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Daily News Brief

July 2, 2025

Welcome to CFR’s Daily News Brief. Today we’re covering U.S. President Donald Trump’s latest attempt to reach a deal on Gaza, as well as...

  • A reduction in U.S. weapons to Ukraine
  • The Dalai Lama’s succession announcement
  • The advance of Trump’s economic bill
 
 

Top of the Agenda

Trump has renewed his diplomatic efforts toward a truce in Gaza, touting an updated proposal yesterday for a sixty-day ceasefire. He said that Israel agreed to its terms, while Israel’s foreign minister said that a chance to release hostages from Gaza “must not be missed.” Trump’s Middle East envoy Steve Witkoff met with a top Israeli official yesterday; Trump said that as a next step, Qatar and Egypt would deliver the proposal. A Hamas official said today the group was “ready and serious regarding reaching an agreement” if it “clearly leads to the complete end of the war.”  

 

The latest on the conflict. Hostilities have continued in Gaza and the West Bank during and after the United States and Israel’s conflict with Iran in recent weeks.

  • Israel has increased strikes in Gaza City in the territory’s north, where it issued a partial evacuation order Sunday. On Monday, Israeli airstrikes killed thirty people at a café and gunfire killed twenty-three more, witnesses and health officials said.
  • Yesterday, Israeli planes and tanks targeted homes in both northern and southern Gaza. Its military did not immediately comment on the operation.

The latest on aid distribution. 

  • Yesterday, some 170 charities and non-governmental organizations issued a public call for the aid distribution operation run by the Israel- and U.S.-backed Gaza Humanitarian Foundation (GHF) to be shut down, citing the deaths of hundreds of Palestinians seeking aid since the group started its work in late May. 
  • The nonprofits said Israeli forces and armed groups “routinely” shoot at Gazans seeking aid. Their statement follows previous assertions by unnamed Israeli military officials to Haaretz that they were ordered to shoot toward crowds of people seeking assistance. Israel denied its forces deliberately shoot at people receiving aid and said GHF bypasses Hamas to help those in need.
 
 

“Most [Hamas] leaders in Gaza are dead, and the few that remain have few resources, face a growing opposition of ordinary Gazans outraged at what Hamas has brought upon them, and have been forced to rely on lightly trained fighters. The war continues only in service of the annexationist agenda of the far-right politicians in Israel.”

—CFR expert Steven A. Cook, Foreign Policy

 

The Carrot-Stick Approach to Ending the War in Ukraine

U.S. President Donald Trump speaks at a press confrence during the NATO summit in The Hague, Netherlands.

Piroschka Van De Wouw/Reuters

To deliver on his promise to end the Russia-Ukraine war, Trump will need to offer Russia incentives while imposing greater costs, CFR expert Charles A. Kupchan writes in this article.

 
 

Across the Globe

U.S. slows weapons to Ukraine. Ukraine summoned a top U.S. diplomat in the country following a pause on U.S. weapons shipments. A White House spokesperson confirmed the pause yesterday without specifying which weapons were halted. Politico reported earlier in the day citing unnamed sources that they included some flows of air defense missiles and other precision weapons that began under the Joe Biden administration. 

 

Trump’s economic plan. A version of the Trump administration’s domestic policy package passed the Senate yesterday after a separate version had already passed the House of Representatives. The bill renews many tax cuts from Trump’s first term and increases military spending and immigration enforcement, paying for them through steps like cutting Medicaid, food benefits, and green energy spending.

 

Macron-Putin call. French President Emmanuel Macron and Russian President Vladimir Putin held their first call since September 2022 yesterday. Macron’s office said he called for a ceasefire in Ukraine and negotiations to end the war, as well as a diplomatic solution to the Iranian nuclear issue. The Kremlin reported Putin said any peace deal in Ukraine should address the “root causes” of the war and that Iran had the right to develop a “peaceful” nuclear program. The two leaders plan to have another conversation soon, the French president’s office said.

 

The Dalai Lama’s succession. The Dalai Lama, who turns ninety on Sunday, told a gathering of Tibetan leaders yesterday that his foundation will “exclusively” take responsibility for identifying his successor. Beijing said yesterday that the Chinese government must sign off on his successor. Traditionally, the search for the new leader begins after the Dalai Lama’s death; one Tibetan activist said Beijing considers the vacuum of power before a successor is chosen to be a “strategic opportunity” for asserting more control over Tibet.

 

Iran suspends IAEA cooperation. Iran’s law freezing the country’s cooperation with the International Atomic Energy Agency (IAEA) took effect today after it was passed by the legislature last week. The UN watchdog, which is responsible for inspecting Iran’s nuclear sites, said it was awaiting more information on the suspension, while Israel called for a sanctions snapback on Iran. Separately, Iran’s foreign minister told CBS regarding nuclear talks with Washington that the “doors of diplomacy will never slam shut.”

 

Plans for debt swaps. Spain and the World Bank will establish a hub to assist countries seeking debt restructuring in order to finance social and environmental projects. So-called “debt swaps” have become increasingly common, although countries say they can be slow and complicated to put together. Many such deals in the last few years have been backed by the U.S. International Development Finance Corporation, but it is unclear if that assistance will continue under Trump.

 

Accusations of spying for Beijing. The U.S. Justice Department said yesterday it charged two Chinese nationals acting as unregistered agents of the Chinese government in the United States. They are accused of gathering information at a U.S. naval base and trying to recruit members of the U.S. military to work for Chinese intelligence. It was not immediately clear if they had lawyers, and the Chinese embassy did not immediately comment. 


Quad critical minerals initiative. Australia, India, Japan, and the United States pledged to work together on securing supplies of critical minerals at a Quad foreign ministers meeting in Washington yesterday. While their announcement did not provide further details, U.S. Secretary of State Marco Rubio said thirty or forty companies from the countries were scheduled to meet at the State Department yesterday to discuss cooperation on areas including critical minerals. 

 
 

The Risks of Rising U.S. Deficits

The U.S. Capitol is seen through security fencing as Republican lawmakers struggle to pass U.S. President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., U.S., July 2, 2025.

Kevin Lamarque/Reuters

As members of Congress use accounting tricks to advance growing deficits, foreign investors are becoming increasingly anxious about the amount of dollar-denominated debt they hold, CFR expert Rebecca Patterson says in this YouTube Short.

 
 

What’s Next

  • Today, Argentina begins hosting a summit of South American customs union Mercosur in Buenos Aires.
    Today, Singaporean Prime Minister Lawrence Wong visits Cambodia.
    Tomorrow, Indian Prime Minister Narendra Modi visits Trinidad and Tobago.
 
 

The Dalai Lama’s Testament

Tibetan spiritual leader, the Dalai Lama, offers blessings to his followers at his Himalayan residence in Dharamshala

Priyanshu Singh/Reuters

In the Dalai Lama’s new memoir, the spiritual leader directly addresses Tibet’s struggle for autonomy, CFR expert Elliott Abrams writes for Asia Unbound.

 
 

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