Futures are higher on a WSJ report that Trump is considering exiting the middle east conflict even if the Strait of Hormuz is not reopened; but the market is deciding whether this is a genuine intent to leave or another feint given the previous US attacks during negotiations and that Trump has yet to adjust his Apr 6 deadline. As of 8:00am, S&P futures are 1.1% higher, at session after approaching correction territory yesterday. Nasdaq futures rise 1%, with memory stocks lagging amid reports of DRAM prices plunging as much as 30%. In premarket trading, Mag7 names are higher as part of an ‘Everything Rally’ with bids to both Cyclicals and Defensives. In global markets, South Korea’s Kospi index slid 4.3%, entering a bear market as it extended its drop from a February high to 20%. SK Hynix Inc. slumped more than 7%.  Bond yields are down 3-5bp, with the 10Y yield down to 4.30% after nearly hitting 4.50% two days ago; the Dollar is also lower. Commodities are mixed with crude/gasoline mixed (US avg price rises above $4/gal vs. $2.98 one month ago), after fading an earlier bounce, highlighting the paralysis created by the continually shifting White House statements. Precious metals are rallying as base metals are mixed, and Ags are bid. The macro data focus will be on JOLTS and Consumer Confidence.

In premarket trading, Mag 7 stocks are all green (Meta +1.5%, Microsoft +1.6%, Alphabet +1.4%, Amazon +1.5%, Apple +0.8%, Nvidia +1.3%, Tesla +1%)

• Apellis Pharmaceuticals Inc. (APLS) soars 138% after Biogen Inc. agreed to acquire the company for $5.6 billion.
• Centessa Pharmaceuticals (CNTA) rises 48% after Eli Lilly & Co. agreed to buy the sleep drug maker in a deal worth up to $7.8 billion.
• FactSet Research Systems (FDS) gains 6% after the financial data company boosted its adjusted earnings-per-share forecast for the full year. It also reported adjusted EPS and revenue for the second quarter that beat expectations.
• McCormick (MCK) rises 1.8% after Unilever said talks to sell most of its food business to the maker of spices are advanced. McCormick reported earnings on Tuesday and made no mention of the Unilever deal.
• PepGen (PEPG) plunges 44% after the biotech gave clinical data from a mid-stage trial of its drug candidate for a type of muscle disease. Analysts say the data is mixed and Oppenheimer notes that the selloff might be overdone.
• Phreesia (PHR) tumbles 23% after the healthcare software company lowered its full-year revenue forecast far below the analyst consensus. At least four brokerages downgraded their rating on the stock.
• Scholar Rock (SRRK) rises 11% after the company resubmitted its biologics license application for apitegromab, a muscle-targeted therapy for children and adults with spinal muscular atrophy, to the US Food and Drug Administration.
• T1 Energy (TE) falls 17% after the solar equipment manufacturer reported a wider than expected fourth-quarter loss per share and higher-than-expected expenses.

Stocks are bouncing in the final session of a brutal month as traders welcome a WSJ report that Trump may be willing to end the Iran war even without reopening the Strait of Hormuz (although subsequent comments by Trump suggest that this is merely the latest bluff). Signs of an increased desire for de-escalation from Trump may reduce anxiety over his threats to attack Iranian energy infrastructure. On the other hand, Tehran would be left in control of the key oil shipment chokepoint. Meanwhile, Iran hit a fully laden Kuwaiti oil tanker off Dubai in a drone attack. 

Without a ceasefire or tangible progress in negotiations, the market will keep “fading the administration’s ‘everything is going well’ happy talk,” Vital Knowledge’s Adam Crisafulli wrote in a note. Carmignac Gestion’s Kevin Thozet observed that “Trump can’t simply turn an on/off switch on the crisis.” Other observers argue that rhetoric alone about a potential end to the conflict cannot create certainty for the market. 

In a social media post, Trump said Iran has “essentially” been decimated and that allies should either buy jet fuel from the US or “take it” from the Strait of Hormuz. Still, an Iranian drone strike on a fully laden Kuwaiti oil tanker off Dubai emphasized the continuing danger. “One can’t exclude a swift resolution, but it won’t mean going back exactly to where we were in February,” said Kevin Thozet, a member of the investment committee at Carmignac. “Investors are seeing the glass half-full. During the past 15 years or so, buying the dip has been absolutely key.”

Trump has repeatedly swung between saying a deal with Iran is close and warning he’s prepared to escalate the US campaign. On Monday, he threatened to target Iran’s energy infrastructure and desalination plants if the strait stays shut. He earlier set Tehran an April 6 deadline to reopen the waterway. “There’s clearly some complacency across the market; there’s no capitulation whatsoever to be found in flows, fundamentals or through a technical analysis,” said Karen Georges, an equity fund manager at Ecofi in Paris. “Despite the rise today, I would say the market is reluctant to take a strong directional bet.”

Equities are, nonetheless, primed to rip higher on positive news about the war following large-scale unwinding of risk by hedge funds and CTAs. The concern is that, post an initial bounce, worries about the economy and the path for interest rates will trigger further volatility episodes, setting up stocks for months of roller-coaster conditions. 

European stocks are also higher across the board in the wake of a WSJ report suggesting that US President Trump is willing to end the Iran war even if the Strait of Hormuz remains closed. The Stoxx 600 is set to end 1Q lower by just over 1% and down nearly 8% from February’s record high; mining and financial services stocks leading gains. Meanwhile, energy shares are the biggest laggards. Here are the biggest movers Tuesday:

• Demant rises as much as 4.5%, the biggest gainer in the Stoxx 600 Health Care Index on Tuesday morning, after Danske Bank upgraded its rating on the stock to buy from hold
• Unilever shares rise as much as 1%, trading only marginally higher than the May 2024 low reached last week, after the company confirmed discussions to sell most of its food business to McCormick
• 4iG shares rise as much as 15% after the Hungarian telecommunications and defense group says it is selling its 49% stake in Hirtenberger Defence to Czech peer CSG
• Borregaard shares rise as much as 4.9% after an upgrade to buy from Kepler Cheuvreux, which makes a series of changes to its ratings to favor what it sees as the more resilient names in the European chemicals sector
• Ashmore rose as much as 4.5% in London on Japan Post Insurance Co.’s plans to invest roughly $1 billion more in the British money manager’s emerging markets funds
• Pets at Home shares gain as much as 5.2%, the most in two months, after the specialist retailer reported progress in turning around its Retail arm
• Raspberry Pi shares rise as much as 30% after the maker of low-cost computers said revenues for 2026 are expected to be materially higher than current market expectations
• Future slumps as much as 30%, to the lowest since October 2017, after what JPMorgan describes as a weak first-half trading update
• Inventiva shares sink as much as 20% after the French biopharmaceutical company said it expected topline results of its late-stage clinical trial evaluating lanifibranor

Space is also making headlines this week, with Virgin Galactic soaring in late trading after it resumed some sales of commercial space flights. NASA is making final preparations for the Artemis II missions, while what a history-making SpaceX IPO could mean for the space economy is discussed in the Big Take podcast. In other corporate news, Unilever said talks to sell most of its food business to McCormick are advanced and a final deal could be announced later on Tuesday. Boeing will team up with Rheinmetall to offer drones known as the Ghost Bat to Germany’s military.

The Iran war’s impact on prices is beginning to show in economic data. The euro area saw its steepest jump in inflation since 2022 as the Iran war pushed energy costs sharply higher, reinforcing expectations that the European Central Bank will have to raise interest rates. Consumer prices rose 2.5% from a year ago in March – up from 1.9% the previous month and the highest since January 2025. Markets are pricing as many as three quarter-point hikes in the ECB’s deposit rate this year, from its current level of 2%.

“The March rise in inflation is likely the beginning of a sustained pickup,” wrote Bill Diviney, ABN Amro’s senior euro-zone economist. He expects the ECB to raise rates in April and June “in order to pre-empt any de-anchoring of inflation expectations.”

In Asia, a slump in chipmakers fueled stock losses after Monday’s rout in US-listed peers. South Korea’s Kospi index slid 4.3%, extending its drop from a February high to 20%. SK Hynix Inc. slumped more than 7%. US chipmakers such a Micron Technology Inc. and Sandisk Corp., meanwhile, underperformed in premarket trading.

In FX, the Bloomberg Dollar index falls. USD/JPY slips 0.2% to 159.37; Month-end flows make for choppy trading while hedge funds are rolling over short-term options exposure over the next week, Europe-based traders say. EUR/USD drops 2.9% this month, the most since July; it’s little changed on the day at 1.1469. AUD/USD rises as much as 0.3% to 0.6875 before paring gains; it’s up a fifth consecutive quarter, the longest winning streak since 2007.

In rates, treasury futures hold modest gains led belly sectors, with 5-year yields nearly 5bp richer on the day, outperforming European bonds. US session features several economic data points led by consumer confidence and JOLTS job openings, while Treasuries may receive support from month-end index rebalancing at 4pm New York time. US yields are at least 3bp richer across the curve with 5s30s spread wider by around 2bp as belly outperforms. 10-year, about 4bp lower near 4.31%, outperforms bunds and gilts. Continued belly outperformance trims 2s5s30s fly by nearly 3bp, adding to Monday’s 3.5bp drop. The below-expected euro-zone inflation data passed with little market reaction as traders await more evidence on the extent of the Iran war on price pressures.

In commodities, WTI crude oil futures have pared a 3.9% advance to multiyear high to about 0.4% and around $108 per barrel for the June contract following report that US President Trump is willing to end military operation in Iran even if Strait of Hormuz remains closed.  Spot gold is up for a third session in a row, higher by 0.8%. Bitcoin is down 0.5% after a brief foray below $66,000.  

US economic data calendar includes January FHFA house price index and S&P Cotality home prices (9am), March MNI Chicago PMI (9:45am, several minutes earlier for subscribers), March consumer confidence and February JOLTS job openings (10am) and March Dallas Fed services activity (10:30am). Fed speaker slate includes Goolsbee (12pm), Schmid (1:10pm), Barr (3pm) and Bowman (5:10pm)

Market Snapshot

• S&P 500 mini +0.9%
• Nasdaq 100 mini +0.8%
• Russell 2000 mini +1.4%
• Stoxx Europe 600 +0.7%
• DAX +0.7%, CAC 40 +0.5%
• 10-year Treasury yield -3 basis points at 4.32%
• VIX -1.7 points at 28.87
• Bloomberg Dollar Index little changed at 1221.56
• euro little changed at $1.147
• WTI crude -0.9% at $101.92/barrel

Top Overnight News

• US gasoline prices climbed above an average of $4 a gallon for the first time since August 2022, one of the most visible measures of consumer pain. BBG
• President Trump told aides he’s willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remains largely closed, administration officials said, likely extending Tehran’s firm grip on the waterway and leaving a complex operation to reopen it for a later date. WSJ
• The IRGC announced that the Strait of Hormuz is fully under the control of its soldiers, and “the slightest movement of the enemies will be hit by missiles and drones”, adding that “the operation continues”, IRGC’s public relations channel reported.
• Strait of Hormuz to be run by multinational coalition under White House plan, The Telegraph reported; Second proposal put forward by Pakistan and regional powers. Rubio stressed there would be “no fees, and free circulation” through the key shipping route, according to one interpretation of his intervention.
• Houthis in Yemen are monitoring American movements at bases in the Horn of Africa that may signal an imminent American move in the Red Sea, according to Israeli Radio journalist. According to the Yemeni intelligence sources, Washington intends to create a maritime security zone in the Red Sea region and the base in Djibouti will become the center of command and control and rapid intervention. Yemeni officers said that there are American movements in order to bring the Red Sea and the Bab al-Mandab strait into the campaign.
• Chinese suppliers say they’re raising prices for their goods because of the recent swings in oil prices resulting from the Iran war and closure of the Strait of Hormuz. A prolonged impasse in the critical waterway also raises the possibility of product shortages. CNBC
• A gauge of activity in China’s sprawling manufacturing sector returned to expansion in March in part thanks to seasonal factors, but as the war in the Middle East raises supply shock risks, businesses are starting to feel the pressure. China saw manufacturing (50.4, up from 49 in Feb and ahead of the consensus forecast of 50.1) and non-manufacturing (50.1, up from 49.5 in Feb and ahead of the consensus forecast of 49.9). WSJ
• Unilever is in advanced talks to combine its food unit with McCormick, in a deal that may include a $15.7 billion upfront cash component and McCormick shares. The agreement may be announced today. BBG
• Euro-area inflation jumped the most since 2022 as the Iran war pushed energy costs sharply higher. It quickened to 2.5% this month, up from 1.9% the previous month. BBG
• Iran is pushing the Houthis to prepare for a renewed campaign against Red Sea shipping, contingent upon any further escalation by the US in its war on the Islamic Republic. BBG
• Eli Lilly To Acquire Centessa Pharmaceuticals For $38.00 In Cash Per Share Plus One Non-Transferrable Contingent Value Right. BBG
• States are pushing ahead with their own AI regulations despite warnings from the White House to allow the federal government to set rules for the industry. NYT

A more detailed look at global markets courtesy of Newqsuawk

APAC stocks were mixed with some indecision seen amid fluctuations in oil and mixed geopolitical headlines, including US President Trump’s threats to obliterate Iran’s energy infrastructure if a deal is not made soon, although he was also reported to have told aides he is willing to end the military operation in Iran without reopening Hormuz. ASX 200 rallied with gains led by strength in tech, telecoms and financials, while there was little impact from the RBA minutes, which stated that board members agreed financial conditions needed to be restrictive and that a further tightening would likely be needed, but disagreed on whether to hike at the meeting. Furthermore, members agreed that it is not possible to predict the future path of the cash rate with any confidence, given the Middle East conflict. Nikkei 225 retreated at the open but is off lows amid mixed data and fluctuations in oil. Hang Seng and Shanghai Comp failed to sustain early gains and dipped into negative territory despite better-than-expected Chinese official PMI data, and with participants reflecting on a deluge of earnings releases.

Top Asian News

• Chinese NBS Non-Manufacturing PMI (Mar) 50.1 vs. Exp. 49.9 (Prev. 49.5).
• Chinese NBS General PMI (Mar) 50.5 vs. Exp. 50.2 (Prev. 49.5).
• Chinese NBS Manufacturing PMI (Mar) 50.4 vs. Exp. 50 (Prev. 49.0, Low. 48.8, High. 50.5).
• Japanese Tokyo CPI YoY (Mar) Y/Y 1.4% vs. Exp. 1.7% (Prev. 1.6%).
• Japanese Tokyo Core CPI YoY (Mar) Y/Y 1.7% vs. Exp. 1.8% (Prev. 1.8%, Low. 1.6%, High. 2.1%).
• Japanese Tokyo CPI Ex Fresh Food and Energy YoY (Mar) Y/Y 2.3% vs. Exp. 2.4% (Prev. 2.5%).
• Japanese Retail Sales YoY (Feb) Y/Y -0.2% vs. Exp. 0.8% (Prev. 1.8%, Low. -1.1%, High. 1.3%).
• Japanese Retail Sales MoM (Feb) M/M -2.0% vs. Exp. -0.9% (Prev. 4.1%).

European bourses (STOXX 600 +0.9%) continue to rebound, as the STOXX 600 bounces out of correction territory. The IBEX 35 and DAX 40 outperform, while the AEX is the slight laggard due to losses in ASML. European sectors are entirely in the green, ex. Energy. Basic Resources and Financial Services top the sector pile. While a rebound in metals prices supports Basic Resources, UBS is amongst the banks supporting financials after the FT reported that Swiss lawmakers have signalled some compromise on its USD 22bln capital plan.

Top European News

• German institutes to cut 2026 economic growth forecasts amid the Iranian war, Reuters sources suggest; 2026 growth outlook seen at 0.6% (prev. 1.2%), 2027 growth seen at 0.9% (prev. 1.4%). CPI is seen at 2.8% for 2026 and 2027. Iranian war and energy costs were cited as the reasons for the cuts.

NOTABLE EUROPEAN DATA RECAP

FX

• DXY lacks direction, and holds within a 100.30-100.64 range; the peak for today was made overnight, but then sank from these levels on reports via the WSJ, which suggested that US President Trump told aides he’s willing to end the war without reopening Hormuz. A factor which clearly indicates some early signs of easing tensions, though it raises concerns regarding the future governance of the Strait itself. DXY swung from peaks to troughs within an hour of the report, before then gradually pushing back towards the mid-point of the aforementioned range, as the European session got underway. Focus from a US standpoint now turns to US JOLTS, which are expected to ease to 6.87mln (from 6.946mln). A slew of Fed speakers are also on the docket, including Bowman, Barr, Goolsbee and Schmid.
• G10s are mixed against the USD. GBP is the marginal outperformer, potentially benefiting from the lower energy prices, which somewhat alleviates growth-related concerns, at least for now. Sticking on the growth front, Final UK GDP growth in Q4 printed 1% Y/Y (exp. 1%, prev. 1.2%) – a report which spurred no move in Cable. To the bottom of the pile reside the CHF and Kiwi, albeit losses are incremental at this stage.
• Elsewhere, EUR is steady, and was little moved to a resilient German jobs report, whilst a cooler-than-expected EZ inflation metric spurred some pressure in the single currency. In a bit more detail, headline Y/Y jumped to 2.5% (prev. 1.9%) and a touch beneath the consensus. As is the case across Europe, the surge in inflation has been attributed to the recent strength in energy prices; for reference, the core figure actually cooled from the prior to 2.3% (prev. 2.4%). EUR/USD fell to 1.1462 post-day before scaling back a touch. The ECB will welcome this report, given that it favours a “wait and see” approach.
• JPY is flat this morning, after relative outperformance in the prior session, spurred by jawboning. USD/JPY currently resides within a 159.48-159.97 range, and towards the lower end of the prior day’s session. Overnight, the release of softer-than-expected Retail Sales and slower Tokyo inflation had a limited impact on the JPY – ING opines that the inflation figure will not “deter BoJ’s April hike”; analysts opine that the trifecta of 1) surging oil prices, 2) weak JPY and 3) rising Shunto wage growth, all play in favour of a near-term hike. Attention now turns to the Tankan survey on Wednesday, a report which policy members brought to focus at the last BoJ confab.

Fixed Income

• Fixed income on a firmer footing as energy benchmarks initially pulled back, though WTI remains above USD 100/bbl, Brent above USD 105/bbl and Dutch TTF north of USD 50/MWh. The main update came via the WSJ, reporting that US President Trump told his aides that he is willing to end the conflict even without reopening the Strait of Hormuz. The move towards potentially ending the conflict has weighed on energy and, in turn, pressured yields. However, the uncertainty around Hormuz means the energy, and by association, price risks have not meaningfully diminished at this point.
• USTs are firmer but off best levels, and within 110-22+ to 111-02 parameters. Ahead, the docket is headlined by Fed speak; however, the events/topics involved somewhat diminish the likelihood of pertinent updates.
• Bunds follow global action. Initially stronger, before giving back some of the earlier gains heading into the EZ inflation measures for March – a report which encapsulates the early impact of the Iran war, and the surge in energy prices. In brief, headline Y/Y was cooler-than-expected, and plays in favour of the ECB’s “wait and see approach”. In reaction, Bunds ticked higher by a handful of ticks, though the move proved fleeting.
• Gilts in-fitting with peers. Firmer by around 50 ticks at best but have given up around half of that and are below the 88.00 mark in 87.65-88.23 parameters. No reaction to the final Q4 GDP series, or a slight upward revision to the 2025 total.
• Germany sells EUR 3.811bln vs exp. EUR 5.0bln 2.10% 2028 Schatz: b/c 1.5x (prev. 1.61x), average yield 2.62% (prev. 2.72%), retention 23.78% (prev. 22.6%).
• BoJ said it plans to buy JPY 255bln of 1–3 year JGBs three times a month in April–June (prev. JPY 270bln, three times); JPY 230bln of 3–5 year JGBs three times a month (prev. JPY 245bln, three times). Plans to buy JPY 80bln of 10–25 year JGBs three times a month in April–June (prev. JPY 95bln, three times). Plans to buy JPY 75bln of JGBs 25+ years of maturity two times a month (prev. JPY 75bln, two times).

Commodities

• Crude futures are incrementally firmer this morning after reversing earlier losses despite light newsflow. WTI May’26 resides in a USD 100.83-107.15/bbl range, whilst Brent June’26 holds within a USD 104.72-109.99/bbl. Worth noting that in recent trade benchmarks are moving a touch higher, extending further into the green.
• Overnight, the complex dipped after the WSJ reported that US President Trump told aides he is willing to end the US military operation in Iran even if the Strait of Hormuz is not reopened. Do note the IRGC continues to provide hardline commentary, with attacks on Gulf countries ongoing. Geopolitics aside, some strength was seen in the crude complex after data showed that Oman’s crude OSP jumped USD 55.90/bbl.
• Spot gold rose after comments from Fed Chair Powell and Williams indicated policy remains in a good place, helping to temper rate-hike expectations; the bullion climbed before paring gains to trade near USD 4,555/oz, with the yellow metal currently holding in a USD 4,482.66-4,619.25/oz range at the time of writing. Goldman Sachs said gold could reach USD 5,400/oz by year-end, citing low speculative positioning, expectations for two Fed rate cuts and ongoing central bank demand, with official-sector buying seen at around 60 tonnes per month.
• Copper futures marginally benefitted from hopes of an earlier end to the Middle East conflict and after Chinese PMI data topped forecast, but then pared gains given the ongoing uncertainty in the Middle East conflict. 3M LME copper trades in a USD 12,122.00- 12,286.95/t range. Aluminium once again outperforms on the LME amid supply woes from the Middle East after Emirates Global Aluminium and Aluminium Bahrain were both targeted by Iran.
• Oman’s crude OSP at USD 124.05/bbl for May (vs USD 68.15/bbl for April), +USD 55.90/bbl, GME data shows.
• EU countries should prepare for prolonged disruption to energy markets from the Iran war, the EU energy commissioner said in a letter to EU energy ministers. Immediate impact on EU energy security of supply remains contained. EU countries should delay any non-emergency refinery maintenance. Countries should avoid measures that would increase fuel consumption or curb EU refinery output.
• South Africa’s Finance Minister is considering lowering the fuel levy, with the decision to be announced on Tuesday, according to a Government official.
• Libya’s National Oil Corporation said full production resumed at the Sharara and El Feel oilfields.
• Guyana oil production averaged 915k BPD in January and 918k BPD in February.
• Goldman Sachs expects gold to reach USD 5,400/oz by the end of 2026. Low speculative positioning and two Fed rate cuts to support this view. Projects around 60 tonnes of central bank buying per month.

Central Banks

• Fed’s Williams (voter) said uncertainty around inflation path is ‘high’ but the economy has been more resilient than expected and the base outlook for the economy has been good. Tariffs and Iran war will push up headline inflation. Expects the unemployment rate to edge down this year and next. Economy facing ‘unusual set of circumstances’. Expects higher headline inflation near term on war and tariffs. War could both push up inflation, and depress growth. Inflation expectations consistent with 2% inflation. Expects US GDP to be 2.5% this year amid help from various factors. Expects inflation to end this year at 2.75%, and back to 2% in 2027. Economy has been resilient among changes. No signs of second round inflation impact from tariffs. Low hiring rate might be boosting economic pessimism. Job market sending out mixed signals.
• ECB’s Muller said it is probable that rates will rise in the coming quarters, an April rate hike cannot be ruled out and reiterates that a hike may be needed if energy prices stay high.
• ECB’s Panetta warns against second-round wage effects; says monetary policy is better positioned vs 2022.
• RBA Minutes from March meeting stated that board members agreed financial conditions needed to be restrictive and that a further tightening would likely be needed but disagreed on whether to hike at the meeting. Agreed it is not possible to predict the future path of the cash rate with any confidence given the Middle East conflict. Rise in oil prices increased risk inflation would remain above target for a prolonged period. Oil prices around USD 100 would lift annual CPI inflation to around 5% in the June quarter. Rate hike could reduce the risk oil shock would flow into inflation expectations.
• PBoC is to maintain moderately loose monetary policy with stronger counter-cyclical adjustments, reiterates to make use of various tools in monetary policy control and to maintain ample liquidity and keep CNY stable.
• BoK Governor nominee Shin sees Middle East crisis as risk to the Korean economy and said inflationary pressure from extra budgets is limited, adds KRW liquidity is good and external factors affecting KRW have improved considerably.

Geopolitics

• US President Trump tells aides he’s willing to end the war without reopening Hormuz, according to the Wall Street Journal.
• The IRGC announced that the Strait of Hormuz is fully under the control of its soldiers, and “the slightest movement of the enemies will be hit by missiles and drones”, adding that “the operation continues”, IRGC’s public relations channel reported.
• Strait of Hormuz to be run by multinational coalition under White House plan, The Telegraph reported; Second proposal put forward by Pakistan and regional powers. Rubio stressed there would be “no fees, and free circulation” through the key shipping route, according to one interpretation of his intervention.
• Israeli PM Netanyahu said it is possible to bypass the Strait of Hormuz issue and that economic interests exist to ensure free flow of oil and gas, while ideas have been proposed for post-war transfer of energy from Persian Gulf to Mediterranean ports.
• Israeli PM Netanyahu said Iran’s enriched uranium is Trump’s focus right now and US is leading military options to open Strait of Hormuz. Refuses to set any timeline on ending the Iran war.
• Israel Military Spokesperson said “we are prepared to keep operating for weeks to come”.
• Houthis in Yemen are monitoring American movements at bases in the Horn of Africa that may signal an imminent American move in the Red Sea, according to Israeli Radio journalist. According to the Yemeni intelligence sources, Washington intends to create a maritime security zone in the Red Sea region and the base in Djibouti will become the center of command and control and rapid intervention. Yemeni officers said that there are American movements in order to bring the Red Sea and the Bab al-Mandab strait into the campaign.
• Iran’s Ministry of Foreign Affairs denied US President Trump’s assertions that Washington and Tehran were engaged in talks, according to WSJ.
• One of Iran’s desalination plants on Qeshm Island is out of service since the strike and short-term repairs are deemed impossible, Borna reported citing a Health Ministry official.
• US reportedly attacks large ammunition depot in Isfahan, Iran, according to WSJ.
• Drone crashes in an open area at Iraq’s West Qurna 1 oilfield without exploding, state news reported.
• Chinese Foreign Ministry said three Chinese ships recently sailed through the Strait of Hormuz.
• Saudi Arabia intercepts 10 drones, Al Jazeera reported.
• Power outage hits east of Tehran following explosions.
• Explosions heard in Iraq’s Sulaymaniyah province and from US HQ in Baghdad’s Victoria base, according to Tasnim.
• Italy denies the US use of its Sigonella naval air station, according to Italian press.
• Russia’s Foreign Minister Lavrov says the Middle East crisis may spill over into a wider conflict.

US Event Calendar

• 9:00 am: Jan FHFA House Price Index MoM, est. 0.1%, prior 0.1%
• 9:45 am: Mar MNI Chicago PMI, est. 55, prior 57.7
• 10:00 am: Mar Conf. Board Consumer Confidence, est. 87.9, prior 91.2
• 10:00 am: Feb JOLTS Job Openings, est. 6890k, prior 6946k
• 12:00 pm: Fed’s Goolsbee Gives Opening Remarks at Eco Mobility Project
• 1:10 pm: Fed’s Schmid Speaks on Monetary Policy and Economic Outlook
• 3:00 pm: Fed’s Barr Discusses Stablecoin Regulation
• 5:10 pm: Fed’s Bowman Speaks on Small Business

DB’s Jim Reid concludes the overnight wrap

The market tone has become decidedly more positive overnight, with the driver being a Wall Street Journal report saying that President Trump had told aides he was willing to end the US military campaign against Iran, even if the Strait of Hormuz remained largely closed. So that’s raised hopes that the current phase of the conflict will wind down soon, and we’ve seen a clear market reaction in response. Most obviously, Brent crude oil futures have slipped back, coming down above $115/bbl before the article came out, to $113.04/bbl as we go to press. Moreover, equity and bond markets have rallied too, with S&P 500 futures up +0.80% this morning, whilst the 10yr Treasury yield is down another -2.4bps to 4.32%.

According to the WSJ article, Trump and his aides assessed that a mission to open the Strait of Hormuz would push the conflict beyond the four to six week timeline, and Trump had decided that the US should achieve its main goals of degrading Iran’s navy and missile stocks, and continue to pressure Iran diplomatically to resume trade flows. So even though the Strait of Hormuz wouldn’t return to normal in that scenario, markets still took the report positively, because it raised the perceived probability that the conflict might soon end, avoiding the more escalatory scenarios like further damage to energy infrastructure.

That said, the overnight newsflow hasn’t been entirely positive. Notably, oil prices had moved higher before the WSJ article, because Kuwait Petroleum Corp said that an oil tanker was attacked by Iran in a Dubai port. And in Asia, equity markets are down across the board, with losses for the KOSPI (-3.41%), the Nikkei (-1.16%), the Hang Seng (-0.51%), the CSI 300 (-0.58%) and the Shanghai Comp (-0.38%). That’s come despite a modest upside surprise in China’s official PMIs, with the manufacturing PMI at a one-year high of 50.4 (vs. 50.1 expected), whilst the non-manufacturing PMI rose to 50.1 (vs. 49.9 expected).

That overnight newsflow adds to the mixed signals markets have been getting over the last 24 hours. Indeed, Trump posted yesterday that if a deal weren’t reached shortly with Iran, and if the Strait of Hormuz weren’t opened, then the US would target “all of their Electric Generating Plants, Oil Wells and Kharg Island”. But in the same post, he also said that the US was “in serious discussions with a new, and more reasonable, regime to end our military operations in Iran”, which added to hopes for a negotiated settlement. So given there were signs pointing in both directions, markets were fairly steady in response. We also heard that Pakistan’s Foreign Minister will be visiting China today, after his meeting with officials from Egypt, Saudi Arabia and Turkey over the weekend, raising questions whether Beijing might play a role in guaranteeing any possible future ceasefire.

Given the competing headlines, Brent crude ended yesterday broadly flat, although it was still up +0.19% to $112.78/bbl, marking its highest closing level since July 2022. That came alongside a more pronounced rise for WTI (+3.25%), which also closed above $100/bbl for the first time since July 2022, at $102.88/bbl. Indeed, we’re now at the last day of Q1, and despite the overnight stabilisation in oil prices, Brent crude is on track for its biggest quarterly gain since Q3 1990 when the Gulf War began, having risen over +85% this quarter as it stands. So that outpaces the +81% bounce in Q2 2020, when oil prices recovered after more than halving in March 2020 as the pandemic moved into its most serious phase.

Otherwise, rates markets put in a decent performance yesterday, with investors turning their focus towards the dovish implications from a potential growth shock, rather than inflation. In addition, we heard from Fed Chair Powell, whose comments were interpreted dovishly, saying that inflation expectations were “well anchored beyond the short term”. So that eased fears that the Fed would rush to hike, and he also said that “policy is in a good place for us to wait and see”. Later on, we also heard similar comments from New York Fed President Williams who said “policy is well positioned” and that long-term inflation expectations were consistent with the Fed’s 2% goal.

That backdrop meant investors priced out the chance of central bank rate hikes this year. For example, Fed futures were expecting 3bps of rate cuts by December at the close, a change from much of last week when they were pricing in rate hikes this year. Meanwhile at the ECB, the number of hikes this year also fell from 76bps on Friday to 74bps by the close. So even though Brent crude was basically steady yesterday, the market tone became noticeably less hawkish.

With fewer rate hikes priced in, that also helped to bring yields down on both sides of the Atlantic. That was particularly clear for US Treasuries, where the 10yr yield (-8.0bps) saw its biggest decline since the start of the conflict, falling back to 4.35%. It was a similar story in Europe, where 10yr bund yields (-5.8bps) fell back from their post-2011 high to 3.03%, whilst 10yr OATs (-6.5bps) fell from their post-2009 high to 3.77%. Interestingly, there was also a marked decline in real yields, with the US 10yr real yield (-6.9bps) down to 2.04%. But even with yesterday’s rally, 10yr Treasury yields are still on course for their biggest monthly jump since 2024, with the 10yr yield up by +39bps since the end of February.

Despite the bond rally, equities had a more mixed session on Monday. European stocks outperformed, with the STOXX 600 (+0.94%), the FTSE 100 (+1.61%) and the DAX (+1.18%) all seeing solid gains. However, the market mood deteriorated after Europe went home and the S&P 500 ultimately closed -0.39% lower on the day, despite trading +0.92% at the open. So that left the S&P 500 within 1% of technical correction territory, down -9.10% from its late January peak. A large part of yesterday’s decline came due to a slump in chips stocks, with the Philadelphia Semiconductor Index down by -4.23%, even as most S&P 500 constituents closed higher on the day supported by lower nominal and real yields.

Otherwise yesterday, we did get a few data releases. In Germany, the flash CPI print moved up as expected in March, with the EU-harmonised measure rising to +2.8%, having been at +2.0% in February. We’ll get the Euro Area-wide print later this morning, so that’s one to keep an eye on for the ECB, particularly with pricing for a rate hike in the balance currently. Over in the US, we also had the Dallas Fed’s manufacturing index, which fell to -0.2 in March (vs. 2.0 expected).

Looking at the day ahead now, and data releases include the Euro Area flash CPI print for March, German unemployment for March, the US Conference Board’s consumer confidence indicator for March, the JOLTS job openings for February, and the FHFA house price index for January. From central banks, we’ll hear from the Fed’s Goolsbee, Barr and Bowman, and the ECB’s Panetta, Muller, Kazimir and Sleijpen.

The overnight Wall Street Journal report that President Trump told aides he is willing to wind down the U.S. military campaign against Iran even if the Strait of Hormuz remains disrupted (and appeared to confirm this narrative in a social media post this morning) comes just as the national average gasoline price hit the politically sensitive $4-a-gallon threshold, underscoring the delicate balancing act the administration is facing in managing battlefield objectives and domestic fuel costs.

The latest AAA data shows gasoline prices nationwide topped $4 a gallon on Monday, a 35% increase for Regular 87 at the pump and the largest price shock on record dating back to 2004.

Regular 87 gasoline prices at the pump nationwide have returned to the price shock levels seen during the 2022 Russia-Ukraine crisis.

Largest monthly price shock on record.

Early last week, Bonnie Herzog, managing director and senior consumer analyst at Goldman Sachs, wrote in a note that when fuel prices spike to these “psychological threshold” levels, above $3 and approaching $4 a gallon, consumers tend to drive less and fill up their tanks less frequently.

“Historically, when retail gas prices increase (especially above the $3/gal psychological threshold, although that’s been rebased higher), consumers make the concerted decision to drive less, don’t always fill up their tanks (i.e., lower fill rates),” Herzog told clients.

But Herzog pointed back to history, noting that the real demand destruction for drivers comes when gasoline prices at the pump reach $5 a gallon.

She noted, “Further, we recognize that, in times of a significantly rising fuel-price environment, consumers may opt to trade down the fuel-price spectrum (i.e., from premium to regular).”

Furthermore, AAA data shows the national average diesel price has surged 45% this month to $5.45 per gallon. That marks the largest spike on record.

The price shock is already sending shockwaves through the real economy. Diesel powers the industrial backbone of the nation: trucking fleets, rail networks, shipping, farm equipment, construction machinery, backup generators, and broad segments of heavy logistics. When diesel prices spike this quickly, cost shock hits companies at the pump, with logistics firms passing fuel surcharges on to customers.

We warned readers on Monday about the unfolding “global demand destruction” and noted that the energy shock was already beginning to ripple outward from Asia.

Authored by Zachary Stieber via The Epoch Times,

A judge in Delaware on March 30 said she is reassigning cases involving Elon Musk after she was accused of being biased against him.

Delaware Court of Chancery Chancellor Kathaleen McCormick said in a letter to lawyers that she was taking the step because “disproportionate media attention surrounding a judge’s handling of an action is detrimental to the administration of justice.”

Attorneys representing Musk recently filed a motion for recusal or reassignment, pointing to how McCormick on LinkedIn had clicked that she supported a post that celebrated a 2026 ruling against Musk in California. The post, from a jury consultant, said “sorry, Elon,” and congratulated the legal firms that represented the plaintiff in the case as “standing up for the little guy against the richest man in the world.”

“Defendants cannot ignore the recent reaction by this Court to LinkedIn posts attacking Mr. Musk and his chosen counsel, regarding a case with overlapping factual allegations in the consolidated matter, and that bears directly on the appearance of impartiality in these actions,” Musk’s attorneys wrote in their motion.

McCormick had in 2024 ruled that a compensation package for Musk as CEO of Tesla agreed to by the Tesla board of directors was too large, a decision later overturned by the Delaware Supreme Court.

McCormick initially said that she did not click to support the LinkedIn post in question.

“I either did not click the ’support‘ icon at all, or I did so accidentally. I do not believe that I did it accidentally,” the judge wrote in a previous letter to lawyers.

“So, after learning of this issue last night, I logged into LinkedIn, searched for the post based on the screenshot, and tried to make sure that the support icon was not ’clicked on.’ I then reported the suspicious activity to LinkedIn.”

LinkedIn did not respond to a request for comment by time of publication.

The judge said she would review the motion, and on Monday agreed to reassign the cases.

However, McCormick maintained that she was not biased against Musk.

“The motion for recusal rests on a false premise—that I support a LinkedIn post about Mr. Musk, which I do not in fact support,” she wrote.

“I am not biased against the defendants in these actions. In fact, I dismissed a suit against Mr. Musk just last year.”

Lawyers for Musk declined to comment on the development. Musk had not appeared to remark on the reassignment on X, which he owns and on which he frequently posts.

* * * Give this a shot. Full refund if it doesn’t work. 

Summary

• WarSec Hegseth saw “upcoming days will be decisive”, strikes will continues without any deal

• President Trump signals off-ramp, tells world “go get your own oil”, says Iran ‘decimated’

*  *  *

Secretary of War Hegseth Says ‘Upcoming Days Will Be Decisive’, ‘Damaging Iran Military Morale’

WarSec Hegseth’s comments were not quite a “Mission Accomplished” but definitely a reflection on the courage and completion of “systematically destroy” Iran’s military capabilities.

Here are Hegseth’s key points (via Bloomberg):

• HEGSETH: VISITED TROOPS FIGHTING IN IRAN OPERATION OVER WEEKEND

• HEGSETH: AMERICAN FIREPOWER INCREASING, IRAN’S DECREASING

• HEGSETH: UPCOMING DAYS WILL BE DECISIVE

• HEGSETH: IRAN WILL STILL SHOOT SOME MISSILES, WE WILL SHOOT DOWN

• HEGSETH: OUR STRIKES DAMAGING IRAN MILITARY MORALE

• HEGSETH: STRIKES LEADING TO WIDESPREAD IRAN MILITARY DESERTIONS

• HEGSETH: REGIME CHANGE HAS OCCURRED IN IRAN

• HEGSETH: IF IRAN ISN’T WILLING TO MAKE DEAL, US WILL CONTINUE

• HEGSETH: US STRIKES WILL CONTINUE W/ MORE INTENSITY W/O DEAL

Watch the feed here:

*  *  *

Off-Ramp Imminent? Trump Tells World “Go Get Your Own Oil” Via Strait After ‘Decimating’ Iran

There’s been a lot of speculation that the White House is preparing to find a ‘mission accomplished’ declaration moment, as ‘any offramp will do’ as a way to avoid a costly potential quagmire of introducing ground troops, and we may be seeing the start of one.

After comments apparently leaked to The Wall Street Journal overnight that Trump is willing to leave Iran with the Strait unopened, the President has clarified his thinking in his out loud voice this morning.

President Trump has posted on social media this morning, clearly signaling he is further down the road towards an off-ramp:

All of those countries that can’t get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to get involved in the decapitation of Iran, I have a suggestion for you:

Number 1, buy from the U.S., we have plenty, and

Number 2, build up some delayed courage, go to the Strait, and just TAKE IT.

You’ll have to start learning how to fight for yourself, the U.S.A. won’t be there to help you anymore, just like you weren’t there for us.

Iran has been, essentially, decimated.

The hard part is done. Go get your own oil!

President DJT

The reaction was a drop in the price of oil…

…and stocks rising…

Nothing dramatic in either – as traders remain nervous of Trump-Talk still – but nevertheless, as Goldman’s Rich Privorotsky noted overnight (in a seemingly precognitive comment before Trump’s tweet), this is shaping up like an off-ramp:

After ~5 weeks of conflict “President Trump told aides he’s willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remains largely closed” (WSJ).

Politically messy (especially in GCC…less so domestically), but probably the least bad short-term pathway (can argue LT worse).

There’s a press conference at 8am EST from the Defense Department.

Overnight saw meaningful escalation… Iran struck a heavily laden oil tanker in Dubai port… a very explicit signal around control of shipping.

Likely in response to US actions around nuclear facilities in Isfahan

(Trump on his Truth Social posted uncaptioned video of large explosion 5 hours ago).

BREAKING 🚨: US dropped 2000 lb bomb over #Tehran#Trump and #netanyahu destroying #Iran#IranWar‌ #ısrael pic.twitter.com/7CbrsHtqGu

— Pak-China Today (@PakChinaToday) March 31, 2026

The most bullish near term outcome would be a “mission accomplished” style announcement…

i.e. nuclear capabilities set back materially (say 10–20 years), allowing the US to step away.

No edge here, frankly could be anything but will be watching.  

…

The key shift then remains the Strait.

If the US pauses while Iran maintains some level of disruption, the pressure flips… China, Korea, Japan, India, Europe and the GCC all become directly incentivized to force flows back online.

Even partial restrictions (e.g. US/Israeli vessels) are manageable…so a unilateral victory could actually restart flows and shift pressure to ROW to get strait moving. 

Watch the live feed here:

Unilever Plc confirmed it is “now in advanced discussions” with Maryland-based spice maker McCormick & Company to sell its food business unit in a $15.7 billion transaction and said a final deal could be announced as soon as today. 

“The Company is now in advanced discussions with McCormick & Company (“McCormick”) regarding a potential transaction,” the Anglo-Dutch consumer goods company wrote in a press release.

Unilever noted, “Work remains ongoing to agree and finalise a transaction and it is possible that an agreement could be concluded today, although there can be no certainty that a transaction will be agreed.”

Unilever explained that if the “transaction were to proceed,” it would combine most of its food business unit, excluding certain assets such as those in India, with the Hunt Valley-based spice company in a transaction valued at $15.7 billion.

After closing, Unilever and its shareholders are expected to own 65% of the combined company. The deal would be structured as a Reverse Morris Trust, making it tax-free for U.S. federal income tax purposes for Unilever and its shareholders.

The transaction is a big move for the spice company, known across the U.S. East Coast for its Old Bay seasoning and other brands such as French’s mustard and Frank’s RedHot. 

McCormick is a much smaller company whose business generates about half of Unilever’s food unit. But the proposed transaction comes as Unilever pivots further toward beauty, personal care, and home products – higher margin items – while transforming McCormick into a major food player.

Wall Street analysts are mixed. 

“We aren’t overly impressed by what we can see of Unilever’s potential disposal of its food business,” RBC Capital Markets analyst James Edwardes Jones told clients earlier. He added that the current deal means Unilever has full ownership of a division dominated by its own two brands, Hellmann’s mayonnaise and Knorr stock cubes.

Jones added that Unilever will have less ownership of a company with an even bigger brand portfolio. He said, “We are not sure of the justification for introducing partial ownership of a less concentrated business.”

Let’s remind readers that Unilever’s pivot into beauty also comes as blockbuster GLP-1 weight-loss drugs sweep the nation and become more affordable, which means Americans are reducing their caloric intake.

Unilever shares in London are up 1%, while McCormick shares in premarket trading in New York are up 4%.

When the proposed deal first surfaced in financial outlets earlier this month, Goldman analyst Natasha de la Grense had “lots of questions on structure” of the proposed deal (read note).

In addition to the Unilever-McCormick proposed deal that could soon be finalized, there were reports that the Anglo-Dutch consumer goods company will freeze hiring worldwide because of price shocks stemming from the US-Iran conflict.

Shoptalk, one of the retail and e-commerce industry’s top U.S. conferences, took place in Las Vegas last week, where Goldman analysts had one key takeaway for clients on Monday morning: AI is beginning to reshape how consumers shop. 

Analysts Brooke Roach and Kate McShane, among others, attended the conference and listened to retailers, consumer brands, and technology vendors focus on the evolving consumer space in the era of AI.

Their top takeaway was that AI is emerging as a “new front door to commerce,” and instead of beginning product searches on Google or Amazon, an increasing number of consumers are turning to chatbots to decide what to buy.

“Brands and retailers noted that consumers are increasingly beginning their shopping journey inside AI platforms rather than on brand websites or search engines, with adoption accelerating rapidly over the past several months,” the analyst noted. 

Here are more takeaways from Goldman’s analysts after attending Shoptalk:

The front door to commerce is shifting to AI

• Brands and retailers noted that consumers are increasingly beginning their shopping journey inside AI platforms rather than on brand websites or search engines, with adoption accelerating rapidly over the past several months.

• GAP stated it is seeing stronger purchase intent and higher conversion from customers arriving through agentic channels, and described itself as explicitly not in a wait-and-see mode. The company also noted it is an early partner on Google’s Universal Commerce Protocol, which allows the merchant to bring its own experience including loyalty, promotions, and cart capabilities directly into LLM environments, rather than pushing users to a generic external destination.

Enhancing consumer relevance and enabling product research / purchase decisions

• Brands noted that becoming relevant within LLMs is a different challenge from search engine optimization, as LLM crawlers ingest content differently and are blocked more often than classic search crawlers.

• Sephora announced the launch of its own app inside ChatGPT, which allows users to connect their Sephora accounts and receive personalized beauty advice (e.g., skin type, shade matching). Management is currently experimenting with their entire ecosystem, and is using AI as another channel to extend their core proposition of being a trusted beauty advisor.

• Behr partnered with Google’s Gemini to launch a paint visualizer designed to help DIY customers overcome color paralysis and feel confident in their purchases.

• HD has a shopping agent called Magic Apron, designed to help customers find easy answers on home improvement projects.

• LOW is using their AI-shopping assistant MyLow to help associates in stores and deliver personalized recommendations to the customers. Management noted that customer expectations are changing, as they now expect comprehensive answers, not just keyword-based results.

Trust and authenticity increasingly important

• RDDT noted that consumer trust in online information is declining, as users are rejecting AI-generated content given its tendency to regurgitate information from other sources. Consumers value authentic perspectives and are turning to their platform for experience-based answers.

• AEO emphasized the importance of continuously testing marketing creatives with customers and being attentive to what resonates and what doesn’t. They found that AI-generated content must be clearly identifiable on the platform, so customers can trust that the company is not attempting to deceive them.

As consumers shift product searches from traditional Google queries to AI-powered answer engines, the brands and platforms that establish an AI presence first could capture meaningful tailwinds.

Professional subscribers can find the full list of stocks Goldman analysts believe are “well-positioned to benefit” here at our new Marketdesk.ai portal. 

Authored by Hamza Zaman via RealClearDefense,

The Iran conflict continues to protract despite President Trump’s assumption of a quick and easy victory.

The goals of regime change and the decimation of the Iranian ballistic missile program remain unfulfilled, and the closure of the Strait of Hormuz further adds to the strategic qualms of the Western powers.

The GCC states are also facing significant damage to their services industry, transport infrastructure and energy sector.

While both sides suffer great losses in this protracted conflict, America’s biggest geopolitical rival – China – seems to be gaining palpable economic and strategic benefits from the ongoing conflict in the Middle East.

Challenges to Petrodollar and Yuan’s Rise against U.S. Dollar

Iranian strikes on GCC energy infrastructure, in retaliation for Israeli strikes on Iranian oil refineries and gas infrastructure, sent shockwaves through global energy supply chains. This resulted in supply chain disruptions, shortages, rationing and price hikes. These energy supplies are traded in U.S. dollars and constitute a discernible source of demand for the U.S. dollar. The closure of the Strait of Hormuz further amplifies supply chain disruption, forcing buyers to choose alternative sources, including Russia. Iran’s announcement of a safe passage for oil tankers in exchange for payment in Yuan is being hailed as a direct assault on the primacy of the U.S. dollar and the petrodollar system.

The outcome of these events is the diminution of the U.S. dollar’s hegemony and the rise of the Chinese Yuan. China continues to purchase discounted oil from Iran in Yuan, and the procurement of Russian oil will also be in non-USD denominations. The fall of the U.S. dollar will accentuate China’s rise as a major competitor of the U.S.. China is already vying for a common BRICS currency, and its efforts will intensify in the future, as the U.S. dollar continues to weaken. The war in the Middle East presents an opportunity for the Chinese Yuan to accentuate China’s geoeconomic rise.

Observing and Analyzing American Military Activities

China’s observation of Operation Epic Fury provides its military with an opportunity to gather ample data on American military tactics and strategies. It also provides China with insight into the capabilities and limitations of American weapon systems. The downing of American fighter jets, including F-15E Strike Eagles, KC-135 Stratotanker, F-35A and Q-9 Reapers, as well as the destruction of radars and limitations of American air defense systems in the Middle East, is an opportunity for the Chinese military to evaluate its military arsenal and reassess its own capabilities and limitations vis-à-vis American military prowess.

With the help of artificial intelligence and machine learning, the Chinese military would analyze these weapon systems and military strategies and create real-life war-like simulations for the Chinese military with precise data. The destruction and limitation of the American military assets will also persuade global vendors to pursue Chinese combat-tested alternatives from the May 2025 Pakistan-India War, thus augmenting Chinese defense exports.  

Strengthening Rare Earth Leverage against American Military Industrial Complex

The involvement of the U.S. in another war in the Middle East has the American military industrial complex up and running. Given the intense bombardment, fast-paced depletion of its air defence interceptors and the destruction of radars, the U.S. is expected to swiftly replenish its arsenal. However, the U.S. reliance on China for rare earth minerals – essential for the American military industrial complex – indicates that the U.S. strategic autonomy is compromised. In response to the Trump administration’s tariff war and ban on advanced chips exports to China, China meticulously weaponized rare earth minerals, effectively defying the actions of the Trump administration. In the wake of the Iran conflict, the Trump administration’s dependence on China for its rare earth needs magnifies, actively putting China in an advantageous position.

The Chinese government can tactfully play its cards, forcing the U.S. to continue the exports of advanced chips to China as well as completely abolish the exorbitant tariffs on Chinese products.

Strategic Space in the Indo-Pacific

In order to replace the lost batteries and interceptors, the U.S. decided to transfer its Terminal High Altitude Area Defense (THAAD) system from the Korean Peninsula to the Middle East. Additionally, the U.S. moved 2500 marines and USS Tripoli, an amphibious assault ship, stationed in Japan, to the Middle East, with the reported plan of the takeover of Kharg Island – Iran’s predominant energy export hub. This, however, aggravates the security apprehensions of the American allies in the Indo-Pacific, especially South Korea and Japan. Given the Trump administration’s diversion of resources, these states will have to reconfigure their security policies and adopt a more amicable approach towards China. The Chinese government will welcome such developments, perceiving them as a strategic space in the Indo-Pacific. In the wake of reduced American military presence in the region, China will be in a better position to secure its strategic interests along the Strait of Malacca, consolidating its supply chain.

The longer the conflict protracts, the deeper the U.S. will be engulfed in another forever war. This may create temporary energy disruptions for China as well as complications for its BRI program. However, the reoriented focus of the U.S. on military campaigns will allow China to continue its economic rise, backed by innovation and advanced cutting-edge technologies. The stature of China will continue to be amplified as a non-interventionist state, believing in regional connectivity and shared economic growth. This scenario envisages more states swaying to the Chinese camp in the coming years, broadening the scope of BRICS+ and a common BRICS currency.

Hamza Zaman holds an M.Phil. degree in International Relations from Quaid-i-Azam University, Islamabad, Pakistan. He works as an Assistant Research Associate at the Islamabad Policy Research Institute, Pakistan.

The Export-Import Bank of the United States recently issued letters of interest supporting up to $4.2 billion in financing for enriched uranium sales by General Matter to utilities in Japan and South Korea. This includes up to $2.4 billion for Japanese operators and $1.8 billion for South Korean ones over the coming decade. 

As we reported, the deal advances American energy dominance and reduces allied dependence on adversarial fuel suppliers.

This transaction arrives as the United States, and much of the world, pursues a nuclear renaissance. Surging electricity demand from data centers and industry, combined with policy support for clean baseload power, requires reliable domestic fuel supplies. 

With Russian enriched uranium imports facing a full ban by 2028, expanding US enrichment capacity is essential to avoid bottlenecks for both existing reactors and new advanced designs.

Yet the strategic case extends beyond energy security. Nuclear proliferation remains a core concern. Nuclear proliferation is the spread of nuclear weapons, fissile material, and weapons-related nuclear technology and information to additional states. A civilian nuclear power program, though intended for electricity generation, can serve as a foundation for weapons development. 

Uranium enrichment technology used to produce low-enriched uranium at 3 to 5 percent U-235 for reactor fuel employs the same centrifuges and processes that can be adjusted to achieve highly enriched uranium above 90 percent, the level needed for nuclear weapons. A facility sized to fuel one reactor can produce material for roughly 20 bombs per year. Once a nation masters enrichment at commercial scale, the leap to weapons-grade material becomes significantly shorter and less detectable.

These risks apply even to close US allies, not just adversarial states. Saudi Arabia has pushed for domestic enrichment rights in ongoing nuclear cooperation talks with Washington, while Crown Prince Mohammed bin Salman has also stated the kingdom would pursue a bomb if Iran does.

South Korea has expressed interest in developing its own enrichment capability. A serious concern there is the potential for the technology to find its way to their northern neighbors. 

In contrast, the United Arab Emirates accepted the so-called gold standard, forgoing enrichment and reprocessing in its civil nuclear program.

By building sufficient domestic capacity, the United States can become the preferred supplier of safeguarded enriched uranium to partners. This approach maintains oversight of the fuel cycle, discourages allies from developing independent programs, and limits technology diffusion.

Via Remix News,

The debate over violence in German society and schools has reached a boiling point in the Bundestag, pitting Chancellor Friedrich Merz and his supporters against critics who accuse him of racism, including a Left Party politician who published a photo of herself on Instagram giving him the middle finger.

The controversy intensified following a session where Merz addressed the issue of digital and analog violence, particularly against women.

“We have exploding violence in our society, both in the analog and digital space, and we must do something about it together,” said Merz.

However, he said that one must then also talk about where this violence comes from, he said to applause from members of the CDU/CSU and the AfD.

“And then we must also address the fact that a considerable proportion of this violence comes to the Federal Republic of Germany from immigrant groups,” he added.

🇩🇪🔴German Chancellor Friedrich Merz is under fire from the left for tying exploding violence with mass immigration.

“We have an explosion of violence in our society…Then we also need to talk about where this violence comes from. And then we must also address the fact that a… pic.twitter.com/ZPDuI4eHnv

— Remix News & Views (@RMXnews) March 27, 2026

These remarks drew sharp condemnation from the Social Democrats (SPD) and the Left Party. SPD parliamentary group leader Matthias Miersch argued that violence against women should be viewed broadly rather than being reduced to a single population group. Miersch stated, “I don’t think that was an adequate response from the chancellor.”

He added that “violence against women has no origin or religion, it is a problem of society and must be addressed clearly. It is about protecting victims, regardless of who the perpetrator is.”

Data on violence against women and foreigners

However, statistics tell another story from what Miersch asserted. Foreigners commit 65 percent of all sexual crimes on German trains and in train stations despite making up approximately 15 percent of the population. It must be noted that German citizens with a migration background are not included in this 65 percent figure.

As data from North Rhine-Westphalia showed, foreigners commit half of all gang rapes. However, when the first names of gang rape suspects are analyzed, it shows that at least half of the German citizens clearly had names from a foreign background, such as Mohammad. In total, that means 75 percent of all gang rapes are committed by a foreigner or someone with a foreign background.

Data presented by the German government last year shows that 63,977 women were victims of sexual violence in 2024 alone, and the perpetrators were disproportionately foreigners, making up 35 percent of all perpetrators, according to government data released as a result of an inquiry from the Alternative for Germany (AfD) party in the Bundestag.

German government data also shows there were 135,000 crimes by Syrian suspects against Germans since 2015 — one every 39 minutes.

The data, obtained by Freilich magazine, also shows large numbers of victims of crimes committed by suspects from other countries of origin, including 82,960 linked to Afghanistan, 69,946 to Iraq, 39,918 to Morocco, and 32,383 to Algeria. Altogether, more than 460,000 crimes were recorded in a 10-year period involving suspects from the 10 main countries of origin: Syria, Afghanistan, Iraq, Iran, Morocco, Algeria, Nigeria, Pakistan, Somalia, and Eritrea.

The Left says migrants should not be blamed

In the educational sector, Saskia Esken, chairwoman of the parliament’s Education and Family Committee, also raised concerns about school-related crimes. While acknowledging that the number of violent crimes recorded by the police in schools has increased significantly in all federal states, she firmly rejected the migration narrative, despite clear statistical evidence showing there is a serious problem with violence from Germany’s foreign population.

“Migration is not the problem in our schools,” Esken asserted, arguing that violence arises where children neither at home nor at school learn other ways to regulate their feelings and resolve conflicts. She described school as a motley, quasi-forced community where social workers and psychologists are desperately needed to address underlying issues like poverty and lack of prospects.

Again, the data contradicts her, showing that 40 percent of all violent crime suspects in German schools are foreigners. This data shows that there were 4,254 foreign suspects and 7,309 suspects with German citizenship, the German government announced in response to a parliamentary inquiry from Alternative for Germany (AfD) MP Martin Hess.

Of the 11,558 suspects in total, 1,236 had Syrian passports, representing one in ten violent incidents, according to the data, which was provided to Welt newspaper.

It must also be noted that a likely significant number of these suspects are German citizens with a migration background who are only counted as German in the statistics. Researchers, police, and society do not have a clear picture regarding the integration of previous generations of migrants and their role in crime due to this data reporting failure.

Middle finger for Merz

The Left Party member of the Bundestag, Cansin Köktürk, took a more provocative approach by posting a photo of her middle finger directed at Merz on Instagram.

She accused the chancellor of a “hysterical, constant whining” about migrants and suggested that he was serving a racist agenda.

“Hey Merz, I almost think you’d like to be part of us yourself. You’re so obsessed with talking about us,” she wrote.

Köktürk claimed that Merz instrumentalizes specific cases while ignoring the perspectives of those affected, describing his rhetoric as aggressive and hurtful.

Read more here…

Authored by Steve Watson via Modernity.news,

A British Liberal Democrat MP has openly admitted what the political class really fears about Elon Musk’s X: it lets ordinary Britons speak freely about the disaster of mass immigration.

In a clip that exploded across the platform on Monday, Cheltenham MP Max Wilkinson described X as a “massive problem” precisely because it gives critics of unchecked migration a voice.

“It’s a really easy [way] to get some content out about how you think immigration is too high, or immigration is the big thing that’s tearing the country apart… X is now making sure that you can have your voice heard in a really easy way that you couldn’t in the past,” he complained.

This is not some fringe rant. Wilkinson, the Lib Dems’ Home Office spokesperson, simply said the quiet part out loud. While the establishment lectures the public about “tolerance” and “diversity,” it seethes at the idea that native Brits can now push back online without gatekeepers filtering their concerns.

The backlash was instant and brutal. Toby Young of the Free Speech Union fired back: “Labour MP Max Wilkinson says the quiet part out loud: He doesn’t like X because it enables people who think immigration is too high to have their voices heard.”

Telegraph journalist Allison Pearson was even sharper: “God forbid people should be able to say on X that immigration is far too high. Or that it is causing problems for our way of life. Lib Dem MP Max Wilkinson thinks those opinions should be silenced. How dare he!”

This admission lands at the perfect moment to expose the broader pattern of suppression. It confirms exactly why the government has been so desperate to rein in platforms like X.

As we have highlighted, the UK’s relentless and ongoing push to ban or restrict X has been predicated on protecting children, yet is clearly about narrative control:

The same government that lectures about “hate” has already banned a teacher for the crime of saying migrants should respect our laws or leave:

Samuel Everett’s posts – “If you don’t respect our laws, culture and way of life you should leave, nobody is forcing you to stay” and “deploy the navy” on small boats – earned him an indefinite professional ban even, despite an independent panel clearing him of ‘racism’.

The government has also jailed a man for 18 months over two spicy anti-immigration tweets viewed just 33 times.

Last year alone Britain’s speech gulag saw 10,000 people arrested for social media posts.

The crackdown reaches into schools too. The Green Party wants to teach children radical ideology regarding immigration.

While the current Labour government urges schools to snitch on “anti-Muslim hostility” in an Orwellian dragnet.

It even produced a video game that brands kids “terrorists” for questioning mass migration:

Counter-terror police ran an advert warning teens that sharing “funny content” could be terrorism.

Meanwhile the demographic transformation accelerates. Migrants are set to swallow 40 percent of new UK homes by 2030.

A recent caller to Talk TV perfectly captured how most British people feel about it all:

And the hypocrisy never stops. The same regime is introducing an “anti-Muslim hate” definition while branding the Union Flag a tool of hate in leaked strategy documents.

Wilkinson’s outburst is the clearest proof yet: the real “threat” to the establishment isn’t hate, it’s democracy. They cannot win the argument on open borders, so they attack the platform that lets the public make it.

Britain does not need more speech restrictions. It needs politicians who listen instead of silencing the people they are supposed to serve. X is working exactly as intended – giving a voice to the voiceless. That is why the elites hate it, and why millions of us will keep using it, by hook or by crook.

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