Fdd's overnight brief

July 16, 2026

In The News

Israel

Whoever wins the election in Israel later this year must rein in ‌defence-led state spending that has grown in recent years and invest more in education, infrastructure and other growth engines, Bank of Israel Governor Amir Yaron said on Wednesday. – Reuters

Israeli Prime Minister Benjamin Netanyahu is planning to travel on Saturday to the US, where he is seeking a meeting with President Donald Trump, according to a person familiar with the matter. – Bloomberg

Defense Minister Israel Katz spoke overnight with US Secretary of Defense Pete Hegseth, he confirmed in a statement on Thursday. Hegseth briefed Katz on US military operations in Iran, and the two agreed to continue cooperation between the countries in response to any possible developments. – Jerusalem Post

The number of violent incidents conducted by extremist Israelis targeting Palestinians in the West Bank has fallen by approximately 25% compared with March, when such incidents reached their peak, new data presented to Israel’s leadership on Wednesday shows. – Jerusalem Post

Senior Israeli military officials told the Security Cabinet on Tuesday that the IDF now controls between 67% and 70% of the Gaza Strip, according to two Israeli sources. – Jerusalem Post

An IDF soldier convicted of spying for Iranian forces throughout 2025 was sentenced to five years in prison by a military court, the IDF announced on Wednesday. – Jerusalem Post

Israeli airstrikes killed at least a dozen people in Gaza over the past two days, local health officials said on Wednesday. The latest violence came as Morocco signed on to be part of an international military stabilization force in post-war Gaza, and as Hamas leaders wrapped up another round of truce talks in Cairo, as part of US President Donald Trump’s Gaza peace plan, which halted the war last October. – Times of Israel

Colombia’s incoming foreign minister informed Foreign Minister Gideon Sa’ar that his country will open an embassy in Jerusalem, Sa’ar’s office said Friday, after President-elect Abelardo de la Espriella vowed his country would share a relationship “like never before” with Israel once he takes office. – Times of Israel

A senior United Nations official has issued a rare and pointedly worded rebuke of Hamas, accusing the terrorist group of violently obstructing humanitarian aid deliveries in Gaza and subjecting relief workers to a pattern of intimidation, theft, and physical assault. – Algemeiner

Elbit Systems detailed a new maritime concept centered on its Hermes 650 Spark unmanned aircraft, envisioning the conversion of commercial vessels into dedicated platforms for unmanned aviation, the Israeli company said this week. – Defense News

Iran

President Trump is leaning toward expanding U.S. military operations in Iran after days of briefings from top aides, U.S. officials said. Options include stepping up airstrikes, sending ground forces to seize Iranian islands near the Strait of Hormuz and bombing a fortified site that could be used for covert nuclear work. – Wall Street Journal

At the start of this week, President Trump asserted that the Strait of Hormuz was open and under U.S. control. But by Wednesday, as the U.S. and Iran fought it out over the vital waterway, ship tracker Kpler was saying traffic had dropped as the risk to transits deepened. – Wall Street Journal

Iran allowed an American citizen to go free after preventing her from leaving the country for a year and a half, a move President Trump called a gesture of good will amid a deepening standoff between the two foes. – Wall Street Journal

Almost as soon as Iran and the United States agreed to an initial deal on a truce last month, they began accusing each other of violating it. At issue has been the document’s vague language on a critical issue: control of the Strait of Hormuz. – Washington Post

Fewer vessels travelled through the Strait of Hormuz on Wednesday, the first day ​after the U.S. reimposed its naval ‌blockade on Iranian ports with both countries escalating strikes across the Gulf, shipping data showed. – Reuters

The U.S. military said late on Wednesday ​it completed its latest wave of strikes on Iran that it carried ‌out at President Donald Trump’s direction, with targets including Bandar Abbas, Iran’s principal port city on the Strait of Hormuz. – Reuters

U.S. President Donald Trump has threatened to attack a site linked to Iran’s nuclear programme known as Pickaxe Mountain, a fortified facility buried deep underground near one of Tehran’s main nuclear sites. – Reuters

Iran summoned Britain’s ambassador to Tehran on Wednesday ​after London designated the ‌Islamic Revolutionary Guard Corps (IRGC) under the UK’s Countering State Threats ​Act, warning the move ​would “not go unanswered,” the Iranian ⁠foreign ministry said in ​a statement carried by Tasnim ​news agency. – Reuters

Donald Trump’s former defence secretary has warned that the US will not win its war against Iran through aerial bombardment and must “strangle” the Islamic republic’s economy to force open the Strait of Hormuz. – Financial Times

Former Iranian foreign minister and current member of parliament Manouchehr Mottaki said in an interview broadcast on Iranian state media on Wednesday that Iran should launch a ground war, infiltrate and seize a US military base in the Middle East, and take thousands of US military personnel hostage. – Jerusalem Post

Iran apparently tried to locate US personnel in the Middle East via their cellphone devices, The New York Times reported Tuesday, citing researchers who documented a surge in tracking activity during the recent war. – Times of Israel

Javier Blas writes: The War of Hormuz could last a while yet. Iran may win several battles, but by 2030, the strait won’t be the major oil chokepoint that it is today, as millions of barrels take evasive action. Ghalibaf knows this — hence his framing of the waterway as a valuable asset so long as it’s a vital route for the region’s output. It’s unclear, however, whether his brothers-in-arms at the IRGC have got the message. – Bloomberg

Neville Teller writes: So what is the true situation within Iran? Evidence from reports in Iranian and international media points to a multi‑layered contest for supremacy being waged within the upper echelons of Iran’s governance. Many believe that Iran is currently operating with four overlapping centers of authority: the supreme leader, the IRGC, the president, and senior IRGC-aligned political figures – and that each is vying for supreme power. All, however, are probably united behind Khamenei’s pledge to avenge his father’s death; the ideology that has driven the revolution since 1979 lives on. – Jerusalem Post

Russia and Ukraine

Ukrainian President Volodymyr Zelensky ousted his popular defense minister, a digital guru who drew support from Ukrainians and Western allies for his efforts to promote modern technologies to outsmart Russia and fight corruption. – Wall Street Journal

Ukraine has opened another front in its intensifying blockade of Crimea, striking growing numbers of Russian vessels in the waters near the occupied peninsula as it tries to heap pressure on the Kremlin to end the war. – New York Times

President Volodymyr Zelenskiy is set ​to propose Interior ‌Minister Ihor Klymenko as Ukraine’s new defence minister, ​several lawmakers said ​on Wednesday. – Reuters

Russian ballistic missiles struck at ​least two districts in the Ukrainian capital ‌Kyiv early on Thursday, triggering fires and killing two people, officials said. – Reuters

The chief engineer at the Russian-controlled Zaporizhzhia nuclear power plant has been killed by a Ukrainian drone near ​the station, the head of Russia’s state nuclear corporation Rosatom said ‌on Wednesday. – Reuters

Serbia will send Ukraine more humanitarian aid but did not sign up to a regional call for continued security support for the country and more pressure on Russia, President ​Aleksandar Vucic said on Wednesday in Kyiv. – Reuters

Ukraine will do ‌everything possible to protect its seaports and guarantee grain exports at no less than last season’s level, its deputy economy minister, Taras Vysotskiy, told Reuters on Wednesday. – Reuters

Ukraine and the European Union have sealed a “drone deal”, aiming to combine ‌Kyiv’s expertise with EU industrial capacity to establish joint projects and scale up production, European Commission President Ursula von der Leyen said on Wednesday. – Reuters

Russia said on Wednesday that any multinational ​force sent by Ukraine’s allies to ‌deploy there in the event of a peace deal would be unacceptable to Moscow, which would view ​it as a threat and a legitimate ​military target. – Reuters

Information from NATO ​member nations, including Lithuania and ‌Latvia, shows that Russia has made various attempts to conduct sabotage, Latvian president ​Edgars Rinkevics said on ​Wednesday. – Reuters

The Kremlin on Wednesday rejected Lithuanian allegations that ​Moscow is planning attacks ‌on the country’s infrastructure, describing them as a pretext for militarisation ​against Russia. – Reuters

In a military cemetery in Kyiv, a brother and sister walk between the crosses, carrying a bunch of carnations. Each cross in that section bears the same words: “unknown defender of Ukraine,” with an ID number below and a note that identification is ongoing. – Associated Press

The European Union agreed to preserve a $44.10 price cap on Russian oil until July 23, according to an EU diplomat, as officials struggle to reach a broader sanctions deal. – Bloomberg

European countries have agreed to extend the temporary protection granted to Ukrainian refugees until 2028 — but have excluded men who could be called up to the military. – Politico

Ukraine will be allowed to spend funds from an EU defence loan on Chinese drone components, exposing Europe’s reliance on Beijing for critical parts as it struggles to build its own defence industry. – Financial Times

Editorial: The timing of this legislation will get Mr. Putin’s attention. Ukraine has ramped up long-range strikes on military, energy and export sites, and last week Russia banned diesel exports through July 31 amid domestic shortages. Mr. Trump has also recently expressed more support for Ukraine as it has turned the battlefield tide and thanks to Graham’s persuasion. The fastest way to end this war is to make it too costly for Mr. Putin to continue. – Wall Street Journal

Editorial: Fedorov appears to have irked a still Soviet-minded top brass with his modernising, start-up ways, even though innovation and disruption have proved their value in this war. He is respected by western partners and popular at home, especially with young Ukrainians who see him as a committed and honest moderniser. Ukrainian media have talked of him as a potential presidential candidate, which appears to be the ultimate sin in Zelenskyy’s eyes, as past ministerial sackings have illustrated. Wartime leaders understandably seek to centralise control and eliminate threats to their supreme authority. But wartime leadership should be about assembling the best team of talents, not rooting them out. – Financial Times

Yuri Mirovich writes: Estonian Interior Minister Igor Taro is quite skeptical. He suggests leaving things as they are, but to discuss this problem with Kyiv. Commissioner for Human Rights at the Council of Europe Michael O’Flaherty criticizes the initiative. He is also concerned about the lowering of support for Ukrainian refugees in European countries and asks for its continuation in his interview with RBK Ukraine. “Now is time for more solidarity, not less.” – Washington Examiner

Rishi Iyengar writes: But as this week’s developments show, Kyiv isn’t waiting around or putting all its eggs in the Trump basket. “President Trump and I have reached an important deal on licenses to produce Patriot systems. Our teams are now working to implement this truly historic political agreement. We worked toward this for a very long time,” Zelensky said in Paris on Monday. “But we always stress one thing—the more diverse our defense is, the harder it will be for our enemies to undermine security in Europe,” he added. “I believe Europe can provide itself with enough protection against any ballistic threat.” – Foreign Policy

Turkey

Turkey’s ousted main opposition CHP leader said on Wednesday that preparations are under way for the possible ​establishment of a new political party, but any formal ‌step would wait until after ongoing legal proceedings. – Reuters

The Turkish Land Forces Command has received its first three electric armoured personnel carriers (APCs) from Türkiye’s Makine ve Kimya Endüstrisi (MKE), the state company announced in a press release on 10 July 2026. – Janes

Turkey and Egypt are moving to deepen their bilateral relationship in defense cooperation and the defense industry, underscored by agreements signed during the first visit in nearly 13 years by Egypt’s minister of defense and military production, Ashraf Salem Zaher, to Ankara at the invitation of Turkish counterpart Yasar Guler. – Ekathimerini

Lebanon

Lebanon and Israel concluded U.S.-brokered talks in Rome on Wednesday, with a U.S. official saying they had made progress on implementing a plan ​that could see Israeli forces begin to withdraw from some parts ‌of southern Lebanon within days. – Reuters

Hanin Ghaddar writes: Ultimately, lasting disarmament depends on dismantling Hizballah’s entire ecosystem of power—not only its weapons, but also its financial networks, parallel institutions, political leverage, and illicit economic infrastructure that sustain its military capabilities. A credible path toward peace between Lebanon and Israel would reinforce these efforts by strengthening the state, supporting economic recovery, and making disarmament politically and strategically sustainable. – Middle East Institute

Matthew Levitt writes: Like Israel, Lebanon stands to gain a lot from this agreement. Beyond sovereign control over decisions of war and peace, the agreement offers Lebanon the opportunity to fully integrate into the regional economy, attract foreign direct investment, and become a hub for trade and business between Europe and the Middle East. But leaders in Beirut are assuming massive responsibility and risk and should be incentivized to press forward. – Middle East Institute

Gulf States

The United States granted the United Arab Emirates increased access to AI chips and servers, in recognition of the UAE’s support in advancing national security interests, including Operation Epic Fury, the US Department of Commerce’s Bureau of Industry and Security (BIS) announced on Friday. – Jerusalem Post

Japanese company Terra Drone is expanding into the United Arab Emirates (UAE), targeting the country’s growing counter-unmanned aircraft system (C-UAS) market with interceptor unmanned aerial vehicles (UAVs). – Janes

Joseph A. Farsakh writes: That recalibration is unlikely to redirect Gulf technology investment. What Gulf governments want, at a basic level, is to build, to diversify, to invest in their people, and to create the conditions under which a young, growing Arab population can participate in the industries shaping the twenty-first century […] The United States would be well served to reconceptualize Gulf stability not as a concession to regional partners but as a structural prerequisite for the economic architecture both parties spent years building together. Washington should recognize that Gulf leaders who invested trillions of dollars into the United States over decades and feel endangered by U.S. partnership will look for better terms elsewhere. – Center for Strategic and International Studies

Middle East & North Africa

Casablanca’s public prosecutor ordered rapper and documentary ​filmmaker El Mahdi Lyoubi, ‌an outspoken critic of Morocco’s political system, into pre-trial detention ​on Wednesday, a rights ​group and a judicial source ⁠said. – Reuters

A Moroccan prosecutor said on Wednesday he had ordered the release of ​veteran journalist and political commentator Ali Lmrabet ‌after questioning him, although an investigation continues following allegations of defamation and libel. – Reuters

Morocco signed an agreement on Wednesday to participate ​in the International Stabilization Force (ISF) for ‌Gaza, state media reported. The agreement was signed in Rabat at a meeting attended by Moroccan ​Foreign Minister Nasser Bourita, senior defence ​officials and Nickolay Mladenov, the Board ⁠of Peace envoy for Gaza, along ​with a delegation including the commander of ​the ISF, the state news agency MAP said. – Reuters

A boat carrying about 60 migrants, including women and children, bound for European shores capsized off the coast of eastern Libya in the latest maritime tragedy off the North African country. At least 50 are dead or missing, authorities said. – Associated Press

Syria’s President Ahmed al-Sharaa claimed that Israel was preventing stability in Syria during a discussion with US President Donald Trump, Lebanese outlet Al-Akhbar reported on Wednesday. – Jerusalem Post

Korean Peninsula

South Korea’s government has raised its economic growth and inflation forecasts for this year, citing robust chip exports and fiscal stimulus. – Wall Street Journal

China’s fourth-highest-ranked official, Wang Huning, held talks in Pyongyang with a top official of North Korea’s ruling Workers’ Party, the state-run Korean Central News ​Agency (KCNA) reported on Thursday. – Reuters

Bombardier Defence has won a contract from Korean Air to supply two Global 6500 long-range business jets for South Korea’s electronic warfare (EW) aircraft programme. – Janes

China

An American seismologist who did contract research for the U.S. government related to nuclear tests in North Korea has been detained in China for nearly two years and accused of spying, his family and supporters said. – New York Times

The full implementation of China’s rare earth export restrictions could put $6.5 trillion of downstream production outside the country at risk, the International ​Energy Agency warned on Thursday. – Reuters

Hong Kong’s national security police arrested five booksellers on suspected charges of “doing an act with seditious intention”, the government said in a statement late on Wednesday. – Reuters

US Trade Representative Jamieson Greer set modest expectations for a much anticipated summit between President Donald Trump and China’s Xi Jinping, suggesting the September meeting will focus on assessing current commitments rather than brokering new deals. – Bloomberg

Newly released footage of the People’s Liberation Army Navy’s (PLAN’s) first Type 076 amphibious assault ship, Sichuan, has provided the clearest indication yet that it is intended to operate fixed-wing unmanned aircraft as a core component of its air wing. – Janes

Camilla Hodgson writes: Breaking that pattern may require a different framework. David Abraham, an affiliate professor at Boise State University, says current responses to the minerals question are overly focused on the idea that each country needs to be self-sufficient and decoupled from China. “That’s not helpful when you’re trying to compete against one country that produces more than all the other countries combined. It’s not a sport, you don’t have to beat China. We have to be able to set up supply lines that can’t be stopped.” – Financial Times

David Fickling writes: Much though European and US policymakers tempted toward further protectionist moves might wish otherwise, little points to state industrial policy. To the contrary, this looks like nothing so much as the normal and healthy capitalist process of creative destruction, as a radically new technology uproots an incumbent one, leaving a rust belt that established firms cling to for too long in the hope of staving off inevitable write-downs. There is certainly excess in China’s car industry, but not where you’d think. China doesn’t have too many EV plants — it has too few. – Bloomberg

Aaron Glasserman writes: The new law is also an implicit repudiation of international criticism of and legal action against China’s most repressive policies toward its ethnic minorities. Indeed, Beijing now touts its “correct path” for “resolving” ethnic problems as a pearl of “Chinese wisdom” from which other countries can learn […] The law, paradoxically and likely unsuccessfully, aims to “resolve” ethnicity as a political problem by making ethnonational identity a central and constant element of the political system. – Foreign Policy

South Asia

A once-sleepy port destination has suddenly found itself at the center of India’s larger quandary over artificial intelligence, where many people question official enthusiasm over their city becoming the country’s data capital. – New York Times

Ransomware group World Leaks has posted on the dark web a huge cache of files related to India’s largest nuclear plant, including purported blueprints of parts of its ​facilities and supplier details — information it labelled as coming from Reliance Group. – Reuters

India has ordered shipowners, ship managers and recruitment companies not to deploy the country’s seafarers ​on vessels undertaking trips through the Strait of ‌Hormuz amid renewed fighting in the region. – Reuters

Pakistan’s virtual assets regulator has asked the country’s top Islamic ​seminary to draw a distinction between speculative cryptocurrencies and asset-backed digital tokens, its chief said on Wednesday. – Reuters

Two boats carrying more than 500 people may have capsized off the coast of Myanmar in recent days, ​UN agencies said on Thursday, as refugees from the ‌war-torn country continue to make perilous maritime journeys in search of safety and better opportunities. – Reuters

The UK Ministry of Defence (MoD) has commenced deliveries of retired SEPECAT Jaguar airframes to the Indian Air Force (IAF) following their procurement by New Delhi, a ministry spokesperson has confirmed to Janes. – Janes

Asia

New Zealand and Fiji signed a renewed five-year Duavata Partnership on Thursday, ​setting out cooperation priorities for 2026 ‌to 2030 across trade, security, democracy, social development and climate resilience, New Zealand Foreign Minister Winston ​Peters said after talks in Auckland ​with Fiji counterpart Sakiasi Ditoka. – Reuters

Azerbaijan and Armenia are at “real ​peace” and rebuilding trade links after decades of conflict, a senior Azerbaijani official told Reuters, but Baku is insisting on ‌changes to Armenia’s constitution before a final deal can be signed. – Reuters

Taiwan’s most capable missile launchers are being deployed across the island for a five-day defense drill designed to enhance joint operations and develop concepts for targeting enemy aircraft and vessels. – USNI News

Europe

Next month, the ballot of a parliamentary election in the English seaside town of Clacton-on-Sea will feature two prominent figures: One is Nigel Farage, the architect of Britain’s 2016 vote to leave the European Union, friend and ally of President Donald Trump, and co-founder of the surging anti-immigration Reform UK party. – Washington Post

Britain’s populist Reform UK called on Wednesday for all lawmakers to be given “full security” if they want it after the murder ​of Ann Widdecombe, a prominent member of the party led by veteran Brexit campaigner, ‌Nigel Farage. – Reuters

German Chancellor Friedrich Merz appealed to supporters of the far-right Alternative for Germany (AfD) to judge his government on its merits ahead of an ​election in September that could propel the AfD to power at regional ‌level for the first time. – Reuters

Italian Prime Minister Giorgia Meloni’s right-wing coalition on ​Wednesday vowed to press ahead with a new election law, a day after a bruising parliamentary defeat on a ‌key aspect of the reform. – Reuters

German Chancellor Friedrich Merz is finally showing some openness to backing the European Union’s push against China. – Bloomberg

The UK’s prime minister-to-be said he planned to be “upfront” with his US counterpart and rely on his own personality to keep relations on an even keel. – Bloomberg

The UK has signed contracts with multiple companies to develop the country’s first ballistic missile in more than half a century in a bid to both support Ukraine and reduce Europe’s reliance on American weaponry. – Bloomberg

The UK is actively working on a comprehensive plan to ban all import and export transactions of goods and services with “illegal” Israeli settlements, Minister for Trade Chris Bryant announced on Wednesday. – Jerusalem Post

Iranian actors, Iranian proxy groups, and criminal networks linked to the Islamic Republic were connected to multiple of the 45 terrorist attacks recorded across 21 EU member states last year, according to the European Union Terrorism Situation and Trend Report (EU TE-SAT) 2026, published earlier this week. – Jerusalem Post

Peter Rough and Ulrich Speck write: As this year’s G-20 host, the U.S. has invited Poland to take a seat at the table that Washington has denied to South Africa, an official member of the club whose economy has atrophied due to widespread corruption and government intervention. Poland’s permanent inclusion in the G-20 would not be a gift to Warsaw but a reflection of its well-earned status among the world’s leading economies. Poland is the ally Trump needs to pull the G-20 back from its worst instincts. – Washington Post

Ben Hall and Marton Dunai write: For Hungarians who felt burdened and oppressed by Orbán’s 16 years in power, the election has brought an enormous sense of release, says Károly Gerendai, founder and owner of the Sziget festival, one of Europe’s largest youth events. “There’s a feeling of regime change in the country. An interesting question is whether any government can live up to these expectations. “Until now the movement’s defining characteristic has been that it is anti-Fidesz. Once actual decisions have to be made, however, support could quickly erode because it will be impossible to satisfy everyone. Ideally, Hungary would become a normal country with a variety of political parties.” – Financial Times

Africa

Guy Scott, a Zambian citizen of British descent whose career hopscotched between journalism, economics, farming, academia and politics, culminating in a brief, contentious stint as Africa’s only white president two decades after the fall of apartheid in South Africa, died on Wednesday at his farm in Lusaka, the capital city. He was 82. – New York Times

The Ebola epidemic in the Democratic Republic of Congo is spreading faster than efforts to contain it, global ​medical charity Médecins Sans Frontières (MSF) warned on Wednesday, calling for an ‌urgent expansion of containment and care measures. – Reuters

A worsening Ebola outbreak in the Democratic Republic of Congo is ‌disrupting travel and delaying meetings tied to a U.S.-backed critical minerals partnership aimed at loosening China’s hold on Congo’s vast copper and cobalt resources, three people familiar with the matter told Reuters. – Reuters

Democratic ​Republic of Congo has formed a new advisory council that includes senior ‌war crimes lawyers from the United States and Europe to support its push for accountability for atrocities committed in the country’s conflict-ridden east. – Reuters

Uganda is due to discharge its last Ebola patient on Thursday, triggering a 42-day countdown that ​could see the country declared free of the ‌virus, a spokesperson for the government said. – Reuters

Senegal is expected to appoint Lazard as ​its financial advisor on debt ‌matters, according to a source familiar with the situation, as ​investors watch closely how ​the country plans to tackle ⁠its debt burden. – Reuters

Nigeria has launched a $500 million agriculture investment ​fund for the oil-producing Niger ‌Delta region, seeking to raise food output, attract private investment and strengthen food ​security, Vice President Kashim Shettima ​said on Wednesday. – Reuters

The Dutch government is pressing Brussels to cut off development aid to Sierra Leone unless it extradites one of Europe’s most wanted drug traffickers. – Financial Times

The Americas

The U.S. is imposing a 25% tariff on certain Brazilian goods, following a yearlong investigation by trade officials into what they described as unfair trade practices. – Wall Street Journal

The United States has put a $25 million bounty on his head. Federal prosecutors say he trafficked tons of cocaine. The U.S. Treasury imposed sanctions for embezzlement and the U.N. accuses him of terrorizing opponents. – New York Times

Prosecutors and police in Rio de ‌Janeiro on Wednesday said they charged 22 people with laundering $20 million for two Brazilian gangs designated by ​the U.S. as terrorist groups. – Reuters

Brazilian President Luiz Inacio Lula ​da Silva has widened his lead ‌over right-wing Senator Flavio Bolsonaro in the run-up to October’s presidential election, a Quaest poll commissioned ​by brokerage Genial showed on Wednesday. – Reuters

Peru’s President-elect Keiko Fujimori could face new protests in mining areas as her government tries ​to spearhead large copper and other mining projects ‌that have been delayed for years, according to a study released Wednesday by the Observatory of Mining Conflicts in Peru. – Reuters

The European Union is providing a further €20 million ($22.8 ​million) in humanitarian aid ‌to help Venezuela deal with last month’s earthquake, it said on ​Wednesday. – Reuters

North America

The July Fourth party at the U.S. ambassador’s residence here normally draws a who’s who of Canada’s diplomatic, business and political circles. This year, Ambassador Pete Hoekstra’s invite list stunned some Canadians. – Wall Street Journal

Mexican President Claudia Sheinbaum on Wednesday rejected comments from the head of the U.S. ​Drug Enforcement Administration (DEA) who said there is “a deadly ‌connection” between the Mexican government and the country’s drug cartels, calling the remarks “unfortunate” and baseless. – Reuters

Canada has reached a ​deal to become an observer to an advanced fighter jet ‌program being pursued by Japan, Britain and Italy, a senior Canadian-based source with direct knowledge of the matter said on Wednesday. – Reuters

A three-month mass trial of hundreds of alleged gang members of MS-13 wrapped up Wednesday in El Salvador, with prosecutors delivering their closing arguments and asking for maximum sentences. – Associated Press

The US government listed two Mexican criminal gangs that have long been part of the country’s drug trafficking rings as terrorist groups, a move that could lay the groundwork for Donald Trump to order future legal or even military action against them. – Bloomberg

The US and Canada are presenting different accounts of a profit-sharing deal President Donald Trump agreed to that permits a new bridge connecting Michigan and Ontario to open later this month. – Bloomberg

Panamanian officials are heading to Beijing in a bid to end a dispute that has seen hundreds of vessels leave its shipping registry after a major step-up in detentions by Chinese authorities. – Financial Times

United States

A former Federal Reserve official was sentenced Wednesday to more than three years in prison for lying to investigators about sharing confidential information outside of the central bank, in a case that combined Chinese spies, economic espionage and a blackmail scam involving nude photographs. – Wall Street Journal

The hawkish Republican senator, who died Saturday at 71, visited the country at least a dozen times since the Hamas-led attack on Oct. 7, 2023, which plunged the region into conflict. Before that, he often visited in the company of the senators Joseph Lieberman and John McCain, who died in 2024 and 2018 respectively. – Washington Post

The F.B.I. has sought to speak with several people who traveled aboard the Qatari-gifted plane that President Trump flew on to Turkey last week, including asking some to turn over their mobile phones, as part of a leak investigation into reporting by The New York Times, according to people with knowledge of the situation. – New York Times

Washington’s new policy that says American citizens returning from the Democratic Republic of Congo, where ‌there is an Ebola outbreak, must spend 21 days in a third country before entering the U.S. will hinder the response to the epidemic, the head of a large American aid group said. – Reuters

House Republicans on Wednesday unveiled a $95 billion legislative plan focused on boosting defense, aiding farmers and enacting stricter voter registration rules, a sequel to the massive tax and spending cut bill that President Donald Trump signed into law last year. – Associated Press

More than 100 Democrats, including former Speaker Nancy Pelosi, backed a House measure to block all military aid to Israel in a sign of a growing rift in the Democratic Party over how to deal with the US ally. – Bloomberg

The White House and Republican leaders are pushing a divided party to swiftly pass new spending for President Donald Trump’s ongoing war with Iran despite the political risks of backing an unpopular military campaign that has spiked consumer prices. – Bloomberg

Editorial: But letting a crucial national security tool expire—especially when the U.S. is at war—to protest Mr. Pulte is childish and self-serving partisanship. Mr. Schumer is always looking over his left shoulder at a primary challenge from Alexandria Ocasio-Cortez rather than on American security. He may figure voters will blame the Administration if there’s an attack on the homeland. The opinion polls suggest Democrats will gain seats in Congress this year, and maybe win both the Senate and House. But the more they show they care very little for U.S. security, the more voters may conclude that would be an historic mistake. – Wall Street Journal

Eli Lake writes: Like seemingly almost everything in American politics this year, the conversation was all about Gaza. The interview with one of the most pro-Hamas outlets in U.S. media should have been a victory lap for Khanna, who last week grabbed headlines for a stunt where he claimed he was detained by the Israel Defense Forces after local settlers pulled over his entourage in a once-restricted area of the West Bank.Khanna has reinvented himself during the last year to curry favor with the populist fringe of his Democratic Party, devoting himself to the cause of releasing law enforcement files on Jeffrey Epstein and casting himself a defender of the forgotten working class. – The Free Press

Cybersecurity

Australia plans to require data centers to underwrite their electricity and water supplies, as the government seeks to govern the growing artificial-intelligence industry. – Wall Street Journal

The French government said this year that it would replace Zoom and other American videoconference software with a French-developed alternative. Germany is building a homegrown platform for artificial intelligence. Companies in both countries are teaming up to build A.I. chips to rival those of the United States and China. – New York Times

Chinese President Xi Jinping is expected to outline an ambitious vision for China’s role in ​global AI governance at a forum on Friday, as Huawei showcases its most advanced AI computing cluster yet in a sign of ‌Beijing’s drive to build a domestic alternative to U.S. technology. – Reuters

Britain’s media regulator on ​Thursday launched a probe into TikTok ‌to understand whether its UK unit failed or is failing to protect children ​from harmful content. – Reuters

Amazon’s low-earth orbit satellite internet venture Amazon Leo has signed an agreement with South Africa’s Herotel to launch a ​new broadband service aimed at connecting underserved rural communities, it ‌said on Wednesday. – Reuters

President Donald Trump criticized New York Governor Kathy Hochul for announcing a temporary ban on data centers, calling it a “terrible decision” and urging the state to change its decision immediately. – Bloomberg

The Trump administration on Tuesday announced a new and already operative federal clearinghouse that allows industry, critical infrastructure operators and the government to use artificial intelligence to rapidly detect, prioritize and patch cybersecurity vulnerabilities. – The Record

Dutch police have dismantled a large international investment fraud network that allegedly tricked tens of thousands of people into investing in fake cryptocurrency schemes. – The Record

Jesse M. Fried writes: Imposing risks on investors might be a small price to pay if OpenAI’s and Anthropic’s mission directors actually ensure that artificial intelligence benefits humanity. But how can they? Even if the directors ensured the two companies create only “good” AI, others—Google, Meta, SpaceX and their Chinese competitors—can still create “bad” AI. Nor do the directors appear necessary to prevent their own firms from putting humanity at risk. Investor-appointed directors, founders and engineers won’t unleash technology likely to kill their own families. And the Trump administration’s recent rapid shutdown of Anthropic’s latest models suggests the government can move quickly to eliminate perceived threats. – Wall Street Journal

Defense

The Air Force for the first time successfully fired an air-to-air missile from a new jet-powered combat drone built by defense startup Anduril. – Wall Street Journal

President Donald Trump urged military contractors to speed up production, singling out General Dynamics Corp. during a summit aimed at strengthening the nation’s defense industrial base. – Bloomberg

The Pentagon has blocked the public release of a congressionally-mandated annual report on the costly and controversial F-35 fighter jet program for the first time in more than 20 years. – Bloomberg

The Pentagon is moving to buy thousands of affordable cruise missiles, reaching framework agreements with three companies on Wednesday. – Defense News

Defense Secretary Pete Hegseth announced a joint Pentagon and Justice Department task force to identify and prosecute officials who disclose sensitive national defense information to the news media. – Military.com

Editorial: Exerting political power on companies to use their surplus cash for capital expenditures, rather than returning it to investors, is a recipe for wasting money on poorly conceived projects. Why would a bureaucrat in Washington know better than a board of directors how to maximize shareholder value? It’s also wrong to argue that Wall Street investors are simply lining their pockets with payouts from military contractors. Instead, that cash is recirculated in the economy, including with investments in other businesses. That’s a far more efficient use of capital, which happens to also benefit the more than 60 percent of Americans who own stocks. It’s a wonder any politicians would be willing to grant the president such far-reaching power over military contractors. Sooner or later, they would discover its massive potential for abuse. – Washington Post