{"id":65245,"date":"2026-07-22T20:38:14","date_gmt":"2026-07-23T00:38:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/u-s-house-passes-95-billion-budget-blueprint-amid-escalating-iran-conflict-tesla-shares-slide-on-q2-profit-miss\/65245\/"},"modified":"2026-07-22T20:38:14","modified_gmt":"2026-07-23T00:38:14","slug":"u-s-house-passes-95-billion-budget-blueprint-amid-escalating-iran-conflict-tesla-shares-slide-on-q2-profit-miss","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/u-s-house-passes-95-billion-budget-blueprint-amid-escalating-iran-conflict-tesla-shares-slide-on-q2-profit-miss\/65245\/","title":{"rendered":"U.S. House Passes $95 Billion Budget Blueprint Amid Escalating Iran Conflict; Tesla Shares Slide on Q2 Profit Miss"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The U.S. House narrowly passed a $95 billion budget blueprint<\/strong> (216-214) that allocates <strong>$73 billion for Iran war operations<\/strong>, setting the stage for a filibuster-proof reconciliation bill.<\/li>\n<li><strong>Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>) shares fell over 3%<\/strong> in after-hours trading after missing Q2 profit estimates and reporting its <strong>first negative free cash flow ($1.1 billion)<\/strong> in more than two years.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> surged above $4,120 per ounce<\/strong> to a two-week high as escalating Middle East hostilities and a weakening U.S. dollar drove safe-haven demand.<\/li>\n<li><strong>The Strait of Hormuz remains effectively closed<\/strong> following an explosion on a tanker and subsequent IRGC warnings that no vessel may enter without Iranian coordination.<\/li>\n<li><strong>Taiwan&#39;s Ministry of National Defense<\/strong> announced plans to begin <strong>domestic production of RDX explosives<\/strong> after alleged Chinese interference disrupted international procurement efforts.<\/li>\n<\/ul>\n<h2>Legislative Action and Geopolitical Escalation<\/h2>\n<p>The <strong>U.S. House of Representatives<\/strong> narrowly approved a <strong>$95 billion GOP budget blueprint<\/strong> on Wednesday, intended to unlock funding for ongoing military operations. The measure includes <strong>$73 billion specifically for the war with Iran<\/strong>, alongside $12 billion for farmers and $10 billion for election-related measures. This framework allows Republicans to bypass a Senate filibuster through the reconciliation process, though the bill faces stiff resistance from lawmakers concerned about the lack of explicit congressional authorization for the conflict.<\/p>\n<p>On the ground, tensions reached a new peak as a <strong>U.S. missile strike<\/strong> was reported near a passenger terminal at the <strong>Shalamcheh border crossing<\/strong> in Iran\u2019s Khouzestan province. While Iranian media reported no immediate casualties from this specific strike, it follows a 12th consecutive night of U.S. Central Command attacks aimed at degrading Iran&#39;s maritime and drone capabilities. In retaliation, the <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> reported that an oil tanker caught fire after an explosion south of the <strong>Strait of Hormuz<\/strong>, leading two other tankers to retreat.<\/p>\n<h2>Tesla Q2 Earnings and Market Reaction<\/h2>\n<p>Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>) reported second-quarter results that highlighted the high cost of its pivot toward artificial intelligence and robotics. Despite <strong>record vehicle deliveries of 480,126 units<\/strong> and revenue of <strong>$28.2 billion<\/strong>, the company\u2019s adjusted earnings of <strong>33 cents per share<\/strong> fell significantly short of the 51-cent analyst estimate. The heavy investment in <strong>Robotaxis, Optimus robots, and AI infrastructure<\/strong> led to a <strong>$1.1 billion cash burn<\/strong>, marking the first time the company has seen negative free cash flow since early 2024.<\/p>\n<p>CEO <strong>Elon Musk<\/strong> reaffirmed that Tesla will continue aggressive capital spending, which is expected to exceed <strong>$25 billion<\/strong> this year. Investors remain wary of the immediate impact on margins, as automotive gross margins (excluding regulatory credits) sat at <strong>16.3%<\/strong>. While the energy storage business achieved record deployments of <strong>13.5 GWh<\/strong>, the stock remains under pressure as the market weighs long-term autonomous potential against current profitability strains.<\/p>\n<h2>Commodities and Global Finance<\/h2>\n<p><strong>Gold (<a href=\"\/stock\/GLD\">GLD<\/a>)<\/strong> prices held steady above the <strong>$4,120<\/strong> mark, benefiting from &quot;dip-buying&quot; as investors sought protection against the inflationary risks of rising <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a>. Global benchmark crude topped <strong>$94 per barrel<\/strong> following the disruptions in the Strait of Hormuz, a channel that typically handles 25% of the world&#39;s seaborne oil. Traders are now closely watching the <strong>Federal Reserve<\/strong>, with a 76% probability of a rate hike being priced in for September to combat energy-driven inflation.<\/p>\n<p>In Asia, the <strong>Japanese 5-year government bond yield<\/strong> advanced to <strong>2.00%<\/strong>, its highest level in years, as expectations for a faster pace of rate hikes from the <strong>Bank of Japan<\/strong> supported the Yen. Meanwhile, <strong>Taiwan<\/strong> is moving to secure its own defense supply chain by initiating domestic production of <strong>RDX explosives<\/strong>. The move follows a failed NT$590 million procurement contract that the Ministry of National Defense claims was sabotaged by Beijing-directed interference.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The U.S. House narrowly passed a $95 billion budget blueprint (216-214) that allocates $73 billion for Iran war 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