The briefing for Saturday, January 3.

The United States conducted its first airstrikes inside Venezuela's capital Caracas early Saturday morning, with at least seven explosions heard around 2 a.m. local time. Venezuela's government says at least 27 people were killed in strikes on what it describes as civilian and military installations across multiple states. Smoke was seen rising from a military base hangar in Caracas, and another installation in the capital lost power. The Pentagon referred requests for comment to the White House, which has not responded.

President Nicolás Maduro declared a state of external disturbance and ordered all national defense plans implemented. His government called on supporters to take to the streets, with a statement saying the administration was activating mobilization plans to repudiate what it called an imperialist attack. The Federal Aviation Administration has banned U.S. commercial flights in Venezuelan airspace over ongoing military activity.

The strikes represent a major escalation in the Trump administration's monthslong pressure campaign against Venezuela. The U.S. military has been targeting alleged drug-smuggling boats since September, killing at least 115 people across 35 known boat strikes as of Friday. Last week, the CIA conducted a drone strike at a Venezuelan docking area believed used by drug cartels. Trump has justified the operations as necessary to stem drug flow into the U.S., asserting the country is engaged in an armed conflict with cartels. The U.S. has also seized sanctioned oil tankers and ordered a blockade in moves designed to tighten pressure on Venezuela's economy.

At least 10 people have been killed in violence surrounding protests that erupted across Iran over the country's worsening economy. Two people died in clashes in the southwestern city of Lordegan on Thursday, three in Azna, and another in Kouhdasht in western Iran, according to the semi-official Fars news agency and human rights group Hengaw. A member of Iran's security forces was killed Wednesday in Kouhdasht, and a grenade explosion in Qom killed one person Saturday.

President Trump warned Friday that if Iran violently kills peaceful protesters, the United States will come to their rescue. Writing on Truth Social, Trump said the U.S. is locked and loaded and ready to go, though he provided no further details on what action Washington might take. A senior adviser to Iran's Supreme Leader Ali Khamenei responded that Trump should be careful, warning that U.S. interference would destabilize the region and destroy American interests in the Middle East.

The protests, which began Sunday among shopkeepers angered by the rial's sharp fall against the dollar, have spread to over 100 locations in 22 of Iran's 31 provinces. They represent the most widespread demonstrations since 2022, when nationwide protests followed the death of Mahsa Amini in police custody. Many protesters are calling for the end of Khamenei's rule, with some demanding a return to monarchy. President Masoud Pezeshkian has said he will listen to legitimate demands, but Iran's prosecutor-general warned that attempts to create instability would be met with a decisive response.

Ukrainian President Volodymyr Zelenskyy appointed Gen. Kyrylo Budanov, the head of military intelligence, as his new chief of staff on Friday. The 39-year-old replaces Andrii Yermak, who resigned in November after anti-corruption officials raided his apartment as part of an investigation into alleged graft in Ukraine's energy sector. Zelenskyy said Ukraine needs to focus on security issues, defense force development, and peace negotiations, areas that fall under the presidential office.

Budanov has led Ukraine's military intelligence agency, known as the GUR, since 2020 and is one of the country's most recognizable wartime figures. A career military intelligence officer, he rose through the ranks after Russia's 2014 annexation of Crimea and participated in special operations in eastern Ukraine before the 2022 full-scale invasion. Under his leadership, the GUR expanded operations targeting Russian military capabilities far beyond front lines, with Ukrainian officials crediting the agency with strikes on command structures, logistics hubs, and naval assets deep inside Russian territory.

Zelenskyy also announced he would nominate Minister of Digital Transformation Mykhailo Fedorov, 34, as the new defense minister, replacing Denys Shmyhal. Fedorov is credited with spearheading drone technology introduction in Ukraine's army and developing successful e-government platforms. The appointment of an intelligence chief to lead the presidential office represents an unusual shift, placing someone with specialized security experience at the center of Ukraine's political and diplomatic coordination as U.S.-led peace negotiations continue. Budanov participated in recent talks with the U.S. negotiating team and has maintained contact with Russia on issues like prisoner exchanges.

China's BYD has overtaken Tesla as the world's biggest seller of electric vehicles, marking the first time the Chinese automaker has outpaced its American rival in annual sales. Tesla reported Friday that car sales dropped 9% in 2025 to 1.64 million vehicles sold worldwide, the company's second consecutive year of falling deliveries. BYD announced Thursday that sales of its battery-powered cars rose nearly 28% last year to more than 2.25 million vehicles.

Tesla faced multiple challenges in 2025, including mixed reception to new offerings, unease over CEO Elon Musk's political activities, and intensifying competition from Chinese rivals. Fourth-quarter sales fell 16%, partly due to the repeal of a government subsidy that had knocked up to $7,500 off the price of certain electric vehicles. Wall Street analysts have lowered Tesla sales estimates for 2026, signaling an increasingly gloomy outlook. In October, Tesla responded by launching lower-priced versions of its Model Y and Model 3, with the stripped-down Model Y priced just under $40,000 and the Model 3 under $37,000.

Despite BYD's sales growth, which slowed to its weakest rate in five years, Tesla has remained more profitable in recent quarters. Chinese firms including BYD have put pressure on Western rivals by pricing vehicles below established brands. BYD's rapid expansion in Latin America, Southeast Asia, and Europe continues despite many countries imposing steep tariffs on Chinese EVs. In October, BYD said the UK had become its biggest market outside China, with sales surging 880% in the year ending September, driven by strong demand for the plug-in hybrid version of its Seal U SUV.

Minnesota officials have until January 9 to provide the Trump administration with verification information about providers and parents receiving federal child care funds or risk losing $185 million in annual federal funding. The Administration for Children and Families announced this week it would freeze child care funds to all 50 states, requiring additional levels of verification and administrative data before releasing more funding from the Child Care and Development Fund, which makes child care affordable for low-income families.

The freeze comes after a series of fraud cases at Minnesota day care centers, many run by Somali residents, and allegations from a right-wing influencer claiming widespread abuses. An HHS spokesperson said a child care fraud hotline set up by the federal agency has received more than 200 tips. The U.S. House Committee on Oversight and Government Reform will hold a hearing Wednesday to discuss allegations of fraudulent use of federal funds in Minnesota.

Minnesota's Department of Children, Youth, and Families said it learned about the funding freeze at the same time as the public through social media, receiving formal communication from the federal government only late Tuesday night. The department said inspectors conducted spot checks and reviews of nine centers this week in response to the influencer's viral video and found they were operating as expected. The agency noted there are 55 open investigations involving child care providers. Minnesota Democrats say the Trump administration is playing politics and hurting families and children, while Trump has also targeted the state's large Somali community with immigration enforcement actions.

Saudi Arabia and the United Arab Emirates have entered unprecedented direct confrontation in Yemen after UAE-backed separatist forces declared war on Friday. The Southern Transitional Council accused Saudi-backed government forces of launching attacks alongside air strikes by the Saudi air force. On Friday, seven people were killed in a Saudi air strike on an STC military camp in Hadramawt province, following Tuesday strikes on the southern port of Mukalla where the coalition accused the UAE of delivering military equipment to separatists.

The escalation stems from the STC's December 2 military offensive in eastern Yemen, where it rapidly seized territory from government forces including oil-rich Hadramawt province bordering Saudi Arabia. The STC, which seeks an independent state in southern Yemen and controls the vast majority of the south, said the offensive was necessary to restore stability. The head of Yemen's Presidential Leadership Council denounced it as a rebellion threatening to fracture Yemen and plunge the region into chaos.

Saudi Arabia's foreign ministry backed calls for UAE forces to leave Yemen within 24 hours, warning that the country's national security is a red line. The UAE initially denied involvement but then agreed to withdraw its forces. Both Gulf powers had intervened together on behalf of Yemen's internationally recognized government in the country's civil war against Iran-backed Houthi rebels, but the alliance has fractured. Yemen's civil war broke out in 2014 when Houthis took control of northern Yemen including the capital Sanaa, with a Saudi-UAE coalition launching military operations in 2015 to restore government rule.