Good morning. Democratic state attorneys general for California and Illinois pledged to continue to fight the federal government for legal oversight of prediction markets operators such as Kalshi and Polymarket, Max Fillion reports for Risk Journal.

• Face-off: The statements, made at a legal conference in San Diego, put California Attorney General Rob Bonta and Illinois Attorney General Kwame Raoul at odds with Michael Selig, the new head of the Commodity Futures Trading Commission, who has recently argued online and in court briefs that his agency has sole jurisdiction over the new platforms.
   
• Legal fights underway: The platforms themselves argue in several legal fights with the state AGs, including those in California and Illinois, that the CFTC has sole jurisdiction. The states argue they should be able to regulate the platforms as they do gambling businesses.
   
• New rules coming: Selig has said his agency will soon introduce new tailored regulations for the prediction markets and sees a future where they exist side-by-side with state-regulated sportsbetting, which was largely illegal in the U.S. until the Supreme Court overturned a federal ban in 2018.

Costco sued by customer over tariff refund.

Costco Wholesale is being sued by a shopper looking to get his tariff costs back.

A lawsuit filed Wednesday in an Illinois federal court alleges that Costco owes its customers refunds related to tariffs deemed unlawful by the Supreme Court last month. The suit is seeking class-action status on behalf of Costco shoppers nationwide.

EU’s top court: Sanctioned entities are barred from corporate voting.

The Court of Justice of the European Union ruled on Thursday that EU asset freezes under Russia sanctions “absolutely and unconditionally” bar sanctioned entities from exercising shareholder voting rights, closing a legal argument that had wound through Dutch courts for nearly four years.

“The freezing of funds, within the meaning of this provision, prevents, absolutely and unconditionally, a person or entity, or a person or entity associated with it…from exercising the rights to participate in and vote at a meeting of holders of share certificates in respect of the certificates held by that person or entity,” according to the ruling.

• The Justice Department’s new overarching policy for handling companies that report their own misconduct to prosecutors is intended to cut down on the uncertainty for businesses facing prosecution from several offices, former criminal division chief Matt Galeotti said.
   
• Tesla secured a license to supply electricity to households and businesses in Britain, a boost for Elon Musk’s company as it seeks to expand its energy business.
   
• The U.S. has imposed new sanctions targeting fake North Korean information technology worker scams.
   
• The Trump administration is suing California in an effort to shut down the state’s moves to limit pollutants from cars and transition to zero-emission vehicles.

Israeli officials think Iran’s regime isn’t likely to fall soon.

Israeli officials now assess that Iran’s ruling regime is unlikely to fall in the immediate future, as Tehran’s battered rulers remain in control and conditions on the ground aren’t yet ripe for a popular uprising, people familiar with the matter said.

Nearly two weeks into the war, Iran’s military and political leadership appears functional and responsive to events, while its domestic opponents have been cowed by a heavy security presence. Israeli officials assess that changing that equation would likely require many more weeks or months of fighting.

• Oil Markets Brace for Lasting Turmoil in the Gulf
• Fertilizer Stocks Jump With Shipments Stuck at the Strait of Hormuz

• Airfares have doubled on some flights. The sticker shock for spring travel is upon us.
   
• War is raging. Tankers are burning. Yet the stock market isn’t panicking—for now, columnist James Mackintosh writes.

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• Four crew members were killed when a American KC-135 fuel tanker crashed Thursday in western Iraq, the U.S. military said. The plane had been flying with a crew of six, and rescue efforts were under way.
   
• A suspect armed with a rifle is dead after ramming his car into a synagogue outside Detroit Thursday, a law enforcement official said.
   
• UFC fighters are planning to hold a training event for FBI agents.
   
• There’s a new way to watch the Oscars: turning every moment into a wager.
   
• Chinese leader Xi Jinping enshrined in law his vision for a powerful China united around a single national identity, the culmination of a long-running campaign to assimilate the country’s ethnic minorities.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

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