Key Takeaways
- Israel and Hezbollah have agreed to a renewed ceasefire starting at 16:00 local time on Friday, June 19, following mediation by the U.S. and Qatar.
- President Donald Trump declared that Iran's military capabilities, including its air force and navy, have been effectively "diminished" by recent conflict.
- Canada’s retail sales rose 0.5% in April, slightly missing estimates of 0.6%, while an advance estimate suggests a stronger 1.0% jump in May.
- The U.S. Senate is scheduled to vote by Thursday on an Iran war powers resolution previously approved by the House, aiming to limit executive military authority.
Middle East Tensions Ease with New Truce
A senior American official confirmed on Friday that Israel and Hezbollah have reached a ceasefire agreement scheduled to take effect at 4:00 PM local time. The deal was brokered through intensive mediation by the United States and Qatar, involving direct discussions with both Israel and Iran. This development follows a period of intense cross-border exchanges that threatened to derail a broader regional memorandum of understanding signed earlier this week.
Iran’s Foreign Ministry spokesperson, Esmaeil Baghaei, condemned recent Israeli actions in Lebanon but noted that a halt to hostilities is an "integral part" of the broader agreement to end the war on all fronts. Despite the truce, Tehran warned that the U.S. bears responsibility for Israeli military actions and stated it would take "all necessary measures" to protect its regional allies.
Trump Claims Victory Over Iranian Military
In a series of statements on Truth Social, President Donald Trump asserted that the recent war has left Iran with virtually no remaining conventional military power. Trump claimed that the country no longer possesses a functional Air Force, Navy, or advanced radar equipment, dismissing critics who argue that Iran's position has improved. "They are finished! We’ll play out the 60 days," Trump wrote, referring to the negotiation window established by the recent memorandum of understanding.
The President further emphasized that Iran entered negotiations out of desperation rather than a desire for peace, reiterating that the U.S. will not release any frozen funds during the current 60-day talks. Meanwhile, a new book by Maggie Haberman and Jonathan Swan reportedly reveals internal friction within the administration, including a private clash between Trump and Commerce Secretary Howard Lutnick over the President's aggressive tariff policies.
Economic Data and Legislative Outlook
On the economic front, Statistics Canada reported that retail trade increased 0.5% to $73.0 billion in April, primarily driven by higher sales at gasoline stations. While the April figure was a "tick softer" than the preliminary 0.6% estimate, the agency's advance indicator for May points to a more robust 1.0% increase. These figures suggest resilient consumer spending despite the ongoing global energy volatility caused by the Middle East conflict.
In Washington, legislative focus shifts to the Senate, where a vote on the Iran war powers resolution is expected by next Thursday. The resolution, which passed the House 215-208 earlier this month, seeks to curb the President's ability to conduct further military operations against Iran without explicit congressional approval. This vote comes as lawmakers remain skeptical of the secret terms within the emerging U.S.-Iran peace deal.
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.