The ceasefire is looking a little more firing and a little less ceasing this morning. According to reports, Iran's Islamic Revolutionary Guard Corps (IRGC) has targeted an unspecified U.S. air base in the Middle East following U.S. strikes over the Strait of Hormuz.
The IRGC did not say where in the region it had targeted the base, but Kuwait, which is home to a U.S. base, said it had intercepted hostile missile and drone threats—according to the BBC—though it didn’t specify where from.
Israel has also issued an evacuation order for southern Lebanon, after the Israel Defense Forces said it would use "extreme force" targeting Hezbollah infrastructure.
Despite the action, markets remain committed to the view that negotiations between the U.S. and Iran will be successful, with global oil supply normalizing as a result.
“Investors are eyeing U.S. domestic political pressures as grounds for expecting a resolution, in spite of Trump’s denials,” UBS’s Paul Donovan said this morning. “Trump’s approval rating hit a new low in a recent opinion poll, and the administration is being directly blamed for higher prices.”
