Iranian officials have signaled readiness for a more intense conflict should the United States continue its strikes on Iranian territory and infrastructure, with threats of escalated retaliation. According to a senior official, Tehran is unwilling to concede in the face of a US naval blockade and attacks on its oil tankers, viewing the confrontation as an existential struggle leaving little room for alternatives despite mounting economic pressures.
President Donald Trump on Wednesday downplayed concerns over rising oil prices, reiterating that Iran has lost its capacity to sustain the fight. "I think the war will end right after the election," he told reporters, "because they can't hold on much longer." The official added that Iran has been rebuilding its military capabilities since the most intense phase of the conflict ended in April, and now possesses sufficient missile stockpiles to support a prolonged engagement.
Traders are intensifying bets on interest rate hikes from both the European Central Bank and the Bank of England, as surging energy prices threaten to keep inflation elevated well into the coming year. Swap markets now indicate expectations of roughly 90 basis points of tightening from the ECB by December 2027, the highest level in this cycle, implying three quarter-point increases with a 60% probability of a fourth. Comparable moves are priced for the BOE, which would push rates to their highest since February 2025.
Both Europe and the UK rely heavily on imported oil and particularly natural gas, leaving their economies vulnerable to price spikes. Markets widely anticipate an ECB rate increase at Thursday's meeting, and the shift in swap pricing underscores growing anxiety over an inflationary surge triggered by the conflict with Iran.
Apple has finally unveiled its first foldable smartphone at a major product event, aiming to revitalize its flagship iPhone lineup with an entirely new form factor. Dubbed the iPhone Duo, the device was introduced by CEO John Ternus, who highlighted its improvements over existing rival foldables, noting that some competing models feel "like two phones taped together." The Duo features a 7.6-inch main display, the largest ever on an iPhone, along with a 5.4-inch external screen that supports the iPad's Apple Pencil stylus. Sales are slated to begin in October, marking what the company describes as the most significant design change in iPhone history.
JPMorgan Chase is approaching the trillion-dollar market capitalization milestone, a threshold that could attract a fresh wave of investors and create a "scarcity premium," according to BofA Securities analyst Ebrahim Poonawala. "As JPMorgan edges closer to joining the elite trillion-dollar club, the market is underappreciating the potential for its valuation premium relative to peers to widen further," Poonawala wrote in a note. He pointed out that the median forward price-to-earnings ratio for the 11 S&P 500 companies currently in that club stands at 20.7 times, while JPMorgan trades at just 14.1 times. The bank could benefit from being "the only trillion-dollar company outside the tech sector trading at around 15 times earnings," potentially drawing "different types of investors."
The US Treasury announced that its first operation under an expanded bond repurchase program will target up to $60 billion in long-dated government debt, triple the $20 billion initially outlined. However, the announcement failed to stem the selloff in Treasuries, with the 10-year yield touching a three-year high. Some dealers had already raised their forecasts for Thursday's operation after Treasury Secretary Scott Bessent publicly floated the possibility of purchases exceeding $40 billion. Bessent reiterated on Tuesday that while he cannot change the "equilibrium" price of US debt, his objective is to dampen market volatility and prevent any narrative that could damage the Treasury market from gaining traction.
A researcher at Anthropic has resigned, urging colleagues to reconsider their work and warning that the AI giant, along with chief rival OpenAI, is recklessly pursuing technology that could pose an existential risk to humanity. Jacob Coxon, who spent the past three years working at both Anthropic and OpenAI, said on social media Tuesday evening that the companies are advancing AI models capable of "self-improvement," which could eventually become too powerful for humans to control. "They are racing headlong toward self-improving superintelligence, gambling with human lives," Coxon wrote. "Do not underestimate the power of this technology. These systems will soon possess capabilities beyond human comprehension, able to hack anything, transform any field overnight, and seize genuine power and resources."