Morning Brief: Trump Announces Israel’s Agreement to 60-Day Gaza Ceasefire, FBI Arrests Two Chinese Nationals for Espionage

Good day! Welcome to Tuesday, July 2, 2025. Today’s headlines are all about power plays and shifting alliances. Trump pushes Israel into a 60-day Gaza ceasefire while cutting Ukraine’s weapons lifeline. The FBI rolls up a Chinese spy ring targeting the Navy, Lockheed locks down a multibillion-dollar missile defense deal, and Russia opens new fronts in Ukraine. Meanwhile, North Korea shows off its splashy new beach resort as France closes the door on decades of military presence in Senegal. Here’s your essential intel to start the day sharp.

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Trump Announces Israel’s Agreement to 60-Day Gaza Ceasefire, Pressures Hamas to Accept

US President Donald Trump announced Tuesday that Israel has agreed to the terms of a proposed 60-day ceasefire in Gaza, urging Hamas to accept the deal or face worsening conditions.

The move comes ahead of Trump’s scheduled meeting with Israeli Prime Minister Benjamin Netanyahu at the White House on Monday.

Trump confirmed the development following high-level talks between US representatives and Israeli officials in Washington. He stated that Qatar and Egypt would deliver the final ceasefire proposal to Hamas.

“It will not get better — it will only get worse,” Trump warned.

The ceasefire aims to halt nearly 21 months of warfare that has killed over 56,000 in Gaza, according to the territory’s health ministry.

US officials assess that Hamas has suffered major operational setbacks, with its command structure largely degraded. Iran, the group’s key backer, was also severely weakened by a recent 12-day joint Israeli-US strike on its nuclear infrastructure.

Netanyahu is expected to discuss the ceasefire, Iran, and a trade deal during his visit. Israeli Minister Ron Dermer was already in Washington, meeting with Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff.

Ceasefire negotiations remain stalled over core demands. Hamas insists on a full Israeli withdrawal from Gaza and a permanent end to the war in exchange for releasing all hostages. Israel rejects those terms, offering to end the war only if Hamas surrenders, disarms, and leaves Gaza — conditions the group refuses.

US President Donald Trump urged Iran-backed Hamas militants to agree to what he called a ‘final proposal’ for a 60-day ceasefire with Israel in Gaza that will be delivered by mediating officials from Qatar and Egypt https://t.co/tGx6BTJYQY pic.twitter.com/uvdqv1m0un

— Reuters (@Reuters) July 2, 2025

Meanwhile, the humanitarian crisis in Gaza worsens. Over 150 aid groups condemned the US- and Israeli-backed aid distribution system, citing violence and the recent deaths of Palestinians seeking food. Israeli airstrikes killed at least 37 in Khan Younis, while missile attacks from Yemen prompted new threats from Defense Minister Israel Katz, who warned that Yemen could face retaliation similar to Tehran’s.

Trump has prioritized ceasefire efforts in Gaza and cooling regional tensions, signaling a broader recalibration of US foreign policy as he balances diplomacy with military deterrence.

US Halts Key Weapons Shipments to Ukraine

The White House confirmed Tuesday it has paused several critical weapons deliveries to Ukraine, including air defense munitions, Patriot system missiles, precision artillery, and Hellfire missiles.

The move follows a Department of Defense review and signals a shift in US priorities under President Donald Trump, who is pushing for renewed Russia-Ukraine peace talks.

White House Deputy Press Secretary Anna Kelly told reporters that the decision reflects a focus on “America’s interests,” noting that Pentagon stockpiles of some promised munitions had become too low to sustain foreign commitments.

❗️The 🇺🇸US has left 🇺🇦Ukraine without Patriot SAM missiles and other critical weapons, – NBC.

The White House confirmed the halt in deliveries. According to the publication, the transfer of the following types of weapons was stopped:
▪️dozens of Patriot interceptor missiles;… pic.twitter.com/ySM1jrGZwv

— 🪖MilitaryNewsUA🇺🇦 (@front_ukrainian) July 2, 2025

The halt comes as Ukraine faces intensified Russian missile and drone assaults, further straining its air defenses.

Ukrainian President Volodymyr Zelenskyy, who met with Trump last week at the NATO summit in the Netherlands, received a non-committal response on acquiring more Patriot systems.

“We’re going to see if we can make some available,” Trump said, calling them “very hard to get.”

Meanwhile, both sides escalated attacks. A Russian drone strike hit Ukraine’s Kharkiv region overnight, killing one, while Ukrainian drones killed three in Izhevsk in one of Kyiv’s deepest strikes inside Russia to date.

Ukraine’s defense spending hit $64.7 billion in 2024, the highest GDP share globally, but Russia continues to outgun Kyiv. As US support shifts, Western unity behind Ukraine appears to be weakening, with Trump’s administration prioritizing de-escalation efforts in Gaza and with Iran.

Lockheed Martin Secures $2.97B Contract to Upgrade Aegis Missile Defense System

The Missile Defense Agency has awarded Lockheed Martin a sole-source contract worth up to $2.97 billion to modernize the Aegis ballistic missile defense combat system over the next decade, the Pentagon announced Tuesday.

Lockheed’s Rotary and Mission Systems division in Moorestown, New Jersey, will handle software upgrades for the Aegis system, which is deployed on US Navy guided-missile destroyers and cruisers.

The contract also covers Aegis Ashore systems in Poland and Romania, the land-based Aegis system in Guam, and development related to the Glide Phase Interceptor, a hypersonic missile defense effort.

The 10-year Combat System Engineering Agent (CSEA) agreement includes work on advanced fire control capabilities across all operational phases—planning, detection, engagement, and assessment. Lockheed will also enhance defense performance against evolving threats, improve single-ship and multi-tiered engagement capabilities, and integrate upgrades in Tactical Data Link systems.

Lockheed has led Aegis upgrades since 1995. It retained the prime role after winning a competitive bid against Raytheon and Boeing in 2013, the only major competition for the Aegis program in decades.

FBI Arrests Two Chinese Nationals for Espionage, Alleged Recruitment of US Navy Personnel

The Federal Bureau of Investigation (FBI) arrested two Chinese nationals, Yuance Chen, 38, and Liren Lai, 39, on Friday for allegedly acting as agents of China’s Ministry of State Security and attempting to recruit US Navy personnel as intelligence assets.

The Justice Department announced the arrests Tuesday, revealing that the pair face espionage-related charges carrying up to 10 years in prison if convicted.

Chen, a US legal permanent resident living in Oregon, and Lai, who entered the US on a tourist visa in April, are accused of conducting multiple intelligence-gathering operations on US soil. The criminal complaint states they paid for classified national security information and targeted Navy members for recruitment.

“The Chinese Communist Party thought they were getting away with their scheme to operate on US soil, utilizing spy craft, like dead drops, to pay their sources. This case was a complex, coordinated effort and is an example of outstanding counterintelligence work done by FBI San Francisco, Portland, Houston, San Diego, and the Counterintelligence Division,” said FBI Director Kash Patel in a press release statement. “The FBI will continue to vigilantly defend the homeland from China’s pervasive attempts to infiltrate our borders.”

Lai reportedly recruited Chen to work for Chinese intelligence in 2021. Attorney General Pamela Bondi called the case evidence of China’s “sustained and aggressive effort to infiltrate our military and undermine our national security from within.”

US Air Force Cancels E-7 Wedgetail Program in Favor of Space-Based Surveillance

The US Air Force has officially canceled the E-7 Wedgetail Sentry Airborne Early Warning and Control System (AEW&CS) program as part of the fiscal year 2026 defense budget, shifting its focus toward space-based sensing systems.

The move aligns with the Trump administration’s growing preference for orbital surveillance platforms over airborne alternatives.

Putting the ‘tail’ in Wedgetail!

Watch the first @USAirForce E-7A Wedgetail Rapid Prototype get its vertical fin and horizontal stabilizers. E-7 provides long-range battle management capability by detecting threats early to coordinate missions in real time. pic.twitter.com/fNJ83ClwDf

— Boeing Defense (@BoeingDefense) May 20, 2025

Originally chosen in 2022 to replace the aging E-3 Sentry fleet by 2027, the E-7 was expected to reach 26 units by 2032. The platform, based on Boeing’s 737, offers advanced tracking capabilities with Northrop’s MESA radar and has been in service with allied forces since 2012.

Officials cited major cost overruns, rising from $588 million to $724 million per aircraft, along with survivability issues in contested environments as key reasons for the program’s termination.

The Pentagon will instead boost investment in space-based alternatives and additional E-2D Hawkeye aircraft.

“The department is canceling the E-7 Wedgetail program due to significant delays with cost increases from $588 million to $724 million per aircraft and survivability concerns in a contested environment while investing in alternate solutions, including space-based capabilities and adding additional E-2D aircraft,” a senior defense official said in a Pentagon media briefing.

Despite its cancellation, the E-7 remains in demand globally, with NATO planning to adopt the platform by 2028.

France Hands Over Military Base to Senegal as Troop Withdrawal Continues

France transferred control of a key military communications base in Rufisque, near Dakar, to Senegal on Tuesday, marking another step in its broader troop withdrawal from the West African nation.

The base, operational since 1960, had supported communications along the southern Atlantic coast.

The move follows Senegalese President Bassirou Dioumaye Faye’s directive last year requiring France to close all military bases in the country by 2025. The handover process began in March.

Faye, elected in 2024, has shifted Senegal’s stance on France, pledging to treat it as a regular foreign partner rather than a privileged ally. As part of the transition, all Senegalese staff employed by French forces are scheduled for dismissal starting July 1.

Azerbaijan Detains Kremlin-Linked Journalists Amid Rising Tensions with Russia

Azerbaijan detained seven individuals tied to the Kremlin-funded media outlet Sputnik Azerbaijan following a police raid Monday on its Baku office, marking a significant escalation in tensions between Baku and Moscow.

The Interior Ministry said the outlet continued operations through “illegal financing” after losing accreditation in February.

Among those arrested were Sputnik Azerbaijan’s editor-in-chief Yevgeny Belousov and editorial board director Igor Kartavykh. Both were charged with conspiracy to commit fraud, money laundering, and running an illegal enterprise. They were ordered held for at least four months in pre-trial detention.

Russia’s state media agency Rossiya Segodnya and the Kremlin condemned the arrests, calling them unjustified and damaging to bilateral relations. Russian diplomats have not been granted access to the detainees.

🚨🇷🇺🇦🇿 Russia arrests dozens of Azerbaijani nationals in retaliation for Azerbaijan detaining Russian journalists, including Sputnik’s chief, on espionage charges. pic.twitter.com/wq7nZhPcjd

— Terror Alarm (@Terror_Alarm) July 1, 2025

The crackdown follows worsening relations fueled by the deaths of two Azerbaijani brothers in Russian police custody last week in Yekaterinburg. Azerbaijan launched a criminal investigation, accusing Russian officials of beating the men and causing their deaths through physical abuse. The Prosecutor General’s Office cited “post-traumatic shock” as the cause.

In protest, Baku canceled official visits to and from Moscow, suspended cultural exchanges, and publicly condemned Russia for “extrajudicial killings” of Azerbaijanis. The incident adds to a string of diplomatic setbacks since the December 2023 crash of an Azerbaijani airliner over Russian airspace, an event President Ilham Aliyev blamed on Russian military activity and alleged cover-up attempts by the Kremlin.

Azerbaijan has since moved closer to Ukraine, with diplomatic exchanges intensifying. Ukrainian President Volodymyr Zelenskyy expressed condolences to Aliyev, while Azerbaijani officials continue to distance themselves from Moscow’s influence.

Russia Launches Two-Front Offensive in Ukraine as Ceasefire Calculations Begin

Russia has intensified its military campaign in Ukraine, launching major offensives on two fronts in a bid to secure territorial gains before autumn. Kremlin forces are pressing into the strategic city of Pokrovsk in eastern Donetsk and simultaneously assaulting Ukraine’s northeast Sumy region, forcing Kyiv to split its reserve forces.

Capturing Pokrovsk would give Moscow control over key logistics routes and bring it closer to taking all of Donetsk. Fighting has now reached the border of Dnipropetrovsk, potentially opening a sixth Ukrainian region to the conflict, an outcome Ukrainian commanders say would boost Russia’s leverage in future negotiations.

To prevent reinforcements from reaching Pokrovsk, Ukrainian forces have ramped up operations in Sumy, even launching cross-border attacks into Russia’s Kursk region. The aim is to tie down as many as 60,000 battle-hardened Russian troops.

Ukraine’s top commander, Gen. Oleksandr Syrskyi, said about 10,000 Russian troops are now locked in the Glushkovsky district, unable to redeploy east.

2/ Ukrainian forces advanced near Pokrovsk. Russian forces advanced near Toretsk and Novopavlivka.

Russian Offensive Campaign Assessment, July 1, 2025: https://t.co/m4AK2dBKk2 pic.twitter.com/FFgAhE76AI

— Institute for the Study of War (@TheStudyofWar) July 1, 2025

While Ukraine’s strategy has delayed Russian advances, it comes at a high cost. Field commanders report severe manpower and supply shortages, with troops often remaining in combat zones for weeks. Russian forces have advanced up to seven kilometers (four miles) into Sumy and are methodically encircling Pokrovsk.

Ukrainian commanders warn that Russia is nearing its objective of opening a political path toward negotiations from a position of strength.

North Korea Opens Massive Beach Resort to Domestic Visitors Amid Tight Border Controls

North Korea officially opened its largest-ever beach resort, the Wonsan-Kalma coastal tourist zone, to domestic visitors this week, according to state media reports Wednesday.

The sprawling complex, capable of accommodating up to 20,000 people, marks a key effort by Kim Jong Un to revive the country’s battered economy through tourism.

Photos released by the Korean Central News Agency (KCNA) showed North Koreans swimming, enjoying water park slides, and relaxing under parasols. KCNA described the opening as a milestone in “our-style tourism culture,” echoing the regime’s typical propaganda tone.

Kim, who attended the resort’s inauguration last week, hailed the project as one of the government’s top achievements of the year and a key step in developing North Korea’s tourism sector.

North Korea opens massive beach resort, eyes Russian tourists
➡️ https://t.co/hpVPO74vSJ pic.twitter.com/bDVenjAJK3

— FRANCE 24 (@FRANCE24) July 2, 2025

Despite the grand opening, prospects for the resort remain uncertain. North Korea has not fully reopened to foreign tourists since its COVID-19 lockdowns, and visits by Western travelers are highly unlikely. Chinese group tours—which accounted for over 90% of pre-pandemic tourism—have yet to resume.

A limited number of Russian tourists have been allowed into the country since February 2024 amid growing military ties between Pyongyang and Moscow. Fewer than 900 Russian tourists visited last year, far too few to meaningfully revive the sector. However, Russia’s Primorsky region announced that the first tourist group to the Wonsan-Kalma resort will depart on July 7 for an eight-day tour, including a stop in Pyongyang.

Sources: News Agencies