Axios

Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer held a high-level video call with China's vice premier to prepare for the September visit of its president, Xi Jinping, Axios has learned.

Why it matters: The call sets the stage for President Trump and Xi to sign future trade deals between the U.S. and China. But there are tensions.

U.S. and state officials believe that Iranian hackers were probably behind this week's cyberattack targeting municipal water systems in Minnesota, the New York Times reports.

The big picture: The coordinated campaign underscored a growing — and concerning — trend of cyberattacks targeting state and local agencies and services.

• Such an "act of aggression" from the Iranians would come at a tense point in the conflict with the U.S., the Times writes.

Vice President Vance and Israeli Prime Minister Benjamin Netanyahu held a "direct" conversation about their differences in a one-on-one meeting in Washington on Tuesday evening, Israeli and U.S. officials said.

Why it matters: Vance has been the most Netanyahu-skeptical voice in Trump's inner circle since the beginning of the war. As the war dragged on, he became increasingly critical of the Israeli prime minister.

The U.S. economy grew at a 1.5% annualized rate in the second quarter, the government said on Thursday, capturing a three-month stretch shaped by the Middle East conflict and a surge in energy prices.

Why it matters: Consumer spending and business investment fueled by AI spending remained the economy's standout growth engines in the spring.

The Iran war has revealed China's enormous power over global oil prices, thanks to its position as the world's largest buyer.

Why it matters: China's reaction to the oil shock — by substantially withdrawing from buying on world markets — helped prevent the worst of the price spikes that experts thought would follow from the effective closure of the Strait of Hormuz.

The U.S. military conducted "a heavy wave" of airstrikes in Iran on Wednesday evening, U.S. Central Command said in a statement.

Why it matters: These are the first U.S. strikes in Iran since President Trump paused the bombing campaign Friday to give negotiations another chance.

President Trump met Wednesday with Saudi Defense Minister Prince Khalid bin Salman, a U.S. official and another source with knowledge of the meeting told Axios.

• The meeting was added to the Saudi minister's itinerary after he met with Vice President Vance and told him that Saudi Arabia favors de-escalation with Iran — despite this week's joint U.S.-Saudi strike on pro-Iranian militias in Iraq, a source familiar with the matter said.

Why it matters: The source said the purpose of the meetings was to deliver a message from Crown Prince Mohammed bin Salman (MBS) about the war with Iran and the situation in the region.

Pope Leo XIV plans to visit the U.S. "soon," the Chicago-born pontiff said in an interview with NBC News that aired Wednesday evening.

The big picture: The first U.S.-born pope told NBC's Tom Llamas during the interview that he loves "so many things" about America as he revealed he was just looking at his calendar for the next couple of years and confirmed people will see him in the U.S. "soon."

Israeli Prime Minister Benjamin Netanyahu expressed skepticism during his meeting with President Trump about the chance of a deal with Iran and discussed increasing economic pressure on Iran "through kinetic and non-kinetic means," a senior Israeli official said in a briefing with reporters.

Why it matters: Tuesday's meeting was the first between Netanyahu and Trump since the start of the war on Feb. 28. It came as Trump is still trying to reach a deal with Iran but also considering a return to major combat operations.

FIFA, global soccer's governing body and World Cup organizer, is seeking to raise up to $4.2 billion for a new commercial subsidiary at a $20 billion valuation led by Joshua Kushner's Thrive Eternal.

Why it matters: This would be the first time FIFA has ever sought outside investment.

Investors are rethinking their fondness for AI picks and shovels: the chipmakers, particularly memory makers, that make up the backbone of the new tech buildout.

Why it matters: The chip stock frenzy pushed the U.S. market to all-time highs earlier this year.

Ukrainian President Volodymyr Zelensky told Axios in an interview Tuesday that he asked President Trump for an emergency "winter package" of Patriot air defense interceptors to help thwart Russian attacks on Ukrainian energy infrastructure.

Why it matters: Ukraine's stockpiles of the interceptors have been almost depleted, and without them the country can't defend itself against ballistic missiles. It was the reason Ukraine couldn't stop recent Russian attacks on Kyiv.

Iran launched multiple ballistic missiles toward a U.S. military base in Jordan on Tuesday in what U.S. Central Command described as an "attempted surprise attack."

• All of the missiles were intercepted, CENTCOM said in a statement.