By MATT OTT, AP Business Writer

WASHINGTON (AP) — U.S. applications for unemployment benefits fell last week as layoffs remain at historically low levels.

The number of Americans filing for jobless aid for the week ending Feb. 14 fell by 23,000 to 206,000 from the previous week, the Labor Department reported Thursday. That’s significantly fewer than the 225,000 new applications that analysts surveyed by the data firm FactSet had forecast.

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Filings for unemployment benefits are viewed as representative of U.S. layoffs and are close to a real-time indicator of the health of the job market.

Earlier this month, the Labor Department reported that U.S. employers added a surprisingly strong 130,000 jobs in January and the unemployment rate fell to 4.3% from 4.4%. However, government revisions cut 2024-2025 U.S. payrolls by hundreds of thousands, reducing the number of jobs created last year to just 181,000. That’s about one-third of the previously reported 584,000 and the weakest since the pandemic year of 2020.

While weekly layoffs have remained in a historically low range mostly between 200,000 and 250,000 for the past few years, a number of high-profile companies have announced job cuts recently, including UPS, Amazon, Dow and the Washington Post in recent weeks.

Mounting layoff announcements in the past year, combined with the government’s own sluggish labor market reports, have left Americans increasingly pessimistic about the economy, even though it is registering solid growth.

The Labor Department also recently reported that job openings fell in December to the lowest level in more than five years.

Data over the past year has broadly revealed a labor market in which hiring has clearly slowed, hobbled by uncertainty stoked by President Donald Trump’s tariffs and the lingering effects of the high interest rates the Fed engineered in 2022 and 2023 to tamp down a spike of pandemic-induced inflation.

Economists are conflicted about whether the stronger-than-expected January job gains are a one-off or possibly the first sign of a recovering labor market, which could lead the Fed to further delay more cuts to its key interest rate.

Some Fed officials have specifically argued that last year’s weak hiring shows that borrowing costs are weighing on growth and discouraging companies from expanding. A sustained pickup in hiring could undercut that theory.

The Labor Department’s report Thursday showed that the four-week moving average of jobless claims, which tempers some of the week-to-week volatility, decreased by 1,000 to 219,000.

The total number of Americans filing for jobless benefits for the previous week ending Feb. 7 increased to 1.87 million, up 17,000 from the previous week, the government said.

By PAUL WISEMAN, AP Economics Writer

WASHINGTON (AP) — The U.S. trade deficit slipped modestly in 2025, a year in which President Donald Trump upended global commerce by slapping double digit tariffs on imports from most countries.

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The gap the between the goods and services the U.S. sells other countries and what it buys from them narrowed to just over $901 billion from $904 billion in 2024, the Commerce Department reported Thursday.

Exports rose 6% last year, and imports rose nearly 5%.

The trade gap surged from January-March as U.S. companies tried to import foreign goods ahead of Trump’s taxes, then narrowed most of the rest of the year.

Trump’s tariffs are a tax paid by U.S. importers and often passed along to their customers as higher prices. But they haven’t had as much impact on inflation as economists originally expected. Trump argues that the tariffs will protect U.S. industries, bringing manufacturing back to America and raise money for the U.S. Treasury.

By AAMER MADHANI and MATTHEW LEE

WASHINGTON (AP) — President Donald Trump will gather Thursday with representatives from more than two dozen countries that have joined his Board of Peace — and several that have opted not to — for an inaugural meeting that will focus on reconstruction and building an international stabilization force for a war-battered Gaza, where a shaky ceasefire deal persists.

Trump announced ahead of the meeting that board members have pledged $5 billion for reconstruction, a fraction of the estimated $70 billion needed to rebuild the Palestinian territory decimated after two years of war. Members are expected to unveil commitments of thousands of personnel to international stabilization and police forces for the territory.

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“We have the greatest leaders in the world joining the Board of Peace,” Trump told reporters earlier this week. “I think it has the chance to be the most consequential board ever assembled of any kind.”

The board was initiated as part of Trump’s 20-point peace plan to end the conflict in Gaza. But since the October ceasefire, Trump’s vision for the board has morphed and he wants it to have an even more ambitious remit — one that will not only complete the Herculean task of bringing lasting peace between Israel and Hamas but will also help resolve conflicts around the globe.

But ahead of the board’s first gathering, the Gaza ceasefire deal remains fragile and Trump’s expanded vision for it has triggered fears the U.S. president is looking to create a rival to the United Nations. Trump earlier this week said he hoped the board would push the U.N. to “get on the ball.”

“The United Nations has great potential,” he said. “They haven’t lived up to the potential.”

Some US allies remain skeptical

More than 40 countries and the European Union have confirmed they will send officials to Thursday’s meeting, according to a senior administration official who was not authorized to comment publicly. Germany, Italy, Norway and Switzerland are among more than a dozen countries that have not joined the board but are expected to attend as observers, the official said.

US President Donald Trump walks on the podium after a signing ceremony of his Board of Peace initiative at the Annual Meeting of the World Economic Forum in Davos, Switzerland, Thursday, Jan. 22, 2026. (AP Photo/Markus Schreiber)

The U.N. Security Council held a high-level meeting Wednesday on the ceasefire deal and Israel’s efforts to expand control in the West Bank. The U.N. session in New York was originally scheduled for Thursday but was moved up after Trump announced the board’s meeting for the same date and it became clear that it would complicate travel plans for diplomats planning to attend both.

Vatican Secretary of State Cardinal Pietro Parolin told reporters earlier this week that “at the international level it should above all be the U.N. that manages these crisis situations.” The Trump administration on Wednesday pushed back on the Vatican’s concerns.

“This president has a very bold and ambitious plan and vision to rebuild and reconstruct Gaza, which is well underway because of the Board of Peace,” White House press secretary Karoline Leavitt said. “This is a legitimate organization where there are tens of member countries from around the world.”

Mike Waltz, the U.S. ambassador to the U.N., also pushed back on skeptical allies, saying the board is “not talking, it is doing.”

“We are hearing the chattering class criticizing the structure of the board, that it’s unconventional, that it’s unprecedented,” Waltz said. “Again, the old ways were not working.”

President Donald Trump speaks at the Board of Peace meeting, during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Thursday, Jan. 22, 2026. (Gian Ehrenzeller/Keystone via AP)

Questions about disarming Hamas

Central to Thursday’s discussions will be creating an armed international stabilization force to keep security and ensure the disarming of Hamas, a key demand of Israel and a cornerstone of the ceasefire deal.

But thus far, only Indonesia has offered a firm commitment to Trump for the proposed force. And Hamas, which has been designated as a terrorist organization by the United States, Canada and the European Union, has provided little confidence that it is willing to move forward on disarmament. The administration is “under no illusions on the challenges regarding demilitarization” but has been encouraged by what mediators have reported back, according to a U.S. official who was not authorized to comment publicly and spoke on condition of anonymity.

Indonesian President Prabowo Subianto pledged to work closely with other leading Islamic countries invited by Trump to “join in the endeavors to try to achieve lasting peace in Palestine.”

“We recognize there are still obstacles to be overcome, but at least my position is at least we have to try, and we have to do our best,” he said at an event at the U.S. Chamber of Commerce on Wednesday, where he met with members of the business community.

On Thursday, updates are expected from the Gaza Executive Board, the operational arm of the board, about its efforts to create a functioning government system and services for the territory, according to the official who spoke on condition of anonymity to preview the broad outlines of the meeting.

In addition to Trump, the official said other speakers at the conference would include Secretary of State Marco Rubio, Trump’s special envoy Steve Witkoff, Trump’s son-in-law Jared Kushner, former British Prime Minister Tony Blair, the executive board’s high representative Nickolay Mladenov, and Waltz.

Michael Hanna, U.S. program director at the International Crisis Group, a nonprofit group focused on preventing conflicts, suggested the skepticism some U.S. allies are showing is not unwarranted.

“Without any clear authorization for the expansion of its mandate beyond Gaza, it is unsurprising that many U.S. allies and partners have chosen to decline Trump’s offer to join the board,” Hanna said. “Instead, many of the states most invested in Gaza’s future have signed up with the hope of focusing U.S. attention and encouraging Trump himself to use the influence and leverage he has with Israel.”

Associated Press writers Didi Tang in Washington, Farnoush Amiri at the United Nations and Nicole Winfield in Rome contributed reporting.

By JON GAMBRELL

DUBAI, United Arab Emirates (AP) — Iran and the United States leaned into gunboat diplomacy on Thursday as nuclear talks between the nations hung in the balance, with Tehran holding drills with Russia and the Americans bringing another aircraft carrier closer to the Mideast.

The Iranian drill and the arrival of the USS Gerald R. Ford aircraft carrier near the mouth of the Mediterranean Sea underscore the tensions between the nations. Iran earlier this week also launched a drill that involved live-fire in the Strait of Hormuz, the narrow opening of the Persian Gulf through which a fifth of the world’s traded oil passes.

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The movements of additional American warships and airplanes don’t guarantee a U.S. strike on Iran — but it does give President Donald Trump the ability to carry out one should he choose to do so. He’s so far held off on striking Iran after setting red lines over the killing of peaceful protesters and Tehran holding mass executions, while reengaging Tehran in nuclear talks earlier disrupted by the Iran-Israel war in June.

“Should Iran decide not to make a Deal, it may be necessary for the United States to use Diego Garcia, and the Airfield located in Fairford, in order to eradicate a potential attack by a highly unstable and dangerous Regime,” Trump wrote on his Truth Social website, seeking to pressure the United Kingdom over its plans to settle the future of the Chagos Islands with Mauritius.

Meanwhile, Iran struggles with unrest at home following its crackdown on protests, with mourners now holding ceremonies honoring their dead 40 days after their killing by security forces. Some of the gatherings have included anti-government cries, despite threats from authorities.

Iran holds drill with Russia

The drill Thursday saw Iranian forces and Russian sailors conduct operations in the Gulf of Oman and the Indian Ocean, Iran’s state-run IRNA news agency reported. The drill will be aimed at “upgrading operational coordination as well as exchange of military experiences,” IRNA added.

This image provided Thursday Feb. 19, 2026 by the Iranian military and dand dated Wednesday, Feb. 18, 2025, shows navy ships conducting operations during a join drill by Iranian and Russian forces in the Indian Ocean.(Masoud Nazari Mehrabi/Iranian Army via AP)

China had joined the “Security Belt” drill in previous years, but there was no acknowledgment it participated in this round. In recent days, a vessel that appeared to be a Steregushchiy-class Russian corvette had been seen at a military port in the Iranian city of Bandar Abbas.

Iran also issued a rocket-fire warning to pilots in the region, suggesting they planned to launch anti-ship missiles in the exercise.

Meanwhile, tracking data showed the Ford off the coast of Morocco in the Atlantic Ocean midday Wednesday, meaning the carrier could transit through Gibraltar and potentially station in the eastern Mediterranean with its supporting guided-missile destroyers.

This image provided Thursday Feb. 19, 2026 by the Iranian military and dated Tuesday, Feb. 17, 2025, shows navy ships conducting operations during a join drill by Iranian and Russian forces in the Indian Ocean. (Masoud Nazari Mehrabi/Iranian Army via AP)

Having the carrier there could allow American forces to have extra aircraft and anti-missile power to potentially protect Israel and Jordan should a conflict break out with Iran. The U.S. similarly placed warships there during the Israel-Hamas war in the Gaza Strip to protect against Iranian fire.

Anti-government chants made at mourning ceremonies

Mourning ceremonies for those killed by security forces in the protests last month also have increased. Iranians traditionally mark the death of a loved one 40 days after the loss. Both witnesses and social media videos showed memorials taking place at Tehran’s massive Behesht-e Zahra cemetery. Some memorials included people chanting against Iran’s theocracy while singing nationalistic songs.

This is a locator map for Iran with its capital, Tehran. (AP Photo)

The demonstrations began Dec. 28 at Tehran’s historic Grand Bazaar, initially over the collapse of Iran’s currency, the rial, then spread across the country. Tensions exploded on Jan. 8, with demonstrations called for by Iran’s exiled crown prince, Reza Pahlavi.

Iran’s government has offered only one death toll for the violence, with 3,117 people killed. The U.S.-based Human Rights Activists News Agency, which has been accurate in previous rounds of unrest in Iran, puts the death toll at over 7,000 killed, with many more feared dead.

Associated Press writer Nasser Karimi in Tehran, Iran, contributed to this report.