Key Takeaways
- U.S. Central Command (CENTCOM) launched a fifth consecutive night of strikes against Iranian military targets at 2:00 PM ET to further degrade capabilities following the collapse of a recent ceasefire.
- Alphabet Inc. (GOOGL) shares fell 2.3% following reports that the flagship Gemini 3.5 Pro AI model launch has been delayed by months due to internal review hurdles and coding performance issues.
- Brent Crude (BRENT) futures settled lower at $84.23/bbl, declining 0.85% as traders balanced escalating Middle East tensions against a broader decline in U.S. money-market fund assets.
- Bipartisan support for a revised Russia sanctions bill reached a critical threshold of 60 co-sponsors in the Senate, providing enough momentum to clear a potential filibuster.
- Coinbase (COIN) reported technical delays for users sending and receiving Cosmos (ATOM), though core trading and fiat services remain unaffected.
U.S.-Iran Conflict Escalates as Ceasefire Dissolves
The U.S. military intensified its air campaign against Iran on Thursday, striking targets near the strategic port of Bandar Abbas and the capital, Tehran. According to U.S. Central Command, the latest wave of strikes began at 2:00 PM ET, marking the fifth straight night of operations aimed at degrading Iranian air defenses and missile sites. Iranian state media confirmed three large explosions in western Bandar Abbas, while the Iranian Armed Forces spokesperson claimed American fighter jets have maintained a constant presence in the Strait of Hormuz since the ceasefire was purportedly breached.
Retaliatory actions from Tehran have reportedly caused damage in Kuwait, with local authorities confirming hits on Thursday. Meanwhile, Iran's Judiciary dismissed claims made by President Trump regarding a potential U.S. prisoner release, calling the assertions "false." The conflict has effectively shredded the interim memorandum of understanding (MOU) signed in June, as both nations resume direct hostilities and naval blockades in the Persian Gulf.
Google Faces Internal Turmoil Over AI Delays
Alphabet Inc. (GOOGL) is facing growing internal frustration as the launch of its Gemini 3.5 Pro model has been pushed back by several months. Reports indicate that the delay is primarily due to the model's struggling performance in complex coding tasks and a bottleneck created by multiple layers of internal safety and quality reviews. Engineers and managers within Google have expressed concerns that the tech giant is losing its competitive edge to rivals like Anthropic and OpenAI, who have maintained a faster release cadence for frontier models.
Market Reaction and Economic Indicators
Brent Crude futures settled at $84.23 per barrel, down 72 cents, despite the significant geopolitical risk premium currently priced into the energy market. Investors are closely watching the Strait of Hormuz, a vital artery for global oil transit, which remains a primary flashpoint in the current conflict. In the financial sector, the Investment Company Institute (ICI) reported that U.S. money-market fund assets declined to $7.89 trillion, suggesting a slight shift in liquidity as the Federal Reserve's rate outlook remains uncertain.
On the domestic front, President Trump is scheduled to visit a metro Atlanta high school to promote a new initiative for "Trump Accounts," government-seeded investment accounts designed to foster financial independence for children. In legislative news, the Russia Sanctions Bill gained its 60th co-sponsor, signaling a unified bipartisan front to impose 100% secondary tariffs on countries that continue to purchase Russian energy.
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.