Rastreador de la Crisis Irán-Golfo 2026
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strikeJul 9, 2026

Futures Rise, Oil Drops As Markets Ignore Latest Middle East Airstrikes

Summary

Futures Rise, Oil Drops As Markets Ignore Latest Middle East Airstrikes Futures are higher (although off session highs), and oil erased overnight gains as the market moved past the latest Middle-East flare up which saw the US military strike 90 Iranian targets for a second day and Tehran retaliated against American allies in the Persian Gulf. And like during previous escalations, this time nobody believes it will last. As of 8:00am ET S&P 500 futures rose 0.2% and Nasdaq 100 contracts gained 0.6% as semiconductor stocks advanced in Asia, Europe and US premarket trading after SK Hynix drew strong demand for its offering of ADRs. Mag7 stocks are mixed, with META tumbling on a Reuters report the company has signed long-term contracts for memory, networking gear and flash storage, refuting the market's expectation that the company is starting to ease back on capex spending. The FTSE 100 lags and is down 0.8% as AstraZeneca shares slump 9% after its Wainua drug failed to prevent heart problems. . Cyclicals, ex-Energy, are rebounding led by Fins and Industrials. Momentum is poised for another strong day, this time with Beta. Brent traded near $79 a barrel after swinging between gains and losses. Bond yields are down 2bps to up 1bps as the curve twists steeper ahead of today’s 30Y auction; the 10Y yield trades at 4.59%, near a one-month high. Commodities are weaker with Ags and Energy selling off but there is a bid to metals led by Precious. The Bloomberg Dollar Spot Index is also little changed. The kiwi is the strongest of the G-10 currencies, rising 0.6% against the greenback after some hawkish remarks from RBNZ Governor Breman. Precious metals advance along with Bitcoin. Today’s macro data focus is on jobless data and existing home sales with the macro focus shifting to next week’s CPI / PPI, Retail Sales prints as earnings season kicks off.  In premarket trading, Mag 7 stocks are mixed (Meta Platforms -0.1%, Microsoft -1%, Tesla +0.2%, Nvidia +0.2%, Amazon -0.6%, Apple -0.2%, Alphabet -0.3%) Ceco Environmental (CECO) rises 3% after JPMorgan initiated coverage of the air-purification equipment provider with a recommendation of overweight, citing its acquisition of Thermon. IBM (IBM) slips 3% as Starbucks is developing in-house tools with the help of artificial intelligence that could replace some software applications it now buys from the company. Ionis Pharmaceuticals (IONS) slumps 19%, while AstraZeneca falls in London, after a late-stage trial of the companies’ gene silencer drug Wainua showed a failure to help prevent heart problems in patients with a rare and potentially fatal disease of the organ. Developers of rival cardiomyopathy drugs gain: Alnylam Pharmaceuticals (ALNY) +17%, Bridgebio (BBIO) +13%. Levi Strauss (LEVI) falls 4% after after the apparel company’s increase to its forecast underwhelmed investors. Mattel (MAT) slips 2% after Goldman Sachs analyst Stephen Laszczyk cut his recommendation on the toy maker to sell from neutral, and cut his price target to a Street-low $12 from $15. Salesforce (CRM) falls 4% after KeyBanc downgraded the software company to sector weight, noting a lack of momentum in the the company’s Agentforce AI product. Simply Good Foods (SMPL) rises 13% after the packaged-food company reported adjusted earnings per share for the third quarter that beat the average analyst estimate. In other news, PepsiCo narrowly missed estimated for second-quarter organic sales growth as the earnings season for the June quarter got underway. Bain Capital has sold its entire stake in flash memory chipmaker Kioxia. AstraZeneca and Ionis Pharmaceuticals’s gene silencer drug Wainua failed to help prevent heart problems in patients with a rare and potentially fatal disease of the organ, sending Ionis shares plunging in premarket trading. Porsche deliveries slumped 16% in the first half, dragged down by weak demand in North America and a decline in China. The calmer mood in markets comes despite an escalation of violence in the Middle East that is threatening efforts to reach a permanent US-Iran peace deal. The US military hit about 90 Iranian targets Wednesday to degrade Tehran’s ability to attack commercial shipping in the Strait of Hormuz. Traders say that while the tensions reflect the fragile nature of the truce between the sides, neither government would want a full-scale return to war and that the parties would likely return to negotiations. “This is the new status quo; it’s an uneasy equilibrium, but an equilibrium nonetheless,” said Geoff Yu, a senior macro strategist at BNY. “You just need to factor in the volatility in your asset allocation.” Global bonds were modestly higher as two days of an oil-driven selloff came to an end. The yield on two-year Treasuries eased two basis points to 4.20%. The dollar was little changed. After Wednesday’s minutes of the Federal Reserve’s June meeting showed that some committee members saw a case for a rate increase, traders will now wait for next week’s inflation data and Chair Kevin Warsh’s testimony to lawmakers for another steer on the path for interest rates. New York Fed President John Williams will take part in a moderated discussion later on Thursday. “The only reason the July meeting wasn’t live was because oil prices were basically where they started the war,” Bob Elliott, chief investment officer at Unlimited Funds, told Bloomberg TV. “That’s changed. The conflict in Iran and the Hormuz problem has not really been resolved.” In tech, SK Hynix’s US listing is said to be more than seven times oversubscribed, as the South Korean memory chipmaker prepares to price its offering later today. With its ADRs set to trade for the first time on Friday, arbitrage investors are without a historical benchmark for what constitutes a normal premium, making it far harder to judge when a spread is attractive or stretched. On the subject of memory, the knock-on effects of ongoing component price inflation could dampen hardware growth expectations, with Citi forecasting 2026 PC units to fall 15% in 2026, and smartphones to decline 12%.  As Bloomberg notes, an interesting divergence is emerging under the surface of volatility. While the VIX Index continues to exhibit placid price moves, single stock volatility, expressed through the S&P 500 Dispersion Index, closed at a one-year high on Wednesday. When it comes to AI, massive spending commitments are set to sustain the investment theme around the technology for two to three years, according to BlackRock Inc.’s Helen Jewell, even as tech giants gradually turn cash-flow negative and start raising debt to fund their buildouts.  “From an investment perspective, you lean into the AI theme, you do the secondary beneficiaries of that, but you need to diversify those portfolios,” Jewell told Bloomberg TV. “Healthcare, Latam, even the UK.” Consumer stocks are in focus with Costco reporting a deceleration in June comps relative to May, while Levi Strauss is lower in premarket trading after a decent beat and raise report fell short of some expectations for a more punchy forecast. It follows BofA noting that clients had put the most money into consumer discretionary stocks ever last week.  In politics, Graham Platner suspended his Senate campaign in Maine following a sexual assault allegation that caused his support from fellow Democrats to collapse. And Democratic infighting is threatening to undermine the party’s midterm targets. Europe's Stoxx 600 rises 0.4% after its worst day since March. Miners and banks are the best performers while healthcare lags its sector peers.The FTSE 100 lags and is down 0.8% as AstraZeneca shares slump after its Wainua drug failed to prevent heart problems. Here are some of the biggest movers on Thursday: Glencore rises as much as 3.9% after Goldman Sachs raised the diversified miner to buy from neutral, citing commodity leverage, earnings upside and valuation support. Nordex shares gain as much as 5.2% after the German wind turbine maker said it recorded 3,054MW of orders in the second quarter, above expectations. Computacenter shares rise as much as 14% to a record high after the UK IT reseller tipped full-year results to be “comfortably ahead” of market expectations, showing it continues to benefit from US hyperscalers’ data center buildout. Admiral Group rallies as much as 2.2% after Goldman Sachs upgraded the car insurance provider to neutral from sell and set a Street-high price target, citing an upturn in UK motor market pricing. Schott Pharma shares jump by a record 22% after the company improved its guidance for the full year, prompting an upgrade at RBC Capital Markets. The stock is trading at its highest level since October. Wolters Kluwer shares rise as much as 7.3% as JP Morgan upgrades its rating on the IT firm to overweight from neutral and lifts its price target, citing a “compelling” valuation and the potential for interest from private equity. Sampo gains as much as 2.3% after the insurer was upgraded to buy from neutral at Goldman Sachs, which sees Nordic markets and an upturn in UK motor pricing driving operating earnings growth through 2029. Erste shares rise as much as 3.4% after Goldman Sachs resumed analyst coverage with a buy rating and a €150 price target. Deutz shares rise as much as 10% after the German engine manufacturer said it agreed to buy closely held military-vehicle maker FFG Flensburger Fahrzeugbau Gesellschaft. Pepco gains as much as 5.2% after the discount retailer reported acceleration of like-for-like sales during the 3Q period ended in June. Playtech shares rally as much as 20% after the maker of gaming software said its performance in the first half was materially ahead of expectations and lifted its full year guidance. Suedzucker shares rise as much as 4% after the German food company raised its revenue outlook for the year. AstraZeneca shares slump as much as 9.9% after a late-stage trial showed the gene silencer drug Wainua failed to help prevent heart problems in patients with a rare and potentially fatal disease of the organ. Capita shares plunge as much as 20% after the outsourcing company warned issues with a contract will hit 2026 profit, leading analysts at RBC Capital Markets to cut their forecasts and price target. Asian stocks swung between gains and losses as concern over renewed Middle East tensions was countered by optimism toward the artificial intelligence trade.  The MSCI Asia Pacific Index was 0.1% higher after earlier climbing as much as 1% and falling 0.5%. Most technology shares gained, with SK Hynix and Kioxia Holdings among the major contributors to the gauge’s advance. Mainland China’s CSI 300 Index jumped more than 2% as chip stocks advanced. Shares in Japan and South Korea also rose, while those in Hong Kong and Taiwan fell.  Oil fluctuated as traders assessed the outlook for Middle Eastern crude supplies after fresh hostilities between the US and Iran, raising concerns for global energy supplies and posing a fresh challenge Asian economies that are mainly oil importers. Investors are reassessing the sustainability of AI-driven rally, as investors looked to earnings season for the next catalyst.  In FX, the Bloomberg Dollar Spot Index is also little changed. The kiwi is the strongest of the G-10 currencies, rising 0.6% against the greenback after some hawkish remarks from RBNZ Governor Breman. In rates, treasuries are mixed with the curve steeper, pivoting around little-changed 10-year sector, as front-end tenors unwind some of their oil-driven losses of the past two sessions. Long-end tenors lag with WTI crude futures extending recent gains after IRNA report that the perimeter of Bushehr Nuclear Power Plant was hit by US projectiles. US front-end yields are about 2bp richer on the day, long-end yields 1.5bp cheaper, steepening 2s10s and 5s30s spreads by 2bp and 2.5bp respectively. 10-year, little changed around 4.58%, trails bunds and gilts in the sector by around 3bp. European government bonds rise with UK and German 10-year yields falling 2-3 bps each. US 10-year borrowing costs are flat.This week’s Treasury auctions conclude with $22 billion 30-year reopening at 1pm, following strong demand for Wednesday’s 10-year note sale; WI 30-year yield near 5.09% is 7bp cheaper than last month’s auction, which tailed by 1.2bp. Focal points of Thursday’s US session include weekly jobless claims data and 30-year bond reopening, on the heels of good demand for Wednesday’s 10-year note sale. . In commodities, brent crude futures are little changed near $78 a barrel having erased earlier gains seen after the US military struck Iran for a second straight day. Precious metals advance along with Bitcoin. US economic data calendar includes weekly jobless claims (8:30am) and June existing home sales (10am). Fed calendar includes Williams (9am) and Logan (1:30pm). Market snapshot Top Overnight News US, Iran Trade Airstrikes as Fears Grow of a Return to War: BBG The Iran War threatened a food crisis. The next Gulf conflict could do the same: RTRS The Red Flag That Led to Graham Platner’s Implosion Was Hiding in Plain Sight: WSJ Meta to put AI chip into production in September as it looks to double computing capacity, memo shows: RTRS An Impending IPO Boom Has Sparked FOMO Among San Francisco Home Buyers: WSJ China consumer price growth weakens in June while producer inflation rises to near 4-year high, squeezing manufacturers: RTRS U.S. Targets One of Cuba’s Last Lifelines: Its Army of Overseas Doctors: WSJ Ukraine’s Six-Part Strategy to Survive the Global Run on Patriot Missiles. Kyiv is trying to mitigate the shortage of missile interceptors that has left its cities exposed to Russia’s ballistic missiles: WSJ The US Senate committee will reportedly vote next week on a bill to toughen the US government ban on Chinese automakers from entering the US market. Counterfeit Air-Bag Parts Are Killing U.S. Drivers—and the Government Can’t Stop It: WSJ Trump said he is a bigger fan of SAVE America than the housing bill; Trump said he will be asking for a rehearing by the Supreme Court on birthright citizenship: Truth Social Iran War US CENTCOM announced the completion of its most recent round of strikes against Iran, in which forces struck around 90 Iranian military targets. There were reports of fresh explosions in Bandar Abbas, Sirik and Hormozgan. There have also been reports of explosions in Abu Musa Island and Bushehr. Nour news reported that the attack on Bushehr did not cause any damage to the nuclear power plant. The IRGC later announced that two US bases in Kuwait and two base in Bahrain were attacked and threatened that response will be extended to other US bases in the region if the US repeats its attacks. Trump said Iran was just hit very hard and we have many ways to win. He added that he do not know if Iran will honor a deal but Iran wants to make a deal badly. A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks initially proved resilient to the recent US-Iran strikes, with the majority of indices opening with decent gains. However, as the session progressed, market reversed, with the Nikkei 225 the only index printed gains. The reversal came without a clear driver, which highlights the extreme volatility in equity markets. ASX 200 began trade with losses and continued to trade in the red, however stabilised above 8,700. Energy was the sector outperformer, while Metals & Mining lagged for a fourth straight session. Nikkei 225 was the only index printing gains, helped by gains in Kioxia, after Bain Capital announced the sale of its entire stake, and  Tokyo Election, as it highlighted the ability to cut chip gear delivery times by 50%. KOSPI initially surged at the open, following on from the tech-led gains stateside, with Samsung and SK Hynix printing gains of over 5% at one point. However, the index reversed, driven by the losses in the two tech giants, highlighting the extreme volatility in the South Korean benchmark. The KOSPI volatility index currently stands at 87.41, compared to Nasdaq’s 27.86. Shanghai Comp. and Hang Seng opened with modest gains but gave back slightly. It was another day of IPOs for the Hang Seng, with the introduction of Luxshare Precision Industry, which didn't start as hoped. Top Asian News Japanese Chief Cabinet Secretary Kiara said they are watching markets with a high sense of urgency. China announces issuance of guidelines to promote the retail sector. South Korean official said Won weakness is temporary. European bourses (STOXX 600 +0.6%) opened with gains as markets generally look through the geopolitical escalation. FTSE 100 is the laggard as energy majors pull back and AstraZeneca slumps, IBEX 35 is the clear outperformer after US-Spain trade-related underperformance on Wednesday. To briefly recap events overnight, tit-for-tat strikes were conducted by the US on around 90 Iranian targets, and the IRGC fired on military bases in Bahrain and Kuwait. Markets remain optimistic, focusing on remarks from US President Trump, who said he spoke with Iran, and that they want to make a deal. European sectors opened with a positive, risk-on bias and continue this way in quiet EU trade. Tech and Basic Resources outperform, while Energy and Utilities are the laggards. Stock specifics include: AstraZeneca (-9%) CARDIO-TTRansform Phase III trial did not meet the primary endpoint of efficacy around CV mortality; Deutz (5.5%), To acquire FFG Flensburger Fahrzeugbau Gesellschaft for EUR 1.6bln. Top European News Andy Burnham has pledged to rebuild the country's hard power by ensuring that billions of pounds of additional defence spending is focused on the UK rather than given to American or European companies, according to the Times' Swinford. FX In short, the USD is a touch softer at the expense of G10s across the board ex-CAD which has been hit by the energy pullback. Kiwi continues to lead post-RBNZ. NZD continues to climb, as high as 0.5739 against the USD, approaching the 22nd of June peak at 0.5741 and numerous levels thereafter. The narrative for the Kiwi is a continuation of the move seen following the RBNZ, and as the last session or two's worth of energy action adds to, and arguably brings forward, the tentative hawkish guidance from the Bank. As a reminder, the statement said “While further OCR increases appear likely at upcoming meetings, their timing is highly uncertain.” CAD lags. USD/CAD at a 1.4188 peak and threatening to move higher despite energy lifting off lows, but with WTI and Brent still lower by around USD 0.40/bbl on the day. Numerous levels are in focus on either side, with the direction likely to remain firmly and almost exclusively at the whim of energy, barring a trade or similar development. EUR and GBP both benefit from the USD downside. EUR/USD as high as 1.1449 and Cable to 1.3431. However, the last 30 minutes or so have seen a bit of a bounce in energy, still in the red but only by around USD 0.40/bbl vs downside of c. USD 1.10/bbl at most. Action that has allowed the USD to fight back a touch, and weighed on peers with GBP/USD down to a 1.3413 low and EUR/USD back towards the overnight 1.1416 base. Given this, the DXY remains in the red and below 101.00, but only just and is eyeing a return into the green. For the EUR, we look to the ECB Minutes for June. However, the significant amount of developments on the geopolitical front since then mean the account is even more stale than typical. UK participants await the formal start of the Labour leadership process, though it is not expected to be a contest with just Burnham to enter. USD/JPY under modest pressure, broadly in-fitting with the action seen in other G10s as the USD dictates. At the mid-point of narrow 162.24-62 parameters. Specifics include Chief Cabinet Secretary Kihara saying they are watching markets with a high sense of urgency. Fixed Income A firmer start to the day for fixed income, after a relatively rangebound APAC session on account of the lack of energy follow-through to the tit-for-tat strikes by the US and Iran overnight, with the narrative potentially being that the strikes are no more of an escalation than what we saw on Tuesday night. Overnight, USTs held around 108-30 and were near-enough flat, Bunds similar between 125.20-30, firmer by around 10 ticks. Thereafter, in the early European morning, US President Trump said Iran “called a while ago” and they “want to make a deal”, in-fitting with his overnight language; however, the indication that contacts, likely via mediators but unconfirmed, have occurred allowed energy to pull back and lifted fixed. This was enough to bring USTs to a 109-03+ peak. However, in recent trade, as the energy complex comes off worst levels US paper has flicked slightly into the red. Bunds as high as 125.40, firmer by 26 ticks at best but well shy of the week’s opening level just below 127.00. Specifics for the bloc light, aside from ECB Minutes for the June meeting, which are likely more stale than usual given the MoU and more recent flare up. Gilts opened with gains of 28 ticks, reacting to the early-morning pickup in peers. Since, it has extended to an 87.62 peak with gains of just over 50 ticks; albeit, as is the case with peers, the benchmark remains well shy of Monday’s 88.93 opening level. For the UK, BoE’s Breeden is on the docket and may well provide further insight on Gilt-related reform. Additionally, the Labour leadership nomination process formally opens, if as expected only Burnham contends then he will be PM around the 20th of July. Japan sold JPY 2.5tln 5-year JGBs; b/c 3.43x (prev. 3.11x), average yield 2.020% (prev. 1.905%). Lowest accepted price 99.88 (prev. 100.35). Weighted average price 99.91 (prev. 100.41). Tail in price 0.03 (prev. 0.06). China Interbank bond market regulator is to reportedly curb short-term bond issuance by local government financing vehicles. Australia sold AUD 150mln 0.25% November 2032 I/L AGBs: b/c 3.23x (prev. 4.42x), average yield 2.1808% (prev. 2.2373%). Commodities Focus remains on the turbulent geopolitical situation. Overnight, the US struck various regions in Iran, aiming to degrade the IRGC’s ability to attack commercial ships. Iran responded with its own attacks on US bases in Kuwait and Bahrain. Following the strikes, US President Trump said that Iran called a short while ago, and that they want to make a deal. Details are light at this stage, and it remains to be seen whether a call actually took place, and whether Trump was truthful of Iran seeking a deal. For now, market sentiment is positive, with traders focusing in on: a) Trump’s deal comments, b) no large-scale war so far, c) the Strait remaining open. On the latter point, whilst ships continue to traverse the Strait of Hormuz, Reuters reported that that some war insurers advised shipowners to pause Hormuz voyages after the latest attacks. Crude benchmarks extended lower this morning, after trading with mild strength overnight. However, the complex now trades flat on the session, as markets digest the overnight strikes. Spot gold (+0.9%) trades slightly firmer this morning, thanks to the softer USD and lower energy prices. Currently holding above the USD 4.1k/oz mark, and trades within a USD 4,054-4,118/oz range. Elsewhere, base metals are entirely in the green, following the positive risk tone. 3M LME copper trades at the upper end of a USD 13,241-13,447/t range. Elsewhere, for Lithium markets, reports have suggested that Chile’s lithium exports have almost tripled Y/Y. Stavropol governor said a fire at the industrial site in Stavropol has intensified, reaching fuel tanks, Interfax reported. UK announces issuance of electricity supply warning as heat wave strains grid. Trade/Tariffs US President Trump said a lot of good trade deals were made with Turkey; Spain was very generous today as they honoured a request for lots of payment. A US official said that the US Treasury will work with USTR and the Commerce Department to present President Trump with a menu of Spanish products that may be subject to a trade embargo in the coming days. Central Banks BoJ Osaka branch manager said many companies in the region expect solid earnings and share the need for further wage increases to secure workers amid labour shortages; expect significant price rises ahead. BoJ maintains its assessment for all 9 of Japan's regions. Many regions said the risk of sharp drop in exports and output has declined somewhat. Many regions said firms were maintaining robust capex plans, increasing chip equipment and chip orders due to expanding global AI demand. Many regions said firms, including smaller ones, offered high wage increases this year, though some said it could be difficult to keep a hiking pay. RBNZ Governor Breman reiterates that the neutral OCR range is centred around 3%, need to read the economy to assess where the neutral rate is. PBoC set USD/CNY mid-point at 6.8036 vs exp. 6.7978 (prev. 6.8077). BoK Governor Shin said they are in talks with other central banks all the time to discuss markets, sees a strong chance of a stronger KRW. Taiwan Central Bank Governor said concerns remain about the possibility of an AI bubble. BoK Governor Shin said interest rates need to be raised at an appropriate time. BoK said KRW weakness is sharper than other major currencies, will continue making market stabilising efforts, inflation seen exceeding target with demand-side pressure growing gradually. Geopolitics: Overnight strikes: At the direction of the Commander in Chief, US Central Command forces have started conducting additional strikes against Iran to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz. The United States is holding Iran accountable for recent unjustified aggression against commercial shipping and civilian crews freely navigating a vital international waterway. US military base in Kuwait was hit in an Iranian retaliatory attack, while explosions heard at the US Fifth fleet HQ in Bahrain. Iranian missiles targeted the Azraq base in eastern Jordan, Fars reported. Iranian opposition sources report that maritime industries, shipyards, and the Revolutionary Guards' naval base in Bandar Abbas were attacked, report Kan News. Geopolitics: US Commentary: US President Trump said Iran called a while ago, they want to make a deal. US President Trump's frustration with Iran was due in part to his anger over the Strait not being fully open yet and that Iran hit ships transiting the Strait, CNN reported citing a US official. The official added that Trump is losing patience with the pace of negotiations, specifically Iran's appearing to slow walk Washington on the nuclear talks. US President Trump posted "This is in retribution for yesterday’s bombing of ships by Iran. If it happens again, it will get much worse!". US President Trump said Iran was just hit very hard, we have many ways to win; do not know if Iran will honour a deal but Iran wants to make a deal badly. Europe wants to help on Iran. A US official said the ceasefire with Iran has been halted, at least temporarily, CNN reported. "Everything depends on Iran's response - if they continue to shoot, the night's events could become a daily, weekly event. We are prepared," i24News reported citing a US source. The length and severity of the new campaign depends entirely on Tehran's next moves, Axios reported citing a US official; The White House is preparing for a multi-day or multi-week exchange of fire with Iran over the Strait of Hormuz. Israel has no connection to the US strikes on Iran, Al Arabiya reported citing an Israeli military source. Any attempt to target Israel will be met with a swift, decisive and strong response. Geopolitics: Iran Commentary: Iran's Bushehr Governor said that US attacks on a nuclear plant in the region are not true. Iran's advisor to the Supreme Leader Rezaei said "martyr Khamenei taught us not to fear American and showed that falsehood will perish. Await the hard slap from the Iranians". Iran's IRGC said they will respond to the targeting of a bridge in Aqqala, Al Arabiya reported. Iran's IRGC said two US bases in Kuwait and two base in Bahrain were attacked, response will be extended to other US bases in the region if the US repeats its attacks. Iranian Parliament Speaker Ghalibaf said America has not yet learned that bullying and breach of promise are no longer free, adds the Strait of Hormuz will only open with Iranian arrangements, not American threats. The US attack on Bushehr did not cause any damage to the nuclear power plant, Nour news reported citing a source. Geopolitics: Lebanon: "The US ambassador in Beirut: Negotiations between Lebanon and Israel have moved to Rome for technical reasons", via Al Arabiya. Preparations are underway regarding the start of work in the pilot areas. Israeli Defence Minister Katz said they will remain within the Lebanon security zone and will operate within it until Hezbollah is disarmed. Geopolitics: Ukraine: Ukraine's Military said it struck 12 Russian tankers in the Sea of Azov. Ukrainian President Zelensky said the military has struck Russian oil depots in the Tver and Stavropol Regions; also strikes on a Russian oil pumping Station in Ufa and oil terminal in the Rostov region. reported of explosions in Dnipro, Ukraine. A Russian official said two tankers were attacked by drones in the Sea of Azov. A Russian governor said a fire has occurred in one tank of the Tverskaya oil deposit enterprise as a result of a UAV attack and all districts of the Kershon region are partially or completely depowered, Interfax reported. Russian governor said a UAV raid caused a fire at an industrial facility in Stavropol, Interfax reported. Geopolitics: Others EU reportedly puts trade ban with Israeli settlements on the table, Euronews reported. US President Trump said have not decided on pulling troops out of Greenland. Wednesday's strikes were broader in scope than the strikes the day before, targeting IRGC coastal radars, anti-ship missile sites and air defence systems, Axios' Ravid reported citing a senior US official. US Event Calendar 8:30 am: Jul 4 Initial Jobless Claims, est. 217k, prior 215k 8:30 am: Jun 27 Continuing Claims, est. 1814k, prior 1814k 10:00 am: Jun Existing Home Sales, est. 4.2m, prior 4.17m 9:00 am: United States Fed’s Williams in Moderated Discussion 1:30 pm: United States Fed’s Logan Moderates Panel on Market Liquidity DB's Jim Reid concludes the overnight wrap The US has now conducted a second consecutive day of strikes on Iran, reportedly targeting around 90 sites including air defence systems, missile and drone facilities, and coastal surveillance infrastructure. This marks a clear escalation, with Washington signalling it is prepared to sustain operations to protect shipping in the Strait of Hormuz. In response, Iran’s Revolutionary Guard has reportedly struck US-linked bases in the Gulf and warned of further retaliation, raising the risk of a broader regional conflict. President Trump said that he would not stop negotiations but that “I just don’t know if they’re worthy of making a deal. I don’t know that they’re going to honor the deal.”  Asian equity markets are mixed overnight, with the renewed US military action against Iran and higher oil prices (+1.03% at around $78/bbl but under yesterday's peak above $80) weighing on risk appetite. Japan’s Nikkei (+1.55%) is the standout performer, supported by chip-related buying. Elsewhere, the KOSPI (-0.16%) is rebounding from an earlier drop of close to 2 percent even if it had moved positive when I started writing this paragraph! Chinese markets are mostly lower, with the Hang Seng (-0.78%) and Shanghai Composite (-0.89%) declining after soft inflation data. The S&P/ASX 200 is also down (-0.45%). S&P 500 (+0.17%) and Nasdaq (+0.18%) futures are up alongside Stoxx futures (+1.03%) which is being helped by a late US recovery last night after the European close.   Japan’s five-year government bond auction saw solid demand, supported by elevated yields. The bid-to-cover ratio came in at 3.43, above the previous auction's 3.11 and the 12-month average of 3.35. The US-Iran conflict and associated oil concerns had built up through the day yesterday, amidst growing fears that last month’s interim deal was coming apart. Oil prices immediately jumped in the London morning by around $2/bbl after President Trump said on the ceasefire that “For me, I think it’s over”. Then later on, Trump said that the US would “probably hit them hard again tonight”, and that “We may put it back, the blockade, and it’ll only be a blockade for Iran”. Meanwhile on the Iranian side, an aide to the Supreme Leader said in a post that “We have proven time and again that adventures will receive an immediate response”. So collectively it felt like the most serious escalation since the deal was agreed last month.   All that led to a clear reaction for oil prices, with Brent crude (+5.20%) posting its biggest daily gain since May 4th, peaking at $80.59/bbl but closing a couple of dollars lower. For reference, that’s still a long way beneath its recent peak in absolute terms, having approached $120/bbl during the initial phase of the conflict. But it’s a clear shift away from the downward trajectory for oil back in Q2, and the various headlines revived fears about a more persistent inflationary shock. Indeed, the 1yr Euro inflation swap surged +26.8bps yesterday to 2.14%.   With stagflation concerns back on the agenda, that led investors to price back in more rate hikes. For instance, the probability of a Fed hike as soon as this month was up +3.2bps to 30.5% by the close, and the amount of hikes priced by December was up +4.8bps on the day to 42.2bps. Meanwhile at the ECB, there was an even bigger hawkish repricing, with the amount of hikes by December up +12.7bps on the day to 39.5bps. And given the ECB already hiked in June, that pricing implies a growing chance that they might end up hiking 3 times by the end of the year.   Just like when the conflict began, yesterday’s re-escalation caused significant damage to sovereign bonds, particularly in Europe given the region’s exposure to the energy shock. So 10yr bund yields (+9.9bps) surged back up to 3.09%, marking its biggest daily jump since May. And over in France, there was an even bigger milestone, as the 10yr OAT yield (+13.5bps) closed at 3.93%, marking its highest level since 2009. Then in the US, the moves weren’t quite as aggressive, but the 10yr Treasury yield (+2.8bps) still rose to 4.58%, and the 10yr real yield (+2.4bps) closed at a 17-month high of 2.31%.   Later on, we also had the minutes from last month’s FOMC meeting, which was the first with new Chair Kevin Warsh. The minutes added further credence to the hawkish market pricing seen since the meeting last month. While much of the committee agreed that inflation would cool as energy prices fell and one-off tariff impacts subsided, there were some worries of persistent underlying price pressures. Artificial Intelligence and the corresponding build out seemed top of mind for the committee, as “many participants noted that ongoing strong demand for AI infrastructure would likely sustain upward pressure on prices for technology products and electricity.” There is also greater concern amongst the committee that consumers and businesses are increasingly expecting higher prices. However, most Fed officials said in the minutes that they put more weight on financial market measures of inflation expectations rather than surveyed responses.    Given the stagflationary backdrop, this meant equities took a big hit on both sides of the Atlantic. So the S&P 500 fell -0.28%, with a broad-based decline that saw 78% of the index lose ground. Once again, the move in chip stocks was against the overall market as the Philly semiconductor index (+2.23%) outperformed. The outperformance was bolstered by two large news stories. First, SK Hynix’s US offering was more than seven times oversubscribed, with the ADR set to raise nearly $24.5bn and become the second largest debut for a foreign company after Alibaba ($25bn). Second, it was reported that China had plans to allow some domestic AI companies to purchase Nvidia’s H200 chips. Outside of the semiconductor rally, the only other S&P 500 industry groups to gain yesterday were Tech Hardware (+1.52%), Energy (+1.45%), and Consumer Staples (+1.15%) – the other 21 industry groups were lower on the day.    Over in Europe, those declines were even more severe, with Spain seeing the worst of the declines after Trump renewed his calls to end trade with Spain. This was at the NATO summit, where he said “Spain is a wasted cause” and that “We don’t want to do any trade business with Spain anymore.” Moreover, WSJ reporter Brian Schwartz posted that US officials would provide Trump a list of Spanish products that could be embargoed in the coming days. So that meant the IBEX 35 (-2.73%) posted a significant decline, sharply underperforming the Europe-wide STOXX 600 (-1.61%). That said, there wasn’t much good news anywhere in Europe, with the DAX (-2.23%), the CAC 40 (-2.18%) and the FTSE MIB (-1.22%) all posting significant declines as well.  Coming back to China, June inflation data revealed a diverging trend, highlighting uneven price pressures in the economy. CPI eased more than expected, rising +1.0% year-over-year (vs. +1.1% consensus) and slowing from May's +1.2% reading. In contrast, factory-gate inflation (PPI) accelerated to a four-year high of +4.1% year-over-year, matching forecasts. On a month-over-month basis, however, producer prices fell -0.3%, the first such decline since July 2025.   Looking at the day ahead now, data releases include US existing home sales for June, and the weekly initial jobless claims. Meanwhile from central banks, we’ll get the ECB’s account of their June meeting, and hear from the ECB’s Escriva, the Fed’s Williams and Logan, and the BoE’s Breeden. Tyler Durden Thu, 07/09/2026 - 08:26

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    Futures Rise, Oil Drops As Markets Ignore Latest Middle East Airstrikes Futures are higher (although off session highs), and oil erased overnight gains as the market moved past the latest Middle-East flare up which saw the US military strike 90 Iranian targets for a

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Opening summary: Iran claims attacks on strait of Hormuz ships amid fresh US strikes Welcome to our live coverage of the latest developments in the Middle East crisis. Iran attacked a tanker in the strait of Hormuz early on Tuesday, forcing its crew to abandon the ship, as Yemen’s Iran-backed Houthis announced they were imposing an immediate maritime blockade of Saudi Arabia in the Red Sea after the two sides traded fire last week for the first time in years.

A Houthi official said the Bab al-Mandeb strait – at the southern end of the Red Sea, through which about 12% of the world’s trade usually passes – would be closed to the Saudis in response to the kingdom’s “unjust blockade on Yemenis for over 10 years”.

Saudi Arabia said it would take “all necessary measures to protect its vessels in accordance with international law”. A 10 consecutive night of US airstrikes has not compelled Tehran to loosen its grip on the strait of Hormuz, a vital route for global energy supplies.

But even as Iran’s president said the country had returned “full-scale war”, the Iranian interior minister travelled to Pakistan – a key mediator in the conflict – for talks. In key developments: The latest US strikes came hours after Donald Trump said Iran would pay “many times over” for killing US soldiers after multiple service members were killed in action over the weekend.

A tanker came under attack early Tuesday in the Hormuz strait off Oman, forcing the crew to abandon the vessel, the British military’s United Kingdom Maritime Trade Operations centre said. Iran’s Revolutionary Guards claimed the attack as well as two other attacks on ships in the waterway on Monday.

The US military’s Central Command said its latest airstrikes were to “degrade” Iran’s ability to attack commercial shipping in the strait and included hitting military command centres and missile and drone launch sites. Iranian media reported strikes in parts of the country including Bandar Abbas, Tabriz and Bushehr, home to the country’s only operational civilian nuclear power.

Iran’s launched attacks in response against Bahrain, Kuwait and Jordan, which all host US forces. Oil prices softened after hitting their highest levels in more than a month in the previous session. Brent crude futures eased 0.4% to $88.87 a barrel by 0052 GMT on Tuesday while US West Texas Intermediate crude for September delivery was steady at $82.

47 a barrel. Democrats have seized on the deaths of three US troops killed in Iranian strikes to urge Trump to urgently reverse his resumption of the war with Iran amid widespread anxiety over climbing casualties. The Lebanese army began taking charge of security in three southern villages, the US said, as a deal to secure an Israeli withdrawal from southern Lebanon and the disarmament of Hezbollah faced its first test on the ground.

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US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.

The US military described the action as a precision operation, while reports note the ship was stationary at the time.

Location: Strait of Hormuz
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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?

strikeUnverifiedUSIsraelIranProxy
1 source

Iranian officials reported strikes on US radar and air defense sites in Kuwait and Bahrain, along with the interception of two oil tankers in the Strait of Hormuz. The United States conducted strikes on Iranian targets following the deaths of three US soldiers, with the Pentagon stating the actions aimed to degrade capabilities affecting shipping.

Houthi forces in Yemen announced plans to blockade Saudi ports, while both US and Iranian leaders issued statements on further escalation.

Location: Iran