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/ International Affairs

US and Iran say deal to reopen Strait of Hormuz is β€œclose”

Amirhossein Khorgooei / Getty Images

Iran and Oman are reportedly nearing an agreement to widen access to the Strait of Hormuz, though the deal is dependent on whether other nations in the region accept the terms.

Oman has served as the primary mediator between Washington and Tehran as Gulf nations have continually pushed both sides to reach a diplomatic solution.

How did we get here?

On Tuesday, President Trump said such a deal could happen β€œtomorrow or the next day,” and later revised that statement, saying it could happen today. Iranian officials echoed Trump’s claims, but with some key differences.

According to Iran's state news agency IRNA:

  • The new deal represents a new security model for the strategic waterway rather than a full reopening.

  • It would manage the movement of commercial vessels, with ships entering through Iranian waters and exiting through Omani waters.

The US is not a fan of that idea: The Trump administration has previously ruled out any deal that would give Iran control over the strait, which was an open international waterway before the US and Israel attacked Iran in February.

What else is happening? Shortly after the US paused its strikes, reports surfaced that the US was facing significant shortages of munitions. President Trump later denied those claims, and said he is "extremely happy" with the job being done by Defense Secretary Pete Hegseth.

🌎 Why is this important? A deal to keep ships moving through the Strait of Hormuz could help prevent spikes in gas prices and reduce pressure on the cost of everyday goods. But if negotiations break down, Americans could once again face higher fuel prices and broader inflation driven by disruptions to global oil supplies.

See what's changed, recent data, what we're watching next, and every other major story that affects you on our Watchlist… completely free.

/ Security

Iran may have hacked the water systems of a dozen US states

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Officials say drinking water and wastewater utilities in at least 12 states have been targeted by cyberattacks, with investigations focusing on potential links to Iranian hackers.

What’s going on?

The cyberattacks targeted internet-connected systems that control pumps, wells, valves, and water pressure, but not the water supply itself. Authorities said the water supply was not contaminated, though some Minnesota residents experienced low water pressure and temporary boil-water notices.

  • More than 30 systems in Minnesota and nine in Michigan were compromised.

  • Utilities in at least 10 other states are also reporting incidents.

How did the hackers do it? Officials say the hackers changed passwords, modified network settings, and briefly locked operators out of control systems. However, built-in safety measures and manual backups prevented any contamination of the water supply.

Are the Iranians at fault? It’s too early to say. Investigators believe the campaign is likely linked to Iran, though the US government has not formally attributed responsibility. Hacker groups tied to Iran have previously carried out cyberattacks against US water utilities and a range of other American organizations.

🌎 How does this affect you? There are over 152,000 public water systems in the US, many of which use outdated technology and lack modern security measures. If the attacks continue and are able to contaminate the water supply, it could force boil-water notices, disrupt daily life, and leave communities temporarily relying on bottled water.

This is a developing issue. Track it using our cybersecurity index.

/ Trivia

Test your knowledge of this week’s events

πŸ€– Which everyday device was included in the FCC's new restrictions on certain foreign-made tech?

The new policy bans far more than just humanoid robots.

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/ Work & Life

Parents are following Gen Z into the workplace

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Helicopter parenting is no longer ending at college. Employers across the US say more parents are stepping into the workplace even after their adult children are hired.

Professional parents

Many guardians say they're simply trying to help in a difficult job market, but recruiters warn the growing trend is often hurting the very people it's meant to support. According to a survey by resume service Zety:

  • 20% of Gen Z respondents said a parent had accompanied them to a job interview.

  • Over 50% of HR professionals said they had dealt with parents contacting them on behalf of adult employees or job candidates at a recent national HR conference.

It’s annoying your future boss: Some employers reported parents questioning performance reviews, discussing health insurance options, or even calling in sick for them. While networking help or career advice is generally fine, those surveyed said parents directly communicating with employers is typically crossing the line.

So, maybe leave it to your kid? Recruiters say continued parental involvement raises red flags about a candidate's independence and ability to handle workplace challenges, pushing them further down the totem pole.

🌎 Why is this important? The trend could make it harder for young workers to stand out, as employers increasingly expect candidates to handle obstacles on their own. It may also push companies to adopt stricter boundaries, making independence and communication skills even more important for career advancement.

Track the job market, remote work, college vs. skilled trades, AI-related layoffs, and more with our Watchlist.

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/ Government

The US is buying the yen in bulk

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Earlier this week, the US Treasury bought massive amounts of the Japanese currency for the first time in almost three decades, helping lift its value against the dollar.

Why did the US help out?

Besides being a staunch ally, the yen recently dropped to its lowest level against the dollar in four decades, largely because US interest rates are much higher than Japan's:

  • That encouraged investors to shift money into dollar-denominated assets that offer higher returns, reducing demand for the yen.

  • At the same time, ballooning government debt and rising import costs for oil increased everyday costs for Japanese households.

What if the US didn’t help out? The main fear was that Japan would sell off its large holdings of US government bonds to buy yen and support its currency, which would push down bond prices and drive up US borrowing costs.

So the yen is good to go? For now, at least. Analysts say the intervention will give some temporary relief, but lasting effects will likely require Japan's economy and interest rates to strengthen.

🌎 Why does this matter? For Americans, a weaker dollar against the yen means trips to Japan become more expensive because each dollar buys fewer yen. Imported Japanese products, from electronics to cars, could also become slightly more expensive if the exchange rate shift lasts.

Follow related topics like interest rates, government fiscal policy, inflation, and more live with our Watchlist.

/ Markets

The US stock market just reached an all-time high

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US stocks surged to record highs on Tuesday after easing tensions in the Middle East drastically dropped oil prices and renewed optimism around the AI boom lifted technology shares.

Market mania

After President Donald Trump’s announcement to delay further military strikes in Iran, investors pushed the Dow and the S&P 500 to unprecedented heights. Energy, however, was the biggest catalyst:

  • Brent crude dropped nearly 5% after hopes grew that diplomacy with Iran could reopen the Strait of Hormuz.

  • Lower oil prices also pulled Treasury yields down, making investors more optimistic that inflation could continue cooling while reducing pressure on the Federal Reserve.

Strong earnings also played a role: More than 85% of S&P 500 companies beat earnings expectations, while the "Magnificent Seven" tech giants gained about $1.77 trillion in value over three trading days, suggesting the economy is as strong as ever.

🌎 Why should you care? Strong markets can make it easier for businesses to raise money for expansion, hire more workers, and invest in new products and technologies. At the same time, a healthy market shows confidence in the economy and can support job growth, wage increases, and business investment if the rally continues.

We’re tracking a wide range of financial indicators on our Watchlist. Click below for new developments on interest rates, financial stress, inflation, and more.

/ Fast Facts

Catch up on this week’s weird news

Gif by OceanaOrg on Giphy

> New research found that a humpback whale's dive directly shapes the structure of its song, the first evidence linking underwater movements to the stages of the courtship songs males sing during breeding season.

> Scientists have captured the most detailed images of the Sun ever taken, revealing tiny swirling, wave-like structures never before seen on a star.

> Clinical trial suggests "poop pills" made from healthy gut bacteria may help treat chronic insomnia, with an early study showing participants slept longer and woke up less often during the night.

> Scientists have confirmed that a plant Charles Darwin long suspected was carnivorous does, in fact, consume insects, suggesting carnivorous plants may be more common than previously thought.

> A new study showed a startup created two allergen-free beagles using CRISPR, a breakthrough that could expand pet ownership while boosting demand for breeders over animal rescues.

> The North American box office set a new record with $430 million in ticket sales, driven by The Odyssey and Spider-Man: Brand New Day, which both happen to include Tom Holland, Zendaya, and Jon Bernthal in their casts.

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