Washington, DC

1. Bessent on Iran
2. Massachusetts Senate headwinds
3. Graham’s climb
4. Swalwell scrutiny
5. US-Pakistan rift

The troubled USS Abraham Lincoln is heading home from the Middle East after 272 days at sea so far.

We’re thrilled to announce that Ashley Gold is joining us on Sept. 8 as Senior Tech Correspondent, focusing on Washington’s AI debate, global tech policymaking, and everything in between. She is a veteran of Axios, Politico, The Information, and the BBC — known for her news-breaking coverage of Trump administration tech moves on all fronts. Our technology coverage will take center stage at the inaugural Silicon Valley & The World annual convening in November.

Bessent teases Iran economic pressure plan

Treasury Secretary Scott Bessent plans to reveal on Monday “exactly what we’re going to do” to ratchet up economic pressure on Iran, he told CNBC this morning. “If you insist on doing business with them — either transferring money, buying their oil, or doing seaborne ship transfers — then the US Treasury … will put its full might and force toward enforcing against you,” Bessent said. He suggested that the administration’s new efforts could affect China, saying that “it would do them a big service to get with the program.” Bessent also teased a separate announcement on “an increased focus on fiscal consolidation,” which he said he’d make alongside White House budget chief Russ Vought in coming days. He also reiterated that forthcoming government bond buybacks could top $4 billion, adding that “we’ll see what the conditions are and … analyze them then.”

— Eleanor Mueller

Moulton faces obstacles ahead of Markey debate

Rep. Seth Moulton still hopes to become the latest younger Democrat to topple a much older incumbent, but he’s facing harsh headwinds ahead of next month’s Massachusetts Senate primary. His foe, Sen. Ed Markey, D-Mass., today won the endorsement of Rep. Alexandria Ocasio-Cortez, D-N.Y. — a frequent partner of the 80-year-old progressive on environmental legislation. Most recent polls also show Markey with a double-digit lead over Moulton, 47, after a May survey that appeared to show the gap narrowing. Moulton plans to press his case tonight at his final debate with Markey, and he got some heartening news recently when fellow forty-something Luke Bronin defeated long-serving septuagenarian Rep. John Larson in Connecticut’s Democratic primary. But Moulton’s more centrist image runs contrary to the Democratic base’s left-leaning mood this year, which suggests he may fall short.

Graham looks for help from Trump

Sen. Darline Graham, R-S.C., faces hurdles as she vies to replace her late brother Lindsey for a full term. Graham drew heavy scrutiny for acknowledging during this week’s debate against her runoff opponent, Rep. Ralph Norman, R-S.C., that she is “not that informed on national security” when asked about US support for Taiwan. She attempted some damage control with Fox News’ Sean Hannity last night. “I don’t speak politician,” Graham said, adding that “Taiwan is our friend” but South Carolinians are concerned about “a lot of other things.” Norman’s allies quickly held up the gaffe as a sign of her inexperience. Graham will get a boost from President Donald Trump tomorrow night at a rally in Myrtle Beach, four days before the runoff. Graham is also having to refund donations from wealthy contributors that exceeded the legal limit, NOTUS reports.

FBI steps up Swalwell scrutiny

The FBI appears to be accelerating its investigation into disgraced former Democratic Rep. Eric Swalwell. The bureau seized his electronics at San Francisco’s airport on Saturday night and executed search warrants on his DC home the following day, multiple sources confirmed, as part of a federal criminal probe related to sexual assault allegations. In April, the Californian ended his gubernatorial campaign and resigned from Congress as he faced a possible expulsion vote. News of the probe suggests he’s still attracting scrutiny from the Trump administration, which has launched investigations into other high-profile Democrats. Earlier this week, the administration released files shedding light on Swalwell’s relationship with a suspected Chinese spy, part of a push from FBI Director Kash Patel that The Washington Post reported earlier this year had raised concerns within the bureau.

— Shelby Talcott and Morgan Chalfant

US comments spark Kashmir row

Remarks by the US ambassador to India about Kashmir triggered a diplomatic row with Pakistan, the latest episode in the Trump administration’s rollercoaster relations with South Asia. Islamabad issued a “strong demarche” with the top US diplomat in Pakistan after Sergio Gor, Washington’s ambassador to New Delhi, appeared to describe Jammu and Kashmir as an “important part of India”; both countries claim the region in its entirety. The remarks threaten a recent upswing in US-Pakistan relations, with Islamabad helping mediate during the Iran conflict. It is not the first time the Trump administration has sparked frustration in the subcontinent over its use of language: India pushed for decades to have its ties to the US delinked from issues with Pakistan, but following a brief conflict last year, Washington began “hyphenating” ties again, much to New Delhi’s dismay.

— Prashant Rao

Congress

• Sens. Marsha Blackburn, R-Tenn., and Richard Blumenthal, D-Conn., have demanded an explanation from TikTok executives over a document showing that the company tested the removal of a safety feature on millions of users. — Bloomberg

Campaigns

• The nonpartisan Cook Political report shifted Senate races in Iowa and Texas toward Democrats, branding them “toss-ups.”

Economy

• Walmart’s stock fell after the retailer reported its smallest quarterly sales growth in more than six years.

National Security

• Defense Secretary Pete Hegseth’s acting Army chief plans to phase out the service’s newly formed Europe-based drone assault battalion. — WSJ

World

• Russia bombarded Kyiv with missiles and drone strikes overnight, killing at least 16 people and injuring dozens more.
• North Korea launched a barrage of missiles at the ocean a day after publicly dismissing President Trump’s decision to reduce military exercises with South Korea.
• The State Department has formally labeled an American academic arrested in China on spying charges in June as wrongfully detained.

Courts

• The captain in a deadly New York City boat accident has been arrested by ICE after the Department of Homeland Security said he was in the country illegally.

Outside the Beltway

• Texas Gov. Greg Abbott is targeting Muslim ritual washing stations in airports, claiming they are “discriminatory” and requesting a Transportation Department investigation.
• The Drug Enforcement Administration has joined the investigation into actor Hayden Panettiere’s death earlier this week. — ABC
• The Bureau of Land Management is selling thousands of protected wild horses to buyers who use a legal loophole to ship them for slaughter. — NYT

Health

• Americans with workplace health insurance coverage will spend $5,297 this year on healthcare on average, and are expected to pay significantly more next year. — WSJ

— Treasury Secretary Scott Bessent, reacting to the national debt crossing $40 trillion.

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