Good morning. Here’s what happened overnight and what you need to know today.
1.
Bridge too far: US President Donald Trump threatened to destroy an Iranian bridge or power plant every time Iran shoots at a ship in the Strait of Hormuz. Trump wrote on Truth Social that the US will “bomb and destroy ONE BRIDGE OR POWER PLANT", including those in or near Tehran, each time Iran’s military targets a ship in the strait. The threat followed the 11th consecutive night of US strikes on Iran. Meanwhile, US Secretary of Sate Marco Rubio said in Manila that the US remains open to a negotiated settlement but that Iran did not seem serious about renewed talks. On the same day, Iran’s top negotiator Mohammad Baqer Qalibaf said on X that Tehran would retaliate against infrastructure in the region if its security was not ensured. Iran’s near-total blockade of the strait, which before the war carried a fifth of the world’s oil, has pushed Brent crude to a near six-week high, trading around USD94 a barrel. The threats come days after four US service members were killed in Iranian attacks on bases in Jordan and Iraq, and after the Iran-backed Houthis threatened to blockade Saudi shipping in the Red Sea. (WSJ)(Reuters)
2.
Waiting game: US stocks edged lower overnight as losses across most of Big Tech offset a rebound in chipmakers, with investors bracing for a run of megacap earnings that will test the AI trade. The S&P 500 fell 0.14% and the Nasdaq Composite lost 0.56%, while the Dow finished flat. A basket of the Magnificent Seven fell about 1%, though Nvidia climbed 2.3%. Alphabet and Tesla were the first of the group to report after the bell. Alphabet posted cloud sales of USD24.77 billion, up 82% and ahead of estimates, but narrowly missed on search revenue. Tesla fell late after its second-quarter earnings came in short of estimates. Oil added another layer of caution, with Brent settling up around 3% near USD93.71 at its highest since 11 June, as the US and Iran signalled they were not ready to resume talks. The climb in oil lifted 10-year Treasury yields toward their 2026 high, and traders now see roughly a one-in-four chance the Fed raises rates next week. Super Micro Computer rallied about 20% after flagging record orders. (Reuters)(Bloomberg)(WSJ)
