Diplomatic talks between the U.S. and Iran have broken down after American forces seized the Iranian cargo vessel Touska, prompting Iran to withdraw its negotiating delegation. The confrontation has nearly shut down the Strait of Hormuz, reducing daily traffic from 140 vessels to about three and disrupting roughly a fifth of global seaborne oil trade. Also: record heat and drought across the U.S., Ukraine strikes Russian oil infrastructure, and a pro-Moscow leader wins Bulgaria's parliament.