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FIRST ON FOX: A new report is raising concerns about Turkey’s role in the Middle East, arguing that under President Recep Tayyip Erdoğan, the country has moved away from its traditional Western alignment and toward deeper engagement with Islamist movements, including the Muslim Brotherhood.

The Foundation for Defense of Democracies report, led by senior fellow Sinan Ciddi and titled “Islamist Domination of Turkey: A Forward Base for Muslim Brotherhood-Aligned Jihadism,” argues that Turkey has ties to Hamas — the U.S.-designated terrorist group responsible for the Oct. 7 massacre — as well as to the Muslim Brotherhood — an Islamist movement whose affiliates have recently been designated as terrorist organizations by the United States — placing Turkey’s policies under renewed scrutiny as it prepares to host a NATO summit.

Ciddi told Fox News Digital the shift reflects a broader transformation in how Turkey defines threats.

“What we have is Turkey has completely rewritten the rules of how you interpret what a jihadist terrorist entity may be,” Ciddi said. “Erdoğan has reinvented what is interpreted as a terrorist entity … groups such as Hamas or al-Nusra fall into line with his pan-Islamist view of the world.”

EXPERT WARNS RADICAL ISLAMIST NETWORKS COULD SHIFT WEST AFTER IRAN REGIME SHAKEUP

Hamas presence draws scrutiny

A central focus of the report is Turkey’s relationship with Hamas, which the United States designates as a terrorist organization, and yet Hamas expanded its presence in Turkey after 2011, establishing offices and networks inside the country.

“From 2011 onward … Hamas used this opportunity inside of Turkey with a friendly government to establish offices, engage in recruitment (and) fundraising,” Ciddi said.

U.S. authorities have taken action against some of those networks. The Treasury Department has designated Hamas-linked individuals and entities operating in Turkey, a point Ciddi said underscores longstanding concerns.

“The United States Treasury has been tracking and designating Hamas-affiliated NGOs and individuals inside of Turkey,” he said.

The report also alleges that some Hamas operatives have been able to travel using Turkish-issued documents and that senior figures have been publicly received by Erdoğan.

Beyond Hamas, the report describes Turkey as a hub for Muslim Brotherhood figures from across the region, including Egypt and Yemen, many of whom relocated there following crackdowns in their home countries.

Across parts of the Arab world, the Muslim Brotherhood has been banned or restricted for years. 

Egypt outlawed the movement in 2013, accusing it of inciting unrest and undermining state institutions. Saudi Arabia and the United Arab Emirates later designated it a terrorist organization, describing it as a threat to national stability, while Bahrain adopted a similar stance. 

Jordan dissolved its local chapter this year following arrests authorities said were linked to illicit weapons activity.

Some European countries also have taken steps targeting networks linked to the movement. 

Austria, for example, has pursued legal action against individuals and organizations it says are connected to Brotherhood-linked activity as part of its counter-extremism policies.

Officials in these countries have argued that the Brotherhood operates through a mix of religious outreach, political activism, charitable organizations and media platforms to influence public opinion and challenge state authority.

ISRAEL SHUTS DOOR ON TURKEY IN GAZA AS TRUMP PRAISES ERDOGAN, PLAYS DOWN CLASH

Syria policy and sanctions questions

The report also examines Turkey’s role in Syria, where the country backed opposition forces during the civil war, supporting a range of armed factions, including groups that later formed the Syrian National Army.

“The Syrian National Army … was a hodgepodge collection of militias that Turkey directly armed, paid and organized,” he said.

The report links Turkish support to groups such as al-Nusra and Hayat Tahrir al-Sham, raising questions among analysts about whether such ties could expose Turkish officials to potential sanctions under U.S. law.

TRUMP FACES MIDDLE EAST TEST AS NETANYAHU BALKS AT ERDOGAN’S GAZA TROOP HOPES

A balancing act with Washington

Despite these concerns, other analysts say Turkey’s relationship with the United States continues to act as a constraint on its behavior, while the relationship between Donald Trump and Turkish President Recep Tayyip Erdoğan has been characterized by renewed trust, with Trump praising Erdoğan’s role in Gaza diplomacy.

As Trump celebrated the Gaza ceasefire agreement in Sharm el-Sheikh, Egypt in October 2025, he singled out one leader for extraordinary praise — Erdoğan, whose leadership he credited for helping deliver the Gaza ceasefire.

“A guy who’s been a friend of mine for a long time. I don’t know why I like the tough people better than the soft, easy ones,” Trump said about Erdoğan at the Sharm el-Sheikh summit in October 2025. “This gentleman from a place called Turkey is one of the most powerful in the world … He’s a tough cookie — but he’s my friend.”

Hişyar Özsoy, a Turkish politician and academic, described the relationship between Erdoğan and Trump as “transactional,” noting Washington often relies on Turkey for regional coordination.

In a policy webinar hosted by the Jerusalem Institute for Strategy and Security, Turkish academic Hüseyin Bağcı emphasized that Ankara remains closely tied to Washington.

“The Turkish state is not interested in fighting with Israel because the Turkish government has very good relations with (the) United States of America,” he said. “You cannot be good with America and then be in conflict with Israel.”

Bağcı also suggested Turkey has at times limited Islamist actors domestically.

“Today do you hear anything about” the Muslim Brotherhood, he said. “No … because the president said stop.” 

NATO ally under pressure

Turkey, a NATO member since 1952, remains a key partner for the United States, providing logistical access, military capabilities and diplomatic reach.

But Ciddi argued Turkey’s current trajectory increasingly diverges from alliance priorities.

“There is an established track record … where Turkey significantly undermines the transatlantic alliance’s core security concerns,” he said.

He pointed to U.S. sanctions on Turkish entities accused of supplying dual-use goods to Russia, as well as Ankara’s broader strategy of maintaining ties with competing powers.

Iran and regional positioning

As far as Turkey’s positioning itself amid tensions with Iran, Ciddi said Turkey is likely to favor a weakened Iranian regime rather than a complete collapse that could produce a more pro-Western government. 

“A weakened Iranian regime is Erdoğan’s safest bet,” he said.

Bağcı offered a similar assessment of the rivalry.

“Iran is not an enemy of Turkey, but not necessarily its best friend. Turkey and Iran are two regional competitors,” he said.

Looking ahead

The report recommends potential U.S. policy responses, including sanctions and increased scrutiny of Turkey’s financial system, steps that could reshape relations between Washington and Ankara.

Fox News Digital reached out multiple times to the Turkish government and to the State Department for comment but did not receive a response in time for publication.

For 47 days, Democrats have refused to fund Immigration and Customs Enforcement (ICE) and parts of U.S. Customs and Border Protection (CBP) without sweeping reforms. President Donald Trump is now considering a move that could make both agencies shutdown-proof for the rest of his second term. 

The president is asking top Republicans to draft a budget reconciliation package funding ICE and CBP that could pass both chambers without any Democratic support.

“We are going to work as fast, and as focused, as possible to replenish funding for our Border and ICE Agents, and the Radical Left Democrats won’t be able to stop us,” Trump wrote on Truth Social. “We will not allow them to hurt the families of these Great Patriots by defunding them.”

The president added that he wants the legislation on his desk by June 1.

HOUSE CONSERVATIVES ERUPT OVER SENATE GOP, WHITE HOUSE DEAL AMID SAVE ACT FIGHT

The budget reconciliation push comes as Republican efforts to fund ICE and the Border Patrol through regular order have stalled in the Senate due to widespread opposition from Democrats.

With the Senate’s 60-vote legislative threshold in place, Senate Minority Leader Chuck Schumer, D-N.Y., effectively has veto power over DHS appropriations if he keeps his caucus in line.

The budget reconciliation process would allow Republicans to steer around Democratic opposition and pass a DHS funding bill at a simple majority threshold. Republicans narrowly passed Trump’s One Big Beautiful Bill Act using reconciliation in June 2025 after months of intraparty squabbling.

House Speaker Mike Johnson, R-La., and Senate Majority Leader John Thune, R-S.D., quickly endorsed the proposal in a joint statement released Wednesday.

The GOP leaders said DHS would be funded along “two parallel tracks,” meaning that ICE and the Border Patrol would receive an influx of money through reconciliation while the rest of DHS would be funded through the normal appropriations process.

“We cannot allow Democrats to any longer put the safety of the American public at risk through their open border policies, so we are taking that off the table,” Johnson and Thune wrote.

The GOP leaders added that they will seek three years of immigration enforcement and border security funding, effectively preventing Democrats from using the appropriations process as leverage over the president’s immigration agenda for the remainder of his term.

Though ICE and the Border Patrol received an unprecedented infusion of money through Trump’s “big, beautiful” bill, certain support staff employed by both agencies have not been paid during the seven-week shutdown.

The U.S. Coast Guard, the Transportation Security Administration (TSA), the Federal Emergency Management Agency (FEMA) and the U.S. Secret Service have seen a more significant lapse in appropriations, though Trump took executive action to provide back pay to TSA agents reporting to work during the funding lapse.

HOUSE REPUBLICANS PASS RIVAL DHS PLAN, SETTING UP SENATE FIGHT AS SHUTDOWN SET TO BECOME LONGEST IN HISTORY

A Republican aide told Fox News Digital the Senate could pass a bill funding the non-immigration parts of DHS via unanimous consent as soon as Thursday morning during a planned pro forma session. The measure would then go to the House for consideration.

The anticipated vote comes after House GOP leadership rejected a Senate-passed deal on Friday including similar language, citing their objections to funding immigration enforcement outside the normal appropriations process.

Sen. John Hoeven, R-N.D., indicated to reporters Monday that Trump would ultimately get behind the Senate’s preferred approach. 

“The Democrats can’t create another shutdown like they did this time,” Hoeven said, if the DHS budget reconciliation bill were to be signed into law.

The North Dakota lawmaker also disputed that a reconciliation package would take several months to put together.

“We’ll get it done as quick as you can,” Hoeven said. “I hope it’s certainly not months.”

A second reconciliation package could prove more difficult in an election year when lawmakers will have to identify spending cuts to pay for the border security and immigration funding. The strategy could also extend the funding lapse for ICE and the Border Patrol for several more months.

Amid both chambers’ planned two-week recesses, Trump told the New York Post on Tuesday he is considering calling Congress back to Washington to find a solution to the DHS shutdown.

House Majority Whip Tom Emmer, R-Minn., told CNBC’s “Squawk Box” on Wednesday that a “skinny reconciliation bill” funding the department would pass both chambers once Congress resumes session in mid-April if a deal has not been reached.

House GOP leadership has previously voiced skepticism about funding immigration enforcement through a budget reconciliation package. Some conservatives have also complained about the precedent of letting Democrats decide which agencies receive funding through the normal appropriations process.

“The problem is that what they’re doing is they’re placing the burden on the Republican Party entirely to make sure that we have border security funding and Immigration and Customs Enforcement, because they’re going to try to force it into a reconciliation bill,” House Speaker Mike Johnson, R-La., told Fox News’ Brian Kilmeade on Friday. “That’s a very difficult task. It is a high risk gamble for us to assume that we could do that.”

President Donald Trump is expected to address the nation at 9 p.m. Eastern Time Wednesday about U.S. operations in Iran after one month of combat. 

The message will be an “important update” about the war, White House press secretary Karoline Leavitt wrote on X. 

The president will give an operational update on the mission known as Operation Epic Fury and is expected to reiterate the two-to-three week timeline for a drawdown of the operation that he gave in comments to reporters Tuesday, a White House official told Fox News Digital Wednesday. 

“He will highlight the United States military’s success in achieving all of its stated goals prior to the operation: destroy Iran’s deadly ballistic missiles and production facilities, annihilate their Navy, ensure their terrorist proxies can no longer destabilize the region and guarantee that Iran can never obtain a nuclear weapon,” the official added.

US EYES SEIZING IRAN’S OIL LIFELINE — BUT IT MAY NOT CRIPPLE TEHRAN

Trump told reporters Tuesday he expected the mission to end in two to three weeks. He posted on Truth Social Wednesday that Iran had asked for a ceasefire, but the U.S. was not open to negotiation until the Strait of Hormuz is open for shipping. 

“We will consider when Hormuz Strait is open, free, and clear,” Trump said. “Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!” 

Iran’s Foreign Ministry spokesperson, Esmail Baghaei, said the claim that Iran had asked for a ceasefire was “false and baseless,” according to Iranian state TV. 

Trump has sent mixed signals in recent days, at times suggesting the conflict could end soon while also threatening intensified strikes if Iran does not meet U.S. demands.

The president told multiple news outlets Wednesday he is strongly considering pulling the U.S. out of NATO over frustrations at what he sees as insufficient military support from allied countries in the Middle East. 

“I was never swayed by NATO,” Trump told The Telegraph in an interview published Wednesday.

European nations so far have resisted pressure to offer warships to reopen commerce in the Strait of Hormuz, through which 20% of the world’s oil supply typically passes. The average price of a gallon of gas surpassed $4 Tuesday, a first since 2022. 

Several key European allies have moved to restrict U.S. military access as the Trump administration presses forward with operations against Iran. Spain has closed its airspace to U.S. aircraft tied to strikes and France is imposing limits on certain overflights carrying military supplies.

PRESIDENT TRUMP SAYS US COULD FINISH IRAN OPERATION WITHIN TWO TO THREE WEEKS

“We’ve been there automatically, including Ukraine. Ukraine wasn’t our problem. It was a test, and we were there for them, and we would always have been there for them. They weren’t there for us.”

Administration officials have suggested U.S. objectives in the conflict are nearing completion, raising the possibility that Trump could outline a path toward winding down operations.

At the same time, thousands of paratroopers from the 82nd Airborne division and a task force of 2,500 Marines from the USS Tripoli have reached the Central Command theater in recent days, raising speculation of a potential ground invasion. 

The USS George H.W. Bush, an aircraft carrier with 6,000 sailors, deployed Tuesday to join the USS Abraham Lincoln already in theater.

Operation Epic Fury began Feb. 28. 

Since then, U.S. forces have struck more than 12,000 targets inside Iran and damaged or destroyed 155 naval ships, according to the Central Command. Thirteen U.S. service members have died in the operations, and 350 have been injured.  

Republican leaders are rallying around President Donald Trump’s new approach to end the 47-day Department of Homeland Security (DHS) funding lapse — a plan that could make the agency shutdown-proof for the rest of Trump’s term.

House Speaker Mike Johnson, R-La., and Senate Majority Leader John Thune, R-S.D., said Wednesday that DHS will be funded along “two parallel tracks,” meaning that the president’s immigration and border security agenda will receive an influx of money through a party-line reconciliation bill. The rest of DHS is funded through the normal appropriations process.

“We operated under a belief that while our country is in the midst of an international armed conflict, Democrats might finally come to their senses and understand that defunding our homeland security agencies is beyond reckless and very dangerous,” Johnson and Thune wrote in a joint statement. “We cannot allow Democrats to any longer put the safety of the American public at risk through their open border policies, so we are taking that off the table.”

The GOP leaders added that a forthcoming budget reconciliation package will include three years of immigration enforcement and border security funding. That move could prevent Democrats from using the appropriations process as leverage over the president’s immigration agenda for the remainder of his term.

HOUSE CONSERVATIVES ERUPT OVER SENATE GOP, WHITE HOUSE DEAL AMID SAVE ACT FIGHT

The GOP leaders’ budget reconciliation push comes as Republican efforts to fund Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP) through regular order have stalled in the Senate due to widespread opposition from Democrats.

With the Senate’s 60-vote legislative threshold in place, Senate Minority Leader Chuck Schumer, D-N.Y., effectively has veto power over DHS appropriations if he keeps his caucus in line.

To end the stalemate, Trump asked Republicans Wednesday to draft a budget reconciliation package funding immigration enforcement and border security that could pass both chambers without any Democratic support.

“We are going to work as fast, and as focused, as possible to replenish funding for our Border and ICE Agents, and the Radical Left Democrats won’t be able to stop us,” Trump wrote on Truth Social. “We will not allow them to hurt the families of these Great Patriots by defunding them.”

The president added that he wants the legislation on his desk by June 1.

The budget reconciliation process would allow Republicans to steer around Democratic opposition and pass a DHS funding bill at a simple majority threshold. Republicans narrowly passed Trump’s One Big Beautiful Bill Act using reconciliation in June 2025 after months of intraparty squabbling.

Though ICE and the Border Patrol received an unprecedented infusion of money through Trump’s “big, beautiful” bill, certain support staff employed by both agencies have not been paid during the seven-week shutdown.

The U.S. Coast Guard, the Transportation Security Administration (TSA), the Federal Emergency Management Agency (FEMA) and the U.S. Secret Service have seen a more significant lapse in appropriations, though Trump took executive action to provide back pay to TSA agents reporting to work during the funding lapse.

HOUSE REPUBLICANS PASS RIVAL DHS PLAN, SETTING UP SENATE FIGHT AS SHUTDOWN SET TO BECOME LONGEST IN HISTORY

Sen. John Hoeven, R-N.D., indicated to reporters Monday that Trump would ultimately get behind the Senate’s preferred approach. 

“The Democrats can’t create another shutdown like they did this time,” Hoeven said, if the DHS budget reconciliation bill were to be signed into law.

The North Dakota lawmaker also disputed that a reconciliation package would take several months to put together.

“We’ll get it done as quick as you can,” Hoeven said. “I hope it’s certainly not months.”

A second reconciliation package could prove more difficult in an election year when lawmakers will have to identify spending cuts to pay for the border security and immigration funding. The strategy could also extend the funding lapse for ICE and the Border Patrol for several more months.

Amid both chambers’ planned two-week recesses, Trump told the New York Post on Tuesday he is considering calling Congress back to Washington to find a solution to the DHS shutdown.

House Majority Whip Tom Emmer, R-Minn., told CNBC’s “Squawk Box” on Wednesday that a “skinny reconciliation bill” funding the department would pass both chambers once Congress resumes session in mid-April if a deal has not been reached.

House GOP leadership has previously voiced skepticism about funding immigration enforcement through a budget reconciliation package. Some conservatives have also complained about the precedent of letting Democrats decide which agencies receive funding through the normal appropriations process.

“The problem is that what they’re doing is they’re placing the burden on the Republican Party entirely to make sure that we have border security funding and Immigration and Customs Enforcement, because they’re going to try to force it into a reconciliation bill,” House Speaker Mike Johnson, R-La., told Fox News’ Brian Kilmeade on Friday. “That’s a very difficult task. It is a high risk gamble for us to assume that we could do that.”

President Donald Trump said Sunday that he would like to “take the oil in Iran” and is considering seizing the export hub of Kharg Island, which is responsible for more than 90% of Iran’s oil exports.

In an interview with the Financial Times, Trump said his “preference would be to take the oil.”

“To be honest with you, my favorite thing is to take the oil in Iran but some stupid people back in the U.S. say: ‘Why are you doing that?’ But they’re stupid people,” he said.

The interview marks some of Trump’s most direct comments about his thinking on what to do with Iran’s oil.

In an interview with NBC News this month, Trump sidestepped answering whether he had plans to try to take Iran’s oil.

“You look at Venezuela,” he said. “People have thought about it, but it’s too soon to talk about that.”

In January, the U.S. captured Venezuelan leader Nicolás Maduro and proceeded to take more control over the country’s oil industry.

The White House did not immediately respond to a request for comment Sunday night.

Trump told the Financial Times on Sunday that the U.S. has “a lot of options,” including potentially taking Kharg Island, a rare island made of hard coral off Iran.

“Maybe we take Kharg Island, maybe we don’t. We have a lot of options,” Trump said. “It would also mean we had to be there [in Kharg Island] for a while.”

Oil prices have skyrocketed around the globe as the war continues, with U.S. crude oil costing over $100 a barrel Sunday.

Thousands more U.S. troops are heading to the Middle East, with the USS Tripoli arriving on Saturday as part of a complement of 3,500 troops. But Trump and his administration continue to signal that they are working to negotiate a 15-point proposal to end the war.

Trump declined Sunday to offer specific details about whether a ceasefire deal could be reached in the coming days to reopen the Strait of Hormuz, a critical waterway used to move about 20% of the world’s oil exports.

“We’ve got about 3,000 targets left — we’ve bombed 13,000 targets — and another couple of thousand targets to go,” Trump said in the Financial Times interview. “A deal could be made fairly quickly.”

Surging oil prices continue to ripple through the global economy because of the war with Iran. Now, some analysts say the worst could still be ahead as the conflict drags on.

The concern is that beyond immediate knock-on effects from rising gasoline prices, the war’s disruption could come in waves — ones that will play out over weeks and months and leave few parts of the global economy untouched.

“We haven’t seen the brunt of it yet,” said Samantha Gross, director of energy security and climate at the Brookings Institute. “I feel like markets are so far underestimating the effect of the war. It seems that they expect this war to go quickly, and they expect that we can go back to the world before when it’s over. And I don’t think either of those ideas is true.”

The warning signs are already here. The global oil price benchmark, Brent crude — which heavily influences U.S. gasoline prices — briefly topped $119 a barrel last week, the highest since the war began and a level last seen in July 2022 amid the pandemic-era inflation wave. As of Monday, Brent prices had settled at about $113 a barrel.

The average price of a gallon of gasoline hit $4 Tuesday for the first time since mid-2022, as the cost of oil surges due to the Iran war.

In the month since the United States and Israel attacked Iran, the average price of unleaded gas has spiked more than a dollar a gallon. On Tuesday morning, the average price nationwide was $4.02 per gallon, motor club AAA said.

It’s not just retail gasoline. The diesel fuel used to power trucks delivering goods to stores, farm equipment and public transit has risen to $5.45 per gallon, more than $1.80 higher than it was a year ago.

Driving that is the soaring cost of crude oil worldwide. U.S West Texas Intermediate (WTI) crude has risen more than 50% since the war began Feb. 28, while Brent, the international benchmark, has seen a jump of nearly 60%.

On Monday, U.S. crude oil settled above $100 per barrel for the first time since Russia’s full-scale invasion of Ukraine in 2022. Brent crude oil is poised to see its largest one-month increase on record.

Oil prices had already started rising before the Iran war began, fueled by fears that a conflict was imminent. Since the start of the year, the cost of U.S. crude oil is up more than 80% and Brent has skyrocketed almost 90%.

In response to strikes by the U.S. and Israel, Iran has effectively blocked shipping through the Strait of Hormuz, a critical channel off its southern coast. Tehran has also attacked its Gulf Arab neighbors, who are major oil producers.

Typically, more than 20% of the world’s oil supply moves through the waterway. But Iran has repeatedly threatened to attack ships if they move through the strait without permission or if they’re associated with the U.S. or Israel. Several tankers have been hit.

As a result, many tankers are stranded in the Persian Gulf, unable to deliver their products to markets.

Some tankers have been allowed to pass through the strait, including one associated with India and three associated with China. But overall traffic through the waterway is down more than 90% in March.

During the first 28 days of the war, a total of only 55 to 60 tankers have cleared the Strait of Hormuz, according to the ship tracking website TankerTrackers.

Before the war, more than 100 ships per day made the passage, it said.

“This rise in gasoline spending could potentially dampen consumers’ ability to spend on ‘nice-to-have’ or discretionary categories,” Bank of America economists recently wrote.

This year, the average U.S. household will spend an additional $740 on gas because of the jump in oil prices, according to economists from the Stanford Institute for Economic Policy Research.

“The consumer has already seen the sticker shock from rising gasoline prices and increased airline ticket prices from the rising cost of jet fuel,” longtime industry analyst Andy Lipow said. “However, the full effects of the higher diesel prices has yet to be felt and that will flow through the economy over the next few months.”

As American consumers adjust to higher gas prices, oil dependent nations in Europe and Asia are already facing much more severe energy shocks. Inflation, oil and gas rationing and sharp pullbacks in economic growth estimates are impacting billions of people worldwide.

Global oil prices continued their recent climb and the S&P 500 closed lower Monday after a weekend when Iran-backed Houthi militants launched ballistic missiles at Israel and 3,500 additional U.S. troops arrived in the Middle East.

The conflict between Iran, the U.S. and Israel has entered its second month, with disruptions to oil and other energy and commodities supplies starting to reverberate around the world.

Brent crude oil, the global benchmark, gained 1.5%, to more than $114 a barrel, while U.S. West Texas Intermediate crude climbed almost 5%, to about $104 a barrel, settling above $100 for the first time since 2022.

Rising oil prices are one of the more immediate consequences of the war. Average U.S. gasoline prices hit $3.99 a gallon Monday, according to AAA, the highest since the summer of 2022. Patrick De Haan, chief analyst at Gas Buddy, projected Monday afternoon they would rise to $4 within 24 hours as the average price of gasoline in Florida surged to $4.29.

De Haan estimates that U.S. drivers will soon have spent an additional $10 billion on gasoline since the conflict began just one month ago.

The S&P 500, one of the broadest measures of stocks, fell 0.4% Monday and is now within less than a full percentage point of having declined 10% since its most recent high in January. The tech-focused Nasdaq Composite Index is already in correction territory, down more than 13% from its October high.

Some investors have begun to question President Donald Trump’s ability to reassure financial markets without material progress on the ground.

Investors also increased their purchases of U.S. government bonds Monday over fears of an economic slowdown, sending bond yields lower and dragging down stocks.

Traders now believe higher oil prices may put a damper on overall demand for goods and services.

Bloomberg News reported that U.S. officials and Wall Street analysts have begun considering the prospect that oil prices could surge to as much as $200 a barrel as the largest oil shock in decades continues to reverberate.

That prospect has led analysts to project a global economic slowdown that would hit a U.S. economy already facing suddenly higher gasoline prices.

Earlier Monday, Trump said “great progress has been made” in talks with Iran. At the same time, he threatened to destroy Iran’s civilian energy and water infrastructure if a deal to end the war and reopen the crucial Strait of Hormuz is not reached soon.

Tehran has said U.S. proposals were “unrealistic” and “unreasonable.”

“I think we’ll make a deal with them, pretty sure, but it’s possible we won’t,” Trump told reporters late Sunday. He later said a deal could come “soon.”

Trump also said that Iran “gave us most” of a 15-point plan the U.S. sent Tehran to end the war, which Iran has yet to publicly confirm, and that 20 boatloads of oil — on top of 10 the previous week — will be passing through the Strait of Hormuz beginning Monday “out of a sign of respect.”

Trump separately told the Financial Times on Sunday that an Iran deal could be made “fairly quickly” and that he wants to “take the oil in Iran.”

Rep. Eric Swalwell, D-Calif., is threatening legal action against the Federal Bureau of Investigation (FBI) as it reportedly considers releasing potentially damaging files just weeks before he faces voters in California’s wide-open gubernatorial race.

Lawyers for Swalwell sent a cease-and-desist letter to FBI Director Kash Patel, warning the bureau would violate federal privacy law if it moves ahead with releasing records regarding the congressman’s decade-old relationship with a suspected Chinese spy named Christine “Fang Fang” Fang. 

“[Y]our attempt to release the file is a transparent attempt to smear him and undermine his campaign for Governor of California,” Swalwell’s attorneys, Sean Hecker and Norm Eisen, said in a recent letter to Patel obtained by The Associated Press. “Your actions threaten to expose you, others at the FBI, and the FBI itself to significant legal liability. Indeed, disclosure of the investigative file would violate federal law in several respects.”

The FBI did not immediately respond to a request for comment.

ADAM SCHIFF MAKES ENDORSEMENT IN CALIFORNIA GUBERNATORIAL RACE

The letter comes as The Washington Post first reported that Patel is weighing the release of investigative records related to Swalwell’s past relationship with Fang, who is accused of cultivating ties with Swalwell and other California Democrats for espionage purposes. 

The suspected Chinese spy operative helped fundraise for Swalwell’s 2014 House re-election campaign and placed at least one intern in his office. Swalwell cut off ties with Fang in 2015 after the FBI alerted him to the suspected Chinese influence campaign.

The Justice Department did not pursue criminal charges at the time and Swalwell has denied any wrongdoing. A probe launched by the House Ethics Committee also concluded in 2023 without accusing Swalwell of any violations.

SWALWELL GOVERNOR BID HIT WITH RESIDENCY QUESTIONS AFTER COURT FILING ALLEGES HE DOESN’T LIVE IN CALIFORNIA

Swalwell’s lawyers also accused Patel of potentially violating long-maintained DOJ policy that prohibits law enforcement from taking any public investigatory action against political candidates in the two months prior to an election. 

Early voting for California’s June 2 gubernatorial primary begins in early May. Swalwell is vying to be among the top two vote-getters that advance to the general election after jumping into the race in late 2025.

“It’s not lost on me that we’re 34 days until Californians start voting,” Swalwell told CNN’s Brianna Keilar on Monday. “We’ve consistently been in the lead in this governor’s race. And the president wants a Western White House.”

Swalwell is a vocal critic of President Donald Trump and served as an impeachment manager during the president’s second impeachment in 2021, following the Jan. 6 attack on the U.S. Capitol.

The California Democrat has also been criminally referred to the DOJ for alleged mortgage fraud.

Rep. Jamie Raskin, D-Md., has also blasted Patel for reportedly advocating for the release of the so-called “Fang Fang” files. 

“What the hell does that have to do with law enforcement?” Raskin said Saturday. “This is plain weaponization of the FBI for partisan political purposes.”

Amid President Donald Trump’s illegal immigration crackdown, one congressional Democrat is calling for reparations for foreign nationals who are affected.

“We are going to have some form of reparation for the kids and the families that have been traumatized through all of this,” Rep. Pramila Jayapal, D-Wash., said Friday during a congressional hearing, referring to illegal immigrants. “You talked about how there’s no support for people even once they’re released. We need to make sure that we are funding that kind of work to continue to provide relief.”

Jayapal, the former chair of the Congressional Progressive Caucus (CPC), made the comments during the seventh installment of a hearing series titled “Kidnapped and Disappeared: Trump’s Attack on Children.”

The left-wing lawmaker said reparations for illegal immigrants affected by Trump’s crackdown efforts would be just one item in a series of reforms she would push Democrats to pursue if they retake House control in November. 

HOUSE DEM COMPARES TRUMP’S ILLEGAL IMMIGRATION CRACKDOWN TO ‘TERRORISM,’ VOWS TO ABOLISH ICE

Jayapal, who was born in India and became a U.S. citizen in 2000, also said she wants “offensive action” regarding those who are carrying out Trump’s illegal immigration crackdown. 

“We need real accountability, because at the end of the day, the people that have been inflicting this harm need to be prosecuted,” Jayapal said. “They need to be brought before us, and they need to be held to account for the trauma that they have created.”

A spokesperson for Jayapal did not respond to a Fox Digital inquiry about who specifically she wants to see prosecuted or who would be eligible for reparations.

Reparations refer to financial compensation for a specific group intended to address reputed economic harms. Many progressive Democrats have long advocated for reparations for the descendants of American slaves.

JAYAPAL DOUBLES DOWN ON ANTI-ICE TERROR CLAIMS AS DHS SHUTDOWN TRIGGERS HISTORIC TRAVEL CHAOS

Throughout the hearing, congressional Democrats repeatedly called attention to the children of deported illegal immigrants, while saying little about the victims of illegal immigrant crime.

The group of Democratic lawmakers did not discuss 18-year-old Sheridan Gorman, who was allegedly shot and killed by a Venezuelan national illegally living in the United States in Chicago earlier this month.

Jayapal’s comments came during the record-breaking Department of Homeland Security (DHS) that has continued to drag on with no end in sight.

She and nearly all House Democrats have refused to fund the department until the Trump administration agrees to various proposals that could rein in immigration enforcement.

“I have been clear since the start of the appropriations process: I will not vote to give Trump’s ICE or CBP another cent without major reforms,” Jayapal said Friday following her vote against a two-month DHS funding extension.

Though Democrats have been willing to fund the non-immigration parts of DHS, most Republicans have rejected that idea because it would effectively defund law enforcement.

Zeroing out appropriations for ICE and the Border Patrol would continue to force support staff employed by those agencies — have not received a full paycheck during the seven-week funding lapse — to keep working without pay.