Hormuz Closure Claim, Treasury Buybacks and Black Sea Grain Disruption Lead the Day

Strait of Hormuz crisis deepens as U.S.-Iran diplomacy stalls Iran says the Strait of Hormuz remains shut after a temporary ceasefire expired, while oil reached a three-week high following the UAE’s decision to cut financial ties with Iran, according to Reuters. Hormuz normally carries roughly one-fifth of global oil and gas supplies, leaving energy prices and inflation exposed to any sustained disruption. The operational status of the strait and diplomatic positions remain contested.

U.S. Treasury doubles long-term bond buybacks after market alarm The U.S. Treasury will more than double purchases of longer-dated government bonds after selling pressure drove yields sharply higher, the Associated Press reports. The announcement temporarily reduced long-term yields, underscoring the importance of liquidity in the benchmark U.S. sovereign-debt market for mortgages, corporate financing and public borrowing. The buybacks are described as a liquidity tool, and the immediate stabilization may not persist.

Black Sea attacks disable most Russian and Ukrainian grain-export capacity Attacks on ports and shipping have reportedly shut more than 97% of Russian and Ukrainian grain-export capacity in the Azov and Black Sea basin, pushing global prices higher, Reuters reports. Russia and Ukraine are major low-cost grain suppliers, so a prolonged interruption could raise food costs in import-dependent countries. Export capacity could recover if shipping truces or alternative routes emerge.

Congo’s Ebola outbreak becomes its deadliest as vaccine deployment begins The Bundibugyo Ebola outbreak in Congo has exceeded 5,000 cases and 2,300 deaths, according to the Associated Press. Congo is receiving 70,000 Ervebo vaccine doses as authorities respond to an outbreak described as spreading faster than previous Ebola outbreaks. Protection from Ervebo against the Bundibugyo strain remains uncertain, and the outbreak remains geographically concentrated.

Russia launches major missile and drone barrage against Kyiv A Russian barrage involving scores of missiles and drones killed at least 16 people in Kyiv and the surrounding region, the Associated Press reports. Ukraine says its Patriot interceptor stocks are constrained by competing demand from the Iran war, pointing to pressure on advanced air-defense supplies across simultaneous conflicts. Large Russian attacks have become recurrent, leaving the broader effect on the war’s trajectory uncertain.

U.S. and South Korea halve joint drills; North Korea responds with missile barrage Washington and Seoul shortened annual military exercises from 11 days to five after President Trump’s order, according to the Associated Press. North Korea rejected the overture and launched multiple ballistic missiles toward the sea. The drills were reduced rather than cancelled, and no permanent force change has been announced.

Private Chinese company achieves reusable orbital-rocket landing LandSpace launched its Zhuque-3 rocket, placed a satellite in orbit and recovered its first stage on land, becoming the first Chinese private company to do so during an orbital mission, Space.com reports. Reusable launch capability could lower launch costs and expand China’s commercial, military and scientific access to space. One recovery does not establish rapid or economical reuse at scale.

U.S. and Canada approach deal averting threatened 50% tariffs The United States paused threatened 50% tariffs on a broad range of Canadian imports for three days as negotiators moved toward a trade agreement, the Associated Press reports. The outcome matters for integrated North American automotive, energy, agricultural and industrial supply chains. Significant terms remain unresolved, and the pause may prove temporary.