President Trump canceled $810 million in congressionally approved funding on Friday through a rare "pocket rescission," only the second such move in 49 years. The action affects immigration, education, and housing programs across seven federal agencies.

In a notice to House Speaker Mike Johnson (R-La.), Trump cited the Congressional Budget and Impoundment Control Act of 1974. He reported 11 rescissions of budget authority totaling the specified amount. This executive action bypasses standard legislative approval processes for spending cuts.

Fuel standards rollback approved

Trump announced his approval of new fuel-economy standards that roll back vehicle efficiency rules implemented during Biden's presidency. The Transportation Department is expected to formally finalize these standards on Monday.

The Trump administration argues this move will lower new-car prices and provide automakers with more flexibility in production. Critics warn it could lead to increased gasoline consumption. The change terminates the previous administration's electric vehicle mandate framework.

Iran seeks diplomatic solution

Iran is advocating for a negotiated solution to its conflict with the U.S. and Israel after Trump rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting. The proposal was announced at the UN General Assembly and communicated through Qatari mediators.

Iranian Foreign Minister Abbas Araqchi stated that any action on the waterway depends on conditions set by Iran. "Only a negotiated solution can get them out of this deadlock," Araqchi said, according to Reuters.

Supreme Court revives voter database

The U.S. Supreme Court revived an expanded voter-citizenship database on Friday, allowing states to resume bulk voter screening weeks before the midterms. Federal law bars states from systematically purging voter rolls within 90 days of an election, which limits the immediate practical effect of the ruling.

Vance criticizes H-1B visa usage

Vice President JD Vance expressed strong views against corporations replacing American workers with foreign labor through the H-1B visa program. "Our message to corporate America is simple: We're not going to let you lay off American workers so you can replace them with cheap foreign labor," Vance stated.

Iran's Parliament Speaker Mohammad Bagher Ghalibaf mocked the Trump administration on Thursday, warning that rising U.S. Treasury yields could return America to "1970s rates" accompanied by high gas prices and diesel shortages. The comment followed the benchmark 10-year Treasury yield topping 5.1%.

Yield implications for consumers

Ghalibaf posted on social media platform X that the 5.1% yield on ten-year Treasury bonds would serve as the base rate or floor for the next two years. He stated, "Happy 5.1% 10Y America. Mashallah," and urged the U.S. to "celebrate" the level.

Higher Treasury yields directly impact consumer borrowing costs. Banks typically add profit margins to mortgages based on these yields, resulting in higher interest rates and increased monthly payments for homebuyers. Similarly, banks face higher funding costs for auto loans, which may lead to increased credit card payments as borrowing costs surge.

Geopolitical context and sanctions

The remarks reference the economic crises of the 1970s, specifically the 1973 oil embargo by oil-producing nations against Western countries supporting Israel, and the 1979 Iranian revolution which triggered global oil shortages. Ghalibaf warned that Iran would return the U.S. to this era of "high gas prices, diesel shortages and bell-bottoms."

This rhetoric coincides with reports from the United Nations General Assembly (UNGA) where Iran's Foreign Minister Abbas Araghchi indicated a desire to make a deal. He stressed the U.S. return to conditions laid out in the June Memorandum of Understanding (MoU).

Pressure from US officials

U.S. Treasury Secretary Scott Bessent stated that flight restrictions under Operation Economic Outcast were effective, citing an 80%-90% reduction in external flights in Iran. Bessent previously threatened to remove countries and institutions supporting Iran from the dollar system and impose sanctions.

In response, Iran's Security Chief Mohsen Rezaee warned neighboring countries against participating in restrictions. He declared that the Strait of Hormuz will remain closed until the U.S. agrees to return to the MoU conditions, noting that Tehran had sent these terms to the Trump administration via intermediaries.

What the Numbers Show

The divergence between diplomatic signals and market realities is stark. While Iranian officials publicly mock the 5.1% yield as a sign of U.S. economic fragility, the simultaneous disclosure of an 80%-90% reduction in Iranian external flights indicates severe operational constraints on Tehran's connectivity. This suggests that while Iran leverages energy market fears (the Strait of Hormuz closure threat) as a bargaining chip, its own infrastructure is significantly isolated by current U.S. pressure tactics.