{"id":65777,"date":"2026-08-01T03:38:15","date_gmt":"2026-08-01T07:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-escalation-as-u-s-and-israel-prepare-major-strikes-on-iran\/65777\/"},"modified":"2026-08-01T03:38:15","modified_gmt":"2026-08-01T07:38:15","slug":"global-markets-brace-for-escalation-as-u-s-and-israel-prepare-major-strikes-on-iran","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-escalation-as-u-s-and-israel-prepare-major-strikes-on-iran\/65777\/","title":{"rendered":"Global Markets Brace for Escalation as U.S. and Israel Prepare Major Strikes on Iran"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. and Israeli forces are reportedly &quot;locked and loaded&quot; for a massive aerial campaign targeting Iranian energy infrastructure and nuclear sites as early as this weekend.<\/strong><\/li>\n<li><strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>) reported a significant earnings beat, with 85% of the surprise attributed to $2.2 billion in tariff refunds following a Supreme Court ruling against previous trade levies.<\/strong><\/li>\n<li><strong>U.S. Treasuries fell and the 10-year yield topped 4.73% after three Federal Reserve dissenters called for immediate rate hikes to combat persistent inflation.<\/strong><\/li>\n<li><strong>Severe weather in Germany has forced the closure of Saxon Switzerland National Park after a storm killed one person and caused extensive damage.<\/strong><\/li>\n<\/ul>\n<h2>Middle East Tensions Reach Boiling Point<\/h2>\n<p>The <strong>U.S. military<\/strong> and <strong>Israel<\/strong> are finalizing plans for one of the most intensive bombing campaigns to date against <strong>Iran<\/strong>, with operations potentially beginning this weekend. Sources indicate that <strong>President Donald Trump<\/strong> has reviewed three primary military options presented by <strong>Prime Minister Benjamin Netanyahu<\/strong>, including strikes on land resupply routes and critical energy infrastructure such as <strong>power plants<\/strong> and <strong>oil refineries<\/strong>.<\/p>\n<p><strong>CNN<\/strong> reports that the <strong>Pentagon<\/strong> has also prepared contingency plans for strikes on Iranian <strong>nuclear infrastructure<\/strong>, including the newly identified <strong>Kuh-e Kolang<\/strong> facility. While <strong>White House<\/strong> officials remain divided on the economic fallout, <strong>President Trump<\/strong> signaled a hardline stance at a <strong>Camp David<\/strong> cabinet meeting, stating, <em>&quot;We&#39;ll be hitting them very hard&#8230; I think we just want to win.&quot;<\/em><\/p>\n<h2>Apple Earnings Boosted by Tariff Windfall<\/h2>\n<p>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>) delivered a robust third-quarter earnings report, but analysts were quick to note that a one-time windfall drove the majority of the beat. The company reported diluted earnings per share (EPS) of <strong>$2.02<\/strong>, surpassing the <strong>$1.89<\/strong> consensus; however, <strong>$0.11<\/strong> of that figure came from <strong>tariff refunds<\/strong>.<\/p>\n<p>The refunds follow a <strong>Supreme Court<\/strong> ruling that invalidated several of the administration&#39;s previous import levies as unconstitutional. Without this <strong>$2.2 billion<\/strong> benefit, Apple\u2019s gross margin would have been <strong>48.1%<\/strong> instead of the reported <strong>50.1%<\/strong>, leading to a much narrower beat of just two cents per share.<\/p>\n<h2>Fed Dissenters Trigger Treasury Sell-Off<\/h2>\n<p><strong>U.S. Treasury<\/strong> yields surged on Friday after three <strong>Federal Reserve<\/strong> policymakers\u2014<strong>Beth Hammack<\/strong> (Cleveland), <strong>Neel Kashkari<\/strong> (Minneapolis), and <strong>Lorie Logan<\/strong> (Dallas)\u2014publicly dissented from the decision to hold interest rates steady. The trio warned that waiting to raise rates risks &quot;entrenching&quot; inflation, which has remained above the <strong>2% target<\/strong> for five years.<\/p>\n<p>The hawkish commentary, combined with rising <strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a><\/strong> due to the Middle East conflict, pushed the <strong>10-year Treasury yield<\/strong> to <strong>4.73%<\/strong>, its highest level since early 2025. Markets are now pricing in a higher probability of a rate hike at the <strong>September 16<\/strong> meeting, as the <strong>Fed<\/strong> grapples with supply shocks from both the war and the ongoing <strong>AI investment boom<\/strong>.<\/p>\n<h2>Storm Devastates German National Park<\/h2>\n<p>In <strong>Germany<\/strong>, authorities have indefinitely closed the <strong>Saxon Switzerland National Park<\/strong> following a violent overnight storm. The severe weather resulted in at least <strong>one death<\/strong> and left three others seriously injured due to falling trees and debris.<\/p>\n<p>Emergency crews are currently working to clear hiking trails and assess structural damage to the park&#39;s iconic rock formations. Local officials have warned of &quot;danger to life&quot; in several sectors, including the <strong>Edmund Gorge<\/strong>, as cleanup efforts continue across the eastern state of <strong>Saxony<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. and Israeli forces are reportedly &quot;locked and loaded&quot; for a massive aerial campaign targeting Iranian energy infrastructure 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