President Trump to Reimpose a U.S. Blockade of Iran

SPEAKER_2 (0:05)

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Alex Ossola (0:33)

Trump says the US blockade of Iranian shipping is back on, and oil prices jump.

Plus, Goldman Sachs' top lawyer was going to step down after she was named in the Epstein files. Instead, she's actively involved in choosing her successor, and she's testifying to Congress this week.

AnnaMaria Andriotis (0:49)

There has been concern inside Goldman about the impact that this could have on the reputation of Goldman Sachs.

Alex Ossola (0:58)

And a dozen states are trying to stop the Paramount-Warner brothers' merger. It's Monday, July 13th. I'm Alex Ossola for The Wall Street Journal. This is the PM Edition of What's News, the top headlines and business stories that move the world today.

We begin tonight's show with the latest on the Middle East, where a standoff over who controls the Strait of Hormuz has led to days of fighting between the US and Iran. President Trump said today that he was reimposing the US blockade on Iranian shipping. The military says that will resume tomorrow at 4 p.m. Eastern.

And in an interview on Fox News' Fox and Friends, Trump said that the US would be back in control of the waterway.

SPEAKER_5 (1:40)

Lindsey Graham was definitely on your side when it comes to Iran and the threat, them not having a nuclear weapon. It looks like they're back at their business trying to take over the strait What's your response?

SPEAKER_6 (1:51)

Well, we're taking over the strait. They have nothing.

Alex Ossola (1:54)

On social media, Trump said that the US would charge 20% of each cargo through Hormuz as compensation for its cause. He didn't lay out how that would work. Analysts say taking over Hormuz militarily would require a substantial ground invasion or a risky naval operation. Trump so far hasn't gone down that route, and doing so could mean a lot of US casualties. Iran's armed forces said it wouldn't allow the US to, quote, interfere in how the Strait is managed.

A federal judge today issued a scathing rebuke of President Trump and his family, saying that they acted in bad faith in bringing a $10 billion lawsuit against the IRS. Judge Kathleen Williams said that the lawsuit was an effort to manipulate the judicial process for Trump's benefit and that Justice Department officials abdicated their responsibility to defend the US government's interests. She referred Trump's lawyer Alejandro Brito to Florida bar authorities to determine whether any disciplinary action is appropriate. Trump's case against the IRS led to the creation of a $1.8 billion anti-weaponization fund and a government promise not to audit Trump, his family and his businesses. The administration has backed off the fund. A Justice Department spokeswoman didn't immediately respond to a request for comment. Trump's legal team says the president was wronged by an IRS employee and that he will continue to hold those responsible to account.

Turning to Congress, Lindsey Graham's sister, Darlene Graham Nordone, will serve as the state senator's temporary replacement in the Senate. South Carolina Governor Henry McMaster, a Republican, announced her appointment this afternoon.

SPEAKER_6 (3:23)

Lindsey took care of his little sister in years long departed. It's my honor to ask his little sister, Darlene Graham, to finish his work for him now.

Alex Ossola (3:36)

Her appointment had Trump's approval. She'll serve out the remainder of her brother's term, which ends in early January. That brings Republican Senate majority back to 53 seats, although Kentucky Senator Mitch McConnell remains in the hospital and unable to vote. The president is separately discussing Republican candidates to fill Graham's seat for a new six-year Senate term. The journal has learned that he's expressed interest in Representative Russell Frye of South Carolina for that.

Coming up, a new challenge to a Hollywood megadeal, lawsuits alleging a link between Tylenol and autism are back on the table, and why a move to make it easier to apply to college might actually make it harder to get in. Those stories and more after the break.

SPEAKER_7 (4:22)

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