Global Express | July 1, 2026 US-Iran Indirect Talks Begin in Doha as Hormuz Crisis Grips the World

---

📰 US-Iran Indirect Talks Begin in Doha Amid Hormuz Standoff

US and Iranian representatives held indirect talks with mediators in Doha, Qatar on Tuesday, in an effort to salvage a preliminary peace agreement between the two sides. US envoys Steve Witkoff and Jared Kushner met with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, while Iran's delegation communicated with mediators from a separate location. Qatar confirmed that no direct face-to-face meetings were scheduled between American and Iranian officials.

The talks come after a sharp escalation in hostilities around the Strait of Hormuz, with both sides exchanging fire near the critical waterway and threatening global oil supply chains. Iran has explicitly rejected any third-party intervention over the strait, insisting that its control falls under Iranian sovereignty. US Central Command stated that American forces intercepted Iranian drones targeting commercial vessels and maintained that the strait "remains open."

Analysts note that while the Doha talks are indirect, they represent the closest the two sides have come to substantive diplomatic engagement in months. Since the outbreak of conflict in March, commercial traffic through the Strait of Hormuz has dropped by more than 90 percent, and global oil prices have continued their volatile upward trend. A breakthrough in this round of talks could pave the way for ending months of devastating war.

— Al Jazeera

---

📰 Afghanistan Launches Retaliatory Airstrikes on Pakistan, Regional Tensions Spike

Afghanistan's Taliban government claimed it carried out airstrikes inside Pakistani territory, targeting ISIS hideouts in Balochistan and Khyber Pakhtunkhwa provinces. The Taliban Defense Ministry said the operation was retaliation for Pakistani cross-border military actions that killed Afghan civilians. Islamabad stated its air defense forces intercepted and shot down four rudimentary drones in Balochistan, with one drone sighted near a government school, injuring two people.

The trigger for this escalation was Pakistan's earlier airstrikes on the Afghan border region, which Kabul says killed at least 28 civilians and wounded 49 others. Pakistan maintains its operations were counterterrorism actions against militants plotting attacks on its soil. Both sides accuse each other of harboring cross-border armed groups, deepening the cycle of violence.

According to the London-based International Institute for Strategic Studies, the Afghan Taliban possesses at least six fixed-wing aircraft, 23 helicopters, and combat drones despite lacking fighter jets. The conflict between the former allies has killed hundreds this year, and Chinese-mediated efforts to de-escalate have yet to yield substantive results.

— Reuters

---

📰 USMCA Review Deadline Arrives with No Deal in Sight

July 1 marks the formal deadline for the US, Canada, and Mexico to decide the future of their landmark free trade pact, but all signs point to the date passing without a resolution. Canadian Prime Minister Mark Carney told reporters on Tuesday he was "not looking for my pen." Mexico and the US have already announced another round of formal bilateral talks for later this month.

President Donald Trump has claimed the deal is "expiring immediately" and suggested the US would be better off without it. However, the USMCA does not automatically terminate on July 1—the agreement remains in force until 2036 even if the deadline is missed. If all three countries cannot agree on renewal, an annual review mechanism kicks in. The US is expected not to declare withdrawal but rather opt for rolling annual reviews.

The USMCA underpins nearly $1.6 trillion (£1.2 trillion) in annual trade among the three nations, covering more than 510 million people. A late 2025 Ipsos survey found that 75 percent of Americans believe the pact has benefited the US economy. Dennis Darby, president of Canadian Manufacturers and Exporters, said the majority of businesses would rather wait for a good deal than accept unequal terms under pressure.

— BBC News

---

📰 Japanese Yen Sinks to 40-Year Low, Intervention Risks in Focus

The Japanese yen weakened to 162.58 per dollar on Tuesday, its lowest level since 1986, keeping investors on high alert for potential government intervention. Finance Minister Satsuki Katayama said the government was ready to take "decisive action" against excessive currency moves, confirming coordination with the United States. Chief Cabinet Secretary Minoru Kihara said Japan will remain prepared to intervene in currency markets if necessary.

Nomura's North Asia chief investment officer Julia Wang noted that while intervention is not tied to any specific exchange-rate level in theory, the move to a new cycle low could heighten domestic concerns about currency weakness and increase the likelihood of official action. However, she argued that any intervention would be unlikely to change the longer-term direction of the yen, given wide interest-rate and real-yield differentials between Japan and the US that continue to favor carry trades.

Between April and May, Japan deployed over 11.7 trillion yen ($72.8 billion) in foreign reserves to prop up the currency. Yet the strong dollar and the Federal Reserve's high-rate stance have kept the yen under sustained pressure. Investors are now closely watching the Bank of Japan's next policy decision, due on July 31.

— CNBC

---

📰 Xi Jinping Urges CPC to Be Adaptable on Party's 105th Anniversary

Chinese President Xi Jinping delivered a 40-minute speech at Beijing's Great Hall of the People on Wednesday, marking the 105th anniversary of the founding of the Communist Party of China. Xi stressed that the Party must keep pace with changing circumstances while safeguarding its achievements, noting that "China's development is currently in a period where strategic opportunities and risks and challenges coexist."

Xi called on Party members to eliminate factors harmful to the Party's advancement and "purity," as well as "all viruses that erode the Party's healthy body." Since coming to power in 2012, Xi has reasserted the Party's absolute authority, launched sweeping anti-corruption campaigns, and purged top military ranks. In April, he sent senior officers to a 10-week political reeducation course to reinforce loyalty.

On Taiwan, Xi called for thorough implementation of the Party's strategy on "resolving the Taiwan issue." Taiwan's Mainland Affairs Council responded that Xi was "basically repeating old talking points" and urged dialogue without preconditions. Founded by just dozens of revolutionaries in 1921, the CPC now claims over 100 million members, or 7.2 percent of China's population.

— Reuters

---

📰 US Supreme Court Expands Trump's Firing Power—But Shields the Fed

The US Supreme Court voted 6-3 on Monday to overturn a 91-year-old precedent, granting President Donald Trump sweeping power to fire executive branch agency leaders. Chief Justice John Roberts wrote in the majority opinion that "the FTC unquestionably exercises executive power, and must therefore be controlled by the Chief Executive."

In a separate 5-4 ruling, however, the high court rebuffed Trump's attempt to fire Federal Reserve Board member Lisa Cook. The Court found that Trump's demand for Cook's resignation via a Truth Social post reading "Cook must resign, now!!!" failed to meet basic due process requirements. Roberts wrote: "That will not do. At minimum, Cook was entitled to some explanation of the evidence at issue, some avenue for a response, and a deadline."

The ruling carries significant implications for newly appointed Fed Chair Kevin Warsh, who faces the possibility of interest rate hikes amid rising inflation—despite Trump's push for lower rates. Cook stated after the ruling that "the Supreme Court's decision recognizes that Federal Reserve independence is essential to fulfilling the congressional mandate of price stability and maximum employment."

— NBC News

---

📰 South Korean Won Slides to Weakest Since 2009 as Foreign Funds Flee

The South Korean won fell as much as 0.6 percent to 1,559.10 per dollar on Wednesday, approaching last month's low of 1,562.20—a level last seen in March 2009 during the global financial crisis. Overseas investors sold a net 1.46 trillion won ($938 million) of stocks on the Kospi index on Wednesday, intensifying downward pressure on the currency.

The won's slide led a broader retreat in Asian currencies, driven by a strengthening US dollar, the Federal Reserve's sustained high-rate policy, and capital outflows from emerging markets back to the US. South Korea's export-dependent economy is particularly vulnerable to exchange-rate volatility, which raises import costs and fuels inflation.

The South Korean government has stated it is closely monitoring foreign exchange markets, but has yet to announce substantive intervention measures. Market expectations are growing that the Bank of Korea may be forced to take verbal or actual intervention to stem the won's decline, though the sustainability of such measures remains questionable against the backdrop of a strong dollar.

— Yonhap News Agency

---

📰 Venezuela Twin Earthquake Death Toll Rises to 1,719, Thousands Still Missing

Venezuelan officials announced Sunday that the confirmed death toll from last week's devastating twin earthquakes in the country's northwest has risen to 1,719, with 5,034 people reported injured. Tens of thousands remain unaccounted for as emergency teams race against time to comb through rubble in search of survivors, with hopes fading with each passing hour.

An aftershock rattled the capital Caracas on Sunday, further terrifying already traumatized residents. The earthquakes represent Venezuela's worst natural disaster in recent years, with large numbers of buildings collapsed, infrastructure severely damaged, and tens of thousands left homeless. International relief organizations have begun arriving in the affected areas to assist rescue efforts.

However, growing public anger at the government's response has sparked protests in multiple locations. Critics argue that Venezuela's prolonged economic crisis has critically weakened the country's emergency response capabilities, making relief efforts extremely challenging as the nation grapples with one of its darkest hours.

— Al Jazeera

---

📰 Record Heat Wave Scorches US East Coast, Millions Under Extreme Warning

Millions of Americans are facing a prolonged and dangerous heat wave heading into the Fourth of July weekend, with forecasters warning of record-breaking temperatures across the eastern half of the country. The National Weather Service predicts actual temperatures could reach as high as 105°F (40.6°C) in parts of the Atlantic Coast.

More alarmingly, heat index values—which factor in humidity—could soar to 110 to 115°F (43.3 to 46.1°C) in some areas. Meteorologists warn this could be the strongest and longest-lasting heat wave in the eastern US in nearly 15 years. The extreme weather coincides with America's 250th Independence Day celebrations, with massive outdoor events planned nationwide facing serious safety concerns.

The National Weather Service has issued heat advisories for multiple states, while health officials urge people to avoid outdoor activities during peak heat hours, stay hydrated, and check on elderly neighbors and those with pre-existing conditions. Local governments have opened cooling centers to provide refuge for residents without air conditioning.

— NPR

---

📰 FIFA World Cup 2026 Knockout Stage Begins, 32 Teams Set for Battle

With the group stage concluding on June 27, all 32 teams advancing to the knockout stage of the 2026 FIFA World Cup have been confirmed. Algeria and Austria secured the final qualification spots, setting the stage for the tournament's most intense phase in the first-ever tri-nation World Cup hosted by the United States, Canada, and Mexico.

The US men's team faces a must-win Round of 32 match on Wednesday, but the Americans have not beaten a European team since 2021 and have not won a World Cup knockout game since 2002, adding high drama to their campaign. This World Cup is historic as the first to feature 48 teams, with the knockout stage expanding from the traditional Round of 16 to a Round of 32 format.

Traditional powerhouses including defending champions Argentina, Brazil, France, England, Germany, and Spain have all advanced. Matches tied after 90 minutes will go to 30 minutes of extra time, followed by penalty shootouts if needed. Billions of football fans around the globe are holding their breath as the tournament enters its decisive chapter.

— Sporting News