(US) Monday Morning Papers Summary

FINANCIAL TIMES - Apple is seeking approval from the Trump administration to source memory chips from a Chinese company that has been placed on the U.S. trade blacklist, underscoring the growing tension between Washington's technology restrictions and the commercial realities facing American manufacturers.

The iPhone maker argues that soaring semiconductor prices and constrained supply threaten future production, highlighting how export controls are increasingly colliding with global supply chains. -The Bank for International Settlements has warned that the current wave of investment in artificial intelligence could end in a prolonged boom-and-bust cycle, arguing that excessive optimism about future returns risks producing significant overcapacity.

While AI will transform productivity over time, the BIS cautions that investors may be underestimating the scale of capital spending required and overestimating the pace at which profits will materialize. -President Vladimir Putin has publicly acknowledged that Ukrainian drone strikes have created fuel shortages inside Russia, marking his first admission that Kyiv's long-range campaign against refineries and energy infrastructure is having a measurable economic impact.

The attacks are disrupting fuel supplies while forcing Moscow to divert additional resources toward protecting critical infrastructure. -The United States says it has reached an agreement with Iran to halt further military exchanges and resume negotiations after renewed attacks threatened the fragile ceasefire around the Strait of Hormuz.

Although Tehran has yet to formally confirm all aspects of the arrangement, both sides appear eager to prevent further disruption to one of the world's most important energy shipping lanes. -Europe risks entering the coming winter with its lowest natural gas inventories in 15 years as storage facilities are refilling more slowly than expected.

Analysts warn that prolonged supply constraints and geopolitical uncertainty could leave the continent vulnerable to price spikes if colder weather or further disruptions emerge later in the year. -Andy Burnham has outlined a ten-year economic strategy centered on raising living standards across every part of the United Kingdom as he prepares to succeed Sir Keir Starmer.

His plan emphasizes regional investment, infrastructure and devolution, while attempting to restore political stability after years of economic uncertainty and frequent changes in government. -Ukraine's increasingly effective long-range drone campaign is beginning to alter Russia's economic outlook as repeated strikes disrupt energy production, logistics and fuel distribution.

The FT argues that the cumulative effect extends beyond military damage, gradually increasing economic pressure on Moscow while forcing difficult choices over resource allocation. -A surge in electricity demand from artificial intelligence data centers has triggered more than $200B in mergers and acquisitions across the U.S. energy sector during the first five months of the year.

Utilities are rapidly expanding generation and transmission capacity to accommodate AI infrastructure, transforming what had long been one of Wall Street's slowest industries into one of its fastest-growing investment themes. -The return of David Miliband to British politics is being actively discussed as Andy Burnham prepares to form a new government, potentially ending the former foreign secretary's 13-year absence from Westminster.

The prospect would reopen one of Labour's longest-running political stories while strengthening Burnham's international and foreign policy credentials. -Gazans are increasingly constructing makeshift homes from clay, rubble and salvaged materials as Israel continues to restrict imports of concrete and steel into the territory.

The improvised shelters reflect both the destruction caused by the conflict and the growing humanitarian challenge of rebuilding basic housing without access to conventional construction materials.

NEW YORK TIMES -Raging divisions over Israel and Iran are reshaping both the Democratic and Republican parties ahead of the November midterm elections.

Within the Republican Party, isolationists and traditional national security hawks remain at odds over continued U.S. military engagement in the Middle East, while Democrats are increasingly split between pro-Israel moderates and a progressive wing calling for a fundamental reassessment of American policy.

The debate is expected to influence not only the midterms but also the ideological direction of both parties heading into the 2028 presidential race. -A new New York Times/Siena College poll shows Democrat Graham Platner holding a narrow 49% to 47% lead over Republican Senator Susan Collins in Maine, one of the most closely watched Senate races in the country.

With control of the Senate likely to hinge on only a handful of seats, both parties view Maine as a pivotal battleground, and the survey suggests the contest remains effectively within the margin of error. -The United States has reached a tentative agreement with Iran to suspend military attacks and restore freedom of navigation through the Strait of Hormuz, according to U.S. officials.

While Tehran has yet to publicly confirm the arrangement, the proposed deal would allow commercial shipping to resume through one of the world's most strategically important energy corridors after weeks of escalating attacks and counterattacks. -China has emerged as one of the relative geopolitical beneficiaries of the Strait of Hormuz crisis, despite the disruption to global energy markets.

The conflict has weakened several Asian economies more dependent on Gulf shipping while allowing Beijing to strengthen its diplomatic influence and reinforce its position as a mediator capable of maintaining relations with both Iran and Gulf Arab states. -Despite renewed diplomatic contacts with Washington, Iran continues to use the Strait of Hormuz as a strategic ba