Good morning. The U.S. Department of State on Friday levied sanctions on a right-wing Israeli group involved in disrupting Gaza aid deliveries as Washington seeks to avert a deepening humanitarian crisis and tamp down risks of inflaming the conflict.

• Reasons behind the action: The U.S. targeted Tzav 9, a group with ties to Israeli settlers and army reservists, after a series of sabotage efforts on aid going to Gaza. The group said its actions were intended to ensure humanitarian aid doesn’t end up in Hamas’s hands. The latest sanctions are one of several that the U.S. and the E.U. have leveled against violent Israeli settlers and groups since the start of the war between Israel and Hamas in October.
   
• The effect: The sanctions will have little practical effect outside freezing any assets the group might have had within U.S. jurisdiction and barring any U.S. transactions with it. Rather, the action is a stern symbolic statement of disapproval by Washington intended to spur the Israeli government to rein in such violence, following mounting U.S. frustration with Israel’s approach to the war in Gaza.
   
• Background: The Biden administration in February issued an executive order authorizing sanctions against settlers involved in West Bank attacks amid concerns that the Israeli government hasn’t done enough to curb the violence. The U.S. said the punitive action targeting entities within one of its closest allies—an unusual move for Washington—was deemed necessary to avoid a wider regional conflagration.

Nigeria drops tax charges against detained Binance compliance executive.

Nigerian authorities have dropped some of the charges against two Binance executives, including a compliance executive of the cryptocurrency exchange who has been detained in the country since February.

Nigeria’s Federal Inland Revenue Service filed amended charges Friday, dropping tax evasion charges against Tigran Gambaryan, the firm’s head of financial crime compliance, and Nadeem Anjarwalla, its regional manager for Africa, a spokesman for Binance said Friday. Binance itself is now the only defendant in the tax evasion case, a spokesman for Gambaryan’s family said.

Binance and the two executives still face charges of money laundering and of providing financial services without a license from Nigeria’s Economic and Financial Crimes Commission.

U.K. follows U.S. moves with new Russia-focused sanctions package

The U.K. has imposed its own package of new sanctions intended to thwart Russia’s efforts to fuel its war in Ukraine, including sanctions on Russia’s so-called “shadow fleet” of ships, as part of coordinated actions ahead of the Group of Seven meeting in Italy this week.

The sanctions announced by the U.K. government on Thursday include ones targeting the Moscow Stock Exchange and other Russian financial institutions; suppliers of munitions, machine tools, microelectronics and logistics to Russia’s military; and the U.K.’s first sanctions on vessels it says Russia uses to circumvent sanctions on its oil trade. The move follows a new set of economic restrictions imposed by the U.S. Treasury Department on Wednesday.

• Tesla shareholders’ backing of Elon Musk’s multibillion-dollar compensation package helps clarify his immediate future atop the world’s most valuable automaker. Now the electric-car company has to figure out how to pay him.
   
• Regulators once accused Elon Musk of fraud over a possible buyout that never happened. Now they are positioned to make similar allegations over one that did.
   
• Boeing is investigating a quality problem with its undelivered 787 Dreamliner planes after discovering that some fasteners were incorrectly installed on the jets’ bodies, adding to the aircraft maker’s woes amid heightened scrutiny from U.S. regulators.
   
• The Justice Department last month accused Boeing of violating a pre-existing corporate probation for a fraud conspiracy charge related to crashes in 2018 and 2019, after a panel of another Boeing plane flew off midflight. Prosecutors now have to decide if they should pursue the charge against Boeing.
   
• A bankruptcy judge approved the liquidation of the personal assets of Alex Jones on Friday, with proceeds expected to go toward the families of the Sandy Hook Elementary School shooting victims, WSJ Pro Bankruptcy reports (subscription required).
   
• Stellantis, the carmaker behind brands like Jeep and Fiat, decided to shift production of some electric vehicles away from China due to upcoming European Union tariffs on Chinese-made EVs.
   
• UBS sought to draw a line under one of the damaging scandals that helped topple Credit Suisse, offering to repay much of the $2.5 billion still stuck in investment funds tied to failed lender Greensill Capital.

Wells Fargo bet on a flashy rent credit card. It is costing the bank dearly.

When Charlie Scharf took over as CEO of Wells Fargo, one of his priorities was to expand the bank’s credit-card business. Now, a flashy partnership with a startup is complicating a high-profile part of that strategy.

In 2022, Wells launched a credit card with Bilt Technologies. The co-branded card came with a rare perk: Users can pay for rent with it without incurring fees from their landlords while also earning rewards points. More than one million accounts were activated in the first 18 months, many by young adults.

But Wells is losing as much as $10 million every month on the program as savvy customers flock to the card, according to current and former employees.

Russia’s devastating attacks on Ukraine’s grid spark fears of brutal winter.

Ukraine is imposing blackouts, launching hasty repairs and hunting for spare parts after a Russian bombing campaign targeting power infrastructure in recent months slashed the country’s electricity production by half.

The impact. Ukrainian officials say Russia, reviving and expanding a tactic used earlier in the war, is seeking to spark a humanitarian crisis as part of an effort to break Ukrainians’ will to fight and force a capitulation.

• Ukraine’s Global Diplomatic Flurry Fails to Outflank Russia

• Crew members of a Greek-owned coal vessel were forced to abandon ship after Yemen’s Houthi rebels launched an attack using a remote-controlled sea drone, according to the U.S. military.
   
• China’s broken housing market isn’t responding to some of the country’s boldest stimulus measures to date—at least not yet.
   
• Insurance costs are exploding for condo associations across the U.S., raising the cost of homeownership and making it harder for some owners to sell their units.
   
• A push to save endangered fish has cut supplies to America’s produce epicenter in California, stirring resentment.
   
• “The future of extreme climate events has arrived” as weeks of rain in Brazil have killed 175 people, uprooted 650,000 and made wealthy towns uninhabitable.

• The 21% U.S. corporate tax rate is the biggest single variable in the sprawling 2025 tax debate, and the two parties are trying to turn that dial in opposite directions with major consequences for companies’ profits and federal revenue.
   
• Starboard Value has a roughly $500 million stake in Autodesk and is pushing for changes at the design-software maker, according to people familiar with the matter.
   
• A food startup backed by basketball stars and private-equity executives has tumbled into a mire of legal accusations from an investor and senior managers that remain pending before a Dallas court.
   
• Tesla’s reincorporation in Texas is about much more than saving the electric-car juggernaut $250,000 a year in state fees. It is an attempt by Elon Musk to loosen Delaware’s grip on American corporations.
   
• The cause of the River Thames’ foul water is rooted in London’s Victorian-era sewers and the failure of one of the world’s largest experiments in private-sector water investment.

Follow us on X at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

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