First Thing: US government borrowing costs hit new high as strikes on Iran resume

US Borrowing Costs Reach Highest Level Since 2007 After Federal Reserve Holds Rates Steady

Good morning. US government borrowing costs reached their highest level since 2007 after the Federal Reserve voted to maintain its key interest rate at the current level. Central bank chair Kevin Warsh stated that the institution would continue its efforts to address rising prices. Market participants expressed concern over the pace of any future adjustments and the capacity of the economy to manage price increases observed in recent months.

The decision contributed to declines in major stock indexes. The S&P 500 closed 1.5 percent lower, the Dow Jones industrial average fell 2.2 percent, and the Nasdaq composite declined 1.7 percent. Oil prices rose, with Brent crude increasing 7.3 percent to exceed $88 per barrel.

US military forces conducted strikes on Iranian targets following an attack on American personnel in Jordan. The operations occurred hours after President Donald Trump stated that Iran would face significant consequences. The strikes targeted facilities associated with Iran’s Revolutionary Guards Corps, according to a statement from US Central Command. The command reported striking dozens of sites over a two-hour period.

These actions followed a partnership with Saudi Arabia that resulted in strikes against Iran-backed groups in Iraq, where at least 20 fighters and six Iranian advisers were reported killed. The sequence of events came after a period of reduced hostilities that included a ceasefire agreement between Washington and Tehran in June. Inflation data released for that month showed an annual rate of 3.5 percent. Hostilities resumed after the ceasefire concluded.

US Central Command described the latest strikes as a response to the Jordan incident. Officials have not released a full public timeline of prior engagements in the 2026 conflict beyond the June ceasefire and subsequent resumption of direct exchanges.

Dr Anthony Fauci declined to answer certain questions during a Senate hearing on the origins of Covid-19. He cited the Fifth Amendment and described the questioning by Senator Rand Paul as an effort to embarrass and intimidate him. Paul has conducted oversight of Fauci’s role for several years. Senator Gary Peters stated that the proceeding risked turning one individual into a focal point for decisions involving multiple administrations and could discourage experts from government service. The hearing examined events from the pandemic period, during which Fauci served as an adviser to both the Trump and Biden administrations.

Separate reporting on the session noted continued partisan divisions over public health policy and scientific advice six years after the initial outbreak. No new legislative actions were announced at the conclusion of the hearing.

The UK government has initiated a review of procedures governing cases in which US military personnel are accused of crimes on British territory. Multiple departments are examining why police forces have transferred jurisdiction to US military authorities in certain instances. The review includes examination of sexual offense cases where UK definitions of rape were met but prosecutions proceeded under lesser charges within the military system.

Rescue efforts continued in southwestern Japan after a magnitude earthquake on Tuesday. The confirmed death toll reached 30, with searches ongoing at damaged commercial sites and residential structures in Yatsushiro City and surrounding areas.

The Senate Judiciary Committee delayed a scheduled vote on the nomination of Todd Blanche for US attorney general. The postponement followed a request for written confirmation from the Department of Justice regarding the status of a reported $1.8 billion fund.

Russian airstrikes in Ukraine killed at least 13 people on Thursday, including strikes that reached the western city of Lviv. Polish authorities deployed fighter aircraft to monitor airspace along the border.

The company xAI filed suit against the state of Minnesota challenging a statute that prohibits certain image-generation technologies on digital platforms. European football governing bodies scheduled an emergency session to discuss a proposal by FIFA to offer equity stakes in future men’s World Cup tournaments to outside investors.

A federal grand jury in Chicago indicted film producer Jason Cloth on seven counts of wire fraud. Prosecutors allege the scheme involved $100 million in investor funds. Cloth’s production credits include the films Joker and The Green Knight.

Consumer electronics coverage recommended entry-level soundbars priced from $130 as an option for improving television audio clarity without requiring high-volume playback systems.

Author Michael Thomas discussed his memoir The Broken King, which recounts a period of two decades between his debut novel and the current publication. The account covers experiences including economic hardship, family separation, racial discrimination, substance use, and mental health treatment.

Wildfires across southern Europe resulted in three firefighter fatalities on the Greek island of Crete. Temperatures reached 100 degrees Fahrenheit in Bordeaux, where crews contained a large fire in pine forests before it approached residential zones. Additional fires were reported from Scotland to southern Spain.

An archival document recovered from a Florence convent pharmacy describes a medicinal preparation combining Bolivian coca leaves and kola nuts. The record dates to the 19th century and has prompted discussion among historians regarding possible influences on later commercial beverages, including early formulations of Coca-Cola. Similar products, such as an 1885 alcoholic syrup produced in Valencia, have also been referenced in prior analyses of the drink’s development.

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