Trump retreats on demand for dollars as Iran deal collapses, chaos deepens

The Trump administration is facing simultaneous crises on multiple fronts, including a retreat from a proposed $1.776 billion draw on the Treasury, the collapse of negotiations with Iran, and a severe hemorrhage of professionals needed to operate the federal government.


Iran announced Monday it is cutting off message exchanges with the United States through mediators and threatening to block the Strait of Hormuz.

Oil prices already at $99 a barrel, are expected to climb significantly higher.

Republican strategists expressed alarm that the situation could lead to major losses in the midterm elections despite efforts to cheat by redrawing congressional district boundaries.

One analyst described a potential “wipeout,” with Democrats possibly gaining eight Senate seats.

At least 2,000 U.S. diplomats have been forced out since Trump took office. The people now negotiating the Iran peace deal are Jared Kushner and a real estate lawyer with no diplomatic experience.

According to reports, Iran is breaking off talks to end the war following U.S. and Israeli strikes.

An Iranian official said negotiations were suspended because of Israel’s military attacks in Lebanon and U.S. strikes near the Persian Gulf.

President Donald Trump insisted on social media that talks are continuing, but the Iranian official said last-minute changes to deal terms by U.S. negotiators had frustrated progress.

The U.S. military struck Iranian radar and drone sites near the Strait of Hormuz over the weekend. Iran retaliated Monday with missile fire into Kuwait. No casualties were reported. Iran’s state-affiliated Tasnim News Agency reported that Tehran is suspending talks and preparing to fully close the strait.

Separately, the Justice Department is experiencing a significant staffing shortage.

Since Trump returned to power in 2025, thousands of lawyers and career officials have left the DOJ through firings, buyouts and resignations.

Across all federal agencies, an estimated 10,000 lawyers have departed. The Civil Rights Division has lost 75% of its attorneys. The Appellate Section has lost over 40% of its staff, and the Office of Immigration Litigation has lost roughly one-third of its lawyers.

The immigration court system now faces a backlog of more than 3.3 million cases.

In multiple civil cases, DOJ attorneys have requested extensions due to lack of available staff.

Many departing attorneys have cited political pressure to shift away from civil rights enforcement toward religious liberty and Second Amendment cases.

Others simply refuse to participate in the law-breaking that defines the Trump administration.

Other federal agencies have lost thousands of professional staff, including scientists, accountability experts, and more.

Officials said the administration is coming off one of the worst weekends of Trump’s second term, with no signs that the pace of crises is slowing.


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