Washington, DC

1. Greer noncommittal on sanctions
2. Third aircraft carrier to Iran
3. Trump-Netanyahu evolution
4. House Financial Services drama
5. Data center politics

Mortgage rates jumped to 7.28% from 7.03%, the largest weekly increase in four years, according to Freddie Mac.

US trade representative won’t commit to new Russian sanctions

US Trade Representative Jamieson Greer today declined to commit to imposing Russian sanctions recently passed by Congress, saying that officials plan to “name names” this month but it’s ultimately President Donald Trump’s decision whether to enact the levies, Semafor’s Eleanor Mueller reports from Milwaukee. Trump signed the sanctions package into law last month. A longtime priority of the late Sen. Lindsey Graham, the legislation gives the administration until Oct. 18 to decide whether to sanction countries up to 100% over their use of Russian oil and gas. “What kind of action we’ll take is for the president to decide,” Greer said on the sidelines of the G20 trade meeting. He also brushed off a pending EU-Canada agreement, remarking that “there’s not actually juice left to squeeze in that,” given “they have had a trade agreement for 10 years already.”

Pentagon prepares to send more troops to Iran

The Trump administration is tightening the screws on Iran, combining new sanctions with threats of renewed military action. The Pentagon is sending a third aircraft-carrier strike group to the Middle East, adding around 10,000 troops to the region, The Wall Street Journal reported. The newly deployed ships, fighter jets, and military personnel will arrive by the end of November, raising the prospect of fresh hostilities as Trump teases bombing Iran again after the midterms. Meanwhile, the Treasury Department announced new sanctions targeting Iran’s automotive and rail sectors today, expanding the administration’s economic isolation campaign to networks the department argues have helped sustain Iran’s economy during the US blockade. Other similar sanctions efforts have been blunted by Iran’s relationships with Russia and China, which allow them to work around sanctions.

— Lauren Morganbesser

Trump keeps Netanyahu at arm’s length

When Benjamin Netanyahu was up for reelection in 2019, billboards in Tel Aviv featured the Israeli prime minister and Trump shaking hands. Trump shared an image of it on social media. The White House clarified the post was not an endorsement, but there was no doubt about the strength of the Trump-Netanyahu relationship. Netanyahu is up for reelection again in a few weeks, but Trump isn’t featured in his campaign materials this time. And the president’s been far cooler, too: In an interview with Time, Trump didn’t answer when asked three times whether he thought Netanyahu should “have another term.” “Well, I can only say that I’m not involved in politics anymore,” Trump said. Trump’s popularity among Israelis has cratered since the start of the war in Iran — and with his own elections to worry about, Trump may not want to hold Netanyahu, unpopular in the US, too close, either.

Casten drums up support for Financial Services bid

Rep. Sean Casten, D-Ill., has quietly asked Democrats in recent weeks to support him in a potential bid for the top position on the House Financial Services Committee, Semafor’s Nicholas Wu scoops. If he runs, Rep. Maxine Waters, D-Calif., the top Democrat on the committee since 2013, could see it as an about-face. Casten, 54, privately told Waters, 88, he was not planning on running, Politico reported, after Punchbowl News earlier reported he was interested in the position. The Congressional Black Caucus has been sensitive to the prospect of challenges to its members, like Waters, who serve as committee leaders. Casten, a former energy entrepreneur, is the vice ranking member of the committee. He joined Congress after the Democratic wave election in 2018. Casten’s office declined to comment. Waters’ office did not respond to a request for comment.

Texas politics could delay data center investment

Texas state politics could delay the final investment decision on one of the US’ largest new data center projects, Semafor’s Tim McDonnell reports. Project Kilby, a joint venture between Chevron and the newly-formed energy project developer Joulent, is set to use nearly 3 gigawatts of gas turbines to power a massive Microsoft data center in West Texas. Preliminary earthmoving work is already underway at the site while the developers finalize construction contracts and await final state permits. But the final investment decision, originally expected by the end of this year, could be pushed to 2027 following a moratorium on new data center permits imposed last month by Gov. Greg Abbott, according to Daniel Droog, Chevron’s vice president for power solutions. “The permitting and regulatory side has caused some slowdown or potential delay in the system,” Droog said in an interview.

White House

• President Trump is losing favor among crypto supporters who backed him in 2024. — WaPo
• The company that runs Trump’s crypto coin is hosting a dinner with Trump for top buyers. — Washington Sun
• The Justice Department is reviewing whether the special prosecutor’s office that investigated the 1972 Watergate scandal committed misconduct. — WSJ

Foreign Policy

• South Korea said negotiations on an Alaska LNG project are still under review and no investment amount has been finalized, despite the Trump administration’s announcement of a $50 billion commitment.
• UK police arrested a dual British-Iranian national on suspicion of preparing a terror attack.
• Ukraine said it launched a ballistic missile at a Russian target for the first time in combat.

Campaigns

• State Sen. Christine Drazan could be Oregon’s first Republican governor in 40 years, according to a neck-and-neck poll from Oregon Public Broadcasting.

Education

• The Treasury Department released rules for the US’ first federally funded school voucher program, a key step before the program is implemented in January.

Courts

• The family of Renee Good, a US citizen shot by federal immigration agents in Minneapolis in January, sued the Trump administration over her killing.
• A judge said federal prosecutors cannot refile charges against a former Olympian who was accused of damaging the Lincoln Memorial Reflecting Pool.

Healthcare

• Thousands of legal immigrants across the US lose access to Medicaid today as cuts take effect.

Energy

• The Trump administration told Germany and France to draw down emergency ‌diesel inventories to help lower global fuel prices or face a potential US diesel export ban. — Reuters

Technology

• OpenAI fired three researchers for allegedly sharing confidential company information with a third-party AI safety organization. — WSJ

— President Trump in an interview with Time Magazine.

Laura McGann, editor

With help from Elana Schor, senior Washington editor, and Morgan Chalfant, Washington briefing editor

Graph Massara and Lauren Morganbesser, copy editors

Contact our reporters:

Burgess Everett, Ashley Gold, Eleanor Mueller, Shelby Talcott, Nicholas Wu, David Weigel, David Lim