U.S. blockade risks oil spike as Morgan Stanley trading surges 69%

Washington reinstated a naval blockade of Iranian ports in the Strait of Hormuz, prompting a new wave of strikes. Crude slipped higher, with WTI at $79.60 and Brent at $84.95, and analysts warn oil could test $100 if hostilities persist.

The June wholesale price index slipped 0.3% year‑over‑year, driven by a sharp drop in gasoline costs after a brief lull in U.S., Iran tensions. The dip signals easing energy pressure on downstream producers and could temper broader inflation expectations.

Morgan Stanley reported record quarterly revenue and net profit in Q2 2026, driven by a 69% surge in equities trading volume. The boost lifted earnings per share above analysts’ forecasts, underscoring the firm’s reliance on market‑making revenue as equity markets stay volatile.

BlackRock posted a 20% profit surge year‑over‑year as its assets under management breached the $15 trillion threshold. The blow‑out earnings sent the stock up nearly 7% in after‑hours trading, underscoring the firm’s dominant position in the asset‑management space.

Bondholders holding about €2 billion claim Altice International stripped collateral through inter‑company deals, prompting a formal default notice. The move puts Drahi’s telecom empire under pressure to renegotiate debt and could force asset sales, heightening risk for investors exposed to the group’s leveraged balance sheet.

TSMC is upping its U.S. spend by $100 billion, pushing total Arizona commitments to $265 billion. The boost funds a second 12‑inch fab, adds 5,000 jobs, and tightens the supply chain for advanced nodes, cementing the Taiwanese giant’s role in the US semiconductor push.

In after‑hours trading, IBM's shares tumbled over 25% after a surprise earnings report missed software revenue forecasts and warned of slower AI‑budget growth. The plunge is the steepest single‑day loss since the 1987 crash, rattling confidence in IBM's AI‑driven turnaround.

Despite a 15‑year high in credit‑card delinquencies, the nation’s biggest banks report near‑normal rates, suggesting they’re either shielding exposure or shifting risk to non‑bank lenders. The split hints at hidden stress in consumer credit and could foreshadow higher defaults if banks can’t offload the burden.

Fed Chair Kevin Warsh called inflation an "unfair tax" and announced five task forces to overhaul communications, technology, the balance sheet, data and inflation modelling. He pledged a "regime change" in policy, saying the Fed will get monetary policy right and make the five‑year price surge a thing of the past. Markets will watch for tighter rates and new frameworks.

Fed Chair Kevin Warsh announced a sweeping policy overhaul to end the persistent inflation that’s haunted the U.S. for five years, calling it a ‘regime change.’ The shift promises tighter rate hikes and a data‑driven stance, signaling a hard‑line approach that could reshape borrowing costs for households and businesses.

NextEra Energy and Dominion Energy have filed applications with regulators in Virginia, North Carolina, South Carolina and the federal FERC to merge. The combined entity would serve about 10 million customers across the Southeast, giving it scale to fund renewable, storage and grid upgrades while offering $2.25 billion in bill credits. Approval could reshape power markets in four fast‑growing states.

Anthropic is scheduling investor roadshow meetings with Morgan Stanley, Goldman Sachs and JPMorgan Chase as it prepares a potential October 2026 IPO. Valued at $965 billion after its May round, the AI firm hopes to list before OpenAI and capture the AI‑driven equity rally.

Analysts say Stripe, backed by private‑equity firm Advent, has floated a $53 billion takeover offer for PayPal, valuing the payments giant at a premium to its market price. The bid, described as a low‑ball by some, could reshape the U.S. payments landscape if it materializes.