Key Takeaways
- U.S. forces launched a second wave of strikes against Iranian military targets at 3 p.m. ET today, specifically aiming to degrade capabilities used to threaten commercial shipping in the Strait of Hormuz.
- President Trump advocated for a pause in interest rate hikes, expressing expectations for lower inflation by year-end while warning of "yo-yo" volatility in oil prices.
- Kuwaiti Armed Forces intercepted 4 cruise missiles and 21 drones launched from Iran, reporting material damage to vital facilities but no human casualties.
- Airbus (AIR) and Boeing (BA) have shifted critical part shipments from sea to air to bypass supply chain bottlenecks and maintain production stability for the A350 and 767 programs.
- U.S. natural gas inventories are projected to rise by 43 billion cubic feet (Bcf) in tomorrow's EIA report, as robust production continues to outpace cooling demand.
Military Escalation in the Middle East
The U.S. military intensified its campaign against Tehran today, launching a second wave of daylight strikes at 3 p.m. ET. According to U.S. Central Command (CENTCOM), the operations targeted Iranian assets used to harass vessels in the Strait of Hormuz, a waterway responsible for roughly 20% of global oil and gas trade. This escalation follows a week of hundreds of air attacks that have reportedly killed at least 35 people and wounded hundreds more within Iran.
Regional allies are increasingly caught in the crossfire as Kuwait confirmed it intercepted a massive salvo of 21 drones and 4 cruise missiles earlier Wednesday. While the Ministry of Defence reported material damage to "vital facilities," no injuries were recorded. Simultaneously, Jordan and Bahrain reported intercepting hostile aerial targets, signaling a broadening of the conflict beyond the immediate maritime corridor.
Trump Weighs in on Monetary Policy and Trade
President Donald Trump signaled a preference for the Federal Reserve to pause its current rate-hiking cycle, stating it is "better to pause rates than raise them" in the current environment. Trump noted he expects inflation to cool significantly by the end of 2026, though he cautioned that crude oil prices—currently hovering near $80 per barrel—will likely remain volatile.
The President also expressed frustration with the pace of trade policy, wishing tariffs could be "deployed faster" to protect domestic interests. These comments come as Fed Governor Lisa Cook separately warned that she remains "prepared to act" if inflation does not show signs of slowing, citing price pressures from both tariffs and the ongoing conflict with Iran.
Aerospace and Energy Market Developments
In the industrial sector, Airbus (AIR) has reportedly shifted shipments of A350 fuselage parts from sea to air to mitigate persistent supply chain delays. Boeing (BA) has taken similar measures, airlifting critical components to support its 767 production line. Both planemakers are utilizing expensive flexible logistics to maintain manufacturing stability as they integrate former Spirit AeroSystems facilities.
On the energy front, analysts expect the Energy Information Administration (EIA) to report a 43 Bcf increase in natural gas inventories for the week ended July 10. While natural gas prices recently dipped below $3.00/MMBtu, stocks remain approximately 185 Bcf above the five-year average, providing a significant buffer against potential supply shocks despite the geopolitical instability in the Middle East.
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.