burned through virtually all of its ATACMS and PrSM long-range strike missile supplies, raising concerns among defense planners about the country's capacity to respond to additional conflicts elsewhere. Separately, Patriot missile interceptors — the primary US and allied system for shooting down incoming ballistic missiles — are being consumed in both Ukraine and the Middle East at rates that far exceed current production capacity. Russia and Iran have been firing ballistic missiles at rates the Patriot production lines cannot keep pace with. Ukraine has formally requested 300 additional Patriot interceptors from its partners. The dual-front demand on US defense stockpiles is a significant strategic concern: weapons production timelines are measured in years, not months, meaning resupply cannot be rapid even if funding is approved. The Trump administration has responded publicly to the ATACMS and PrSM depletion reports, though the nature of that response was described only in general terms by available sources. These developments come as diplomatic talks over the Strait of Hormuz are ongoing and the Ukraine conflict continues without a resolution.

Russia and Ukraine Trade Drone Strikes; Five Killed on Each Side

Russian and Ukrainian forces exchanged drone attacks, killing five people in each country. Ukrainian strikes hit multiple facilities operated by Russia's largest online retailer in St. Petersburg, Tver, and the Moscow region. Russia and Ukraine conducted large-scale drone attacks against each other on Tuesday, with five deaths reported in each country. Ukrainian drones struck multiple warehouses and distribution centers belonging to Wildberries, Russia's largest e-commerce retailer, hitting sites in the Moscow region, St. Petersburg, and Tver. Russian strikes caused casualties in Ukraine. The United Nations children's agency issued a statement urging both countries to uphold international humanitarian law requiring the protection of children, citing recent deaths in Russia's Belgorod and Krasnodar regions as well as Ukraine's Dnipropetrovsk and Sumy regions. The exchange represents the continued pattern of long-range drone warfare that has characterized the conflict in recent months, with both sides targeting infrastructure and economic assets far from the front lines.

Video Shows Russian Drone Pursuing Ukrainian Civilian; Ukraine Calls It a War Crime

Video footage circulated showing a Russian drone chasing a Ukrainian street vendor. Ukraine's government said the incident constitutes a war crime under international humanitarian law. Ukraine's government said a video showing a Russian drone pursuing a civilian street vendor amounts to a war crime, calling on international bodies to take note of the incident. The footage, which was verified and reported by multiple outlets, shows a person being chased by a remotely piloted drone in what Ukrainian officials described as a deliberate targeting of a non-combatant. The incident adds to a documented pattern of drone use against civilians that has drawn repeated international condemnation. Ukraine has called the tactic a violation of international humanitarian law, which prohibits the deliberate targeting of civilians in armed conflict.

US Revokes Visa of Brazil's Ambassador in Diplomatic Dispute with Lula Government

The Trump administration revoked the visa of Brazil's ambassador to the United States, escalating a diplomatic dispute with President Luiz Inácio Lula da Silva after repeated delays intended to give Lula room to stand down. The Trump administration revoked the diplomatic visa of Brazil's ambassador to the United States on Tuesday, a significant escalation of an ongoing dispute with Brazilian President Luiz Inácio Lula da Silva. Officials said the step had been delayed multiple times to provide Lula an opportunity to change course, but that he did not do so. The nature of the underlying dispute between the two governments was not fully detailed in available sources, but the visa revocation represents one of the more serious diplomatic measures the US can take short of severing relations. Brazil is the largest economy in Latin America and a significant US trade and diplomatic partner, making the deterioration of relations consequential for regional stability and economic ties.

PBS NewsHour

Spain Returns 70,000 Migrants to Morocco After Mass Crossing at Ceuta

Spain says approximately 70,000 of the 72,000 people who crossed illegally into the enclave of Ceuta last week have been returned to Morocco. Spanish intelligence officials said Morocco allowed border controls to gradually relax ahead of the crossing. Spanish authorities reported that roughly 70,000 of the estimated 72,000 people who crossed illegally into Ceuta — a Spanish enclave on the northern coast of Morocco — during a surge last week have been returned to Morocco. Spain also reported 72 deaths related to the crossing. Spanish intelligence officials said Morocco had allowed border controls to relax gradually in the period preceding the mass crossing, an accusation that points to tensions between Madrid and Rabat over migration management. The European Union commended Spain's handling of the situation. Ceuta has been a recurring flashpoint in European migration politics because of its unique geography as a European territory accessible by land from Africa, making it a focal point for people attempting to reach the EU from North Africa.

Supreme Court Adds Climate Change and Immigration Detention Cases to October Term

The Supreme Court announced it will hear cases in its October term involving climate change liability and immigration detention, among other significant disputes. The Supreme Court announced the cases it will hear when its October term begins, including significant disputes involving climate change and immigration detention. The addition of a climate case continues a pattern of the court weighing in on the extent to which states, cities, and the federal government can regulate or litigate around greenhouse gas emissions. The immigration detention case touches on questions about the government's authority to hold individuals in custody and the procedural rights of those detained. The court's docket for a given term typically shapes legal and policy landscapes for years, as its rulings set binding precedent across all lower courts. Further details on the specific parties and precise legal questions in each case were not fully described in available source material.

SCOTUSblog

Trump and Senate Majority Leader Thune at Odds Over SAVE America Act and August Recess

President Trump is pressing the Senate to cancel its August recess and pass the SAVE America Act, which would require proof of citizenship to vote. Senate Majority Leader John Thune has declined, though he confirmed Trump called him twice in one morning as negotiations continue. A standoff has developed between President Trump and Senate Majority Leader John Thune over both the timeline for passing the SAVE America Act and whether the Senate should forgo its August recess. The SAVE America Act would require proof of citizenship as a condition of voter registration, a measure that has become a central priority for the Trump administration. Trump has publicly pushed for the Senate to remain in session until the bill passes, while Thune has declined that request. Thune confirmed that Trump called him twice in a single morning, pushing back on characterizations that their working relationship had broken down entirely. The dispute illustrates the ongoing friction between the White House and Senate Republican leadership over legislative strategy, even as both sides share the same broad policy goals.

Appeals Court Rules EPA Cannot Block Billions in Climate Grants Approved Under Biden

A federal appeals court ruled that the Environmental Protection Agency cannot block billions of dollars in climate grants that were approved during the Biden administration and frozen by the Trump administration early in its second term. A federal appeals court ruled Tuesday that the Environmental Protection Agency does not have the authority to freeze billions of dollars in climate-related grants that were awarded under the Biden administration. The funds had been frozen since the early weeks of President Trump's second term. The ruling means the EPA must allow the grants to proceed, at least until further legal proceedings determine a final outcome. The grants were part of the Biden administration's climate spending programs, and their freezing was part of a broader effort by the Trump administration to halt or reverse climate-related federal spending. The decision is likely to be appealed, and the ultimate fate of the funding will depend on further court rulings or congressional action.

The New York Times

House Ethics Committee Opens Investigation into Domestic Abuse Allegations Against Rep. Max Miller

The House Ethics Committee opened an investigation into domestic abuse allegations against Ohio Representative Max Miller. Miller had previously requested the inquiry himself, saying he wanted to clear his name. The House Ethics Committee announced Tuesday it has opened a formal investigation into domestic abuse allegations against Representative Max Miller of Ohio. Miller had preemptively called for the investigation, saying the inquiry would clear him of allegations made by his former wife. The allegations have become a significant factor in a competitive House race, with Ohio Republican Senator Bernie Moreno publicly stating he considers Miller a risk. The Ethics Committee investigation will proceed independently of Miller's own request and will follow standard congressional investigative procedures. The committee's findings, which can take months, carry significant political weight but do not carry the force of criminal law.

Jay Clayton Sworn In as Director of National Intelligence

Jay Clayton was sworn in as the United States Director of National Intelligence. His Senate confirmation hearing was contentious, in part because he declined to directly state that Donald Trump lost the 2020 presidential election. Jay Clayton was sworn in as the United States Director of National Intelligence on Tuesday, with Treasury Secretary Scott Bessent administering the oath of office. Clayton, a former chairman of the Securities and Exchange Commission, faced a contentious Senate confirmation process in which he declined to directly acknowledge that Donald Trump lost the 2020 presidential election. The Director of National Intelligence oversees the country's 18 intelligence agencies and serves as the principal intelligence adviser to the president. Clayton's confirmation and swearing-in complete a significant appointment to one of the most sensitive positions in the executive branch.

The Guardian

S&P 500 Rises to Record High as Middle East and AI Concerns Ease

The S&P 500 rose 1.8 percent to a record high on Tuesday, surpassing its previous peak from early June and extending a recovery from a recent technology stock decline. US stock markets reached a record high Tuesday, with the S&P 500 gaining 1.8 percent and pushing past the peak it set in early June. The advance reflected reduced investor anxiety on two fronts: diplomatic progress in the Middle East toward a potential Strait of Hormuz agreement, which drove oil prices lower, and easing concerns about near-term risks in the artificial intelligence sector following a stretch of mixed earnings reports. The record marks a significant turnaround from a period of volatility in technology stocks earlier this year. Lower oil prices, driven by Hormuz deal expectations, also contributed to the positive market sentiment by reducing anticipated inflation pressure.

The New York Times

Eight Major Oil Companies Report Combined $93 Billion in Quarterly Profits as Energy Prices Soar

Eight of the world's largest oil companies reported a combined $93 billion in profits for the most recent quarter, driven by elevated energy prices tied to the Iran conflict and supply disruptions. Eight major oil and gas companies recorded combined profits exceeding $93 billion in the most recent quarter, according to a review of their financial results. The windfall was driven by elevated energy prices stemming from supply disruptions associated with the conflict involving Iran, which has affected flows through the Strait of Hormuz and driven up global oil costs. The results have renewed calls from some policymakers and advocacy groups for windfall profit taxes on energy companies. The companies named in available source material included Saudi Aramco and other major international producers. For American consumers, high energy prices have translated into elevated costs for gasoline and home heating, and have contributed to broader inflationary pressure throughout the economy.

The Guardian

SpaceX Reports $7.8 Billion in Second-Quarter Revenue in First Earnings Since IPO

SpaceX reported $7.81 billion in second-quarter revenue, up 92 percent year over year, in its first earnings report since going public. The company's capital expenditures increased nearly sevenfold as it pours money into AI, rocket development, and Starlink satellites. SpaceX released its first public earnings report following its initial public offering, revealing second-quarter revenue of $7.81 billion — a 92 percent increase compared to the same period a year earlier — which exceeded Wall Street expectations. The results offer the first detailed public look at the financial performance of the Elon Musk-led rocket and satellite company, which operates the Starlink broadband satellite network and is the primary launch provider for NASA and many commercial customers. Capital expenditures jumped nearly sevenfold from the prior year, reflecting heavy investment in artificial intelligence, new rocket development, and Starlink satellite production. Despite the strong revenue growth, the company's stock price has drifted lower since its IPO, reflecting investor scrutiny of its aggressive spending pace. Executives described the investment as necessary to maintain the company's lead in the rapidly evolving space and satellite market.

The Guardian

Apple Files Legal Challenge Against UK Government Demand for Access to Encrypted User Data

Apple has filed a new legal challenge against a UK government order requiring access to its customers' encrypted data, one year after the Home Office dropped a previous such request. Apple launched a legal challenge last month at the UK's Investigatory Powers Tribunal against a Home Office order requiring the company to provide access to highly encrypted customer data. The challenge follows a prior episode in which the Home Office issued a similar demand and subsequently abandoned it after Apple threatened to withdraw encrypted services from the UK market. The new legal action signals that the underlying dispute between Apple and UK authorities over encryption access has not been resolved. The case has significant implications for the privacy of data stored by Apple users in the United Kingdom and could set legal precedent affecting how governments worldwide can compel tech companies to undermine encryption protections. The Investigatory Powers Tribunal is a specialized court that handles cases involving surveillance and intelligence activities by UK authorities.

The Guardian

Trump Administration Drafting Ban on Chinese Datacenter Component Imports

The Trump administration is reportedly drafting regulations that would ban US imports of new models of Chinese-made datacenter components, according to four people familiar with the matter. The Federal Communications Commission is involved in developing the rules. The Trump administration is preparing a ban on US imports of new models of Chinese datacenter components, according to four people familiar with the matter cited in reporting. The Federal Communications Commission is reported to be involved in drafting the measure. The move reflects growing concern among US officials about the pace of China's artificial intelligence development and the role Chinese-made hardware might play in AI data infrastructure. Datacenter components are the physical building blocks of cloud computing and AI systems, including networking equipment and servers. A ban on new Chinese models would force US datacenter operators to source from American or allied-country manufacturers, a shift that could affect cost and availability. The measure would be the latest in a series of steps the US has taken to limit China's access to advanced semiconductor technology and to restrict Chinese technology from US critical infrastructure.

The Guardian

Eastern Washington Wildfires Destroy 600 Structures and Force 60,000 to Evacuate Near Spokane

Wildfires in eastern Washington state around Spokane have destroyed at least 600 homes, businesses, and other structures and forced approximately 60,000 residents to evacuate. A man has been charged with first-degree arson in connection with the largest of the fires. Wildfires burning in eastern Washington state, centered around the Spokane area, have destroyed at least 600 structures and forced an estimated 60,000 people to evacuate, authorities reported. The fires have stretched the capacity of both federal and local firefighting agencies. One man was arrested and charged with first-degree arson in connection with the Old Trails fire — the largest of the blazes — which had consumed nearly 4,000 acres. Authorities allege the individual, Aaron Farinacci, 37, of Spokane, started the fire. Wildfires are also burning in Oregon, where ranchers have been forced to evacuate cattle from grazing land that underpins their livelihoods. The fire season in the Pacific Northwest has been described as extremely active, placing significant pressure on agricultural operations and emergency management resources across the region.

Guardian Environment