A Heavy Wave.
Weird volatility.
“It’s the first thing I read every morning.” — David Barboza, founder of WireScreen and former Shanghai Bureau Chief for The New York Times.
1. US borrowing costs hit the highest level since 2007 after the Federal Reserve held rates steady, underscoring fears that the central bank will not be able to contain the inflationary shock from President Donald Trump’s war in Iran. The 30-year Treasury yield rose as much as 0.14 percentage points to 5.23 per cent following the Fed decision on Wednesday, in the biggest jump since Trump’s “liberation day” tariff announcement in April 2025, signaling worries among investors that surging oil prices triggered by the Middle East conflict could prompt a lasting bout of inflation. The yield remained elevated on Thursday morning at about 5.22 per cent. (Source: ft.com)
2. American forces began launching strikes against Iran on Wednesday night, in what the U.S. military called a “powerful response” to Iran’s Tuesday missile attacks on U.S. forces in Jordan. The strikes came hours after President Trump vowed to retaliate for the surprise ballistic missile strike, dashing hopes for an imminent diplomatic breakthrough. Though the assault was larger in scope than previous U.S. attacks, it didn’t amount to a return to major combat operations, according to a U.S. official. U.S. forces carried out a “heavy wave” of strikes, attacking dozens of targets, including military command centers, missile and drone facilities, coastal surveillance and defense sites, and maritime capabilities, said U.S. Central Command after the strikes were completed. (Source: wsj.com)
3. Eurointelligence:
(T)he Houthis are reportedly considering a toll system for the strait (of Bab el-Mandeb). This is according to the information minister of Yemen’s internationally recognized government, which does not control the capital, Sana’a, or the densely populated surrounding areas of north-east Yemen. The minister went on to say that Iran’s Revolutionary Guards are advising the Houthis on how to proceed with this plan.
Of course, we will have to see if the Houthis actually follow through later. But given the fact that they have already tried to use their position along the strait for broader geopolitical objectives, this wouldn’t be surprising. They have already interdicted shipping to try and force Israel to relent over Gaza, and are now attempting to blockade Saudi Arabia to assist Iran. Why not set up a toll system, like their allies are trying to do? (Source: eurointelligence.com)
