מעקב משבר איראן-המפרץ 2026
CC
Events Archive
strikeJul 15, 2026

Futures Rise After Blowout ASML Earnings Boost Tech Sentiment

Summary

Futures Rise After Blowout ASML Earnings Boost Tech Sentiment Futures are higher led by technology stocks, after solid earnings from ASML offered fresh evidence of the relentless demand for chips enabling the global AI buildout and boosted sentiment across the AI Infra trade. As of 8:00am ET, S&P futures are up 0.1% and Nasdaq futures rise 0.4%, both off session highs. In Tech, focus is on ASML +4%  on guidance raise (US Semicap Equipment peers +2-4% in sympathy),  PYPL +20% on reports of a Stripe/Advent takeover offer;  AAPL +0.50% and BABA +4% on China approval of Alibaba “Qwen AI” integration into the iPhone experience; and NVDA flat on Jensen commentary that Vera Rubin chips were on track for deliver to customers (countering delay talk).  On the US/Iran front, the US carried out another round of strikes near the Strait of Hormuz overnight and President Trump said the US may hit power plants and bridges next week unless Iran returns to negotiations and makes a deal (also have report from Axios that Trump held a meeting in the situation room yesterday to discuss a new offensive). According to JPM, the tech complex is also getting a boost thanks to stabilization in Korea, with KOSPI adding 6% overnight (JPM APAC says that foreign & institutional demand is stepping into Korea as domestic retail investors are selling). Asia finished mixed (Shanghai -29bps / Hang Seng +1.4% / Nikkei +1.49% / Kospi +6.3%) as the day to day volatility continued in Korea (Hynix +4%, which appeared to be a “catch up” to SKHY post its +27% move in the US session). Bond yields edged higher in the US and Europe, with the yield on 10-year Treasuries up one basis point to 4.60%. The dollar wavered. While money markets have mostly priced out the possibility of a Federal Reserve hike later this month, expectations for a move in September remained high. Commodities are seeing a bid with gold the notable laggard. Brent crude futures rise 0.5% to just above $85 a barrel while European natural gas futures rise 3% to the highest since March. The Bloomberg Dollar Spot Index is near flat. Today’s macro data focus in on PPI and then macro read-through from names in Fins and Transports.   In premarket trading, Mag 7stocks are mostly higher (Apple +0.6%, Amazon +0.3%, Microsoft +0.3%, Tesla +0.2%, Meta Platforms +0.2%, Alphabet -0.5%, Nvidia -0.2%) ASML Holding NV ADRs (ASML) gain 3% after the company lifted its annual sales forecast for the second time this year and laid out plans to increase production as a surge in artificial intelligence spending drives demand for the Dutch company’s chip-making machines. BlackRock (BLK) gains 4% after pulling in $192 billion of net client cash in the second quarter, with investors pouring money into exchange-traded funds and pushing total assets above $15 trillion for the first time. Elevance Health (ELV) falls 7% after boosting its profit guidance by less than Wall Street had hoped, as the company grapples with recent federal policy changes that have made healthcare more expensive. Peer health insurers are also lower, with Humana (HUM) down 1.6% and Centene (CNC) falling 4%. Lionsgate Studios (LION) climbs 7% after Reuters reported that the company is exploring a sale and has attracted takeover interest from Bollore Group. Reuters cited three unidentified people familiar with the matter. PayPal (PYPL) jumps 20% after Reuters reported Stripe and private equity company Advent ​International have made a joint offer to ‌buy PayPal for $60.50 per share, valuing the payments firm at more than $53 billion. Pentair (PNR) tumbles 22% after the water treatment company cut its adjusted earnings per share guidance for the full year. The company also said it appointed Robert Fishman as interim CFO after Nicholas Brazis resigned on July 10 to pursue another opportunity at a private company. Phoenix Education (PXED) drops 10% after the online education company trimmed its net revenue guidance for the full year. SK Hynix ADRs (SKHY) fall 6%. SpaceX (SPCX) is up 0.7% after closing on Tuesday just $1 above the IPO price. In other corporate news Nokia says it developed the first commercial AI-driven radio access network (RAN) platform together with Nvidia to radically increase the amount of data operators can transmit using existing infrastructure. Apollo landed the biggest private credit deal on record, offering Broadcom $35 billion of debt, in the latest sign that the buyout shop-turned-blue chip lender is muscling in on the turf of Wall Street. OpenAI’s much-anticipated push into consumer devices is slated to begin with a mobile, screen-free smart speaker designed to be a new type of home computer for the AI era. Lionsgate Studios is exploring a sale and has attracted takeover interest from Bollore Group, Reuters reports. Tech sentiment was boosted by blowout results from European chip giant ASML and a rebound in Korean stocks. Coming into ASML’s results, analysts set the bar high, expecting an upgrade to full-year net sales guidance. Europe’s most valuable company delivered, but clarity is needed on its conference call as to whether the chip equipment leader can meet the required capacity in the face of soaring AI-fueled demand.  And speaking of lack of capacity, overnight we reported that the biggest US power grid failed for a third straight time to secure enough future supply commitments to ensure reliability in coming years amid a boom in data center demand. Power-hungry data centers have increased supply costs for the largest US electric grid by more than 60%, the system watchdog said.  Oil prices rose for a third straight day after the US military launched a fresh wave of strikes against Iran, with Brent advancing 1.1% to around $85.60 a barrel. Overnight President Trump said the US may hit power plants and bridges next week unless Iran returns to negotiations and makes a deal (also have report from Axios that Trump held a meeting in the situation room yesterday to discuss a new offensive).  Despite the uncertainty created by the standoff, investors say crude prices remain well off their highs above $100 a barrel from earlier in the conflict. Instead, traders are looking at whether earnings can justify high valuations, with early results this season looking promising. “Investors are aware that the road toward peace could never have been expected to be a straight line,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “As such, company fundamentals matter more than ever.”  Bullish AI momentum is not without risks. Repeating what we said over the weekend, Bloomberg writes that signs of Hyperscaler credit stress has reached the highest since Goldman Sachs launched the basket in February. Hyperscaler bond basket: another day, another record wide https://t.co/Ge41UpsaL9 pic.twitter.com/nssT8MoTeH — zerohedge (@zerohedge) July 15, 2026 The data-center building boom has sparked an explosion of debt funding, with investors not paying enough attention to the terms of their lending, Bloomberg also noted.  The threat posed by oil prices will remain in focus with the release of June’s producer price print. Inflation data on Tuesday delivered a strong downside surprise, prompting traders to dial down their expectations for near-term interest-rate hikes. Fed Chair Kevin Warsh will testify in the Senate on Wednesday, with New York Fed President John Williams and Governor Lisa Cook scheduled to speak at separate engagements.  “Any hint toward the CPI print being an outlier could revive rate hike concerns,” Kempner said. “This would be even more true if other Fed officials start to echo yesterday’s comments from the Fed Chair about the mission being ‘not yet’ accomplished.” In politics, acting Attorney General Todd Blanche is set to appear Wednesday before the US Senate in support of his nomination to lead the Justice Department — just days after a federal judge in Miami issued harsh criticism of his actions in the job. Over in Europe, Marine Le Pen’s revived bid for the French presidency is giving investors like Vanguard and Natixis another reason to avoid the country’s government bonds. In Europe, the Stoxx 600 is little changed thanks to ASML whose shares rise ~5% after the firm lifted its annual sales forecast for the second time this year and laid out plans to increase production. Gains in luxury names are also helping to offset losses elsewhere after Richemont sales expanded nearly twice as much as expected. Here are the biggest movers: European fintech stocks gain after Reuters reported that Stripe and private equity company Advent are offering to buy PayPal at a valuation of more than $53 billion Richemont surges as much as 7.4% to an all-time high after the Swiss jeweler reported first-quarter sales growth that was nearly twice as strong as expected ASML shares rise as much as 7.9% after the chip equipment firm raised FY guidance for this year and set capacity expansion goals for the next two years ICG shares rise as much as 3.4%, trimming year-to-date declines, after the alternative asset manager reported first-quarter assets under management slightly ahead of estimates Barratt Redrow shares rise as much as 6% after the UK homebuilder said it will return £400 million to shareholders this year. Sector peers are also finding support from Barratt’s FY update Camurus shares jump as much as 16%, the most since November, after the Swedish biopharmaceutical firm reported better-than-expected revenue and profit for the second quarter Rio Tinto falls as much as 2.3% in London, the most in a week, after the miner reported 2Q copper production that declined from the previous comparable period Elis shares slide as much as 4% to €24.64 after holder Canada Pension Plan Investment Board sold about 19.3 million shares for €24.60 apiece AFRY shares fall as much as 12%, hitting a 2014 low, after the Swedish engineer’s earnings fell short of expectations in the second quarter, according to analysts at Jefferies Handelsbanken shares decline as much as 6.2% after the lender reported net interest income for the second quarter that missed estimates while analysts also note weak lending growth in Sweden Premier Group falls as much as 7.3% in Johannesburg, the most since April 2025, after stockholder CapitalWorks sold shares in the packaged foods company at a discount Asian stocks climbed the most in almost two weeks after a softer US inflation print relieved concerns over imminent rate hikes, while South Korea led advances in technology shares. The MSCI Asia Pacific Index gained 1.9%, the most since July 3. Leading contributor SK Hynix soared 9% in Seoul, tracking a surge in its American depositary receipts Tuesday, while chipmakers Samsung and TSMC also climbed after gains in US tech shares. South Korea’s benchmark Kospi jumped 6.2%, while Taiwan’s Taiex climbed the most in two weeks. Mainland China stocks edged lower after data showed the economy slowed more than expected last quarter, to the weakest in more than three years.  With earnings seasons starting, Asian software and IT services stocks followed global peers lower after IBM missed earnings expectations. Meanwhile, the Hang Seng China Enterprises Index rose the most in a week, as internet firms such as Tencent and Alibaba gained.  “Softer-than-expected US inflation data has reduced the risk of a more aggressive Fed tightening cycle, which had become a more prominent concern over the past week as renewed US-Iran tensions pushed oil prices higher,” said Rajeev De Mello, global macro portfolio manager at GAMA Asset Management. “Investors have also absorbed last week’s SK Hynix equity issuance, allowing the Korean semiconductor sector to rebound, while the US earnings season has opened on a constructive note.” In FX, the Bloomberg Dollar Spot Index is near flat. The Norwegian krone slipped to the bottom of the G-10 FX pile, falling 0.4% against the greenback after Norway’s core inflation surprised to the downside. In rates, treasuries are cheaper by 1bp to 2bp across the curve, unwinding a portion of gains seen Tuesday following a soft CPI print. Treasury curve slightly flatter on the day with front-end leading losses, where 2-year yields trade around 4.215% and cheaper by 2bp on the day. US 10-year yields trade around 4.605% with bunds and gilts both trading slightly cheaper in the sector. IG dollar issuance slate includes a couple of deals. Goldman Sachs was one of three issuers Tuesday, selling a combined $13.9 billion of bonds. They paid an average of about 2.3 basis points in new issue concessions on deals that were 2.2 times covered. US session focus includes a handful of Federal Reserve speakers and June PPI data.   In commodities, WTI futures advance almost 1% rising for a third day, and adding some upside pressure on yields, as Trump threatened further strikes on Iran after the US resumed its blockade on the Strait of Hormuz, and the US carried out more strikes against Iran, hitting dozens of military sites near the strait and along the nation’s coast. Brent crude futures rise 0.5% to just above $85 a barrel while European natural gas futures rise 3% to the highest since March. Precious metals decline. US economic data calendar includes July Empire manufacturing and June PPI (8:30am). Fed calendar includes Williams (8:45am), Warsh testifies before Senate Banking Committee (10am), Cook (1pm) and Musalem (6:30pm). Fed releases latest Beige book at 2pm Market Snapshot Top Overnight News The US launched more airstrikes on Iran, with Donald Trump pledging to intensify his bombardment until Tehran stops attacking ships in the Strait of Hormuz and agrees to open the waterway. BBG As the U.S. war with Iran resumes, there is little sign that diplomacy can stop it. Efforts by Arab, Pakistani and other mediators to revive negotiations or restore a ceasefire have shown no public signs of progress, and the overall feeling in the Middle East and beyond is that the fighting will simply continue for now, according to two analysts and a person familiar with the situation. Politico The cost of the war with Iran could be more than triple the most recent estimate of roughly $30 billion, according to three U.S. officials and three people familiar with the internal cost estimates. NBC Nasdaq futures advanced as ASML raised its annual sales forecast for the second time this year, offering fresh evidence of AI-driven demand. SK Hynix continued its volatile run though, with the stock jumping in Seoul but ADRs falling premarket. BBG Stripe and Advent offered to buy PayPal at a valuation of more than $53 billion, Reuters reported. Their $60.50-a-share bid is around 28% more than PayPal’s closing price yesterday. RTRS BABA (Alibaba)’s Qwen AI will be integrated into Apple Intelligence in China. RTRS China’s economy slowed more than expected last quarter to the weakest in more than three years, raising pressure on policymakers to speed up public spending to ensure their annual growth goal is met. China’s Q2 GDP came in a bit below expectations (+4.3% vs. the Street +4.5% and down from +5% in Q1), but retail sales were ahead of plan for June (+1% vs. the Street -0.1%), as was industrial production (+5.3% vs. the Street +4.6%)  BBG Trump administration may pursue further executive action addressing China-related concerns over open-source AI models, according to Semafor citing an unnamed senior White House official. Beijing plans to fight attempts to monopolize advances in AI technology, state newspaper People’s Daily reported, following US attempts to curtail overseas access to cutting-edge models. BBG The rush for cash by some of the world’s largest companies is putting the long bull market at risk. Investors have been cheering the raging bull market for years—three years and nine months, to be precise—with the S&P 500 having more than doubled during that period. Now companies are racing to take advantage, raising concern that the party could be coming to an end. WS Fundamental L/S Gross leverage has declined in 5 of the last 6 weeks to 207.2% (28th percentile 1-year, 75th percentile 3-year). After reaching a 4-year high in early June, Fundamental L/S Net leverage has fallen -6.7 pts to 54.5% (22nd percentile 1-year, 39th percentile 3-year). Goldman PB A more detailed look at global markets courtesy of Newqsuawk APAC stocks traded with a positive bias as most major indices took impetus from the gains on Wall St, where sentiment was underpinned, and Fed rate hike bets were trimmed following softer-than-expected CPI data, while US President Trump also abandoned plans for a 20% Hormuz fee. ASX 200 eked out marginal gains with outperformance in miners following Rio Tinto's quarterly update, although the upside in the index was capped as defensives lag. Nikkei 225 rallied amid tech strength, but with further upside limited following weak Machinery Orders. KOSPI was boosted by the tech-related momentum and with SK Hynix shares up by a double-digit percentage as it played catch-up to the 27% surge in its ADRs. Hang Seng and Shanghai Comp diverged with the mainland lagging after a slew of mixed data releases, including Chinese GDP and activity data. Top Asian News China announced a five-year plan to boost consumption and targets CNY 60tln yuan in retail sales by 2030, according to Nikkei. China's stats bureau deputy head said China's CPI and PPI are in reasonable ranges and hard won given most countries face big price increases, while the official added that China's energy supplies are sufficient, production is stable, and imports are under control. Furthermore, it was stated that the Q2 GDP growth slowdown is due mainly to short-term factors and external factors, while H1 GDP growth lays a good foundation for achieving the full-year growth target. Japan added a footnote on BoJ autonomy to its revised fiscal policy draft, Bloomberg reported. Japanese PM Takaichi said FX rates should be determined by the market; boosting international competitiveness will boost the credibility of JPY. India announced INR 1.28tln new semiconductor manufacturing plan, according to reports. European bourses (STOXX 600 U/C) are broadly lower, with the outperformance in the AEX (+0.8%) following ASML earnings. Despite the lack of clear drivers for the underperformance, geopolitics persist, with US President Trump announcing that the US will conduct strikes again on Wednesday and threatening to hit power plants and bridges unless Iran starts to negotiate. Sectors are broadly negative. Consumer Products & Services (+1.2%) tops the sector pile, as positive Richemont earnings lift other luxury names, while Tech (+1.0%) also gains. To the downside lie Optimised Personal Care (-1.1%), Chemicals (-1.1%) and Telecoms (-0.8%). The highly anticipated ASML earnings did not disappoint. Top and bottom line figures beat estimates while raising its FY revenue guidance to EUR 43-45bln (exp. 39.4bln, prev. guided 36-40bln). Looking ahead to Q3, ASML projects sales of between EUR 11-12bln, above Jefferies' estimates of EUR 10.34bln. ASML stated that they are considering a 30% boost to EUV output for 2027 and again in 2028. Both Citi and JPMorgan highlighted this as a positive, with JPMorgan projecting it to add over EUR 65 in EPS in 2028. However, Citi points out that the 2027 production figure would amount to around 85 machines, which is below its forecast of between 90-100. Gains were seen as much as 7.4% at the start of trade, but has since pulled back to around 3.7%. US equity futures are firmer across the board. NQ (+0.5%) is the clear outperformer, helped by the ASML earnings and gains in SK Hynix overnight; however have come off in recent trade (in line with ASML). Banking earnings continue in the US, with Morgan Stanley on the docket. Top European News Ed Miliband's opponents in the Labour Party believe he has failed his bid to become Chancellor, with current Home Secretary Mahmoud seen by some MPs as favourite to take the Chancellor role in Andy Burnham's new government, according to FT. OECD said the UK economy to grow 0.9% in 2026 and 1.1% in 2027, with risks tilted to the downside. Added that fiscal discipline is essential to the UK. German government is planning a EUR 13.3bln energy relief package for 2027, which will be used to assist businesses and consumers. FX G10s mixed against the Buck, which is flat on the day despite being off recent lows. AUD and GBP lead; NOK underperforms. DXY looks to breach 101.00 after lifting from recent lows in the wake of cool US CPI on Tuesday. As Fed Chair Warsh said during the House testimony on Tuesday, one series does not make a trend, so while bets are trimmed for an immediate hike (prev. markets saw a 50% probability of tightening in July), eyes remain on incoming data. In addition to the post-CPI bounce, the Buck is being helped by energy benchmarks, which remain elevated amid a lack of positive Gulf newsflow. NOK is the worst G10 performer after the Norges Bank’s preferred inflation gauge, CPI-ATE, came in cooler than analyst/Norges Bank forecasts. NOK saw immediate pressure on the release (which was originally scheduled for 10th July). AUD and GBP are the best-performing G10 currencies, helped by the above factor as the cooler-than-expected US CPI trimmed bets for near-term Fed tightening, increasing appetite for these high-yielders. For GBP specifically, the UK press suggested Energy Secretary Miliband was less-favoured in the race for Chancellor, now Foreign Secretary Cooper and Home Secretary Mahmood are favourites for the job. Markets think that Mahmood would be fiscally conservative given her view on immigration; however, she lacks experience in economic roles, whereas Cooper previously worked as Chief Secretary to the Treasury under Gordon Brown. GBP/USD +0.1% and either side of the 1.34 mark. Fixed Income USTs remain contained, caught between CPI and Warsh. Bunds lower on energy, but off worst levels despite a sharp but ultimately short-lived decline in the early morning. Gilts opened on the backfoot, given energy. USTs flat in a narrow 108-24+ to 108-31+ band, fresh catalysts light. Commentary remains focused on June’s dovish CPI report and the subsequent hawkish Fed testimony from Chair Warsh. Today, we get more insight on both points via Warsh’s Senate testimony and US PPI for June. Additionally, Fed’s Williams (voter) is on the docket. Bunds lower by around 20 ticks, but are a similar amount clear of the 124.79 trough. A base that printed in a bout of somewhat short-lived bout of pressure this morning. No obvious catalyst behind that, though it did occur in tandem with modest DAX and EUR downside. Ongoing focus on pension reform may have contributed, given reporting earlier in Politico that suggested pension points could be reduced in some scenarios, saving multiple billions; though, the debate continues and won’t be resolved this week. Alternatively, or additionally, the German Finance Ministry outlined that some EUR 13bln or energy-related relief is planned for 2027, funding for that to be sourced from the climate relief package. Gilts opened lower by 16 ticks and have since moved lower to an 86.89 base, holding above the 86.87 and 86.42 lows from the last two sessions. Pressure the typical underperformance seen in Gilts when energy leads. No real relief from reports, such as the FT, suggesting that Miliband has lost the race to be Chancellor; though, outlets make clear that no decision has been made yet, ahead of Burnham becoming PM this weekend. Germany sells EUR 0.753bln vs exp. EUR 1.0bln 2.50% 2054, EUR 0.768bln vs exp. EUR 1.0bln 2.90% 2056 & EUR 0.759 vs exp. EUR 1.0bln 0.00% 2052 Bund. Australia sells AUD 700mln 4.50% Apr 2033 bonds b/c 4.29, avg yield 4.6620%. Commodities Geopolitics remains in focus, with US and Iran still conducting strikes. Markets appear to be accustomed to the ongoing attacks, with focus now on how transits through the Strait are being impacted. On that note, 11 vessels went through the passage, 9 of those used the Iranian-designated route. Yen Ling Song of S&P Global Energy wrote that “we are seeing significantly greater caution among shipowners and operators”, given the threat of Iranian strikes. On this front, traders have continued to price in another supply glut this month – and recent rhetoric from President Trump/Iran, does not point to a near term resolution. To recap, Trump warned that they would be striking Iran on Wednesday night, and threatened to hit power plants/bridges next week, unless Iran negotiates. Iran stated that it is a mistake to think military action will force them to talk. Crude benchmarks are modestly firmer this morning. Price action overnight was fairly rangebound, but then dipped in early European trade – benchmarks have remained near recent lows since. Brent Sept’26 traded within a USD 85.02-86.55/bbl range. Spot gold is a little lower this morning, but ultimately within the prior day’s ranges. Price action which appears to be a bit of pull-back from the extremes seen on Wednesday, following the cooler-than-expected CPI print. The yellow-metal currently holds above the USD 4k/oz mark, in a USD 4,017-4,062/oz range. Base metals hold a negative bias, as markets digested mixed Chinese data. 3M LME Copper traded within a USD 13,550-13,677/t range. US Private Inventory Data (bbls): Crude -0.6mln (exp. -2.7mln), Distillates +2.3mln (exp. +1.0mln), Gasoline -1.7mln (exp. +0.6mln), Cushing +0.2mln. Trade/Tariffs EU Trade Commissioner Sefcovic said they are aiming to have the EU-India FTA implemented in 2027. Central Banks ECB's Nagel said from a monetary policy perspective, it remains advisable to react with caution but to act decisively if needed. Monetary policy will maintain its vigilant stance. ECB's Panetta said EZ inflation is currently around 3% and expected to remain above that level until early 2027. Risks linked to higher energy prices, tighter financial conditions and persistent geopolitical uncertainty appear to be only partially incorporated into market evaluations. Several indicators suggest the rise in equity markets seen after the Iran conflict is due to an underestimation of risks. ECB's goal is to keep inflation expectations firmly anchored, limiting indirect and second-round effects of shocks. ECB's Kocher said they are ready to take monetary policy actions at any time if needed, adding that the ECB will do what is needed to bring inflation to 2% in medium-term and no second round effects seen currently. ECB's Cipollone said that he is not currently seeing second round inflation effects, but monitors inflation expectations "very closely". Geopolitics US President Trump said in a pre-recorded Fox News interview that they are beating up Iran badly and Hormuz has to stay open, while he added that strikes will continue until he says it is enough, as well as stated they will save energy targets for last and will ultimately hit energy targets. Trump also said they will hit Iran hard on Wednesday night, and that next week will get really bad for Iran, in which they will hit Iran's power plants and bridges next week unless Iran comes to the negotiating table. Furthermore, he said US officials spoke to Iran on Tuesday and told Iran that it better make a deal. US Central Command forces began launching an additional round of strikes against Iran at 15:00EDT/20:00BST on Tuesday, to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz, while CENTCOM later announced the completion of strikes against Iran. US struck Qeshm Island in southern Iran, and explosions were heard in the maritime area of eastern Hormozgan and Sirik, while explosions were heard in Bandar Abbas and Hengam Island. Explosions were also heard in Bampur and Chabahar in Iran, although Iran's semi-official news agency Tasnim noted officials denied reports of explosions in Chabahar, while explosions were reported in Iran's port city of Bandar Imam Khomeini, and a mineral water plant in Deloran was hit by three projectiles. Furthermore, reports noted that air defences around the Bushehr Nuclear Power Plant in Iran became active. IRGC said it targeted enemy weapons and parts storage in Bahrain and Kuwait, while it targeted a drone ramp in Kuwait's Ali Al Salem air base and targeted US positions at Jordan's Azraq base, as well as the US Fifth Fleet Command HQ, fuel facilities and equipment in Bahrain. IRGC said as long as the US evil stays in the region, not a drop of oil and gas will be exported from the region, and that US aggression will have no result other than delaying the opening of the Strait of Hormuz. Iran will respond to the US attacks, Tasnim reported. Iran's Deputy Foreign Minister Gharibabadi said the US is making a mistake if it thinks its military attacks and blockade will force them to request negotiations, but also commented that Iran's return to negotiations and tolerance regarding the Strait of Hormuz is possible. Furthermore, he said the MoU effectively no longer exists and that no country should expect Iran to continue implementing the terms of the memorandum. Israeli PM Netanyahu is reportedly to travel to Washington on Saturday evening, aiming to meet with US President Trump, Yedioth reported. US Event calendar 7:00 am: Jul 10 MBA Mortgage Applications, prior -2.2% 8:30 am: Jul Empire Manufacturing, est. 9.2, prior 5.7 8:30 am: Jun PPI Final Demand MoM, est. 0%, prior 1.1% 8:30 am: Jun PPI Ex Food and Energy MoM, est. 0.3%, prior 0.4% 8:30 am: Jun PPI Final Demand YoY, est. 6.2%, prior 6.5% 8:30 am: Jun PPI Ex Food and Energy YoY, est. 5.1%, prior 4.9% Central Bank speakers 8:45 am: Fed’s Williams Delivers Keynote Remarks 10:00 am: Fed Chair Warsh Testifies Before Senate Banking Committee 1:00 pm: Fed’s Cook Speaks on the Economic Outlook 2:00 pm: Fed Releases Beige Book 6:30 pm: Fed’s Musalem Delivers Welcoming Remarks DB's Jim Reid concludes the overnight wrap A quick reminder the WOW! pack can be found here but life moves onto to the 2026 "Mapping the World's Prices" document which saw a whole host of press coverage from all round the world yesterday from Athens to Zurich and Berlin to Wellington. The stand-out theme from this year's edition is just how cheap Japan is. For example, a meal for two in Tokyo is a third of a cost of that in Zurich or New York. When we started the document in 2012 the US was very cheap and now its very expensive. Unless a country is in terminal difficulty, relative prices are a good future mean reversion indicator. For Japan we will likely look back on these relative prices as an indicator of how cheap it is. If nothing else it’s a very cheap destination for next year's holidays. There's plenty of other info on 69 globally important cities. See the report here at the Deutsche Bank Research Institute.  I wonder how cheap or expensive England 2026 World Cup Winning T-shirts will be in London tomorrow!   As we await the second semi-final, it’s been another eventful 24 hours for markets, with investors taking heart from a huge downside surprise in the US CPI print, even as oil prices kept ratcheting higher. So markets rapidly priced out the chance of a Fed rate hike in a couple of weeks’ time, with US Treasuries posting strong gains as a result. Indeed, the 2yr yield (-9.0bps) was down to 4.19%, its biggest decline since May, whilst the S&P 500 (+0.38%) moved back within 1% of its record high from last month. In Asia US futures continue to rise and the KOSPI is back with a 7% plus day. More on that later but first the US inflation data.   That CPI print was the main catalyst for the cross market rally, after consumer prices fell by -0.4% in June (vs. -0.1% expected). In fact, it was the biggest monthly price drop since the pandemic lockdowns of April 2020, and it pushed the year-on-year reading all the way down to +3.5%, having been at +4.2% in May. Admittedly, that was driven by a big slump in gasoline prices, which plummeted by -9.7% on the month. But even core CPI was surprising on the downside too, with a -0.02% monthly price drop (vs. +0.2% expected) amid a decline in core goods prices and subdued rent inflation. So that marked the first decline for core CPI since May 2020, and it pushed the year-on-year reading for core CPI down to +2.6%. For markets, the main consequence was that the chance of a July rate hike was immediately priced out, with the probability down from 43% on Monday to just 17% by last night’s close. And that effect was clear further out the curve, as the chance of a hike by September also fell back to 66%, signaling a growing chance that the Fed might remain on hold for some months to come. Moreover, that led to a big decline for Treasury yields too, with the 10yr yield (-3.4bps) down to 4.59% by the close. The 10yr Treasury yield traded low as 4.521% post-CPI but it then recovered somewhat, in part as Fed Chair Kevin Warsh continued to strike a tough note on inflation as he delivered his first testimony as Chair before the House Financial Services Committee. Warsh refrained from any direct policy guidance, while noting that yesterday’s softer CPI print did not mean “mission accomplished”. He also said that “members of our Committee have no tolerance for persistently elevated inflation” and argued that if the Fed “get policy right—and we will—the inflation surge of the last five years will be a thing of the past.” In all, the new Chair looked to cement inflation-fighting credibility. But he was fortunate to be making these tough remarks in a day of soft CPI, with the inflation data easing the pressure for any immediate policy tightening.    Yet even as CPI surprised on the downside, oil prices continued to move higher, with Brent crude up another +1.72% yesterday to $84.73/bbl, taking its 2-day gain since the weekend to +11.47%. Nevertheless, that was actually well beneath the intraday peak above $87/bbl, with a big pullback after President Trump said that the proposal for a 20% fee in the Strait of Hormuz would be replaced by “Trade and Investment Deals that the various Gulf States will be making into the United States.” Meanwhile, the US military announced that it had resumed its naval blockade of Iran overnight, with Iranian media reporting an exchange of fire in the Strait of Hormuz. Overnight, Brent is +1.19% higher, trading at 85.74/bbl as we go to print.   But for the most part, there were signs that investors were still looking through the latest oil price spike. Brent is well below its peak from earlier in the year, having spent around two months above $100/bbl. And as Henry pointed out yesterday (link here), earlier in the year it took Brent at $110/bbl before we saw meaningful vulnerabilities for equities and credit. And if we look back at the 2022 shock as well, it was a similar real-terms threshold for Brent (above $110/bbl in today’s prices) that started to cause meaningful stress, which we’re still some way from right now. For equities, yesterday was another eventful session as earnings season started to get going. At the headline level, the S&P 500 (+0.38%) did well thanks to the downside CPI print and the dovish rates repricing. But this included some big moves under the surface, with IBM (-25.21%) posting its biggest daily decline in available Bloomberg data back to 1968, after they missed analyst estimates. It's another example of the huge ongoing tech disruption. Other software stocks also underperformed, including ServiceNow (-5.76%) and Adobe (-4.30%). Despite this, the information technology sector (+1.25%) was the best performer in the S&P 500 and the NASDAQ was up +0.90% amid gains for chipmakers that pushed the Philly semiconductor index +2.54% higher. So differentiation within the tech sector continues to be an ongoing theme, and one that supported the headline indices yesterday even as the equal-weighted S&P 500 slipped (-0.38%). There were also some big earnings advances as well, with Goldman Sachs (+9.00%) posting its best day since Trump announced the 90-day tariff extension last year, which came after their own earnings beat expectations. There were also sizeable gains for JPMorgan (+2.50%) and Bank of America (+1.88%) after their results, which helped the KBW Bank index to a +1.05% gain. This morning S&P (+0.20%) and Nasdaq (+0.74%) futures continue to rally.   Asian equity markets are also higher with the KOSPI (+7.70%) back leading the gains. Elsewhere, the Nikkei (+1.14%) and the Hang Seng (+1.46%) are also posting solid advances, while mainland Chinese equities remain subdued, with the CSI 300 (+0.04%) and Shanghai Composite (-0.08%) after Q2 GDP "only" expanded by 4.3% year-on-year, falling short of 4.5% expectations and slowing notably from the previous quarter (5%). As a result, first-half growth came in at 4.7%. On a quarter-on-quarter basis, GDP rose 0.9%, marking the slowest pace of expansion in more than two years. Additional June data presented a mixed picture of momentum. Industrial production increased 5.3% year-on-year, surpassing expectations of 4.6% and accelerating from 4.5% in May, highlighting continued strength in the industrial sector. In contrast, fixed-asset investment fell -5.7% in the first half of the year from a year earlier, a steeper decline than expected and a deterioration from the -4.1% drop recorded over the January–May period. Retail sales rose 1.0% year-on-year in June, outperforming expectations for a slight contraction, although consumer spending remained relatively subdued. Meanwhile, China’s property market continued to weaken, with new home prices declining -0.15% month-on-month in June. While this represented a modest improvement from May’s -0.20% decline, persistent softness in housing demand across most regions continued to outweigh isolated signs of stabilization in major cities. Earlier in Europe, markets generally put in a decent performance yesterday, with the STOXX 600 (+0.17%) reaching a one-week high, alongside modest gains for the FTSE 100 (+0.30%), the DAX (+0.13%) and the CAC 40 (+0.03%). For sovereign bonds there was a weaker performance however, with yields on 10yr bunds (+0.6bps), OATs (+0.8bps) and BTPs (+1.1bps) all moving higher. But as with the oil price, that was actually a decent pullback from earlier in the session, when the 10yr bund yield had been up over +3bps on the day.   Looking at the day ahead, we’ll hear from Fed Chair Warsh again, who’s appearing before the Senate Banking Committee. Otherwise, central bank speakers include the Fed’s Williams, Cook and Musalem, the ECB’s Panetta and Nagel, and the BoE’s Pill. Meanwhile, the Bank of Canada will announce their latest policy decision, and the Fed will release their Beige Book. Data releases include US PPI inflation for June, and the Empire State manufacturing survey for July. Finally, today’s earnings releases include Morgan Stanley, BlackRock, United Airlines, and Johnson & Johnson. Tyler Durden Wed, 07/15/2026 - 08:28

Actors involved

USIsraelIranEUChina

Sources

  • Tyler DurdenBy Tyler Durden

    Futures Rise After Blowout ASML Earnings Boost Tech Sentiment Futures are higher led by technology stocks, after solid earnings from ASML offered fresh evidence of the relentless demand for chips enabling the global AI buildout and boosted sentiment across the AI Inf

See this event through different lenses

Compare how Western, Iranian, Israeli, Global South, and Pro-Peace perspectives frame this event.

Compare Perspectives

Community Notes

Community Notes

Loading notes...

Related events

strikeUnverifiedUSIsraelIranProxyRussiaChina
1 source

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?

strikeUnverifiedIran
1 source

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

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

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

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

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

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

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

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

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

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

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

strikeUnverifiedUSIsraelIranProxy
1 source

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

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

Location: Strait of Hormuz
strikeUnverifiedUSIsraelIran
1 source

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

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

Location: Dubai