متتبع أزمة إيران-الخليج 2026
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strikeJun 23, 2026

Futures Slide As Tech Tumbles, Korea Crashes

Summary

Futures Slide As Tech Tumbles, Korea Crashes US equity futures are sharply lower as a Semis/South Korea-induced selloff has spread globally slamming tech stocks and pushing SpaceX 3% lower and below its first day of trading price of $150. Nasdaq stocks lead sentiment and early trading lower with AI cost concerns back in focus, as Bloomberg notes that traders are pointing to a South Korean media report we first highlighted at 8pm last night, saying SK Hynix is slowing expansion of AI memory chip production and shifting emphasis to commodity DRAM. As of 8:00am S&P futures were -1.3%, and Nasdaq futures tumbled 2.7%, both near session lows. In premarket trading, Intel and Micron led a broader decline among chipmakers while SpaceX fell 4.3%, below its $150 initial trade price. Chinese equities in Hong Kong entered a bear market. Mag7s are dragging the indices lower with MSFT / telecom the safety valve. In Seoul, chip giants SK Hynix Inc. and Samsung Electronics Co. slumped more than 10%. According to JPM, today's sell-off "may reflect anxiety into MU’s print on Weds as well as the levered ETF mkt structure." Bonds are operating as a safety haven as the yield curve bull steepens, and USD is bid. Commodities are seeing further declines in Energy as US / Iran discussions continue and precious metals are getting hit due to USD (gold) and AI / Tech (silver). Ags are mixed. Today’s macro data focus is on Flash PMIs, ADP’s weekly employment print, and regional Fed activity indicators.  In premarket trading, chipmakers, memory stocks and other AI-related firms slide during the broader selloff. Decliners include Micron (MU -7%), Intel (INTC -6%), AMD (AMD -6%) and CoreWeave (CRWV -5%). Nvidia leads most of the Magnificent Seven group lower (Nvidia -2%, Tesla -2%, Meta -0.6%, Microsoft +1%, Apple -0.3%, Amazon -0.6%, Alphabet -2%,) Avis Budget (CAR) climbs 4% as the rental car company entered into a settlement agreement with Pentwater Capital Management and affiliated persons to resolve a lawsuit seeking recovery of short-swing profits, the company said in a filing. Best Buy (BBY) falls 3% after the company said Matt Bilunas will step down as CFO and depart the retailer at the end of July after 20 years, including seven years as CFO. Edgewell Personal Care (EPC) rises 9% after people familiar with the matter said the maker of Schick razors has rejected an unsolicited takeover offer from private equity firm Yellow Wood Partners. IBM (IBM) gains 4% as JPMorgan upgrades to overweight and as the company announced it has joined the OpenAI Daybreak Cyber Partner Program. Primoris Services (PRIM) sinks 35% after the infrastructure construction company cut its adjusted earnings guidance for the full year. In other corporate news, Oracle reduced its workforce by 21,000 employees in the past 12 months, a wider scale than previously known, including those whose jobs were eliminated by the use of AI. SoftBank’s founder said there’s little merit to building data centers in space, while acknowledging that AI competition is intensifying.  In an ugly session that started with a rout in South Korea, the Kospi finished down 10% while Nasdaq 100 contracts lose 2.5% and are struggling to find a floor. European stocks are not immune with the Stoxx 600 down 1%. Other assets have been caught up in the equity selloff with spot silver down over 4% and Bitcoin dropping 3%. Memory stocks, many of which are riding triple-digit gains this year, recorded some of the steepest losses. SpaceX was poised to fall below its first-day opening price of $150.  In Seoul, chip giants SK Hynix Inc. and Samsung Electronics Co. slumped more than 10%. Intel Corp. and Micron Technology Inc. led a broader decline among chipmakers in US premarket trading, while SpaceX fell 4.3%. Chinese equities in Hong Kong entered a bear market.  BofA equity derivative strategists said the Nasdaq 100’s heavy concentration in technology stocks has fueled its outperformance versus the S&P 500 in both returns and volatility. That’s pushed the Nasdaq’s Bubble Risk Indicator (BRI) closer to a key level which often signals elevated near-term tail risks. Meanwhile, already jittery tech sentiment and volatility could turn on a dime after Micron’s earnings tomorrow. The chipmaker has been the largest contributor to S&P 500 gains this year, while technology stocks make up each of the index’s 10 biggest drivers of returns. “Some of the recent performance in stocks has been highly speculative, fueled by a passion from retail investors for short-term gains,” Mark Dowding, chief investment officer for fixed income at RBC BlueBay Asset Management, told Bloomberg TV. “We may not like it this morning, but actually it’s healthy behavior. The market selloff “is largely a blip, but it is tapping a real and more fundamental anxiety,” said Amanda Lyons, head of research at Energy Group Capital. “The blip part: it is a single piece of local trade press, landing into a jumpy tape and a day before a nervous Micron print, on a trade that is about as crowded and as priced-for-perfection as anything in the market. One regular buyer of stocks, the corporates themselves, are exiting for the time being. Goldman’s Vani Ranganath estimates approximately 65% of companies have entered their blackout window ahead of 2Q results. For the AI trade, attention is now shifting to Micron’s quarterly results on Wednesday after the stock rallied more than 300% since January. “The real test is Micron,” said Amanda Lyons, head of research at Energy Group Capital. “I would watch the rate of change in pricing and any change to capex or bit-supply guidance far more closely than the headline beat or miss.” Fed’s Goolsbee said he remains concerned about inflation and questioned whether all the factors driving prices up are temporary. US Trade Representative Jamieson Greer kicked off talks with Indian officials this week as both sides stepped up efforts to resolve the remaining differences holding up an interim trade agreement. In other assets, currency traders are on high alert for intervention after further weakness in the yen. Gold slides, with Deutsche Bank following Goldman in cutting price forecasts for the metal. European equities fell sharply at the open on Tuesday: the Stoxx 600 falls 1.1% to 632.10, with mining and technology shares leading declines while health care and food beverage stocks are the biggest outperformers. Here are the biggest movers Tuesday: Porsche shares rise as much as 1.8%, erasing early declines after the German luxury carmaker confirmed its forecast for the 2026 financial year Basic resources stocks are falling the most in the Stoxx Europe 600, with the sector index down as much as 4.6%, as metals fell across the board on inflationary concerns and progress of peace talks Hermes shares fall as much as 2.9%, extending its drop to 11% over the past three sessions, after HSBC downgraded its rating on the Birkin bag maker to hold from buy Epiroc drops as much as 5.6%, the most in three months, as UBS downgrades the Swedish mining-equipment maker to sell from neutral and says its valuation “has gone too far” Signify plunges as much as 18% after the Dutch lighting manufacturer announced new medium-term targets and an updated dividend policy that analysts say would mean big cuts to shareholder payouts Telecom Plus shares plunge as much as 33%, sending shares to their lowest level since 2012. The company’s new five-year plan will see it invest with the ambition of improving growth and the quality of earning Dometic declines as much as 11%, the most since March, with Danske Bank cautioning its upcoming 2Q report will be held back by tough US markets for its RV and marine divisions Earlier in the session, Asian stocks fell reversing the previous session’s gains as a selloff in technology shares weighed on regional markets. The MSCI Asia Pacific Index dropped as much as 3.6%, with SK Hynix and Samsung Electronics among the biggest drags. Most of the region’s major markets were in the red, led by declines in South Korea, Japan and China. A sub-gauge of information technology shares slid as much as 6.1%, after rallying 2.3% on Monday. South Korean stocks tumbled 10% from a record high as investors dumped chip heavyweights on concerns that the rally has become overstretched, prompting the local exchange to briefly halt program selling. Japanese equities slipped as some AI-related stocks fell following a selloff in US tech megacaps. “I think our Asian markets are tracking a rotation already underway in the US rather than a fresh risk-off move,” said Billy Leung, an investment strategist at Global X Management. “Hyperscalers have been leading the pullback on AI capex concerns and negative cash flow concerns.” In FX, the Bloomberg Dollar Spot Index gains 0.2% although the yen takes top place among the G-10 currencies, climbing a few pips against the greenback. The Aussie dollar is the weakest, falling 0.7%. In rates, treasuries are richer across the curve with gains led by front-end and belly, as oil steadies and stock futures slump after a selloff in Korean chipmakers stoked concerns about the artificial intelligence trade. US yields richer by as much as 4bp across front-end and belly with 2s10s and 5s30s spreads steeper by 1bp and 3bp on the day; 10-year is around 4.48%, 3bp richer on the day with bunds and gilts in the sector outperforming by around 1bp: German and UK 10-year yields falling 3 basis points each. SpaceX shares fell to the lowest level since their first day of trading ahead of a potential jumbo investment-grade bond sale that could be announced Tuesday. Focal points of US session also include June preliminary PMIs and a 2-year note auction. This week’s Treasury auctions begin at 1pm New York time with $69 billion 2-year note sale, to be followed by 5- and 7-year notes Wednesday and Thursday; WI 2-year yield near 4.20% is ~13bp cheaper than the May auction, which stopped on the screws. In commodities, Brent crude futures fall 1% to around $77 a barrel. Other assets have been caught up in the equity selloff with spot silver down over 4% and Bitcoin dropping 3%. Today's US economic data calendar includes weekly ADP employment change (8:15am), June Philadelphia Fed non-manufacturing activity (8:30am), June preliminary S&P Global US manufacturing and services PMIs (9:45am) and Richmond Fed manufacturing and business conditions indexes (10am). Fed speaker slate empty for the session. Market Snapshot Top Overnight News Korea's KOSPI plummeted 9.99%, its steepest drop in more than three months, on Tuesday as overseas investors sold chipmakers following regulatory signals that the sector's rally had gotten overheated. RTRS South Korea’s retail investors are ploughing profits from a world-beating stock market into an overheated property sector, confounding government efforts to cool real estate demand. FT Iran said $12 billion of its frozen funds were set to be released as part of ongoing talks with the US, with the two sides broadly signaling progress in negotiations to formally end their war. BBG The Trump administration and Qatar have warned the EU that it faces a gas supply crunch that would force up prices unless Brussels rewrites planned rules on methane emissions. BBG The yen erased losses after Japanese Finance Minister Satsuki Katayama said she spoke with Scott Bessent and that they agreed that “bold action” may be needed. Traders are on high alert for intervention. BBG Euro-area business activity shrank less than anticipated in June. S&P Global’s Composite PMI rose to 49.5 from 48.5, topping estimates but remaining below the 50 mark that indicates growth. BBG The UK’s economy contracted for a second consecutive month, with its PMI slipping to a 14-month low. BBG The Fed’s Austan Goolsbee told American Public Media’s Marketplace he remains concerned about inflation and questioned whether price pressures will persist after temporary shocks have dissipated. BBG TSLA logged a more than twofold jump in European monthly sales in May as Elon Musk’s electric-vehicle maker continues to rebuild strength in a region where Chinese rivals are gaining ground. WSJ US Senate passes bipartisan affordable housing bill. Iran War Latest  Iran's Foreign Ministry Spokesperson Baghaei said "if the other party does not fulfill its obligations, we should not be expected to unilaterally fulfill our obligations", Iran International reported. Iran's Foreign Ministry Spokesperson said defensive capabilities and missiles will never be a topic of discussion. US commitment regarding Lebanon is completely clear. Iran's Foreign Ministry Spokesperson said quadrilateral talks were stopped early in Switzerland due to the witnessing of US threats. Thereafter, exchanges were via a mediator, Mehr reported. Iran's Foreign Ministry Spokesperson said Iran has no plans to let IAEA inspectors visit nuclear sites targeted in the conflict. Iranian President, ahead of trip to Pakistan, said Iran is seeking the full implementation of the clauses that have been signed within the framework of international law, Nour News reported. Iranian Parliament Speaker Ghalibaf said the Strait of Hormuz will be administered by Iran according to international law. Iranian President Pezeshkian said in phone call to Turkish President Erdogan on Monday that Iran is ready to pursue diplomacy as per international law. Iran Central Bank Governor said Tehran is not obliged to purchase US agricultural goods under current agreements, and states that remaining frozen assets can be used to buy non-sanctioned goods beyond essential items, according to Tasnim. "Iranian Foreign Minister Abbas Araghchi will visit Baghdad next Sunday", Al Mayadeen reported citing sources; The meeting will include a briefing on the progress of the talks in Switzerland and the preparations. Iranian Foreign Ministry said "America has issued the necessary license for the sale of Iranian oil and petrochemical products", Al Jazeera reported. Iranian Ambassador to the UN said any further attacks on Lebanon would be a red line. Iranian Ambassador to the UN said Hormuz talks will be held with Oman. Iranian Ambassador to the UN said there has been good progress in negotiations with the US. "Sources indicate that the Iranian Foreign Minister [Araghchi] will hold separate talks with Pakistani officials", Al Hadath reported. Oman's Foreign Minister said Iranian negotiators reaffirmed their commitment to international law and to ensuring safe, toll-free passage through the Strait of Hormuz. Oman's Foreign Minister meets with Iranian Parliamentary Speaker Ghalibaf, with the officials discussing regional stability and Strait of Hormuz. Shipping data cited by Al-Arabia showed at least 20 ships have crossed the Strait of Hormuz in the past 24 hours. One person reportedly killed by Israeli gunfire in a southern Lebanese town, according to Lebanese Civil Defense and a security source - timing unclear. Senior US official tells Al Jazeera that talks between Lebanon and Israel will continue to advance comprehensive peace and a security agreement between the two countries. Israeli National Security Minister Ben-Gvir said Israel must act alone against Iran's nuclear program and must maintain military freedom in Lebanon, hopes withdrawal from southern Lebanon will not happen and will do everything to convince PM Netanyahu. Israel military shells and fires at Khan Yunis in Gaza, according to Fars News Agency. Israel's PM, Defence Minister and Military Chief said Israeli military will continue to act to neutralise threats to soldiers and citizens, demolish terrorist infrastructure, and maintain security zone in southern Lebanon, according to a joint statement. Israel's leadership reaffirms that the security of Israeli citizens and IDF troops will remain its overriding priority, with no room for compromise. Israeli forces reportedly violate Syrian territory, conducting house searches in southern outskirts of Quneitra governorate. US-Iran technical talks in Burgenstock had a "breakthrough", talks proceed seemingly in a positive direction, Journalist Mallick reported. US President Trump, on Israel and Lebanon, said "we'll take a look at it"; said he gets problems solved fast, including with Israeli PM Netanyahu. US President Trump said if Iran doesn't stick to agreement, he will do what he has to do. As long as Iran respects us, we are not going to have any trouble. Could restart the blockade quickly if needed. A more detailed look at global markets courtesy of Newsquawk APAC stocks were subdued with initial choppy price action following the mixed performance stateside, where participants reflected on the progress in US-Iran talks, but communication stocks and the Nasdaq Comp underperformed. KOSPI, -6.9%, led the sell off, moving to a test of 8.5k to the downside. ASX 200 traded little changed for most of the session amid a lack of major fresh catalysts overnight and as the strength in financials and defensives offset the losses in the tech and commodity-related sectors. Nikkei 225 swung between gains and losses with the index briefly climbing to a fresh record high before reversing course, and is on track to snap its 8-day win streak. Hang Seng and Shanghai Comp conformed to the lacklustre mood in the region and the absence of any major fresh catalysts, with the Hong Kong benchmark pressured by losses in miners, and digital platforms stocks amid a rotation out of hyperscalers into semiconductors. Top Asian News China's MOFCOM announces measures to stimulate the auto after-sales market; to support the integration and upgrading of the car rental industry. Japanese Chief Cabinet Secretary Kihara said will take appropriate action against FX moves if needed. Canada awarded Australia a USD 1.75bln contract for its over-the-horizon radar system, boosting Arctic early warning capabilities, and which marks Australia's largest ever defence export. Japanese S&P Global Composite PMI Flash (Jun) 52.50. Japanese S&P Global Manufacturing PMI Flash (Jun) 54.9 vs. Exp. 54.5 (Prev. 54.5). Australian S&P Global Manufacturing PMI Flash (Jun) 51.2 (Prev. 50.7). Blackstone (BX) President and COO Gray told Nikkei that the firm plans to invest USD 30bln in Japanese data center development over the next three to five years. Large losses in Kospi (-9.9%) crept through to Europe (STOXX 600 -1%) with EU tech leading the losses. No specific headline driver for overnight losses in a typical non-conflict risk-off move (stocks/oil down, fixed/havens bid). As you would expect, South Korean heavyweights Samsung and SK Hynix (which account for over 50% of the index) led the declines, both falling 12%. Some analysts point out the mechanical rebalancing from leveraged ETFs exacerbated losses with a large share of the vehicle used to gain Kospi exposure coming as leveraged ETFs. Others point out positioning into Micron earnings due after the close on Wednesday. Given the above, Tech is the worst sectoral performer (bar Basic Resources), the sector posting losses in excess of 3%. The highest weighted chip constituents ASML -5% (Highest weighted in Europe+Tech Sector), Prosus -2.1% and STMicroelectronics -7.3%. For Basic resources, the sector has been dragged lower by declines in metals (Gold -2.5%, Silver -5.5%). Top European News German Chancellor Merz outlines his support for a capital-based pension system, saying it "strengthens the system". German Chancellor Merz confirms plan to push forward with all pension reform proposals. Britain’s biggest business lobby group, CBI, said UK firms are not seeking another Brexit referendum and have little interest in rejoining a customs union with the EU, according to FT. UK's Burnham will seek to soothe markets as he marches on number 10 and will use a speech next week to pledge to grow the economy and commit to Labour's fiscal rules, according to The Times. Burnham is considering Miliband, Streeting and Mahmood for Chancellor. FX G10s are entirely lower against the Buck (bar JPY), as USD attracts haven demand in a textbook risk-off market move (stocks/oil down, fixed/havens bid), signalling the market is gradually moving away from geopolitical trade. As you would expect, Antipodeans underperforms, Aussie fares the worst as metals suffer from the strong Buck, while JPY is the only currency stronger vs the USD after a sharp 30pip move lower as it sits towards 2024 highs. DXY firmer by 0.2% as it attracts haven demand amid tech weakness in Kospi/NQ (see equities at 09:25 BST for analysis). In terms of domestic newsflow, Fed's Goolsbee said services inflation was “a little disturbing”. The data docket is light but begins to pick up today (ADP weekly + PMIs due) heading into Thursday's GDP revisions and PCE data. DXY surpassed Friday’s high of 101.12, now looks to the May peak just below 102. JPY continues to whipsaw around multi-year lows against the Buck, with USD/JPY towards 161.50-162. Japanese officials continue attempts to bolster the Yen, but continue unsuccessful with the Greenback bid. Overnight, Japanese Finance Minister Katayama confirmed she spoke with US Treasury Secretary Bessent on Monday. Elsewhere, APAC trade saw stronger flash PMI data and mixed results of the latest 5yr JGB auction. GBP is weaker and tracks the firmer Buck with participants awaiting further updates from a likely incoming Burnham premiership. Despite Gilts continuing to outperform peers on optimistic Burnham reporting (Streeting added to Chancellor candidates/Burnham said to announce commitment to Fiscal rules), Miliband still in the picture for Chancellor is viewed by Sterling traders as an unwelcome option. As such, GBP awaits further press reporting and tracks the Buck with Cable remaining at 1.32, EUR/GBP unchanged. ING this morning writes “Regardless of politics, we keep favouring higher EUR/GBP on the back of a dovish view (no hikes) on the Bank of England”. EZ/UK PMIs were mixed (see fixed income for analysis), EUR saw fleeting strength on the French figure, which indicated a cooling of cost pressures; a move which proved fleeting as the German services and composite metric cooled (Some respondents' answers did not eclipse the signing of the US-Iran MoU). Fixed Income A firmer start for fixed income as the complex benefits from the softer energy environment, though the influence of this has diminished amid recent updates from Iran, and the weak risk tone as the KOSPI closed lower by 9.9% and has weighed on European price action, with the European Tech sector lower by over 3%. USTs firmer by seven ticks in 109-06+ to 109-14+ confines, towards but just off highs as the mentioned energy move off lows has seemingly formed a ceiling in fixed or now at least. Ahead, we have the region’s Flash PMIs before 2yr supply. A tap that should benefit from a number of factors. Bunds firmer by just over 10 ticks and are just under that from the 126.74 high. Initially moving on the above, in-line with peers and with no real reaction to the latest pension reform commentary. The main updates, aside from the APAC moves, today have been Flash PMIs for June. Firstly, France’s figures sparked some modest EGB pressure as the components all came in firmer than expected. Internal commentary pointed to a possible peak in price pressures. Thereafter, Germany was below consensus but caveated by the majority of responses coming in before the MoU signing. Nonetheless, encouragingly, the series showed that inflationary pressures had started to ease off. Finally, the EZ figure was mixed and again most responses came before the MoU. But, it already showed that lower energy prices were filtering through to businesses with inputs cost rates and selling price inflation moving lower in June. Again, pointing to a potential price spike peak. Overall, the data chimes with those who believe that expectations for further ECB tightening are overdone. A point arguably added to by the pertinent commentary from President Lagarde on Monday. As such, upcoming hard and survey data will be scoured for confirmation that prices may have peaked which, alongside the stagnation in activity, may well see a dovish repricing in the period ahead. Gilts echoed the above, higher by 35 ticks at best and to a new WTD high of 89.19. Today’s strength also comes from reporting that Burnham will next week give a speech outlining his commitment to the fiscal rules; however, The Times briefing notes that Miliband remains in consideration to be Chancellor, a point that potentially caps any further upside. PMIs for the region were weak, though price commentary was also welcome and chimes with the view that the BoE is on hold for the foreseeable. The Netherlands sold EUR 1.98bln vs exp. EUR 1.5-2bln 3.50% 2056 DSL Bond: avg. yield 3.52% (prev. 3.51%). Japan sold JPY 1.9tln 5yr JGBs; b/c 3.11x (prev. 3.22x), average yield 1.905% (prev. 2.024%). Germany sells EUR 3.807bln vs exp. EUR 5bln 2.50% 2028 Schatz: b/c 1.90x (prev. 1.58x), average yield 2.57% (prev. 2.59%), retention 23.86% (prev. 22.80%) Commodities Geopolitical newsflow remains focused on the US-Iran talks, and the sometimes mixed commentary filtering out from the respective officials. As it stands, there does not appear to be any cause for concern, with President Trump and VP Vance both sounding positive about the initial talks; the Iranian side also said good progress has been made. However, looking between the lines reveals some contradictory remarks. On Monday, VP Vance said that Iran would allow the IAEA to inspect nuclear facilities. However, Iran’s Foreign Ministry Spokesperson stated that there are no plans to let inspectors visit nuclear sites targeted in the conflict; the nuance of “sites targeted in the conflict”, potentially offers some hints to the inner workings of the proceedings between the US and Iran. Do note that the Iranian President is visiting Pakistan today. The biggest risk to the talks is Israeli actions in Lebanon. Several high-ranking Israeli officials have suggested that Israel will continue its military operations in Lebanon. Comments which come ahead of the US-mediated Lebanon-Israel talks, which are set to begin today. A confab which spans over a couple of days, and focuses on finalising “pilot zones” within southern Lebanon and long-lasting peace. Crude benchmarks traded sideways for much of the APAC session, before then moving to lows heading into the European cash open. Since, WTI and Brent have bounced a touch off lows, to currently trade towards the mid-point of the days range. In more detail, WTI Aug’26 (-0.5%) sits within a USD 72.48-74.45/bbl range and Brent Aug’26 (-0.6%) holds within a 76.43-78.23/bbl range. Spot gold (-2%) extends lower amidst the continued hawkish mood in markets, which have kept the USD elevated. For gold specifically, a number of sell-side banks have cut their price forecasts for spot gold. On Monday, Goldman Sachs cut their year-end target to USD 4,900/oz (prev. USD 5,200/oz). Its model focused on the Fed, whereby every 50bps worth of easing adds c. USD 120/oz of support to spot gold. Most recently, Deutsche Bank cut its gold forecast by 22%. Today, the yellow metal holds at the bottom end of a USD 4,091 to 4,198/oz range; it may find support at a recent low of USD 4,023/oz, if the pressure continues. Base metals follow the downbeat risk tone seen across broader markets. 3M LME copper is lower by c. 1.8% and holds within a USD 13,396.35-13,671/t range. Rabobank lowers its Q3 Brent price forecast to USD 79/bbl (from USD 103/bbl), and Q4 to USD 78/bbl (from USD 93/bbl); sees Brent averaging USD 74.50/bbl in 2027, and USD 71/bbl in 2028. US Department of Agriculture reported a new case of screwworm in a Texas goat, taking total number of domestic detections to 16 cases. Central Banks Fed's Goolsbee (2027 voter) said inflation is well above target and going the wrong way, adds need evidence this inflation is temporary and services inflation is a little disturbing. said:. We haven't had stagflation shock, and the job market has been stable. Fed Chair Warsh's approach is let's have less speculation about rates, less forward guidance, while Goolsbee said he is pretty sympathetic to that approach. ECB's Kazimir said they are data-dependent, but the direction for policy is clear. ECB's Lane said that inflation risks being above 2% for some time; increase in energy prices is expected to keep inflation well above target into H1'27. Remains attentive to both sides of the outlook. Energy shock is feeding through to broader inflation. labour market resilience, solid household balance sheets and public investment should support activity. ECB's Escriva said service-sector inflation is showing very strong persistence. Geopolitics Russia and Ukraine may swap Prisoners of War soon, TASS reported. Ukraine's capital Kyiv issues an air raid alerts and authorities ask people to seek shelter. North Korea leader Kim Jong-un said North Korea will further assert its status and role as a nuclear power, adds will accelerate broader plans, enhance nuclear arms technology and develop water deterrence capabilities. accused US and South Korea carrying out the most dangerous provocations through nuclear war machinery. To accelerate building of 10,000-ton strategic guided missile cruiser. China's Beihai Maritime Safety Administration announced that parts of the Beibu Gulf will be closed to navigation due to military training from 11:00-12:00 Beijing time on June 23rd. US Event Calendar 9:45 am: Jun P S&P Global US Manufacturing PMI, est. 54.6, prior 55.1 9:45 am: Jun P S&P Global US Services PMI, est. 51.1, prior 50.7 9:45 am: Jun P S&P Global US Composite PMI, est. 52.1, prior 51.5 10:00 am: Jun Richmond Fed Manufact. Index, est. 8, prior 13 DB's Jim Reid concludes the overnight wrap When I started in financial markets in 1995, Alan Greenspan was a towering presence and arguably the first Fed Chair to become a global rockstar. At that point, he was eight years into what would become a 19-year tenure as Chair of the Federal Reserve. However, my own memories pale in comparison to those of my colleague Peter Hooper. Peter joined the Fed in 1973, later moving to DB in 1999, and worked closely with Greenspan for over 50 years. Peter has written a thoughtful remembrance following Greenspan’s passing yesterday at the age of 100. Drawing on first-hand experience as a colleague at the Federal Reserve and later recruiting him to be an adviser at Deutsche Bank, Peter highlights Greenspan’s intense curiosity, instinct for data and markets, and ability to identify structural shifts such as the 1990s productivity boom. In many ways, Greenspan was ahead of the data—something Kevin Warsh is attempting to emulate today—so there are clear parallels between the eras. It is a personal and insightful tribute from someone who had a ringside seat throughout Greenspan’s remarkable career, and it is well worth reading in full on the DB Research Institute site. Moving onto the remembering another landmark in history, 10 years ago today, those of us on this island marched to the polls to decide whether we wanted to stay in the EU or not. Ironically, I had a long weekend planned in the French Alps and left for the airport immediately after voting and arrived to a fierce thunderstorm in the mountains and news that the UK had voted to leave. It all felt fairly biblical and instead of enjoying a break I spent all night and the next 3 days glued to my work laptop. To mark the anniversary Sanjay and Shreyas have published a piece entitled "Brexit 10 years on: What's worked, what hasn't, what's next?" See it here ahead of our first in-person Deutsche Bank Research Institute event on Thursday reviewing the topic and all things UK related given the huge events of recent days. We may still be able to squeeze you in. The irony around the anniversary is that the shadow of Brexit partly claimed another UK Prime Minister yesterday with Keir Starmer resigning and heralding in what will be the 7th Prime Minister in that subsequent decade. The only viable candidate now seems to be Andy Burnham, who won last week’s by-election in Makerfield, after rival challenger Wes Streeting endorsed him yesterday to be leader. So, although nominations for the Labour leadership are set to open on July 9, currently it looks highly likely that Andy Burnham is the only candidate who would get more than 20% of MPs backing him to stand, meaning that a formal contest would be avoided. That’s reminiscent of when Labour last changed leaders in government back in 2007, when Chancellor Gordon Brown took over from Tony Blair without a contest. Under this timetable, Burnham could become the PM as soon as mid-July. Against this backdrop, UK assets responded relatively positively, as it looks like a period of extended uncertainty and a potential summer leadership contest have been removed. Speculation that Streeting may get the job of Chancellor was seen as a positive as well given his more moderate tendencies.  The pound sterling was the strongest performing G10 currency on the day, up +0.14% against the US Dollar, whilst yields on 2yr (-4.5bps) and 10yr (-3.4bps) gilts moved in line with their European counterparts inspite of the political upheaval. Moreover, the FTSE 100 was up +0.72%, again similar to the STOXX 600’s +0.58% advance. Another G7 country in the news is Japan and this morning the currency is fairly flat after seeing a strong spike yesterday afternoon London time after it got within a whisker of hitting 40-year lows. It hit 161.93 versus a low of 161.96 in July 2024. Beyond that you have to go back to December 1986 to see weaker levels. There was speculation over imminent BoJ intervention with JNN reporting an online emergency meeting between Finance Minster Katayama and US Treasury Secretary Bessent yesterday. This meeting has been confirmed by Katayama this morning, who stated that the US and Japan are aligned on FX policy. This morning it's hovering remarkably quietly at 161.60 given all the noise. Less quiet are Asian equities which are falling on tech weakness. The KOSPI (-6.41%) is leading the declines, followed by the Nikkei (-1.66%), Hang Seng (-1.16%), Shanghai Composite (-0.37%) and S&P/ASX 200 (-0.26%). S&P 500 (-0.66%) and NASDAQ 100 (-1.19%) futures are also weak with the tech sell-off dominating.   Early morning data showed that Japan's private sector activity expanded at its fastest pace in three months in June, driven by strong manufacturing output and a return to growth in the services sector, although firms faced the sharpest rise in input costs in nearly four years. The S&P Global flash Japan manufacturing PMI rose to 54.9 in June while the services PMI climbed to 51.8 from 50.0, indicating a renewed expansion in business activity after stagnating in May. As a result, the flash composite PMI, advanced to 52.5 from 51.1, marking the strongest pace of overall private-sector growth since March. This all follows mixed markets yesterday, as tech worries overpowered investor optimism about progress in the US-Iran negotiations over the weekend. So that meant the S&P 500 slipped -0.37%, with the Nasdaq (-1.32%) and Magnificent 7 (-2.17%) posting even steeper losses, dragged down by declines by Alphabet (-4.99%) and Amazon (-4.75%). Those equity losses were compounded by the latest rise in Treasury yields yesterday, as investors continued to price in a more hawkish Fed. Indeed, yesterday saw markets price in a 98% chance of a rate hike by the September meeting (up from 93% on Friday), and the 2yr yield (+4.8bps) closed at a 16-month high of 4.23%. Meanwhile, the 10yr yield was up +5.5bps to 4.51%, and significantly, the 10yr real yield (+8.0bps) hit a one-year high of 2.26%. That rise in real yields was something Henry looked at in a note yesterday (link here), exploring why markets haven’t rallied as much as might have been expected given the US-Iran deal and the slump in oil prices in the last two weeks. Speaking of the Iran war, there were fresh signs of progress in the negotiations, with Vice President JD Vance saying that the weekend talks were “very, very good”. That follows comments from the Iranian side, who had previously said in the small hours of Monday that there’d been major progress to end the war in Lebanon. Moreover, the US issued a 60-day sanctions waiver to allow Iran to sell its oil on the international market, which was seen as one of Tehran’s demands for implementing last week’s interim deal. So that backdrop saw oil prices come down, with Brent crude (-3.31%) closing at a 3-month low of $77.90/bbl, whilst WTI (-2.32%) also fell to $74.82/bbl. Turning back to Europe, ahead of this morning's flash PMIs, ECB President Lagarde said yesterday that she saw no more need for the ECB to have a “forceful response” to the Iran War. In comments to lawmakers, Lagarde said she saw inflation returning to target over the medium term, saying that the ECB saw “no evidence yet of de-anchoring of inflation expectations or second-round effects” that warrants a “more forceful policy response at this stage.” This contrasted with some of the more hawkish messaging from the ECB last week, which saw markets dial up their conviction of further tightening this year. Those comments supported a rally in European government bonds, with yields on 10yr bunds (-3.4bps), OATs (-3.4bps) and BTPs (-4.3bps) all coming down. And there were larger declines at the front-end, with the 2yr German yield down -4.4bps as investors dialled back the likelihood of aggressive ECB rate cuts this year. Indeed, markets were pricing 32bps of ECB hikes by the December meeting at the close, down -4.5bps on the previous day. Otherwise, equities also rose, with the STOXX 600 (+0.58%) making a fresh gain, while the DAX (+0.62%) also rose. The CAC (-0.25%) struggled again and has been struggling this year largely due to its outsized luxury stocks weighting.   To the day ahead now, we’ll get June flash PMIs for the US, UK, Eurozone, Germany, and France. We'll also see US June Philadelphia Fed non-manufacturing activity, Richmond Fed manufacturing index, business conditions, France June business confidence and May retail sales. Earnings include FedEx and Carnival. Tyler Durden Tue, 06/23/2026 - 07:59

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Over the weekend, after exchanges where the US hit bridges and a desalination plant in Iran (reportedly repaired very quickly) and Iran’s response included hitting a much more important desalination and power plant in Kuwait and pounding important US operations in Jordan, the US attacks fell way back one night and CENTCOM and even Trump were quiet.

Some speculated that more Gulf states were denying the US the use of their airspace and the US was having to make a major regrouping. However, the US resumed strikes last night, with the pretext that the US had suffered two more military deaths on top of two just reported.

1 Trump had promised intensified strikes beginning more or less today if Iran did not return to negotiations, as in capitulate. And as many noted, the US had escalated last week, albeit not to the level of attacks during the initial phase of the war, not just with the number of strikes but also the targeting: the aforementioned desalination plant, bridges, too close for comfort to the Bushehr nuclear plant2 and to a nuclear site under development at Darkhovin.

Many have argued that the latest round of strikes look like shaping attacks in preparation for a ground operation, which pretty much everyone with even a modicum of military knowledge sees as insane.3 Daniel Davis has also mentioned in passing that despite all the noise about using ground forces and other signs of a buildup, such as more refueling tankers flying to Jordan, that Trump was shaken by the near-disaster at Isfahan, where a supposed rescue of a downed pilot resulted in the loss of more air assets than in any single engagement since Vietnam.

Many experts have contended that that was an actual operation, a botched attempt to remove some of Iran’s “nuclear dust.” However, Scott Ritter may have squared that circle. See his brief clip starting at 11:55: From a lightly-edited machine transcript: Jawaid: Scott Ritter thinks that Israeli lap dog Trump will soon launch a ground invasion of Iran, but he will fail miserably.

Also, this is something Iran has been wanting Trump to commit to for a long time. Ritter: There’s a a mission called a raid. Um, and I, you know, we already had US troops fighting on the ground. We did a raid to rescue a pilot. We were in limited ground combat operations there.

I think there’s a high potential that the US will conduct a raid here and there because that’s a that’s a a very specific task. A raid is is the only military mission where we plan to retreat. You know, every other military mission there’s no plan. You commit and you go, but a raid is in and out.

So maybe we can do a raid, but the idea that we’re going to land in seize territory, there’s zero chance that will happen because there’s zero chance of success. Now admittedly, if pilot rescue came about as the result of the botched operation in Isfahan, that would be debatable as a raid.

Even though the intent again was to retreat, the US would have had to stage equipment for the removal and transport of nuclear material, so there would be a short-lived occupation of terrain and not just a fast snatch and grab, as with Maduro. Nevertheless, the US military may not be totally suicidal, so the plan may be for a fast landing to inflict some sort of concrete form of damage that cannot be well inflicted from the air and then to decamp.

This segment also includes a very informative explanation of how important the operations in Jordan are to the US, and how the Iran intend is destroy bases so that the US has to retreat to Israel and then Iran will proceed forcefully against the remaining assets there.

We’ll soon turn to updates, but to start with some bigger picture considerations: it is disconcerting to see how many commentators resort to the trope that neither side can prevail on the battlefield, that they will in the end negotiate an outcome. As we pointed out, a study of modern wars found that more than half did not.

The distrust between the two sides, which has now reached the level of mutual loathing as a result of the fast breakdown of the already likely to fail Memorandum of Understanding (MOU), means any “deal” is vanishingly unlikely. Iran knew even before it entered into talks that the US and Israel intended to execute a “mowing the lawn” strategy, of keeping crippling sanctions in place and beating up on Iran every so often to weaken it and hopefully create severe internal divisions that would trigger an overthrow or balkanization.

Even if Iran’s 47 year record of taking severe punishment and surviving says this plot would probably fail, Iran had been preparing since the Iraq War for the US and Israel to launch a major campaign. After the illegal launch, the assassination of a major part of Iran’s leadership, as well as war crimes exemplified by the massacre of school children in Minab, the nation is highly unified around inflicting a decisive defeat on the US, so that it won’t even think about military action against Iran for at least a decade.

We were far from alone in making that case early in the war and Iran’s resolve has only stiffened as it can see how it has weakened the US while Iran has learned from combat and claims to have even bigger inventories of key weapons than it had at the start of the war.

Critically, Iranian leaders have said, bluntly, that negotiating with the US is not just pointless but also demeaning. Consider the germane parts of a recent statement by the Supreme Leader Mojtaba Khamenei,4 as summarized at PressTV: - Leader said the United States had once again violated the memorandum of understanding signed between the presidents of Iran and the US, proving that the signature of the American president is worthless and unreliable.

- He said bullying, hegemonic ambition, and savagery are inseparable characteristics of the United States and that Washington had once again revealed its true, unmasked face to the world. - He described the latest developments – US attacks against southern Iran, mainly targeting the civilian infrastructure – as further evidence of America’s deceitfulness, irrationality, unreliability, and wickedness.

- Leader said the United States is seeking to ignite further war despite facing heavier costs and greater disgrace. - He warned that the Iranian nation and the Resistance Front have unforgettable lessons for the United States, adding that the bravery of Islamic resistance fighters and the courageous people of southern Iran have already demonstrated examples of those lessons.

However, Araghchi subsequently gave an interview which can be read as pushing back against the Supreme Leader:5 Iran’s Foreign Minister Abbas Araghchi says that negotiations with the U.S. should be pursued even if the chances of success are only 10 percent, further highlighting disagreements between Iran’s political and military echelons.

“I am the Foreign Minister for the interests of… pic.twitter.com/uW1DzcfRhG — Ariel Oseran أريئل أوسيران (@ariel_oseran) July 19, 2026 Keep in mind also that China is still bleating about the need to settle the conflict and Pakistan and Qatar (among others) are also pressing for a resumption of the talks, so Araghchi as Foreign Minister has to keep the idea in play, irrespective of whether he privately places much stock in the idea.

6 And there is another way to read Araghchi’s talk: So they wanted to manufacture a clean record of “we exhausted every diplomatic option." Once that record existed, the hardliners with Mojtaba could shut the process down without looking like the ones who refused talks.

Moderates who pushed the channel now own the failure, and… https://t.co/Y63yYJVaEZ — Vonbury Research (@VonburyResearch) July 19, 2026 Kinetic action seems likely to continue to dominate: ADVISOR TO IRANIAN SUPREME LEADER, MOHSEN REZAEI, SAYING: “I declare it is over.

Both negotiation and war are over. If in the next two or three days the Americans continue the war, we will enter a phase of complete offense and destruction.”#Iran #IranWar pic.twitter.com/1M3A1pboH9 — Iran Now – WANA (@WANA_Iran) July 18, 2026 Robert Pape also seems confident that US escalation will continue7.

I found this discussion noteworthy because Andrew Neil strongly resisted the idea that there would be no negotiated ending and also found it inconceivable that Iran could become, as Pape has argued, the fourth world power. In other words, Neil seems to epitomize a set of normally pretty smart people who find it hard to see where the direction of travel is going because those outcomes so conflict with their priors: From a lightly cleaned up machine transcript: Pape: This is not what’s coming in the next few weeks likely.

What’s much more likely is he’s [Trump’s] going to do the close blockade and if he can then use the southern corridor with that close blockade to reopen the Strait, he’ll he’ll be probably satisfied with that. Very unlikely that’s going to work and that’s why you’ve got the 82nd Airborne and the Marines there to push back further.

Now, I’m not saying this is going to work, Andrew…. Neil: So, I’ve got to ask you some questions in this because I’m unclear. Do you think that the of the limited options President Trump now has, that escalation as you describe it is the most likely?

Pape: Yes. Neil: And that escalation will begin with a much more aggressive, more comprehensive a naval blockade of the Strait of Hormuz with the possibility of ground incursion on the northern side of the straight in Iranian territory? Pape: Yes. Yes, and it’s our and and the first part has already started this week.

So, so you’re already seeing in fact last week was the beginning of the air suppression campaign for this week. And as President Trump laid out the bombing schedule last night, the reason he will, if he if this keeps going forward, okay, just keep saying that if, he’s going to want to take out things like electric power and bridges is because he’s going to want to try to suppress as much of Iran’s military defenses as he can as he goes forward here.

And the military is giving him the plans for doing that. One place where I differ with Pape is that he posits that Congress might get out of bed in six months and Do Something to check Trump then. To again invoke Stein’s Law, if something cannot continue, it will stop.

The US and Israel can of course carry on with terrorism within Iran, such as assassinations and cyber attacks. But the level of weapons depletion and on current trajectories, shortly-arriving fuel shortages, seems very likely to put a choke chain on US aggression soon.

From Larry Johnson in The US Faces a Strategic Crisis with Iran…The Rapid Depletion of US Battlefield Missiles:8 The tables below are based on the most recent publicly available analyses from CSIS, the Payne Institute, and major media outlets (as of mid-2026), and provide a current (overly optimistic in my opinon) estimate for US inventory levels of these key weapons systems.

Please note that actual inventories are classified; these are informed estimates derived from DOD budget documents, procurement records, and reported expenditures during Operation Epic Fury (the US-Israeli war with Iran). Air Defense Missiles Anti-Radiation / SEAD Long-Range Strike (Ground & Sea-Launched) Missiles These are not just the numbers currently in the hands of US CENTCOM (i.

e., the US military command in charge of the war against Iran), these are the total numbers available to all of the US military commands. If these missiles are allocated evenly to the other two critical commands — i.e., EUCOM (European Command) and PACOM (Pacific Command) — then you begin to understand the gravity of this deficit.

Let’s take the case of the Tomahawk missile. Let’s assume there are 3,000 left (I believe that is a generous over estimate) and the remaining number are divided evenly among CENTCOM, EUCOM and PACOM… That means each command gets 1,000. Does anyone want to argue that in the event of a hot war with Russia or China that EUCOM and PACOM respectively would be able to sustain combat operations for more than four weeks?

Hell, CENTCOM fired 850 of them during the first four weeks of EPIC FURY. Here’s another major problem: All eight missile systems rely on rare earth elements — there are no exceptions among modern US precision-guided weapons. The dependence is nearly universal because rare earth permanent magnets are irreplaceable for the high-performance actuators, guidance motors, and seeker gimbals that make these weapons accurate.

And who controls the supply chain of these rare earth minerals? China!… The supply chain isn’t just about mining — it’s about processing, separation, and magnet manufacturing, which China controls: - Mining: China ~60% of global rare earth oxide production - Refining/Separation: China ~91% - Sintered NdFeB Magnet Manufacturing: China **~94%** Now to updates.

From Aljazeera’s live feed: - A vessel is on fire in the Strait of Hormuz after being hit by a projectile, forcing the crew to abandon ship. They were later rescued by a tugboat. - One person has been killed and several others wounded after the US military attacked the Iranian city of Tabriz in northwestern Iran.

The entries in the feed include ones describing how Mr. Market is taking cheer from the Iran Foreign Ministry admitting they are getting communiques from intermediaries and reviewing them as if they originated from the US. Recall that the negotiators have often developed ideas and tried to sell both sides on them.

Bloomberg’s Javier Blas, who has been a consistent seller of lower oil prices, is refreshingly precise about Iran not saying either way as to whether the missives were from the US or just the negotiators operating on their own: Iran has received “some proposals” from unspecified mediators regarding the war with the US, Iranian Foreign Ministry Spokesman Esmail Baghaei says in press conference, without elaborating.

— Javier Blas (@JavierBlas) July 20, 2026 Contrast that with the Aljazeera account: Oil prices ease after Iran says US contacts continuing through mediators Oil prices have scaled back their gains after hitting their highest in a month after Iran said diplomatic exchanges with the US are ongoing via mediators despite renewed conflict in the Middle East.

Grr. Another Aljazeera live feed entry: Iran ‘counting down the minutes’ for US ground invasion [Today’s Iran war post launched more or less complete. I will be off duty for a while. If there are any updates, they will come in the comment section later] Foreign Ministry spokesperson Esmaeil Baghaei says the United States will face “consequences of any adventure” to seize Kharg Island in southern Iran.

He added there are people in Iran’s leadership “counting down the minutes to welcome” US forces in any ground invasion. Kharg is the heart of Iran’s oil industry. It sits 55km (34 miles) off Iran’s coast in Bushehr province. President Trump has repeatedly threatened to seize the territory during the war.

A raid on Kharg could fit Ritter’s raid scenario, with the US busting things up and then leaving.9 But experts have pointed out that Iran has at least four other export routes. Kharg is the most efficient but losing it while being repaired would be inconvenient as opposed to a fatal blow.

From Bloomberg’s landing page: From US Bombs Iran for Ninth Day as Standoff Over Hormuz Deepens: The US conducted a ninth straight day of airstrikes on Iran, trying to force the Islamic Republic to stop shipping attacks and reopen the Strait of Hormuz.

The American military bombed military targets and communications networks in a three-hour operation ending around 5:30 a.m. Iranian time on Monday. Iran continued to attack US bases in the likes of Kuwait, Jordan, Bahrain and Iraq. The standoff shows no sign of easing, with Iran refusing to relent over Hormuz and insisting it has a right to manage traffic through the waterway.

Energy prices have jumped on the worsening hostilities. Brent crude oil rose to above $90 a barrel for the first time in more than five weeks in early trading on Monday. US gasoline prices climbed back over the $4-a-gallon mark, potentially hurting President Donald Trump and his Republican party ahead of midterm elections in November… Hormuz Shipping Traffic Slumps as US-Iran Hostilities Worsen The tit-for-tat attacks are getting deadlier….

Shipping volumes have slumped and the number of tankers and other vessels going through Hormuz is roughly down to the same level from the height of the conflict in March and early April… US President Donald Trump warned Iran last week he’d escalate airstrikes and widen the scope of targets until it backed down… Kuwait continues to experience some of the worst attacks from Iran.

Over the weekend, Kuwait’s main state energy company said an unspecified site sustained “significant material losses,” causing its evacuation and a number of injuries, while two power and desalination plants have been hit in recent days. And from Hormuz Traffic Near Standstill as US-Iran Hostilities Escalate: - Visible traffic through the Strait of Hormuz appeared at a near standstill Monday after Iran targeted vessels in the narrow waterway.

- A Marshall Islands-flagged bulk carrier and a liquefied petroleum gas carrier appeared to approach the strait, with the bulk carrier turning off its transponder while approaching. - The targeting of vessels will likely raise fresh concerns over the safety of ships transiting Hormuz, which could deepen disruptions to energy flows from the Persian Gulf to global customers.

Indirectly importance of US operations in Jordan, the lead story in the Wall Street Journal is Jordan Becomes New Flashpoint in U.S.-Iran War as Troop Deaths Rise. But it fails to set forth any of the juicy details that Janta Ka presents. This is the thin strategic gruel offered: For years, Jordan sought to play down its close military and intelligence cooperation with the U.

S. The U.S. aircraft that carried out strikes on Islamic State from a base in Jordan during the American war with the militants didn’t advertise the country they were operating from. But Jordan’s role is now becoming too prominent to obscure. Jordan has become an attractive location for U.

S. armed forces since it is among the most permissive in the Arab world when it comes to allowing the U.S. to operate from its bases. A bit more on Jordan: The view from Tehran. “The increased focus on Jordan may serve as part of Iran’s preparation and testing of operational concepts for more intense and precise strikes against Israel in later stages of the conflict.

Qatar and Saudi Arabia—have at times sought to impose limits… — Policy Tensor (@policytensor) July 20, 2026 By contrast, the House of Saud published a remarkably revealing document (hat tip Eugene Linden), Iran Struck Prince Sultan and No One Was Required to Say So: Iranian ballistic missiles struck Prince Sultan Air Base in Al-Kharj on July 18, wounding twelve US service members — two critically — and hitting KC-135 Stratotankers on the flight line while a second rotation was still climbing out.

Saudi Arabia’s Civil Defense Authority cleared the sirens six minutes later without naming the weapon, the origin, or the damage, and neither Riyadh nor Washington has issued an official statement since. The strike was the first direct Iranian attack on Saudi territory in approximately four months, a gap during which the IRGC struck Kuwait, Bahrain, Jordan, Qatar, and the UAE while conspicuously sparing the Kingdom.

Its return to PSAB — confirmed by a US official to Axios, corroborated by satellite imagery, and detailed by Air & Space Forces Magazine — ended whatever territorial immunity Saudi Arabia believed it still possessed. But the more consequential development is not the strike itself.

It is the silence that followed, and the institutional architecture that sustains it: a three-party managed ambiguity in which Iran, Saudi Arabia, and CENTCOM each benefit from leaving the damage question unanswered, because answering it would force a public reckoning with a PAC-3 reserve that is approaching a ceiling none of them can afford to name.

The strike was confirmed by a US official cited by Axios as “the first time the Islamic Republic has directly attacked the kingdom in four months” — a description that the State Department, the Pentagon, and the Saudi Ministry of Defence have each declined to repeat on the record.

Air & Space Forces Magazine, drawing on multiple US military sources, reported at least twelve wounded and multiple Stratotankers damaged on the tarmac. Open-source satellite imagery corroborated the impact site within the base perimeter. Iran’s state broadcaster supplied what no government would.

The missiles were launched “moments after American refueling planes took off,” a detail that only makes sense if the IRGC had real-time ISR coverage of PSAB’s tanker rotation schedule. The aircraft hit were those that remained on the flight line after the airborne pair departed — the timing was deliberate, and the targeting message was not about maximising destruction but about demonstrating that PSAB’s daily operational patterns are watched, clocked, and within reach….

Riyadh cannot confirm the strike without confronting two questions it has spent the war avoiding. The first is defensive: if Iranian missiles hit PSAB and wounded US personnel, the Sakhir Declaration — the mutual defence framework Saudi Arabia negotiated with Washington — becomes the operative instrument, and invoking it requires publicly admitting what the Arab Center DC described as the core strategic dilemma: “the PAC-3 architecture is functionally exhausted.

” The second is economic. Aramco’s August Arab Light OSP already dropped $11 month-on-month to $1.50 per barrel below Oman/Dubai, the largest such cut in over two decades and the lowest since June 2020. Confirming that Iranian ballistic missiles are landing on military installations 77 kilometres south of the capital forces a sovereign-risk reassessment that Riyadh’s fiscal position — a Q1 deficit of SAR 125.

7 billion, with Aramco’s free cash flow at 0.85 times its quarterly dividend — is not structured to absorb…. Washington faces a different but parallel constraint. Confirming the strike means confirming that 2,300 US service members at PSAB are taking casualties at a base where 43 US warplanes have been grounded since Saudi Arabia’s Operation Project Freedom in May 2026.

CENTCOM cannot describe a defensive engagement at PSAB without also describing the legal anomaly: the 1977 USMTM memorandum governing US presence is not a Status of Forces Agreement, and Project Freedom severed the operational relationship between American air power and Saudi host-nation authority.

An official statement would invite the Congressional question that the Pentagon’s communications strategy is built to defer: why are American troops still at a base where their aircraft have been grounded by the host nation, absorbing Iranian fire under a legal framework that was designed for peacetime advisory missions?

Please read this article in full. It contains remarkable operational detail. It is over my pay grade as to why it was published, but it seems to suggest considerable unhappiness at Riyadh. Due to the length of this post, we have skipped over the fact that Ansar Allah seems just about to threaten or actually close the Bab el-Mandeb strait: 🚨 BREAKING 🇾🇪 YEMEN’S HOUTHI FORCES WILL MAKE A “HUGE” ANNOUNCEMENT TODAY AT 8:30 AM ET.

REPORTS EXPECT THEM TO ANNOUNCE A BLOCKADE OF THE BAB EL-MANDEB STRAIT. TOGETHER WITH THE STRAIT OF HORMUZ, THESE TWO CHOKEPOINTS HANDLE OVER 25% OF GLOBAL SEABORNE OIL TRADE. IF TRUE,… pic.twitter.com/yjavHpPKOi — Wimar.X (@DefiWimar) July 20, 2026 This does not look terribly negotiation-receptive.

And some additional sightings from Twitter: Israelis have never felt less secure. 64% are unhappy with how the endless wars have been run. 73% are upset at how there has been no real investigation of October 7. 73% of the public also feel the government has not dealt well with the rise in crime.

No one wins from these… https://t.co/4OjhLUD14O — Shaiel Ben-Ephraim (@academic_la) July 19, 2026 These remarks would seem to negate happy thinking about negotiations: ⚡️⭕️ Iran's Foreign Ministry spokesperson Esmaeil Baghaei says Tehran is determined to exercise sovereignty over the Strait of Hormuz through measures already taken, and states the US failed to fulfill its commitments under a memorandum of understanding, so Iran will not fulfill… — Middle East Observer (@ME_Observer_) July 20, 2026 The average price for a gallon of gas hit $4, the second time it has reached that benchmark since the war in Iran disrupted global oil supplies https://t.

co/Cg8rE3XnJ7 pic.twitter.com/3UqHfwU4sc — CNN (@CNN) July 20, 2026 Done for today! See you tomorrow! ____ 1 What kind of admission of weakness is this? Part of the job description of a service member is that they may wind up dying for their country.

Admittedly, the US is widely suspected of suffering a much higher body count and covering that up. But this show of extreme sensitivity to losses again shows the US has a glass jaw. 2 Nima also discusses at some length at the top of a new talk with Larry Johnson why they look misguided.

He knows Bandar Abbas well, which is where the US has been hitting bridges so as to isolate it. Nima explains and even shows pictures that the bridges exist only to cope with seasonal floods for a few months a year. Those sluices are dry now, so Bandar Abbas is easily accessible by all sorts of routes.

3 🚨 BREAKING: Russia has evacuated 198 of its personnel from the Bushehr Nuclear Power Plant in Iran. It is believed that the plant could be targeted again. pic.twitter.com/lPoQB05qgo — GBC (@GBC_Press) July 17, 2026 4 A new trope in the US-backing commentary community is to depict the new Supreme Leader as a figurehead, which is easy to make stick given his lack of public appearances (I suspect that among other things, he is having facial reconstruction; that can take an extremely long time since procedures are done serially with healing time in between).

I believe it was on a recent Dialogue Works talk where Professor Marandi debunked one popular claim, that he IRGC was operating on its own authority. Professor Marandi described the governing structure and said the military (both the regular forces and the Guards) needed approval of the Supreme Leader for its operations.

Having said that, I have commented that Iran seems to have a Japanese-style decision-making structure, as in more bottoms-up than the West. That results in more time to make decisions but much more internal cohesion when they are reached, since those at lower levels would be able to voice concerns and make suggestions.

Upon reflection, this would make sense given that Iran adopted its “mosaic” structure of extreme decentralization so as to allow it to function well even when the leadership was killed or incommunicado, as we saw at the onset of the current conflict.

In the Japanese model, decisions are effectively made at the senior-middle level ranks, which does tend result in the board and CEO being ceremonial. But the top level can and does say no, or effectively does so by asking probing questions and sending the matter back down the chain for further study and perhaps some revision.

I have been involved in decisions in Japan where the board and CEO were highly engaged, and these were ones that were of critical strategic importance. 5 DropSite has a longer recap of Araghchi’s remarks: ⭕️ Iran FM Araghchi: Wars End Either Through Total Victory or Negotiations… Foreign Minister Abbas Araghchi: 🔹 A war must be ended precisely at the point when you hold the upper hand on the battlefield.

Ending a war is possible either through total military victory or… pic.twitter.com/kHeYhShsXC — Drop Site (@DropSiteNews) July 20, 2026 IMHO his analysis is wrong-headed. As indicated above, a bit over half the modern wars do not end with a negotiated settlement.

And it is a false dichotomy to say that to win, Iran must conquer the US and Israel. FFS, please explain Vietnam. Bad logistics and depleting weapons mean that ex nukes, the US cannot win against Iran. The question is how long it takes and how much damage is done not just to Iran but also the world economy.

Keep in mind the intermediaries are still busy but motion is not progress: #Iran's Foreign Ministry Spokesperson has confirmed that Tehran has received "ideas and proposals" from mediators. He declined to provide any further details regarding the specifics of the mediation efforts.

pic.twitter.com/8Pzs25eauc — Iran Nuances (@IranNuances) July 20, 2026 6 A memorable scene in the Daniel Ellsberg memoir Secrets is when Ellsberg, widely seen as the top US expert on Vietnam, briefed McNamara in a helicopter about how badly things were going.

McNamara said, “Just as I suspected,” and then upon landing updated the press on the great progress the US was making. 7 It has taken me too long to see why Pape often acts as if he is speaking to children or the stoopid. Making this his normal manner of presentation means that when he actually is having to speak to someone who is being stoopid, they won’t take offense.

8 However, to quibble with Johnson on another matter: he has been saying, as he does in the talk linked in Footnote 2 above, that the Iran attacks on a former US base in Syria, Al Tanf, were pointless because the base had been vacated for years. Vanessa Beeley, who has spent a lot of time on the ground in Syria and still has contacts there, begs to differ.

She says the base was recently restored to service. From Why did Iran target the US Occupation base at Al Tanf, Syria? On Friday 17th July, Iran carried out an extensive attack on the US occupation base at Al Tanf in Syria. A drone and missile strike targeted a US Special Operations Command base in south-eastern Syria..

the first strike on Syrian territory since the toppling of the former government in December 2024. In a statement, the IRGC said its aerospace forces conducted what it described as the 11th phase of “Operation Nasr-2,” targeting the strategically located base near Syria’s borders with Iraq and Jordan.

The IRGC further claimed the attack destroyed a radar installation and several U.S. military helicopters, while alleging that many American personnel were killed. This strike occurred as the build up of both Turkish and HTS military forces increases inside Syria, along the border with Lebanon and in the coastal region to the north of Lebanon.

I have been reporting on this here and here. Syrian sources provided more detail on the attack: Despite previous reports of an almost total evacuation of the Al Tanf base, located on the borders of Syria, Iraq and Jordan, almost 5 months ago – the intensity of the strikes suggested a shift in the site’s operational status.

This was not an empty base, in fact, according to sources, the IRGC’s tracking systems and human intelligence in the region detected U.S. forces airdropping “Special Forces” units into the base approximately two weeks before the attack. Analysis would suggest that the purpose of these drops might be to prepare for a ground incursion across Iraqi territory (Sulaymaniyah Axis) in coordination with the local Kurdish separatist factions in Iraq.

One military analyst told me: The attack reflects the operator’s ability to breach the secrecy surrounding U.S. movements and to convert radio and visual data into precise target coordinates. According to reports from inside Syria, the strikes inflicted direct damage on the base’s newly constructed infrastructure, neutralised the US elite combat force and derailed the Iraq-Axis operation against Iran.

Of course, US media will not report on the planned operations or on the number of casualties – such a critical security breach and the significant scale of damage, as reported, will not be revealed. 9 Maybe mines?

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- Vessel traffic through the Strait of Hormuz has slumped since U.S. President Donald Trump's blockade took effect last week. - Crossings through the Strait have fallen sharply across multiple shipping datasets with renewed U.S. strikes on Iran. Vessel traffic through the Strait of Hormuz has slumped since U.

S. President Donald Trump's blockade took effect last week, with shipowners increasingly avoiding one of the world's most important energy corridors as fighting between the U.S. and Iran intensifies. Crossings through the Strait have fallen sharply across multiple shipping datasets with renewed U.

S. strikes on Iran, Tehran's declaration of a blanket ban on maritime traffic and fresh attacks on commercial vessels has prompted operators to reassess the risks of entering the Gulf. Lloyd's List Intelligence recorded just 53 vessel transits in the week through July 20, down 66% from 157 the previous week.

Tanker and gas carrier movements, which are the ships responsible for transporting most Gulf crude oil and liquefied natural gas, dropped to 30 crossings from 90. Kpler data similarly show activity deteriorating almost immediately after the blockade began.

Daily crossings, which had averaged more than 20 vessels before July 15, fell to 16 that day before dropping to single digits on July 16. Traffic remained subdued through the rest of the week, with only sporadic recoveries. The latest slowdown reverses weeks of gradual normalization after the mid-June ceasefire had encouraged some shipowners to resume Gulf voyages.

Instead, the renewed fighting has once again nearly emptied the strategic waterway that carries roughly a fifth of global oil consumption. "Things have slowed down significantly since tensions reignited," said Bridget Diakun, senior risk and compliance analyst at Lloyd's List Intelligence.

"That's not surprising - people pull back and reassess, as you'd expect." Traffic has not disappeared altogether, however. "Every single person has a different risk appetite," Diakun said. "We're still seeing tankers crossing in and out, it hasn't ground to a complete halt.

" Rather than recovering steadily, vessel movements are likely to continue coming "in ebbs and flows" as shipowners seize brief windows of perceived safety before pulling back again whenever tensions escalate, she said. S&P Global data painted a similar picture.

Just 40 vessels transited the strait between July 17 and July 19, averaging roughly 13 crossings a day, while weekly traffic through July 19 fell almost 50% from the previous week. Commercial ships still accounted for more than 70% of traffic over the period, although only about one-third were assessed as compliant with maritime restrictions.

Iran-linked and sanctioned vessels continued to dominate many movements, suggesting mainstream international shipowners remain reluctant to return. "The latest escalation shows how expectations of a rapid opening of the Strait were premature," said Saul Kavonic, head of energy research at MST Marquee.

"The hostilities and reimposed blockade set the conflict back on an escalatory trajectory," he said, adding that flows through Hormuz had dropped to around 15% of pre-war levels. Oil could retest $100 a barrel if the current intensity of fighting persists for several weeks or if regional energy infrastructure comes under attack, he told CNBC via email.

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The UK Maritime Trade Operations center reported that a tanker was struck by an unknown projectile in the Strait of Hormuz early Tuesday. Two additional vessels were reported attacked in the area within the past day, with Iran's Revolutionary Guard claiming responsibility for those incidents.

The United States military stated it conducted strikes targeting Iranian capabilities used against commercial shipping in the strait.

Location: Strait of Hormuz
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The US and Israel conducted strikes on Iranian targets beginning in February, after which Iran closed the Strait of Hormuz and carried out strikes on sites across the region, including Dubai. Following the collapse of a short-term ceasefire, US strikes on Iranian sites continued for at least nine days.

The UK Foreign, Commonwealth and Development Office has not altered its guidance for the UAE since removing the "all but essential travel" advisory on 18 June and states that the situation remains unpredictable.

Location: Dubai