Blanche Strikes Confirmation Deal With Cornyn, Tillis | Balance of Power 08/03/2026

Summary

President Trump warns Iran that current negotiations are its last chance before a military strike, while Ambassador James Jeffrey analyzes the US-Iran standoff and its impact on Gulf security. The US and Japan jointly intervened to support the yen, and Treasury Secretary Bessent pledges further action if needed. Senate Republicans struck a deal with acting AG Todd Blanche to rescind an anti-weaponization fund, clearing his confirmation path, though legal experts call the agreement hollow. Congress advances a stopgap funding bill to avoid a government shutdown through December.

• Trump issues a 'last chance' ultimatum to Iran, saying he called off a major strike at the request of Gulf allies.
• Former Ambassador Jeffrey says a massive strike on Iran's infrastructure was prepared and that negotiations are ongoing through Oman.
• The US and Japan jointly intervene in currency markets for the first time in 15 years to prop up the yen; Bessent says Treasury will not hesitate to participate again.
• Bloomberg's Mike McKee explains that yen pressure will persist due to interest-rate differentials and a lack of fundamental Japanese action.
• Senators Cornyn and Tillis strike a deal with Todd Blanche to rescind the DOJ's anti-weaponization fund, advancing his confirmation; legal analysts call the agreement unenforceable.
• The Senate prepares to vote on a bipartisan continuing resolution to fund the government through December 11, averting an imminent shutdown.
• Twenty-five states file a lawsuit arguing the Trump administration's latest Section 301 tariffs are unlawful; Robert McWhirter predicts the case will succeed based on the Supreme Court's IEEPA precedent.