Washington, DC

1. Hostilities reignite in Gulf
2. War sows farm woes
3. DCCC irks Latino colleagues
4. Fed independence chatter
5. SCOTUS restores mail-order mifepristone

GameStop shares ▼ 10% after CEO Ryan Cohen announced a takeover offer for eBay, which is five times its size.

Hostilities flare as US guides ships through strait

Fighting erupted in the Strait of Hormuz today after the US initiated a program to help guide vessels out of the Gulf that have been stranded there since the war began. President Donald Trump told Fox News that Iranians would be “blown off the face of the earth” if they attack US vessels involved. After the US announced two commercial ships had traversed the strait safely, Tehran unsuccessfully launched drones and missiles at US vessels, according to Admiral Brad Cooper, who confirmed that Iran hit ships from other nations without saying how many. The US military sank half a dozen small Iranian ships. Meanwhile, the UAE reported an Iranian drone damaged a crucial oil hub. Trump has reportedly grown impatient over stalled negotiations. “He doesn’t want to sit still,” a senior US official told Axios.

Iran war fuels pain for farmers

Drivers aren’t the only ones paying more for fuel — so are US farmers, and the added expense is taking a toll. The price of farm diesel has surged 46% since the start of the Iran war, raising costs for fieldwork, fertilizer transport, and irrigation during key planting months. Fertilizer prices are soaring, too, as nearly a third of the world’s fertilizer travels through the Strait of Hormuz. Close to 70% of farmers surveyed recently by the Farm Bureau say they can’t afford the amount of fertilizer they need. US farm bankruptcies have been rising recently — by 55% in 2024 and 46% in 2025. In 2026 they’ve risen another 70%, The New York Times reports. The circumstances are tough for Republicans courting rural voters. Vice President JD Vance heads to Iowa tomorrow to boost Rep. Zach Nunn, who holds a swing seat.

Establishment endorsements frustrate Latino Democrats

The House Democratic campaign arm’s endorsements in two competitive primaries are aggravating some in the party who see favoritism at work, Semafor’s Nicholas Wu reports. BOLD PAC, the campaign committee of the Congressional Hispanic Caucus, told Semafor that Democrats would have to work to earn Latino voters’ trust after bypassing their preferred candidates in districts with substantial Latino populations. “Latino voters and candidates … are not a small factor in the fight for the House majority; they are central to it,” said BOLD PAC Chair Rep. Linda Sánchez, D-Calif. The DCCC rolled out eight new candidates Monday morning for its “red to blue” program for candidates in competitive seats to get national support. DCCC Chair Rep. Suzan DelBene, D-Wash., said the candidates “represent the strength of our people-first message and the broad appeal of our top-tier candidates.”

— Nicholas Wu

Fed officials worry about independence

Current and former Federal Reserve officials have been busy talking with reporters — about Fed independence. As Kevin Warsh glides toward confirmation, half a dozen former Fed officials told CNBC that they find Warsh’s views on the central bank’s independence unclear at best, worrisome at worst. Warsh has said the Fed should be independent on monetary policy (i.e., rates), but work with Congress and the White House on “non-monetary policy.” Some fear that approach could cost the Fed control of its balance sheet, leaving the central bank unable to respond adequately in a crisis. Meanwhile, current and former Fed officials appointed by presidents of both parties told The Wall Street Journal they support outgoing Chair Jerome Powell’s decision to stay on the board after his chairmanship ends, and hope they’d make the same decision if they were in his position.

Abortion advocates get temporary reprieve

The Supreme Court temporarily restored access to mifepristone by mail after a lower court limited how the abortion drug can be prescribed. The order signed by conservative Justice Samuel Alito is a temporary win for abortion advocates: “Pill pushers receive every benefit of the doubt, including today, as Justice Alito allows pill traffickers and big pharma to operate temporarily while arguments are sent to the Court,” said the head of one anti-abortion group. But it’s not the court’s final word on the issue. The order will remain in effect until at least May 11, giving more time for the legal fight over Louisiana’s efforts to bar telemedicine prescribing of mifepristone to play out. Organizations that support abortion access are urging providers to prepare to shift from a two-drug protocol — mifepristone and misoprostol — to just misoprostol, if necessary.

On Wednesday, May 20, Rep. Tom Emmer, R-Minn., House Majority Whip and Vice Chairman of the House Financial Services Subcommittee, will join Semafor for the Banking on the Future Forum.

The global financial landscape is evolving at a pace unseen in previous years, propelled by the adoption of new technologies and rapid innovation. As Washington’s regulatory approach evolves, new opportunities are emerging, but questions remain around how these policy shifts will impact the industry and how consumers access services.

Semafor editors will host on-the-record conversations with Jonathan V. Gould, Comptroller of the Currency; Rep. French Hill, R-Ark., Chairman of the House Financial Services Committee; Rep. Bryan Steil, R-Wis.; Sarah Levy, CEO of Betterment; and additional industry leaders, on how policy and technology are steering the industry’s trajectory.

Join us as we examine how evolving regulations are shaping innovation and what they signal for the future of financial technology.

May 20 | Washington, DC | Request Invitation

White House

• The White House counsel’s office is giving private briefings to political appointees on how to prepare for congressional oversight in the case of Democratic wins in the midterms. — WaPo
• The White House is waving Health and Human Services Secretary Robert F. Kennedy Jr. off vaccine policy, urging him to focus on new health initiatives to help Republicans in the midterms. — Reuters

Technology

• An independent watchdog found that the Department of Homeland Security failed to effectively secure smartphones used by staff in its intelligence office, posing cybersecurity risks.
• The Trump administration is considering an executive order to increase government oversight of new AI models. — NYT

Courts

• A federal magistrate judge said the treatment of the man who allegedly attempted to assassinate President Trump at the White House Correspondents’ Dinner appears to be unfairly punitive.
• Multiple senior DC police officials are facing possible termination, including some linked to an investigation by the department into manipulation of crime data. — WaPo

Environment

• The Trump administration is evicting bison herds from federal land in Montana, siding with ranchers over environmentalists.
• It’s also blocking more than 150 onshore wind farms across the US by delaying routine military reviews. — NYT

Business

• Anthropic is launching a $1.5 billion joint venture with major Wall Street firms to help businesses adopt AI tools. — WSJ
• Most people lose money on prediction markets like Polymarket and Kalshi, while a small group of data-driven traders capture the majority of profits. — WSJ
• Kalshi is putting new tools in place to prevent minors from trading on the platform. — Axios

World

• Ukraine intensified drone strikes on Russian oil facilities, triggering poisonous “black rain.”
• Beijing has ordered Chinese companies to ignore US sanctions on private refiners linked to the Iranian oil trade.
• The UAE’s minister of foreign trade said the country is discussing a currency swap line with the US.

— Former President Barack Obama to The New Yorker, on his wife Michelle’s views of pressure on him to speak about Donald Trump.

Laura McGann, editor

With help from Elana Schor, senior Washington editor, and Morgan Chalfant, Washington briefing editor

Graph Massara and Lauren Morganbesser, copy editors

Contact our reporters:

Burgess Everett, Eleanor Mueller, Shelby Talcott, Nicholas Wu, David Weigel