The briefing for Wednesday, August 5.

President Donald Trump said a deal to reopen the Strait of Hormuz could be reached as early as Wednesday, as Iran and Oman move closer to an agreement on the critical waterway. Treasury Secretary Scott Bessent told CNBC there's a chance of finalizing a deal today or tomorrow to allow commercial shipping to resume through the strait, which has been largely closed since the U.S. and Israel launched military operations against Iran in late February.

Under the emerging agreement, ships would enter the Persian Gulf through an Iranian-controlled route and exit through an Omani-controlled route, with service fees charged for security and environmental protection, according to two regional officials who spoke to the AP. Oil prices fell nearly 5% on Tuesday on hopes the disruption might end, with Brent crude dropping below $80 per barrel. The strait handled about one-fifth of the world's oil and liquefied natural gas before the conflict began.

The Trump administration has previously opposed any deal giving Iran control over the strait or allowing tolls to be charged. A U.S. official said any temporary routes would not involve Iranian approvals or charges, and the administration remains committed to returning to the status quo where no party controls transit. Trump faces mounting pressure to end an unpopular war that has driven up gas prices ahead of midterm elections. Even as diplomatic hopes rose, attacks on shipping continued, with the Houthis claiming to have fired missiles at a Saudi oil tanker in the Red Sea.

Acting Attorney General Todd Blanche cleared a critical Senate Judiciary Committee hurdle Tuesday after striking a deal with Republican holdouts over President Trump's IRS settlement. The committee voted 12-10 along party lines to advance his nomination following an agreement that formally rescinded a controversial $1.8 billion fund meant to compensate Trump allies who believe they were politically prosecuted.

Senators John Cornyn of Texas and Thom Tillis of North Carolina had threatened to block Blanche's confirmation over the settlement of Trump's lawsuit against the IRS regarding leaked tax returns. In a document sent to lawmakers Sunday, Blanche confirmed the compensation fund would not move forward and clarified that audit immunity granted to Trump, his sons, and the Trump Organization applies only retroactively to claims open at the time of the settlement, not to future tax filings.

The accommodation leaves in place an unusual agreement over the president's taxes that has drawn bipartisan criticism. The original audit deal promised that the U.S. would be 'forever barred and precluded' from examining or prosecuting any of the plaintiffs' tax matters. While the fund has been eliminated and future audits remain possible, the retroactive immunity could still wipe away millions in potential back taxes. A full Senate vote could come by the end of the week, though it remains unclear if Republicans have enough votes to confirm Blanche.

A divided federal appeals court ruled Tuesday that the Trump administration improperly terminated billions of dollars in clean energy grants, handing a victory to nonprofits selected to run the Biden-era program. The full U.S. Court of Appeals for the District of Columbia said EPA Administrator Lee Zeldin broke the law by freezing and then terminating grants for the Greenhouse Gas Reduction Fund, commonly called a 'green bank.'

The $20 billion congressionally authorized program provided money to nonprofits that would make loans and invest in small energy projects, energy-efficient buildings, and transportation initiatives. Zeldin had accused Climate United Fund and other nonprofits of mismanagement and potential fraud, freezing billions placed in a Citibank account. The groups disputed any wrongdoing and sued, arguing the administration violated the Constitution by refusing to spend money authorized by Congress.

Climate United said in a statement that despite 'false allegations and misinformation,' there remains no legal basis for terminating grant awards and clawing back disbursed funds. The decision will be put on hold for several days, giving the EPA time to ask the Supreme Court to intervene. The ruling represents a setback for the Trump administration's efforts to dismantle President Biden's climate initiatives, though the nonprofits won't have immediate access to their funds pending potential Supreme Court action.

Los Angeles County fire officials announced Tuesday that the deadly 2025 Eaton Fire was caused by electrical arcing on a Southern California Edison transmission tower that was out of service. The blaze killed 19 people and destroyed or damaged more than 9,400 homes and businesses before firefighters extinguished it after nearly a month. The fire scorched 22 square miles and burned at the same time as the wind-whipped Palisades fire.

According to the agency's report released after 18 months of investigation alongside electrical and metallurgical experts, the cause was electrical arcing events on the idle SCE tower atop a ridge covered with dry fuel. When bare, uninsulated wires touch or come close together, electricity can jump through the air producing sparks. The report said SoCal Edison was responsible for maintaining equipment 'in a manner that would minimize the risk of catastrophic wildfire.'

The utility had indicated previously its equipment may have been involved, reporting to the California Public Utility Commission that it detected a 'fault' on a transmission line around when the fire started. SoCal Edison spokesperson Kathleen Dunleavy said the utility is reviewing the report and has taken its potential role seriously from the beginning. The utility has filed lawsuits claiming Los Angeles County agencies failed to send timely evacuation warnings and that water agencies didn't provide enough resources as the fire spread. Eighteen of the 19 victims lived in west Altadena.