US strikes again, Iran retaliates; Knicks pull off historic Finals comeback

Peace talks may be happening, but so are the airstrikes

The U.S. hits Iran again, and the conflict takes another turn. Plus, inflation is back above 4%, and President Trump says that's actually good news for Americans

And New York is still buzzing this morning. The Knicks staged the biggest comeback in NBA Finals history

The stories that matter, clear and credible, from across the country to around the world

These are your unbiased updates from Straight Arrow. Good morning, I'm Craig DeGrelli

We begin in the Middle East, where the United States and Iran traded another round of strikes overnight

pushing the two sides closer to a wider conflict, just days after President Trump said a peace deal could be within reach

The U.S. military fired Tomahawk cruise missiles and carried out a second night of attacks inside Iran

targeting surveillance sites, communication systems, and air defense positions. Explosions were reported across several parts of Iran

including near the Strait of Hormuz, the strategic waterway at the center of the conflict

Iran responded by claiming it targeted U.S. military assets across the region

including in Bahrain and Kuwait. Bahrain says its air defenses intercepted multiple drones overnight

And Jordan says it shot down missiles headed toward an area that houses American troops

The attacks also briefly shut down Kuwaiti airspace, forcing commercial flights to reroute across the region

Defense Secretary Pete Hegseth, speaking in Cuba Wednesday, made clear the airstrikes are meant to increase pressure on Tehran, not ease it

President Trump, he's willing to go back and fight as necessary, but has given Iran an open hand to make this deal

It's right there. They have that chance. They're choosing to play games. They're choosing to tap

If they want to tap, then the president will turn to the War Department

If we need to negotiate with bombs, we'll negotiate with bombs. And we're very good at it

Nobody better in the world. And again, so we're in lockstep with the White House, in lockstep with the negotiating team

to make sure we set the conditions. And the targets tonight are meant to do that

The remarks came after President Trump accused Iran of taking too long to reach a deal

and warned Tehran it would pay the price if negotiations continue to stall. Iran says it's

still open to talks, but continues to refuse U.S. demands that it give up its stockpile of enriched

uranium and now says the U attacks are a flagrant violation of international law that has rendered the ceasefire meaningless Now to a growing fight over national security surveillance and President Trump choice to temporarily lead the nation intelligence agencies

With a key spying program set to expire tomorrow, Trump is doubling down on his decision to install federal housing chief Bill Pulte as acting director of national intelligence

The president pushed back Wednesday against critics in both parties, accusing Democrats of holding national security hostage and confirming that Pulte will take over the office next week while the search continues for a permanent nominee

In a post on Truth Social, Trump also said he wants Pulte to begin downsizing the office of the director of national intelligence and return staff to their home agencies

The controversy is now threatening the future of Section 702 of FISA, a surveillance program that allows U.S. intelligence agencies to collect communications from foreign targets overseas

Congressional leaders from both parties have warned that if the law expires Friday, investigators could lose access to a tool they say has helped disrupt terrorist plots and track foreign threats

It's important that that program does not go dark on Friday when it expires because just understand, FISA has been used time and time again to stop terrorist attacks here on our homeland, on American soil, to prevent terrorist attacks

And that's a critical, critical tool that we need to renew. Democrats say the problem isn't FISA, it's Pulte

House intelligence Democrats are demanding a full security review of Pulte, writing in a letter to Trump Wednesday, quote

never has a person with so little experience or understanding had at their fingertips the sources and methods of the intelligence community

And then Donald Trump, as he often does, tosses a hand grenade into those sensitive negotiations

by elevating Bill Pulte as a director of national intelligence. someone who's a political hack, a malignant clown, and he's woefully unqualified to serve in any

position in the federal government. Republican leaders are now trying to pass a short-term

extension to keep the program alive, while Trump chooses a permanent intelligence chief

One of the world's most famous billionaires spent hours on Capitol Hill Wednesday

answering questions about his past ties to Jeffrey Epstein. Microsoft co Bill Gates sat for a closed interview with the House Oversight Committee as lawmakers continued digging into the government handling of the Epstein investigation and the powerful people who associated with the

convicted sex offender. Before the hearing, Gates released a statement acknowledging his relations

with Epstein and the fallout that followed. Quote, in the work I do, reputation is the basis for

developing partnerships that save lives. Meeting with Epstein was a grave error in judgment and put

this work at risk. Gates says he met with Epstein several times before cutting ties in 2014. He also

revealed that Epstein learned about his extramarital affairs and later tried to use that information

against Gates and pull him back into his web. Quote, based on what has been released in the files

Epstein was working to use information about my infidelities, in addition to many lies that he

layered on top to pressure me to re-engage with him. Gates told lawmakers he never witnessed

criminal conduct by Epstein and said he never visited Epstein's private ranch or Florida home

The hearing is part of a broader congressional investigation into Epstein and his associates

For the first time in more than three years, inflation is back above 4 percent

and President Trump insists he's not worried. New numbers from the Labor Department show

consumer prices rose 4.2% in May, with higher energy costs continuing to push up the cost of

living. The report comes as the war with Iran continues to disrupt global energy markets and

keep pressure on oil prices. When asked about the inflation spike Wednesday, the president

offered a surprising response. Are you concerned, Mr. President, about the latest inflation number

which came out this morning? Could that be a big win? No, I love it. The numbers were great

You know what I really love? I love the inflation. You know why? Because as soon as this war is over, you know, I can say it now

Something you didn't know. Do you know we've been taking out millions of barrels of oil

Nobody knows it. You know who doesn't know about it? Iran until right now

While gas prices have eased somewhat over the past month, economists say higher energy costs are still filtering through the economy

That means Americans could continue to feel the impact at the gas pump, the grocery store, and on monthly utility bills

The inflation report also complicates the outlook for interest rates, with some investors now betting the Federal Reserve could raise borrowing costs later this year if price pressures persist

The city that never sleeps is still wide awake this morning. The New York Knicks are one win away from an NBA title after pulling off the biggest comeback in finals history The Knicks looked dead in the water early They trailed the San Antonio Spurs 76 at halftime of the critical game four but New York kept coming

The Knicks erased the deficit over the final quarter and a half, and with the game on the line

Jalen Brunson drove the lane looking for the winner. His shot rattled off the rim, but O.G

Ananobi was right there for the tip-in with two seconds left. The Knicks completed the stunning

rally and beat the Spurs 107 to 106. The scene at Madison Square Garden was exactly what you'd

expect. Fans erupted inside the arena and thousands flooded the streets outside to celebrate a win

that will go down in Knicks history. Now New York heads to San Antonio with a chance to clinch its

first NBA championship since 1973. Finally this morning, Washington may be deeply divided

but for one night a year, Republicans and Democrats settle their differences the old-fashioned way

on the baseball field. The annual congressional baseball game brought lawmakers together Wednesday

night to raise money for charity. The Republicans did more than show up. They rolled to an 11-2 win

over their Democratic rivals, extending their winning streak to six straight years

Florida Congressman Greg Steube threw a complete game for the GOP, while Texas Congressman Jake Elsey and Utah Congressman Blake Moore helped lead the offense

Thousands of staffers, family members, and fans packed National Park for the annual tradition

And win or lose, the biggest winner may have been the charities. Listen to this. Organizers say this year's game raised more than $3 million for groups including the Boys and Girls Club of Greater Washington

and the U.S. Capitol Police Memorial Fund. All right, before we head out, here's what we're tracking today

The latest weekly jobless claims report is out this morning, offering another snapshot of the labor market as the Fed prepares for its first meeting under Chairman Kevin Warsh

At 11, First Lady Melania Trump launches Fostering the Future accounts, a new financial program aimed at helping young people aging out of foster care

At noon, Freddie Mac releases its weekly mortgage rate report, another closely watched indicator for homebuyers and the housing market

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Those of your unbiased updates for this Thursday, we'll see you back here tomorrow, Friday

We love that. For all of us here at Straight Arrow, I'm Craig DeGrelli. Have a great day