No More Bombs for Iran, Economic War Instead?

CENTCOM Says Hormuz Naval Blockade Ends As Gulf Energy Flows Reboot Summary: U.S. CENTCOM says U.S. Naval Blockade on Hormuz has been "Lifted"  Kuwait Petroleum CEO says Energy Production to Ramp in a Week  Iran Media says Southern Ports Traffic Begins Normalizing  Hormuz Normalization Begins As Saudi Supertankers Exit And A Flood Of Persian Gulf Oil Heads For Asia The roughly two-month U.S. naval blockade of the Strait of Hormuz has officially ended, according to U.S. Central Command on X. This marks a major de-escalation in the Gulf region, as early signs point to the...

July Rate-Hike Off The Table After Producer Price Inflation Drops Most Since COVID Following yesterday's much cooler than expected, Goldman's Rich Privorotsky notes that today’s PPI print matters more for the core PCE read-through (Fed's favorite inflation indicator), particularly healthcare and financial services. While May's headline PPI print was hot, core was cooler than expected, and June's data release today was expected to show no change in headline producer prices. In fact, like with CPI, headline Producer prices actually saw deflation (-0.3% MoM), equaling the biggest monthly decline since April 2020. The...