Will Israel and Iran’s Cease-Fire Hold?
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Israel and Iran agree to stop fighting. We'll get the latest. Plus, NATO allies gather to set a major increase in defense spending in stone. Some countries, such as Spain, Belgium, Italy, have had trouble hitting just 2%.

So whether they'll be able to hit 5% is an open question. But at least people are committing to try to hit that. And we'll look at why it might be time to check your credit card statement for what could be an unexpectedly large annual fee. It's Tuesday, June 24th. I'm Luke Vargas for The Wall Street Journal. And here is the AM edition of What's News, the top headlines and business stories moving your world today.

Israel and Iran say they have agreed to a ceasefire to end a week and a half of fighting. President Trump announced the deal on social media yesterday evening. We report that Qatar helped to secure Iran's agreement just hours after Tehran had attacked a U.S. base in the country, while an official statement from Israel confirmed its acceptance of the ceasefire, noting that it had achieved its war aims.

But is the deal holding? Shandy Race is the journal's deputy Middle East bureau chief. Shandy, what is the latest? We've got reports of this deal being agreed to by both sides and yet also reports of Iranian missiles landing in Israel hours after that. What's going on here?

It's a very good question. It's still very unclear right now. Yes, both sides have agreed to a ceasefire. Not too long after the ceasefire was agreed to, Iran launched some missiles towards northern Israel. So Israel responded that they're going to forcefully respond to Iran. Now, I would say that in my experience with these kinds of ceasefires, you very often see like one last launch even after the ceasefire has been agreed to. It's kind of like people getting in their last licks

So the question is just going to be, can they keep this contained to a quick tit for tat or will it quickly spiral out of control and the ceasefire will fall apart really before it's even started?

Maybe, Shandi, it would be helpful as a way of trying to handicap the odds of this being a successful ceasefire is just trying to understand the willingness from both sides to actually get to this point. I think both sides very much want to get to this point. I think it's just a question of saving face. We reported yesterday that Israel was ready to wrap up its fighting. We had been told by our sources that Israel was very close in the coming days to completing its

top target list. On the Iranian side, the biggest clue that we had that Iran was ready to wrap it up is that they didn't go for a major escalation with the United States after the United States struck their nuclear facilities. They did launch an attack on an American base in Qatar, but there were no casualties and they had given a heads up to the U.S. and none of the missiles hit. Is there anything else we should be watching for next besides

skies to see if attacks are continuing? I think the biggest question from what I can tell is not so much about whether attacks are going to be continuing in the short term, but what is going to be the long-term repercussions of this. Mostly, how significantly has Israel and the United States damaged Iran's nuclear capabilities? What will happen to Iran now? Will they back down? Will it take them years to rebuild? Will it take them months? Will they try to go underground and

and pull out of any sort of diplomatic agreements that would allow for oversight of their nuclear program. And the reason that that's important is because that will determine whether Iran and Israel get into another round of fighting in the future. And so if Israel is only set Iran back for a few months, and very soon we see Iran trying to rebuild, this could force Israel to decide that they have to intervene again militarily, and then we could be back to where we are.

Shandi Race is the journal's deputy Middle East bureau chief. Thank you so much for filling us in on these details. Thanks, Luke. Meanwhile, more high-stakes diplomacy is set to get underway in The Hague today as NATO members meet for an annual summit. Journal Brussels bureau chief Dan Michaels is there.

Dan, as far as I understand, there isn't a direct NATO link to the fighting lately involving Israel, the U.S. and Iran. But I imagine it is very much on the minds of alliance members who are due to have some pretty difficult, weighty conversations about defense spending, military readiness. Indeed, Iran is sort of hanging over conversations here in The Hague today and tomorrow.

One of the big lessons learned from recent events, both in Iran and also in Russia, where Ukraine staged the dramatic drone strike a few weeks ago, is that military hardware can be very vulnerable on the ground before it's deployed. One of the reasons the Israelis were very successful in their strikes on Iran last week was the Israeli agents on the ground apparently knocked out air defenses before the airstrikes started.

So NATO is starting to think a lot more about how to protect its forces and homelands before there's a war. We hope that there won't be a war. And one way that NATO officials say to avoid that is to make it clear that NATO is ready to fight if it needs to.

And being ready to fight means not just having tanks in armories and equipment like that, airplanes sitting in airfields. It's making sure that they are ready to deploy and able to deploy, that the highways can carry them, that ports are able to move equipment off of ships, that telephone systems work, and that governments...

can continue functioning. And these are issues that NATO for the first time is going to specifically devote money to. Specifically devote money to. And there are other sort of firm pledges around military spending or increases in military spending that I understand NATO leadership wants to leave this summit having inked, basically. That is the big deliverable of this summit. NATO has agreed in principle, and it's going to be essentially carved in stone here,

to more than double defense spending from a previous pledge of 2% of gross domestic product economic output that was agreed in 2014. And the event really will be essentially a victory lap for President Trump

who will be able to say that he pushed the other NATO members to agree to 5%. It's an open question whether everyone will be able to meet the target over coming years. Some countries, such as Spain, Belgium, Italy, have had trouble hitting just 2%. So whether they'll be able to hit 5% is an open question. But at least...

People are committing to try to hit that. And even if the direction is achieved, the defense and military spending are increased significantly. That's the main thing that NATO wants to achieve, to just be more ready in case of hostilities. The big fear is from Russia. We'll be tracking it closely. Dan Michaels is The Wall Street Journal's Brussels Bureau Chief. Dan, thanks so much for the update. Good talking with you. Thanks.

Coming up, we've got the rest of the day's news as the Supreme Court weighs in on deporting migrants to third-party countries and voting ends in New York City's heated Democratic primary. Those stories and more after the break. When you hear Lululemon, you probably think of Align yoga pants, weightlessly soft, like you're wearing next to nothing. That's why you see them in class.

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The Supreme Court has cleared the way for the Trump administration to swiftly send migrants facing final deportation orders to countries that they aren't from. The court's conservative majority stayed a lower court order that had said individuals on track to be deported to third countries must be given meaningful notice of their destination, giving them time to object.

Crucially, the Supreme Court's order doesn't resolve questions about the Trump administration's legal obligations to the migrants, an issue that is continuing to be litigated in lower courts.

After months of intense campaigning, voting is ending today in New York City's Democratic mayoral primary. A poll released yesterday shows former Governor Andrew Cuomo likely to top a first round of ranked choice voting, but Democratic Socialist Zoran Mamdani winning after eight rounds as supporters of less popular candidates have their votes redistributed.

The race between Cuomo, who resigned as governor in 2021 following sexual harassment claims he's denied, and Mamdani, a progressive less than half of Cuomo's age, is viewed by some voters as a referendum on the future of the Democratic Party. And the candidates played up that contrast in their final advertising blitz.

Billionaires and corporations. The same people who put Donald Trump back in the White House are now trying to elect Andrew Cuomo. They're spending all this money for a very simple reason. Corporations don't want to pay just a little bit more in taxes to make a better city for all of us.

We'll bring you the results from the primary tomorrow morning.

We are exclusively reporting that nearly 2 million student loan borrowers are at risk of having their pay docked by the government this summer, with their tax returns and benefits also at risk. That's as credit reporting company TransUnion says roughly 6 million federal student loan borrowers are 90 days or more past due after the Education Department restarted collections on defaulted student loans in May following a pandemic-era reprieve.

A third of those borrowers could move into default this month and millions more by September. Borrowers could see up to 15 percent of their wages automatically deducted from their paychecks until past due payments are paid in full or their default status is resolved.

And if you thought that your premium credit card was costing you just a nominal fee, think again. That's because companies like JPMorgan Chase are raising prices on their most exclusive credit cards by as much as 45 percent, while American Express is expected to hike its $695 fee this fall. Increases that journal reporter Jacob Passi says are taking some customers by surprise.

We spoke with one person who wasn't even aware of what he was paying to begin with. So to him, the new annual fee was quite eye-popping. For other folks like an investment baker named Jacob Moon, who we spoke to, they're more concerned about the fine print that comes with the benefits attached to the card than he is with the annual fee. So for him, it almost is beginning to feel like homework to redeem the benefits and rewards that come with the card. So to him, that's a bigger issue than how much the

card itself costs. And also, a lot of people simply appreciate these cards for the exclusivity associated with them. It's becoming kind of a status symbol to have a Chase Sapphire Reserve or an Amex Platinum card in your wallet.

But even if some customers are turned off by the higher fees, Jacob said the move still makes sense for issuers. For starters, they would be more interested in keeping the revenue from more devoted customers. The more likely you are to use the card, the more they benefit because they make a lot of money off of the interchange fees that they charge to merchants.

So to them, they would rather have someone who's going to use this card as the primary card in their wallet than someone who might open it, might claim some of the benefits, but otherwise not use it. So they're not too worried at this point about the drop-off they might see. But of course, if fees keep going up and that changes consumer behavior, I think you could see a response. And that's it for What's News for this Tuesday morning. Today's show was produced by Daniel Bach and Kate Bullivant.

Our supervising producer was Sandra Kilhoff. And I'm Luke Vargas for The Wall Street Journal. We will be back tonight with a new show. Until then, thanks for listening.