Good morning. The U.S. has options to follow through on President Trump’s threat of tough Russia sanctions, report Max Fillion and Richard Vanderford for Dow Jones Risk Journal.

But experts disagree on the best way to amp up pressure on the country’s struggling—but resilient—economy.

• Background: President Trump recently threatened to ramp up sanctions on Russia as he seeks to force Moscow to the negotiating table, expressing frustration at the slow pace of talks to end the war in Ukraine. He later downplayed the possibility. The Treasury Department declined to comment on what Trump might target next.
   
• The options: “The U.S. has stopped short of putting a comprehensive embargo on Russia,” said Larry Ward, a partner at the law firm Dorsey & Whitney. “That is one of the possibilities.” 
   
• Energy: The most obvious target is Russia’s oil-and-gas sector, which is predicted to account for about 27% of its federal tax revenue in 2025, according to an Atlantic Council report. The Trump administration could go “full nuclear” or continue to slowly increase pressure to give allies a chance to further wean themselves off Russian energy, said Dj Wolff, a partner at Crowell & Moring.
   
• What about financial services? The next round of sanctions likely won’t target banks, according to recent reporting, but Trump has the authority to target banks in third-party countries under an executive order President Biden signed in 2023. The U.S. has been reluctant to use that power, Wolff said, opting for it only once in January to target a Kyrgyz bank for facilitating cross-border payments between Russia and China for sensitive goods. 

Also: White House Quietly Pressures Senate to Water Down Russia Sanctions

Switzerland puts tough banking curbs on UBS to prevent another Credit Suisse.

Switzerland proposed some of the toughest capital rules in the world on banking giant UBS, an effort to prevent another Credit Suisse-style meltdown, protect taxpayers and restore the country’s reputation as a haven for rich people.

The details: Draft banking reforms proposed Friday said UBS will have to hold around $26 billion in additional equity capital and reduce its reliance on hybrid bonds that can convert to equity. That is at the top end of a $15 billion to $25 billion range previously flagged by the government and would lift UBS’s headline capital ratio to around 15% to 17% from 14.3% as of the end of 2024.

U.S. sanctions Iranian shadow banking network.

The U.S. imposed sanctions on a sprawling network of Iranian individuals and front companies it says are laundering billions of dollars for Tehran, Mengqi Sun reports for Risk Journal. 

The Treasury Department on Friday targeted more than 30 individuals and entities tied to three Iranian brothers who allegedly used Iranian exchange houses and front companies under their control in Hong Kong and the U.A.E. to move money on behalf of Iran’s oil and petrochemical sectors, which face U.S. sanctions.

• President Trump is planning to give TikTok another lifeline.
   
• Export controls—a major concern for industries worldwide—are moving to the top of the agenda of trade talks between the U.S. and China on Monday.
   
• The Securities and Exchange Commission is considering loosening longstanding rules that restrict private-equity investments to institutions and wealthy people.
   
• California is finding ways to pressure companies to cut pollution, even as Republican lawmakers roll back the state’s clean-air efforts that pioneered emissions regulations.
   
• President Trump issued executive orders to ease restrictions on U.S. drones and take other steps to bolster an industry struggling with competition from China.
   
• The U.S. has imposed sanctions on four International Criminal Court judges, citing their involvement in decisions targeting American and Israeli officials, in a move that could potentially cripple the court’s artificial intelligence-powered investigation systems that depend on U.S. technology partners.
   
• A federal judge in California finally approved a $2.6 billion settlement for college athletes that upends a century-old tenet of college sports—the notion that schools cannot pay the athletes that play for them.
   
• EchoStar is considering a chapter 11 bankruptcy filing as the company vies to shield its cache of wireless spectrum licenses from the threat of revocation by federal regulators, people familiar with the matter said.

Think splitting a check is tough? Try splitting a tariff.

Forget squabbling over a restaurant check or cab fare—try wrangling over who will cover tariffs on billions of dollars’ worth of imports.

Apparel companies and their overseas suppliers for weeks have been going back and forth over whether and how to share the cost of President Trump’s tariffs. In many cases, they still haven’t agreed.

How the Cybertruck came to embody Tesla’s problems.

The bromance between Elon Musk and President Trump is ending at a difficult time for Tesla. The electric-vehicle maker lost roughly $150 billion of market value Thursday—its biggest ever drop—after the Tesla CEO and Trump traded insults.

Sales of Teslas have slumped this year.  And Tesla’s Cybertruck has become synonymous with Musk’s polarizing stint in politics, exposing some owners to graffiti or middle fingers from other drivers. And its reputation has been tarnished among Tesla fans because of a spate of recalls and manufacturing issues that have resulted in cycles of repairs.

• Musk’s xAI Is Trying to Borrow $5 Billion While His Relationship With Trump Blows Up

• The U.S. economy, which weathered false recession alarms in 2023 and 2024, is entering another uncomfortable summer.
   
• Americans can expect to pay more to stay cool this summer thanks to forecasts for above-average temperatures across the country and natural-gas prices that are heading into air-conditioning season 37% higher than last year.
   
• Law-enforcement officers fired tear gas and rubber bullets as standoffs with anti-ICE protesters in downtown Los Angeles escalated late Sunday, while President Trump’s deployment of National Guard troops drew pushback from California Gov. Gavin Newsom.
   
• A Chinese-owned company is halting construction of an electric-vehicle battery plant in South Carolina, in part because of the Trump administration’s tariffs and a potential loss of federal subsidies for clean energy.
   
• A U.S.-China trade truce wasn’t enough to stem a sharp drop in shipments from China to America last month, a sign of the havoc that President Trump’s tariffs have wrought on trade between the world’s two largest economies.
   
• Air Products' bet big on hydrogen, but sentiment has soured, costs are snowballing and customers remain elusive.
   
• Russia launched a missile-and-drone attack on Ukraine on Friday, killing at least three people in Kyiv, igniting fires across the capital and partially shutting down its metro system.
   
• Canada introduced legislation on Friday that aims to accelerate approval of resource and infrastructure projects, and knock down internal trade barriers.
   
• Industrial production in the eurozone’s two largest economies declined in the first month of President Trump’s global tariff blitz, a sign that an economic slowdown is underway.

• National Guard troops and protesters faced off in Los Angeles on Sunday in an uneasy impasse at a federal detention center in Los Angeles, before city police moved in to try to disperse the crowd.
   
• President Trump warned former right-hand-man Elon Musk to stay out of the midterm elections, threatening “very serious consequences” if he backed Democrats in the campaign.
   
• Sen. Miguel Uribe, a presidential hopeful and grandson of a former president, was fighting for his life Sunday after a teenage gunman shot him in the head.
   
• How Republicans linked Harvard to Uyghur genocide over a 2023 training event.
   
• Criminals are exploiting the trust teens have in iPhone messaging, and are using the platform to make relentless demands for money in so-called "sextorition" scams, which sometimes end in tragedy. 

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

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