Tensions in Gaza. Hamas returned the bodies of four dead hostages to Israel last night, hours after Israel threatened to reduce aid flowing into the territory and accused Hamas of being too slow to hand them over. Israeli authorities said that one of the bodies did not belong to a known hostage. It was not immediately clear Wednesday whether the country would follow up on its aid threat. Meanwhile, Trump said yesterday that Hamas had communicated it would disarm, but warned that if it does not, “we will disarm them…quickly and perhaps violently.”
U.S. aid for Argentina. Trump suggested yesterday that a $20 billion financial support package for Argentina is contingent on President Javier Milei’s party performing well in midterm elections later this month. “If he wins, we’re staying with him, and if he doesn’t win, we’re gone,” Trump said. Argentina’s bonds fell in value following the comment. U.S. Treasury Secretary Scott Bessent had previously pledged support for Argentina saying that the success of Milei’s reforms was of “systemic importance.”
U.S. strike in the Caribbean. The U.S. military killed six people in a boat off the coast of Venezuela that was allegedly carrying drugs, Trump said yesterday. He claimed that intelligence revealed the vessel was associated with “narcoterrorist networks” but did not provide further details. It is at least the fifth such deadly strike in recent weeks. Venezuela’s Nicolás Maduro administration did not immediately respond; it has previously accused the Trump administration of trying to drive it from power.
Pentagon press restrictions. At least thirty news organizations are expected to lose access to the Pentagon building today after rejecting a new Defense Department policy restricting communication with sources. The policy threatens to revoke credentials from and deem a security risk journalists who gather information the Pentagon hasn’t authorized for release, even if it’s unclassified. Major broadcast networks said in a joint statement this would restrict the “ability to keep the nation and the world informed of important national security issues.” A Pentagon spokesperson has said that access to the building is “a privilege, not a right.”
IMF adjusts growth forecast. The global economy is expected to grow 3.2 percent this year and 3.1 percent next year, down from 3.3 percent in 2024, the International Monetary Fund (IMF) said yesterday. Echoing a recent report from the World Trade Organization, the IMF said the impact of U.S. tariffs on the world economy has so far been smaller than expected. The United States is set to grow 2 percent this year, less than the world average. That’s a decrease from 2.8 percent in 2024.
Response to Chinese mineral curbs. Beijing’s announcement last week of sweeping new rare earth export controls is prompting pushback beyond the United States, where Trump retaliated with a 100 percent tariff. Group of Seven countries will discuss the restrictions at a meeting this week, the European Union (EU) economy commissioner said. Meanwhile, a Taiwanese economic official said the country will encourage companies to recycle and refine rare earths. India plans to create a rare earths stockpile and discuss the minerals with the United States in trade talks this week.
France delays pension reform. Prime Minister Sébastien Lecornu announced that he supports suspending President Emmanuel Macron’s flagship pension reform until after France’s next presidential election in 2027. The reform was approved in 2023 without a legislative vote and sparked mass protests across the country. Lecornu’s concession came as he faced a no-confidence vote later this week amid congressional opposition to the reform.
EU tech transfer stance. The EU is considering policies that would require Chinese companies investing in the bloc to transfer their technologies to local firms and use set amounts of EU goods and labor, Bloomberg reported. A European Commission spokesperson said no final decision had been made but that steps “to foster a strong, competitive, and decarbonized European industry” were under consideration.
