Aggregator

Gilt Yields Fall As Starmer Vows To Stay On After Farage's Reform UK Storms To Historic Gains In 'Midterms'

Zero Rss
1 month 1 week ago
Gilt Yields Fall As Starmer Vows To Stay On After Farage's Reform UK Storms To Historic Gains In 'Midterms'

Update (0800ET): After hitting 28-year highs earlier in the week, UK gilt yields are lower as UK PM Keir Starmer said he had no plans to step aside as Labour leader after early results in local elections showed Nigel Farage’s populist Reform UK racking up sweeping gains over Britain’s governing party.

Cable is also stronger against the dollar...

The Polymarket prediction platform showed punters paring bets on a Starmer departure this year, giving a 57% chance of the premier exiting by Dec. 31, down from 70% on Thursday.

UK's Milliband reportedly told PM Starmer he should consider setting out a timeline for his departure, via Times.

The sources said Miliband made the suggestion during a private meeting with the prime minister about a fortnight ago.

But, for now, Starmer is staying:

“These are really tough results — I’m not going to sugarcoat it,” Starmer told broadcasters on Friday, while resolving to stay on as prime minister until the next election.

“The voters have sent a message about the pace of change, how they want their lives improved. I was elected to meet those challenges, and I’m not going to walk away from those challenges and plunge the country into chaos.”

So far, markets have responded positively suggesting investors think the more pessimistic predictions about the outcome will probably be avoided.

Still, Bloomberg economist Dan Hanson warns that, with plenty more results to come in, the final verdict is uncertain, as is the likely reaction from Labour MPs.

Here's how to judge the results:

The risk for the economic outlook is that the local elections spark a chain of events that eventually sees Prime Minister Keir Starmer replaced by a leader who favors looser fiscal policy.

With the economy in the midst of a fresh inflationary shock and the public finances stretched, a promise of higher spending would put a new leader on a collision course with the gilt market.

“We’re proving in a big way, we can win in areas that Labour have dominated, frankly, since the end of World War I,” Farage told journalists in London on Friday.

“You’re witnessing an historic shift in British politics. This is now the most national of all parties. We’re competitive in the north of Scotland. We were competitive in Cornwall in the county elections last year. We’re competitive in every part of the country, and we’re here to stay.”

*  *  *

Reform UK is on track for historic gains in the 2026 UK local elections - seizing hundreds of seats in the early counts while Labour and the Conservatives suffer heavy defeats across England. 

Nigel Farage, leader of Reform UK, celebrated huge gains in England’s local elections on May 1 (Press Association via AP Images)

With results from 39 of 136 councils declared overnight (roughly 28% of the vote counted), Reform UK has already gained over 300 seats - a remarkable surge for a party that had almost no local presence just a few years ago.

Labour has lost 220 seats, the Conservatives 107, while the Liberal Democrats gained 35 and the Greens 22.

//--> //--> //--> Will Reform UK win the most council seat elections in the 2026 United Kingdom local elections?
Yes 99% · No 1%
View full market & trade on Polymarket Labour on the Brink in Traditional Strongholds

The scale of Labour’s collapse is stark. In areas where the party was defending seats, it has retained only 23% so far. One senior Conservative commentator noted on X that Labour is “currently losing 84% of the seats they are defending.”

Labour has already lost control of at least five councils, including long-held northern strongholds. Tameside fell after 47 years of Labour rule. Heavy losses were also recorded in Halton, Hartlepool, Redditch and Tamworth, with Reform UK making major inroads in former Labour heartlands across the North and Midlands.

Birmingham on the Brink of a Reform Takeover?

Nowhere is the drama more intense than in Birmingham, where all 101 council seats are up for election. Pre-poll surveys had Reform UK as the largest party or very close to it, with some projections putting them on 47 seats - just short of an outright majority.

A widely shared post on X claimed Reform UK is “tipped to take control of Birmingham City Council in what could become one of the biggest political upsets in modern British politics.” Local issues including a prolonged bin strike and council finances have dominated the campaign. Results from Britain’s second city are expected later today.

Across the declared councils, Reform UK is winning approximately 48% of the seats contested so far. Many authorities are heading for no overall control, creating a fragmented political map.

The Liberal Democrats enjoyed a standout result in Richmond upon Thames, taking every seat. The Greens also made solid gains.

In Scotland, counting for the Scottish Parliament election begins this morning, with first results expected around lunchtime. Polls had suggested the SNP would fall short of a majority while Reform UK was on course for a significant breakthrough. Wales is also counting today.

Political Earthquake for Starmer

These are the first major elections since Labour’s 2024 landslide victory and represent a serious test for Prime Minister Keir Starmer. Reform UK leader Nigel Farage has hailed the results as evidence of a “historic change in British politics.”

Conservative leader Kemi Badenoch faces questions about her party’s ability to stem the flow of votes to Reform on the right.

This is a developing story. More councils - including several major metropolitan boroughs - will declare throughout Friday, with the full national picture expected by Saturday.

The last word goes to @higgyboson

CV.

Completely ruined a major 126 year old political party in less than 2 years.

Became the most hated UK Prime Minister in history. 

Unilaterally gave away billions of £'s of taxpayers money with no accountability required from the recipients. 

Wrecked the economy. 

Failed to control mass immigration, both legal and illegal.

Failed to address the problem of muslim rape gangs.

Increased welfare payments to a point where benefits now cost more than the entire income tax take.

Allowed weekly pro-Palestinian hate marches on our streets.

Consistently referred to people with concerns about the proliferation of migrant violence as "Far Right".

Promoted one of his friends to high office despite knowing he was a buddy of one of the most prolific paedophiles on the planet.

Consistently worked to reverse the result of the biggest democratic vote in British history by stealth.

Placed tax dodgers, fraudsters and CV fantasists in Ministerial posts.

Invited a known islamist terrorist to No.10 while simultaneously banning foreign commentators from the UK for merely reporting on the border fiasco.

Took two weeks to find a Royal Navy ship that actually worked.

Introduced legislation that will destroy the private rental market and create hundreds of thousands of homeless families.

Promised to build 1.5 million homes in five years despite everyone telling him it would be impossible. 

Failed to help motorists and hauliers after the rise in the price of fuel caused by the war in Iran.

Continues to allow Ed Milliband to wreck the UK's energy industry with his insane Net Zero policies.

Raised the minimum wage and employers National Insurance contributions leading to thousands of job losses and businesses folding.

Introduced VAT to private school fees leading to many excellent seats of learning closing their doors.

Consistently refused to answer questions during the session in the parliamentary week set aside for this specific purpose. 

Consistently failed to accept responsibility for any wrong doing, preferring to sack others instead.

Alienated "working people" while claiming to be on their side.

And the lies. The constant lies.

Failure. Failure. And more Failure.

Time to go.

Tyler Durden Fri, 05/08/2026 - 08:00
Tyler Durden

Megadrought: We Just Experienced The Driest First Three Months Of A Year In US History

Zero Rss
1 month 1 week ago
Megadrought: We Just Experienced The Driest First Three Months Of A Year In US History

Authored by Michael Snyder via The Economic Collapse blog,

January, February and March were insanely dry. In fact, in all of U.S. history conditions have never been so dry during the first three months of the year. Just think about that for a moment. Not even during the Dust Bowl days of the 1930s were conditions this dry. Many were hoping that 2026 would be the year when our multi-year drought would finally break. Needless to say, that hasn’t happened. Scientists are telling us that the southwestern U.S. is in the midst of the worst multi-year drought in at least 1,200 years. We really are experiencing a “megadrought”, and this is something that experts such as Steve Quayle and Dane Wigington have been talking about for a long time. Unfortunately, it appears that our seemingly endless “megadrought” has gone to an entirely new level in 2026.

If it simply doesn’t rain, there is not much that farmers and ranchers can do.

Right now approximately 63 percent of the continental United States is experiencing at least some level of drought, and the first quarter of this year was one for the record books…

Winter wheat is dying in Kansas fields that should be green by now. Ranchers in New Mexico are selling cattle they cannot afford to feed. Reservoir levels along the Colorado River system are dropping weeks ahead of the season when mountain snowmelt is supposed to refill them. Across roughly 63% of the contiguous United States, drought rated moderate to exceptional on the federal scale has taken hold, and the first three months of 2026 were the driest the nation has recorded in 131 years of continuous measurement.

This isn’t just a crisis.

This is catastrophic.

It appears that the winter wheat crop in the U.S. is going to be a disaster.

At this stage, more than 81 percent of the Southern Plains is experiencing drought…

Heading into the harvesting season for the key winter wheat crop, much of the western side of the U.S. Plains are locked in drought. Over 81% of Southern Plains is experiencing some form of drought, according to the latest data from the U.S. Drought Monitor. Nearly 20% of the region is experiencing either “extreme” or “exceptional” drought.

Only 30% of U.S. winter wheat is in either good or excellent condition as of the start of this week, according to the most recent weekly Crop Progress report from the Department of Agriculture. By comparison, 49% of the crop was good-or-excellent at this point last year.

The situation is particularly dire in the state of Oklahoma.

Last year, the state produced 101.1 million bushels of red winter wheat.

Thanks to the drought, it is being projected that the state will produce less than half of that total this year…

At the 2026 Oklahoma Grain and Feed Association meeting, crop scouts, extension specialists, and grain elevator representatives painted a sobering picture of this year’s hard red winter wheat crop. Their estimates say the 2026 crop is roughly half the size of the previous two years, with production projected at 48.9 million bushels compared to 101.1 million bushels in 2025. The outlook is based on an average yield of 23.93 bushels per acre across an expected 2.043 million harvested acres, highlighting the significant downturn facing Oklahoma wheat producers.

When there is a lot less wheat to go around, prices will go up.

It is simply a matter of supply and demand.

One farmer that grows winter wheat in Kansas is saying that his farm has only had a quarter of an inch of precipitation since last fall…

Southwest Kansas farmer Gary Millershaski says his area has only received a quarter-of-an-inch of precipitation since last fall. “For us to get a 30-bushel crop, you’ve really got to be optimistic and believe in prayer. That’s a fact.”

He has done everything right, but the sky has been silent.

What is he supposed to do?

So far in 2026, Chicago wheat futures are up about 30 percent…

Chicago wheat futures have gained nearly 30% since the start of the year — the biggest gain among row crop futures — due to the combination of U.S. drought, global fertilizer shortages and a looming El Niño.

If this crisis in the Middle East is not resolved, this will only be just the beginning.

Once upon a time, the U.S. was absolutely swimming in wheat, but now we are moving into a time when it will be considered a “luxury grain”.

Of course beef is already considered to be a “luxury meat”.

When I was growing up, my mother would feed us beef constantly because it was so inexpensive.

But now beef prices have skyrocketed, and some of the prices that we are seeing at the meat counters in our grocery stores are absolutely absurd…

I never thought that I would see beef prices get this high.

But this is the reality that we are living in now.

And it appears that beef prices will continue to remain elevated because the size of the U.S. cattle herd is the smallest that it has been since 1951…

The US cattle herd remained the smallest since 1951 at the start of the year, in the latest signal that consumer beef prices will remain near records.

There were about 86.2 million cattle and calves in the US as of Jan. 1, the US Department of Agriculture said in a Friday report. The tally is nearly unchanged from 2025, providing no relief to the ongoing cattle shortage.

The lack of improvement comes as ranchers keep selling animals to slaughter amid high beef demand, rather than retaining the animals to grow their herds. The downsizing — which began years prior when ranchers shrunk their herds due to high production costs and droughts — has sent consumer beef prices to all-time highs.

It is really hard to feed cattle when conditions are bone dry.

Sadly, they could get even drier in the months ahead…

Meanwhile, there’s a 62% chance of the world’s climate shifting from neutral to El Niño between June and August, according to NOAA’s Climate Prediction Center forecast. The European Center for Medium-Range Weather Forecasts said that this El Niño could be the strongest on record, with peak intensity hitting in October.

El Niño typically results in hot and dry weather in many growing areas, including the U.S. Corn Belt and in Australia. With fertilizer supplies thin, this may further compound production losses for world wheat.

We are being told that we could soon be experiencing a “super El Niño”, and meteorologist Ryan Maue is warning that the long-term forecast for the second half of this year is “off the charts”…

I have been repeatedly warning my readers that global weather patterns are going nuts, and I was not exaggerating one bit.

We really are facing a historic long-term crisis with no end in sight.

As I discussed last week, for the upcoming season U.S. farmers are planting the fewest acres of wheat that we have seen since records began in 1919.

In 1919, there were 104 million people living in the United States.

Today, there are 341 million people living in the United States.

It doesn’t take a genius to figure out that we have a major problem on our hands.

Many of us have been warning about this crisis for years, and now we really have reached a breaking point.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

Tyler Durden Fri, 05/08/2026 - 07:45
Tyler Durden

US Conducts New Iran Strikes Along Hormuz Corridor - Trump Says Warships Came Under Fire By 'Lunatics'

Zero Rss
1 month 1 week ago
US Conducts New Iran Strikes Along Hormuz Corridor - Trump Says Warships Came Under Fire By 'Lunatics' Summary

  • US military attacks Iran locations on southern coast, and allegations of UAE involvement; Explosions rock Abu Dhabi. CENTCOM says intercepted Iranian counterattacks.

  • Iran says US violated ceasefire after Centcom targeted Iranian facilities responsible for attacks; US says ceasefire not violated despite striking Iranian oil tanker and targets in Bandar Abbas and Qeshm.

  • The Trump admin mulls restarting operation to guide ships through the Strait of Hormuz with naval and air support as early as this week after Saudi Arabia and Kuwait lifted restrictions on US access to their bases and airspaces

  • Iran national security commission 'red line': No uranium has left the country; The right to enrich uranium, the complete lifting of sanctions, and the release of the country's assets are non-negotiable red lines.

  • French nuclear-powered carrier steams through Suez Canal in support mission as Europe seeks diplomatic influence over Hormuz outcome.

  • First Chinese tanker reportedly attacked: shipping industry source told Caixin that this was the first time a Chinese tanker was hit in the three-month-long war, calling it "psychologically very hard to accept."

//--> //--> Strait of Hormuz traffic returns to normal by end of May?
Yes 36% · No 65%
View full market & trade on Polymarket

*  *  *

Trump: US Warships Came 'Under Fire' By 'Lunatics'

Iran says US violated ceasefire as explosions are reported in the UAE (via Newsquawk)

IRAN SAYS US VIOLATED CEASEFIRE

Iran’s Top Joint Military Command says:

  • The US violated the ceasefire,
  • The US targeted an Iranian oil tanker and another ship entering the Strait of Hormuz,
  • Iran will respond “powerfully and without hesitation.”

US SOURCE SAID CEASEFIRE NOT VIOLATED

  • US officials, according to Axios/Fox reporting, say:
  • US strikes were carried out in Qeshm port and Bandar Abbas,
  • The strikes do not mean the war has restarted,
  • The ceasefire is not over.

ATTACKS

  • Iranian media and officials also claimed:
  • Three American destroyers were attacked near the Strait of Hormuz,
  • Iranian missile fire forced enemy units to retreat after suffering damage.

These claims are unverified.

  • Air defences were activated multiple times around:
  • Tehran
  • Bandar Abbas
  • Qeshm

REGIONAL TARGETS

  • Iran is accusing the US and “some regional nations” of striking targets in the Strait of Hormuz area.
  • Iranian media outlets reported explosions in Abu Dhabi and Dubai:
  • ISNA: explosions heard in Abu Dhabi and Dubai.
  • IRIB/Fars: explosions heard in Abu Dhabi.
  • There is no confirmation yet on cause, damage, or responsibility.

Oil jumps on the developments:

CENTCOM Forces Intercept Iran Counterstrikes

CENTCOM confirms attack on Iran, and intercept of Iranian retaliation effort: "U.S. forces intercepted unprovoked Iranian attacks and responded with self-defense strikes as U.S. Navy guided-missile destroyers transited the Strait of Hormuz to the Gulf of Oman, May 7.

Iranian forces launched multiple missiles, drones and small boats as USS Truxtun (DDG 103), USS Rafael Peralta (DDG 115), and USS Mason (DDG 87) transited the international sea passage. No U.S. assets were struck.

U.S. Central Command (CENTCOM) eliminated inbound threats and targeted Iranian military facilities responsible for attacking U.S. forces including missile and drone launch sites; command and control locations; and intelligence, surveillance and reconnaissance nodes. CENTCOM does not seek escalation but remains positioned and ready to protect American forces."

Confirmation of New US Military Attack

Fox News confirming a nighttime US miliary attack on Iran's Qeshm port and Bandar Abbas, however, with US officials seeking to downplay that this marks a restart of the war and bombing campaign. This comes via Fox chief national security correspondent Jennifer Griffin:

A senior US official tells me that it was a US military strike on Iran’s Qeshm port and Bandar Abbas moments ago but added this is NOT a restarting of the war or end to the ceasefire.

The strike on one of Iran’s oil ports comes two days after Iran fired 15 ballistic and cruise missiles at UAE Fujairah Port, eliciting anger from Gulf countries after top Pentagon leaders said Tuesday that the Iranian strikes did not rise to the level of breaking the ceasefire, calling it low level attacks that didn’t rise to that level.

There have been allegations of UAE involvement. Since the initial explosions, more follow up blasts have been reported via state media, along with some emerging images:

  • US CONDUCTED STRIKES THURS IN THE STRAIT OF HORMUZ AREA: AXIOS
  • IRAN CLAIMS IT FIRED MISSILES AT THREE US DESTORYERS: TASNIM

Footage released by @IliaHashemicom purported to show air defence activity over Tehran tonight https://t.co/gv0FwwhiWN pic.twitter.com/WMRjne09jR

— Faytuks News (@Faytuks) May 7, 2026

Further emerging images:

🇮🇷🇺🇸🇦🇪 The explosion reports near the UAE are from U.S. warships being targeted, approximately 52km off the coast.

Developing. https://t.co/8c5x7wsosf

— Mario Nawfal (@MarioNawfal) May 7, 2026

Iranian military statement: "Criminal and aggressive America and its supporting countries should know, Iran will respond decisively to any aggression."

Explosions, Possible Hostile Action Reported on Coast

During the night hours in Iran, state media has been issuing contradictory reports of mystery explosions along the Hormuz corridor. It's as yet unclear what's happening, but reports say a pier was struck near Bandar Abbas, with other southern areas witnessing possible drone activity, and return anti-air fire. There's little that's confirmable at this early point. Via DropSite:

  • Iran’s IRGC-linked Tasnim News Agency reports that some Iranian sources are alleging “hostile action” by the UAE at Bahman Qeshm Dock near Bandar Abbas, though no official confirmation has been issued.
  • Some reports claimed air defenses responded to two drones after multiple explosions were heard in the Bandar Abbas area.
  • Other sources alleged the UAE, described by Tasnim as acting “as a tool of the Zionist regime,” was behind the incident at the dock.
  • Tasnim emphasized the claims remain unconfirmed
  • Iran's Mehr says air defenses shot down two 'hostile' drones over Bandar Abbas and Qeshm.

💢BREAKING: Iranian State Media Reports Commercial Pier Struck Near Bandar Abbas

Iranian IRGC-affiliated outlet Fars News Agency reported Thursday that parts of the Bahman Qeshm pier, a commercial and passenger port on the eastern side of Qeshm Island at the entrance to the… pic.twitter.com/nxgmpDvvk4

— Drop Site (@DropSiteNews) May 7, 2026

Possible US military raid incident?...

Iranian forces fired missiles at U.S. military units “that intended to seize an Iranian oil tanker” in the Strait of Hormuz, according to Iranian State TV. https://t.co/UwF4jVUoph

— Ariel Oseran أريئل أوسيران (@ariel_oseran) May 7, 2026 Trump Reportedly Mulling 'Project Freedom' Restart After Gulf States Lift Curbs On Military Access

The S&P 500 fell to session lows as oil spiked after the Wall Street Journal reported that the US is looking to restart Project Freedom as early as this week and that Saudi Arabia and Kuwait have lifted curbs on airspace access.

Saudi Arabia and Kuwait have lifted restrictions on the U.S. military’s use of their bases and airspace imposed after the start of the American operation to reopen the Strait of Hormuz, according to U.S. and Saudi officials, easing a hurdle that had tripped up President Trump’s effort to move ships through the vital waterway.

The Trump administration is now looking to restart the operation to guide commercial ships with naval and air support that it had paused after 36 hours this week, U.S. officials said.

It isn’t clear when that could happen though Pentagon officials gave a timeline of as early as this week.

The U.S. operation to force open the strait relied on an enormous fleet of aircraft to protect commercial ships from Iranian missiles and drones, making Saudi and Kuwaiti bases and airspace critical to its execution.

The kneejerk reaction was higher oil prices...

...and the odds of a peace deal by the end of next week lower...

Trump had suspended the effort, called Project Freedom, on Tuesday evening, after a phone call with the kingdom’s Crown Prince Mohammed bin Salman in which the de facto Saudi leader conveyed his concerns and advised the president of the decision about base and airspace restrictions, the Saudi officials said. The president tried to get the Gulf leader to back down, they said.

Iran Reiterates Uranium 'Red Line' - Pushes Oil Up

While this is nothing 'new' - the timing is key, given the US is still awaiting Tehran's response to the latest peace deal proposal, at a moment reports say the President Trump wants to wrap this up.

Iran Secretary of the National Security Commission of the Parliament told Nour News: No uranium has left the country; The right to enrich uranium, the complete lifting of sanctions, and the release of the country's assets are non-negotiable red lines. Further he said that "Trump's claim about the withdrawal of 400 kilograms of uranium from Iran is a "political bluff and a pure lie." No uranium has left the country."

The return of such firm rhetoric, and the likelihood that this signals a rejection of current Washington demands, sent oil climbing back up...

Oil Slides on Reports of 'Breakthrough' Coming for Stuck Ships

A very optimistic but unconfirmed early Thursday report: Sentiment in early morning trade was lifted after Al Arabiya reported that "the coming hours will witness a breakthrough for the situation of the ships stuck in the strait".

"The American naval blockade in the Strait of Hormuz is likely to be lifted after Washington and Tehran reportedly reached an agreement in this regard," the Saudi media report says. "The agreement between both the sides on lifting the naval blockade was reached upon on Thursday (may 7) after US agreed for a gradual reopening of the Strait of Hormuz."

Oil has been sliding through the morning...

And here's a huge but from Politico:

President Donald Trump’s constant belittling of Iranian leaders is alarming some Arab and U.S. officials familiar with the Middle East who worry that such insults could prove a major obstacle to truly ending a war that has strained the world economy. At the core of their concern is whether Trump is willing to show Tehran’s Islamist leaders enough respect to let them claim some level of victory, even if they agree to U.S. demands that leave them militarily weaker.

“He badly wants this to end,” a senior Gulf Arab official familiar with the peace talks said of Trump. “But the Iranians are so far refusing to give him what he needs to save face and leave. And he does not seem to understand that they need to save face, too.”

French Nuclear-Powered Carrier to Enter Red Sea, Gulf of Aden

France and Britain could be poised to very belatedly join the US military in Middle East regional waters, according to movements of warships as well as fresh statements. Egypt and France on Wednesday oversaw the transit of the French aircraft carrier Charles de Gaulle through the Suez Canal as part of a southbound convoy, the Suez Canal Authority announced.

The French Ministry of the Armed Forces has announced the nuclear-powered carrier is deploying to the Red Sea and Gulf of Aden as part of a multinational effort to restore navigation through the Strait of Hormuz, according to a fresh statement. So it's clear the convoy will remain largely in a background support role when compared to the US naval blockade in the Gulf of Oman region. Paris and London have also made clear their ships would only directly join Persian Gulf operations only once the war ended.

(Reuters) - Iran’s President Masoud Pezeshkian said he met recently with Supreme Leader Mojtaba Khamenei, state media reported on Thursday, offering a first public account of him meeting Khamenei after the latter suffered severe wounds at the start of the U.S.-Israeli war on…

— Phil Stewart (@phildstewart) May 7, 2026

On a technical level, the White House has just this week sought to pronounce that Operation Epic Fury has ended, and Project Freedom has begun. It's unclear whether the European allies buy this designation, however. Marcon has sought to make clear that France is not a party to the conflict, but Europe is seeking a diplomatic voice at the table after spending the last two months largely on the sidelines.

Two Key Gulf Allies Reportedly Suspended Base, Airspace Access For US

President Trump abruptly halted plans to support commercial shipping through the Strait of Hormuz after Saudi Arabia suspended US military access to its bases and airspace for the operation, two US officials told NBC. Kuwait is reported to have imposed similar restrictions in wake of being on the receiving end of Iranian missiles.

According to the officials, Trump caught Gulf allies off guard when he announced Project Freedom on Truth Social, triggering anger in Riyadh. Saudi Arabia is said to have responded by informing Washington that US forces would not be permitted to operate aircraft from Prince Sultan Air Base southeast of Riyadh or transit Saudi airspace in support of the mission. Other Gulf allies were also reportedly surprised by the development, with Drop Site News also reporting Kuwait has made a similar move to cut or restrict base access.

But here is how Trump framed the pause at the time in a Truth Social post: "Based on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran and, additionally"... and he also said it was necessary "to see whether or not the Agreement can be finalized and signed." By the following day it became clear that the two sides were no closer to getting to the negotiating table, much less actually inking an agreement to end the war.

President Trump has laid out a clear choice for Iran: Reach a deal, or the bombing resumes. pic.twitter.com/isThSrLwo9

— Trey Yingst (@TreyYingst) May 7, 2026

The White House is meanwhile denying the main content of the NBC report, with one official insisting that "regional allies were briefed in advance."

First Chinese Tanker Attacked Near Hormuz As Beijing Urges Waterway Reopened

There have certainly been escalating tensions in the Strait of Hormuz this week amid a wave of Iranian attacks on commercial ships after a U.S. military effort to escort merchant vessels through the maritime chokepoint. By midweek, tensions had simmered, and Iran is still reviewing a 14-point U.S. proposal to end the war, with Tehran expected to send its response to Pakistani mediators later today.

President Trump said talks with Iran have been "very good" and suggested a deal remains possible. Iran's Foreign Ministry confirmed the U.S. proposal is still under review. But when chaos erupted on the world's most critical waterway at the beginning of the week, a new report said that a large refined-products tanker owned by a Chinese shipowner was attacked off the UAE's Al Jeer port on Monday, according to Reuters.

Beijing-based business media outlet Caixin reported that the vessel's deck erupted in flames after the attack. The outlet noted the vessel was marked "CHINA OWNER & CREW." A shipping industry source told Caixin that this was the first time a Chinese tanker was hit in the three-month-long war, calling it "psychologically very hard to accept."

Shortly after the Chinese tanker was attacked, it became clear why, two days later on Wednesday, China's Foreign Minister Wang Yi called for the swift reopening of the Hormuz chokepoint. "The international community shares a common concern for the restoration of normal and safe passage of the strait," Foreign Minister Wang Yi told Iran's Abbas Araghchi, according to an official Chinese statement. "China hopes that the parties concerned will respond to the strong appeal of the international community as soon as possible."

China's urgency to resolve the highly disrupted Hormuz chokepoint comes just over a week before President Trump flies to Beijing to meet with President Xi Jinping. The big question is whether China will cooperate with the U.S. to end the conflict and reopen the Strait, as much of the tanker flow through this critical waterway is destined for Asia, and the disruption has led to fuel shortages and soaring prices of crude oil and related products in the region.

"China likes to present itself as a great stabilizing force in the world, but imagine if they had a genuine diplomatic achievement, such as brokering the opening of the Strait of Hormuz, as proof of that," Richard McGregor, senior fellow at the Lowy Institute, told Bloomberg. He noted that some in Beijing would advocate for using the moment to "squeeze some concessions out of the US" on issues such as Taiwan. The first Chinese tanker attacked in the U.S.-Iran conflict, as well as the upcoming Trump-Xi summit, might be the catalysts for the international community to pressure Iran into a peace deal with the U.S. Meanwhile, a French aircraft carrier is transiting through the southern part of the Suez Canal and into the Red Sea, preparing to restore Hormuz tanker flows.

More Regional Developments

via Newsquawk

  • Al Arabiya reported that "the coming hours will witness a breakthrough for the situation of the ships stuck in the strait", spurring pressure in the crude complex.
  • Iran is expected to provide its reply to the US proposal for ending the war to mediators on Thursday, according to CNN, citing a regional source.
  • US President Trump could turn to military action without an agreement with Iran ahead of the China trip, according to Axios, citing US officials.
  • Iran is expected to provide its reply to mediators on Thursday, CNN reported citing a regional source.
  • "Arabic sources: Reaching understandings regarding easing the siege in exchange for the gradual opening of the Strait of Hormuz ", Al Arabiya reported; "The coming hours will witness a breakthrough for the situation of the ships stuck in the strait".
  • Pakistani Foreign Ministry spokesperson said, "We do not talk about war and instead talk about dialogue and diplomacy. However, if any aggression similar to what we saw last year, we will respond; Pakistan will respond just as it did", Mallick posted.
  • Pakistani Foreign Ministry Spokesperson said "We have not yet received a response from Iran regarding the US amendments", Al Jazeera reported.
  • "Pakistani source to Al Arabiya said Iran may hand over its response to the US proposal to the Pakistani mediator today", Al Arabiya.
  • "No arrangements for any direct meetings between the Iranians and the Americans so far.".
  • "Contacts with the Iranians are ongoing and there are no obstacles hindering continued".
  • "Discussions are ongoing regarding the status of the Strait of Hormuz, and reaching understandings is still possible".
  • Pakistani Foreign Ministry said "We expect an urgent agreement between Iran and the United States", Al Araby reported.
  • "Israel was informed that Iran has agreed to transfer its stockpile of 60% enriched uranium to a third country that remains unknown", Sky News Arabia reported citing Israeli Channel 12.
  • Pakistani Foreign Ministry spokesperson, on US-Iran agreement, said "we would expect an agreement sooner rather than later", Pakistani journalist Mallick posted.
  • "We will welcome any settlement wherever that takes place, if it takes place in Islamabad, it would be an honour and privilege.”.
  • The proposed agreement between the US and Iran may limit the IDF's action in Lebanon, Israeli press reported citing an Israeli official.
  • US President Trump, on Iran, said it will all work out very quickly.
  • IDF said it has intercepted suspicious aerial target launched from Lebanon towards Israel following sirens that sounded in Manara, Margaliot and Kiryat Shmona.
  • Lebanon's PM Salam said it is not seeking normalisation with Israel and it is too early to discuss any possible meeting with Israeli PM Netanyahu.
  • Iran has issued a message to commercial vessels in the Strait of Hormuz, saying Iran's port is fully prepared to provide general maritime services and support to the vessels, IRNA reported.
  • US President Trump could turn to military action without an Iran agreement ahead of the China trip, Axios reported citing US officials.
  • US President Trump's reversal on his plan to help ships go through the Strait of Hormuz came after Saudi Arabia suspended the US's ability to use its bases and airspace to carry out Project Freedom, NBC reported citing US officials.
  • IRGC Navy Political Affairs Official said we will impose our control over the Strait of Hormuz, and any attack will be met with a plan beyond the enemy's calculations, Al Jazeera reported.
Tyler Durden Fri, 05/08/2026 - 07:00
Tyler Durden

zero rss

Copyright (c) 2026 FYCKL Project