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strikeMay 4, 2026

"Just Another Dip Investors Will Buy": Futures Drop, Oil Rises On Renewed Iran Tension

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"Just Another Dip Investors Will Buy": Futures Drop, Oil Rises On Renewed Iran Tension US futures whipsawed and crude oil spiked higher as tensions flared up again in the Middle East, taking the focus off a run of strong earnings by megacap tech companies. As of 8:00am ET, S&P and Nasdaq 100 futures dropped 0.2% from Friday's record highs, falling as much as 0.5% just minutes earlier after Iran’s Fars agency claimed two missiles hit an American patrol boat, before erasing most of the declines after the US denied a ship was hit. All of this after Trump said Sunday that US Navy will guide ships out of the Strait of Hormuz from Hormuz in a move called “Project Freedom" while Iran issued Trump a one-month deadline for negotiations on its proposed 14-point deal to reopen the Strait of Hormuz. European stocks were mostly red while tech-heavy Asia indexes in South Korea and Taiwan surged in Monday trading. In premarket trading, Mag 7 names are mixed: GOOGL (+0.6%), AMZN (+0.6%), and META (+0.7%) are outperforming, while AAPL and MSFT are lower. Brent crude surged more than 5% to trade above $113 a barrel before paring the gain, while bitcoin and gold traded in a mirror image. Interest rates are higher with the 10Y yield rising 4bps to 4.41%; WTI crude added ~$2 to $104 this morning having briefly traded above $107; base metals are higher, while gold and silver both sliding more than 2%. Looking at the US economic data calendar slate includes March factory orders at 10am. Fed speaker slate includes New York Fed President John Williams at 12:50pm In premarket trading, Mag 7 stocks are mixed (Alphabet +0.2%, Amazon -0.08%, Apple -0.4%, Nvidia -0.06%, Meta -0.09%, Microsoft -0.4%, Tesla +0.2%) Cryptocurrency-linked stocks are rising in US premarket trading after Bitcoin climbed above $80,000 for the first time in more than three months, buoyed by renewed risk appetite in the stock market. Celcuity (CELC) jumps 15% after its Phase 3 trial of gedatolisib plus fulvestrant in mutant breast cancer patients met its primary endpoint. EBay Inc. (EBAY) gains 8% as GameStop Corp. is proposing to buy the e-commerce company for about $56 billion in cash and stock, a bold attempt by Ryan Cohen to take over a name several times larger. GameStop (GME) falls about 1%. Global Business Travel Group (GBTG) gains 57% after Long Lake Management agreed to buy the company for $9.50 per share in an all-cash transaction valued at about $6.3 billion. Global Business Travel Group is a travel platform spun out of American Express. Norwegian Cruise (NCLH) falls 7% after the cruise-line operator gave a forecast for second-quarter profit that missed expectations and slashed a full-year outlook. The war in Iran has driven up fuel costs and hurt demand, the company said. In deals, GameStop proposed to buy eBay for about $56 billion in cash and stock, a bold attempt by Ryan Cohen to take over a storied e-commerce name several times larger. Some have wondered if Blockbuster or Circuit City would announce a hostile takeover of GameStop while it is buying eBay.  Iran moved to assert control over the Strait of Hormuz, a choke point for oil shipping, after President Donald Trump said the US would begin guiding ships not involved in the conflict through the waterway from Monday. The heightened tensions stalled a global stocks rally driven by optimism around the artificial intelligence trade and buoyant tech earnings. Sentiment was dented after Iran’s Fars agency claimed two missiles hit an American patrol boat, before erasing most of the declines after the US denied a ship was hit; the rapid recovery suggested the rally may not be over. Meanwhile, NATO Secretary General Mark Rutte warned European leaders that Trump is disappointed with their reluctance to assist with the war. “This is just another dip that investors will want to buy into,” said David Kruk, head of trading at La Financiere de l’Echiquier in Paris. “Yes, the news from Iran led to a spike in oil prices but we’re now used to those. Investors are very much focused on the surprisingly good earnings season we’ve had so far, on the AI trade.” Elsewhere, the AI narrative has continued to capture attention and tech-heavy Asia indexes in South Korea and Taiwan surged in Monday trading. However, some investors are using the rally to book profits, with hedge fund sharply unwinding risk in technology stocks for a second straight week, according to Goldman's Prime Brokerage.  As Bloomberg notes, first-quarter earnings strength hasn’t been limited to megacap tech. It’s showing up across sectors. Small caps are on a tear, bank profits are booming and firms keep plowing past macroeconomic obstacles. The breadth of earnings revisions has even accelerated since the start of earnings season. The EPS surprise for the median S&P 500 stock in Q1 is 6%, the strongest in four years, according to Morgan Stanley's Michael Wilson. Global stocks have been rising for more than a month as traders have set aside concerns about the economic fallout from the Middle East hostilities, with signs of corporate resilience driving US stocks to their best month since 2020. The proportion of companies missing analysts’ estimates is hovering at the lowest level since 2021 as earnings wind down for two-thirds of the stocks in the S&P 500 Index, which has posted five consecutive week of gains. “We’ve gone from a market mainly driven by geopolitics to a market focused on earnings and these have been really positive across the board,” said Vincent Juvyns, chief investment strategist at ING in Brussels “Tech has been a driving force, but financial and energy stocks have also lifted indexes and earnings expectations.” European shares slipped as carmakers fell following US President Donald Trump’s latest tariff threat. The Stoxx Europe 600 index declined about 0.5%, with the automobiles and parts sector down more than 1%. Mercedes-Benz Group AG dropped 2% and Bayerische Motoren Werke AG slid 1.9%. Trump said he would raise tariffs on European auto imports to 25%, adding to woes for the sector after a tepid earnings season.  Here are the biggest movers Monday: Nokia shares jump as much as 9% to their highest in 16 years as they play catch up with moves in the ADRs since Thursday’s European close Umicore shares rise as much as 16%, the steepest gain in 11 months, after the Belgian materials technology group said it expects group adjusted Ebitda for FY2026 to approach €1 billion, significantly above estimates Sinch gains as much as 20%, the most since July last year. The company, which sells cloud communication services, tracked gains in Twilio, which reported profit that beat analyst estimates and revenue growth forecasts Sanofi falls as much as 2% after Morgan Stanley cut to equal-weight from overweight, saying that while recent 1Q numbers may provide scope for a 2Q guidance raise, the investment story otherwise remains “catalyst-light” with key pipeline drug trial readouts now expected in 2027 Earlier in the session, AI chipmakers helped Taiwanese and Korean stock benchmarks reach record highs, helping the MSCI Asia Pacific jump as much as 2.3% on Monday, the most since April 8, and rising to new record highs. Tech-heavy benchmarks in South Korea and Taiwan surged more than 4.5% each. The moves came after the S&P 500 Index extended a record-breaking streak Friday to mark a fifth week of gains, following solid earnings from tech mega caps. The AI theme — a dominant feature of markets before the outbreak of the Middle East conflict — has returned to the forefront as last month’s ceasefire agreement between the US and Iran calmed investor nerves. Asia’s benchmark surged more than 13% in April, erasing almost all of the declines suffered in March. It is up 15% so far this year. “Investors are moving past the initial shock from the Middle East tensions, with more joining the FOMO trade,” said Francis Tan, Asia chief strategist at Indosuez Wealth in Singapore. Shares of SK Hynix soared nearly 13% on Monday to a record, while TSMC’s jumped 6.6% to their all-time high. Samsung’s stock also jumped more than 5% to a record. Markets in mainland China and Japan were among those shut for holidays. Markets like South Korea are currently performing well because of this AI-driven trade or hype, Dilin Wu, a research strategist at Pepperstone Group, said in a Bloomberg TV interview. “I would be cautiously optimistic on the Asian market in general,” as the geopolitical uncertainty and high oil prices may be a constraint to equities, she said. Oil pared early declines, with WTI above $101.50, as traders remained skeptical about President Trump’s proposal to guide neutral ships through the Strait of Hormuz after the Wall Street Journal reported the plan didn’t currently involve Navy escorts. S&P 500 E‑mini futures rise 0.1%, while Nasdaq contracts gain 0.4%. In FX, the yen spiked higher earlier with USD/JPY now trading near 156.80. Traders remain on watch for further FX intervention amid thin liquidity with Japanese and UK markets closed. Gold was little changed, hovering near $4,610 an ounce. Bitcoin rose to a three-month high above $80,000. Treasury futures edged lower to around 110‑18, with cash Treasuries closed for the Japan holiday. In FX, the Bloomberg Dollar Spot Index erases a 0.2% drop and traded near session highs following a sharp escalation in Iran tensions; USD/JPY gained to trade near session highs of 157.10 falling as much as 0.8% to 155.72 following what is now a third failed intervention. Japanese Finance Minister Satsuki Katayama said the government’s stance has been clear, when asked whether the authorities remain ready to intervene in the currency market to prop up the yen. Katayama said “no comments” when asked if authorities intervened in the market on Monday.  In rates, treasuries are lower as oil prices rise amid heightened Middle East tensions after US President Donald Trump said the US would guide stranded ships through the Strait of Hormuz. US yields are 3bp-4bp cheaper across a flatter yield curve, tightening 2s10s and 5s30s spreads by 0.5bp and 1.5bp respectively. 10-year trades near session high, up 3.5bp to about 4.41%. IG dollar issuance slate includes one small deal so far. Dealers expect about $40 billion of supply this week and about $175 billion for the month. Bunds fell with shorter maturities underperforming; two-year yield rises 4bps to 2.68% as ECB policymaker Peter Kazimir says a June hike is “all but inevitable.” Treasury auctions resume next week with 3-, 10- and 30-year sales In commodities, WTI crude oil futures are up more than 3%, as Iran moved to assert control over the Strait of Hormuz after President Donald Trump said the US would begin guiding ships not involved in the conflict through the waterway from Monday. Iran surged after Iran’s Fars agency claimed two missiles hit an American patrol boat, before erasing most of the declines after the US denied a ship was hit.  Looking at the US economic data calendar slate includes March factory orders at 10am. Fed speaker slate includes New York Fed President John Williams at 12:50pm Market Snapshot S&P 500 mini -0.2% Nasdaq 100 mini -0.2%, Russell 2000 mini -0.2% Stoxx Europe 600 -0.2% 10-year Treasury yield 4.40%, +3bps VIX +0.5 points at 17.5 Bloomberg Dollar Index little changed at 1,193.43 euro little changed at $1.1719 WTI crude +0.6% at $103.12/barrel Top Overnight News Oil jumped after Iran’s FARS news agency claimed that two missiles had hit a US warship that ignored warnings. Donald Trump had said that the US would begin guiding neutral ships through the Strait of Hormuz starting today. Iran warned the move would breach the ceasefire, Al Mayadeen reported. OPEC+ agreed to raise June quotas by 188,000 barrels a day, a symbolic increase with actual supply dependent on the reopening of Hormuz. BBG Crew members from an Iranian ship seized by the US after trying to breach its military blockade last month have been transferred to Pakistan for repatriation, according to Pakistan’s foreign ministry. CNN A sudden surge in the yen ensured traders remained on edge over the potential for Japanese authorities to step back into the market after last week’s intervention to curb declines: BBG China ordered local companies to defy US sanctions for the first time, telling them to ignore restrictions on five domestic refiners linked to Iran’s oil trade. BBG US senators propose an act on the China threat to strategic interests and the US Senators' China threat resolution is bipartisan. Berkshire Hathaway’s cash pile surged to a record $397 billion, as operating earnings rose 18% in Greg Abel’s first quarter as CEO. The firm sold a net $8.1 billion of equities. BBG The Bank of Korea's senior deputy governor said forward guidance on monetary policy would become more hawkish at the next meeting later this month, as it was time to consider interest rate hikes, according to pool reports shared by the central bank on Monday. RTRS Russia has stepped up security protocols for President Vladimir Putin amid fears of assassination as he grows more isolated and absorbed by his war in Ukraine. FT Global airlines have cut 2mn seats from their May schedules within the past two weeks, as concerns about fuel availability in the coming weeks intensify. Thousands of flights have been cancelled and several services have switched to smaller or more fuel-efficient aircraft to conserve fuel as they brace for supply disruption, according to data from analytics company Cirium. FT GameStop offered to buy eBay for about $56 billion in cash and stock, targeting a company several times its size. EBay shares surged about 10% premarket but remained substantially below the offer price. BBG Anthropic is nearing a deal to create a new joint venture that will sell AI tools to PE-backed companies. WSJ Wednesday will amount to a sort of Groundhog Day for US bond dealers, who will — as has been the case for more than a year now — be watching for any change in guidance from the Treasury in its latest plan for debt issuance: BBG Australia’s central bank is set to entrench its status as a hawkish outlier with a third straight interest-rate hike, diverging from peers that are mainly sitting tight to observe fallout from the US-Iran conflict: BBG South Korea’s largest pension fund removed its cap on currency hedging last month, allowing it to exercise more heft in the foreign exchange market at a time of won weakness: BBG A more detailed look at global markets courtesy of Newsquawk APAC stocks traded mostly firmer, although thinner liquidity prevailed amid the absence of Japanese and Mainland Chinese markets. ASX 200 trimmed early gains but remained rangebound ahead of the RBA decision, where a 25bps hike is expected. KOSPI surged at the open, with chip giants leading the market higher, SK Hynix +10%, Samsung Electronics +3.5%. Hang Seng opened higher, supported by tech strength, albeit Northbound and Southbound Stock Connect trading were closed due to the Labour Day holiday in Mainland China. Top Asian News Indian HSBC Manufacturing PMI Final (Apr) 54.7 vs. Exp. 55.9 (Prev. 53.9). Australian Building Permits YoY Prel (Mar) Y/Y 9.0% (Prev. 14.0%). Australian ANZ-Indeed Job Ads MoM (Apr) M/M -0.8% (Prev. -3.1%). Australian Private House Approvals MoM Prel (Mar) M/M 12% (Prev. 0.2%). Australian Building Permits MoM Prel (Mar) M/M -10.5% (Prev. 29.7%). Australian TD-MI Inflation Gauge (Apr) M/M 0.6% (Prev. 1.3%); Y/Y 4.3% (Prev. 4.3%). European bourses (STOXX 600 -0.2%) opened tentatively on either side of the unchanged mark, and have gradually moved lower, alongside a pick-up in energy prices. The DAX 40 (+0.3%) is the outperforming major this morning, whilst the IBEX 35 (-1%) lags vs peers. As a reminder, the FTSE 100 is closed on account of the UK’s May Bank Holiday. The focus this morning has been on a) geopols and b) trade. (See geopolitical section above for details). On the trade front, Trump threatened the EU with 25% tariffs on European cars/trucks, after suggesting that the bloc is not complying with the trade deal. The White House said that it would implement the tariffs through Section 232, which are typically subject to long due process/probes. The Autos sector in Europe this morning has been mildly hit following Trump’s threat, with the likes of BMW (-1.3%) and Mercedes (-1.2%) on the backfoot, whilst Stellantis (-0.1%) remains fairly resilient. The divergence is explained by BMW/Mercedes importing many of their cars into the US through European factories, whilst Stellantis has a higher industrial presence within the region. European sectors are mixed. Media and Tech take the top two spots, whilst Autos and Media are the clear laggards. The Tech sector gains follow the strength seen in APAC trade overnight, whereby SK Hynix shares rallied 12%, as the sector reacted to continued optimism surrounding strong spending for AI data centres. Top European News Some Labour MPs said it was imperative that Chancellor Rachel Reeves stayed in post to reassure markets even if there was a change of leadership. Labour MPs feared bond market chaos if Rachel Reeves was ousted alongside UK PM Starmer, according to The Sunday Times. Reeves and Starmer are expected to come under pressure if local elections go as badly as feared. Wes Streeting had the backing of enough Labour MPs to launch a leadership challenge within days, according to The Telegraph. He had reportedly recruited more than 81 MPs, the minimum needed to trigger a challenge. UK PM Starmer was alerted to Streeting’s plans after a Downing Street staffer accidentally texted details. Some Streeting supporters want him to strike as soon as the Friday after the local elections, according to The Telegraph. PM Starmer loyalists on Labour’s ruling body are no longer prepared to block Andy Burnham’s return to Parliament, according to The Telegraph. Cabinet allies of UK PM Starmer have reportedly urged Labour MPs to back the PM and avoid a leadership contest, FT reported. Wes Streeting is ready to launch leadership challenge against Starmer, The Telegraph reported; he has recruited enough MPs to trigger a contest, with supporters calling for him to strike after local elections next week.Andy Burnham has a plan to return to Westminster 'within weeks', according to the Guardian, citing allies. FX G10s are mixed against a relatively flat USD; the Kiwi outperforms a touch, whilst the Swiss Franc marginally lags. Ultimately, price action has been lacklustre throughout the European morning, awaiting updates on the geopolitical and trade front. DXY remains within a 97.97 to 98.29 range, and well below its 100- and 200-DMA at 98.46 and 98.54, respectively. The Dollar has been moving incrementally higher throughout the European morning, alongside a bid in the energy complex. Focus has ultimately been on the geopolitical situation, whereby President Trump announced plans to guide neutral ships safely through the Strait, over the weekend. Unsurprisingly, this was met with resistance by the Iranians, with an official this morning spurring some mild risk off, after he said that the US would be attacked if they approach and enter the Strait of Hormuz. EUR is essentially flat, and trades around 1.1720 within a 1.1711 to 1.1750 range; the trough is in close proximity to both its 21- and 100-DMA at 1.1711 and 1.1709, respectively. The single currency has had several Final EZ Manufacturing PMIs to digest, but they were broadly subject to only very mild revisions. Also of note was the release of the ECB’s Survey of Professional Forecasters, which saw upward revisions to near-term inflation, whilst remaining unchanged on a longer-term basis. No move on this. JPY is currently flat vs USD this morning, but did experience some volatile trade in the Asia session, amidst thin liquidity (Japan on holiday for Golden Week). A sharp dip of circa. 38 pips was seen in USD/JPY overnight, but this move mostly pared as the session progressed. Touted intervention at this time, but markets will look for confirmation. MUFG opines that whether this bout of intervention proves effective, will depend on fundamentals such as Fed-BoJ policy divergence. In its base case, analysts see two BoJ hikes this year, which would allow “a gradual move lower in USD/JPY towards the 152 levels”. USD/JPY currently trades around 157.00 (vs 155.70 trough). The potential intervention today didn’t quite lead the pair down to recent troughs of 155.48; a level not seen since late-Feb of this year. India is reportedly mulling steps to make Dollar inflows more attractive, to help the weak INR, sources suggest; non-resident FX deposit scheme and tax reliefs on foreign government bonds are reportedly being looked into. Fixed Income A slightly bearish start to the week, though conditions are thin on account of holidays in China, Japan and the UK. USTs down to a 110-15+ trough this morning, hit by an uptick in energy, which reverberated through on a wider airing of comments from Iran regarding the US' activity around Hormuz. At most, USTs have been lower by 5+ ticks. Ahead, we await remarks from Fed's Williams and then the financing estimates ahead of refunding later in the week. From Williams, we are attentive to his view on forward guidance after several Fed members, including three voters, objected to language implying the next move would be a cut. In his most recent remarks, Williams described policy as modestly restrictive and well-positioned, adding that the Middle East conflict was already lifting inflation. Bunds are in-fitting directionally, though in a slightly wider range and with modestly greater pressure on catch-up from the long weekend. Hit a 125.09 base with losses of 27 ticks at most, bottoming alongside the above move in USTs. No real reaction to the region's Final Manufacturing PMIs, or the latest ECB SPF, which saw near-term inflation revised up but the longer-term view maintained. Commodities Energy benchmarks are at highs, firmer by in excess of USD 2/bbl for WTI and Brent and over EUR 0.50/MWh for Dutch TTF. Specifics for the space include US President Trump announcing Project Freedom, to get neutral vessels out of Hormuz. In response, Iran said US interference would be considered a ceasefire violation. Since, and prompting notable energy upside, the Iranian Major Abdullahi said any foreign forces, but particularly US, would be attacked if they approach and enter the Strait of Hormuz. The latter update was enough to lift WTI Jun'26 and Brent Jul'26 to highs of USD 104.36/bbl and USD 110.68/bbl, respectively. Gains that weighed on the equity and fixed income complexes while providing support to the USD. Note, this entirely overshadowed more constructive updates, such as the US handing over 22 crew members from the MV Touska, an Iranian container ship. Ahead, we have remarks from POTUS at 20:00BST. Before that, geopolitical updates around Hormuz or the Iranian proposals, which Trump said were unlikely to be accepted as Iran had "not yet paid a big enough price", will be in focus. Spot gold on the backfoot, as the inverse correlation between energy and the precious metal sends it to a USD 4574/oz low, with downside of near 1% on the session. Furthermore, conditions were a little thin overnight, given the absence of Japan and mainland China. The latter point is weighing on copper prices, while conditions there are thin on account of the UK holiday, and as such, there is no LME trade. Seven OPEC+ countries decided to implement a production adjustment of 188k BPD (as expected) in June 2026, according to OPEC. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman reaffirmed their commitment to market stability, said they would continue to monitor market conditions, and are set to meet again on June 7th. As a reminder, the UAE withdrew from OPEC and OPEC+ on May 1st, 2026. ADNOC said it would award USD 55bln in projects for 2026-2028 to advance its growth strategy. Co. said the awards would reinforce its five-year capital expenditure plan and support a new phase of project execution across its value chain to meet growing global energy demand. US President Trump said the US is producing and selling more oil right now. Trade/Tariffs European Commission said it is implementing EU-US trade agreement with standard legislative practice; it is keeping US admin fully informed throughout. Will keep options open to protect EU interests if the US takes measures inconsistent with trade deal. US President Trump said his trip to China with President Xi will be great. US President Trump said EU is not complying with trade deal and he will increase tariffs on EU cars and truck imports into the US; tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF. Australian PM Albanese said Australia signed a joint declaration on economic security cooperation with Japan; agreement will make the countries more resilient to economic shocks and uncertainty. Australian PM noted a joint statement on critical minerals with Japan elevates critical minerals to a core pillar of economic and security relationship, and defence and security cooperation will further develop the already advanced defence relationship. UAE confirms ongoing discussions with the US on an FX swap agreement. EU Commission President von der Leyen said the Canada-EU partnership is strengthening. EU Parliamentary Delegation to the US Chair Benifei said he will call for the European Commission to bring out the "trade bazooka", as they need a mechanism that makes violating trade agreements too costly for the US. Australian PM Albanese said Australia signed a joint declaration on economic security cooperation with Japan; agreement will make the countries more resilient to economic shocks and uncertainty. Australian PM noted a joint statement on critical minerals with Japan elevates critical minerals to a core pillar of economic and security relationship, and defence and security cooperation will further develop the already advanced defence relationship. Japanese PM Takaichi is to meet with Australian PM Albanese to discuss energy and rare earths. Central Banks ECB's Kazimir said policy tightening in June is all but inevitable. Europe is increasingly likely to face a prolonged period of broad-based price increases, with higher energy prices set to spread to the rest of the economy. ECB's Simkus said it is clear that they have deviated from the baseline scenario. ECB Survey of Professional Forecasters (Q2'26): Headline and core HICP inflation revised up in the near term, while remaining unchanged further out. Headline and core HICP inflation revised up in the near term, while remaining unchanged further out. Real GDP growth expectations revised down for 2026 and 2027, but unchanged thereafter. Unemployment rate expectations unchanged. ECB's Villeroy said they are facing an unprecedented shock. Expects France to have a deficit of 5% of GDP, should avoid a recession. ECB's Muller said ECB rate is at more-or-less neutral level and allows time to wait. ECB's Rehn said fast action is needed if second-round inflation is seen. ECB Wunsch FT interview: "Europe ‘naive’ in clinging to old economic model". RBNZ Board Member Gai said supply shocks such as the Hormuz situation have raised the neutral rate. BoK Deputy Governor said it is time to think about a rate hike, Yonhap reported; cites more resilient growth and higher inflation than expected. US Event Calendar 10:00 am: United States Mar Factory Orders, est. 0.59%, prior 0% 10:00 am: United States Mar F Durable Goods Orders, est. 0.8%, prior 0.8% 10:00 am: United States Mar F Durables Ex Transportation, est. 0.9%, prior 0.9% Tyler Durden Mon, 05/04/2026 - 08:39

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  • Tyler DurdenBy Tyler Durden

    "Just Another Dip Investors Will Buy": Futures Drop, Oil Rises On Renewed Iran Tension US futures whipsawed and crude oil spiked higher as tensions flared up again in the Middle East, taking the focus off a run of strong earnings by megacap tech companies. As of 8:00

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Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.

Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.

Location: Tehran
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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?