The New Deal That Could Lock in Iran’s Control of the Strait, and the $7 Billion Trump’s Not Spending

**SPEAKER_1** (0:00)
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**Tracy Mumford** (0:34)
From the New York Times, it's The Headlines. I'm Tracy Mumford. Today is Tuesday, August 4th. Here's what we're covering.
In the Middle East, a deal is coming together to reopen the Strait of Hormuz, but it will come at a price, effectively cementing Iran's control over what had been an open international waterway. The agreement that's being worked out is between Iran and Oman, the countries on either side of the strait. Officials familiar with the talks say what's being discussed is a setup in which ships heading into the strait would go through a channel controlled by Iran, and ships coming out would go through a channel controlled by Oman. Iranian officials say those ships would be charged a service fee. The deal would give Iran vastly more leverage over the strait than it had before the war. For his part, President Trump has said little about the emerging agreement, which would go against his administration's repeated demands that the strait be reopened with no restrictions. Secretary of State Marco Rubio has warned that if Iran takes control of the international waterway, it could set a dangerous precedent for other countries to do the same around the world. But for Trump, it's important politically to get ships moving again, since the closure has ratcheted up global energy prices and Americans are feeling it. The administration had tried to reopen the strait by force, using heavy bombing campaigns to try and prevent Iran from being able to attack ships in the waterway.
But, according to officials, the head of US Central Command has said those American strikes have reached the limit of their effectiveness. One Middle East expert at a non-profit think tank told The Times that, quote, Trump's options are between an unwinnable war and an unpalatable peace.
Meanwhile, with the future of the Strait of Hormuz still up in the air, roughly 6,000 sailors are still stranded in the waterway, according to the International Maritime Organization. While many ships that were trapped at the beginning of the war have sailed out, during pauses in the fighting, for example, or by being guided by the US military, others haven't been able to get through or don't want to take the risk. There have been over 60 attacks on ships in the strait since the war began. The head of a union representing shipworkers told The Times they feel, quote, absolutely abandoned, absolutely unprotected, and that their finances and mental health are suffering as they sit and sit and sit. Shipping experts say that crew members can ask to be taken off ships and flown home, but that can require complex logistical wrangling. And since many crew members are on short-term contracts, they might be hesitant to be seen as causing trouble, potentially jeopardizing their employment.
Now, two other quick updates on the Trump administration. First, I was disappointed with Jeannine Pirro. Really disappointed with Jeannine Pirro.

**SPEAKER_1** (3:48)
She folded like an umbrella.

**Tracy Mumford** (3:51)
President Trump openly railed against Jeannine Pirro, the Fox News personality he appointed as US attorney for DC, saying she shouldn't have dropped a series of vandalism charges in the Reflecting Pool Case.

**Andrew Keh** (4:03)
And I guess she choked.

**Tracy Mumford** (4:05)
Pirro, who has been a longtime ally of Trump's, publicly contradicted him in a recent court filing when she said problems with the pool were due to shoddy construction work, not left-wing radicals with knives, as Trump has claimed. Prosecutors have now dropped charges against four defendants accused of vandalism.

**SPEAKER_1** (4:25)
Are you reconsidering her role?

**Andrew Keh** (4:27)
I don't know what.

**Tracy Mumford** (4:28)
You're fake news.

**SPEAKER_1** (4:29)
Don't ever talk again.

**Tracy Mumford** (4:31)
You're fake news.

**Andrew Keh** (4:31)
What are the worst things?

**Tracy Mumford** (4:32)
When asked whether Pirro would keep her position, Trump lashed out at the reporter. Later, Pirro came to the White House for a meeting with the president in the Oval Office. According to two people briefed on the outcome, she wasn't fired, nor did she offer her resignation.
And a second update now. The Times has been looking at a pot of money the Trump administration isn't spending. For decades, the federal government has issued big grants to communities all over the US for public transit projects. Railroad tracks, train stations, better bus service, etc. They're called capital investment grants. Congress has designated funds for that purpose. But right now, under this administration, more than $7 billion haven't been allocated to any project. There are a lot of communities that say they could use this money. For example, Utah is trying to get ready to host the Winter Olympics in 2034, which sounds far off, but adding more rail infrastructure to shuttle people around takes time. And one county in Maryland is asking for money to help revamp traffic signals and sidewalks along a busy stretch of road that's dotted with memorials for pedestrians who've died there. They're waiting to see what will happen with their requests. But so far, the Trump administration hasn't signed a single new agreement under the program. In Trump's first term in office, his administration proposed eliminating this funding altogether. Congress funded it anyway. This new tactic is more subtle. Instead of terminating grants, which often ends up in court, it's just quietly not giving out new ones.