Defense Secretary Mark Esper. Photo: Getty Images/Alex Wong

In a press conference Friday evening, U.S. Secretary of Defense Mark Esper announced the Pentagon will deploy U.S. forces to the Middle East in response to last Saturday's attacks against major oil processing and production sites in Saudi Arabia.

Why it matters: Both Secretary of State Mike Pompeo and the Saudis have blamed Iran for the attacks, though officials are still investigating. Iranian officials have warned the U.S. they are prepared to respond to any attack from the U.S. or Saudi Arabia, the Washington Post reports.

"The president has approved the deployment of U.S. forces which will be defensive in nature and primarily focused on air and missile defense."
— Mark Esper on Friday

The big picture via the Washington Post: "The decision to send a modest number of military personnel marks the second time in recent months that the United States has boosted its presence in the region in response to Iranian actions."

The state of play: Last weekend's attack triggered the biggest spike in crude prices in several decades. Iran denies involvement in the attacks and Foreign Minister Javad Zarif warned of "all-out war" if anyone attacks Iran.

  • The Saudi Arabian-led military coalition fighting in Yemen said Monday that Iranian weapons were used to strike major oil plants in Saudi Arabia over the weekend, Reuters reports.
  • Pompeo ramped up his rhetoric enroute to the Saudi Arabian city of Jeddah, telling reporters that Iran had committed an "act of war." He again dismissed the claim by Yemen's Houthi rebels, backed by Iran, that they were behind the airstrikes.
  • Earlier on Friday, President Trump told reporters he had issued the "highest sanctions ever imposed on a country" on Iran's central bank.

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Jeff Sessions loses Alabama Senate primary runoff

Jeff Sessions. Photo: Michael DeMocker/Getty Images

Former Attorney General Jeff Sessions has lost the Republican nomination for Senate to Tommy Tuberville in Alabama in Tuesday night’s primary runoff, AP reports.

Why it matters: Sessions had been the underdog in the race against former Auburn University head football coach Tommy Tuberville, who had the backing of President Trump. Tuberville will now face off against Sen. Doug Jones (D-Ala.) in November, who is considered to have one of the most vulnerable Democratic Senate seats in the country.

Updated 8 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 13,273,537 — Total deaths: 577,006 — Total recoveries — 7,367,106Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 3,424,304 — Total deaths: 136,432 — Total recoveries: 1,049,098 — Total tested: 41,764,557Map.
  3. Politics: Biden welcomes Trump wearing mask in public but warns "it’s not enough"
  4. Public health: Four former CDC heads say Trump's undermining of agency puts lives at risk — CDC director: U.S. could get coronavirus "under control" in 4–8 weeks if all wear masks.

Bank CEOs brace for worsening economic scenario

JPMorgan CEO Jamie Dimon. Photo: J. Lawler Duggan/For The Washington Post via Getty Images

Wells Fargo swung to its first loss since the financial crisis — while JPMorgan Chase and Citigroup reported significantly lower profits from a year earlier — as the banks set aside billions of dollars more in the second quarter for loans that may go bad.

Why it matters: The cumulative $28 billion in loan loss provisions that banks have so far announced they’re reserving serves as a signal they’re preparing for a colossal wave of loan defaults as the economy slogs through a coronavirus-driven downturn.