Report: US, Iran Close to War's End; Trump, China's Xi Prepare for Meeting

The broadcast opens with major Middle East news: Axios is reporting that the White House believes it is closing in on a one-page memorandum of understanding with Iran to end the more-than-two-month war. Bloomberg's Patrick Sykes, reporting from Istanbul, explains the memo would set a framework for more detailed nuclear negotiations, with both sides agreeing to lift restrictions on the Strait of Hormuz as an initial step. Key caveats include that the arrangement is contingent on no resumption of hostilities and that Iran's nuclear program remains an unresolved issue to be kicked down the road. The memo would also involve a moratorium on uranium enrichment and U.S. lifting of sanctions — a longstanding Iranian demand. President Trump announced on social media he would pause 'Project Freedom,' an effort to guide stranded ships through the Strait of Hormuz, to allow negotiations to proceed. Secretary of State Marco Rubio separately declared the offensive phase of the war over, stating the U.S. would only respond defensively. Iran framed the pause as a U.S. retreat, claiming firm control of the Strait, while shipping in the region remains insecure with continued targeting of vessels. Gas prices have reached an all-time high for this time of year, with AAA's nationwide average topping $4.50 a gallon for the first time since July 2022. Diplomatically, Iran's top diplomat is in Beijing meeting with China's foreign minister, who is urging Iran to continue negotiations for a lasting truce. President Trump is scheduled to meet China's President Xi Jinping on May 14th and 15th in Beijing, where the war will be a major discussion topic. Trump noted that Xi has been respectful and that China imports approximately 60% of its oil through the Strait of Hormuz. On trade, U.S. Ambassador to the EU Andy Puzder warned that 25% tariffs on European cars and trucks could be implemented 'relatively soon' if the EU does not ratify a trade deal already agreed upon by both sides, with retroactive tariff cuts to August 1st on automobiles. A clash between President Trump and Pope Leo XIV is escalating, with Trump mischaracterizing the Pope's anti-nuclear weapons stance as support for Iran having a nuclear weapon. Secretary of State Rubio, a Catholic, is set to meet the Pope at the Vatican. In domestic politics, Vivek Ramaswamy won the Ohio Republican gubernatorial primary with 82.5% of the vote, backed by Trump, and will face Democrat Amy Acton in November. Former Senator Sherrod Brown won the Ohio Democratic Senate primary with 89.5% and will face Republican John Husted. In Indiana, Trump-endorsed challengers defeated at least five of seven Republican state senators who had opposed a congressional redistricting effort. In Michigan, Democrat Cedric Green won a special election, keeping Democrats in control of the state Senate. On markets, futures surged following AMD's strong earnings report — the stock was up nearly 19% in pre-market trading, driven by data center spending and AI demand, potentially reaching a record high. Disney reported its first earnings under new CEO Josh DeMauro, with consensus estimates calling for $24.87 billion in revenue and $1.51 adjusted EPS, amid challenges including an FCC license review and a collapsed OpenAI deal. Other news included another near-miss incident at JFK Airport involving a Delta regional flight and an uncontrolled small aircraft, details emerging about a shooting on the National Mall involving suspect Michael Marks, and two hikers mauled in a possible grizzly bear attack at Yellowstone National Park.