2026伊朗-海湾危机追踪
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strikeJul 8, 2026

Futures Slide, Oil Jumps After Trump Declares Iran Ceasefire Over

Summary

Futures Slide, Oil Jumps After Trump Declares Iran Ceasefire Over Markets are on the backfoot this morning with equity futures and macro credit under pressure, bond yields spiking, the USD higher, and oil jumping after President Trump thrust geopolitical risks back into focus by declaring the ceasefire between the US and Iran to be over calling it “a waste of time” after the US launched strikes against Iran in response to attacks on ships transiting the Strait of Hormuz. As of 8:00am, S&P 500 futures slid 0.7% and Nasdaq futures slumped 1% dragged lower by memory and chip stocks after the latest kinetic volley.  The latter takes place in the context of mixed tech trade in Asia with the Hang Seng Tech Index up 5%, whilst the South Korean Kospi lost 5.4%. Pre-market semis and Mag7 are being sold as Energy and Staples are the two best sectors; everything else is flat to down. The drawdown in momentum and the broader AI infrastructure trade (~85% correlation between these two cohorts) remains heavily in focus, with the GS High Beta Momentum basket (GSPRHIMO) now surpassing -20% over the past 5 days. This morning, global price action is pointing towards “more of the same” with the primary Momentum tone-setters (Hynix -6% in Korea, SNDK -6%, MU -5%) lower across the board.  Brent crude advanced 5% to around $78 a barrel while WTI breached $75/bbl (+6%) before declining as the Energy complex leads commodities higher. Precious metals are getting hit with mixed bids to Ags and Base metals. Treasury yields are up around 2-3bps across the curve (10Y yield rising to 4.56%) with the market needing to digest a $39bln 10 year note auction ahead of the FOMC minutes. USD is higher.  Higher energy prices feed into inflation expectations and Fed minutes this afternoon take on added significance in the tighter-lipped Warsh era. Gold fell and the dollar wavered. In premarket trading, all Mag 7 stocks are lower (Meta -1.8%, Nvidia -1.6%, Microsoft -1.4%, Amazon -1.7%, Tesla -1.6%, Alphabet -1.3%, Apple -0.4%).  Chipmakers and other AI-linked names are set for more declines on Wednesday as traders continue to rotate out of the sector. Energy stocks rally, while airlines and cruise lines slide, after Trump said a tentative ceasefire with Iran is “over,” raising the prospect of an end to peace negotiations and a potential renewal of fighting between the two countries. Chevron (CVX) climbs 2%, while Exxon (XOM) gains 2%. Alibaba ADRs (BABA) surge 8% after investors turned optimistic on its earnings and shifted capital into major Chinese internet companies. Bath & Body Works (BBWI) falls 4% after Goldman Sachs analyst Kate McShane cut her recommendation on candle and soap retailer to sell. Sentiment on the company is “trending below historical levels,” including Reddit trends and with younger consumers, Goldman’s analyst writes. Beazer Homes USA (BZH) climbs 12% after Dream Finders Homes said it has submitted a revised all-cash proposal to acquire the company. FuelCell Energy (FCEL) falls 21% after the company priced its upsized underwritten public offering of 10.7 million shares of its common stock. MasTec (MTZ) inches 2% higher after the construction company entered into a pact to buy Electrical Specialists for about $1.65 billion, consisting of about $475 million in MasTec stock and about $1.175 billion in cash. Navitas (NVTS) is down 7% after Wolfspeed filed a patent infringement lawsuit against the company in the US District Court for the District of Delaware, alleging that a broad range of Navitas products infringes multiple Wolfspeed patents. Universal Health Services (UHS) slips 2% after Barclays downgraded the hospital operator to equal-weight, saying the fundamental and regulatory backdrop is turning more negative. Overnight sentiment was hammered when a retaliation by the US on Iranian targets overnight was followed up by remarks just after 4am ET from US President Trump that the ceasefire with Iran is over, saying that "as far as I’m concerned it’s just a waste of time." The dollar and yields spiked, while WTI crude jumped back above $75 a barrel, Trump's comments, made on day two of the NATO summit in Turkey, followed the US revocation yesterday of a waiver allowing sales of Iranian oil and subsequent strikes against more than 80 targets. Trump meets Ukraine’s Zelenskyy later. A handful of oil carriers appeared to transit through the Strait of Hormuz early Wednesday, even after a spate of strikes on ships rattled owners and prompted at least one supertanker to turn around midway through its crossing. Trump’s declaration “marks the most serious rupture yet in an agreement that has been fraying for weeks,” said Violeta Todorova, senior research analyst at Leverage Shares. “Markets had been treating the June memorandum of understanding as a durable de-escalation. That complacency now looks fragile.” Trump overnight also slammed Spain for not contributing enough to NATO and threatened to cut off all trade with the country.  That said, JPM tried to calm nerves with comments this morning, writing that the situation has not materially changed with neither US / Iran showing a desire for an extended conflict. On the US side, Trump had argued that the ceasefire paused the 60-day limit before he is required to get Congressional approval to extent military hostilities. He was facing resistance to secure additional funding for the war and next year’s military budget during the ceasefire, so another spike to fuel prices adds to that political headwind. On the Iran side, they want legal control of SoH but likely want higher oil prices to pressure Trump and to maintain revenue given the lack of demand for their unsanctioned oil. “My first read is that investors will not immediately price this as a full return to war, but they also cannot go back to the clean ‘peace dividend’ trade,” said Charu Chanana, chief investment strategist at Saxo Markets. “The bigger point is that any path from ceasefire to durable peace now looks much longer and much more fragile.” Today's 2 p.m. ET release of the Fed’s June meeting minutes takes on added significance after Warsh shortened the policy statement and declined to contribute to rate forecasts. Bloomberg Economics’ Andrew Sacher expects the account to reinforce the committee’s focus on above-target inflation and its preference to preserve the option of further tightening. The options market is signaling that investors may be overestimating how much the Fed will raise rates this year. Since Warsh said last week that inflation risks have eased, flows in options linked to the Secured Overnight Financing Rate have tilted toward positions that would benefit if the swaps market pares back expectations for further rate hikes. Elsewhere, China lifted refined fuel export restrictions for the rest of July and allowed a private refiner to resume shipments after a four-month halt. In New Zealand, the RBNZ raised rates by 25bps (expected) with guidance still leading toward hikes, though with a softened tone. Looking ahead, we will receive wholesale inventories for May and the June FOMC meeting minutes.  In Europe sentiment was hammered with the Stoxx 600 down 1.9% and all sectors ex-energy lower. Energy is the only rising sector, while autos and construction fall the most. Here are some of the biggest movers on Wednesday: Jet2 shares surge as much as 17%. Analysts see strong booking momentum amid ebbing geopolitical risks and lower jet fuel prices. TGS shares rise as much as 9.6% after the Norwegian geophysical consulting and services firm reported better-than-expected 2Q results. Repsol shares gain as much as 4.8% after the Spanish oil company reported a stronger refining margin in 2Q. Hikma Pharmaceuticals shares rise as much as 6% after a Betaville report regarding possible takeover interest in the UK pharmaceutical company. Kuros Biosciences gains as much as 12% after Berenberg initiated coverage on the stock with a buy recommendation, saying the Swiss company’s growth is “poised to reach an inflection point.” Lufthansa drops as much as 6.4% after Citi downgraded the stock to sell from neutral, saying the valuation seems “less compelling” following the recent rally. Man Group shares drop as much as 3.4% after UBS downgraded the investment management firm on valuation grounds following strong gains. Rio Tinto falls as much as 3.6% in London to its lowest since March after Morgan Stanley cut the stock to underweight from equal-weight, saying the miner’s valuation is stretched given weaker iron ore fundamentals and limited copper exposure. Castellum shares drop as much as 4.9% after UBS downgraded the Swedish property firm to neutral from buy, saying “much of the near-term value creation is now reflected in the share price.” Vistry shares fall as much as 12% after the homebuilder warned of first-half losses. Boku shares plunge by a record 35%, slumping to their lowest level since 2022, after the payments company warned its results for 2026 will be below market expectations. Belimo shares fall as much as 7.4% after the Swiss maker of heating, ventilation and air conditioning equipment was cut to sell at Van Lanschot Kempen, which sees a potential increase to guidance as already priced in. Asian equities fell further after the US President Donald Trump declared the ceasefire between his country and Iran over, escalating geopolitical tensions in the Middle East.  The MSCI Asia Pacific Index fell as much as 1%, after swinging between a loss of 1% and gain of 0.4%. Indian stocks reacted adversely to Trump’s comments, with the benchmark Nifty 50 gauge dropping over 2% and a gauge of volatility spiking 30%. Stocks also extended their decline in Indonesia, which relies heavily on oil imports, while futures on Japanese stocks fell 1.3%. The fresh bout of weakness follows a selloff in technology stocks in South Korea, where Samsung Electronics and SK Hynix were among the major drags. South Korea’s benchmark Kospi fell 5.4%, taking its drop from last month’s all-time high to about 20%. Shares also fell in Japan and Australia, while those in Hong Kong and Singapore advanced. Bucking the trend, a key gauge of Chinese shares listed in Hong Kong climbed 4% earlier in the day, as the AI rotation trade gathered pace in Asia. Investors are pulling money from the chipmakers that powered this year’s rally and hunting for cheaper ways to play the technology boom. Elsewhere, Indonesian equities fell after S&P Dow Jones Indices signaled the country could eventually lose its emerging-market status if concerns over its stock market persist. New Zealand stocks fell as the central bank raised its key interest rate for the first time in three years. In FX, the Bloomberg Dollar Spot Index is up 0.1%. However, performance versus peers is mixed with Kiwi dollar near the top of the leaderboard after a hawkish hike from the RBNZ In rates, treasuries extended their late-Tuesday selloff as oil prices mounted sharply after US President Donald Trump said the tentative ceasefire with Iran is over. 2-year yields topped 4.20%, approaching this year’s high, while 10-year exceeded 4.58%, cheapest since May 22. US front-end and belly yields are 2bp-3bp higher on the day, flattening 5s30s spread by around 1bp. 10-year, higher by 2bp, trails steeper increases for German and UK counterparts as they catch up with Tuesday’s US yield surge that occurred after European markets had closed. European bonds tumbled as traders added to wagers that central banks will have little choice but to raise interest rates this year. The yield on 10-year gilts jumped 10 basis points to 4.95%, the highest level in nearly a month. This week’s Treasury auctions continue with $39 billion 10-year reopening at 1pm New York time and conclude with $22 billion 30-year reopening Thursday. Demand was strong for Tuesday’s 3-year new issue, which stopped through by 0.6bp and had a record low dealer allotment. WI 10-year yield near 4.575% is ~4bp cheaper than the June auction, which stopped through slightly in a solid result. Focal points of US session include a 10-year reopening auction and publication of minutes of June FOMC meeting. IG dollar issuance slate includes a KfW $6 billion 2-part offering. Amazon’s $25b offering headlined a six-issuer US investment-grade new issue session Tuesday. Issuers paid about 10bps in new issue concessions on deals that were 2.8 times oversubscribed. In commodities, Brent crude futures are higher by 6.7% and just above the $79/bbl mark as tensions in the Middle East ratchet higher. Oil extended its gains on renewed US-Iran tensions, raising the prospect of a fresh round of conflict in one of the world’s most important energy-producing regions. This came after the US military launched fresh air strikes in Iran and revoked a waiver that allowed it to sell oil globally. Precious metals are on the back foot with spot gold and silver down 1.2% and 2.5% respectively. Bitcoin has slipped over 3%. US economic data calendar includes May wholesale inventories (10am) and consumer credit (3pm). Fed calendar empty for the session apart from FOMC minutes release at 2pm Market Snapshot Top Overnight News US President Donald Trump said a tentative ceasefire with Iran has ended, raising the prospect of an end to peace negotiations and a potential renewal of fighting between the two countries. “For me, I think it’s over. As far as I’m concerned it’s just a waste of time.” BBG President Trump slammed Spain for not contributing enough to NATO or spending enough on defense. “Spain is a terrible partner in NATO. They don’t participate. They don’t pay. I don’t want anything to do with Spain. Cut off all trade with Spain,” Trump said at a press conference in Ankara, Turkey. CNBC South Korean stocks have entered a technical bear market as investors raise concerns about the long-term prospects of the AI chipmakers that have driven a world-beating rally. The Kospi index is down more than 20 per cent from its record high in June after slipping more than 5 per cent on Wednesday. FT China has lifted refined fuel export restrictions for the rest of July and allowed a private refiner to resume shipments after a four-month halt, trade sources ‌said on Wednesday, as the world’s biggest refiner returns towards normal after disruptions from the Iran war. BBG The AI rotation trade is gathering pace in Asia as investors pull money from chipmakers and hunt for cheaper ways to play the technology boom. Investors are rotating into one of Asia's most unloved markets, with Alibaba Group Holding Ltd. and Tencent Holdings Ltd. rising after the Kospi Index was pushed to a technical bear market. BBG The Reserve Bank of New Zealand raised interest rates Wednesday in what appeared to be a tentative move by policy makers to combat nagging inflation pressures. The official cash rate was raised by 25 basis points to 2.5%. WSJ OpenAI said its new AI model GPT-5.6 will be made available to the public tomorrow. The White House lifted restrictions on the model after government-approved entities were given a preview. Axios Nvidia’s stock is the cheapest it’s been since before the AI boom, after losing roughly $1 trillion in market value in under two months. BBG Wildcatters are racing to secure oil deals in Venezuela, moving faster than Big Oil despite earthquake damage and political uncertainty. Whether the country’s vast reserves can overcome the current challenges remains an open question. BBG South Korea's Foreign Ministry said they have signed an MoU with the US and Japan on cooperation to deploy small modular reactors: RTRS. The sell off in the Goldman High Beta Momentum (GSPRHIMO) has now surpassed 20% over 5 days, exceeding short term expectations for a summer slump in the factor. This magnitude of sell off at such velocity has not been seen since 2020 when the stay-at-home vs go outside narrative shifted meaningfully towards reopening. It is notable that the current drawdown does not have the same strength of catalyst. Fingers have pointed towards SK Hynix raising and META cloud business. Iran War Trump stated he "thinks" the ceasefire with Iran is "over":  Trump said the Iran ceasefire is over "I think"; as far as I am concerned, it is a waste of time dealing with Iran. On the MoU, "think it is over". Adds, "I do not want to deal with Iran", they are a "bunch of liars". US President Trump said (on Iran) he will allow US negotiators to continue to talk if they want. But, "I think this is a waste of time". US CENTOM announced that it completed a new round of offensive strikes, hitting over 80 targets with precision munitions. CENTCOM added that forces remain postured and prepared to hold Iran accountable when the agreement is not adhered to or obeyed. Several explosions have been heard in Bushehr, Iran, according to Mehr news; Mehr's journalist on Kharg Island denies reported of an attack on Kharg, despite some reported of an incident being published. In response, Iran's IRGC said they hit 85 important US military installations in Port Salman, Bahrain's 5th Maritime Zone and Kuwait's Ali Salem Air Base. A more detailed look at global markets courtesy of Newqsuawk Asia-Pac stocks traded mixed, with Chinese indices the only region in the green amid multiple IPOs and strength in China's tech space. Sentiment from the US session carried over in the Asia-Pac session, as energy prices surged amid the re-escalation of US-Iran tensions. ASX 200 continued to be weighed on by metals, with the Metals & Mining sector the worst performer, with Materials followed. Energy topped the sector pile Nikkei 225 started on the softer side, briefly returned to the unchanged mark before returning to the downside. KOSPI traded choppy, as the initial weakness briefly reversed to print modest gains. However, weakness returned as the session continued, resulting in the Korea Exchange activating the sidecar on the KOSPI and KOSDAQ. As a result, the KOSPI extended its losses from June peak to 20%, indicating a bear market. Shanghai Comp. and Hang Seng. were the only indices printing gains, with outperformance in the Hang Seng following strength in tech names. The strength can be attributed to two reports: 1) From Reuters, DeepSeek developing its own chip to power AI systems, and 2) from the Information, Zhiphu considering designing its own AI chip. Top Asian News China's MIIT has issued a risk warning regarding the potential security backdoors in the AI programming tool Claude Code. South Korean Government said companies with consolidated assets of over KRW 10tln will be required to disclose information on their ESG performance and risks, starting 2028. South Korean Finance Minister said they are to watch risk factors around stock market volatility, will enhance FX monitoring system to respond to night-time volatility. Japan is considering a change to monetary policy wording in the Honebuto, Asahi reported. European bourses (STOXX 600 -1.8%) began the session lower amid renewed US-Iran developments which spurred energy benchmarks higher. The move then extended after US President Trump suggested that he thinks the ceasefire with Iran is "over". European sectors in Europe are entirely negative (excl. Energy +2%) as they react to elevated energy prices. Top European News US President Trump said he is not happy with NATO when it comes to Greenland. Spain is a wasted cause, they do not want to do trade. Cutting off all trade with Spain and all visits. "Do not want to do any more trade with them (Spain)". Treasury Secretary Bessent has been told to cut off all trade with Spain. US is paying too much into NATO. UK and Italy were both terrible in not allowing the US to use military bases. Greenland is not important to Denmark. FX G10s are mostly lower against the Buck excl. commodity exporters CAD and NOK, which are resilient vs. the USD. USD rose throughout the morning in reaction to energy strength alongside sour equity sentiment after US President Trump said he thought the Iran ceasefire was over. To briefly summarise developments, yesterday the US Treasury revoked the June 21st Iran-related waiver, General License X, which had allowed Iran to produce, deliver and sell its oil; and US President Trump’s remarks this morning accelerated the move higher in USD/oil with “Iran ceasefire is over "I think" the kicker. Kiwi was the clear outperformer post RBNZ, but reversed gains against the Buck after the aforementioned Trump remarks. To briefly recap, the RBNZ hiked rates by 25bps in a unanimous decision, signalling further hikes to bring inflation to the 2% target mid-point; this saw some participants unwind bets for a hold. AUD/NZD appears the preferred vehicle to express the in-line/hawkish decision, now the Buck has picked up. JPY continues to underperform amid carry/Terms of Trade implications. USD/JPY remains on a 162.00 handle and has essentially pared that downside seen on potential intervention fears last week having risen throughout the London morning. Reporting overnight via Asahi and Nikkei noted that the Japanese government may tweak a reference to monetary policy in its annual policy agenda to avoid the appearance that it is putting pressure on the BoJ. Fixed Income Fixed income started on the backfoot, as benchmarks gradually moved lower as energy continued to move higher overnight given the US revoked Iran’s oil waiver and then conducted strikes on 80 Iranian targets in retaliation to Iran targeting various cargo vessels on Tuesday. The early morning saw modest additional pressure, with Bunds and USTs lower by roughly 40 and five ticks, respectively, at first. The scheduled docket ahead featured supply and a few data points, but we were primarily awaiting comments from the US and/or Iran after the overnight action. US President Trump then spoke in Ankara, in a relatively short but packed interview where he said the ceasefire with Iran is over “I think” and specifically on the MoU said, “think it is over”. An update that sparked a marked and continuing move higher in energy, with crude firmer by over 6% and Dutch TTF by over 5%. As such, yields across the curve have jumped, benefiting the short-end most, and curves are bear-flattening globally, though with the US belly faring almost the same as the short-end. USTs down to a 108-29 base, lower by 13 ticks. We now look to the US 10yr note auction after Tuesday’s 3yr, and thereafter Fed Minutes for June, which will be scoured for further insight into how the first meeting led by Warsh went and how any discussions/disagreements among the board were presented; with particular reference to any mention around Warsh’s view on forward guidance. Bunds went down to around 125.30 following the above energy action and Trump language, lower by over 80 ticks. Energy-related action aside, the main focus point was a dismal first tap of a 2036 Bund, drawing a b/c of just 1.03x. Results of this sent Bunds lower by nearly 10 ticks, to a 125.23 base. Gilts opened lower by 57 ticks, acknowledging the US waiver removal yesterday and the tit-for-tat strikes overnight. Thereafter, as Trump spoke, further downside was seen, sending Gilts lower by 130 ticks in total to an 87.16 base. As usual, Gilts underperform amid periods of pronounced energy upside given the sensitivity of the UK market to global benchmarks. Germany sold EUR 3.902bln vs exp. EUR 6bln 3.00% 2036 Bund: b/c 1.03x, average yield 3.09%, retention 35%. UK sold GBP 1.5bln 0.125% 2028 Treasury Gilts via Tender: b/c 4.97x (prev. 4.28x), average yield 3.989% (prev. 4.219%), tail (prev. 0.3bps). Jefferies (JEF) to sell EUR-denominated 7yr noted; guidance seen +175bps to MS. Spain has reportedly proposed the EU issue an annual EUR 850bln in bonds to save countries billions of euros in interest costs, POLITICO reported. Australia sold AUD 900mln 4.25% 2036 AGBs: b/c 4.55x (prev. 3.86x), average yield 4.8745% (prev. 4.9735%). Commodities Following Iran’s decision to hit Saudi and Qatari tankers, the US struck various sites in Iran. As a result, Iran then hit regional partners, including Bahrain and Kuwait. US President Trump, who was speaking at the NATO Summit in Ankara, berated the Iranian regime. He stated that it is a waste of time dealing with Iran, and ultimately stated that he thinks the ceasefire and MoU is “over”. The mention of he “thinks”, gives the US a little bit of optionality on whether the deal is actually over; he stated that he will allow US negotiators to continue to talk. Nonetheless, the risks of a wider escalation remain; markets now await clarification on whether the MoU has officially ended, the Iranian response and also how Qatari/Pakistani mediators react to the comments made by Trump. WTI and Brent started the European session with gains in excess of 2%, but surged higher following the Trump comments; currently +5.6%. WTI Aug’26 holds at the top end of a USD 71.75-75.30/bbl range, whilst Brent Sept’26 sits near peaks of USD 75.44-79.26/bbl range. The latter remains well below the levels seen following the initial signing of the Islamabad MoU (USD 85/bbl), which signals some hopes that a) the Strait will remain open, b) the current MoU holds. On this theme, markets remain in backwardation, with front-month Brent prices still higher than second-month; should this flip, it would indicate that traders expect another large-scale supply glut. Spot gold (-1.2%) trades lower this morning, and at the bottom end of a USD 4,050-4,133/oz range. Much of the pressure came following the Trump comments, given the USD strength and the inflationary implications of the ceasefire being over. Base metals are broadly lower, given the risk-tone; 3M LME Copper trades at USD 13,190-13,396/t range. Kuwait’s Ministry of Electricity said power lines were damaged by shrapnel in recent attacks. European Commission, on the ETS revision, said they are still considering how and whether to add international carbon credits. Revision will include permanent domestic carbon removal. Will propose further investment. Russia’s Gazprom said Ukraine attacked facilities of gas exports to Turkey; supplies not affected. China reportedly lifts restrictions on refined fuel exports for the rest of July, according to sources. China purchases at least 5 more US soybean cargoes, Bloomberg reported. Japan aluminium premiums for Jul-Sep shipment set at USD 395/t, +12-13% Q/Q. US Private Inventory Data (bbls): Crude -0.399mln (exp. -1.5mln), Distillates -1.801mln (exp. +1mln), Gasoline -2.929mln (exp. -1.55mln), Cushing -0.069mln. Trade/Tariffs Spanish PM Spokesperson said the trade comments from US President Trump are business as usual. USTR Greer said Canada and Mexico have not lived up to everything. Geopolitics: Iran Commentary Iranian Parliament Speaker Ghalibaf said the US has violated major parts of the MoU, citing US attacks on southern Iran, reinstating oil sanctions and threats of further strikes as MoU violations. Iran's Foreign Ministry states that the US activity overnight has "rendered important and fundamental parts of the Memorandum of Understanding on the End of the War ineffective". Iranian President Pezeshkian said the US, whether as World Cup host or in its foreign policy, manipulates the rules and resorts to deception, and that Iran rejects such tactics. Iran's top joint miliary command said Iran will give a crushing response to America's aggression and terrorist action, and under no circumstances will they allow them to interfere in the affairs of the Strait of Hormuz and its management. Advisor to Iran's Supreme Leader said US President Trump intends to attack again and we are fully prepared. Iran's Foreign Ministry condemns the US Treasury's move to revoke the temporary suspension of sanctions on Iranian oil sales, will take any measure it deems necessary to safeguard its interests and national security. Iran holds the US government responsible for the consequences of the breach of the Memorandum of Understanding. Overnight Attacks Several explosions have been heard in Bushehr, Iran, according to Mehr news; Mehr's journalist on Kharg Island denies reported of an attack on Kharg, despite some reported of an incident being published. Elsewhere, sirens were reported in Bahrain once again. Renewed explosions sounds heard around Iran's Qeshm and Sirik, Mehr reported. Iran's army said it targeted the Sheikh Isa Base in Bahrain and warns of more attacks if the US repeats strikes on Iran, Mehr reported. Iran's IRGC said that, in response to the US aggression, they hit 85 important US military installations in Port Salman, Bahrain's 5th Maritime Zone and Kuwait's Ali Salem Air Base. Iran's IRGC said they downed a US Mq9 drone in the south of Iran, Press TV reported. Iran fires several anti-ship missiles and drones towards US Navy warships in the Sea of Oman, Fars reported citing the Middle East Spectator. A US official said the strike on Iran was a punitive action, not a proportional response, and that the operation will not end in the short term, CNN reported. US Commentary US President Trump said the Iran ceasefire is over "I think"; as far as I am concerned, it is a waste of time dealing with Iran. On the MoU, "think it is over". Adds, "I do not want to deal with Iran", they are a "bunch of liars". US President Trump said (on Iran) he will allow US negotiators to continue to talk if they want. But, "I think this is a waste of time". US President Trump said have had some great meetings; attacked very powerfully against Iran last night. Have wasted a lot of time with Iran. Iran does not know what it is doing. Iran shot rockets at the ships, which is why the US shot back. Iran is a "dirty" player, "are scum". US President Trump approved the Iran strike plan and ordered it while in Turkey, a US official tells Axios' Ravid; the official said it is still unclear how long the strikes are going to continue. US Secretary of Defence Hegseth has cancelled his visit to Israel, N12/Ynet report. Others Turkish President Erdogan said Europe must take more responsibility when it comes to NATO. US President Trump said China is attempting to takeover the Panama Canal, will not let this happen. China has been treating the US right. Big fan of Chinese President Xi. Ukrainian Armed Forces said Kyiv is under missile attack. Israeli fighter jets carried out attacks in Barachit and Beit Yahoun in southern Lebanon. A Pakistani Boeing (BA) plane flying to Karachi has crashed, with sources stating the plane was mistakenly targeted by the US, IRIB reported. Chevron’s (CVX) Yasa Polaris oil tanker, used for CPC shipments, was attacked by drones off Russia’s Black Sea coast, according to sources. Russia’s Gazprom said Ukraine attacked facilities of gas exports to Turkey; supplies not affected. Ukraine's Military said it struck two oil refineries, six tankers, bridges and the Borisoglebsk airfield; AIF-NK oil refinery in Nizhny Kamsk was also damaged. US Event Calendar 7:00 am: United States Jul 3 MBA Mortgage Applications, prior 0% 10:00 am: United States May F Wholesale Inventories MoM, est. 0.3%, prior 0.3% 2:00 pm: United States FOMC Meeting Minutes DB's Jim Reid concludes the overnight wrap Asian equity markets are largely lower this morning as investors digest a significant escalation in US-Iran tensions overnight. American forces launched strikes against more than 80 targets in Iran, including air defence systems, command-and-control networks, coastal radar installations, and anti-ship missile capabilities, in response to recent attacks on commercial shipping in the Strait of Hormuz. The strikes were accompanied by the US Treasury’s decision to revoke a waiver that had allowed new Iranian oil sales, a move that threatens to undermine the fragile US-Iran interim peace agreement reached last month. The developments have reignited concerns about energy supplies and geopolitical risk, helping Brent crude rise more than 2% and trade near $76/bbl this morning after rising more than 5% yesterday, driven by the fresh attacks on ships in the Strait of Hormuz, with Monday seeing the most incidents since the US-Iran interim agreement came into effect on June 17. Iran has condemned both measures as violations of the agreement and vowed a response, raising concerns that the fragile peace process reached last month could unravel before negotiations on a permanent settlement are completed. While US officials have stressed that talks towards a longer-term accord continue, the latest escalation represents the most serious test yet for the ceasefire. Against this backdrop, risk sentiment across Asia is weak but not as much as you may have imagined given the attacks. S&P, Nasdaq and Stoxx futures are all pretty much flat with the rest of Asia down or up depending on which side of the tech stack they sit on. The KOSPI losses have accelerated as I'm typing, currently down -5.57% in what seem very fast markets with the Nikkei -0.96%, and the S&P/ASX 200 down -0.49%. In contrast, mainland Chinese equities are firmer ahead of tomorrow’s June inflation report, with the CSI 300 (+0.61%) and Shanghai Composite (+0.52%) moderately higher, whilst the Hang Seng (+2.38%) is outperforming as technology stocks there recover. However, they are just reopening after their lunchtime break as I type so given the vol elsewhere this could change by the time you read.  Ahead of the overnight moves, markets struggled to gain traction yesterday, as the jump in oil prices revived familiar fears about stagflation. That led to clear pain for US Treasuries. For instance, the 10yr yield was up +8.2bps on the day to 4.55%, whilst the 30yr yield (+7.13bps) closed above 5% for the first time in nearly a month, at 5.06%. And on top of the oil moves, those trends got a fresh push from the NY Fed’s latest Survey of Consumer Expectations. It showed 1yr inflation expectations up to 3.7%, the highest since September 2023, whilst 3yr expectations were up to 3.3%, the highest since June 2022. So that leant in a hawkish direction and meant investors dialled up their expectations for Fed rate hikes, with the amount priced by the December meeting up +5.1bps on the day to 34bps. As all that was happening, there wasn’t much respite for equities either, as chipmakers saw a renewed slump that took the Philly semiconductor index (-4.65%) to its lowest in nearly a month. Indeed, the index is now -15.95% beneath its highs in mid-June, after just posting its best quarter ever in Q2. To be fair it wasn’t all bad news, and US equities saw a rotation into defensive sectors. Energy (+3.02%), healthcare (+1.55%), consumer staples (+0.99%) and utilities (+0.91%) all had a strong performance. Moreover, a majority of the S&P 500’s constituents were still higher, with 283 companies rising on the day. But the chip declines still dragged on the overall performance, with the S&P 500 ultimately down -0.45%.   Over in Europe, political developments were in focus yesterday in both France and the UK. In France, Marine Le Pen said she’d be a candidate in the 2027 French presidential election, after appeal judges shortened a ban on her running for office. The first round isn’t happening until April 18, with the run-off then two weeks later on May 2, but today’s news means that the outlines of the campaign are coming into view.  Meanwhile in the UK, Reform UK leader Nigel Farage resigned as an MP, forcing a by-election that Farage himself is going to stand in. His resignation follows questions around a £5m gift from a Reform UK donor, which had triggered a parliamentary standards probe. Moreover, last weekend the Sunday Times reported that he hadn’t declared benefits from a long-time ally, George Cottrell. So with Farage under growing scrutiny, calling a by-election was seen as a way for him to regain momentum, particularly after Reform UK underperformed polls in the recent Makerfield by-election won by Andy Burnham. However, all the main political parties have said they won't stand a candidate, effectively calling it a political charade. So it'll be interesting to see if it backfires. Tomorrow will also see nominations open for the Labour leadership contest that will decide the next PM, although former Greater Manchester Mayor Andy Burnham remains the only declared candidate.   Amidst all the political developments, there wasn’t too much of a market reaction in Europe, with bond yields moving higher across the board because of the oil price rise. So yields on 10yr bunds (+4.6bps), OATs (+5.6bps) and BTPs (+5.8bps) all moved higher on the day, with the STOXX 600 (-0.65%) also falling back as well.   The NATO leaders’ summit will continue for a second day today, with President Trump saying yesterday that the US “could remove all our soldiers out of Europe” and reiterated his desire for Greenland to be under US control. Otherwise, there were multiple reports of defence industry deals that had been agreed, with Bloomberg reporting that was over $50bn.   Shifting back to Asia to close, and the Reserve Bank of New Zealand (RBNZ) has implemented its first key interest rate hike in three years, raising the official cash rate to 2.50% from 2.25%. This move, which was expected, signals the central bank's intention to transition to a less stimulatory monetary setting in an effort to curb inflationary pressures. The decision follows a split vote at the bank's previous meeting in May, where Governor Anna Breman had used her casting vote to maintain the cash rate. Following the decision, the New Zealand dollar strengthened by +0.42% to just above 57 cents against the US dollar, with the yield on the policy-sensitive two-year notes increasing by +4.5bps, now trading at 3.37%, amidst reinforced expectations for additional rate hikes this year. Looking at the day ahead, the highlights will include the minutes of the FOMC’s June meeting, along with remarks from the ECB’s Kocher, Moulin, Nagel and Dolenc. Otherwise there isn’t much data, although we’ll get Sweden’s CPI for June, France’s current account balance for May, and US consumer credit for May. Tyler Durden Wed, 07/08/2026 - 08:32

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    Futures Slide, Oil Jumps After Trump Declares Iran Ceasefire Over Markets are on the backfoot this morning with equity futures and macro credit under pressure, bond yields spiking, the USD higher, and oil jumping after President Trump thrust geopolitical risks back i

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Opening summary: Iran claims attacks on strait of Hormuz ships amid fresh US strikes Welcome to our live coverage of the latest developments in the Middle East crisis. Iran attacked a tanker in the strait of Hormuz early on Tuesday, forcing its crew to abandon the ship, as Yemen’s Iran-backed Houthis announced they were imposing an immediate maritime blockade of Saudi Arabia in the Red Sea after the two sides traded fire last week for the first time in years.

A Houthi official said the Bab al-Mandeb strait – at the southern end of the Red Sea, through which about 12% of the world’s trade usually passes – would be closed to the Saudis in response to the kingdom’s “unjust blockade on Yemenis for over 10 years”.

Saudi Arabia said it would take “all necessary measures to protect its vessels in accordance with international law”. A 10 consecutive night of US airstrikes has not compelled Tehran to loosen its grip on the strait of Hormuz, a vital route for global energy supplies.

But even as Iran’s president said the country had returned “full-scale war”, the Iranian interior minister travelled to Pakistan – a key mediator in the conflict – for talks. In key developments: The latest US strikes came hours after Donald Trump said Iran would pay “many times over” for killing US soldiers after multiple service members were killed in action over the weekend.

A tanker came under attack early Tuesday in the Hormuz strait off Oman, forcing the crew to abandon the vessel, the British military’s United Kingdom Maritime Trade Operations centre said. Iran’s Revolutionary Guards claimed the attack as well as two other attacks on ships in the waterway on Monday.

The US military’s Central Command said its latest airstrikes were to “degrade” Iran’s ability to attack commercial shipping in the strait and included hitting military command centres and missile and drone launch sites. Iranian media reported strikes in parts of the country including Bandar Abbas, Tabriz and Bushehr, home to the country’s only operational civilian nuclear power.

Iran’s launched attacks in response against Bahrain, Kuwait and Jordan, which all host US forces. Oil prices softened after hitting their highest levels in more than a month in the previous session. Brent crude futures eased 0.4% to $88.87 a barrel by 0052 GMT on Tuesday while US West Texas Intermediate crude for September delivery was steady at $82.

47 a barrel. Democrats have seized on the deaths of three US troops killed in Iranian strikes to urge Trump to urgently reverse his resumption of the war with Iran amid widespread anxiety over climbing casualties. The Lebanese army began taking charge of security in three southern villages, the US said, as a deal to secure an Israeli withdrawal from southern Lebanon and the disarmament of Hezbollah faced its first test on the ground.

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US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.

The US military described the action as a precision operation, while reports note the ship was stationary at the time.

Location: Strait of Hormuz
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Over the weekend, after exchanges where the US hit bridges and a desalination plant in Iran (reportedly repaired very quickly) and Iran’s response included hitting a much more important desalination and power plant in Kuwait and pounding important US operations in Jordan, the US attacks fell way back one night and CENTCOM and even Trump were quiet.

Some speculated that more Gulf states were denying the US the use of their airspace and the US was having to make a major regrouping. However, the US resumed strikes last night, with the pretext that the US had suffered two more military deaths on top of two just reported.

1 Trump had promised intensified strikes beginning more or less today if Iran did not return to negotiations, as in capitulate. And as many noted, the US had escalated last week, albeit not to the level of attacks during the initial phase of the war, not just with the number of strikes but also the targeting: the aforementioned desalination plant, bridges, too close for comfort to the Bushehr nuclear plant2 and to a nuclear site under development at Darkhovin.

Many have argued that the latest round of strikes look like shaping attacks in preparation for a ground operation, which pretty much everyone with even a modicum of military knowledge sees as insane.3 Daniel Davis has also mentioned in passing that despite all the noise about using ground forces and other signs of a buildup, such as more refueling tankers flying to Jordan, that Trump was shaken by the near-disaster at Isfahan, where a supposed rescue of a downed pilot resulted in the loss of more air assets than in any single engagement since Vietnam.

Many experts have contended that that was an actual operation, a botched attempt to remove some of Iran’s “nuclear dust.” However, Scott Ritter may have squared that circle. See his brief clip starting at 11:55: From a lightly-edited machine transcript: Jawaid: Scott Ritter thinks that Israeli lap dog Trump will soon launch a ground invasion of Iran, but he will fail miserably.

Also, this is something Iran has been wanting Trump to commit to for a long time. Ritter: There’s a a mission called a raid. Um, and I, you know, we already had US troops fighting on the ground. We did a raid to rescue a pilot. We were in limited ground combat operations there.

I think there’s a high potential that the US will conduct a raid here and there because that’s a that’s a a very specific task. A raid is is the only military mission where we plan to retreat. You know, every other military mission there’s no plan. You commit and you go, but a raid is in and out.

So maybe we can do a raid, but the idea that we’re going to land in seize territory, there’s zero chance that will happen because there’s zero chance of success. Now admittedly, if pilot rescue came about as the result of the botched operation in Isfahan, that would be debatable as a raid.

Even though the intent again was to retreat, the US would have had to stage equipment for the removal and transport of nuclear material, so there would be a short-lived occupation of terrain and not just a fast snatch and grab, as with Maduro. Nevertheless, the US military may not be totally suicidal, so the plan may be for a fast landing to inflict some sort of concrete form of damage that cannot be well inflicted from the air and then to decamp.

This segment also includes a very informative explanation of how important the operations in Jordan are to the US, and how the Iran intend is destroy bases so that the US has to retreat to Israel and then Iran will proceed forcefully against the remaining assets there.

We’ll soon turn to updates, but to start with some bigger picture considerations: it is disconcerting to see how many commentators resort to the trope that neither side can prevail on the battlefield, that they will in the end negotiate an outcome. As we pointed out, a study of modern wars found that more than half did not.

The distrust between the two sides, which has now reached the level of mutual loathing as a result of the fast breakdown of the already likely to fail Memorandum of Understanding (MOU), means any “deal” is vanishingly unlikely. Iran knew even before it entered into talks that the US and Israel intended to execute a “mowing the lawn” strategy, of keeping crippling sanctions in place and beating up on Iran every so often to weaken it and hopefully create severe internal divisions that would trigger an overthrow or balkanization.

Even if Iran’s 47 year record of taking severe punishment and surviving says this plot would probably fail, Iran had been preparing since the Iraq War for the US and Israel to launch a major campaign. After the illegal launch, the assassination of a major part of Iran’s leadership, as well as war crimes exemplified by the massacre of school children in Minab, the nation is highly unified around inflicting a decisive defeat on the US, so that it won’t even think about military action against Iran for at least a decade.

We were far from alone in making that case early in the war and Iran’s resolve has only stiffened as it can see how it has weakened the US while Iran has learned from combat and claims to have even bigger inventories of key weapons than it had at the start of the war.

Critically, Iranian leaders have said, bluntly, that negotiating with the US is not just pointless but also demeaning. Consider the germane parts of a recent statement by the Supreme Leader Mojtaba Khamenei,4 as summarized at PressTV: - Leader said the United States had once again violated the memorandum of understanding signed between the presidents of Iran and the US, proving that the signature of the American president is worthless and unreliable.

- He said bullying, hegemonic ambition, and savagery are inseparable characteristics of the United States and that Washington had once again revealed its true, unmasked face to the world. - He described the latest developments – US attacks against southern Iran, mainly targeting the civilian infrastructure – as further evidence of America’s deceitfulness, irrationality, unreliability, and wickedness.

- Leader said the United States is seeking to ignite further war despite facing heavier costs and greater disgrace. - He warned that the Iranian nation and the Resistance Front have unforgettable lessons for the United States, adding that the bravery of Islamic resistance fighters and the courageous people of southern Iran have already demonstrated examples of those lessons.

However, Araghchi subsequently gave an interview which can be read as pushing back against the Supreme Leader:5 Iran’s Foreign Minister Abbas Araghchi says that negotiations with the U.S. should be pursued even if the chances of success are only 10 percent, further highlighting disagreements between Iran’s political and military echelons.

“I am the Foreign Minister for the interests of… pic.twitter.com/uW1DzcfRhG — Ariel Oseran أريئل أوسيران (@ariel_oseran) July 19, 2026 Keep in mind also that China is still bleating about the need to settle the conflict and Pakistan and Qatar (among others) are also pressing for a resumption of the talks, so Araghchi as Foreign Minister has to keep the idea in play, irrespective of whether he privately places much stock in the idea.

6 And there is another way to read Araghchi’s talk: So they wanted to manufacture a clean record of “we exhausted every diplomatic option." Once that record existed, the hardliners with Mojtaba could shut the process down without looking like the ones who refused talks.

Moderates who pushed the channel now own the failure, and… https://t.co/Y63yYJVaEZ — Vonbury Research (@VonburyResearch) July 19, 2026 Kinetic action seems likely to continue to dominate: ADVISOR TO IRANIAN SUPREME LEADER, MOHSEN REZAEI, SAYING: “I declare it is over.

Both negotiation and war are over. If in the next two or three days the Americans continue the war, we will enter a phase of complete offense and destruction.”#Iran #IranWar pic.twitter.com/1M3A1pboH9 — Iran Now – WANA (@WANA_Iran) July 18, 2026 Robert Pape also seems confident that US escalation will continue7.

I found this discussion noteworthy because Andrew Neil strongly resisted the idea that there would be no negotiated ending and also found it inconceivable that Iran could become, as Pape has argued, the fourth world power. In other words, Neil seems to epitomize a set of normally pretty smart people who find it hard to see where the direction of travel is going because those outcomes so conflict with their priors: From a lightly cleaned up machine transcript: Pape: This is not what’s coming in the next few weeks likely.

What’s much more likely is he’s [Trump’s] going to do the close blockade and if he can then use the southern corridor with that close blockade to reopen the Strait, he’ll he’ll be probably satisfied with that. Very unlikely that’s going to work and that’s why you’ve got the 82nd Airborne and the Marines there to push back further.

Now, I’m not saying this is going to work, Andrew…. Neil: So, I’ve got to ask you some questions in this because I’m unclear. Do you think that the of the limited options President Trump now has, that escalation as you describe it is the most likely?

Pape: Yes. Neil: And that escalation will begin with a much more aggressive, more comprehensive a naval blockade of the Strait of Hormuz with the possibility of ground incursion on the northern side of the straight in Iranian territory? Pape: Yes. Yes, and it’s our and and the first part has already started this week.

So, so you’re already seeing in fact last week was the beginning of the air suppression campaign for this week. And as President Trump laid out the bombing schedule last night, the reason he will, if he if this keeps going forward, okay, just keep saying that if, he’s going to want to take out things like electric power and bridges is because he’s going to want to try to suppress as much of Iran’s military defenses as he can as he goes forward here.

And the military is giving him the plans for doing that. One place where I differ with Pape is that he posits that Congress might get out of bed in six months and Do Something to check Trump then. To again invoke Stein’s Law, if something cannot continue, it will stop.

The US and Israel can of course carry on with terrorism within Iran, such as assassinations and cyber attacks. But the level of weapons depletion and on current trajectories, shortly-arriving fuel shortages, seems very likely to put a choke chain on US aggression soon.

From Larry Johnson in The US Faces a Strategic Crisis with Iran…The Rapid Depletion of US Battlefield Missiles:8 The tables below are based on the most recent publicly available analyses from CSIS, the Payne Institute, and major media outlets (as of mid-2026), and provide a current (overly optimistic in my opinon) estimate for US inventory levels of these key weapons systems.

Please note that actual inventories are classified; these are informed estimates derived from DOD budget documents, procurement records, and reported expenditures during Operation Epic Fury (the US-Israeli war with Iran). Air Defense Missiles Anti-Radiation / SEAD Long-Range Strike (Ground & Sea-Launched) Missiles These are not just the numbers currently in the hands of US CENTCOM (i.

e., the US military command in charge of the war against Iran), these are the total numbers available to all of the US military commands. If these missiles are allocated evenly to the other two critical commands — i.e., EUCOM (European Command) and PACOM (Pacific Command) — then you begin to understand the gravity of this deficit.

Let’s take the case of the Tomahawk missile. Let’s assume there are 3,000 left (I believe that is a generous over estimate) and the remaining number are divided evenly among CENTCOM, EUCOM and PACOM… That means each command gets 1,000. Does anyone want to argue that in the event of a hot war with Russia or China that EUCOM and PACOM respectively would be able to sustain combat operations for more than four weeks?

Hell, CENTCOM fired 850 of them during the first four weeks of EPIC FURY. Here’s another major problem: All eight missile systems rely on rare earth elements — there are no exceptions among modern US precision-guided weapons. The dependence is nearly universal because rare earth permanent magnets are irreplaceable for the high-performance actuators, guidance motors, and seeker gimbals that make these weapons accurate.

And who controls the supply chain of these rare earth minerals? China!… The supply chain isn’t just about mining — it’s about processing, separation, and magnet manufacturing, which China controls: - Mining: China ~60% of global rare earth oxide production - Refining/Separation: China ~91% - Sintered NdFeB Magnet Manufacturing: China **~94%** Now to updates.

From Aljazeera’s live feed: - A vessel is on fire in the Strait of Hormuz after being hit by a projectile, forcing the crew to abandon ship. They were later rescued by a tugboat. - One person has been killed and several others wounded after the US military attacked the Iranian city of Tabriz in northwestern Iran.

The entries in the feed include ones describing how Mr. Market is taking cheer from the Iran Foreign Ministry admitting they are getting communiques from intermediaries and reviewing them as if they originated from the US. Recall that the negotiators have often developed ideas and tried to sell both sides on them.

Bloomberg’s Javier Blas, who has been a consistent seller of lower oil prices, is refreshingly precise about Iran not saying either way as to whether the missives were from the US or just the negotiators operating on their own: Iran has received “some proposals” from unspecified mediators regarding the war with the US, Iranian Foreign Ministry Spokesman Esmail Baghaei says in press conference, without elaborating.

— Javier Blas (@JavierBlas) July 20, 2026 Contrast that with the Aljazeera account: Oil prices ease after Iran says US contacts continuing through mediators Oil prices have scaled back their gains after hitting their highest in a month after Iran said diplomatic exchanges with the US are ongoing via mediators despite renewed conflict in the Middle East.

Grr. Another Aljazeera live feed entry: Iran ‘counting down the minutes’ for US ground invasion [Today’s Iran war post launched more or less complete. I will be off duty for a while. If there are any updates, they will come in the comment section later] Foreign Ministry spokesperson Esmaeil Baghaei says the United States will face “consequences of any adventure” to seize Kharg Island in southern Iran.

He added there are people in Iran’s leadership “counting down the minutes to welcome” US forces in any ground invasion. Kharg is the heart of Iran’s oil industry. It sits 55km (34 miles) off Iran’s coast in Bushehr province. President Trump has repeatedly threatened to seize the territory during the war.

A raid on Kharg could fit Ritter’s raid scenario, with the US busting things up and then leaving.9 But experts have pointed out that Iran has at least four other export routes. Kharg is the most efficient but losing it while being repaired would be inconvenient as opposed to a fatal blow.

From Bloomberg’s landing page: From US Bombs Iran for Ninth Day as Standoff Over Hormuz Deepens: The US conducted a ninth straight day of airstrikes on Iran, trying to force the Islamic Republic to stop shipping attacks and reopen the Strait of Hormuz.

The American military bombed military targets and communications networks in a three-hour operation ending around 5:30 a.m. Iranian time on Monday. Iran continued to attack US bases in the likes of Kuwait, Jordan, Bahrain and Iraq. The standoff shows no sign of easing, with Iran refusing to relent over Hormuz and insisting it has a right to manage traffic through the waterway.

Energy prices have jumped on the worsening hostilities. Brent crude oil rose to above $90 a barrel for the first time in more than five weeks in early trading on Monday. US gasoline prices climbed back over the $4-a-gallon mark, potentially hurting President Donald Trump and his Republican party ahead of midterm elections in November… Hormuz Shipping Traffic Slumps as US-Iran Hostilities Worsen The tit-for-tat attacks are getting deadlier….

Shipping volumes have slumped and the number of tankers and other vessels going through Hormuz is roughly down to the same level from the height of the conflict in March and early April… US President Donald Trump warned Iran last week he’d escalate airstrikes and widen the scope of targets until it backed down… Kuwait continues to experience some of the worst attacks from Iran.

Over the weekend, Kuwait’s main state energy company said an unspecified site sustained “significant material losses,” causing its evacuation and a number of injuries, while two power and desalination plants have been hit in recent days. And from Hormuz Traffic Near Standstill as US-Iran Hostilities Escalate: - Visible traffic through the Strait of Hormuz appeared at a near standstill Monday after Iran targeted vessels in the narrow waterway.

- A Marshall Islands-flagged bulk carrier and a liquefied petroleum gas carrier appeared to approach the strait, with the bulk carrier turning off its transponder while approaching. - The targeting of vessels will likely raise fresh concerns over the safety of ships transiting Hormuz, which could deepen disruptions to energy flows from the Persian Gulf to global customers.

Indirectly importance of US operations in Jordan, the lead story in the Wall Street Journal is Jordan Becomes New Flashpoint in U.S.-Iran War as Troop Deaths Rise. But it fails to set forth any of the juicy details that Janta Ka presents. This is the thin strategic gruel offered: For years, Jordan sought to play down its close military and intelligence cooperation with the U.

S. The U.S. aircraft that carried out strikes on Islamic State from a base in Jordan during the American war with the militants didn’t advertise the country they were operating from. But Jordan’s role is now becoming too prominent to obscure. Jordan has become an attractive location for U.

S. armed forces since it is among the most permissive in the Arab world when it comes to allowing the U.S. to operate from its bases. A bit more on Jordan: The view from Tehran. “The increased focus on Jordan may serve as part of Iran’s preparation and testing of operational concepts for more intense and precise strikes against Israel in later stages of the conflict.

Qatar and Saudi Arabia—have at times sought to impose limits… — Policy Tensor (@policytensor) July 20, 2026 By contrast, the House of Saud published a remarkably revealing document (hat tip Eugene Linden), Iran Struck Prince Sultan and No One Was Required to Say So: Iranian ballistic missiles struck Prince Sultan Air Base in Al-Kharj on July 18, wounding twelve US service members — two critically — and hitting KC-135 Stratotankers on the flight line while a second rotation was still climbing out.

Saudi Arabia’s Civil Defense Authority cleared the sirens six minutes later without naming the weapon, the origin, or the damage, and neither Riyadh nor Washington has issued an official statement since. The strike was the first direct Iranian attack on Saudi territory in approximately four months, a gap during which the IRGC struck Kuwait, Bahrain, Jordan, Qatar, and the UAE while conspicuously sparing the Kingdom.

Its return to PSAB — confirmed by a US official to Axios, corroborated by satellite imagery, and detailed by Air & Space Forces Magazine — ended whatever territorial immunity Saudi Arabia believed it still possessed. But the more consequential development is not the strike itself.

It is the silence that followed, and the institutional architecture that sustains it: a three-party managed ambiguity in which Iran, Saudi Arabia, and CENTCOM each benefit from leaving the damage question unanswered, because answering it would force a public reckoning with a PAC-3 reserve that is approaching a ceiling none of them can afford to name.

The strike was confirmed by a US official cited by Axios as “the first time the Islamic Republic has directly attacked the kingdom in four months” — a description that the State Department, the Pentagon, and the Saudi Ministry of Defence have each declined to repeat on the record.

Air & Space Forces Magazine, drawing on multiple US military sources, reported at least twelve wounded and multiple Stratotankers damaged on the tarmac. Open-source satellite imagery corroborated the impact site within the base perimeter. Iran’s state broadcaster supplied what no government would.

The missiles were launched “moments after American refueling planes took off,” a detail that only makes sense if the IRGC had real-time ISR coverage of PSAB’s tanker rotation schedule. The aircraft hit were those that remained on the flight line after the airborne pair departed — the timing was deliberate, and the targeting message was not about maximising destruction but about demonstrating that PSAB’s daily operational patterns are watched, clocked, and within reach….

Riyadh cannot confirm the strike without confronting two questions it has spent the war avoiding. The first is defensive: if Iranian missiles hit PSAB and wounded US personnel, the Sakhir Declaration — the mutual defence framework Saudi Arabia negotiated with Washington — becomes the operative instrument, and invoking it requires publicly admitting what the Arab Center DC described as the core strategic dilemma: “the PAC-3 architecture is functionally exhausted.

” The second is economic. Aramco’s August Arab Light OSP already dropped $11 month-on-month to $1.50 per barrel below Oman/Dubai, the largest such cut in over two decades and the lowest since June 2020. Confirming that Iranian ballistic missiles are landing on military installations 77 kilometres south of the capital forces a sovereign-risk reassessment that Riyadh’s fiscal position — a Q1 deficit of SAR 125.

7 billion, with Aramco’s free cash flow at 0.85 times its quarterly dividend — is not structured to absorb…. Washington faces a different but parallel constraint. Confirming the strike means confirming that 2,300 US service members at PSAB are taking casualties at a base where 43 US warplanes have been grounded since Saudi Arabia’s Operation Project Freedom in May 2026.

CENTCOM cannot describe a defensive engagement at PSAB without also describing the legal anomaly: the 1977 USMTM memorandum governing US presence is not a Status of Forces Agreement, and Project Freedom severed the operational relationship between American air power and Saudi host-nation authority.

An official statement would invite the Congressional question that the Pentagon’s communications strategy is built to defer: why are American troops still at a base where their aircraft have been grounded by the host nation, absorbing Iranian fire under a legal framework that was designed for peacetime advisory missions?

Please read this article in full. It contains remarkable operational detail. It is over my pay grade as to why it was published, but it seems to suggest considerable unhappiness at Riyadh. Due to the length of this post, we have skipped over the fact that Ansar Allah seems just about to threaten or actually close the Bab el-Mandeb strait: 🚨 BREAKING 🇾🇪 YEMEN’S HOUTHI FORCES WILL MAKE A “HUGE” ANNOUNCEMENT TODAY AT 8:30 AM ET.

REPORTS EXPECT THEM TO ANNOUNCE A BLOCKADE OF THE BAB EL-MANDEB STRAIT. TOGETHER WITH THE STRAIT OF HORMUZ, THESE TWO CHOKEPOINTS HANDLE OVER 25% OF GLOBAL SEABORNE OIL TRADE. IF TRUE,… pic.twitter.com/yjavHpPKOi — Wimar.X (@DefiWimar) July 20, 2026 This does not look terribly negotiation-receptive.

And some additional sightings from Twitter: Israelis have never felt less secure. 64% are unhappy with how the endless wars have been run. 73% are upset at how there has been no real investigation of October 7. 73% of the public also feel the government has not dealt well with the rise in crime.

No one wins from these… https://t.co/4OjhLUD14O — Shaiel Ben-Ephraim (@academic_la) July 19, 2026 These remarks would seem to negate happy thinking about negotiations: ⚡️⭕️ Iran's Foreign Ministry spokesperson Esmaeil Baghaei says Tehran is determined to exercise sovereignty over the Strait of Hormuz through measures already taken, and states the US failed to fulfill its commitments under a memorandum of understanding, so Iran will not fulfill… — Middle East Observer (@ME_Observer_) July 20, 2026 The average price for a gallon of gas hit $4, the second time it has reached that benchmark since the war in Iran disrupted global oil supplies https://t.

co/Cg8rE3XnJ7 pic.twitter.com/3UqHfwU4sc — CNN (@CNN) July 20, 2026 Done for today! See you tomorrow! ____ 1 What kind of admission of weakness is this? Part of the job description of a service member is that they may wind up dying for their country.

Admittedly, the US is widely suspected of suffering a much higher body count and covering that up. But this show of extreme sensitivity to losses again shows the US has a glass jaw. 2 Nima also discusses at some length at the top of a new talk with Larry Johnson why they look misguided.

He knows Bandar Abbas well, which is where the US has been hitting bridges so as to isolate it. Nima explains and even shows pictures that the bridges exist only to cope with seasonal floods for a few months a year. Those sluices are dry now, so Bandar Abbas is easily accessible by all sorts of routes.

3 🚨 BREAKING: Russia has evacuated 198 of its personnel from the Bushehr Nuclear Power Plant in Iran. It is believed that the plant could be targeted again. pic.twitter.com/lPoQB05qgo — GBC (@GBC_Press) July 17, 2026 4 A new trope in the US-backing commentary community is to depict the new Supreme Leader as a figurehead, which is easy to make stick given his lack of public appearances (I suspect that among other things, he is having facial reconstruction; that can take an extremely long time since procedures are done serially with healing time in between).

I believe it was on a recent Dialogue Works talk where Professor Marandi debunked one popular claim, that he IRGC was operating on its own authority. Professor Marandi described the governing structure and said the military (both the regular forces and the Guards) needed approval of the Supreme Leader for its operations.

Having said that, I have commented that Iran seems to have a Japanese-style decision-making structure, as in more bottoms-up than the West. That results in more time to make decisions but much more internal cohesion when they are reached, since those at lower levels would be able to voice concerns and make suggestions.

Upon reflection, this would make sense given that Iran adopted its “mosaic” structure of extreme decentralization so as to allow it to function well even when the leadership was killed or incommunicado, as we saw at the onset of the current conflict.

In the Japanese model, decisions are effectively made at the senior-middle level ranks, which does tend result in the board and CEO being ceremonial. But the top level can and does say no, or effectively does so by asking probing questions and sending the matter back down the chain for further study and perhaps some revision.

I have been involved in decisions in Japan where the board and CEO were highly engaged, and these were ones that were of critical strategic importance. 5 DropSite has a longer recap of Araghchi’s remarks: ⭕️ Iran FM Araghchi: Wars End Either Through Total Victory or Negotiations… Foreign Minister Abbas Araghchi: 🔹 A war must be ended precisely at the point when you hold the upper hand on the battlefield.

Ending a war is possible either through total military victory or… pic.twitter.com/kHeYhShsXC — Drop Site (@DropSiteNews) July 20, 2026 IMHO his analysis is wrong-headed. As indicated above, a bit over half the modern wars do not end with a negotiated settlement.

And it is a false dichotomy to say that to win, Iran must conquer the US and Israel. FFS, please explain Vietnam. Bad logistics and depleting weapons mean that ex nukes, the US cannot win against Iran. The question is how long it takes and how much damage is done not just to Iran but also the world economy.

Keep in mind the intermediaries are still busy but motion is not progress: #Iran's Foreign Ministry Spokesperson has confirmed that Tehran has received "ideas and proposals" from mediators. He declined to provide any further details regarding the specifics of the mediation efforts.

pic.twitter.com/8Pzs25eauc — Iran Nuances (@IranNuances) July 20, 2026 6 A memorable scene in the Daniel Ellsberg memoir Secrets is when Ellsberg, widely seen as the top US expert on Vietnam, briefed McNamara in a helicopter about how badly things were going.

McNamara said, “Just as I suspected,” and then upon landing updated the press on the great progress the US was making. 7 It has taken me too long to see why Pape often acts as if he is speaking to children or the stoopid. Making this his normal manner of presentation means that when he actually is having to speak to someone who is being stoopid, they won’t take offense.

8 However, to quibble with Johnson on another matter: he has been saying, as he does in the talk linked in Footnote 2 above, that the Iran attacks on a former US base in Syria, Al Tanf, were pointless because the base had been vacated for years. Vanessa Beeley, who has spent a lot of time on the ground in Syria and still has contacts there, begs to differ.

She says the base was recently restored to service. From Why did Iran target the US Occupation base at Al Tanf, Syria? On Friday 17th July, Iran carried out an extensive attack on the US occupation base at Al Tanf in Syria. A drone and missile strike targeted a US Special Operations Command base in south-eastern Syria..

the first strike on Syrian territory since the toppling of the former government in December 2024. In a statement, the IRGC said its aerospace forces conducted what it described as the 11th phase of “Operation Nasr-2,” targeting the strategically located base near Syria’s borders with Iraq and Jordan.

The IRGC further claimed the attack destroyed a radar installation and several U.S. military helicopters, while alleging that many American personnel were killed. This strike occurred as the build up of both Turkish and HTS military forces increases inside Syria, along the border with Lebanon and in the coastal region to the north of Lebanon.

I have been reporting on this here and here. Syrian sources provided more detail on the attack: Despite previous reports of an almost total evacuation of the Al Tanf base, located on the borders of Syria, Iraq and Jordan, almost 5 months ago – the intensity of the strikes suggested a shift in the site’s operational status.

This was not an empty base, in fact, according to sources, the IRGC’s tracking systems and human intelligence in the region detected U.S. forces airdropping “Special Forces” units into the base approximately two weeks before the attack. Analysis would suggest that the purpose of these drops might be to prepare for a ground incursion across Iraqi territory (Sulaymaniyah Axis) in coordination with the local Kurdish separatist factions in Iraq.

One military analyst told me: The attack reflects the operator’s ability to breach the secrecy surrounding U.S. movements and to convert radio and visual data into precise target coordinates. According to reports from inside Syria, the strikes inflicted direct damage on the base’s newly constructed infrastructure, neutralised the US elite combat force and derailed the Iraq-Axis operation against Iran.

Of course, US media will not report on the planned operations or on the number of casualties – such a critical security breach and the significant scale of damage, as reported, will not be revealed. 9 Maybe mines?

strikeUnverifiedUSIsraelIranProxy
1 source

Iranian officials reported strikes on US radar and air defense sites in Kuwait and Bahrain, along with the interception of two oil tankers in the Strait of Hormuz. The United States conducted strikes on Iranian targets following the deaths of three US soldiers, with the Pentagon stating the actions aimed to degrade capabilities affecting shipping.

Houthi forces in Yemen announced plans to blockade Saudi ports, while both US and Iranian leaders issued statements on further escalation.

Location: Iran