The briefing for Friday, April 24.

Acting Attorney General Todd Blanche signed an order Thursday reclassifying state-licensed medical marijuana from Schedule I to Schedule III, marking a major shift in federal drug policy. The change gives licensed medical marijuana dispensaries significant tax breaks by allowing them to deduct business expenses for the first time, and it eases barriers to researching cannabis. The order does not legalize marijuana at the federal level but sets up an expedited registration system for state-licensed producers and distributors with the Drug Enforcement Administration.

The reclassification legitimizes medical marijuana programs in the 40 states that have adopted them since California became the first in 1996. According to the BBC, marijuana has been classified as Schedule I since 1970, defined as having high potential for abuse and no accepted medical use. The new Schedule III classification puts medical marijuana on par with drugs like Tylenol with codeine, implying moderate to low potential for dependence. Marijuana or products not distributed through state medical programs will remain Schedule I.

Trump ordered his administration in December to work quickly on reclassification, and a new administrative hearing is scheduled for June to consider broader marijuana rescheduling that could benefit recreational markets. The Biden administration had initiated a review in 2022, but the process stalled before completion. Some critics argue legalization has led to stronger cannabis products that need research rather than less strict classification, with cannabis use disorder affecting about 3 in 10 users according to the CDC. The National Organization for the Reform of Marijuana Laws called the move mostly symbolic and continues pushing for full federal legalization.

Warner Bros Discovery shareholders approved Paramount's $111 billion takeover on Thursday, moving the massive media consolidation closer to completion. The deal would see Skydance owner Paramount take control of Warner Bros' entire portfolio, including HBO Max, CNN, Harry Potter, Game of Thrones, and the Discovery Channel. The combined entity would fold Warner Bros' streaming customers into Paramount's portfolio, which already includes CBS, Nickelodeon, Comedy Central, and Paramount+.

The approval follows months of corporate drama after Warner initially rebuffed Paramount's overtures to strike a $72 billion deal with Netflix instead. Paramount went directly to shareholders with a hostile bid for the whole company, eventually offering more money than Netflix, which abruptly withdrew from the race. More than 1,400 actors, directors and filmmakers, including Emma Thompson and Ben Stiller, signed a letter in April opposing the merger, warning it would result in fewer opportunities for creators and less choice for audiences.

The deal still faces regulatory hurdles from the U.S. Department of Justice and European competition authorities. Senator Elizabeth Warren called it an antitrust disaster and said state attorneys general would try to stop it. Trump has frequently attacked CNN and said in December the network should be sold as part of any Warner Bros takeover. Paramount expects the deal to finalize by September pending regulatory clearances, though market analysts suggest Washington is likely to approve it while European authorities may impose stricter conditions.

U.S. forces conducted a maritime interdiction on the M/T Majestic X, a sanctioned ship carrying Iranian oil in the Indian Ocean, according to the Defense Department on Thursday. This marks the latest in a series of ship interceptions since the U.S. imposed a naval blockade on Iranian ports on April 13. Under the blockade, U.S. Central Command has ordered 33 vessels to return to port, with the Pentagon stating it will continue stopping ships suspected of providing material support to Iran anywhere they operate.

President Trump on Thursday ordered the U.S. Navy to shoot and kill any boat laying mines in the Strait of Hormuz, writing on social media that there should be no hesitation. Trump claimed U.S. forces have total control of the strait and said the blockade is 100% effective, though he acknowledged extending a two-week ceasefire at Pakistan's request. Iran's deputy parliament speaker claimed Thursday that first revenues from tolls imposed on ships using the waterway had been deposited with Iran's Central Bank, though the BBC could not independently verify this claim.

A day earlier, Iran's navy said it seized two cargo ships in the strait after reports that three vessels came under fire from Iranian forces. BBC Verify found that while two vessels are clearly identifiable in footage shared by Iran's Revolutionary Guard, aerial shots appear filmed hours after the initial reported attack. Greek authorities denied one vessel was seized and said its captain remains in control, though transponders on both ships have been switched off. The Pentagon dismissed reports suggesting U.S. forces might need six months to remove mines, calling a six-month closure of the strait an impossibility and completely unacceptable.

The European Union approved a 90-billion-euro ($106 billion) loan package for Ukraine on Thursday after Russian oil began flowing again through the Druzhba pipeline to Hungary and Slovakia, ending months of political deadlock. The funds will help Ukraine meet its economic and military needs for two years, with roughly one-third going toward budgetary support and the remainder directed to defense spending including weapons procurement and domestic arms production. The first tranche is expected to be released in coming months, with 45 billion euros available for the remainder of 2026 and another 45 billion euros for 2027.

The approval came after Hungary and Slovakia confirmed that oil deliveries through the Ukraine-linked section of the Druzhba pipeline had resumed Thursday. The pipeline had been offline since January after Ukrainian officials said it was damaged in a Russian attack, while Hungarian and Slovak governments accused Ukraine of deliberately cutting off supplies. Hungarian energy group MOL confirmed it received crude oil at pumping stations, ending a nearly three-month hiatus. The International Monetary Fund estimates Ukraine faces a financing gap of roughly 136 billion euros over the next two years, with the EU loan expected to cover about two-thirds of Ukraine's funding needs.

The political greenlight followed Hungary's Viktor Orbán reneging on a December deal to provide the funds, angering the other 24 EU countries. Orbán, who was recently defeated in an election, had blocked the loan over the pipeline dispute. The EU also approved a new raft of sanctions against Russia on Thursday, measures that had been prepared early this year but were blocked by Hungary and Slovakia. EU leaders have agreed Ukraine will only begin repaying the loan once Russia pays war reparations, with member states opting to borrow money on international markets to lend to Ukraine rather than using frozen Russian assets as collateral.

Businesses have paid up to $4 million in auction fees to cross the Panama Canal as the Strait of Hormuz blockade forces massive rerouting of global shipping, according to the Panama Canal Authority. While passage through the waterway normally comes at a flat rate of $300,000 to $400,000 via reservations, companies can pay additional fees in an auction for priority slots. These additional costs have jumped from the previous $250,000-$300,000 range to an average of $425,000 in recent weeks, with some oil companies paying over $3 million extra to accelerate passage.

Panama Canal administrator Ricaurte Vásquez said one unnamed company paid an extra $4 million when its fuel vessel had to redirect from Europe to Singapore because of geopolitical tensions. The costs reflect last-minute shifts and greater urgency as ships need to move faster amid larger trade chaos, rather than vessels piling up at the canal. Companies decide how high to bid for priority slots, with the auction system awarding crossings to the highest bidder rather than making them wait days off the coast of Panama City.

At the same time, Panama's government has been dealt a blow by the conflict. On Wednesday, Panama's foreign ministry accused Iran of illegally seizing the Panama-flagged vessel MSC Francesca in the Strait of Hormuz, calling it a serious attack on maritime security and unnecessary escalation. Panama has one of the world's largest ship registries. Meanwhile, German airline company Lufthansa announced it would cut 20,000 short-haul flights through October as the war drives up oil prices and deepens worries about jet fuel shortages, with the price of jet fuel more than doubling in some markets since late February.

Iran's Revolutionary Guard seized the Panama-flagged cargo ship MSC Francesca in the Strait of Hormuz on Wednesday, according to Panama's foreign ministry, which called the seizure a serious attack on maritime security. The incident occurred as Iran attacked three cargo ships in the strait, capturing two of them, in an assault that raised new concerns about shipping safety through the waterway where 20% of all crude oil and natural gas passed during peacetime. BBC Verify analyzed footage shared by the Revolutionary Guard showing Iranian soldiers seizing the ships, though aerial shots appear to have been filmed hours after the initial reported attack.

Panama, which operates one of the world's largest ship registries, said the MSC Francesca was forcibly taken by Iran and called it an unnecessary escalation at a time when the international community is advocating for the Strait of Hormuz to remain open to international navigation. Greek authorities denied that another targeted vessel, the Epaminondas, was seized and said its captain remains in control, though transponders on both vessels have been switched off. It wasn't immediately clear if MSC Francesca remained in Iranian custody.

The seizures came as the U.S. maintained its naval blockade of Iranian ports despite Trump extending a ceasefire at Pakistan's request. Iran described earlier U.S. ship interceptions as piracy, and the powerful head of Iran's judiciary claimed three violating ships in the strait were subject to enforcement, calling the show of strength by Iranian armed forces a source of pride. The conflict has effectively choked off nearly all exports through the strait with no end in sight, sending Brent crude oil prices above $100 per barrel, a 35% increase from prewar levels.