Early Edition: July 1, 2026

President Trump considered escalating military action against Iran but opted for continued diplomatic negotiations, with officials noting flexibility on a nuclear deal deadline. Oman proposed a voluntary fee system for shipping through the Strait of Hormuz, while Saudi Arabia blocked a U.S. operation there, prompting U.S. threats to reduce military support. In Lebanon, 400,000 displaced people have returned to southern regions amid ongoing Israeli military presence.