Key Takeaways
- US State Department orders non-emergency personnel to evacuate Iraq, Bahrain, and Jordan while suspending consular operations in Saudi Arabia following a drone attack on the Riyadh embassy.
- WTI Crude Oil surged $2 to $73.23 per barrel as the regional conflict with Iran intensifies, threatening global energy supply chains.
- Thales (HO) reported a beat on FY 2026 EBIT at €2.74 billion, but shares faced pressure after the company issued 2026 guidance that fell short of analyst expectations.
- S&P Global revised the outlook for SoftBank (SFTBY) to negative, citing liquidity concerns following a massive $30 billion additional investment in OpenAI.
- Shanghai tin futures plummeted more than 10% amid intense market volatility, while China’s coking coal futures advanced over 3%.
The Middle East entered a period of rapid escalation on Tuesday as the U.S. State Department ordered the departure of non-emergency staff and their families from Iraq, Bahrain, and Jordan. This directive follows a drone attack on the U.S. Embassy in Riyadh, which resulted in a fire and minor structural damage, prompting the immediate cancellation of all consular operations across Saudi Arabia.
Regional tensions were further inflamed by a drone strike targeting a U.S. military installation near Erbil International Airport in Iraq. Simultaneously, Hezbollah confirmed it had targeted the Israeli Meron air traffic control base, triggering widespread air raid alerts across the Upper Galilee region of northern Israel.
In Washington, Senate Minority Leader Chuck Schumer noted that Americans, regardless of political affiliation, are increasingly frustrated with the ongoing wars in the Middle East. Schumer called for the Senate to reassert its constitutional duty by considering a War Powers Act resolution to provide oversight on the expanding military operations.
Energy markets reacted sharply to the instability, with U.S. crude (WTI) gaining $2 to trade at $73.23 a barrel. Conversely, safe-haven demand showed signs of reassessment as Gold prices retreated 0.4% to $5,305.49 per ounce and Silver prices dropped 3.00%, reflecting a complex shift in investor risk appetite.
In corporate news, Thales (HO) reported FY 2026 EBIT of €2.74 billion, slightly exceeding the estimated €2.72 billion. However, the defense giant’s outlook for the coming year was more conservative than expected, with 2026 sales projected between €23.3 billion and €23.6 billion, trailing the consensus estimate of €23.64 billion.
SoftBank (SFTBY) also faced credit scrutiny as S&P Global revised the firm's outlook to negative while maintaining its BB+ rating. The revision is a direct response to SoftBank's aggressive $30 billion investment in OpenAI, which S&P warns will increase the concentration of unlisted, illiquid assets within the company's portfolio.
Industrial metals experienced divergent trends, with Shanghai tin futures crashing over 10% as volatility intensified across base metals. Meanwhile, China’s benchmark coking coal futures rose more than 3%, highlighting continued demand for steel-making ingredients despite the broader geopolitical uncertainty.
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.