U.S.-Houthi truce. The United States and Yemen’s Houthi rebels agreed to cease hostilities against each other, mediator Oman said. The United States had carried out a military campaign against the Iran-backed group for almost two months. The agreement comes as Oman also helps with nuclear negotiations between Washington and Tehran. It does not apply to hostilities between the Houthis and Israel, which struck the main airport in Yemen’s capital, Sanaa, yesterday.
U.S.-China tariff talks. The U.S. Treasury secretary and trade representative will begin trade negotiations in Switzerland this week with China’s vice premier, both governments said. Treasury Secretary Scott Bessent said he intended for the talks on Saturday and Sunday to “de-escalate” trade relations. Ahead of the talks, Chinese authorities announced economic stimulus measures that include cutting interest rates and easing permissions for banks to lend money.
A major post-Brexit trade deal. After three years of negotiations, India and the United Kingdom (UK) reached a trade agreement yesterday. London called it the country’s largest and most significant deal since Brexit took effect in 2020. It is due to lower tariffs on UK goods such as medical devices, whiskey, and electrical machinery and Indian goods such as clothing, footwear, and some cars. The United Kingdom estimates the deal will boost trade by some $34 billion per year by 2040.
Carney meets Trump. Canadian Prime Minister Mark Carney and Trump both said the bilateral relationship was on a better path after their Oval Office meeting yesterday. They both expressed interest in renegotiating the U.S.-Mexico-Canada Agreement trade deal. Trump said he would still like to see Canada as part of the United States, but acknowledged it was not likely without Ottawa’s cooperation.
Sudan-UAE split. Sudan’s government said it will cut diplomatic ties with the UAE, accusing it of arming the paramilitary Rapid Support Forces (RSF). The UAE denies that allegation. RSF forces bombed Sudan’s temporary administrative capital of Port Sudan for the third consecutive day yesterday, hitting civilian sites such as a hospital and potentially hampering the distribution of humanitarian aid.
Venezuelan opposition members flee. Five opposition members who had been sheltering in the Argentine embassy in Caracas for more than a year have arrived in the United States, Rubio said yesterday. They entered the embassy after warrants were issued for their arrests during a government crackdown on dissent; Venezuelan authorities have for months blocked them from leaving the country. Rubio said a “precise operation” rescued them. Venezuela’s government did not comment.
Merz voted in. A second vote in Germany’s parliament yesterday officially elected conservative Friedrich Merz as chancellor after he lost a prior vote in a surprise outcome. The ballots were secret. Merz has pledged to increase Germany’s military spending and turn around the country’s economy. He said he plans to speak to Trump on Thursday, while French President Emmanuel Macron wrote on social media that he hopes for stronger Franco-German ties under Merz.
Russia-Ukraine prisoner swap. The two countries exchanged 205 prisoners of war each following mediation from the UAE, both sides said. The swap came as Ukrainian drone attacks on Moscow led to the closure of the city’s airports for several hours, Russian officials said. Overnight, a Russian missile and drone attack on Kyiv killed two people, Ukrainian President Volodymyr Zelenskyy said.
