Iran Tensions

• Tensions between the United States and Iran have escalated into a dangerous new phase following a series of mutual military strikes over the past 24 hours. • Iran has vowed that the U.S. "will pay the price" after a specific strike occurred in Qeshm, undoing several days of relative calm. • The escalation is fueled by faltering diplomacy and the increasing involvement of other regional powers, raising significant fears of a wider Middle East war.

• The Federal Reserve's FOMC decided in a 9-3 vote on Wednesday to keep interest rates steady between 3.5% and 3.75% for the fifth consecutive time. • The decision comes as rising tensions in Iran threaten to trigger energy price shocks, which could increase inflationary pressures on the economy. • While rates remain unchanged, some Fed officials indicated that further interest rate hikes may still be necessary later this year to maintain stability.

• Asian stocks rose on Monday, July 25, 2026, as hopes for a truce between the U.S. and Iran led to a significant tumble in oil prices. • The decline in energy costs is helping to alleviate global inflation and interest-rate pressures for investors. • This market shift occurs just before critical policy meetings for the Federal Reserve, Bank of England, and Bank of Japan scheduled for this week.

• President Trump expressed strong support for Defense Secretary Pete Hegseth, stating he has "done a great job" amid escalating tensions with Iran. • Simultaneously, the Trump administration has petitioned the U.S. Supreme Court to permit the nationwide implementation of an executive order tightening mail-in voting rules. • These voting restrictions are aimed at the upcoming November midterm elections, which will determine the balance of power in Congress.

• Asian stock markets rose, with Japan and South Korea leading the gains, as geopolitical tensions involving Iran began to ease. • Investors are shifting their focus toward a critical week of corporate earnings from U.S. megacap technology firms. • Key financial reports are expected from Microsoft and Meta Platforms on Wednesday, followed by Apple and Amazon on Thursday.

Saudi air defences intercept ballistic missiles as Iran reports first night without US strikes in two weeksYemen’s Iran-backed Houthi rebels claimed a missile attack on the southern Saudi city of Jizan on Saturday, after vowing retaliation against the kingdom for attacks this week.Iran, meanwhile, reported no strikes overnight on Saturday for the first time after two weeks of US attacks. The Iranian health ministry spokesperson, Hossein Kermanpour, said: “Iran had a peaceful night” in a post on X. Tensions, however, remain high. Continue reading...

• US stock markets showed mixed results, with the Dow Jones edging higher while the Nasdaq slipped amid fluctuating investor sentiment. • Market volatility was driven by a surge in AI-related stocks like Nvidia and AMD, contrasted by crashes in major firms including Amazon, Microsoft, and Adobe. • Key pressures include rising geopolitical tensions between the US and Iran, which pushed Brent crude oil prices above $93 per barrel.