Trump Hits Iran With An "Economic D-Day" & The 49ers CEO Gets Arrested

Hi readers, happy Tuesday! Today, we’re covering the U.S.’s latest attempt at breaking Iran, the U.S.-Canada trade war, Kyiv’s cashflow conundrum, why power is still out in Gary, Indiana, a wildfire in Nevada, and the 49ers CEO’s prostitution scandal.

“It's the little things that smoothes people's roads the most.” Mark Twain, Adventures of Huckleberry Finn

Iran Is Excommunicado (Even More)

The U.S. seems to have given up on its military campaign against Iran, and is now looking to spark a global economic conflict instead. Yesterday, the White House unveiled its sweeping effort to cut Iran’s economy off from the rest of the world in what Treasury Secretary Scott Bessent described as an “economic D-Day — the single greatest financial offensive ever marshalled against an adversary.”

The economic attack, named “Operation Economic Outcast,” aims to cut off Iran by targeting its trading partners. According to Bessent, countries across the globe have been given an undisclosed deadline to stop their trade with Iran. “Any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system. The clock just started ticking,” he said in a statement on Monday. “Those who stand with the United States will reap the rewards of our partnership. Those who tether themselves to Tehran should expect to share in the isolation of a withering regime.” Depending on what “facilitating money laundering on behalf of Iran” really means, that could signal that the U.S. is willing to cut off any country it deems to be a partner of Iran from the U.S. dollar, essentially freezing it out of global trade as it exists today.

The problem is that President Trump is set to meet with Chinese President Xi Jinping next month, and it’s unlikely that he wants to sour his relationship with the Chinese leader or engage in a trade war with Beijing. Plus, the U.S. and China signed a one-year trade truce last October, and targeting Beijing with secondary sanctions would re-spark a trade war. But if the White House doesn’t crack down on China’s consumption of Iranian oil, it’s likely that Tehran’s economy will keep puttering along, as Beijing purchases roughly 90% of Iran’s oil exports. “Beijing is betting that Washington will be reluctant to jeopardize the current leader-level dynamic by targeting major Chinese entities before the summit, and nothing Bessent said today is likely to alter that calculation,” said one U.S.-based China analyst. 

“The announcement itself was a nothing burger,” said Ali Vaez, who contributed to the negotiations which produced Iran’s 2015 nuclear agreement. “The only thing that would make a difference at this stage is the U.S. delivering on its threats, not threatening.” An anonymous source close to the White House told Politico, “I think it has the potential to be impactful if they actually execute. However, without addressing the China angle it leaves an economic escape route for Iran.”

Trouble In The North American Neighborhood

• Late last week, it seemed like the U.S. and Canada were set to sign a trade agreement which would stave off steep U.S. sanctions on imports from its northern neighbor in exchange for Canada weakening its restrictions on some U.S. products. Unfortunately for both countries, those talks fell apart at the eleventh hour. The U.S. claims that Canada made a last-minute push for more tariffs concessions, while Canada claims that the U.S. wanted the power to decide which countries Canada would be allowed to sign trade agreements with and also wanted to change Canadian laws protecting the use of the French language.

• After the dust settled on Monday, Trump published a TruthSocial post calling Canada “among the worst Nations in the World to deal with.” He went on to threaten that “on January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50% … Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!” The threat of increased tariffs is likely aimed at bringing Canada to the table for another round of higher-stakes trade talks, though Canadian Prime Minister Mark Carney has promised to match U.S. tariffs “dollar for dollar.”

Kyiv Is Out Of Cash

• As its war with Russia grinds on, Ukraine is facing yet another crisis: the country is facing a €23 billion ($26.8 billion) defense budget shortfall this year. The budget hole means that Kyiv is now scrambling to keep its military in working order, as it now lacks the money to keep soldiers paid and purchase arms and supplies.

• The funding issue started earlier this year, when Hungary temporarily blocked the authorization of a €90 billion E.U. loan to Kyiv. In order to keep its military running, Ukraine was forced to spend some of the money set aside for the second half of 2026, and now that €23 billion chicken is coming home to roost.

• “At the beginning of the year, decisions were made at the ministry to use in the first half of the year funds that were intended to be disbursed in the second half,” Ukrainian Prime Minister Volodymyr Zelenskyy told reporters on Saturday. The European Commission moved to help Kyiv out on Monday by authorizing a small loan of €6.1 billion, but that still leaves the country with a €17 billion hole to fill. Much of that money is slated for the procurement of supplies needed as early as January 2027.

Additional World News

• Why Maximum Pressure on Iran Will Fail (Foreign Affairs)

• Tesla and others begin record 4.3 million vehicle recall in China (Reuters)

• After 6 months of war, why aren't oil prices even higher? (Responsible Statecraft)

• The world inches toward catastrophic climate events: 'Bigger shocks are on the way' (AP) 

• US removes Syria from terrorism sponsor list, lifting major investment obstacle (Reuters)

• Japan enlists 1,800 people to drag a 360-tonne castle keep using ropes and rollers (Guardian) 

A Struggle For Power

• Gary, Indiana has been without power for two weeks now. The former industrial center was struck by a powerful storm on August 11, which brought floods, tornadoes, and wind gusts as fast as 100 mph. “I've never seen a storm like that in my entire life. Never, never,” said one resident. “It was like a sheer wall of wind.” 

• The storm killed at least seven people and displaced over 1,000 others, and also tore down trees and power lines across the area, leaving most of the town with no electricity. Since then, power has been restored for 345,000 people affected by the weather, but almost 10,000 are still stuck living with no electricity at time of writing. That means they have no way to keep the lights on, cook food, heat water, or even keep groceries from spoiling. Elderly people living in the area have been hit even harder as their oxygen tanks and electric chairlifts need power to operate. 

• “We’re at day 12, and 12 days is too long for families to be without power,” said Gary’s mayor in a statement on Sunday. Locals have already begun organizing a class-action lawsuit against the Northern Indiana Public Service Company (NIPSCO) – the local power company – alleging that the firm isn’t doing enough to speed up recovery efforts and that it also neglected to properly trim the trees that brought down power lines during the storm.

Reno Is In Real Danger

• A fast-moving wildfire is closing on Reno, Nevada, endangering tens of thousands of people living in the area. The blaze – which authorities have named the Hawk fire because it was first reported on the Hawk Meadow Trail – started early on Saturday before quickly consuming the surrounding dry grasslands.

• Since then, more than 23,000 people have been ordered to leave their homes due to imminent danger from the blaze, and 40,000 others are under a “get-set” warning, meaning they could be ordered to leave if the fire continues to spread. Official reports from local authorities show that the blaze has destroyed at least 32 homes and damaged six others, though those numbers are likely to increase in the near future. By Monday afternoon, the fire had eaten up more than 15,000 acres near Reno despite the best efforts of more than 900 firefighting personnel. At time of writing, the fire is roughly 27% contained, meaning there’s a long way to go before the “biggest little city in the world” is safe from the blaze.

Additional USA News

• Wife of active-duty US Army sergeant is deported (Reuters)

• What You Should Know About College Admissions Changes (NYT, $)

• The Supreme Court just revived Trump’s attempt to sabotage the 2026 election (Vox) 

• Alfalfa sprouts linked to food-poisoning outbreak in 15 states, US officials say (Guardian)

• Mamdani’s $4 Billion, 10-Year, Middle-of-the-Road Brooklyn-Queens Expressway Fix (Curbed) 

• Paramount CEO David Ellison is at the final hurdle before buying WBD. So far, he can't clear it (CNBC)

Bang Bang Niner Gang

• The San Francisco 49ers have appeared in eight Super Bowls over the franchise’s history. They’ve won five of those (in 1982, 1985, 1989, 1990, and 1995) and lost three (2023, 2019, and 2012). All three of those losses occurred while the historic franchise was under the leadership of Jed York, who became the team’s CEO in 2008 and its majority owner in 2024. 

• It seems that getting so close to (but so far from) winning the biggest trophy in American football has taken its toll on York – on Sunday morning, the CEO was arrested in a trailer park in East Palestine, Ohio on suspicion of engaging in prostitution. According to court documents obtained by the New York Post, he had allegedly” arranged to have sexual activity with [a] female in exchange for $140” via an online ad. 

• On Monday, the multimillionaire pleaded no contest to two criminal charges: disorderly conduct (which was downgraded from a prostitution charge) and possessing criminal tools (it’s not clear what those “tools” were). A no contest plea doesn’t mean York is pleading guilty to the charges – instead, he’s accepting the punishment with no admission of guilt. The Niners CEO had already served the two days in jail that are part of his punishment, and he has also paid the $1,150 fine. The worse part of it all? York was arrested with $160 in cash in his pocket, meaning he was probably planning on tipping just $20. 

Additional Reads

• Robotaxis are real now — so is the pushback (Verge)

• The Pay-to-Play Model Has Broken Youth Sports (NYMag)

• These common meds could be causing you to overheat (BBC)  

• Cage-free eggs are worse for the climate. Does it matter? (Vox)

• They Dedicated Their Lives to Teaching. Then the Deepfakes Started (Wired, $)

• ‘We are hitting a different chapter’: OpenAI leader warns of threat of ‘persistent’ AI cyber-attacks (Guardian)

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Peanut For Your Thoughts

Apparently this whole prostitution thing also revealed that the 49ers CEO is recently divorced.

Editor + Writer: Marcus Gee-Lim

Designer: Joe Stella