US and Iranian officials, working through Omani mediation, say they are in the “final stage” of drafting a deal to reopen the Strait of Hormuz, which has been largely closed during the five‑month‑old Iran war. The strait previously carried about a fifth of the world’s traded oil and gas.
Negotiators report that a draft agreement is finalized and awaiting approval from Iran’s Supreme Leader Mojtaba Khamenei. The arrangement, as described, would establish Iran‑ and Oman‑controlled shipping routes and associated service fees, a structure Washington opposes.
President Trump has said a deal could be announced “tomorrow or the next day,” calling it Iran’s “last chance” to avoid renewed large‑scale US strikes. The war, launched by the US and Israel on February 28, has not toppled Iran’s government or ended its nuclear program and has become increasingly unpopular in the US amid high fuel prices and strain on munitions.
In southern Lebanon, two Israeli soldiers were killed and four were seriously wounded in an explosion. These are the first Israeli military deaths since a fragile June truce with Hezbollah, raising fears that the Lebanon front could again escalate.
In Yemen, Iran‑aligned Houthi rebels claim ballistic‑missile attacks on Saudi oil tankers in the Red Sea and Gulf of Aden. A vessel reported a nearby explosion, but there has been no detailed confirmation from Saudi authorities.
Western maritime authorities report continuing attacks and near‑misses on shipping in the region. This means that even if a Hormuz deal is reached, overall risks to energy flows and maritime traffic remain high.
The S&P 500 slipped 0.2% after reaching a record the previous day. AI‑linked technology stocks weighed on the index, though broader markets remain close to all‑time highs.
Traders are positioning for a possible Hormuz agreement that could stabilize oil supplies. Brent crude is around $79–80 a barrel after having spiked above $100 earlier in the conflict, contributing to higher inflation.
The Federal Reserve has kept interest rates steady, but markets expect at least one rate hike before the end of 2026, as energy‑driven price pressures continue.
At a lengthy appearance in a Las Vegas casino, President Trump promoted tax cuts on tips and overtime pay and revived talk of a “Great Healthcare Plan” centered on expanded health savings accounts. He again claimed the Iran war will soon end and suggested the US might “have to” push oil prices higher.
The administration’s move to terminate Temporary Protected Status for Haitians in the US has now taken full effect for about 350,000 people after a June 25 Supreme Court ruling cleared the way. Many affected Haitians lose legal work authorization and face potential removal.
The US has revoked the visa of Brazil’s ambassador in a tit‑for‑tat dispute involving visas for American diplomats and the stalled confirmation of Trump’s preferred ambassador to Brasília. Brazilian President Luiz Inácio Lula da Silva has denounced the US move as “irresponsible.”
The Federal Aviation Administration is investigating a potential safety lapse at Reagan National Airport after a commercial jet took off as Marine One was departing nearby with President Trump aboard. The incident appears to conflict with tighter procedures adopted following a fatal midair collision in 2025.
Abdul El‑Sayed, a progressive former public‑health official, narrowly defeated Rep. Haley Stevens in Michigan’s Democratic US Senate primary. Sen. Bernie Sanders described the result as one of the most “extraordinary” victories in modern American politics. Turnout exceeded previous Senate and gubernatorial primaries in the state.
El‑Sayed backs Medicare for All and an end to US military aid to Israel. He will face Republican former Rep. Mike Rogers in November, in a contest expected to be central to control of the Senate. Outside groups including AIPAC spent over $60 million supporting Stevens, and Republicans and pro‑Israel groups are already signaling major spending against El‑Sayed in the general election.
In Washington state, firefighters have made progress against the Old Trails Fire near Spokane, which forced tens of thousands to evacuate after the blaze jumped the Spokane River. Authorities arrested a 37‑year‑old man accused of starting the fire. Senators have been briefed that the region could face one of the worst fire seasons in state history.
Separately, arrests were made in California in connection with a major wildfire that officials link to allegedly unsafe use of equipment.
Across Europe, gale‑force winds and extreme heat are fueling a major wildfire crisis. West of Athens, two firefighting helicopters collided, killing one Greek and one Danish crew member.
Large fires in France’s Gironde region and Provence, along with deadly blazes in Spain, have driven roughly 300,000 people from homes and vacation areas. Officials report that more than 1,170 square kilometers have burned in France so far this year, described as part of a broader pattern of climate‑driven wildfire risk.
AP reporting highlights that the closure of the Strait of Hormuz and continued attacks on shipping have driven up global prices for fuel, fertilizer, and other essentials, reshaping inflation patterns and trade flows worldwide.
US exports are up about 12% in value this year, largely because higher energy and commodity prices have boosted export revenues even as real export volumes remain under pressure.
With US midterm elections approaching, President Trump faces rising domestic pressure over gasoline prices and war fatigue. US allies in the Gulf have urged him to avoid further escalation as negotiations over Hormuz move forward.
All items summarized from Associated Press reporting cited in the prompt (apnews.com).