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strikeJun 11, 2026

Futures Rise, Oil Drops As US Ends Iran Strikes

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Futures Rise, Oil Drops As US Ends Iran Strikes US equity futures are higher led by tech and small caps, with traders buying the dip in stocks as a swift conclusion to the latest round of US strikes against Iran raised expectations that talks over a peace deal and the reopening of the Strait of Hormuz will get back on track. As of 8:00am ET, S&P futures rise 0.7% to recover from a five-week low after Trump forewarned Iran would be hit “very hard,” followed by swift and superficial strikes; Nasdaq 100 contracts rise 1.1% with all Mag 7 stocks higher led by TSLA (+1.5%) and NVDA (+1.2%); ORCL is down 7% although that’s a better showing than in the postmarket after the company reported quarterly capital expenses that were higher than estimates. Bond yields are 1-3bp lower. Overall, we have seen an escalation in the US/Iran since Tuesday but the escalation is relatively limited given that the US Central Command have declared the operation complete. War jitters promptly faded after US Central Command called an end to “additional self-defense” strikes about four hours after launching attacks on multiple targets in Iran, with Brent reversing gains to trade 1% lower below $92 a barrel. Commodities are mixed: WTI crude fell $1.15 to $88.87; base metals are mostly lower, while previous metals are higher. In premarket trading, Mag 7 stocks are all higher (Tesla +1%, Nvidia +0.7%, Amazon +0.5%, Meta +0.2%, Alphabet +0.2%, Apple +0.4%, Microsoft unchanged.) Chipmakers and other AI-related firms rise after Oracle reported quarterly capital expenses that were higher than estimates, driven by increased data center spending. Rocket, satellite and space-linked companies gain, putting the sector on track to rebound after the recent slump. Eaton (ETN) gains 2% after agreeing to merge its mobility business with Dana Inc. in a deal valuing the combined company at roughly $10 billion including debt. Shares of Dana (DAN) are down 2%. Intel (INTC) rises 4% after BofA Global Research raised its recommendation to buy from underperform on expected growth from central processing unit sales. Navan (NAVN) gains 19% after the AI-powered travel and expenses platform boosted its total revenue outlook for the full year. Oracle (ORCL) falls 8% after the company reported quarterly capital expenses that were higher than estimates, raising investor concerns about the profitability of the AI infrastructure business. Stitch Fix (SFIX) rises 3% after the online personal styling platform raised its full-year forecast for net revenue from continuing operations. Voyager Technologies (VOYG) climbs 6% after BTIG started coverage on the space and defense company with a buy rating, citing growth potential. In other corporate news, activist investor Elliott hit back at Australia’s biggest gold stock Northern Star Resources by urging the beleaguered miner’s board to take urgent action and reconsider a sale as its valuation flounders. Co-founder of Ben & Jerry’s said the ice cream brand’s new owner Magnum is in the “process of destroying” the Cherry Garcia maker’s future.  Meta has completed an operational split from Manus and halted data sharing between the two companies, taking a pivotal step toward unwinding a $2 billion acquisition opposed by Beijing. Shares of Alibaba and JD.com fell after Chinese regulators scolded leading e-commerce players for what it called misleading promotions.  AI takes center stage again, with OpenAI considering drastic token price cuts, Goldman’s renewed estimate of explosive Hyperscaler capex growth, Oracle’s eye-watering spending forecasts and Citadel Securities’ “Tokenomics” report outlining how AI hype has been built on capabilities. The reckoning will focus on costs.  Citadel Securities strategist Frank Flight notes the recent decline in token prices may reflect a shift toward cheaper AI models, as even the most powerful technologies must pass through “the prosaic discipline” of cost curves, capacity constraints and marginal returns. OpenAI is said to be considering drastically lowering the prices it charges users for its tokens as it seeks to win customers from its arch-rival Anthropic, according to the WSJ.  Coming into Oracle’s results — the first for the new CFO, and with the stock up roughly 50% since April lows — the key question for investors was whether the company could balance growth and demand with capex and financing needs. In a microcosm of the AI bull and bear debate, Oracle delivered solid revenue growth of 20%, but forecast that its capex-to-sales ratio will accelerate to an eye-watering 100% next fiscal year. Equities linked to the artificial-intelligence trade have turned volatile in recent days after powering global stocks to all-time highs on the back of strong earnings, with traders questioning whether the rally has run too far. “Sentiment trends are shifting very quickly since Friday’s selloff and the market has become much more volatile and much more selective,” said Andrea Tueni, head of sales trading at Saxo Banque France. “Even if the trend remains upward, brace for some more erratic moves ahead.” Meanwhile, anticipation is building for the market debut of SpaceX, whose $75 billion first-time share sale is due to price later on Thursday. The offering has attracted demand for more than four times the available shares. The offerings from SpaceX, and potentially others such as OpenAI, are raising questions about whether investors will pull money from existing stocks to fund the deals, or whether they will fuel further enthusiasm for AI shares. “There’s nervousness about how markets will react,” said Josh Gilbert, lead analyst for Asia Pacific and the Middle East at Etoro Ltd. “How markets absorb the biggest listing in history at a rich valuation will tell us a lot about whether the appetite for the AI trade is still sky high.” Veteran short seller Jim Chanos said SpaceX was a “hopes and dreams IPO,” driven more by investor enthusiasm for Elon Musk and AI than financial fundamentals, arguing its valuation is difficult to justify on any reasonable assumptions. The retail investment excitement is near fever pitch and showing up in pre-IPO trading and a 3x levered SpaceX product is planned.   Worries about further Iran war escalation lingered as President Donald Trump told Fox News the US would hit Iran again if its leaders didn’t sign an interim peace deal. Iran’s foreign ministry said the latest attacks rendered the existing ceasefire deal “meaningless.” Traders, however, drew reassurance from the belief that further escalation was to neither side’s advantage.  “We’re keeping our overweight equity exposure,” said Christophe Boucher, chief investment officer at ABN Amro Investment Solutions. “The market has taken the view that Trump doesn’t want to escalate further and has no interest in seeing oil prices surge again.” The European Central Bank is expected to raise interest rates later on Thursday for the first time since 2023, concluding it can no longer ignore inflationary pressures stemming from the war in Iran. Traders will also follow comments by ECB President Christine Lagarde on policymakers’ outlook for the months ahead. President Christine Lagarde plans a news conference at 8:45am European stocks also advance with a pullback in oil prices providing an additional tailwind. Treasuries advance, pushing US 10-year yields down 2bps to 4.53%. The oil price rose, lifting energy shares, after the US military launched strikes against “multiple” targets in Iran. Here are the biggest movers Thursday: Beijer Ref gains as much as 10% after EQT’s Breeze TopCo agreed to sell its entire holding of non-listed A-shares in the Swedish industrial heating and cooling firm to Melker Schorling AB (MSAB) at an undisclosed premium BASF gains as much as 2.1%, rebounding from its lowest level in over two months, after being upgraded at Kepler Cheuvreux, whose analysts raised their earnings expectations for the German chemicals firm Wizz Air rises as much as 6.7% after the airline eked out FY net profit, beating expectations of a €35 million loss. Analysts at Morgan Stanley pointed to signs of normalization in consumer confidence and solid revenue guidance for 1Q 2027 Grafton Group rises as much as 3.5%, hitting a one-month high, after the building supplies company outlined medium-term targets ahead of its capital markets day. Analysts said the goals are ambitious but can be delivered Puuilo gains as much as 12% to a record high after the Finnish home goods retailer reported stronger sales. DNB Carnegie says the print shows excellent delivery in the quarter, primarily driven by strong customer traffic Halma falls as much as 15%, the most since 1993, after the UK industrial group’s guidance for its Photonics business fell short of expectations, the key disappointment in an otherwise solid earnings report European software stocks drop after Oracle reported weak sales from its traditional software business; Oracle reported 4Q cloud applications sales that missed consensus estimate Camurus drops as much as 9.6% after the biopharmaceutical firm said it received a complete response letter from the US FDA in relation to its new drug application for Oclaiz, a treatment for patients with a rare hormonal condition Sligro Food Group plunges as much as 13%, marking the sharpest drop in 11 months after being downgraded at Oddo BHF, whose analysts said there are “no mid-term supportive arguments for a bullish investment case” RWS Holdings shares fall as much as 19% to their lowest since April after the British AI company’s earnings noted a £2 million hit from FX swings Voltalia drops as much as 9.7%, the most in five months, as Morgan Stanley downgrades to underweight from equal-weight due to the French renewable-energy producer’s high financial leverage and its impact on growth Asian stocks fell as rising oil prices and persistent tensions in the Middle East weighed on sentiment. The MSCI Asia Pacific Index fell as much as 1.7% to its lowest level in three weeks before paring the decline. Alibaba Group and Samsung Electronics were among the biggest drags on the index, following concerns over pricing pressures.  South Korea’s Kospi rebounded and gained by 0.4%, while Indonesia’s benchmark dropped by 0.3%. Benchmarks in Hong Kong and China lead declines in the region. Momentum in regional stocks has weakened, with the Asian benchmark nearing its 50-day moving average. Investors remain jittery as US military launched strikes against multiple targets in Iran for the second straight day, triggering gains in oil prices.  Jun Bei Liu, co-founder and lead portfolio manager at hedge fund Ten Cap Investment, said investors were taking profit in tech stocks. “I think this dip will be bought,” she said, adding the market might be getting hopeful that the situation in the Middle East would deescalate after the US military said it had completed its latest strikes in Iran. In FX, the Bloomberg Dollar Spot Index edges higher while the euro is little changed ahead of the ECB decision later on Thursday. In rates, treasuries are richer across the curve, slightly outperforming European bonds ahead of the ECB rate announcement at 8:15am New York time, with a decision to raise rates for first time since 2023 expected. US yields are 2bp-3bp richer on the day, keeping most curve spreads within 1bp of Wednesday’s close. 10-year, near session low 4.53%, outperforms German and UK counterparts by 0.5bp and 1.5bp. Treasuries have support from lower oil prices as signs of traffic through the Strait of Hormuz offset concern about fresh US attacks on Iran. Focal points of US session include May PPI data and 30-year bond reopening. The Treasury auction cycle concludes with $22 billion 30-year reopening at 1pm, following solid demand for 3- and 10-year note sales over past two days. 30-year WI yield near 5.01% is ~3.6bp richer than the May new-issue result In commodities, WTI crude oil futures are down around 1.2% near session low. Brent crude futures fall more than 1% to below 92 with traders seemingly looking past fresh attacks between the US and Iran. Precious metals and Bitcoin also climb US economic data calendar includes weekly jobless claims and May PPI (8:30am) and 1Q household change in net worth (12pm) Market Snapshot Top Overnight News OpenAI is considering drastically lowering the prices it charges users as it seeks to win customers from its rival Anthropic. The company is weighing significant cuts to what it charges for tokens, the unit of measurement artificial-intelligence firms use to bill for their products, according to people familiar with the matter. WSJ Donald Trump told Fox News that the US will launch more attacks on Iran unless it accepts an interim peace deal. His remarks followed another night of clashes between the two countries. Iran told ships with permits to cross the Strait of Hormuz to await guidance, saying it’s closed until further notice. BBG Efforts to reach an interim deal to end hostilities between Iran and the U.S. have intensified, three Iranian sources and a European official told Reuters on Thursday, despite strikes launched by both sides, as the warring parties discuss how to release frozen Iranian funds. RTRS A sharp fall in China’s crude oil imports during the Iran war has been instrumental in holding down oil prices and keeping the global economy humming. Clues are emerging in the mystery of the missing three million barrels—the oil that China would normally be importing but isn’t now. Chinese people are driving fewer gasoline-powered cars and taking trains instead of planes. WSJ SK Hynix plans to double its capacity within 5 years and triple it by 2034. Nikkei Shares of Alibaba and JD.com slid after Chinese regulators scolded leading e-commerce players for what it called misleading promotions. BBG The European Central Bank is all but certain to raise interest rates on Thursday in the hope of nipping higher inflation in the bud before a surge in energy costs triggered by the Iran war spreads ‌more broadly across the euro zone economy. RTRS S&P upgraded Argentina’s credit rating to B-, citing President Javier Milei’s fiscal austerity and improved liquidity access. BBG The Knicks staged the biggest comeback in NBA Finals history, rallying from a 29-point deficit to defeat the San Antonio Spurs 107-106 in Game 4. The win gave New York a 3-1 series lead, one victory away from its first NBA championship since 1973. BBG BofA Total Card Spending (w/e 6th Jun) +6.1% (prev. +5.2% W/W, +4.8% in Apr); entertainment, clothing, HI, furniture and transit saw the biggest acceleration. Top Iran News The US carried out fresh strikes against Iran, with US CENTCOM saying that American forces began launching additional self-defence strikes, and then later announcing that it completed the strikes, targeting Iranian military surveillance capabilities, communication systems and air defence sites across Iran. In response, Iran's military command centre announced the Strait of Hormuz would be closed to all vessels, effective immediately, and threatened to hit any vessels crossing the strait. Iran's IRGC also said it launched two waves of retaliatory strikes, hitting and destroying 18 key military targets in US bases in Kuwait and Bahrain. Following the overnight strikes, an Iranian source told Reuters that Iran and the US are still in negotiations over a preliminary deal, which includes a mechanism for unfreezing funds. This followed commentary by the Pakistani Foreign Minister stating that we remain engaged with a degree of optimism. The minister added that channels of communication remain open and Pakistan and Qatar remain engaged in mediation efforts. To add, CNN reported first, citing a source, stating that US-Iran talks still continue despite US-Iran military exchange. US President Trump said on Wednesday evening that fighter jets were operating over the skies of Iran, and he spoke directly with Iranian officials. Trump added that Iranians asked him to stop bombing, while he said the bombing will stop shortly, but left the option open for more strikes. Trump also stated that Israelis were not involved in Iran strikes and that the US fired 49 Tomahawk missiles, as well as noting that Iran must choose between war or a new deal and warned 'we'll bomb them to rubble tomorrow night' if there is no deal. Tasnim cited a reliable source stating that Trump's claim that Iranian officials spoke with him directly and wanted the bombing to stop is completely false, while the source added that no contact has been established with Trump and that Iran responds to aggression with military action. US President Trump held a Situation Room meeting on Iran strike options, while sources said one option Trump was considering was launching an operation that is big in scale but short in duration, according to Axios. However, NYT later reported that officials held a Situation Room meeting regarding the Epstein files and that the meeting was held without Trump. US Secretary of War Hegseth said Central Command would be busy overnight and that the US would hit Iran hard, with the US to bomb key facilities in Iran, and strikes would be strong and clear. IRGC Navy said vessels approaching the Strait of Hormuz is considered cooperation with the enemy and "We warn that no vessel should leave its anchorage in the Persian Gulf and the Sea of Oman", ISNA reported. Iran said applicants who have received a transit permit are asked to be patient and await further guidance from the PGSA, IRIB reported and repeated that the Strait remains closed until further notice. UKMTO received a report of an incident 21NM Northeast of Sohar, Oman. Iran's Sirik Governor later said the US projectile hit a cargo boat in the Gulf of Oman. A 7th vessel carrying Qatari LNG is understood to have transited the Strait of Hormuz, Kpler's Bakr reported. India's embassy within Oman said they were informed on Thursday of an incident that involved a vessel in proximity to the Shinas port. Israeli airstrike targets a facility in Western Bekaa, central Lebanon, Al Hadath reported. Israeli airstrikes reported on towns in southern Lebanon, Al Mayadeen reported.** A more detailed look at global markets courtesy of Newsquawk APAC stocks declined in a continuation of the recent tech reversal, and as the US conducted strikes on Iran for a second consecutive day, which prompted Iran to retaliate by targeting US bases in the region and ships near the Strait of Hormuz. Iran also declared the waterway closed to all vessels. However, stocks then gradually pared losses given that the fresh strikes were widely telegraphed beforehand and with relief also seen after CENTCOM announced that US forces completed the strikes. ASX 200 was pressured with the downside led by underperformance in tech and the top-weighted financials sector, although losses were stemmed by resilience in energy and defensives. Nikkei 225 slumped at the open owing to the fresh hostilities in the Middle East, with headwinds seen amid higher oil prices and upside in yields, although the index then staged a recovery and returned to flat territory before a renewed bout of selling persisted. Hang Seng and Shanghai Comp followed suit to the weakness across global markets, with several tech stocks clustered among the list of worst performers. Top Asian News Japan PM Takaichi and US President Trump are arranging a meeting during the G7, Nikkei reported. Japanese Chief Cabinet Secretary Kihara said he doesn't think BoJ Governor Ueda's temporary hospitalisation will affect the BoJ's policy conduct and cooperation with the government. PBoC Governor Pan reiterated the depth and breadth of China's financial market, provide key allocation opportunities for overseas institutional investors. European bourses (STOXX 600 +0.6%) trade with broad gains despite another round of US-Iran strikes. The US targeted Iranian military surveillance capabilities, communication systems and air defence sites across Iran, while Iran's IRGC said it launched two waves of retaliatory strikes, hitting and destroying 18 key military targets in US bases in Kuwait and Bahrain. Germany's DAX 40 (U/C) underperforms, weighed on by losses in SAP (-4.4%) following Oracle's earnings. European sectors trade mixed. Utilities (+1.3%) tops the list, with Energy (+1.2%) and Banks (+1.2%) round out the top 3. Autos (-0.4%), Real Estate (-0.4%) and Telecoms (-1.0%) are the underperformers. Top European News France and Germany are discussing proposals for a radical overhaul of the EU’s diplomatic service in an attempt to improve the response to geopolitical crises, according to FT. FX G10s are mixed against the Buck in relatively thin trade into the ECB meeting and US PPI. A busy morning in terms of newsflow, has not translated into price action/vol for G10s which are mixed against the flat Buck. Gradual weakness in Crude benchmarks seen among slew of optimistic US-Iran updates (see feed from 08:21-38 BST), did little to move DXY from its 100.00 handle despite Brent edging to session lows under USD 92/bbl. In short, it appears negotiations continue despite the recent exchange of fire. The Greenback seems less sensitive to geopolitical headlines as markets interpret recent US data with PPI ahead. CAD is the worst G10 performers as energy weakness pressures the Loonie. On Wednesday, the BoC held rates at 2.25% with some dovish undertones. Although release and accompanying remarks from Macklem/Rogers were a repeat from April, ING notes its use of language such as “excess supply” and “looking through” inflation may have offered the Loonie. Amid the recent weakness in energy benchmarks, USD/CAD could approach the 1.40 level should US PPI print hot. The main EUR event today will be the ECB meeting, where the Governing Council is expected to hike by 25bps, taking the Deposit Rate to 2.25%. This is justified by the assessment that the ECB is past the March baseline and is closer to the adverse scenario. Attention will be on language regarding a July move, where interest rate futures currently assign a 30% probability of tightening. EUR has been moving lower on account for recent USD upside as mentioned above. EUR/USD trades within recent parameters in the middle of a 1.15-16 band. If the ECB indicates further tightening, that could see the pair test resistance at 1.1570/80, whereas a dovish council may see recent lows of 1.15 tested, in conjunction with hot US PPI. Fixed Income Global fixed benchmarks are trading tentatively on either side of the unchanged mark. This comes amidst another US strike on Iranian military targets, which led to retaliation from the Iranians. This led energy higher overnight, but then came off best levels as CENTCOM announced the latest bout of attacks are completed. Thereafter, energy benchmarks turned negative after CNN reported that US-Iran talks are continuing. This helped global fixed paper to clamber off worst levels, with the complex generally sitting towards highs. USTs (+2 ticks) trade towards the upper end of a 108-27 to 109-06+ range. The trough of the day was formed overnight, which coincided with the peaks in the energy complex. Thereafter, US paper clambered off worst levels, as the geopolitical environment eased. Domestically, focus will be on the US PPI report, which, together with Wednesday's broadly in-line CPI report, will be used as a key determinant for next week’s Fed policy announcement. The policy rate is unlikely to be adjusted, but focus will be on comments pertaining to the easing bias removal. Also on the docket today is a 30yr auction, which follows on from a decent 3yr outing and a strong 10yr auction. This notably comes despite the ongoing volatility and hawkish Fed repricing. Bunds (+9 ticks) are trading towards the upper end of a 124.88 to 125.29 range, currently driven by events in the Middle East, though focus will come back to Europe where the ECB is set to deliver a 25bps hike this afternoon. Given markets widely expect a hike, focus will be on the accompanying statement and President Lagarde to see if/how hawkish the Bank shifts. The likelihood is that Lagarde will keep optionality; ING opines that she will want to avoid “sounding too dovish”. Gilts (-3 ticks) are essentially flat and trade within a 87.39 to 87.60 range. Ultimately, moving at the whim of geopolitical developments. Domestic newsflow has been light, with some focus on Burnham comments where he suggested he would support Waspi Women, a compensation scheme believed to cost upwards of GBP 10bln. With the UK newsflow light, Gilts will likely take leads from this afternoon’s US PPI and ECB announcement. UK sells GBP 5.0bln 2029 Gilt: b/c 3.60x (prev. 3.35x), average yield 4.419% (prev. 4.238%), tail 0.2bps (prev. 0.2bps). Italy sells EUR 4.0bln vs exp. EUR 3.5-4.0bln 3.00% 2029 BTP: b/c 1.62x, average yield 3.03%. Commodities The US carried out fresh strikes against Iran, with US CENTCOM saying that American forces began launching additional self-defence strikes, and then later announcing that it completed the strikes, targeting Iranian military surveillance capabilities, communication systems and air defence sites across Iran. In response, Iran's shut the Strait of Hormuz and launched its own attack on some Gulf nations. Despite these strikes, an Iranian source tells Reuters that Iran and the US are still in negotiations over a preliminary deal, including a mechanism over unfreezing funds, while the Pakistan Foreign Minister said they remain engaged with a degree of optimism. Prior to that, CNN sources outlined that US-Iran talks continue, despite the US-Iran military exchange. Crude futures have completely pared the earlier gains. WTI Jul'26 reversed at the 50-SMA (USD 93.48/bbl) and currently trades at the lower end of its USD 88.77-93.64/bbl range. For Brent Aug'26, the benchmark has slipped below USD 92/bbl (USD 91.72-95.50/bbl range). Precious metals rebound following the drop in the last few days, action driven by several previously discussed factors. Spot gold dipped below the March 26th low of USD 4099/oz in Wednesday's session and extended to a trough of USD 4024/oz early in the Asia-Pac day. Since then, the yellow metal has bid higher and now trades at the upper end of its USD 4024-4118/oz range. 3M LME Copper gapped lower at the start of trade, following the selloff in APAC equities, but has since oscillated in a USD 13.39k-13.52k/t range. Japan's PM Takaichi said that she expects to secure 100% of crude in July, without passing the Strait of Hormuz. Shanghai Futures Exchange has adjusted daily price-limit bands and trading margin ratios for gold and silver futures contracts US Eco Calendar 8:30 am: Jun 6 Initial Jobless Claims, est. 220k, prior 225k 8:30 am: May 30 Continuing Claims, est. 1785k, prior 1777k 8:30 am: May PPI Final Demand MoM, est. 0.7%, prior 1.4% 8:30 am: May PPI Ex Food and Energy MoM, est. 0.5%, prior 1% 8:30 am: May PPI Final Demand YoY, est. 6.4%, prior 6% 8:30 am: May PPI Ex Food and Energy YoY, est. 5.4%, prior 5.2% DB's Jim Reid concludes the overnight wrap The rise in oil prices has continued this morning after the US launched fresh strikes against Iran for a second day running. So investors are increasingly pessimistic that a deal will be reached anytime soon, or that the Strait of Hormuz will reopen. That’s meant Brent crude is up another +1.70% overnight to $94.68/bbl, building on yesterday’s gains. And as a result, global equities are at a one-month low, with the S&P 500 (-1.62%) posting a fresh slump yesterday. Moreover, those losses have shown no sign of easing in Asia, with the Hang Seng (-1.05%), the CSI 300 (-1.07%), the Shanghai Comp (-0.73%) and the Nikkei (-0.19%) all losing ground this morning. The one bright spot is that futures on the S&P 500 (+0.33%) have stabilised overnight, but the overall backdrop is one of mounting volatility as investors have priced a growing chance of further escalation. All that follows a day of mounting threats, which culminated in several US strikes overnight. US Central Command framed them as “additional self-defense strikes” on “multiple targets”. Meanwhile, Fox News reported that President Trump had told them he would bomb Iran again today if they didn’t sign an agreement. So fears of a further escalation were very much in focus, and Iran’s Press TV said they’d targeted the US Fifth Fleet in Bahrain using various attack drones.   Even before those latest US strikes overnight, markets had already posted fresh declines yesterday as US-Iran tensions continued to mount. The first uptick in oil prices followed a post from President Trump, who said that Iran have “taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!” So that raised fears about an escalation, and a few hours later, Trump then said the US would “hit Iran hard again today”, suggesting that further action was on the table. Those initial headlines led to a clear jump for oil, with Brent crude (+1.80%) ending the day at $93.10/bbl. Moreover, as investors dialled back the chance of a near-term resolution, longer-dated oil futures also moved higher, with the 6-month Brent future up +1.55% on the day to $85.89/bbl. And on Polymarket, there was increasing doubt that the Strait of Hormuz would reopen anytime soon, with the probability of normal traffic by end-July down to 26% by the close. Admittedly, there were a couple of headlines that were more positive. For instance, Fox News reported a senior White House official on background, who said “the talks still continue”. Meanwhile, Iran’s ISNA reported that a Qatari delegation had arrived in Tehran yesterday, for talks on diplomacy with the US. But for markets, investors have priced out the likelihood of a near-term deal, particularly with the latest strikes overnight. With signs of a near-term resolution fading, investors grew more concerned about the stagflationary scenarios again, with bonds and equities selling off on both sides of the Atlantic. Indeed, the S&P 500 (-1.62%) fell to a one-month low, with tech stocks including the NASDAQ (-1.98%) and the Magnificent 7 (-2.23%) leading the way. The selloff was a classic rotation out of growth and cyclicals into defensives as Telecoms (+2.25%), Food & Bev (+1.98%) and Consumer Staple Retail (+1.86%) were the best performing S&P 500 industry groups, while Autos (-3.92%), Capital Goods (-3.88%), and Semiconductors (-3.76%) were the biggest laggards. And over in Europe, it was much the same story, with the STOXX 600 (-0.08%) down for a 4th consecutive session to a three-week low. While geopolitics provided the main headlines, there were also developments on the AI-capex front as well. Most notably, Oracle shares fell -10.25% in after-hours trading after they reported higher capex spending than estimated, adding to doubts about the profitability of AI infrastructure like data centres. Otherwise, the company also announced plans to raise another $40bn in equity and debt, including a previously disclosed plan to issue $20bn in shares.    For sovereign bonds it was much the same story of losses, with the 10yr Treasury yield up +3.6bps to 4.55% by the close. And that increase came despite the more positive impact from the US CPI print, where monthly core CPI was softer than expected, which helped to dial back some of the speculation about a Fed rate hike this year. So the release showed headline CPI up as expected in May, with a +0.5% monthly print that took the year-on-year reading to +4.2%. But core CPI was softer at +0.2% on the month (vs. +0.3% expected), with the year-on-year measure at +2.9%. But for sovereign bonds, the temporary relief from the CPI print was outweighed by the more negative geopolitical headlines and higher oil prices, so they still lost ground on the day. Over in Europe, sovereign bonds also struggled ahead of today’s ECB decision. Once again, that was driven by the geopolitical headlines, with inflation fears ramping up. For instance, the 1yr Euro inflation swap was back up +4.85bps yesterday to 2.98%. And in turn, yields on 10yr bunds (+3.3bps), OATs (+4.1bps) and BTPs (+4.9bps) all moved higher again. That included a few records as well, with the 10yr OAT yield up to a post-2008 high of 3.85%, whilst Germany’s 10yr real yield (+2.7bps) hit a 5-month high of 0.83%. Speaking of the ECB, they’ll be announcing their decision at 13:15 London time, where they’re widely expected to deliver a 25bp hike that lifts their deposit rate to 2.25%. That comes as inflation has clearly risen above target, and our European economists think the energy shock has now been large enough for the ECB to act. Indeed, the Euro Area flash CPI print for May was at 3.2%, whilst core CPI was also at a one-year high of 2.5%. In terms of what to look out for, given a hike is widely expected, a big question will be what they signal beyond this meeting about future hikes. Our economists think they’ll want to maintain optionality, and will keep further hikes on the table so markets don’t interpret today as a one-off move.  Ahead of that, we also had the Bank of Canada’s latest decision yesterday. They left their policy rate unchanged at 2.25%, as was widely expected, and they kept their options open given the current uncertainty. For instance, Governor Macklem suggested that if higher energy prices led to higher inflation, then “there may be a need for consecutive increases in the policy rate”. But he also suggested that additional US trade restrictions could mean they “may need to cut the policy rate further to support economic growth.” Against that backdrop, Canadian bonds saw a relative outperformance yesterday, with the country’s 10yr yield (+0.9bps) seeing a modest increase to 3.49%. Finally, there were fresh tariff headlines as President Trump announced that he would not be reauthorising the country’s USMCA trade pact with Mexico and Canada agreed in his first term. He said “I’m not looking to renew it”, and without an extension, the deal would see rolling annual reviews while remaining in force for the next decade. It’s possible for a country to exit the deal with 6 months’ notice, but Trump did not say if he was considering this. Looking at the day ahead, the main highlight will be the ECB’s policy decision and President Lagarde’s subsequent press conference. Otherwise, US data releases include the PPI reading for May, and the weekly initial jobless claims. Tyler Durden Thu, 06/11/2026 - 08:19

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  • Tyler DurdenBy Tyler Durden

    Futures Rise, Oil Drops As US Ends Iran Strikes US equity futures are higher led by tech and small caps, with traders buying the dip in stocks as a swift conclusion to the latest round of US strikes against Iran raised expectations that talks over a peace deal and th

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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
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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
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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
strikeUnverifiedUSIsraelIranProxyRussiaChina
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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?