Key Takeaways
- German annual inflation fell to 2.3% in June, significantly lower than the 2.6% expected by markets, marking its lowest level since February.
- The U.S. Treasury issued a 60-day general license authorizing the sale of Iranian oil and petrochemicals through August 21, 2026, as part of a broader diplomatic de-escalation.
- Iran and Oman have launched high-level talks to establish a joint management mechanism for the Strait of Hormuz, aiming to normalize maritime traffic.
- Speaker Mike Johnson is pressuring President Trump to sign a bipartisan housing affordability bill, which Trump is currently leveraging against his SAVE America Act election push.
- Representative Tom Kean Jr. (NJ-07) returned to Capitol Hill today after a 117-day absence due to an undisclosed medical condition, restoring a critical vote for the narrow GOP majority.
German Inflation Cools as Energy Pressures Relent
Preliminary data from Destatis shows Germany’s consumer price index (CPI) decreased by 0.3% month-over-month in June, defying expectations of a flat reading. The annual rate of 2.3% represents a sharp drop from May’s 2.6%, primarily driven by a slowdown in energy price growth, which rose just 3.4% compared to 6.6% the previous month.
Core inflation, which excludes volatile food and energy costs, remained steady at 2.5%. While services inflation remains elevated at 3.1%, the overall cooling in Europe’s largest economy provides the European Central Bank with more breathing room as it evaluates future interest rate cuts.
Iran Oil Sales Facilitated Amid Regional Diplomacy
Tehran announced today that its oil and petrochemical sales have been "greatly facilitated" following the U.S. Treasury Department's issuance of General License X. This 60-day waiver allows for the production and delivery of Iranian-origin crude through August 21, a move linked to ongoing negotiations regarding nuclear inspections and regional security.
In a parallel development, Iranian Foreign Ministry spokesman Esmaeil Baghaei confirmed that talks with Oman are progressing to manage the Strait of Hormuz. The two nations are forming a joint committee to oversee navigation services and security, with Baghaei asserting that the littoral states will handle the waterway's responsibility without "intervention from other parties."
Washington Gridlock Over Housing and Election Bills
In the U.S., Speaker Mike Johnson is navigating a complex standoff with President Trump over a bipartisan housing bill designed to lower costs ahead of the midterms. Trump has labeled the bill a "yawn" and is reportedly holding up his signature to force progress on the SAVE America Act, which focuses on voter ID and proof-of-citizenship requirements.
The legislative logjam comes as Representative Tom Kean Jr. (NJ-07) returns to work for the first time in nearly four months. Kean, who missed over 140 votes during his absence, is expected to deliver a floor speech today to address the "personal medical issue" that kept him from Washington since early March.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.