Good Monday evening. In this edition: Trump reimposes naval blockade on Iran, seeks to charge tolls; and McMaster taps Graham's sister to finish late senator's term.
Plus, IRS lawsuit, McConnell and Paramount–Warner Bros.
Iran War
President Trump said the U.S. is reimposing its naval blockade on Iran amid renewed attacks and escalating rhetoric from both sides that have rendered the ceasefire signed last month all but moot.
"The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran," he wrote on Truth Social. "We are reinstating the THE [sic] IRANIAN BLOCKADE, so named because it is only stopping Iran's ships or customers from entering or leaving. All other countries will have fair and open use of the Strait."
The president also claimed the U.S. will be "reimbursed" at a rate of 20% for securing safe passage for cargo vessels, though it is unclear how that would work — or how it would comply with international law.
"The U.S.A. will be, from this point forward, known as 'THE GUARDIAN OF THE HORMUZ STRAIT,' but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World," he wrote. "The process and formation will begin immediately."
President Trump telegraphed the policy announcement to Fox News earlier Monday, saying the U.S. was going to "keep the strait" and "probably run it."
"We can't be expected to do that for nothing, unlike we had for many years," he said. "We guarded it for nothing, and now we're going to guard it, we're going to get paid for guarding it. A lot of money."
International lawprohibits countries from charging tolls for passage through international waterways, a point Secretary of State Marco Rubio made last month when Iran said it intended to do the same.
"No country is allowed to charge tolls or fees on an international waterway," America's top diplomat told reporters on June 23. "That's the way it is in international waterways all over the world, and that's the way we expect it'll be here."
The U.S. and Iran signed a memorandum of understanding last month aimed at ending the hostilities, reopening the critical strait and moving toward talks on the fate of Iran's nuclear program.
But fighting resumed over the past week after Iran attacked ships in the strait, prompting U.S. retaliation and further attacks by Iran.
President Trump declared the ceasefire to be "over" while at the NATO summit in Turkey and formally notified Congress on Friday that fighting had resumed.
The U.S. launched a round of strikes on Saturday targeting Iran's surveillance radars, missile and drone storage and launch sites, and surface-to-air missile launchers. On Sunday, the U.S. military targeted an Iranian naval base with unmanned boats, the first-ever offensive operation by sea drones.
Iran responded Monday with attacks on U.S. military assets in Jordan, Bahrain, Kuwait and Oman, after previously targeting American military bases in Qatar, the United Arab Emirates and Jordan.
U.S. Central Commandannounced Monday afternoon it had commenced another round of strikes on Iran intended to "degrade their ability to attack innocent civilians and commercial shipping in the Strait of Hormuz."
"We're taking out all of their capability for anything having to do with the strait," President Trump told reporters in the Oval Office. "I think, in the end, we will end up just controlling the whole thing."
The president also said on social media that he will address the nation at 9pm ET on Thursday.
South Carolina Gov. Henry McMaster (R) appointed Darline Graham Nordone, the younger sister of the late Sen. Lindsey Graham (R-SC), to serve the remainder of her brother's term after his sudden death Saturday night.
"Lindsey took care of his little sister in years long departed. It's my honor to ask his little sister, Darline Graham, to finish his work for him now," the governor said at a press conference in Columbia.
Ms. Nordone, who is expected to be sworn in later this week, will serve in the upper chamber until January 2027 unless she decides to seek a full six-year term and wins election.
"It is such a privilege to get to finish some of his important work, and I promise to work hard over the next several months to support the president and carry forward the efforts of my brother on behalf of the citizens of South Carolina and the United States," she said.
Sen. Graham died suddenly on Saturday night at the age of 71 from an aortic dissection, in which a tear develops in the inner layer of the body's main artery.
The news, which came early Sunday morning, shocked Washington and prompted a wave of bipartisan tributes for the longtime lawmaker, Army veteran, lawyer and one-time presidential candidate.
Senate Majority Leader John Thune (R-SD) called him a great friend and statesman who "died with his boots on," a nod to the late senator's recent return from his 10th trip to Ukraine.
"It's difficult to believe that Lindsey Graham is no longer here with us," Sen. Thune said on the floor. "The halls of the Senate already feel empty without him — and I know I'm not alone in that feeling."
Senate Minority Leader Chuck Schumer (D-NY) also hailed him as a public servant and highlighted their work together on issues like immigration reform and support for Ukraine despite their "many and vehement disagreements."
"To the very end, Sen. Graham's life was defined by public service," he said. "He was an important member of this institution and a crucial voice for his constituents in South Carolina."
The Democratic leader urged the Senate to pass the late senator's Russia sanctions bill in his honor, something Sen. Chuck Grassley (R-IA) also called for.
"It will pass overwhelmingly and help our allies in Ukraine," Sen. Schumer said. "Not seeing eye to eye is no reason to be blind to the way forward. Lindsey could understand that. Every senator ought to do the same."
President Trump and Sen. Thune both praised Ms. Nordone as the right choice to complete the term of her brother, who helped raise her after their parents died early in her childhood.
"I applaud Governor McMaster's decision to appoint Darline Graham Nordone to replace her brother and our friend, Lindsey Graham, in the U.S. Senate," Sen. Thune said on social media. "Lindsey's legacy will continue through Darline, and I look forward to welcoming her soon."
Sen. Graham was seeking reelection in November, and Republicans will now hold a special primary on Aug. 11 to choose a new nominee to face Democrat Annie Andrews in the general election.
Reps. Nancy Mace (R-SC) and Ralph Norman (R-SC), who both recently lost the Republican gubernatorial primary in the Palmetto State, have said they are interested in running for the Senate.
Lt. Gov. Pamela Evette (R-SC), who earned the president's endorsement in the governor's race but ultimately lost to state Attorney General Alan Wilson (R), and Rep. William Timmons (R-SC) have also been floated as potential candidates for the six-year term.
A federal judgesaid President Trump's lawsuit against the IRS over his leaked tax returns was filed for an "improper purpose," characterizing the complaint as an exercise in self-dealing and referring one of his lawyers for potential disciplinary action. U.S. District Judge Kathleen Williams, an Obama appointee, accused the president and his lawyers of manipulating the legal system by suing a federal agency under his control, which she said ran afoul of the requirement that both parties in a lawsuit have adverse interests. The lawsuit ended with a settlement that granted the president immunity from tax audits and established a $1.8 billion compensation fund that was panned by lawmakers in both parties. The judge stopped short of explicitly voiding the agreement but said the government cannot claim in official proceedings that the agreement was the result of a legitimate legal process.
Sen. Mitch McConnell's (R-KY) office released a photo and statement Sunday night in an effort to quell speculation about the 84-year-old senator's health after weeks of questions surrounding his hospitalization. "My doctors have confirmed that I didn't break any bones or suffer a concussion," the senator said in the statement accompanying a photo of him and his wife, Elaine Chao, holding a copy of Sunday's Washington Post. "I didn't have a heart attack or a stroke. I don't have any tumors or hemorrhages. But I was briefly unconscious and was taken to the hospital. While receiving excellent care over the past several weeks, I've also had to deal with a mild case of pneumonia." Sen. McConnell said he intends to complete the remainder of his term, which ends in January, but did not provide a timeline for his return to the Capitol.
Twelve statesfiled a lawsuit to block Paramount Skydance's $110 billion takeover of Warner Bros. Discovery, arguing the deal would stifle competition in theatrical distribution and cable reach. "The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.," California Attorney General Rob Bonta (D) said in a statement. The Justice Department approved the takeover in June, but the lawsuit could delay or derail the deal's closing. A Paramount spokesperson called the lawsuit a "misrepresentation of competition in the entertainment industry today" and said the company plans to "vigorously defend the transaction and demonstrate that this challenge is inconsistent with sound competition policy and the competitive realities of the media marketplace."
For your radar…
Federal Reserve Chair Kevin Warsh testifies Tuesday before the House Financial Services Committee, his first Hill appearance since taking over the central bank. Watch LIVE on C-SPAN3 at 10am ET.
Justices Elena Kagan and Amy Coney Barrett testify Tuesday before a Senate Appropriations subcommittee on the Supreme Court's 2027 budget request, the first time justices have testified before Congress since 2019. Watch LIVE on C-SPAN3 at 2pm ET. The two justices also testify before the House at 10am ET, which you can watch LIVE online.
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