Rastreador de la Crisis Irán-Golfo 2026
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strikeMay 26, 2026

Futures Rise, US Stocks Set For New Record As Hopes For Iran Peace Deal Persist Despite Bombing

Summary

Futures Rise, US Stocks Set For New Record As Hopes For Iran Peace Deal Persist Despite Bombing US futures are higher again, led by tech and small caps. As of 7:30am, S&P 500 futures rose 0.7%, signaling US stocks are set for another record high when the market reopens after Memorial Day weekend. Nasdaq 100 contracts, supercharged by the artificial intelligence trade, gained more than 1% as Magnificent Seven big tech shares rallied in premarket trading. In premarket trading, all Mag 7 are higher led by NVDA (+0.8%), TSLA (+0.8%) and GOOG/L (+0.7%). 10-year Treasury yields fell six basis points and the dollar was steady after dropping against major peers in the previous session. Europe’s benchmark Stoxx 600 index slipped, handing back some of Monday’s 1% advance. Brent trading below $100 on hopes of deescalation between Iran and the US. Yet even though we have seen a barrage of optimistic media reports regarding progress on the US-Iran negotiation; on Monday night the US conducted "defensive" strikes on Iranian military targets, which the Iranian foreign ministry moments ago condemned as ceasefire violations.  Gold and silver are both lower this morning, falling 1.0% and 2.5%, respectively; Ags are mostly lower. Today's economic data slate includes the April Chicago Fed national activity index and May Philadelphia Fed non-manufacturing activity (8:30am), March FHFA house price index, S&P Cotality home prices and FHFA 1Q house price purchase index (9am), May consumer confidence (10am) and May Dallas Fed manufacturing activity (10:30am). In premarket trading, Mag 7 stocks are all higher (Nvidia +1.2%, Tesla +1%, Apple +0.6%, Amazon +0.4%, Alphabet +0.2%, Microsoft +0.2%, Meta Platforms +0.1%)  Amentum Holdings Inc. shares (AMTM) gain 0.4% after BNP Paribas initiated coverage of the engineering firm with a recommendation of underperform as it sees growth lagging peers. AutoZone shares (AZO) fall 5.6% after it reported net sales for the third quarter that missed the average analyst estimate. Booz Allen Hamilton Holding Corp. shares (BAH) are up 1.4% after Stifel upgraded the company to buy from hold. Bridgebio Pharma shares (BBIO) dip 0.8% after Raymond James downgraded the drugmaker to market perform from outperform, citing near-term headwinds. Circle Internet Group Inc. shares (CRCL) rise 0.6% after it was initiated at KeyBanc Capital Markets with a recommendation of sector weight as it sees the stablecoin issuer being a leader in the sector, however dealing with lower margins. Okta Inc. shares (OKTA) are up 2.3% after Arete upgraded the software company by two notches, to buy from sell. Pembina Pipeline Corp. (PBA) rises 0.9% after it was upgraded to buy from hold at TD Cowen on sector growth. Shares in rocket and satellite companies (RDW +16%, MDA +17%, ASTS +7%) are rallying, set to extend recent gains since SpaceX filed publicly for what stands to be the largest-ever initial public offering. Shares in semiconductor companies with exposure to Asia (WOLF +8.5%, SMTC +4%) are rallying on optimism over a potential breakthrough in technology by Huawei. Shares in rocket and satellite companies rallied in US premarket trading Tuesday, extending recent gains. The sector has advanced since SpaceX filed publicly for what stands to be the largest-ever initial public offering. Among the movers, Redwire Corp. climbed 15%,  MDA Space Ltd. jumped 13% and Firefly Aerospace Inc. rose 11%. Investors are largely shrugging off a modest rebound in crude prices after the US hit Iranian ships and missile launch sites, and Iran’s Tasnim news agency said the Islamic Revolutionary Guard Corps had fired at a US F-35 fighter jet. Israel also threatened to intensify its strikes against Hezbollah in Lebanon. While the news flow clouds prospects of a swift resumption in oil flows through the Strait of Hormuz, investors appear optimistic that peace talks can still progress. US authorities have described their strikes as defensive in nature, following President Donald Trump’s comment on Monday that talks were “proceeding nicely.” And despite Tuesday’s increase, oil prices are on track for a drop in May after rising in the previous two months. "The main driver of the mood music is the story in Iran,” Mizuho Bank Ltd. strategist Jordan Rochester said. Despite the strikes and belligerent rhetoric from Iran, “both sides are closer than they have been to date to getting something over the line. The US has made it clear it does not want the kinetic action to re-start,” he said.  With the Middle East de-escalation lifting equity sentiment, “one might have expected to see the dollar weaker across the board – but it has been holding up quite well,” Turner wrote. “We suspect this is being driven by the view that the Federal Reserve is about to turn less dovish.”  As Big Tech raises hundreds of billions of dollars to fund AI investment, Wall Street banks are increasingly finding they have to trade more credit derivatives to keep doing business with the hyperscalers. JPMorgan strategists said low-volatility stocks look attractive after a selloff triggered by rising bond yields, regardless of where yields go from here. Their US basket includes the likes of P&G, Coca-Cola, J&J and American Electric Power. Meanwhile, Morgan Stanley's Mike Wilson said stock markets can handle higher bond yields as long as strong economic growth is the main catalyst, rather than a more aggressive central bank stance.   Meanwhile, the SEC has given the go-ahead for Nasdaq to list index options based on the price of Bitcoin, the latest sign that Wall Street is becoming more tightly integrated with the world of digital assets.  South Korea — the world’s best-performing yet most volatile market — is set to debut its first ever single-stock leveraged ETFs this week, tools that have the potential to amplify gains and losses. Analysts expect strong demand from the nation’s more than 14 million retail investors. Investors are also closely watching the outlook for Federal Reserve policy, with expectations growing that the central bank will need to keep policy tight after the oil-price jump spurred the biggest inflation surge since 2023. A number of officials have abandoned their easing bias, while Trump — who has repeatedly called interest-rate cuts — said on Friday he wanted new Chair Kevin Warsh to lead the Fed independently. An inflation gauge due later this week is expected to show annual price growth ticking up further in April, potentially reinforcing expectations that policy will stay tight. Chris Turner at ING Bank NV also highlighted the possibility of a strong jobs print later Tuesday, following last week’s robust reading.  BlackRock’s Navin Saigal says the Fed may have enough reason to justify a rate cut rather than a hike under new chairman Kevin Warsh. The swaps market is not convinced, pricing in a better than 80% chance of a 25-bpt hike by the end of the year. Prints this week should shed light on how American businesses are dealing with unresolved questions around tariff refunds. AutoZone reports before the open on Tuesday, followed a day later by HP, and Costco on Thursday.  This week is a big one for economic data, which according to Bloomberg Economics’ Anna Wong “speak directly to the two questions markets care about: whether US consumers are buckling under high gasoline prices, and whether inflation is too sticky for the Fed’s comfort.”  At 10 a.m. ET, she expects confirmation of a modest erosion of consumer confidence in May, followed on Thursday by a still-hot reading for April of the PCE deflator, the Fed’s preferred inflation gauge. Europe’s benchmark Stoxx 600 index slipped 0.2%, handing back some of Monday’s 1% advance, as oil prices climbed, fueling concerns that a resolution to the Iran war remains out of reach. Auto and technology stocks underperformed, while the mining sector led gains.  Here are some of the biggest movers Tuesday: Kingfisher shares roe as much as 8.3%, briefly hitting a two-month high, after the DIY-retailer reported first-quarter sales and reiterated its guidance, which analysts said is providing some reassurance following recent pressure on the stock. Atalaya rose as much as 7.2% after the miner’s earnings significantly beat consensus forecasts. Industrie De Nora shares rose as much as 11%, briefly hitting their highest level since January, after the maker of industrial electronic equipment said it has agreed to buy BW Water, which Jefferies said will help increase exposure to high-growth markets. CVS Group shares advanced as much as 5.8%, the most since April 8, after the UK veterinary services provider launched a £50 million share buyback program. Ferrari shares fell as much as 7.8% in Milan, the most in more than seven months, after analysts criticized the design of the supercar maker’s first fully electric model, priced at €550,000. Vodafone shares fell as much as 4.9% after being downgraded to underperform by Bank of America. Melrose shares fell as much as 7.3%, most since Feb. 27, after authorities ordered precautionary evacuations around the company’s GKN Aerospace facility in California following a thermal issue with a storage tank. Asian shares are headed for a fourth straight session of gains, as optimism around artificial intelligence outweighed lingering unease over US-Iran talks. The MSCI Asia Pacific Index gained as much as 0.7%, with SK Hynix, Samsung Electronics and SoftBank among the biggest boosts. South Korea’s Kospi climbed 2.6% to a record, while Hong Kong shares also rose as the markets reopened after Monday’s holiday. Tech hardware stocks have been driving gains in the region despite concerns over elevated valuations and sustainability of hyperscaler spending. The prospect for a negative economic impact from the Iran war has also been shrugged off, even with a rebound in oil prices after fresh US military strikes. This week, investors will be watching rate decisions in South Korea and New Zealand to gauge the impact of higher fuel prices on inflation. Other key events include earnings from Chinese EV smartphone and EV maker Xiaomi due later Tuesday. In FX, the Bloomberg Dollar index is higher by 0.1% with gains in the greenback most pronounced against the kiwi ahead of Wednesday’s RBNZ rate decision.  In rates, Treasuries hold solid gains as US trading resumes after Monday’s holiday, after yields gapped lower at the Asia open on mounting optimism about an end to the US war on Iran. Lower energy prices relative to Friday’s close have sent US yields lower across the curve with the 10-year down 5bps; US yields are near session lows are as much as 9bp richer on the day intermediate sector as swaps price in less chance of a Fed rate hike by mid-2027 (Fed-dated OIS contracts price in around 19bp of tightening by the end of this year vs about 27bp at Friday’s close, and a policy-rate peak of around 3.93% by the middle of next year vs 4% Friday). US yields are 6bp to 9bp lower across a steeper curve, with 5s30s spread about 2bp wider on the day; 10-year near 4.48% is richest since May 14. Front-end and belly sectors have support from fading Fed rate-hike expectations as oil prices fall; WTI crude futures remain about 4.5% lower after rebounding slightly following fresh US military strikes in Iran. Treasury auction cycle begins with $69 billion 2-year note at 1pm New York time, followed by $70 billion 5-year and $44 billion 7-year notes Wednesday and Thursday. WI 2-year yield near 4.055% is about 24bp cheaper than last month’s auction, which tailed by just 0.1bp. IG dollar issuance slate includes several offerings so far. Dealer forecasts are for about $30 billion during the holiday-shortened week. Focal points of US session include consumer confidence gauge and 2-year note auction.  In commodities, brent crude futures are up 3.7% on the session but down almost 4% on a two day basis, trading just below the $100/bbl level. Monday’s lack of settlement for WTI explains the current intraday divergence between the two benchmarks with the WTI July contract shedding 3.9%. Today's economic data slate includes weekly ADP employment change (8:15am), April Chicago Fed national activity index and May Philadelphia Fed non-manufacturing activity (8:30am), March FHFA house price index, S&P Cotality home prices and FHFA 1Q house price purchase index (9am), May consumer confidence (10am) and May Dallas Fed manufacturing activity (10:30am). Fed speaker slate includes Kashkari at 8:20pm, speaking at a Bank of Japan conference Market Snapshot Top Overnight News US and Israeli jets struck Iranian vessels in the Strait of Hormuz and other targets, hours after Donald Trump said talks with Tehran on an interim deal were progressing. Israel vowed more strikes on Hezbollah and Iran demanded any deal to reopen the strait include a halt to fighting in Lebanon. Russian Foreign Minister Sergei Lavrov advised Marco Rubio to evacuate American citizens and diplomats from Kyiv. He warned that the Kremlin plans to continue heavy strikes on the Ukrainian capital. BBG Huawei Technologies said on Monday it will make industry-leading semiconductors using a new technology in five years, underscoring Beijing's efforts to neutralize U.S. sanctions that have made it hard for China to build cutting-edge chips. RTRS Workers’ pay packets are shrinking in relation to prices in a growing number of rich countries as the energy shock unleashed by the Iran war chokes off a nascent recovery in real wages. FT The ECB should raise interest rates in June, even if ongoing peace talks with Iran yield a deal, as the conflict has been far longer than projected and high energy prices are spilling into the broader economy. RTRS China let the interest rate on a one-year policy loan to banks decline to a record low, according to people familiar with the matter, a sign Beijing is stepping up efforts to support an economy that’s losing momentum. BBG Japan's core inflation as measured by a new central bank gauge accelerated in April ‌and blew past its 2% target, data showed on Tuesday, helping make the case for an interest rate hike as soon as next month. BBG ECB’s chief economist sees no need to correct markets from anticipating a rate hike next month. Nikkei NYC Mayor Zohran Mamdani is set to unveil a plan today to exempt some distressed rent-stabilized landlords. It would allow eligible owners to impose a one-time rent increase on certain vacant units. WSJ Hedge funds and mutual funds each carry above-average equity market exposures. Hedge funds and mutual funds initially reduced exposure to US equities at the onset of geopolitical tensions in March but hedge funds have since lifted net leverage to the 85th percentile relative to the last five years. Although mutual funds lifted cash allocations from a record low of 1.1% at the start of 2026 to 1.4% at the start of April, cash balances as a share of assets still remain extremely low relative to history. GIR Iran Conflict News Over the weekend, US President Trump posted that an agreement has largely been negotiated, subject to finalisation between the US, Iran and various Middle Eastern countries, while the final aspects and details of the deal were being discussed, and will be announced shortly. He followed up by stating that negotiations are proceeding in an orderly and constructive manner, while he informed representatives not to rush into a deal and that time is on their side. Reuters reported that the proposed framework is broken into three stages: 1) formally ending the war, 2) reopening the Strait of Hormuz and 3) opening an extendable 30-day window for broader negotiations on nuclear issues and sanctions relief. Axios further reported, citing a US official, that an agreement would involve a 60-day ceasefire extension during which the Strait of Hormuz would be opened, Iran would be able to freely sell oil, and negotiations would be held on curbing Iran's nuclear programme. However, a US senior official told Axios that the White House doesn’t expect an agreement to end the war with Iran on Sunday and believes it could take several days for the deal’s approval by Iran’s leadership. Elsewhere, Iran's Foreign Minister Araghchi travelled to Doha for talks with Qatar's PM. US Central Command spokesperson said US forces conducted self-defence strikes in southern Iran on Monday, in which US forces hit targets, including missile launch sites and Iranian boats attempting to emplace mines. Furthermore, CENTCOM said it will defend troops while maintaining the ceasefire restraint and stated that strikes have concluded for now. Explosions were reported in Iran's Bandar Abbas city, with the cause initially unknown, while similar sounds were also heard in the Persian Gulf, around Sirik and Jask. A Mehr News Agency reporter stated shortly after that the situation in the city was normal and completely under control, with no reason for any concern for the people of Bandar Abbas. However, N12 reporter Nitzan Shapira posted on Telegram that unofficial channels identified with the IRGC said fighter jets attacked two boats in the port of Bandar Abbas and that four people were killed. Furthermore, Iranian media reported the killing of a number of Iranians as a result of the American-Israeli attacks on Iranian ships in the Strait of Hormuz, according to Asharq. US President Trump posted "The Enriched Uranium (Nuclear Dust!) will either be immediately turned over to the United States to be brought home and destroyed or, preferably, in conjunction and coordination with the Islamic Republic of Iran, destroyed in place or, at another acceptable location, with the Atomic Energy Commission, or its equivalent, being witness to this process and event." US Secretary of State Rubio said Iran negotiations will take a few days and that President Trump said he will make a good deal or no deal, while Rubio added that there were some talks going on in Qatar and thinks there is a lot of talking back and forth going on about specific language in the initial document. Rubio commented that negotiating the language of the deal with Iran could take a few days, and the Strait of Hormuz is going to be opened one way or the other. US Secretary of State Rubio said US strikes on Iran do not preclude a diplomatic deal and that an Iran deal is possible within days, while Al Jazeera reported that the US strike on Iran's Bandar Abbas is a 'small hurdle' but unlikely to derail peace talks. Iranian Supreme Leader Khamenei said America will no longer have a safe haven in the Middle East; "the region will no longer serve as shields for American bases." He further said the clock cannot be turned back and the "shaky Zionist regime will move closer to the end of its ominous existence." Iran's IRGC said Iran has the right to respond to respond to any US ceasefire breach. They have identified hostile aircrafts entering Iran's airspace in the Gulf region and have shot down one MQ-9 drone. IRIB News said the claims by Al Arabiya regarding the 14-point MOU between the US and Iran are false and baseless. Iran's Supreme Leader issued directives on officials' war duties, including managing wartime economy and for officials to seek reparations from enemies, while it was also stated that officials are to use the Hormuz Strait as leverage. Iranian official source said Tehran warned Washington that any Israeli attacks on Beirut or the southern suburbs would seriously jeopardise ongoing efforts to end the war, and could derail the diplomatic track altogether, according to journalist Hashem. Iranian National Security Committee Chairman said if the US side takes confidence-building measures at the implementation level and we see tangible results, this could be the basis for further steps. He added that Iran will not compromise on national interests. IRGC senior spokesperson said, "If we are attacked, our attacks will be more intense, heavier and stronger", according to IRIB News citing an Al Jazeera interview. The report added that "The response to any new aggression will be different from what it has been before." Israeli Broadcasting Authority said the Israeli army has begun mobilising its soldiers with the aim of intensifying its operations in Lebanon, according to Al Jazeera. Israeli army intensified strikes in southern Lebanon on Monday, as Israeli PM Netanyahu said he had ordered the military to escalate its offensive in Lebanon in an effort to "crush" Hezbollah, according to CBS News and AFP. Israeli warplanes conducted airstrikes on the town of Al-Duweir in the Nabatiyeh district, southern Lebanon, according to Al Mayadeen. Hezbollah said it targeted Israeli forces at the headquarters of the 300th Brigade in Shumera. A more detailed look at global markets courtesy of Newsquawk APAC stocks were mixed as the recent optimism regarding a nearing US-Iran agreement was clouded by reports that the US launched 'self-defence' strikes in southern Iran against missile launch sites and Iranian boats attempting to lay mines, although the market reaction to the renewed attack was limited, with some reports downplaying the likelihood that it could derail peace talks. ASX 200 was subdued with the index led lower by utilities and energy, but with the downside limited amid a lack of data releases and following the mixed geopolitical signals. Nikkei 225 pulled back after printing a fresh record high and briefly returned to beneath the 65,000 level amid profit taking and as participants reflected on the latest geopolitical headlines, while there were comments from BoJ Deputy Governor Himino that they will continue to raise the policy rate, adjust the degree of monetary accommodation according to economic activity, prices and financial conditions. Hang Seng and Shanghai Comp were mixed with the mainland subdued alongside the geopolitical uncertainty, while the Hong Kong benchmark outperformed on return from the holiday closure as tech strength helped participants shrug off China's announcement late last week regarding a cross-border investment crackdown. Top Asian News Japanese Finance Minister Katayama said authorities are watching Middle East developments carefully and will act in a timely manner to cushion the impact on households. Japanese Deputy Chief Cabinet Secretary Ozaki said they are aware of reports regarding consumption tax, but nothing decided yet and will refrain from prejudging. European bourses (STOXX 600 -0.3%) trade mixed. Risk sentiment has softened after reports overnight that the US conducted strikes on Iranian missile launch sites and mine-laying boats in southern Iran overnight, with US CENTCOM citing self-defence. To add, US Secretary of State Rubio tempered expectations, saying a deal could take a few days and warned that the Strait of Hormuz would be opened "one way or the other." Sectors lack a clear directional bias. Basic Resources (+1.2%) is the clear sector outperformer, helped by UK miners (Glencore, Rio Tinto). To the downside lies Technology (-1.2%) and Autos (-1.7%). Top European News EU Commissioner for Startups Research and Innovation said the UK could join a EUR 4bln EU startup fund this year, according to FT. FX G10s are broadly lower against the Buck as thin risk-on holiday trade on Monday was partially pared as US CENTCOM conducted "self-defence" strikes in Iran and Iran issued unconstructive rhetoric regarding the strikes. DXY trades modestly higher, returning to Monday’s session highs amid the aforementioned geopolitics and a general rebound in crude benchmarks. Dollar saw upside this morning on rare remarks from Iran’s Supreme Leader Khamenei, suggesting “America will no longer have a safe haven in the Middle East…. the region will no longer serve as shields for American bases". USD strength seen on these remarks was pared just above Monday's session highs of 99.12. DXY should remain supported by its 50DMA at 98.93, as it was on Monday, with resistance at 99.50. Kiwi is the worst G10 performer, heading into the RBNZ meeting and OCR projections on Wednesday, with Antipodeans generally underperforming amidst the modestly sour tone (AUD/NZD +0.3%, NZD/USD -0.5%). RBNZ is expected to keep the OCR unchanged at 2.25% for the third consecutive meeting as geopolitical uncertainty and mixed data support the case for a pause. Markets currently assign c. 70% probability of a hold, with risks skewed to tightening. GBP is also softer as energy is boosted on geopolitics, and GBP/USD reverses from the 1.35 mark after gains on bank holiday Monday. EUR is one of the best-performing G10s as it resides a touch below 1.1650 after soft EZ, and hawkish US data pushed EUR/USD lower last week. The European docket for the remainder of the week, with EZ inflation and GDP data scheduled. Central Banks ECB's Schnabel said the ECB should raise rates in June, even if an Iran peace deal is struck, while she sees signs of energy inflation spillovers. ECB's Lane said the ECB is not pre-committing to a particular path after June, Nikkei reported. BoJ Deputy Governor Himino said higher long-term interest rates are being interpreted by markets as a sign of persistent inflation concerns worldwide, while he added that monetary policy will be guided appropriately to achieve the inflation goal stably and sustainably. Himino also commented that the economic outlook can change depending on the Middle East situation and they will consider the timing and pace of adjustment while monitoring how Middle East developments affect Japan's economy, prices and examining the likelihood of realising the baseline scenario. Furthermore, he said they will continue to raise the policy rate and adjust the degree of monetary accommodation according to economic activity, prices and financial conditions. Fixed Income Fixed benchmarks are mixed, but the bias throughout the European morning is negative. USTs are stronger (given the lack of settlement on Monday), Gilts play catch-up to peers (given Monday’s Bank Holiday), whilst Bunds move lower. To recap recent geopolitical updates, strength in fixed benchmarks was facilitated by the weekend's geopolitical positive updates, in which reports suggested that the US-Iran were nearing a deal. However, the complex then waned from overnight highs amidst reports of the US conducting “self-defence” strikes near Bandar Abbas. The move further exacerbated in European hours after the Iranian Supreme Leader said that America no longer has a safe haven in the Middle East, adding that the region will no longer serve as a shield for US bases. Markets now remain attentive to whether Iran decides to physically retaliate against the US’s strikes, or whether a deal between the US and Iran can be ironed out. Geopolitics aside, the US data slate includes the Chicago Fed National Activity Index, CB Consumer Confidence and the Dallas Fed Manufacturing Index; in Europe, ECB speak from Sleijpen will be in focus. USTs are firmer by c. 15 ticks, but off c. 10 ticks from Monday’s highs; currently trading within a 109-17 to 110-00 range.Elsewhere, Gilts are firmer by around 35 ticks and ultimately playing catch-up to the gap higher seen on Monday; UK paper trades within the 88.17 to 88.70 range. Finally, the German paper has moved lower this morning, given the positive bias seen in the crude complex. Bunds currently off by around 30 ticks and within a 125.95 to 126.26 range. Earlier, hawkish speak from Schnabel failed to move Bunds; she noted that the Bank should raise rates in June, even if a peace deal with Iran is struck. Commodities Crude futures rebound following yesterday's hefty losses, with Brent futures firmer by 3.50%, whilst WTI/Brent intraday change quotes diverge given the lack of WTI settlement due to the US holiday yesterday. In terms of geopolitics, US forces carried out “self-defence” strikes in southern Iran against missile launch sites and boats allegedly attempting to lay mines. CENTCOM said the strikes had concluded, “for now”. Over in Iran, the IRGC said Tehran has the right to respond to any US ceasefire breach, adding that it had identified hostile aircraft entering Iranian airspace over the Gulf and shot down an MQ-9 drone. To add, Supreme Leader Khamenei has reportedly yet to approve progress toward a potential US-Iran accord. Brent Aug’26 resides towards the upper end of a USD 94.36-97.08/bbl range, while WTI Jul’26 sits in a USD 89.41-93.90/bbl band. Dutch TTF prices are firmer by some 4% intraday and back above the EUR 47/MWh mark after oscillating around EUR 46/MWh yesterday. Spot gold falls with the yellow metal dipping under yesterday’s USD 4,549/oz low after matching the high at USD 4,580/oz, with today’s trough at USD 4,518/oz. Spot silver is also weaker, with prices slipping from a USD 78.39/oz to a current low at USD 75.73/oz. Base metals are mixed with the LME returning from its long weekend. LME and CME copper trade relatively flat, with price action rather varied across different base metals. LME copper resides in a narrow USD 13.62k-13.73k/t range. Malaysia has imposed a 10% import duty on some gold bar shipments. UBS lowers year-end 2026 Gold price forecast to USD 5500/oz; citing persistent yield and USD headwinds Geopolitics ex Iran Russian Foreign Minister Lavrov called US Secretary of State Rubio to urge the evacuation of US citizens and diplomats from Kyiv, according to the Russian Foreign Ministry. Furthermore, the US State Department said Rubio exchanged views with Lavrov on the Russia-Ukraine war, bilateral relations and the situation with Iran. South Korean military said North Korea fired an unidentified projectile, according to Yonhap. US Event Calendar 8:30 am: United States Apr Chicago Fed Nat Activity Index, est. -0.03, prior -0.2 9:00 am: United States Mar FHFA House Price Index MoM, est. 0.1%, prior 0% 10:00 am: United States May Conf. Board Consumer Confidence, est. 92, prior 92.8 10:30 am: United States May Dallas Fed Manf. Activity, est. 0, prior -2.3 8:20 pm: United States Fed’s Kashkari Speaks at Bank of Japan Conference DB's Jim Reid concludes the overnight wrap With the US and UK on holiday yesterday, we will include a brief look at the week ahead today and also briefly recap last week. My knowledge of the last 24 hours is slightly clouded by being far away from my screen, having spent yesterday managing a cricket tournament for 70 under nine children on our local village green, on what turned out to be the hottest day in May in UK history, surpassing the previous record set in 1944. It is fair to say that the real hero of the day was the driver of the ice cream van who swung by at just the right moment. The team I coach won the group stage, only to lose in the semi final to the fourth place team that we had beaten earlier. The chairman has given me his backing to stay on in my post, but the children (mostly my two twins) were calling for me to be replaced. With player power being what it is these days, my days may be numbered. Since the weekend, the real hope is that the days may also be numbered for the war in Iran as well, with momentum building since the start of the weekend that a deal could be in the works. Brent, which ended last week at $103.54/bbl, is this morning trading at $97.87/bbl, around -5.48% lower than Friday’s close. However, Brent had got as low as $96.02 late yesterday before news overnight that US and Israeli jets conducted fresh strikes in Southern Iran, hitting missile launch sites and mine-laying boats. These actions were described as "defensive" and not an end to the ceasefire with Iran. Net net, optimism is still elevated that an agreement can be made to end the war. We have been here before, of course, but it has felt for some time that the move towards peace has been three steps forward and one or two back. It is now 48 days since the main kinetic encounters, and my view for a while has been that such a prolonged truce and ceasefire would not have held if the US genuinely wanted to continue strikes, unless there was absolutely no alternative. Last night's targeted action is clearly a warning shot that the ceasefire is fragile though, so we will have to see what the next few days of negotiations bring. This morning S&P 500 futures are +0.62% and NASDAQ futures +0.85% which is a few tenths of a percent lower than most of yesterday before the overnight strikes. In Asia, the KOSPI (+2.96%) is leading gains and reaching a new record but it was on holiday yesterday along with the Hang Seng (+0.53%).  The Nikkei (-0.11%) is slightly lower with slightly bigger falls for the Shanghai Composite (-0.81%). European equity futures are down two or three tenths but this follows a strong day on Monday with the DAX (+2.01%) strength typifying the move. Euro Stoxx (+1.11%) closed within a whisker of pre-Iran War levels and if you're looking for a highlight then the FTSE-MIB (+2.24%) finally cleared its all-time high last seen back in the year 2000!! So a momentous day for Italy! 10yr European bonds were around 9 to 12bps lower across the curve yesterday even if futures suggest a little bit of a sell off at the open. This morning 10yr USTs have reopened -5.1bps lower after the long weekend. Moving on to the rest of this week, inflation once again dominates with important price data across the US, Europe and Japan. In the US, the clear focal point is Thursday’s April personal income and spending report (Thursday), which contains the Fed’s preferred inflation gauge. Our economists expect core PCE inflation at around +0.3% month-on-month, unchanged from March, with the year-on-year rate edging higher. This release matters not just for the inflation print itself, but for how it fits with the broader narrative of sticky services inflation and resilient demand. On the real economy side of the same report (Thursday), our economists expect momentum to cool after a very strong March, with personal consumption growth slowing back to around +0.3% month-on-month and personal income rising by roughly +0.4%. This comes after a hawkish speech from Waller on Friday. He discussed how the recent labour market and inflation data had caused him to reevaluate the balance of risks with inflation becoming the “driving force” behind monetary policy in the near term. In particular, he noted that he would support changing language in the statement to remove the easing bias and make it clear that “a rate cut is no more likely in the future than a rate increase”. In light of this there is a lot of Fedspeak to watch this week. You can see a list in the day-by-day calendar at the end as usual but keep an eye on Minneapolis’s Kashkari (today) and Dallas’s Logan (tomorrow)—both of whom had dissented against the easing bias in the April statement. They are likely to repeat their view that the stance of monetary policy should be more balanced, particularly as inflation risks remain front of mind. Staying with the Fed, last Friday, our Chief US economist, Matt Luzzetti, wrote an interesting piece entitled “overinsured” where he discusses how the Fed has delivered 175bps of rate cuts in this cycle even as inflation has remained well above target, framing the last round as “insurance” or “risk management” cuts in response to elevated downside labour market risks. Matt suggests that relative to a set of standard policy rules, the first set of cuts in 2024 was appropriate. But following the second set last year, and the recent acceleration of inflation, the fed funds rate is now significantly below all policy rule settings. This finding is robust to different plausible estimates of r-star and the use of economic forecasts instead of current inflation and unemployment in the policy rules. See Matt’s piece here for how future rate hikes might be interpreted as a prudent reversal of that insurance. Beyond PCE, Thursday also brings durable goods orders (Thursday), where our economists look for a modest headline increase consistent with steady but unspectacular capital spending momentum. Earlier in the week, the Conference Board’s consumer confidence index (tomorrow) is expected to edge lower, potentially reflecting the cumulative impact of higher rates and policy uncertainty. Weekly initial jobless claims (Thursday) remain an important high-frequency signal on labour market conditions, although holiday effects may add some volatility. In Europe, attention turns to the May flash inflation prints at the end of the week, with Germany, France, Italy and Spain all reporting on Friday, ahead of the Eurozone aggregate the following week. Our economists expect inflation to remain above target across the region. Alongside the data, the ECB publishes the account of its April meeting (Thursday) and its Financial Stability Review (Wednesday), offering further insight into how policymakers are balancing lingering inflation pressures against softer growth and financial stability considerations. In Asia, Japan is the key focus. Friday’s Tokyo CPI (Friday) will provide an early read on national inflation trends, alongside April industrial production and retail sales (Friday). Our economists expect inflation measures to firm modestly, underscoring that price pressures remain present even as activity data stay mixed. Elsewhere, China releases industrial profits (tomorrow), Australia publishes its April CPI (Wednesday), and the RBNZ announces its latest policy decision (tomorrow), where our economists expect the cash rate to be left unchanged. On the corporate side, earnings highlights include US tech names such as Dell, Marvell and Salesforce, alongside consumer-facing firms including Costco and Dollar Tree, with most results clustered around mid-to-late week. Recapping last week now, more for those who were off yesterday. Markets put in a strong performance overall, as hopes mounted for some kind of US-Iran deal. So that raised investor expectations that the Strait of Hormuz might reopen in the weeks ahead, which helped to bring down oil prices. Indeed, Brent crude fell -5.24% last week to $103.54/bbl, whilst WTI fell -8.37% to $96.60/bbl. Moreover, investors dialled back their expectations for a more protracted conflict, with the 6-month Brent future also down -2.97% last week to $88.28/bbl.   That decline in oil prices meant investor fears eased about a stagflationary shock to the global economy, supporting bonds and equities on both sides of the Atlantic. In fact, the S&P 500 posted an 8th consecutive weekly advance for the first time since 2023, rising another +0.88% over the week. And over in Europe, the STOXX 600 posted a +3.00% advance, closing at its highest level in the last month. Interestingly, the latest advance took place despite weakness among the big tech stocks, with the Magnificent 7 falling -0.76% last week, ending a run of 7 consecutive weekly gains.   With oil prices coming down, that also helped to ease fears about near-term inflation, which again was clear on both sides of the Atlantic. For instance, the US 1yr inflation swap fell -31.0bps to 3.11% and the Euro 1yr inflation swap fell -15.4bps to 3.62%. But despite easing fears on the inflation side, investors also dialled up the chance that the Fed would hike rates this year, with 24bp of rate hikes now priced by December. That included a +3.2bps rise on Friday as the University of Michigan survey showed 5-10 year expectations spiking from 3.4% to 3.9% in May and Fed Governor Waller struck a more hawkish tone, saying that he’d support removing the easing bias in the Fed’s statement. That backdrop meant that front-end Treasury yields continued to move higher last week, with the 2yr Treasury yield up +5.1bps to 4.12% (+3.9bps Friday), its highest level since February 2025. However, the 10yr yield came down, falling -3.5bps on the week to 4.56%. In Europe however, sovereign bonds saw a much stronger rally thanks to the oil price declines, alongside worse-than-expected flash PMIs. So in contrast to the US, investors dialled back their expectations for rate hikes from the ECB this year. That meant just 65bps of hikes were priced by the December meeting, down from 75bps the previous week. In turn, yields fell across the continent, with the 10yr bund yield down -12.9bps to 3.04%, whilst 10yr gilt yields fell -27.5bps to 4.90%, marking their biggest weekly decline since 2023. Otherwise in fixed income, US credit markets outperformed last week, with IG (-1bps) and HY spreads (-7bps) tightening slightly. By contrast, European spreads widened, with both IG (+1bps) and HY spreads (+13bps) rising. Tyler Durden Tue, 05/26/2026 - 08:25

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    Futures Rise, US Stocks Set For New Record As Hopes For Iran Peace Deal Persist Despite Bombing US futures are higher again, led by tech and small caps. As of 7:30am, S&P 500 futures rose 0.7%, signaling US stocks are set for another record high when the market reope

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Goldman Sachs expects Brent crude to average $80 per barrel in the fourth quarter and $75 next year, assuming tensions in the Middle East ease. However, the risks to its forecasts remain "tilted to the upside" due to potential disruptions to shipping through the Strait of Hormuz and possibly the Red Sea, analysts said.

Global energy markets have faced renewed volatility this month, with Brent climbing back above $91 per barrel amid fresh fighting between the U.S. and Iran and a threat by Iran-backed Houthi rebels in Yemen to blockade shipments from Saudi Arabia. Red Sea routes have played a key role in enabling Persian Gulf crude cargoes affected by disruptions to reach buyers.

Also read: Relieved that crude has finally fallen? The real warning signs just began flashing elsewhere Goldman Sachs said lower global inventories in the second quarter have increased the oil market's vulnerability to supply shocks. However, weaker Chinese imports and greater demand elasticity could limit the potential for further price gains.

Oil prices edged lower on Tuesday as markets weighed reports of renewed diplomatic efforts between the U.S. and Iran, including a proposed 10-day ceasefire, against continued military exchanges and a threat by Yemen's Houthis to impose a naval blockade on Saudi Arabia.

Crude oil price today A senior Iranian official told Reuters that Tehran had received a 10-day ceasefire proposal from mediators. The initiative aims to preserve the interim agreement signed on June 17 and create a path toward a lasting deal to end the conflict that began on February 28 following U.

S.-Israeli attacks on Iran. The diplomatic push followed another night of U.S. strikes on Iranian cities and retaliatory attacks by Iran's Revolutionary Guards on U.S. military assets across the region. U.S. Central Command later said on Monday that it had launched another round of strikes on Iran.

The U.S. carried out its 10th consecutive day of strikes after President Donald Trump vowed that Iran "will pay" for the killing of American soldiers. Iran responded with attacks on Kuwait. The conflict began on February 28, when the U.S. and Israel launched attacks on Iran.

Tehran retaliated with strikes on Israel and Gulf states that host U.S. military bases. U.S.-Israeli attacks on Iran, along with Israeli strikes on Lebanon during the conflict, have killed thousands of people and displaced millions. Also read:Oil is crude once again!

Is $95 the new normal and what it means for Indian investors? Over the past week, Trump has also threatened to widen the scope of U.S. strikes in Iran to include energy facilities and bridges. The 1949 Geneva Conventions, which set rules for humanitarian conduct during war, prohibit attacks on sites considered essential to civilian life.

Following Trump's earlier threats to target such infrastructure, international law experts in the U.S. said earlier this year that such attacks could potentially constitute war crimes. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

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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?