US CENTCOM said forces conducted the 11th consecutive night of strikes against Iran; US Secretary of State Rubio said the US is committed to diplomacy in the Middle East and Iran.Iran's top joint military command warned that all interests of the US and its allies in the region will be targeted if the US attacks Iran's nuclear sites.US is to impose new tariffs on dozens of countries as Trump's 10% global levy is set to expire, according to AFP citing USTR Greer.APAC stocks traded mostly in the green, DXY slightly pulled back, 10yr UST futures lingered near yesterday's lows, Crude futures mildly extended their gains.European equity futures indicate a slightly positive cash market open with Euro Stoxx 50 futures up 0.1%.Looking ahead, highlights include UK Inflation (Jun), Supply from Germany & the US, Earnings from Tesla, Alphabet, and IBM.SNAPSHOTClick for the Newsquawk Week Ahead.Newsquawk in 3 steps:1. Subscribe to the free premarket movers reports2. Listen to this report in the market open podcast (available on Apple and Spotify)3. Trial Newsquawk’s premium real-time audio news squawk box for 7 daysIRAN CONFLICTUS Secretary of State Rubio said the US is committed to diplomacy in the Middle East and Iran, but added Iran is not serious about talks, while the US remains open and willing to engage in negotiations.US Secretary of War Hegseth said they have multiple options for striking Iran's nuclear facilities in Jabal al-Fas.US CENTCOM said forces conducted the 11th consecutive night of strikes against Iran in which they targeted Iranian military operations centres, maritime capabilities, aircraft hangars, drone storage facilities, and military logistics infrastructure to further degrade Iran's ability to threaten commercial shipping in the Strait of Hormuz. CENTCOM also stated that the Strait of Hormuz remains open to commercial traffic, with US forces facilitating the movement of approximately 900 vessels and 450mln barrels of crude since early May.US strikes were reported on Behbahan, Mahshahr, Bandar Abbas, Chabahar, Bushehr, west of Tabriz and Urmia, while several explosions were heard in Iran's Tabriz. Furthermore, Arab media reported that missiles were fired from Kuwaiti territory to Iran and drone and missile attacks were reported on US bases in Kuwait and Bahrain.IRGC said it targeted a tactical radar complex near Ali Al-Salem base and another radar system in Bubiyan Island in Kuwait, while Iran's army also said it shot down a one-way attack drone in the country's northwest, according to Tasnim.Iran's top joint military command warned that all interests of the US and its allies in the region will be targeted if the US attacks Iran's nuclear sites.Iranian Foreign Minister Araghchi said during a call with his French counterpart that the unconventional and unprofessional actions of two French diplomats in Tehran were unacceptable.Pakistan's Science Minister said they are committed to advancing science and technology diplomacy with Iran, in a meeting with his Iranian counterpart.UK PM Burnham approved the use of British military bases by the US for what the UK calls defensive strikes against Iran, in a continuation of Keir Starmer’s policy, even as US President Trump ramps up his war.US TRADEEQUITIESUS stocks gained with outperformance in the tech-heavy Nasdaq 100 as the Tech sector was buoyed by numerous bullish stories, ahead of GOOGL and TSLA earnings on Wednesday; 1) Taiwan export orders in June +59.4% Y/Y (exp. 49.5%); 2) TSMC set to raise prices for both advanced and mature chip production services by up to 10% in 2027; 3) NVDA disclosed a 9.3% passive stake in NBIS; 4) HUT and IREN also gained after recent order news; 5) NVDA said chips are on schedule for use in AI data centres. Elsewhere, geopolitical headlines dominated the tape, as US/Iran tensions continued to escalate with no signs of abating, which saw energy benchmarks see strength of c. USD 2/bbl; some of the more notable reports were that Trump said they will hit Pickaxe Mountain very soon, and hard, while the Yemeni Houthis have warned shipping firms to avoid loading or discharging at Saudi ports. Sectors closed predominantly in the green, with only Consumer Staples and Communications in the red, with Energy the next best performing sector and supported by the aforementioned stories.SPX +0.89% at 7,509, NDX +1.93% at 29,155, DJI +0.74% at 52,230, RUT +1.53% at 2,987.Click here for a detailed summary.TARIFFS/TRADEUS President Trump posted "Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for a two year period of time, after which the TARIFF will be raised to 100% for a one year period of time, and 200% thereafter. This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them. The objective of this Policy is to protect the people of the United States."US President Trump said Canada tariffs are not related to wildfires, but they are looking into that.US is to impose new tariffs on dozens of countries as Trump's 10% global levy is set to expire, according to AFP citing USTR Greer. US President Trump's administration has prepared fresh tariffs targeting 60 trading partners over their alleged failures to act against forced labour, while Greer responded, "We expect to see some action soon", when asked if new duties were incoming, but did not specify a timeline. It was separately reported that the US is set to impose new tariffs by Friday with the stopgap to expire, while the Trump administration also considers banning imports of military-grade drones.NOTABLE HEADLINESUS President Trump thanked House Republicans supporting the first step to getting as much of THE SAVE AMERICA ACT in the Budget Bill, while he called for all House Republicans to vote Yes on the Budget Resolution and said he is watching the vote very closely.US House voted 220-205 to pass a stopgap measure to fund federal agencies through November elections, while the move is meant to pressure Senate Democrats to quickly support a plan to avert a lapse in funding, according to POLITICO.White House is to redirect billions in research funds towards AI away from colleges, according to WSJ.APAC TRADEEQUITIESAPAC stocks traded mostly in the green following on from the tech-led rebound on Wall Street, which was facilitated by several positive sector-specific headlines, and heading into some of the Mag-7 earnings.ASX 200 mildly gained amid strength in the commodity-related sectors, but with the upside capped by weakness in defensives, as well as domestic consumer and tech stocks.Nikkei 225 initially rallied at the open amid AI-related optimism and after PM Takaichi's Cabinet approved its first comprehensive economic and fiscal policy guidelines on Tuesday, targeting JPY 370tln in combined public and private investment by 2040, while sentiment was also helped by the stronger-than-expected exports and imports data from Japan.Hang Seng and Shanghai Comp were ultimately mixed, with underperformance in the Hong Kong benchmark in a resumption of the rotation out of hyperscalers.US equity futures were contained following the prior day's gains and as the focus turns to looming key earnings releases, including from Mag-7 names with Alphabet and Tesla due later today.European equity futures indicate a slightly positive cash market open with Euro Stoxx 50 futures up 0.1% after the cash market closed with gains of 0.9% on Tuesday.FXDXY slightly pulled back after gaining yesterday amid higher oil prices and yields owing to the current geopolitical backdrop, with Yemeni Houthis warning shipping firms to avoid loading or discharging at Saudi ports, while the US and Iran exchanged attacks for the 11th consecutive night and President Trump threatened to heavily strike Pickaxe Mountain soon.EUR/USD nursed some of its recent losses and reclaimed the 1.1400 handle, but with the rebound limited amid light catalysts for the bloc, while there were also prior reports that the European Commission will impose its first Digital Markets Act fine on Google (GOOGL) on Thursday.GBP/USD attempted to recover some of the lost ground seen in the aftermath of UK PM Burnham announcing John Healey as the new Chancellor, but with price action contained beneath the 1.3400 level as participants now await UK CPI data.USD/JPY took a breather after climbing to 163.00 territory amid firmer US yields and higher oil prices, which spurred more of the same jawboning from Japanese Finance Minister Katayama.Antipodeans were range-bound after recent fluctuations and in the absence of any tier-1 data.PBoC set USD/CNY mid-point at 6.7933 vs exp. 6.7737 (prev. 6.7917).FIXED INCOME10yr UST futures lingered near yesterday's lows after Treasuries bear flattened as rising oil prices stoked inflationary concerns and reinforced expectations for Fed tightening.Bund futures lacked firm direction after the recent choppy performance and with further supply scheduled today.10yr JGB futures tracked the downside in global peers, with prices also not helped by mostly better-than-expected trade data and mixed results from the 40yr JGB auction.COMMODITIESCrude futures mildly extended their gains as the geopolitical situation in the Middle East continued to escalate, with the 11th consecutive night of US-Iran attacks, while President Trump also threatened to heavily strike Iran's Pickaxe Mountain underground nuclear facility soon.US Private Inventory Data (bbls): Crude +2.6mln (exp. -0.5mln), Distillates +1.8mln (exp. +1.0mln), Gasoline -1.4mln (exp. -1.8mln), Cushing -0.7mln.Iraq’s Oil Minister said the total value of deals signed between Iraq's Oil Ministry and US companies during the Iraqi PM's visit is estimated at USD 200bln, while he added that agreements with US companies will add significant production capacity and investment in associated gas.Spot gold steadily ascended as Asia-Pac trade got underway and with further momentum seen after prices breached through the USD 4,100/oz level.Copper futures took a breather following the prior day's advances, but with the pullback cushioned by the mostly positive risk sentiment.CRYPTOBitcoin trickled lower in rangebound trade and remained above the USD 66,000 level.NOTABLE ASIA-PAC HEADLINESHong Kong is tipped to approve hedge fund tax breaks, attracting investment and talent, according to SCMP.DATA RECAPJapanese Trade Balance (JPY)(Jun) -406.9B vs. Exp. -120B (Prev. -378.7B)Japanese Exports YY (Jun) 19.3% vs. Exp. 18.6% (Prev. 17%)Japanese Imports YY (Jun) 25.4% vs. Exp. 21.0% (Prev. 12.5%)GEOPOLITICSMIDDLE EASTUS President Trump formally approved a landmark nuclear deal with Saudi Arabia that will provide the country with a civilian nuclear program and potentially open the door to uranium enrichment in the kingdom's territory, according to US officials cited by WSJ.RUSSIA-UKRAINEUkrainian President Zelensky dismissed army chief Syrsky.OTHERUS President Trump reportedly seeks to nominate FIFA President Infantino as the next UN Secretary General.EU/UKNOTABLE HEADLINESUK PM Burnham's new Energy Secretary Fahnbulleh was previously head of a think tank that had called for a net zero target to be accelerated and a total end to new drilling in the North Sea basin, according to FT.Loading...