July 3, 2026 - Daily News Digest
On this Day: in 987, Hugh Capet is crowned King of France, the first of the Capetian dynasty that would rule France until the French Revolution in 1792.
QOTD: “The United States spends more money on NATO than any other country, by far, to protect them, without getting any benefit from so doing,” Trump said in a social-media post Thursday.
IRAN/MOURNING - Iran prepares for dayslong funeral for late Supreme Leader Ayatollah Ali Khamenei, killed in war
https://apnews.com/article/ali-khamenei-funeral-supreme-leader-iran-us-war-july-3-2026-554d4f05f43ebbb86f81821eb18c0927
Iran prepared Friday for the dayslong funeral of the late Supreme Leader Ayatollah Ali Khamenei, with banners across Tehran urging the public to rise up in support of the Islamic Republic after the devastating war that killed the 86-year-old cleric.
The country’s theocracy expects to see millions flood the streets of the capital beginning Saturday in scenes reminiscent of the burial of the late Supreme Leader Ayatollah Ruhollah Khomeini in 1989.
That could provide a boost for Iran’s government, particularly as it tries to leverage its hold on the Strait of Hormuz in negotiations with the United States over a permanent end to the war, and as concern still lingers that Israel could attack yet again.
Despite that, a powerful general who leads Iran’s paramilitary Revolutionary Guard emerged publicly for the first time in months for the funeral. Other top government officials will also likely will be on hand alongside foreign dignitaries in a show of strength by Iran.
MONACO/UKRAINE/SEC - Monaco blast suspect is a Ukrainian woman who fled to Germany
https://www.reuters.com/world/authorities-issue-arrest-warrant-interpol-red-notice-monaco-blast-suspect-2026-07-03/
A Ukrainian woman is the main suspect in a bomb attack that targeted a wealthy businessman in Monaco, officials said on Friday, adding that the suspect had fled to Germany and had likely not acted alone.
Ukrainian-born Vadym Yermolaiev, his partner and son were wounded in the attack on Monday evening, sources said earlier this week. His partner was still in a critical condition.
Anastasiia Berezovska, 39, was named as the chief suspect in an Interpol Red Notice, which said she was Ukrainian, spoke German and was being sought by Monaco for attempted murder, placing an explosive device in a public place with criminal intent and criminal conspiracy.
The principality, known for its casino and the luxury lifestyle of its wealthy inhabitants, is located on the Mediterranean coast, surrounded by France.
SUSPECT FLED TO GERMANY
A Red Notice is a request for law enforcement to locate and provisionally arrest a suspect no matter where they are found.
The attacker left a parcel in front of a building in Monaco and set off the bomb with a remote control when the three victims arrived there, Monaco deputy prosecutor Morgan Raymond told reporters.
The suspect then left on foot to nearby France and fled with a car that had been rented in Germany, driving back to Germany via several European countries, including Italy.
RUSSIA/ENERGY - Novorossiysk suspends gasoline sales to private drivers as Russian fuel crisis bites
https://www.reuters.com/business/energy/cossacks-volunteers-help-keep-order-petrol-stations-russian-black-sea-resort-2026-07-03/
The Russian city of Novorossiysk said on Friday it had suspended gasoline sales to private motorists, and the Black Sea resort of Anapa said Cossacks were helping prevent conflicts at petrol stations as a fuel crisis worsened following Ukrainian attacks.
Long queues of cars now snake back at petrol stations across Russia as drivers feel the impact of Ukrainian strikes on energy infrastructure intended to pressure Russia into making peace after more than four years of war.
The attacks, following Russia's pounding of Ukrainian power facilities, have forced the world's third-biggest oil producer to import gasoline from as far away as India and led to limits being imposed on how much motorists can buy in some areas and other steps to manage shortages.
Announcing the halt to gasoline sales to private motorists in Novorossiysk, Russia's largest Black Sea outlet for exporting oil, authorities said so-called fuel cards were being issued for fuel purchases to municipal services, firms and businessmen.
Diesel remained available at eight filling stations, the authorities said.
ALBANIA/US/SEC - Protests Over Kushner-Linked Project Turn Violent in Albania
https://www.bloomberg.com/news/articles/2026-07-02/protests-over-kushner-linked-project-turn-violent-in-albania
Albanian police used water cannon and tear gas to disperse protesters in Tirana, in one of the most tense confrontations since rallies over coastal development projects linked to Jared Kushner began a month ago.
The demonstrations turned violent after a small crowd near the parliament building began throwing eggs and other objects at vehicles carrying lawmakers and ministers to a plenary session.
The anger focused primarily on Prime Minister Edi Rama’s ruling Socialist Party, but also on opposition lawmakers as some in the crowd accused them of doing too little to address their concerns. They also called on the government to resign.
Protests began in early June after preparatory work started for a luxury resort in the environmentally sensitive Albanian coastal area, part of wider development plans tied to investments in Albania planned by President Donald Trump’s son-in-law.
EU/HEAT - At least 3,700 excess deaths reported during heatwave in France, Belgium and Netherlands
https://www.reuters.com/business/healthcare-pharmaceuticals/least-3700-excess-deaths-reported-during-heatwave-france-belgium-netherlands-2026-07-03/
France, the Netherlands and Belgium have recorded 3,700 excess deaths during the June heatwave that sent temperatures soaring across Europe, with authorities warning that the numbers are preliminary and could rise.
Experts have said the heatwave, which lasted from about June 20-28, was the worst recorded in Europe, causing disruption to power generation, damaging infrastructure and overwhelming healthcare systems. The extreme heat was almost certainly driven by climate change, scientists said.
There were 2,025 excess deaths recorded in France during the heatwave, with a particular increase in deaths among people aged over 45, French Health Minister Stephanie Rist told local television on Friday.
Deaths at home rose 91% between June 22-28 compared to the previous week, while deaths in nursing homes and healthcare facilities also increased, the country's public health authority said in a bulletin.
"Mortality will ... be higher than these initial figures suggest," the authority warned.
IRAN/OMAN/SHIPPING - Iran and Oman propose fee plan for Strait of Hormuz, sources say
https://www.nbcnews.com/world/iran/iran-oman-propose-fee-plan-strait-hormuz-sources-say-rcna352822
Iran and Oman have presented the U.S. with a proposal to administer the Strait of Hormuz that includes the joint collection of administrative fees by the two Middle East nations, four sources told NBC News.
In a memorandum of understanding signed last month, the U.S. and Iran agreed ships could safely and freely transit the strait for 60 days and that afterward administering the critical waterway would be left to be defined by Iran and Oman in discussions with other Persian Gulf states.
Omani Foreign Minister Sayyid Badr bin Hamad Al Busaidi said in an interview this week that Oman does not support imposing fees on ships to transit the Strait of Hormuz. But he drew a distinction between mandatory fees and voluntary charges to shipping companies to maintain the vital waterway, in a manner similar to models used in the Strait of Malacca and Singapore.
Two sources familiar with the discussion and a regional source said the plan has recently been delivered to the U.S., but a Middle East official said that while the U.S. had been consulted on possible mechanisms for the strait, Oman has not delivered a formal proposal.
CHINA/MIL/POL - Xi Replaces Anti-Corruption Leader in Purge of China’s Army
https://www.bloomberg.com/news/articles/2026-07-03/xi-replaces-anti-corruption-leader-in-purge-of-china-s-army?srnd=homepage-americas
Chinese President Xi Jinping has appointed a new head of anti-corruption efforts in the armed forces as he continues the country’s biggest military purge in half a century. Zhang Shengmin, who previously served as the military’s top anti-graft official, is now vice chairman of the CMC. It remains unclear what role former Air Force Commander Chang Dingqiu will take next.
Xi launched a sprawling campaign to root out corruption in the armed forces in mid-2023, months after securing a precedent-defying third term. Since then, he’s ousted two vice military chairs, three CMC members, a former defense minister and at least a dozen senior generals who oversaw military commands.
Zhang Shuguang has become secretary of the Central Military Commission’s discipline inspection commission, according to state-run Xinhua News Agency, which revealed the move at a ceremony attended by Xi in Beijing on Friday. Wang Gang is now commander of the People’s Liberation Army Air Force, it said. Both men were promoted to the rank of general, China’s highest level for officers in active service.
TECH - AI Data Centers Use Far More Water Than Most Tech Giants Report
https://www.wsj.com/tech/ai/ai-data-centers-water-use-901e2902?mod=hp_lead_pos8
Microsoft, Google and Amazon are among the tech companies spending an estimated $1 trillion on AI infrastructure this year and last. In some regions, they are using far more water than they report, depending on how data centers are powered. And their water consumption is projected to grow rapidly in coming years.
These companies produce annual sustainability reports that include water use at their data centers. But among this group of titans, only Meta tallies water used at the power stations that feed them electricity, in addition to the water used on-site.
No law obligates these companies to report the full scope of their water use, both direct and indirect. In the U.S., indirect water consumption for data centers has historically been about 12 times as great as the amount they directly consume, according to a 2024 analysis by Lawrence Berkeley National Laboratory.
Experts who are calculating the water demands of the biggest infrastructure buildout in U.S. history say this could lead to regional fights over who gets an increasingly scarce resource.
The report cards
Google’s just-released 2025 sustainability report is an instructive example. The company said it consumed 10.9 billion gallons of water—a 34% increase from 2024—almost all for data-center cooling.
But how much water was used while generating the power for those data centers? Indirect water consumption can vary a great deal, depending on how power is generated—coal and nuclear need a lot of water, while natural gas needs less. Renewables including solar and wind need almost none.
Google consumes around three times as much water indirectly as directly, according to a paper published earlier this year by Alex de Vries-Gao, a researcher at the Netherlands-based university VU Amsterdam.
A complicating factor is that Google, like Amazon and Apple, pays for enough renewable energy to match 100% of what the company uses. That doesn’t mean every electron comes from solar or wind, but it does mean Google can claim to be offsetting its power use with low-carbon-emissions sources that use almost no water.
Some critics—including 16 state attorneys general who signed a letter in 2025—contend that offsetting energy produced by fossil fuels isn’t the same as actually replacing those sources of energy. And renewable-energy credits aren’t the same as an offset for water consumed in a given area. For instance, if a river in Nevada runs dry, an abundance of water in Michigan can’t help.
Meta’s indirect water use was 19 billion gallons in 2024—more than 20 times as high as its direct water use. Meta has a plan to “become water positive in 2030,” in part through water-restoration projects. The company doesn’t have a plan to remediate indirect water consumption.
US/EU/MIL - Hegseth Prepared a Bombshell Plan to Cut Troops in Europe. Then It Got Nixed.
https://www.wsj.com/politics/national-security/hegseth-prepared-a-bombshell-plan-to-cut-troops-in-europe-then-it-got-nixed-cbb87e75?mod=world_lead_pos1
Defense Secretary Pete Hegseth was planning to head to Brussels last month to deliver what would be a bombshell announcement in a meeting with the North Atlantic Treaty Organization’s top military chiefs.
The U.S., he planned to say, was preparing additional cuts to its forces in Europe that would go beyond the canceled deployment of an armored brigade to Poland and the earlier withdrawal of an infantry brigade from Romania, people familiar with the matter said. But Hegseth’s proposal was nixed after it was shared with Marco Rubio—President Trump’s national-security adviser—and other senior officials, the people said.
Instead, Hegseth said the U.S. would conduct a review of its force posture in Europe that could last as long as six months.
The incident suggests the administration isn’t yet settled on the pace and scope of potential cuts in U.S. troop levels in Europe. While Trump has talked of punishing NATO countries that he thinks don’t spend enough on their own defense or that didn’t support the U.S. war with Iran, Hegseth’s proposals and fiery speeches have rattled allies and lawmakers—including some leading Republicans—who worry he will cause lasting damage to the alliance and embolden Russia.
The White House referred questions to the Defense Department. Sean Parnell, chief Pentagon spokesman, said, “Secretary Hegseth ensured his message was aligned with the president’s objectives and agenda, and he did not want to impede upon the president’s decision space.”
U.S. troop levels and allied military spending are expected to be a focus when Trump meets with NATO leaders in Ankara, Turkey, next week.
NATO officials hope the Ankara summit will showcase unity with the U.S. and support for Ukraine in its war against Russia but say they fear tensions with Trump could overshadow the summit. NATO officials are considering scrapping plans to hold a summit next year in Albania, officials said, a development earlier reported by Reuters.