MORNING REPORT

Wednesday, July 8 | By Jared Gans and Sarah Fortinsky

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In today's issue:

▪ Trump says Iran talks are ‘waste of time’

▪ Israel at center of Michigan Senate debate

▪ The race to replace Platner

▪ Democrats seize on One Big Beautiful Bill

Iran MOU falls apart amid escalating tit-for-tat attacks

President Trump said he thinks the memorandum of understanding (MOU) with Iran is “over” after the U.S. traded attacks with Tehran overnight, throwing the future of peace talks into serious doubt.

“As far as I’m concerned, it’s just a waste of time dealing with them. They’re liars,” Trump said in comments to reporters at the NATO Summit in Ankara, Turkey.

“There’s something wrong with them. They’re cuckoo. As far as I’m concerned, it’s over,” he added.

The remarks signal the biggest setback yet for peace negotiations following the MOU that the U.S. and Iran reached last month to try to bring a permanent end to the monthslong war.

Iran’s Islamic Revolutionary Guard Corps launched strikes overnight on U.S. military targets in Kuwait and Bahrain, including Bahrain's Isa Air base, which hosts U.S. forces. That came in response to the Trump administration launching a series of “powerful” strikes against Iran on Tuesday over attacks on at least three commercial ships traveling in the Strait of Hormuz.

The Iranian Foreign Ministry said the U.S. was responsible for the escalation in hostilities. U.S. Central Command said its attacks were designed to “impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians.”

Peace talks between the U.S. and Iran have been on hold this week as Iran holds long-delayed funeral ceremonies for the late Supreme Leader Ayatollah Ali Khamenei, who was killed when the war began at the end of February. He’s scheduled to be buried on Thursday.

Iran warned the U.S. and Israel ahead of the ceremonies not to launch any attacks while the events were going on.

But the British military said the three tankers were struck by Iranian projectiles, the most in a single day since late April, according to the U.N. International Maritime Organization.

One tanker traveling off the coast of Oman caught fire, while two others took some damage but continued on their paths. A U.S. official told CNN that the strikes constituted a “gross violation” of the memorandum of understanding with Iran.

The breakdown in relations will present a difficult task for the intermediaries who have sought to help end hostilities for good, including Qatar and Pakistan.

Anwar Gargash, a top United Arab Emirates presidential adviser, said in a post on the social platform X that the strikes are a “clear indicator that Tehran remains incapable of committing to the requirements of de-escalation and turning the page on war.”

What Trump’s comments mean for any future talks is unclear, but the markets reacted poorly to the developments, with oil prices jumping more than 5 percent early Wednesday morning.

The administration had earlier on Tuesday revoked a sanctions waiver allowing the sale of Iranian oil and petrochemicals after the attacks in the strait.

The sanctions waiver would have allowed the sale of Iranian oil through Aug. 21, but the Treasury Department said transactions authorized under its previous waiver must wind down by July 17.

The Iran MOU was officially signed on June 17, starting a 60-day clock for negotiations on Tehran’s nuclear program. Talks so far have been stuck on reopening the Strait of Hormuz, as Iran has insisted on setting the terms for the waterway, while also demanding an end to Israeli attacks on its proxy Hezbollah in Lebanon.

▪ Al Jazeera: Why strikes have resumed.

▪ CNBC: Threat level in strait raised to ‘severe.’

3 Things to Know Today

A man was fatally shot by U.S. Immigration and Customs Enforcement (ICE) in Houston after officials said he attempted to evade arrest. An agency spokesperson said the man drove his car into an ICE vehicle and was hit by gunfire, dying from his wounds at a hospital.
A federal judge has quashed a Department of Justice subpoena requesting personal information from election workers in Fulton County, Ga., as part of the administration’s probe into the president’s unsubstantiated claims of widespread voter fraud in the 2020 election.
The International Olympic Committee has decided to “provisionally” lift its suspension of Russia’s Olympic teams, setting them on a path to compete at the 2028 Summer Olympics in Los Angeles. Teams were banned from competing under the Russian flag in October 2023, after Russia launched its full-scale invasion of Ukraine.

LEADING THE DAY

CENTER STAGE: The influence of outside spending and Israel were a major focus in Michigan’s Democratic Senate debate Tuesday night as the two remaining candidates sparred over who would best stand up for their constituents.

The debate, hosted by Nexstar affiliate WOOD TV8, featured Rep. Haley Stevens (D-Mich.) and former Wayne County health director Abdul El-Sayed, facing off head-to-head after state Sen. Mallory McMorrow suspended her candidacy on Sunday. The end of McMorrow’s bid set up a direct proxy battle between the two wings of the Democratic Party, and the battle lines were clear on stage.

El-Sayed repeatedly attacked Stevens for out-of-state funding that has backed her campaign, accusing her of being beholden to outside groups instead of Michiganders.

“In this race, you’ve probably seen ad after ad after ad. Not one of those ads was brought to you by the congresswoman’s campaign,” he said. “All of them brought to you by corporate PACs and [American Israel Public Affairs Committee] trying to buy a politician who’s going to do their bidding instead of yours.”

United Democracy Project, a super PAC affiliated with AIPAC, is spending significant money to boost Stevens, who has had a reputation in Congress as being supportive of Israel.

Stevens pushed back, noting that she has been critical of Israeli Prime Minister Benjamin Netanyahu, who had criticized her in a CNN interview earlier on Tuesday. Netanyahu accused Stevens of trying to “excuse antisemitism” in response to her earlier comments saying he had made Jews “less safe.”

Stevens also sought to go on the offensive against El-Sayed.

“The difference between my opponent and myself on this issue is that I believe in a two-state solution. I can say that Israel has a right to peacefully exist alongside the people of Palestine and in Gaza,” she said, referring to an interview El-Sayed gave in which he avoided questions over whether Israel should exist.

▪ The Hill: Key takeaways as El-Sayed, Stevens tangle.

ON YOUR MARKS: The race to potentially replace Graham Platner as the Democratic nominee for the Maine Senate contest is off to a heated start, even as Platner still hasn’t said whether he will end his candidacy after an accusation of sexual assault.

Maine Democratic Party Executive Director Devon Murphy-Anderson said Tuesday that Platner’s campaign has sought to influence the outcome of who takes his place.

“Unfortunately, Graham Platner’s team has repeatedly reached out to us in an attempt to put their thumb on the scale of what this process looks like,” Murphy-Anderson said in a video posted online. “We have repeatedly reiterated to Graham Platner’s team that they have no role in determining our next Democratic nominee for the U.S. Senate, nor in determining what this process looks like.”

When reached for comment, Platner’s campaign said in a statement that it had “reached out to the party to try and understand what this process would look like.”

“At no point has the campaign tried to ‘put its finger on the scale,’” the statement continued. “Over 150,000 Mainers voted for this movement, and over 15,000 Mainers volunteered their time and energy to it.”

Former Maine Senate President Troy Jackson (D), just off an unsuccessful run for governor, took an official step toward entering the race Tuesday as he formed an exploratory committee for the race.

A fellow endorsee of Sen. Bernie Sanders (I-Vt.), Jackson will look to rally progressive support but may also headwinds due to his ties with Platner.

Other potential replacements include Nirav Shah, another failed gubernatorial candidate who served as the director of the Maine Center for Disease Control and Prevention, Maine Secretary of State Shenna Bellows and former Senate candidates Dan Kleban, a Maine Beer Company co-founder, and Jordan Wood, a former congressional chief of staff. Maine Gov. Janet Mills (D), who dropped out of her primary race with Platner, is also in the conversation.

▪ The Washington Post: Platner ex-girlfriend said he removed condoms without consent.

▪ The Hill: Who could replace Platner if he drops out.

▪ The Hill: Democrats scramble to save winnable Senate race.

TURKISH EMBRACE: President Trump told reporters Tuesday that the U.S. would be removing sanctions on Turkey, which could pave the way for his administration to resume selling F-35 fighter jets to the country.

Trump made the comments during a bilateral meeting with Turkish President Recep Tayyip Erdoğan in Ankara, on the sidelines of the NATO summit, amid growing pushback to reports that the U.S. president plans reverse his ban on selling Turkey F-35s.

“We’re going to be taking the sanctions off. OK?” Trump said, responding to a question asked in Turkish, presumably meant for Erdoğan.

“I don’t want him to waste his time answering his question because we’re working closely with [Secretary of State] Marco Rubio … [Treasury Secretary] Scott Bessent, [Defense Secretary] Pete [Hegseth] and everyone else. It’s time to do that,” Trump continued.

Trump had enacted a ban on Turkey’s access to the jets during his first administration. The president’s move has been met with criticism at home and abroad, including from Netanyahu.

▪ The Hill: Five NATO flash points as Trump meets anxious allies in Turkey

▪ Reuters: NATO showcases big arms deals.

'FULLY ENGAGED’: Sen. Mitch McConnell (R-Ky.) has spoken with Senate Republican leaders amid mounting speculation about his condition as he’s remained hospitalized for more than three weeks.

A spokesperson for Senate Majority Leader John Thune (R-S.D.) said he and McConnell had a “lengthy and substantive conversation” on Monday, discussing a “variety of topics, including national security.” McConnell then spoke with Senate GOP Whip John Barrasso (R-Wyo.) on Tuesday, according to a Barrasso spokesperson.

“Sen. McConnell was fully engaged and is eager to get back to the Senate,” they said.

The accounts seem to undercut rumors that McConnell’s health condition may be considerably worse than has been disclosed. The longtime senator, who is retiring after this year, was hospitalized on June 14, but his office hasn’t shared more about what caused the hospitalization or his condition.

Speculation spiked about whether McConnell would be returning to the Senate after emergency dispatch audio surfaced indicating that paramedics encountered an unconscious person at McConnell’s address and administered CPR.

▪ Louisville Courier Journal: Silence lets ‘rumor mill control the narrative.’

BLANCHE BLOWBACK: More than 1,200 former employees at the Department of Justice (DOJ) signed onto a letter urging senators to reject acting Attorney General Todd Blanche’s nomination to take on the role permanently.

In the letter, the employees focused on “Blanche’s degradation of DOJ’s apolitical career workforce,” accusing the acting chief of overseeing hundreds of firings “for improper, unlawful reasons,” as he worked to shape the department to reflect Trump’s priorities. Under Blanche, the former employees alleged, workers were fired for working on cases Trump didn’t like, being related to Trump’s foes, for declining to take on “vindictive prosecutions” and for refusing to lie in court.

Blanche’s hearing before the Senate Judiciary Committee is scheduled for July 15, and his nomination can lose no more than one GOP member’s vote to be able to reach the Senate floor, assuming all Democratic members vote against Blanche.

Senate Judiciary Committee members Thom Tillis (R-N.C.) and John Cornyn (R-Texas) both met with Blanche in June, characterizing their interactions as “positive” but declining to make a decision on their vote until after the nomination process.

Other swing-vote GOP senators, such as Sens. Lisa Murkowski (Alaska) and Bill Cassidy (La.), have avoided saying publicly how they would vote if the nomination made it to the Senate floor.

▪ The Detroit News: DOJ to send election monitors to three Michigan cities.

▪ NBC News: An FBI news conference 10 years ago changed America.

WHEN & WHERE

The president will participate in bilateral meetings with Ukrainian President Volodymyr Zelensky at the NATO Summit at 7:30 a.m. EDT and with Syrian President Ahmed al-Sharaa at 8:30 a.m. EDT. He will hold a press conference at 9:15 a.m. EDT and then depart Ankara, Turkey, to return to the White House.
The House and Senate are out.

ZOOM IN

ONE BIG COUNTERATTACK: Democrats are seeking to use the Republicans' One Big Beautiful Bill Act against the GOP as they seek to retake control of Congress in the midterms.

The Hill’s Helen Huiskes reports Democratic candidates in the most competitive Senate races are slamming their Republican opponents for their support for the massive tax cut and spending package. The legislation was controversial over its expected cuts to Medicaid coverage and food assistance for Americans but was backed by almost every congressional Republican.

The party has emphasized the tax cuts in the law as a major win for the working class. But Democrats are now pointing to the number of people who lost Medicaid or food assistance benefits and the hospitals or clinics that have been closed as they attack Republicans for complicity in the law’s passage.

“Across the country, Americans are living with higher costs, less health care, and looming threats of hospital closures because Senate Republicans sold them out by slashing health care to fund tax giveaways to billionaires and corporations who are driving up costs on everyday life,” said Maeve Coyle, a spokesperson for the Democratic Senatorial Campaign Committee, in a statement. “Come November, voters will reject the Republican candidates who voted for this devastating plan.”

The law is the biggest legislative achievement of Trump’s second term, but the administration struggled to sell it to the public, attempting to rebrand it as the Working Families Tax Cut Act.

An analysis from The Washington Post found Democrats are talking more about the law than Republicans. The GOP’s mentions of the package have slowly declined since Trump signed it into law one year ago.

▪ CBS News: Winners and losers from the bill.

ELSEWHERE

RIGHT MOVES: Two major right-wing European leaders were in the news Tuesday as they hope to become the leaders of their countries in the next year or sooner.

French far-right leader Marine Le Pen, the head of the National Rally party, won a victory Tuesday as an appeals court allowed her to go forward with running for president in next year's election. Le Pen previously faced a five-year ban on running for public office following her conviction on embezzlement charges.

The appeals court upheld the guilty verdict against her and 10 others, finding they embezzled nearly 3 million euros designated for European Parliament staff to pay party officials. But Le Pen’s sentence was reduced from four years in prison with two of them suspended to three years in prison with two suspended.

Her ban on seeking office was also reduced to 45 months, which will allow her to stand for the presidential election with the time she’s already served. One condition for the reduced sentence is that Le Pen wears an electronic monitoring device, which she said she will appeal to the country’s highest court.

“Tonight, I am a candidate for the presidential election,” Le Pen said in an interview Tuesday evening.

Also facing legal scrutiny, Reform UK leader Nigel Farage announced Tuesday that he will step down from his seat in the British Parliament and run for reelection in a special election in an effort to clear his name. Farage faces allegations that he accepted undeclared and possibly illegal donations.

An investigation finding he committed wrongdoing could have resulted in Farage being suspended or expelled from Parliament, but his gambit aims to circumvent that.

Instead, he will seek vindication electorally, maintaining that he hasn’t committed any wrongdoing.

“The people of Clacton should be the judges of my actions,” Farage said. “This will be a people versus the establishment by-election.”

Farage will be the clear favorite to win reelection, but his resignation might only delay his problems, as the inquiry will likely resume if he wins.

Farage’s chances of becoming prime minister have spiked this year as his right-wing Reform party has surged in polls and the Labour government has gone in the opposite direction.

But with U.K. Prime Minister Keir Starmer stepping down and the popular former major of Manchester Andy Burnham set to take his place, the political tide may turn against the embattled Farage in the months ahead.

▪ The Guardian: Why Le Pen is running.

▪ NBC News: Prince Harry loses privacy case against tabloid publisher.

OPINION

Return-to-office mandates are a pay cut in disguise, Gleb Tsipursky writes in The Hill.
Why the CDC refusing to publish covid vaccine research is so worrying, Leana S. Wen writes in The Washington Post.

THE CLOSER

And finally … Andrew Gillum, the 2018 Democratic nominee for governor in Florida, has been arrested on drug charges, according to recently reviewed jail records.

Records show officers arrested Gillum in Alabama shortly before midnight on July 2. He was charged with possession of dangerous drugs, use or possession of drug paraphernalia and possession of marijuana. He was booked and released the next day.

This is the latest legal issue for Gillum, who was indicted in 2022 on charges of wire fraud and making false statements to the FBI. He was found not guilty of making false statements, and the remaining charges were ultimately dropped.

Gillum is the former mayor of Tallahassee, Fla. He lost his 2018 gubernatorial bid to Florida Gov. Ron DeSantis (R) by the slimmest margin in any governor’s race in the state since 1916, falling short by fewer than 34,000 votes.