2026伊朗-海湾危机追踪
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strikeApr 27, 2026

Futures Flat At All Time Highs Ahead Of Huge Week, Semis Set For 19th Day Of Gains

Summary

Futures Flat At All Time Highs Ahead Of Huge Week, Semis Set For 19th Day Of Gains Risk sentiment improved overnight on another Axios report that Iran has given the US a new proposal to reopen the Strait of Hormuz with more detailed nuclear talks expected later. Oil pares early gains, and US equity futures jumped although they have also pared gains since and are trading flat as traders await a huge week of earnings (44% of the S&P by mkt cap is set to report) and central bank decisions (Fed, BOJ, ECB, BOE and BOC all expected to keep rates on hold). As of 8:00am ET, S&P 500 futures are flat and Nasdaq 100 contracts gain 0.2% after Friday's records for both indexes even though leadership is narrow, and the S&P equal weight index closed negative on the week; premarket gains by chip stocks like Nvidia, Qualcomm, Intel and Micron suggest the semiconductor ETF (SOX) is set for a record 19th day of gains. Mag7s are mixed, semis are bid, discretionary outperforms staples, cyclicals over defensives, and AI theme is bid across multiple sectors. Looming Big Tech results (22% of S&P 500 market cap across just four companies reports after the close on Wednesday, when Alphabet, Microsoft, Amazon and Meta release their Q1 results with Apple following on Thursday) will test whether April’s rally is sustainable, with signs of caution under the surface of the gains.  Bond yields are +1-2bps as the yield curve steepens; DXY is lower. Commodities are bid led by the Energy complex, with most products up at least 2%. Brent crude rose 1.1% to about $106.50 a barrel after Trump canceled a trip by top envoys to mediators in Pakistan over the weekend. Base metals are leading Precious with Ags continuing its march higher. Today’s macro data calendar is light ahead of a heavy central bank schedule where major CBs are expected to hold ahead of the market pricing changes in June. Warsh is set to be confirmed without further delays while Powell’s status remains unclear.  In premarket trading, Mag 7 stocks are mixed (Nvidia +1.6%, Alphabet +0.4%, Amazon -0.1%, Meta +0.04%, Microsoft -0.4%, Tesla -0.4%, Apple -1.8%) Domino’s Pizza (DPZ) falls 3% after the company reported revenue for the first quarter that missed the average analyst estimate. GE Vernova (GEV) is down 1.6% after BNP Paribas downgraded the power equipment company to neutral, predicting it would find it harder to sustain growth momentum, given that 90% of gas turbine capacity is already contracted through 2030. Intellia Therapeutics (NTLA) rises 1.6% after saying its gene-editing treatment for a rare swelling disorder met its goal in a late-stage trial, paving the way for the potential first approval of a new way of modifying DNA. Organon & Co. (OGN) gains 16% as Sun Pharmaceutical Industries Ltd. has lined up a short-term loan to help finance its $12 billion acquisition of the New York-listed healthcare company, according to people familiar with the transaction. Oruka Therapeutics (ORKA) climbs 15% after announcing positive topline results from a Phase 3 clinical trial of lonvo-z in hereditary angioedema. Qualcomm (QCOM) jumps 13% after TF International Securities analyst Ming-Chi Kuo said industry checks suggest OpenAI is working with the chipmaker and Taiwan’s MediaTek to develop smartphone processors. VeraDermics (MANE) climbs 15% after saying its oral extended-release minoxidil formulation VDPHL01 met all primary and key secondary endpoints with high statistical significance in a Phase 2/3 clinical trial for male pattern hair loss. Verizon (VZ) gains 3% after the company boosted its adjusted earnings per share guidance for the full year. XOMA Royalty Corp. (XOMA) shares are halted after Ligand Pharmaceuticals agreed to buy the company for $39 per share of common stock in cash In other corporate news, Musk says he’s nearing his goal of turning X into an “everything app” with a new financial services tool called X Money, which is expected to launch for the public this month. China has decided to block Meta’s $2 billion acquisition of agentic AI startup Manus, making a surprise move to unwind a controversial deal. The S&P 500 is up nearly 10% this month following an unprecedented but increasingly narrow rally thanks to chipmakers and robust earnings, helping the benchmark recoup all losses after the war in the Middle East upended energy flows. Chip stocks are set for further gains on Monday, with names such as Qualcomm Inc., Intel Corp. and Micron Technology Inc. rising in premarket trading. Nasdaq 100 futures climbed 0.2%. While Friday witnessed new records for the S&P 500 and Nasdaq 100, hegde funds are selling tech stocks, leadership is extremely narrow, and the S&P equal weight index closed negative on the week Systematic strategies have bought stocks aggressively, but some investors have less conviction. Hedge funds are using the US equity rally to reduce risks, according to traders on Goldman's prime brokerage desk, who point out significant degrossing and selling to tech stocks. Some Wall Street strategists say it may be a good time to buy insurance via options, such as pure stock hedges or broader protection against higher interest rates. Morgan Stanley strategist Michael Wilson, meanwhile, expects any potential pullbacks to be shallow given passive investors are still under-risked. The signs of caution come as traffic through the Strait of Hormuz remains at a near-complete halt, pushing WTI back above $96. Goldman Sachs analysts lifted their oil-price forecasts again, saying that an estimated 14.5 million barrels a day of Persian Gulf crude production losses are driving global oil inventories to draw at a record pace.  “Even if we do get a deal, oil is not going back to pre-war levels,” wrote Mohit Kumar, chief economist and strategist for Europe at Jefferies. “We need to factor in some degree of stagflationary impact. The US should be the least impacted, South Asia the most impacted, while Europe should be somewhere in between.” Yet markets remain largely unfazed by continued oil price increases; for them the AI narrative takes precedence. Traders continue to chase the theme through the semiconductor complex, pushing the SOX Index to its most overbought level in 15 years. The SOX has also completely dislocated from the ISM Manufacturing reading. That gap historically tends to close one way or another. It's an extremely busy weeks for earnings with over 42% of the S&P set to report Q1 results.  Earnings from Alphabet, Microsoft, Amazon.com, Meta and Apple make this a make-or-break week for the rally. The companies are worth nearly $16 trillion combined, representing a quarter of the S&P 500’s market capitalization. Expanding profits have helped keep a lid on valuations, with the Mag-7 ex-Tesla trading at a P/E of 25x, down from 29x in October. 22% of S&P 500 market capitalisation, across just four companies, reports after the close on Wednesday, when Alphabet, Microsoft, Amazon and Meta release their Q1 results. Apple follows on Thursday. Of the 139 S&P 500 companies to have reported so far this earnings season, 80% have beaten analysts’ forecasts, while 14% have missed.  We also get a bonanza of central bank announcements (Fed, BOJ, ECB, BOE, BOC) this week. Policymakers in the US and across the G7 will probably keep rates steady this week while watching the impact of higher energy costs. Wednesday will see the Federal Reserve deliver its latest interest-rate decision, with central bank officials across the Group of Seven also meeting during the week as investors eye how policymakers confront the risk of a war-driven inflation shock. As for Wednesday’s Fed policy meeting, any meaningful change in guidance will likely be deferred until June, wrote Jim Reid, head of macro research and thematic strategy at Deutsche Bank AG.  “That said, there is a tangible risk that communication skews modestly hawkish,” Reid said. “An explicit acknowledgment that risks to price stability and employment are now more evenly balanced would likely be interpreted as a marginally less accommodative stance.” In another keenly anticipated event this week, a Senate Banking Committee vote on Kevin Warsh’s nomination as chair of the Federal Reserve is scheduled for Wednesday. Warsh is expected to be swiftly confirmed as Jerome Powell’s successor, whose term ends on May 15, after Republican Senator Thom Tillis said he’s dropping his blockade of the nomination he said in an NBC interview. The DOJ’s decision to drop a criminal probe into the Fed may clear a path for Trump’s nominee to take over, but it won’t secure the current Fed chair’s departure. At his confirmation hearing last week, Warsh called for a “regime change” in the way the Fed conducts policy. Money markets are currently leaning against any Fed rate cut in 2026. “Markets are looking for a new narrative and are jumping back to the AI boom for now,” said Joachim Klement, head of strategy at Panmure Liberum. “However, most investors seem to be guided by uncertainty and are still assessing the fallout from the Iran war. This could mean that a new macro story will emerge soon.” In politics, Trump is using the Saturday night shooting at the White House Correspondents’ Dinner to add a security rationale to his case for building a massive White House ballroom. Budget airlines are asking the White House for a relief plan worth $2.5 billion in exchange for convertible equity stakes in the carriers. European stocks rise, with the Stoxx 600 up 0.3% after erasing an earlier fall. Energy, industrial and bank names are leading gains.Energy and retail sectors outperform. Sainsbury falls after a double-downgrade from Goldman. Here are some of the biggest movers on Monday: Nordex surges as much as 15% after the renewable-energy equipment firm beat expectations in the first quarter of the year. Commerzbank rises as much as 2.2% as Bank of America upgrades its shares to buy, saying they look attractive whether the bank is bought by Unicredit or not. Whitbread shares gain as much as 3.6% after a report from the Times over the weekend said the company plans sell a swathe of Premier Inn hotels to unlock £1.5 billion. Kingfisher shares rise as much as 1.1% after the DIY retailer was upgraded at Barclays following its recent underperformance against European peers. Orsted shares rise as much as 3.9% as Goldman Sachs upgrades its rating on the offshore energy company to buy from neutral. Entain shares fall as much as 7.1% in heavy trading volume after news that one of the gaming company’s major shareholders, Eminence Capital, is being shuttered. Sainsbury drops as much as 4.8% as Goldman double-downgrades to sell on macro headwinds, and Citi lowers its rating on the UK supermarket chain to neutral on weaker than expected Ebit guidance for 2027. Nexi shares fall as much as 3% after Bank of America downgrades the Italian payments processor to underperform from neutral, citing unjustified recent outperformance amid ongoing growth headwinds from bank contract losses and risks to 2028 targets. Intertek shares drop as much as 3.9% after the testing and certification firm said after markets closed on Friday that it rejected the 5,400 pence per share bid from EQT, stating it “fundamentally undervalues” the company and its prospects. Seraphim Space Investment Trust shares fall as much as 16% in London trading after it announced plans to raise funds by issuing shares. Asian equities also push higher, with Taiex and Kospi leading winners as chipmakers rally. Hong Kong and mainland China indexes are regional laggards. The MSCI Asia Pacific Index gained as much as 1.7%, the most since April 14. Taiwan’s Taiex index was among best performers in the region, led by a surge in TSMC to a record. Markets in Vietnam and New Zealand were closed for holidays. Asian companies are also heading into the busiest week of the earnings season, offering investors a glimpse of how the Iran war has impacted business. In Japan, investors are keeping an eye on the Bank of Japan’s interest rate decision on Tuesday. The BOJ is widely expected to keep rates unchanged. “Investors are paying attention to the Asia tech sector, especially with a large amount of suppliers here,” Jasmine Duan, Asia senior investment strategist at RBC Wealth Management, said in a Bloomberg TV interview. Despite risks of overbuying in big tech names such as TSMC, “the earnings growth will digest the concern on this overcrowded trade.” In FX, the Bloomberg Dollar Spot Index falls 0.2%. The Norwegian krone is leading gains against the greenback, rising 0.6%. The Aussie and kiwi dollars also outperform.  The yen hovers around 159.20/USD and euro holds near 1.1730. Offshore yuan gets a boost from solid PBOC fixing. In rates, treasuries trade slightly cheaper in early US trading, off session lows reached following slight gap lower at start of Asia session.  Treasury yields cheaper by as much as 1.5bp at long end with curve slightly steeper on the day, keeping spreads within 1bp of Friday’s closing levels. 10-year near 4.31% is ~1bp cheaper on the day, roughly in line with European counterparts. European government bonds also decline. Treasury auction cycle begins with $69 billion 2-year note at 11:30am New York time and $70 billion 5-year at 1pm. WI 2-year yield near 3.79% is ~15bp richer than last month’s, which tailed by 1.8bp In commodities, oil is higher with the Strait of Hormuz almost impassable after efforts to resume talks to end the Iran war stalled. Brent crude futures rise over 2% and briefly topped $108 a barrel after efforts to resume US-Iran talks faltered over the weekend. Precious metals are little changed while Bitcoin falls 0.5%. Today's US economic data calendar slate is light - we only get the April Dallas Fed manufacturing activity at 10:30am - ahead of a heavy central bank schedule where major CBs are expected to hold ahead of the market pricing changes in June Market Snapshot S&P 500 mini little changed Nasdaq 100 mini little changed Russell 2000 mini little changed Stoxx Europe 600 little changed DAX +0.4% CAC 40 +0.2% 10-year Treasury yield +1 basis point at 4.31% VIX +0.4 points at 19.07 Bloomberg Dollar Index -0.2% at 1193.96 euro +0.2% at $1.1746 WTI crude +2.2% at $96.51/barrel Top Overnight News Iran has offered to end its chokehold on the Strait of Hormuz in exchange for the U.S. lifting its blockade on the country and an end to the war, while proposing that discussions on the larger question of its nuclear program would come in a later phase. Trump is unlikely to accept the offer. AP Oil rose as Iran’s foreign minister Abbas Araghchi arrived in Russia for talks with Vladimir Putin, while traders shrugged off an Axios report of a potential interim Hormuz deal. BBG The US Secret Service is at risk of not being not being able to pay its employees by the end of the week, suggesting that a shutdown nears its breaking point: Semafor Kevin Warsh’s path to Fed chair cleared after GOP holdout Thom Tillis dropped his resistance, following the DOJ’s decision to end a criminal probe into Jerome Powell. A vote is set for Wednesday. BBG US drivers have started cutting back their spending at the pump in an attempt to blunt the impact of spiraling petrol prices triggered by the Iran war. Between February and March average petrol sales per station in the northeastern US fell 4.3 per cent in March, compared with 0.6 per cent growth in the same period last year, according to data from Upside, which tracks consumer spending at more than 23,000 petrol stations across the nation. FT With just over one-fourth of S&P 500 companies reporting results for the first quarter, Wall Street’s expectations for earnings suggest big U.S. companies are far healthier than wider economic concerns might indicate. WSJ DeepSeek is aggressively pitching low-priced-plans for its just-released flagship model, intensifying competition across a Chinese artificial intelligence industry trying to take on Silicon Valley’s best. BBG US State Department has reportedly ordered a global warning over alleged AI IP theft involving DeepSeek and other Chinese firms: Reuters Meta’s $2 billion acquisition of AI startup Manus was blocked by China, a surprise move to unwind a deal that’s drawn fire for the leakage of technology to the US. BBG Profits at China's industrial firms grew at their quickest pace in half a year last month, adding to broader signs of ‌an uneven economic recovery in the first quarter as policymakers brace for the impact of the Middle East war. RTRS Japan is moving to tighten the criteria for submitting shareholder proposals, signalling a growing backlash from companies frustrated by intensifying pressure from activist investors calling ‌for change. RTRS The US and Japan plan a dual-use partnership to counter China in the drone market: Kyodo  Middle East News Iran has communicated a three-stage negotiation process to the US through intermediaries, according to Al Mayadeen citing Iranian reports. The first stage would focus on ending the war and receiving guarantees to prevent recurrence. Second stage is to be focused on the Strait of Hormuz while the third stage would lead to the nuclear issues. Axios later announced a similar report, adding that US President Trump is to hold a situation room meeting on Iran on Monday. US President Trump cancelled sending Steve Witkoff and Jared Kushner to Pakistan for talks with Iran, saying there would be “too much time wasted on travelling”. Trump said the US “has all the cards” and Iran “has none”, adding that “if they want to talk, all they have to do is call”. Trump later said the US would not travel “15, 16 hours” to meet “people nobody’s ever heard of”, adding that US envoys were not meeting Iran’s actual leader. Trump claimed Iran sent a “much better” offer within 10 minutes of him cancelling the envoys’ trip, but said Iran had offered “a lot but not enough”. US President Trump said Iran wants to talk and see if they can make a deal, US officials negotiating with Iran are dealing with the people who are in charge now. He also stated that Iran plans to make an offer aimed at resolving US demands, according to Reuters. Iran's Foreign Minister Araghchi posted on X that discussions in Oman included focusing on ways to ensure the safe transit through Hormuz and that neighbours are the priority. He later stated in Russia, ahead of his meeting with Russian President Putin, that the visit to Islamabad was very good, in which conditions were reviewed for US-Iran talks to continue. Iranian Foreign Minister Araghchi described his Pakistan visit as “very fruitful” and said Iran had shared a “workable framework to permanently end the war.” According to reports citing Pakistani officials, Araghchi laid out Tehran's negotiating demands as well as its reservations about US demands. In other talks, IRNA reported that the FM will travel to Muscat and Moscow to hold bilateral conversations, discuss current developments in the region, and the latest situation regarding the war. A trilateral meeting with the US, Iran and Pakistan will be considered only after Pakistan meet with Araghchi, a meeting between the US and Iran may not take place until Monday, Axios reported. US Special Envoy Witkoff and Kushner is to hold separate talks with Pakistan on Sunday. Axios reported that a US official and a source said Ghalibaf grew frustrated with the infighting in the Iranian leadership after the previous round of talks, and even threatened to step aside. It still remains unclear if he is the lead Iranian negotiator. Iran is reportedly "discussing the uranium and nuclear issue with friends and allies and is open for discussion at the negotiating table.", Journalist Mallick reported. Full post:"To my understanding, While Iran has proposed a structured operational mechanism for Strait of Hormuz which would lead to cessation of hostilities, at the same time, contrary to reported, Iran is discussing the uranium and nuclear issue with friends and allies and is open for discussion at the negotiating table.". Hezbollah outlines that they will be keeping their weapons, and dismisses the prospect of direct talks with Israel regarding Lebanon. Iran's proposal regarding Hormuz may be rejected by Washington because it excludes nuclear discussions, Al Hadath reported citing regional officials. Senior Israeli officials have told their American counterparts that if Hezbollah continues its attacks against IDF soldiers, Israel will not be able to respond in a measured manner, Journalist Stein reported citing sources. Israeli military reported hostile aircraft infiltration sirens sounded in northern Israel communities. Iranian Foreign Minister Araghchi said the visit to Islamabad was very good, in which conditions were reviewed for US-Iran talks to continue. Agreement has been made between Iran and Oman to continue consultations at an expert level. Israeli occupation forces are shelling Gaza beaches from the sea, according to Al Jazeer sources. Iran gave the US a new proposal through Pakistani mediators for reaching a deal on reopening the Strait of Hormuz and ending the war however postponing nuclear talks, Axios reported citing sources. US President Trump to hold a situation room meeting on Iran on Monday. Israeli artillery shelling targets eastern Gaza City, Al Mayadeen reported. Iran's Foreign Minister Araghchi posted on X that discussions in Oman included focusing on ways to ensure the safe transit through Hormuz and that neighbours are the priority. Lack of trust between Washington and Tehran hinders resumption of negotiations, Pakistani source tells Asharq. Iranian F-5 fighter jet reportedly breaches US air defences and hits a US military base in Kuwait, according to Press TV. US CENTCOM announces that the US has directed 38 ships to turn around or return to post since the start of the blockade. UKMTO reported of an incident occurring 6NM northeast of Somalia, where unknown persons seized the cargo ship and diverted it into territorial waters. A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks pointed to a broadly positive start of the week, mainly spurred by an Axios report detailing that Iran gave the US a new proposal, through Pakistani mediators, for reaching a deal on reopening the Strait of Hormuz and ending the war. It is a three-stage proposal, with the halting of the war and focus on the Strait of Hormuz highlighted as the key points before the third stage of nuclear issues. ASX 200 was the underperformer, being weighed on by losses in Energy and Utilities following Friday’s risk-on sentiment hitting energy prices. Among the weakness, Atlas Arteria outperformed after IFM investors offers to buy the Co. for AUD 4.75/security. Nikkei 225 initially traded with a lack of direction before being boosted following the Axios report. The index has regained the 60,000 handle and continued to gain towards 61,000. KOSPI was the clear outperformer as it tracks its peers’ stateside. This was spearheaded by Intel (INTC) after the Co. reported positive Q1 earnings and beat forecasts. Hang Seng and Shanghai Comp. traded with mild gains. Chips across Asia are performing well, with China’s SMIC also benefiting from the announcement that DeepSeek’s V4 is adapted to run on Huawei chips. Top Asian News Japanese Coincident Index Final (Feb) 116.3 (Prev. 117.9). Japanese Leading Economic Index Final (Feb) 113.3 vs. Exp. 112.4 (Prev. 112.1). Chinese Industrial Profits (YTD) YoY (Mar) Y/Y 15.5% (Prev. 15.2%). European bourses are mostly firmer this morning, albeit modestly so. The DAX 40 (+0.4%) leads vs peers, whilst the AEX (-0.3%) lags a touch. European sectors opened with a positive bias, but the leaderboard now looks mixed. Topping the pile is Retail, led by Adidas, +1.6%, where two runners wore its new ultra-light racing shoe to break the two-hour barrier at the 2026 London Marathon. Also performing well is the Energy sector, with oil benchmarks firmer on the day. At the bottom of the pile are the consumer-sensitive Optimised Personal Care and Food Beverage & Tobacco Top European News ECB SAFE Survey: Firms reported further net tightening of bank loan interest rates and other loan conditions related to price and non-price factors. Firms reported further net tightening of bank loan interest rates and other loan conditions related to price and non-price factors. Financing needs remained stable, but availability of bank loans deteriorated marginally. Firms expected stronger increases in selling prices and non-labour input costs, whereas wage expectations moderated slightly. Short-term inflation expectations increased markedly, with medium-term inflation expectations remaining stable. UK Chancellor Reeves is to deliver speeches to set out a responsible plan to see households and businesses through the Iran war fallout, according to the FT citing sources; the Chancellor will also set out measures in June to boost growth. UK ministers have voiced concerns about the damage to the tech sector and its alliance with the US as the PM plans for closer relations with the EU, FT reported citing sources. Central Banks BoJ Deputy Governor Uchida to join policy meeting by phone due to health reasons. Swiss Sight Deposits (CHF) (w/e Apr 24th): total 455.91bln (prev. 453.55bln), of domestic banks 433.01bln (prev. 433.27bln). Trade/Tariffs India and New Zealand have signed a FTA, lowering and eliminating tariffs across a range of goods, and granting 100% duty-free access for Indian exporters. China's Commerce Ministry is to hold a press conference on Thursday 30th at 08:00BST/03:00EDT to brief on recent key trade and commerce developments. China's MOFCOM issues a statement on the EU Industrial Accelerator Act, calling it discriminative for trade; will closely monitor and engage in dialogue with the EU but threatens countermeasures if the EU presses ahead. Geopolitics A drone has hit the transportation department of Ukraine's Zaporizhzhia plant, according to reported. Iranian FM Araghchi has arrived in Russia ahead of his meeting with Russian President Putin, Tasnim reported. North Korea's Supreme Leader Kim Jong-un said that North Korea will continue to support Russia, KCNA reported. Russia's Foreign Minister reportedly said Russia is willing to hold talks with the US on a Ukraine settlement. FX FX shows a risk-on picture not seen across other asset classes, in a move seemingly driven by a weaker greenback, with antipodeans and generally high-beta FX outperforming. DXY is lower by 0.2%, well off highs of 99.34 made at the Asia re-open and below both 100 and 200 DMAs, which offered support last week. This comes as Axios reported that Iran gave the US a new proposal for reaching a deal on reopening the Strait of Hormuz, news which has helped the risk complex. The plan calls for an extension of the ceasefire so parties can work on a three-stage plan, with nuclear negotiations the final stage. The report noted that Pakistani mediators had given the proposal to the US, though it was unclear if the US would cooperate. The US-specific docket is light ahead of this week's FOMC meeting, with just 2 and 5yr supply, and Dallas Fed Manufacturing scheduled. Away from geopolitics, and perhaps another story which has offered the USD: Senator Tillis said he was dropping his decision to block the nomination of Kevin Warsh as Fed Chair following the DoJ's decision to drop the criminal case against Fed Chair Powell. The vote on Warsh's confirmation is scheduled for 29th April. Antipodeans outperform, the cross is choppy and around the unchanged mark as both currencies benefit against the weaker Buck following that Axios report. NZD/USD, AUD/USD +0.6%/+0.5%. CAD also does well, helped by the risk environment alongside Crude benchmarks, which are firmer on the session. EUR/GBP is a touch firmer after it bounced off a 0.8654 low to try to recoup last week's modest losses following strong UK data. Both currencies look to expected holds from the ECB and BoE. In the UK, political angst persists, with the Daily Mail reporting that former Deputy PM Rayner told Labour MPs the time to oust the PM was “now or never”. Fixed Income A softer start to the week, as energy upside lifts yields and weighs on fixed benchmarks. However, the magnitude of fixed action is relatively limited amid mixed geopolitical reporting, awaiting supply and the week's packed central bank agenda, which includes the BoE, ECB & Fed. USTs as low as 111-01, with downside of 5+ ticks at most. If the move extends, we look to 110-27+ and 110-26+ from Friday and Thursday, before attention then turns to 110-22+, 110-17+ and the 110-16 MTD low from earlier in April. The US agenda is, aside from geopolitical updates, headlined by 2yr & 5yr note supply ahead of Wednesday's Fed. Gilts gapped lower by 23 ticks and then slipped another 12 to an 87.13 low. Modestly underperforming peers, given the above. Elsewhere for the UK, we count down to Thursday's BoE, a hold is expected and priced, with attention on any clues via the statement, forecasts, or individual Committee members' remarks as to when a move might occur. Currently, markets imply 25bps hikes in July (+30bps) and December (+54bps). Bunds in-fitting with the above. Somewhere between USTs and Gilts in magnitude. As low as 125.48, posting losses of 17 ticks at most. Driven by the above geopolitical developments. No move to a weak GfK survey for May, as consumer sentiment was hit again by the Middle East conflict, resulting in a sharp decrease in income expectations and the 12-month view moved to a level similar to April 2022, at the start of the Ukraine conflict. China delays foreign debt sales with USD 100bln of bonds due, Bloomberg reported. EU sells EUR 6bln vs exp. EUR 7bln 2.50% 2031, 3.25% 2036, and 4.00% 2044 Bonds. Commodities WTI and Brent are both firmer this morning by circa. 2.6%, as the complex digests several geopolitical updates, with the overarching theme overall a lack of progress between US-Iran. To recap, US President Trump cancelled his envoy’s trip to Pakistan, suggesting that it would be a waste of time. He claimed that Iran sent a “much better” offer within 10 minutes of him cancelling the trip, but it was “not enough”. Since, Axios reported that Iran had communicated a three-stage negotiation process to the US through intermediaries. A first stage would involve securing guarantees to prevent another war, with the next stage to focus on the Strait and then finally on nuclear issues. Given that this proposal pushes the nuclear issue to the back of the agenda, it is not likely that the US will accept the proposal. The focus ahead will be on Trump, who is reportedly to hold a situation room meeting on Iran. WTI and Brent climbed higher throughout the European morning; Brent Jun’26 sits at the upper end of a USD 106.19/bbl to USD 108.24/bbl range, with WTI Jun’26 also at highs within a USD 94.99/bbl to USD 96.87/bbl band. Both contracts jumped at the open as markets digested Trump’s cancellation of talks, but then slipped on the aforementioned Axios report. The proposal indicates some openness to negotiations, but given that the nuclear issue has been pushed to the back of the agenda, it is unlikely to be accepted by the US. A factor which likely explains the complete reversal of the initial downside following the report. Spot gold is essentially flat this morning and currently trades within a USD 4,672-4,729/oz range. It currently oscillates around its 21 DMA (4,718/oz), with the high of the day a touch short of its 100 DMA (4,746/oz). Elsewhere, base metals hold a slight negative bias, but with slight strength in Aluminium prices, given the elongated disruption of supplies from the Middle East region. As for 3M LME Copper, it is currently a little lower within a USD 13,259-13,376.03/t range. Iran suspends exports of steel slabs and sheets until 30th May, Iranian media reported. Citi raises its base case average Brent price forecasts to USD 110/bbl for Q2, USD 95/bbl for Q3, USD 80/bbl for Q4. Flows could easily remain disrupted through the end of June, which could see Brent reach USD 150/bbl. Goldman Sachs raises its Brent forecast to USD 100/bbl this quarter and USD 90/bbl in Q4, due to prolonged disruption in the Strait of Hormuz and extreme inventory draws. Japanese PM Takaichi said Japan has secured stable oil supply into next year, closely watching the Middle East impact on the economy. US Event Calendar 10:30 am: United States Apr Dallas Fed Manf. Activity, est. 0.8, prior -0.2 DB's Jim Reid concludes the overnight wrap Tomorrow marks exactly two months since the strikes on Iran began. While there is currently a rolling, open ended ceasefire that started on 8 April, the risk of it collapsing at any point remains real. Just as the weekend news looked like it was leaning negatively though, last night reports came through that Iran have offered the US a fresh proposal to reopen the strait and end the war. However as Axios and others reported, this proposal postpones talks on nuclear capabilities. So it’s unclear whether the US Administration would tolerate that but for now the market is trading better than it might have done to start the week. This fresh development follows President Trump cancelling a planned visit to Islamabad by envoys Kushner and Witkoff, saying that the Iranians had “offered a lot, but not enough.” Iranian President Pezeshkian, meanwhile, said Iran would not agree to “imposed negotiations under threats or blockade.” The coming week will no doubt bring further developments, though predicting them is close to impossible. When the conflict began more than eight weeks ago, I would have expected it to be comfortably over by now, with markets having followed the usual playbook and fully recovered. The market reaction has largely played out, but for the wrong reasons: the conflict is not over. That said, markets still appear to price in a meaningful chance that it will be resolved relatively soon. Polymarket, for example, suggests a 56% probability of traffic returning to normal by 30 June, although this briefly reached 91% ten days ago when it appeared that Iran was reopening the Strait. In other news, one notable development yesterday was Senator Thom Tillis’s decision to lift his block on Kevin Warsh’s nomination to chair the Fed. Tillis said he was satisfied with the Department of Justice’s decision late last week to drop its investigation into the Fed refurbishment. There had been some concern on Saturday that the DoJ had left the door open to reopening the probe at a later stage, which might not have been sufficient to clear the way. However, Tillis indicated that he had received assurances that gave him enough comfort to remove his block. In terms of overnight markets, Brent crude is up +1.22%, marking the sixth consecutive session of gains, trading at $106.61 per barrel, following the weekend news. However regional equities are strong with the KOSPI (+2.57%) now at +57.6% YTD. The Nikkei (+1.88%) is also strong. Other markets are a bit more subdued with the Hang Seng (+0.15%), the CSI (+0.21%), and the Shanghai Composite (+0.15%) slightly higher but with the S&P/ASX 200 (-0.14%) dipping. S&P 500 (+0.13%), NASDAQ 100 (+0.34%) and STOXX (+0.33%) futures are edging higher. both trading in positive territory. Meanwhile, 10-year USTs have risen by +1.9bps, to 4.32% as we go to print.   Looking ahead, with central bank meetings for every G7 country this week — alongside 44% of the S&P 500 reporting by market capitalisation, including five of the Mag 7 — it is shaping up to be a blockbuster week, even before factoring in ongoing Iranian war newsflow. The Bank of Japan meets tomorrow, followed by the Fed and the Bank of Canada on Wednesday. Thursday then brings decisions from the ECB and the Bank of England. All are expected to remain on hold, but the key question will be how each central bank’s reaction function is shaped by the conflict and the associated stagflation risks. Our new "Rate Check" podcast previews the week's meetings with various guests from our research department. Click here for more on how to find it  From an earnings perspective, 22% of S&P 500 market capitalisation — across just four companies — reports after the close on Wednesday, when Alphabet, Microsoft, Amazon and Meta release their Q1 results. Apple follows on Thursday. Turning to the Fed meeting mid week, our economists’ base case is that any meaningful change in guidance is deferred until June. That said, there is a tangible risk that communication skews modestly hawkish — either through subtle language tweaks around “additional policy adjustments” or via Chair Powell signalling a more symmetrical assessment of risks to the dual mandate. An explicit acknowledgement that risks to price stability and employment are now more evenly balanced would likely be interpreted as a marginally less accommodative stance. Geopolitics will loom large in Powell’s press conference, given developments in the Middle East. With uncertainty still elevated, Powell is likely to emphasise that policymakers cannot yet assess the precise implications for growth or inflation. However, he may also note that persistently high oil prices raise the risk of inflation becoming more entrenched over time. Overall, the tone should be consistent with a Fed prepared to remain on the sidelines for a while longer. Alongside the meeting, Thursday’s personal income and spending report — and particularly core PCE — will be equally important. Income is expected to rebound by 0.6% after a 0.1% decline, while consumption is forecast to rise 0.5%. DB expects the core PCE deflator to increase by 0.25% month on month, lifting the year on year rate to around 3.13%. If realised, Q1 core PCE inflation will average just above 3.0%, marking five years since the Fed’s preferred underlying inflation gauge last ran at or below its 2% target. Our latest projections see core CPI and core PCE at 2.7% and 2.9% respectively by Q4 2026, highlighting how recent energy related shocks continue to complicate the path back to target. Other data ahead of the meeting are unlikely to materially alter the Fed’s decision. Consumer confidence tomorrow is expected to fall to 88.8 from 91.9, reflecting heightened geopolitical concerns. More important than the headline will be the “jobs plentiful” and “jobs hard to get” components, which historically track movements in the unemployment rate and offer insight into perceived labour market momentum. Wednesday brings a cluster of releases that will refine expectations for Thursday’s advance Q1 GDP estimate. Housing starts are forecast to rise to 1.425 million from 1.35 million, with permits edging up to 1.390 million. Durable goods orders are expected to fall 0.4% for the headline, but ex transportation and core orders are projected to rise 0.5%, pointing to continued strength in capital investment. Together with the advance goods trade balance, these data frame our economists’ 2.8% annualised forecast for Q1 real GDP — a sharp rebound from 0.5% in Q4. Thursday’s data batch is the most consequential of the week, even beyond core PCE. While DB still expects 2.8% inflation adjusted growth for Q1 GDP, the composition has shifted meaningfully. Consumer spending is forecast to contribute 1.2pp, down from 1.9pp in Q4, while non residential fixed investment accelerates sharply to 7.5%. Final sales to private domestic purchasers — our preferred measure of underlying demand — are projected to edge up to 2.0%. Risks to the headline GDP number appear broadly balanced, particularly given volatility in trade flows. Elsewhere on Thursday we see the employment cost index and the Chicago PMI. Friday kicks off May with the ISM manufacturing index and vehicle sales. While business surveys may not yet fully reflect recent war developments, they should provide early signals on whether firms share markets’ confidence that the conflict will have limited and temporary economic effects. Last week’s flash PMI suggested US businesses remain far more confident on this front than their European counterparts. In Europe, attention turns to preliminary April CPI prints, with Germany and Spain reporting first on Wednesday and the broader euro area numbers on Thursday, alongside advance Q1 GDP. Ahead of that, Tuesday brings the ECB’s consumer expectations and bank lending surveys. In Japan, key releases include April Tokyo CPI on Friday and March activity data on Thursday, while China sees its official April PMIs on Thursday, following industrial profits for March earlier in the week. As usual, the full day by day calendar appears at the end. Recapping last week now and markets lost their momentum as concern rose about an extended closure of the Strait of Hormuz. However, there was more of a risk-on move into the weekend, driven by the news that Iran’s foreign minister was heading to Islamabad, and then that Steve Witkoff and Jared Kushner were going from the US side. So that raised hopes that some kind of de-escalation pathway might still be open. Ultimately that proved premature as we found out over the weekend. The positive mood at the very end of the week was cemented after it was announced that the US Department of Justice were dropping the criminal investigation into Fed Chair Powell, which raised expectations that Kevin Warsh would be confirmed on time as the new Fed Chair.   Yet despite that more optimistic tone into the weekend, Brent crude oil still rose +16.54% last week (+0.25% Friday) to $105.33/bbl. That came as the Strait of Hormuz remained closed, adding to fears about longer-term supply disruption. And it was clear that investors were pricing in a prolonged period of higher oil prices, as the 6-month Brent future also moved up +8.88% last week (-0.32% Friday) to $86.46/bbl. For markets, those oil moves led to growing expectations of an extended stagflationary shock. Indeed, that was clear from inflation expectations, which moved up again in response. For instance, the US 1yr inflation swap rose +29bps last week to 3.378%, and the Eurozone inflation swap was up +47bps to 3.44%. And in turn, that led investors to price in a more hawkish response from central banks. For instance, for the ECB the probability of a hike by the June meeting rose from 62% to 82%. Meanwhile, the probability of a Fed cut by the December meeting had fallen from 61% to just 23% by Thursday, before rising back up to 46% on Friday on news of the DoJ probe into Powell being dropped, which raised expectations that a Warsh-led Fed could still deliver easing this year. With markets pricing in a bigger stagflationary shock and a more hawkish response across most of the week, it was a tough backdrop for bonds. So the 10yr bund yield rose +3.4bps last week (-1.5bps Friday) to 2.99%, and the 10yr Treasury yield was up +5.2bps last week (-2.4bps Friday) to 4.30%. In Japan, the moves were relatively smaller, but even there the 10yr yield was up +1.5bps last week (+1.0bps Friday) to 2.44%.   For equities, there was a more divergent performance by region. In the US, the S&P 500 posted a 4th consecutive weekly gain to hit a new record, rising +0.55% last week (+0.80% Friday). Indeed, the last time the S&P posted four consecutive weekly gains was back in October 2024. Meanwhile, the Philadelphia Semiconductor Index continued its relentless rally, posting a record 18th consecutive daily gain on Friday, with a rise of +10.02% last week, including +4.32% on Friday after strong results from Intel. Japan’s Nikkei also advanced +2.12% (+0.97% Friday). But in Europe, the STOXX 600 fell -2.54% last week (-0.58% Friday), reflecting the region’s greater exposure to an energy shock that was also visible in the weak April flash PMIs. Finally in credit, there was a mixed performance last week amidst the various headlines. In the US, IG spreads were flat, but HY spreads widened +6bps. Conversely in Europe, IG spreads widened +2bps, but HY spreads tightened -10bps. Tyler Durden Mon, 04/27/2026 - 08:34

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    Futures Flat At All Time Highs Ahead Of Huge Week, Semis Set For 19th Day Of Gains Risk sentiment improved overnight on another Axios report that Iran has given the US a new proposal to reopen the Strait of Hormuz with more detailed nuclear talks expected later. Oil

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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?

strikeUnverifiedUSIranProxyRussia
1 source

According to Kpler data, four commodity vessels crossed the Strait of Hormuz on Monday—two exiting (one carrying petrochemicals and one empty) and two entering (a bitumen tanker and an oil tanker)—down from seven the prior day, with no very large crude carriers or liquefied natural gas tankers observed.

Yemen's Houthis stated they were imposing a naval blockade on Saudi Arabia. The UK Maritime Trade Operations agency reported receiving multiple accounts of a tanker struck by an unknown projectile in the strait, while Greek shipping company Dynacom Tankers stated that two of its vessels were hit by projectiles off Oman and a third by a drone at Russia's Novorossiysk terminal.

Location: Strait of Hormuz
strikeUnverifiedUSIsraelIranProxy
1 source

U.S. and Iranian forces have conducted daily strikes in the Strait of Hormuz region following the collapse of an interim ceasefire, according to reports. The Trump administration has stated openness to diplomacy while announcing further retaliation for attacks on U.

S. personnel, and gasoline prices have risen amid the renewed exchanges. An analyst at the Center for Strategic and International Studies described the escalations as reflecting possible miscalculations by both sides, without confirmed evidence of their long-term effects.

Location: Strait of Hormuz
strikeUnverifiedUSIsraelIran
1 source

According to reports citing unnamed sources, mediators including Qatar, Egypt, and Pakistan presented a 10-day ceasefire proposal to the United States and Iran. The proposal reportedly calls for a halt to hostilities, resumption of shipping through the Strait of Hormuz, and efforts to preserve a memorandum of understanding signed by Washington and Tehran on June 18.

The US administration is reviewing the plan while preparing for possible failure, and Israel has been placed on high alert.

Location: Iran