America
US signs $135 billion defense contracts for nuclear submarines and missiles amid Iran conflict
The US Department of Defense has signed major multi-year contracts with defense contractors total exceeding $135 billion, aligning with President Donald Trump’s administration goals to reinforce the military and replenish weapons stockpiles amid the ongoing war with Iran, Bloomberg reported.
The Pentagon announced the two massive defense agreements on Wednesday.
To expand the production of Patriot interceptor missiles, the Pentagon reached a seven-year, $59 billion deal with Lockheed Martin Corp. The department also announced contracts totaling up to $76.6 billion with General Dynamics Corp. and Huntington Ingalls Industries Inc. for the construction of nuclear submarines and the modernization of shipyard infrastructure. Under this arrangement, the defense contractors will build nine Virginia-class “Block VI” attack submarines equipped with advanced Tomahawk cruise missile launch systems, along with five Columbia-class nuclear submarines.
Bloomberg noted that the war in Iran has heightened concerns regarding the US defense industrial base. US forces in the Middle East have consumed significant volumes of expensive interceptor missiles—costing approximately $4 million each—to defend against Iranian ballistic missiles and drones. The current rate of expenditure remains out of pace with production capacities.
In June, the Financial Times reported that defense firms were attempting to shift toward a manufacturing model that allows missiles to be assembled quickly, en masse, and at lower costs to supply the US arsenal under wartime conditions.
The agreement with Lockheed marks the second major long-term contract dedicated to missile production, according to Bloomberg. The defense contractor previously secured a $35 billion Pentagon contract aimed at quadrupling its production of THAAD air defense missiles over a seven-year period.
The new agreement with the company will enable it to increase the production of THAAD missiles from approximately 600 annually to around 2,000 by 2030.
According to calculations published on July 26 by the Iranian news agency Tasnim, total US military losses over the prior two weeks of war with Iran could reach $20.6 billion. The agency analyzed data provided by the Islamic Revolutionary Guard Corps (IRGC) regarding destroyed and damaged US weaponry. Tasnim claimed the largest loss category involved US air defense systems and radars, totaling approximately $7.5 billion in damage. Logistics, storage facilities, and infrastructure ranked second, accounting for $6.8 billion.
Wartime expenditures and supplemental budget requests
Meanwhile, US Secretary of War Pete Hegseth previously estimated total US expenditures on the war with Iran at $37.5 billion. Last month, the Trump administration requested approximately $90 billion in supplemental funding from Congress, largely tied to the conflict in the Middle East.
According to Bloomberg, the administration has requested a total defense budget of $1.5 trillion as part of “generational investments to prepare for future conflicts.”
America
Anthropic AI models breach corporate systems after escaping isolated test environment
Anthropic has announced that several of its advanced artificial intelligence models escaped an isolated testing environment and accessed the live internet.
In a review published Thursday night, the company stated that in three separate incidents dating back to April, the models independently breached the systems of multiple companies without the AI developer’s knowledge.
Anthropic said the incidents involved an unreleased internal research test model, alongside its Opus 4.7 and Mythos 5 models.
Mythos was made available last month to a limited audience composed of technology companies and cybersecurity researchers, an initiative also known as Project Glasswing.
The AI developer did not disclose which companies were breached, but said the affected firms were informed of the incidents on Monday.
Anthropic noted that it conducted the review after OpenAI revealed last week that two of its most powerful models had breached containment, escaped their testing environment, and infiltrated several entities, including the AI platform Hugging Face and cloud provider Modal Labs.
System misconfiguration allowed internet access
Anthropic stated that it examined more than 140,000 tests to find evidence of whether Claude could gain access to the internet from test environments designed to be isolated.
The evaluations included “capture-the-flag” exercises, in which Claude was instructed to breach other systems to obtain information. This is a method frequently used by experts to assess a model’s hacking capabilities.
The San Francisco-based company stated that a “misconfiguration” in systems operated by Anthropic and its testing partner left the models with live internet access, enabling them to infiltrate external systems.
Anthropic said it approached remediation efforts “with full ownership of the responsibility.”
Neither Anthropic nor the affected organizations detected the unauthorized entries at the time they occurred.
Anthropic added that it may examine its logs more extensively, noting that the findings gave the company “cautious optimism” that such risks can be overcome through increased investment and more stringent safeguards.
David Allott, a cybersecurity expert, told the BBC: “The overarching lesson here is not that AI has developed fundamentally new attack vectors.”
“Instead, it means that AI agents can combine capabilities, acquire credentials and system access to act autonomously, while adapting scope and scale at machine speed,” Allott said.
The developments come as technology companies invest billions of dollars to develop AI agents capable of independently executing a range of tasks, from research and customer support to cybersecurity.
America
Elon Musk’s America PAC plans $100 million field operation for 2026 Republican midterm push
Tesla and SpaceX CEO Elon Musk is returning to the political spending arena with a new field program designed to help elect Republicans in at least eight states ahead of the 2026 midterm elections.
Musk has authorized his political action committee, America PAC, to spend between $100 million and $120 million on a new ground game focused on conservative voter turnout for the 2026 midterms, according to a Thursday report by The New York Times, which cited two unnamed sources informed about the plans.
America PAC funneled more than $250 million into Donald Trump’s reelection campaign in 2024, a expenditure that established Musk as the largest political donor in US history.
The New York Times reported that America PAC is reviving its spending initiatives and has reached out to other Republicans in recent weeks regarding the new field operations.
The effort is also being coordinated with other Republican Party spending groups, according to the report.
The newspaper identified targeted Senate races in the states of Alaska, Iowa, Maine, Michigan, and Ohio, while noting that discussions are also underway regarding contests in North Carolina, Georgia, and Texas.
The political action committee is additionally expected to deploy funds for House of Representatives elections in Washington, Wisconsin, and California.
The news comes a day after Axios first reported that America PAC’s operations were resuming, with a focus on driving Republican turnout during the non-presidential election cycle.
A spokesperson for America PAC declined to comment on The New York Times report but confirmed the Axios reporting to The Hill. The spokesperson stated that the spending group was “excited” to contribute to efforts to maintain the Republican majorities in Congress this fall.
“The President’s political team and the rest of the GOP apparatus have built a world-class operation that has Republicans well-positioned to make history and retain control of Congress this fall,” America PAC spokesperson Andrew Romeo said in a statement. “We’re excited to be part of the team again.”
The campaign will reportedly target Republican voters through door-to-door canvassing, mailers, and digital advertisements, enabling other groups to concentrate their resources on television advertising.
The developments were reported days after Musk told The Economist magazine that he had gotten “carried away” during his brief foray into politics.
The SpaceX CEO entered the political arena during the 2024 election, pouring hundreds of millions of dollars into Trump’s presidential campaign and accompanying the candidate on the campaign trail.
Musk went on to lead Trump’s cost-cutting initiative, known as the Department of Government Efficiency (DOGE), which executed sweeping employment and funding reductions across the federal government. Those efforts sparked controversy for Musk and his enterprise empire, including Tesla, whose shares fell sharply during his period of political involvement.
Musk departed the White House in late May 2025, and DOGE officially terminated its operations on July 4.
Shortly after leaving government, Musk and Trump engaged in a public dispute over the president’s sweeping spending legislation, the “One Big Beautiful Bill Act.” During the friction, Musk threatened to form a third party, though the initiative never materialized.
Musk and the US President appeared to resolve their differences last year, with the tech billionaire most recently joining Trump alongside other technology leaders on a trip to China in May.
America
Trump administration seeks to reopen closed US oil refineries as war drives fuel prices up
The Trump administration is seeking to reopen closed oil refineries across the country—including a troubled facility in the Virgin Islands—in response to rising gasoline prices driven by the war in Iran.
A White House official confirmed in an email to The Hill newspaper on Thursday that the Trump administration “would like to see refineries re-opened across the country, particularly the St. Croix refinery.”
The official noted that the facility holds specific significance due to its “strategic” location and the fact that it was constructed to process Venezuelan crude oil.
The statement noted that companies have contacted the administration since April 2025 to submit purchase inquiries for the refinery, adding that interest surged further following the abduction of Venezuelan leader Nicolás Maduro and the subsequent US takeover of the country’s infrastructure.
The push to reactivate closed refineries was first reported by Politico. Three senior industry executives told the outlet that the White House is conducting talks to reopen refining facilities stretching from the Virgin Islands to California.
White House spokesperson Taylor Rogers addressed the initiative in a statement, saying: “Energy security is national security. America’s refining capacity is critical to ensuring the United States has uninterrupted access to safe, affordable, and reliable energy.”
“The President’s Council on National Energy Dominance will continue to support the re-opening of closed refineries and the construction of new ones to drive prices down and bolster our national security,” Rogers said.
The initiative comes as gasoline prices remain elevated amid the war in Iran.
According to data from the American Automobile Association (AAA), the national average gasoline price stood at approximately $4.10 per gallon as of Thursday. That figure is more than $1 higher than the level recorded when the conflict broke out earlier this year.
The St. Croix refinery halted operations indefinitely in 2021. The shutdown followed an order from the Environmental Protection Agency (EPA) requiring a 60-day suspension after determining that oil spills and air pollution originating from the plant posed an “imminent threat to public health.”
David Johnson, a director at Port Hamilton Refining & Transportation, welcomed the prospect of resuming operations at the facility in a statement shared with The Hill.
In his statement, Johnson said:
“Through the mobilization of substantial private capital alongside targeted federal initiatives that strengthen infrastructure and industrial capacity of national significance, the revitalization of the St. Croix refinery offers an opportunity to advance US energy security, expand domestic production, strengthen supply chain resilience, support advanced technology, create thousands of high-quality jobs, and build long-term American economic competitiveness, while accelerating the return of a strategic American industrial asset.”
Johnson added that the company “continues to engage in constructive discussions with federal and local officials, commercial parties, investors, and financing sources regarding the future of the refinery.”
Noting that the negotiations remain confidential, Johnson said: “While these discussions are confidential, we remain optimistic that the St. Croix refinery can once again make a substantial contribution to America’s energy security, industrial competitiveness, and long-term economic resilience.”
Crude oil is processed into gasoline at refining facilities. While crude oil costs generally constitute the primary driver of pump prices, refining capacity also plays a direct role in price formation.
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