Iran fired missile and drone barrages at US bases in Kuwait and Bahrain overnight. A strike hit Kuwait’s airport terminal, killing one and wounding several. The first confirmed civilian death at the airport. The war is no longer staying offshore.Reuters
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Gold overtook US Treasuries as the world’s second-largest reserve asset, the ECB said. Gold is now 27% of central bank reserves; Treasuries fell to 22%. The last time the world held more gold than US bonds was 1996.BBG
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CENTCOM struck an Iranian control station on Qeshm Island in response. No US personnel were harmed; the IRGC called its attacks “a lesson.” The US and Iran keep striking each other during what both call a ceasefire.Reuters
War & Conflict
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A drone hit Kuwait’s airport terminal, killing one and causing major damage. PATRIOT batteries intercepted other incoming missiles and drones. Civilian infrastructure was hit this time. That changes the calculation for the Gulf states.AP
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Bahrain reported explosions overnight; it hosts the US Navy’s Fifth Fleet. Both Gulf states activated air defenses against the barrage. The Fifth Fleet is the US naval anchor in the Gulf. Bahrain is not a place to escalate.Reuters
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WTI jumped over 3% to about $94.50 after the Gulf base attacks. Brent topped $97 earlier this week on Iran’s blockade threats. Every attack on a Gulf base is also an attack on the oil price. The market knows it.BBG
Politics
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Trump named Bill Pulte, the mortgage-finance heir, as Director of National Intelligence. He replaces Tulsi Gabbard and will oversee the CIA and NSA. Pulte ran housing finance until yesterday. Now he runs the intelligence community.CNBC
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Trump retreated from the $1.8 billion DOJ anti-weaponization fund. Republicans demanded proof it’s dead; Trump will keep his IRS audit immunity. The fund that nearly killed the immigration bill may finally be gone. Republicans want it in writing.Fox
Markets & Economy
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US stocks were set to open lower Wednesday after the Gulf attacks. Gold and oil rose; Treasuries rallied as investors sought safety. The same week gold passed Treasuries in reserves, both rallied together. Fear buys everything safe.BBG
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The US Strategic Petroleum Reserve is near an all-time low after the war drawdowns. Refill options are limited with WTI near $94 a barrel. The emergency cushion is thin just as the Gulf heats up again. Bad timing.EIA
