The Latest: US and Iran trade strikes for second day, pushing Middle East closer to full-scale war

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The U.S and Iran traded strikes for a second day, pushing the Middle East closer to the resumption of a full-scale war.

It was the third time this week that back-and-forth strikes have rattled the Middle East. The first involved attacks between Iran and Israel, followed by the two rounds of fire between the U.S. and Iran, which hit countries in the region that host American bases.

Meanwhile, when asked about the new report that the consumer price index in May had jumped 4.2% over the last year, President Donald Trump showed how he had learned to stop worrying about inflation and simply, in his own words, “love” it. Trump didn’t dismiss the affordability issue as a “hoax” that was started by Democrats, as he’s done previously. Nor did he claim he was bringing down the cost of living.

Here’s the latest:

A federal judge on Wednesday rejected a government watchdog’s request for a court order temporarily blocking the Trump administration from forging ahead with a new $1.776 billion settlement fund for compensating people who claim to be victims of a weaponized government.

But the judge ended a hearing by issuing a “fair warning” to Trump’s administration: “Don’t play possum with this court,” U.S. District Judge Richard Leon told a government attorney.

Leon ruled from the bench in favor of the administration, which argued that the watchdog’s lawsuit is moot because acting Attorney General Todd Blanche told Congress earlier this month that the government is scrapping its plans for the fund. Leon, who was nominated to the bench by Republican President George W. Bush, said he accepts Blanche’s representation for now.

The judge’s refusal to issue a temporary restraining order isn’t the final word on the fate of the government’s “Anti-Weaponization Fund.” Leon said he will consider a separate request by the plaintiffs – Citizens for Responsibility and Ethics in Washington – for a preliminary injunction that would block payouts from the fund on a more permanent basis.

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A rare lapse in a law that allows the U.S. to gather intelligence abroad is growing more likely after Trump resisted calls from Republicans and Democrats on Capitol Hill to immediately name a permanent head of the nation’s intelligence agencies.

Trump has doubled down on his temporary pick for director of national intelligence, Federal Housing Finance Regulator Bill Pulte, even though he has little experience for the job. Democrats say they won’t support the renewal of Section 702 of the Foreign Intelligence Surveillance Act, known as FISA, unless the president withdraws Pulte’s appointment and nominates a permanent replacement.

The House will try early Thursday to approve a short-term FISA extension, but passage is unlikely. The Senate may follow suit, hoping to prevent what could be an unprecedented lapse in the surveillance tool.

The impasse could soon result in limitations on what intelligence the U.S. government can collect abroad just as World Cup games begin in cities around the country and ahead of celebrations for the nation’s 250th anniversary. The law expires on Friday at midnight.

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Trump’s planned UFC fight on the White House’s South Lawn has required a monumental effort from more than seven federal agencies, hundreds of staff working onsite daily and at least $60 million, according to a legal filing that offers a glimpse into the preparations.

The event is part of the 250th anniversary of America’s founding, and is scheduled for the weekend with the main attraction – seven mixed martial arts matches – on Sunday.

That is, if a judge doesn’t halt the proceedings, which is sought by two Virginia residents in a federal lawsuit against the National Park Service, which oversees the South Lawn.

The agency filed a rebuff of the request Tuesday in court, and, in it, laid out the operations for the event.

“Well over $60 million and tens of thousands of hours of labor have been expended,” the document read, adding that the money came from the UFC and groups affiliated with it.

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Trump Wednesday showed how he had learned to stop worrying about inflation and simply, in his own words, “love” it.

Asked about the new report that the consumer price index in May had jumped 4.2% over the last year, the president took a surprisingly optimistic tack with the challenging news. Trump didn’t dismiss the affordability issue as a “hoax” that was started by Democrats, as he has done previously. Nor did he claim that he was bringing down the cost of living.

Instead, after the government said that inflation spiked to the highest level since April 2023, Trump praised the numbers.

“You know what I really love?” Trump said. “I love the inflation.”

It was an unexpected take given that voters ahead of the November midterm elections have ranked the economy as a top concern – and have given Trump low marks on that issue. Within minutes of his on-camera comment, Democrats quickly rushed to promote it on social media.

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The U.S and Iran traded strikes for a second day, pushing the Middle East closer to the resumption of a full-scale war.

The American attack, which lasted into Thursday morning in Iran, appeared more intense and wider than the day before, but Tehran released little information on the extent of the damage. An Indian official said a U.S. attack on an oil tanker allegedly trying to violate Washington’s blockade on Iranian ports killed three Indian mariners, underscoring the danger to seafarers.

It was the third time this week that back-and-forth strikes have rattled the Middle East. The first involved attacks between Iran and Israel, followed by the two rounds of fire between the U.S. and Iran, which hit countries in the region that host American bases.

The new exchange of fire came as efforts to negotiate an end to the war appeared stuck, with Trump warning that Tehran would “pay the price” for stalled negotiations.

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