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The White House accused Chinese entities of running large-scale operations to steal U.S. artificial intelligence systems, while the Justice Department's watchdog will investigate whether the Trump administration properly handled the release of Epstein files under a congressional transparency mandate.

These developments come as the European Union approved new Russia sanctions, and as European leaders gathered in Cyprus to explore a mutual defense framework that could function independently of NATO if Washington withdraws from the alliance.

Read more below ⤵️

1️⃣ 🇺🇸🇨🇳 Trump administration accuses China of AI theft campaign: The White House accused Chinese entities of conducting large-scale operations to steal U.S. artificial intelligence systems through proxy accounts and jailbreaking techniques. Advisor Michael Kratsios said Washington will share intelligence with AI companies and explore accountability measures against foreign actors involved in the campaigns.

2️⃣ 🇺🇸 DOJ watchdog probes Epstein files release: The Justice Department's internal watchdog will investigate whether the government complied with the Epstein Files Transparency Act mandating release of unclassified records within 30 days. Lawmakers accused the Trump administration of using heavy redactions to shield powerful individuals, while survivors criticized disclosure of their personal information.

3️⃣ 🇪🇺🇷🇺 EU approves Russia sanctions but delays oil shipping ban: The European Union approved fresh sanctions targeting Russia's shadow fleet and cryptocurrency platforms after Hungary and Slovakia lifted vetoes, but postponed a full ban on maritime services for Russian oil tankers pending G7 agreement. Greece and Malta opposed the measure over concerns it would harm their economies and empower Moscow's workarounds, while Washington moved in the opposite direction by granting sanctions relief to Russian oil.

4️⃣ 🇪🇺🇺🇦 EU leaders pursue NATO alternative amid Ukraine push: European leaders gathered in Cyprus to begin developing a mutual assistance framework under Article 42.7 that could replace NATO's Article 5 if Washington withdraws from the alliance. The summit will address Ukraine's membership bid, the Strait of Hormuz closure, and the energy crisis, with Zelenskyy attending to press for accelerated EU accession.

5️⃣ 🇹🇷🇺🇦🇷🇺 Turkiye works to restart Russia-Ukraine talks: Turkish President Erdogan told NATO's secretary-general that Ankara is attempting to revive negotiations and arrange a leaders' meeting between Russia and Ukraine. Kyiv confirmed requesting Turkiye host the talks.

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🇮🇷 Iran War Update

1️⃣ 🇮🇷🇪🇺 Iran recruits European teens for arson campaign: Iranian intelligence services are enlisting teenagers through criminal networks to execute arson attacks targeting Jewish sites and Western facilities across Europe and the UK, according to reports characterizing the effort as hybrid warfare.

Diplomatic

2️⃣ 🇺🇸🇮🇷 Trump warns Iran "clock is ticking": President Trump stated the U.S. faces no pressure to end the war with Iran but warned Tehran that "the clock is ticking," while ordering the Navy to destroy mine-laying vessels and triple mine-clearing operations in the Strait of Hormuz. U.S. forces separately boarded a sanctioned tanker carrying Iranian oil in the Indian Ocean as part of the blockade on Iranian ports.

3️⃣ 🇮🇷 Iran rejects Trump's claims of leadership divisions: Iranian President Masoud Pezeshkian, Foreign Minister Abbas Araghchi, and Parliament Speaker Mohammad Bagher Ghalibaf issued identical statements dismissing U.S. assertions of internal rifts, declaring "iron unity" under Supreme Leader Mojtaba Khamenei. The coordinated response follows Trump's repeated claims of "crazy" infighting between moderates and hardliners in Tehran.

4️⃣ 🇺🇸🇱🇧🇮🇱 Trump extends Israel-Lebanon ceasefire three weeks: President Trump announced a three-week extension of the Israel-Lebanon ceasefire, pledging U.S. support to help Lebanon defend against Hezbollah. Trump indicated Israeli and Lebanese leaders could meet at the White House in the near future.

Oil/Economy

5️⃣ 🇺🇸 Dow CEO warns 275-day Hormuz recovery timeline: Dow Chemical's CEO projected clearing the Strait of Hormuz logistics backlog will require approximately 275 days even if the waterway reopens immediately, citing the need to clear mines, return empty vessels, and restore normal shipping operations across multiple quarters.

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1️⃣ 🇷🇺🇺🇦 Putin offers Moscow meeting with conditions: Russian President Putin said he is ready to meet Ukrainian President Zelensky, but only in Moscow and solely to finalize a prepared agreement, according to Kremlin spokesperson Peskov. Zelensky ruled out Moscow as a venue and said he is prepared to meet anywhere except Russia and Belarus.

2️⃣ 🇺🇸🇦🇪 Gulf and Asian allies request U.S. currency swap lines: Treasury Secretary Scott Bessent said the UAE and other Gulf and Asian countries have requested currency swap lines to manage economic fallout from the U.S.-Israel war on Iran. Democrats questioned whether the Trump family's financial ties with the UAE, including a $500 million investment in their crypto venture, are influencing the decision, though Bessent denied any linkage.

3️⃣ 🇪🇺🇺🇦 Druzhba pipeline restart unlocks €90B Ukraine loan: Russian oil resumed flowing through Ukraine's section of the Druzhba pipeline following a months-long halt from drone damage, prompting Hungary to lift its veto on a €90 billion EU loan for Kyiv. EU ambassadors approved the loan shortly after the restart, with formal approval expected by Thursday afternoon.

4️⃣ 🇺🇸 NATO shifts from U.S. aircraft for reconnaissance fleet: NATO will replace its aging reconnaissance aircraft with up to 12 Bombardier jets equipped with Sweden's Saab GlobalEye system instead of relying on American-made planes. The decision follows Washington's withdrawal from the Boeing program last year, with Germany expected to cover the largest share of costs.

5️⃣ 🇺🇦🇪🇺 Zelenskyy rejects symbolic EU membership for Ukraine: Ukrainian President Zelenskyy said his country needs full EU membership rather than any partial or symbolic participation, arguing Ukraine is defending European values with real casualties, not symbolically. European Council President Costa said opening the first negotiation cluster is the next step after unblocking the €90 billion loan and Russia sanctions, though several EU leaders cautioned against shortcuts in the accession process.

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