Defense Secretary Pete Hegseth announced sweeping military reforms, including a 20% reduction in senior leadership and the elimination of diversity initiatives, while establishing a new drone warfare command. The report also covers a security incident on a Dubai-to-Tel Aviv flight where a pilot was subdued by passengers, and the completion of the U.S. troop withdrawal from Iraq. In markets, stocks fell as rising bond yields pressured equities despite better-than-expected inflation data, with Brent crude oil settling above $98 per barrel.