Good morning. The director of the U.K.’s Serious Fraud Office touted some of the agency’s victories in the last annual report ahead of her departure in September, a tenure that was colored by a period of tumult that led to an independent review of the agency this past year.

• Victories: Lisa Osofsky pointed to wins such as securing the U.K.’s largest penalty ever for a corporate criminal conviction, against commodities trader Glencore, and recovering £95.2 million, the equivalent of about $124.8 million, in funds linked to criminal activity.
   
• Challenges: But Osofsky was upfront about the many challenges facing the economic crime fighting agency, including operational changes following the collapse of its investigation into Monaco-based consulting firm Unaoil, and troubles around hiring and staff retention.
   
• New top cop: Osofsky will be handing off those challenges to a new director, former London police officer Nick Ephgrave, who is set to take charge of the SFO in September, when Osofsky’s five-year term ends.

Iranian oil is stuck off coast of Texas, U.S. firms won’t touch it.

U.S. federal prosecutors can’t auction off 800,000 barrels of seized Iranian oil sitting in a Greek tanker off the coast of Texas because U.S. companies are reluctant to unload it, according to people familiar with the matter.

Prosecutors commandeered the Suez Rajan tanker carrying the oil earlier this year after charging its Greek owner with sanctions evasion, and directing the ship into the muddy-green waters 65 miles off Galveston’s coast. The U.S. Coast Guard cleared the tanker for unloading, but the companies that manage those transfers—known as lightering—say they are too worried about Iranian reprisal to handle the captured oil.

• The Biden administration added two new foreign technology companies to its export prohibition list, accusing the firms of selling cyber intrusion tools that pose a global threat to digital privacy and security.
   
• Victims of opioid addiction are objecting to the U.S. government’s request to send Purdue Pharma’s pending bankruptcy plan for review before the Supreme Court, which would delay long-awaited disbursements under a $6 billion settlement for addiction victims and state governments.
   
• Taylor Swift is tapping a high-powered litigator to be the general counsel of 13 Management, her closely guarded Nashville-based company, according to a person familiar with the matter.

The world bakes under extreme heat.

Deadly heat waves are upending daily life in large parts of the U.S., Europe and Asia, as warming oceans and unprecedented humidity fuel one of Earth’s hottest summers on record.

Meteorologists say last month was the hottest June on record and 2023 could be the hottest year ever if July’s record temperatures continue, straining businesses and threatening power grids.

• Extreme Heat Sends Comatose Patients to Hospitals Around U.S.
• China Sets Heat Record as John Kerry Arrives to Discuss Climate

Big banks don’t need to drop clients amid climate risk push, regulators say.

Top U.S. financial regulators said they don’t expect big banks to stop serving any clients or sectors as the institutions take on climate-related risk.

Regulatory oversight roles won’t be leveraged to push banks away from businesses or sectors, officials for the Office of Comptroller of the Currency, Federal Deposit Insurance Corp. and Federal Reserve Board of Governors testified Tuesday at a hearing before a House subcommittee. Lawmakers have in recent months wrangled over whether the oil-and-gas industry should be allowed access to banking services.

• The Biden administration is trying to head off trouble with China over a U.S. visit by Taiwan’s vice president, with an official saying the trip will be low key and urging Beijing not to use it to raise tensions.
   
• A resilient U.S. economy hasn’t done much to shake the uncertainty that has kept corporate executives from taking their companies public and pursuing deals.
   
• Veteran economist and banker Pan Gongsheng is set to take the reins at the People’s Bank of China as it confronts an urgent challenge: whether and how to defend the Chinese yuan. Economists and some Beijing officials worry the currency's decline could turn into a rout, destabilizing China’s financial system.
   
• The head of the U.K.’s Secret Intelligence Service said Russian President Vladimir Putin is under pressure as fissures in his inner circle appear and his forces have little chance of regaining momentum in Ukraine.

• Lockheed Martin is projecting higher sales as the war in Ukraine boosts demand for missiles.
   
• Microsoft will release a new version of Meta Platforms’ artificial-intelligence language model in a partnership between the tech giants that will make the software available to companies for the first time.
   
• There’s a truce in the “Taco Tuesday” trademark wars.
   
• Federal prosecutors told former President Donald Trump’s legal team that he is a target of their investigation into efforts to undo his loss in the 2020 election, a sign that he is likely to be indicted in the case.

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