The Latest: Appeals court rules Trump policy illegally banned transgender troops from military

A Trump administration policy illegally banned transgender troops from military service, a divided panel of federal appeal court judges ruled on Monday.

The majority opinion by a three-judge panel from the U.S. Court of Appeals for the District of Columbia circuit upholds a March 2025 ruling by U.S. District Judge Ana Reyes in Washington, D.C. Reyes concluded that President Donald Trump's executive order to exclude transgender troops from military service likely violates their constitutional rights.

Meanwhile, the energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government, causing interest rates to climb in ways that are worsening affordability pressures, hampering economic growth and creating a new risk for Republicans in November's midterm elections.

Also, the United States said Monday that it bombed radar and drone sites in Iran after Tehran shot down an American drone over the weekend. Iran then said it launched a strike of its own, and Kuwait reported incoming fire.

The nominal ceasefire between Iran and the U.S. has been repeatedly tested with such back-and-forth attacks, even as officials from both countries try to negotiate an end to the war.

Here's the latest:

The State Department plans to drastically slash the number of U.S. embassies and consulates in Africa that can process visas for foreigners seeking to come to the United States.

The almost 50 U.S. embassies and consulates that are processing visa applications will be reduced to 20 in the coming weeks, according to three U.S. officials and an internal memo obtained by The Associated Press. There is not yet a set date for the change, but it is expected in June, according to the officials, who were not authorized to comment to the media and spoke on condition of anonymity.

The move is part of the Trump administration's effort to crack down on issuing both immigrant and non-immigrant visas as part of its broader aim to limit immigration to the U.S. and clamp down on those who travel on temporary visas but then overstay them. The administration also has scaled back personnel at embassies and consulates around the world.

President Donald Trump said Monday that Israel and Hezbollah have agreed to dial back fighting after he held talks with Israeli Prime Minister Benjamin Netanyahu and communicated with the Lebanon-militant group through mediators.

Trump announced the development in a social media post following his call with Netanyahu.

A Trump administration policy illegally banned transgender troops from military service, a divided panel of federal appeal court judges ruled on Monday.

The majority opinion by a three-judge panel from the U.S. Court of Appeals for the District of Columbia circuit upholds a March 2025 ruling by U.S. District Judge Ana Reyes in Washington, D.C. Reyes concluded that President Donald Trump's executive order to exclude transgender troops from military service likely violates their constitutional rights.

The administration appealed after Reyes issued a preliminary injunction requested by attorneys for six transgender people who are active-duty service members and two others seeking to join the military. The appeal court's majority decided that the injunction should be narrowed to the plaintiffs currently serving in the military but not those seeking to join.

Tina Peters, the former clerk convicted of participating in a scheme to chase election conspiracy theories promulgated by President Trump, was released from prison Monday after the president successfully pressured Colorado's Democratic governor into commuting her sentence.

Peters' release was confirmed by the Colorado Department of Corrections. The state agency said it would have no more information about the 70-year-old inmate. Her sentence was shortened by Colorado Gov. Jared Polis last month after Trump waged a lengthy pressure campaign against the governor and his state.

Former Colorado elections clerk and conspiracy theorist Tina Peters is scheduled to be released from prison Monday after serving less than a quarter of a nine-year sentence for her role in a scheme to copy her county's election system.

Colorado Gov. Jared Polis, a Democrat, commuted Peters' sentence last month following pressure from President Trump.

The Colorado Department of Corrections would not confirm the time of Peters' release, and a representative for her attorney said Peters would not speak to the media when she's freed.

Peters was the first local election official to be charged with breaching security after the 2020 election. She snuck in an outside computer expert affiliated with My Pillow Chief Executive Mike Lindell - who himself denied that Trump lost the White House in 2020 - and the person copied the county's Dominion Voting Systems computer server as it was updated in 2021.

Oil prices are rising following the latest fighting to threaten the U.S.-Iran ceasefire, but Wall Street isn't very worried.

The S&P 500 slipped 0.1% early Monday, falling a bit below the record it set last week. The Dow Jones Industrial Average fell 166 points, and the Nasdaq composite was little changed.

Brent crude climbed 4.7%, and Treasury yields moved higher in the bond market. Tech stocks held up better than the rest of the market.

Science Applications International Corp. soared after becoming the latest U.S. company to report bigger profit for the latest quarter than analysts expected.

A standoff between the White House and the Senate remains unresolved after Republican senators defiantly left town 10 days ago without passing legislation to fund President Trump's immigration enforcement agencies.

Senate Republicans who are returning to Washington on Monday say they won't have the votes to pass the Homeland Security spending bill until the White House works with them to place parameters on the new $1.776 billion settlement fund designed to compensate Trump's allies. But Trump has shown little interest in doing so, even after a judge temporarily halted any payouts.

It's unclear how they'll settle the dispute.

Former Federal Reserve Chair Jerome Powell used one of his first major public appearances since leaving office to defend independent institutions while accepting an award Sunday honoring his efforts to preserve the central bank's independence.

Speaking at the John F. Kennedy Presidential Library overlooking Boston Harbor, Powell called universities, courts, Congress and the central bank "the foundation and the embodiment of our democracy" and argued that the Fed's independence was a "priceless asset" that must be protected.

It was one of his most direct defenses of Fed independence, warning that a single administration's decision to remove bank officials over policy differences would open the way for future elected officials to follow suit, ultimately undermining the credibility that the Fed has spent decades building.

Powell, who frequently clashed with Trump during his eight years as chair, stepped down as his term expired in May. He was succeeded by Kevin Warsh, whom Trump selected to lead the central bank.

Trump on Saturday branded the federal judge who blocked his renovation of the Kennedy Center as "an anti Trump Hater" and predicted that the nation's premier performing arts center, which he wanted to shutter for a two-year overhaul, will "soon be closed, probably never to open again."

In a lengthy post on his Truth Social platform, Trump fumed about the Friday decision from U.S. District Judge Christopher Cooper, who also ordered Trump's name removed from the center. Clearly angered by his latest legal setback, he said it was "impossible for me to be treated fairly," tying Cooper's ruling to earlier losses, including the Supreme Court's rejection in February of his sweeping tariffs.

His post aimed to make the case for the project even as he says he's giving up on it. Hours after Cooper's decision, Trump said he was backing away from the renovations and making arrangements to relinquish control to Congress of what, until the Republican president's second term, had been known as the John F. Kennedy Center for the Performing Arts.

An upcoming celebration of America's 250th anniversary, "The Great American State Fair," recently had several musical guests back out partly over the event's ties to President Trump. Now, Trump himself is slated to headline the festivities, the organizers said Saturday.

"I understand Artists are getting 'the yips' having to do with their performance," Trump posted to his social media platform Truth Social Saturday, adding that he was thinking of bringing "the man who some say is the Greatest President in History (THE GOAT!), DONALD J. TRUMP, to take the place of these highly paid, Third Rate 'Artists.'"

The group organizing the June fair on Washington's National Mall, Freedom 250, confirmed the billing in a statement, writing, "We are excited to announce that President Trump will personally kick off this historic celebration on Wednesday, June 24."

Freedom 250 is billed as nonpartisan, but was launched last year by Trump and is led by a former State Department appointee from Trump's first term. Several artists, including Bret Michaels, the Commodores and Martina McBride dropped out last week.

The United States said Monday that it bombed radar and drone sites in Iran after Tehran shot down an American drone over the weekend. Iran then said it launched a strike of its own, and Kuwait reported incoming fire.

The nominal ceasefire between Iran and the U.S. has been repeatedly tested with such back-and-forth attacks, even as officials from both countries try to negotiate an end to the war. It's not clear how close they are to a deal - and there is always the risk that an attack could derail those talks.

In the meantime, Iran has maintained its chokehold on the Strait of Hormuz, disrupting global energy supplies and driving up the price of fuel around the world, with far-reaching consequences.

Fighting has also escalated between Israel and the Lebanese militant group Hezbollah, despite their nominal ceasefire. Israel has extended its occupation deep into Lebanon, and Hezbollah - which joined the war in support of its main backer, Iran - continues to launch drones into Israel.

The world is getting more uptight about lending money to President Donald Trump's government - causing interest rates to climb in ways that are worsening affordability pressures, hampering economic growth and creating a new risk for Republicans in November's midterm elections.

The energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government. Interest rates on a 10-year U.S. Treasury note are topping 4.44%, up from 3.95% before the war started at the end of February. Average mortgage rates have climbed to their highest levels in nine months, while auto sales are slumping.

The challenge is global in scale, as interest rates have risen for multiple countries as the world has been adjusting to the prospect of higher inflation, mounting questions about the sustainability of government debt and a dramatic surge in investment in artificial intelligence.