Morning Headlines

President Trump met with top advisers to weigh further military escalation in Iran after 13 consecutive nights of US bombing and retaliatory Iranian drone strikes on American bases in Bahrain and Jordan. Oil has topped $100 a barrel for the first time since May as the widening conflict squeezes global energy supplies.

Brazil's Foreign Ministry recalled its ambassador to Argentina for consultations after President Javier Milei called a Brazilian Supreme Court justice a 'bald piece of trash' at a Bolsonaro party convention. The move marks a sharp diplomatic rupture between South America's two largest economies.

Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) introduced the FRONTIER Act, establishing a national risk-based framework for advanced AI, including mandatory independent audits and incident reporting for systems posing catastrophic risk. It is the most substantive federal AI governance legislation introduced to date.

In his Angelus address at Castel Gandolfo, Pope Leo XIV called on all parties to suspend attacks and reopen dialogue, citing mounting civilian casualties in Gaza, the West Bank, and across the broader Middle East conflict zone. The appeal comes as the US–Iran war intensifies and regional violence spreads.

June durable goods orders rose 1.6%, sharply reversing a 4.5% contraction in May, with core non-defense capital goods also beating expectations at 1.4%. The data signals continued business investment and gives the Fed room to hold rates steady, pushing near-term cut expectations firmly to the back half of the year.