This week, the U.S. resumed strikes on Iran, raising the risk of renewed armed conflict. On Sunday, the U.S. struck Iranian rocket launchers on Larak Island, marking its first publicly acknowledged attack on Iran since late July.
Markets, however, reacted only slightly to this new escalation. Meanwhile, Federal Reserve Chair Kevin Warsh is indicating that interest rates may need to rise.
What you need to know today
U.S. President Donald Trump had vowed "Economic Warfare and Isolation on an unprecedented scale" against Iran, but that strategy was short-lived.
U.S. forces struck two Iranian rocket launchers on Larak Island, with the Iran war now entering its seventh month, raising concerns of a protracted conflict.
Oil futures rose just over 1%, while U.S. stock futures and Asian markets fell.
Additionally, prospects of higher rates are also denting investor sentiment.
Treasury Secretary Scott Bessent stated he will encourage G20 member countries to re-examine their trade terms with China.
On the corporate front, OpenAI announced plans to wind down its contract with the code editor Cursor.
Finally, insurance and consulting giant Aon is reportedly nearing a $17 billion deal to acquire insurance brokerage USI.
