Middle East conflict and energy shock

Iran expanded its strikes on major energy facilities across the Middle East after Israel reportedly targeted the world’s largest natural gas field and killed a senior Iranian intelligence official. Gulf Arab nations condemned Tehran’s actions as a dangerous escalation, warning that attacks on their energy infrastructure risk pulling them directly into the widening conflict. Iran’s president cautioned that further aggression could trigger uncontrollable global consequences.

The intensifying war has rattled global energy markets. Iran moved to halt traffic through the Strait of Hormuz, a critical route for a significant share of the world’s oil, sending prices sharply higher. In response, the Trump administration eased oil sanctions on Venezuela to boost global supply and temporarily waived shipping restrictions in an effort to curb rising fuel costs, which have reached their highest levels in years.

Political strain at home and abroad

President Donald Trump’s appeals for allied military support in securing key shipping lanes have met resistance in Europe, underscoring strained relations after years of disputes. Meanwhile, the United States intelligence chief told lawmakers that Iran’s leadership remains intact though weakened, and declined to say whether the president had been warned about the broader risks of war.

On the domestic front, political tensions flared across multiple fronts, including a contentious confirmation hearing for the homeland security secretary nominee and a Democratic walkout from a Justice Department briefing on the Jeffrey Epstein investigation. The Federal Reserve held interest rates steady, citing uncertainty tied to the conflict and persistent inflation, while other major developments ranged from new allegations against labor leader César Chavez to a groundbreaking professional women’s basketball labor agreement that could produce the league’s first million dollar players.