Axios

Trump announced Friday afternoon on Twitter that he was replacing Reince Priebus with John Kelly, who has been serving as Trump's Homeland Security Secretary. But Priebus told CNN's Wolf Blitzer this evening that "ultimately, I resigned yesterday," he denied Trump asked him to resign and said Trump involved him deciding who to pick as a replacement.

• He wouldn't answer questions about whether he's the WH leaker.
• His bottom line: He's "on team Trump." He stressed several times that he thinks bringing in a fresh face is a good thing for the White House and that he still wants to help Trump achieve his agenda for the American people. He also praised Steve Brannon's role in the White House.
• His biggest letdown: Not getting healthcare passed. "Obviously the Republicans have to try harder."

In a raucous, often dark speech to law enforcement officials on Long Island about the government's response to MS-13, President Trump obliquely addressed the palace intrigue swirling around his White House staff. "John Kelly is one of our great stars," he said while singling out the head of Homeland Security, who is rumored to replace Reince Priebus as chief of staff.

Some of Trump's darker rhetoric:

• To "every gang member and criminal alien" — "We will find you. We will arrest you. We will jail you. And we will deport you."
• On MS-13: "They have turned peaceful parks and beautiful, quiet neighborhoods into blood-stained killing fields…We are liberating our towns. I never thought I'd be standing up here talking about liberating towns on Long Island, where I grew up."
• Addressing police brutality: "Please don't be too nice. Like, when you put somebody in a car and you're protecting their head…I said, 'You can take the hand away, okay?'"

USA Today front page, "Mueller's investigators could delve deeply into president's million-dollar real estate transactions," by Nick Penzenstadler and Steve Reilly:

• "Since Election Day, President Trump's businesses have sold at least 30 luxury condos and oceanfront lots for about $33 million. That includes millions of dollars in properties to secretive shell companies."
• "Federal investigators are expected to delve into records revealing some of the President's most closely guarded secrets, including how much money he makes, who he does business with and how reliant he is on wealthy, politically-connected foreigners."
• Why it matters: "Mueller's sweeping mandate means his investigators can get, or may already have, The Trump Organization's phone records, e-mail and contracts."

Russia's Foreign Ministry announced Friday that they plan to seize two U.S. properties and order the State Department to reduce its American embassy staff in Russia in retaliation to the financial sanctions bill Congress approved last night, per The Washington Post.

The Foreign Ministry said in a statement that the American Embassy in Moscow and consulates in St. Petersburg, Yekaterinburg and Vladivostok should reduce their staff to 455, reportedly the same number of Russian diplomatic employees in the U.S. The Ministry also announced its plans to seize a Russian warehouse and dacha complex currently used by the U.S. Embassy.

Why it matters: The U.S. sanctions bill is still awaiting signature from President Trump, but he's likely to sign it given its popularity among Congress and the likelihood that lawmakers will have the votes to override a potential veto.

Fox News Channel's Tucker Carlson Tonight will air an exclusive interview with beleaguered Attorney General Jeff Sessions, who checked in from a gang violence discussion in El Salvador to discuss his place in the White House's palace intrigue.

The key quote on Trump's criticism: "It's kind of hurtful but the President of the United States is a strong leader… he wants us all to do our job and that's what I intend to do."

Why it matters: At least for the time being, Sessions is indicating that he's not planning on going anywhere — meaning Trump will have to fire him in order to oust him. Should Trump decide to go down that path, he'll open himself up to actual, sustained criticism from Republican lawmakers, who have begun to circle their wagons around Sessions.

Press Secretary Sarah Sanders faced a series of questions about the reported tense relationship between Trump's new White House Communications Director, Anthony Scaramucci, and Chief of Staff Reince Priebus during Thursday's WH briefing. Her response? "I think the President as always enjoys healthy competition and conversation."

She later dodged questions on whether Trump still has confidence in Priebus, given the president's reported disappointment with his inaction, and instead stated that the Trump WH is one that "has a lot of different perspectives because the president hires the very best people." And as for Scaramucci's suggestion on firing those responsible for the leaks coming out of the White House? "I'm not going to comment on Anthony's suggestion. I'll let him speak for himself," she said.

Sen. Lindsey Graham blasted President Trump's most recent attacks to CNN reporters this morning.

• On attacking AG Sessions: "I'm 100% behind Jeff Sessions... There will be no confirmation hearing for a new Attorney General in 2017. If Sessions is fired there will be holy hell to pay.
• On attacking FBI Director Mueller: ""Any effort to go after Mueller could be the beginning of the end of the Trump presidency., unless Mueller did anything wrong. Right now, I have no reason to believe Mueller is compromised."

Iranian state television announced Thursday that the country successfully launched a rocket carrying a satellite into space, per AP. The launch reportedly involved a "Simorgh" rocket (which means "phoenix" in Farsi) that is able to hold a 550 pound satellite.

Why it matters: Iran has been developing its satellite program for years, and denies claims that they're using the space program as a backdoor for long-range missiles. Despite their assurances, the U.S. and its allies worry the same technology could be used for more advanced weapons development.

In May, following criticism from President Trump for its ballistic missile tests, Iranian President Hassan Rouhani said that his country would not wait for permission from the U.S. to continue its work on its missile program.

President Donald Trump said he expects in September to declare Iran not compliant with the 2015 nuclear agreement hammered out with the U.S. and five other leading countries. If he pushes forward with the expectation, made in remarks to The Wall Street Journal, he could trigger a new escalation in already-high tension between Iran and the U.S.

But the actual impact of a U.S. withdrawal on Iran or its nuclear program will depend on how Tehran and Europe respond. European powers seem unlikely to follow the U.S. in lockstep, and there is much financial reason — business deals between European companies and Iran — to keep the deal in place, at least as far as they are concerned.

Why it's important: Trump's beef and that of other deal critics is that Iran has continued its ballistic missile program, along with its aggressive regional politics. None of that is likely to halt or even slow because the U.S. withdraws from the deal. But it could lead Iran to bust out of the terms of the agreement and resume its suspected development of a nuclear weapon.