Zero Hedge

On The War For The Soul Of Our Nation...

On The War For The Soul Of Our Nation...

Authored by James Howard Kusntler,

Werewolves Of London

“To use language to obscure reality is to show ‘indifference regarding the truth’ - to lie to the public and cease to treat our fellow citizens as equals.”

 - Justice Clarence Thomas

Now that the grand 250th USA birthday party is over - the speeches, the shrieking warplanes, the dazzling fireworks, the speeches and strawberry shortcake - there is only one way this thing can go. What thing? The war for the soul of the nation. Some mysterious somebody is behind the surging “Democratic-Socialist” craze. Somebody is paying for it. It’s a last-ditch drive to marshal the disaffected, under-employed young voters, choking on their college loans, deranged by anomie, and get them marching in solidarity with X-million illegal aliens to act-out an election jihad so as to squeeze out House and Senate majorities and, ultimately, wreck the nation.

That mysterious background “somebody” is not so mysterious. It just doesn’t self-identify under a banner, but you can easily tell who they are: the, the slippery closet-Marxist Barack Obama and, behind him, the American Deep State nomenklatura desperate to stay out of prison, along with the unelected EU Commission led by the grandmotherly sadist Ursula von der Leyen (plus the banksters behind her). Some call them “globalists.” They are a loose coalition of convenience against the populist threat of Mr. Trump in America and similar populist movements in Europe: AfD in Germany, the two parties of Nigel Farage and Rupert Lowe in the UK, and LePen’s Nationalist Rally in France.

The EU, with its front-men Macron, Merz, and whoever will replace Starmer this month, is currently preoccupied with its stupid effort to provoke Russia into a wider war, using their proxy, Ukraine. Mr. Putin, still advancing through the Donbas, refuses to get drawn-in deeper with the EU despite the drone and missile sorties lately banging-up his oil depots. Mr. Putin is actually a defender of Western Civ — yes, ironic, isn’t it, considering what his country escaped out of in 1991 — but it’s so. Russia has become our natural ally in this struggle as the EU goes all werewolf on both Russia and us. File under strange-but-true.

Contrary to Deep State propaganda, and the IRGC’s bullshit, Mr. Trump has the Iran situation in-hand. We have bigly reduced Iran’s capacity to make trouble in the world and our satellites watch everything they do now, so there will be no Iranian military re-build, no matter how the MOU talks go. They still do have the option of dropping their jihad fixation and acting like a normal nation, but we’ll just have to stand by on that.

What has to happen now in the USA is a summer of accountability. Perp walks. Indictments. Preparation for trials. Many of you are discouraged about this, I know, but please put those black pills back in the medicine chest. Accountability is coming. The mills of the law grind slowly, and its especially difficult since the Deep State has corrupted select precincts of the law, such as the US District Court for the District of Columbia, where rogue judges Boasberg, Chutkan, Sullivan, Howell, Meta, Reyes, Cooper, et al., have made an industry of paralyzing Mr. Trump’s executive branch.

Nevertheless, accountability might also be coming for Chief Justice John Roberts, who wrote the dodgy majority opinion on the SCOTUS’s June 30 “Birth Citizenship” decision (Trump v. Barbara), an epic fail for Justice Roberts (joined by Amy Coney Barrett and the three DEI gals). The 14th Amendment was written to mitigate the disruptions of the Civil War. Section One is clearly aimed at defining the full citizenship of former slaves, and that’s all, not the offspring of casual visitors and border-jumpers. There was considerable clarifying debate on the record about all that in June, 1866, with skeletons still being cleared off the battlefields. The 2026 decision looks like a debacle for reasons also obvious.

The Chief and his harem

What motivated Mr. Roberts to do such a harm? Perhaps he’s just an idiot, but there’s more lurking there.

It’s widely known that the Chief Justice made at least one week-long visit to Norm Eisen, after Eisen had been appointed Ambassador to Prague (2011) by his law school classmate, President Barack Obama. In these final years of Obama-in-office, Norm Eisen was busy plotting so-called Color Revolution in Europe, which climaxed in the 2014 Maidan operation in Ukraine. The purpose was to make Ukraine as a proxy to weaken Russia, and would come to entail massive money-laundering and the setting up of bio-weapons labs there. This was also the period when then-Veep Joe Biden was given the “Ukraine Portfolio” and was busiest with his own grifting enterprise, through son Hunter.

Norm Eisen went on to become the chief lawfare ninja coordinating against the Trump administration with his field captains: Marc Elias, Mary McCord, Andrew Weissmann, and others. All have been involved in suspiciously seditious activities through both Trump terms. What was the Chief Justice confabbing about with Norm Eisen in Prague then? About vagaries of US / EU legal cooperation? Or were they deliberating on tactics for dealing with Barack Obama’s as-then-undeclared successor? Or possibly on bringing color revolution to the US, if Barack Obama’s posterity declared it necessary?

Consider the strange situation that one Sheldon Snook was appointed Special Assistant to Roberts in 2014. Snook is married to lawfare ninja Mary McCord, who served as Acting Deputy Assistant Attorney General for the National Security Division, DOJ (2014–2016) and Assistant Attorney General for National Security, DOJ (2016–2017). She was involved in the initiation of the RussiaGate operation and in 2019 was appointed Special Counsel to Jerrold Nadler’s House Judiciary Committee during the 2019 impeachment inquiry into President Trump — the impeachment that was all about Ukraine. . . and what might have been going on there under Obama, especially Joe Biden shenanigans.

Consider, too, that a scandal has just emerged involving CJ Robert’s wife, Jane, and the enormous commissions she received working at the DC law firm Pillsbury Winthrop Shaw Pittman, and then the legal recruiting outfit Major, Lindsey & Africa (through 2019), and then legal another recruiting firm, Macrae, for placing eminent attorneys into law firms with active Supreme Court case practices. Her income from all this recruiting surpassed $10-million. CJ Roberts did not recuse himself from the cases involving these relationships. This is a still-developing story. . . .

And, of course, an investigation of California Governor Gavin Newsom begun, irony-of-ironies, by the Biden DOJ, has just blossomed into a florid scandal involving shell companies set up by Gov. Newsom’s busy wife, Jennifer, through which millions of dollars were laundered under various fake social and health service initiativs. Newsom appointee Alexis Podesta “wore a wire” during the period and is cooperating in the case. Buh-bye presidential hopes, Guv, and don’t let the cell door whack your ass on the way in.

These are just a few possible appetizers. The main course is coming up.

Tyler Durden Mon, 07/06/2026 - 16:20

On The War For The Soul Of Our Nation...

On The War For The Soul Of Our Nation...

Authored by James Howard Kusntler,

Werewolves Of London

“To use language to obscure reality is to show ‘indifference regarding the truth’ - to lie to the public and cease to treat our fellow citizens as equals.”

 - Justice Clarence Thomas

Now that the grand 250th USA birthday party is over - the speeches, the shrieking warplanes, the dazzling fireworks, the speeches and strawberry shortcake - there is only one way this thing can go. What thing? The war for the soul of the nation. Some mysterious somebody is behind the surging “Democratic-Socialist” craze. Somebody is paying for it. It’s a last-ditch drive to marshal the disaffected, under-employed young voters, choking on their college loans, deranged by anomie, and get them marching in solidarity with X-million illegal aliens to act-out an election jihad so as to squeeze out House and Senate majorities and, ultimately, wreck the nation.

That mysterious background “somebody” is not so mysterious. It just doesn’t self-identify under a banner, but you can easily tell who they are: the, the slippery closet-Marxist Barack Obama and, behind him, the American Deep State nomenklatura desperate to stay out of prison, along with the unelected EU Commission led by the grandmotherly sadist Ursula von der Leyen (plus the banksters behind her). Some call them “globalists.” They are a loose coalition of convenience against the populist threat of Mr. Trump in America and similar populist movements in Europe: AfD in Germany, the two parties of Nigel Farage and Rupert Lowe in the UK, and LePen’s Nationalist Rally in France.

The EU, with its front-men Macron, Merz, and whoever will replace Starmer this month, is currently preoccupied with its stupid effort to provoke Russia into a wider war, using their proxy, Ukraine. Mr. Putin, still advancing through the Donbas, refuses to get drawn-in deeper with the EU despite the drone and missile sorties lately banging-up his oil depots. Mr. Putin is actually a defender of Western Civ — yes, ironic, isn’t it, considering what his country escaped out of in 1991 — but it’s so. Russia has become our natural ally in this struggle as the EU goes all werewolf on both Russia and us. File under strange-but-true.

Contrary to Deep State propaganda, and the IRGC’s bullshit, Mr. Trump has the Iran situation in-hand. We have bigly reduced Iran’s capacity to make trouble in the world and our satellites watch everything they do now, so there will be no Iranian military re-build, no matter how the MOU talks go. They still do have the option of dropping their jihad fixation and acting like a normal nation, but we’ll just have to stand by on that.

What has to happen now in the USA is a summer of accountability. Perp walks. Indictments. Preparation for trials. Many of you are discouraged about this, I know, but please put those black pills back in the medicine chest. Accountability is coming. The mills of the law grind slowly, and its especially difficult since the Deep State has corrupted select precincts of the law, such as the US District Court for the District of Columbia, where rogue judges Boasberg, Chutkan, Sullivan, Howell, Meta, Reyes, Cooper, et al., have made an industry of paralyzing Mr. Trump’s executive branch.

Nevertheless, accountability might also be coming for Chief Justice John Roberts, who wrote the dodgy majority opinion on the SCOTUS’s June 30 “Birth Citizenship” decision (Trump v. Barbara), an epic fail for Justice Roberts (joined by Amy Coney Barrett and the three DEI gals). The 14th Amendment was written to mitigate the disruptions of the Civil War. Section One is clearly aimed at defining the full citizenship of former slaves, and that’s all, not the offspring of casual visitors and border-jumpers. There was considerable clarifying debate on the record about all that in June, 1866, with skeletons still being cleared off the battlefields. The 2026 decision looks like a debacle for reasons also obvious.

The Chief and his harem

What motivated Mr. Roberts to do such a harm? Perhaps he’s just an idiot, but there’s more lurking there.

It’s widely known that the Chief Justice made at least one week-long visit to Norm Eisen, after Eisen had been appointed Ambassador to Prague (2011) by his law school classmate, President Barack Obama. In these final years of Obama-in-office, Norm Eisen was busy plotting so-called Color Revolution in Europe, which climaxed in the 2014 Maidan operation in Ukraine. The purpose was to make Ukraine as a proxy to weaken Russia, and would come to entail massive money-laundering and the setting up of bio-weapons labs there. This was also the period when then-Veep Joe Biden was given the “Ukraine Portfolio” and was busiest with his own grifting enterprise, through son Hunter.

Norm Eisen went on to become the chief lawfare ninja coordinating against the Trump administration with his field captains: Marc Elias, Mary McCord, Andrew Weissmann, and others. All have been involved in suspiciously seditious activities through both Trump terms. What was the Chief Justice confabbing about with Norm Eisen in Prague then? About vagaries of US / EU legal cooperation? Or were they deliberating on tactics for dealing with Barack Obama’s as-then-undeclared successor? Or possibly on bringing color revolution to the US, if Barack Obama’s posterity declared it necessary?

Consider the strange situation that one Sheldon Snook was appointed Special Assistant to Roberts in 2014. Snook is married to lawfare ninja Mary McCord, who served as Acting Deputy Assistant Attorney General for the National Security Division, DOJ (2014–2016) and Assistant Attorney General for National Security, DOJ (2016–2017). She was involved in the initiation of the RussiaGate operation and in 2019 was appointed Special Counsel to Jerrold Nadler’s House Judiciary Committee during the 2019 impeachment inquiry into President Trump — the impeachment that was all about Ukraine. . . and what might have been going on there under Obama, especially Joe Biden shenanigans.

Consider, too, that a scandal has just emerged involving CJ Robert’s wife, Jane, and the enormous commissions she received working at the DC law firm Pillsbury Winthrop Shaw Pittman, and then the legal recruiting outfit Major, Lindsey & Africa (through 2019), and then legal another recruiting firm, Macrae, for placing eminent attorneys into law firms with active Supreme Court case practices. Her income from all this recruiting surpassed $10-million. CJ Roberts did not recuse himself from the cases involving these relationships. This is a still-developing story. . . .

And, of course, an investigation of California Governor Gavin Newsom begun, irony-of-ironies, by the Biden DOJ, has just blossomed into a florid scandal involving shell companies set up by Gov. Newsom’s busy wife, Jennifer, through which millions of dollars were laundered under various fake social and health service initiativs. Newsom appointee Alexis Podesta “wore a wire” during the period and is cooperating in the case. Buh-bye presidential hopes, Guv, and don’t let the cell door whack your ass on the way in.

These are just a few possible appetizers. The main course is coming up.

Tyler Durden Mon, 07/06/2026 - 16:20

Officials Tracking Growing Outbreak Of Legionnaires' Disease In New York

Officials Tracking Growing Outbreak Of Legionnaires' Disease In New York

Authored by Zachary Stieber via The Epoch Times,

An outbreak of serious pneumonia is growing in New York, officials said on July 5.

Eighteen cases of Legionnaires’ disease have been confirmed in several Manhattan neighborhoods, the New York City Department of Health and Mental Hygiene said late Sunday, up from 14 earlier in the day and 10 on Saturday.

The cases are clustered in three zip codes, 10028, 10128, and 10075, on the Upper East Side of Manhattan, the department said.

Legionnaires’ disease is a form of pneumonia caused by Legionella bacteria, which grow in warm water. The disease shares symptoms with influenza, such as fever and chills, and can be fatal if left untreated.

No deaths have yet been reported with the current outbreak.

People who live in the zip codes, or who have recently visited the east side of Central Park, should monitor for symptoms, New York City Health Commissioner Dr. Alister Martin said in a statement.

People who experience symptoms should see a health care provider immediately.

Treatment for pneumonia typically includes antibiotics, according to the Centers for Disease Control and Prevention.

Certain individuals are more vulnerable to the disease, including individuals aged 50 and older and those who smoke or vape.

One way people can contract Legionnaires’ disease is by breathing in water vapor or mist containing Legionella bacteria. People cannot get the disease from other people.

The probable source of the bacteria is a water cooling tower in the area, according to health officials.

The systems, usually located on top of buildings, control the temperature of cooling systems, such as refrigeration and spray mist systems, which contain the bacteria.

The city’s health department is testing all the cooling towers in the area.

“This is not an issue with any building’s plumbing system. It is safe for you to drink water, bathe, shower, cook, and use your air conditioner,” health officials said in a notice to residents.

“Continuing to use your air conditioner is especially important when the city is experiencing extreme heat and temperatures reach dangerously high levels.”

There have been outbreaks of Legionnaires’ disease in the past from plumbing systems in buildings, but there are no signs that this is the case with the current situation, according to officials.

Officials first reported the cluster of cases on July 2. They said at the time that any owners of buildings where cooling towers tested positive for the Legionella bacteria would be directed to carry out full remediation.

A Legionnaires’ disease cluster in central Harlem, also in Manhattan, sickened 114 people in 2025 and left seven dead.

Tyler Durden Mon, 07/06/2026 - 15:45

Officials Tracking Growing Outbreak Of Legionnaires' Disease In New York

Officials Tracking Growing Outbreak Of Legionnaires' Disease In New York

Authored by Zachary Stieber via The Epoch Times,

An outbreak of serious pneumonia is growing in New York, officials said on July 5.

Eighteen cases of Legionnaires’ disease have been confirmed in several Manhattan neighborhoods, the New York City Department of Health and Mental Hygiene said late Sunday, up from 14 earlier in the day and 10 on Saturday.

The cases are clustered in three zip codes, 10028, 10128, and 10075, on the Upper East Side of Manhattan, the department said.

Legionnaires’ disease is a form of pneumonia caused by Legionella bacteria, which grow in warm water. The disease shares symptoms with influenza, such as fever and chills, and can be fatal if left untreated.

No deaths have yet been reported with the current outbreak.

People who live in the zip codes, or who have recently visited the east side of Central Park, should monitor for symptoms, New York City Health Commissioner Dr. Alister Martin said in a statement.

People who experience symptoms should see a health care provider immediately.

Treatment for pneumonia typically includes antibiotics, according to the Centers for Disease Control and Prevention.

Certain individuals are more vulnerable to the disease, including individuals aged 50 and older and those who smoke or vape.

One way people can contract Legionnaires’ disease is by breathing in water vapor or mist containing Legionella bacteria. People cannot get the disease from other people.

The probable source of the bacteria is a water cooling tower in the area, according to health officials.

The systems, usually located on top of buildings, control the temperature of cooling systems, such as refrigeration and spray mist systems, which contain the bacteria.

The city’s health department is testing all the cooling towers in the area.

“This is not an issue with any building’s plumbing system. It is safe for you to drink water, bathe, shower, cook, and use your air conditioner,” health officials said in a notice to residents.

“Continuing to use your air conditioner is especially important when the city is experiencing extreme heat and temperatures reach dangerously high levels.”

There have been outbreaks of Legionnaires’ disease in the past from plumbing systems in buildings, but there are no signs that this is the case with the current situation, according to officials.

Officials first reported the cluster of cases on July 2. They said at the time that any owners of buildings where cooling towers tested positive for the Legionella bacteria would be directed to carry out full remediation.

A Legionnaires’ disease cluster in central Harlem, also in Manhattan, sickened 114 people in 2025 and left seven dead.

Tyler Durden Mon, 07/06/2026 - 15:45

"Arms Race Has Started": War Unicorns Enter M&A Phase As Ondas Snaps Up Kamikaze Drone Maker DZYNE

"Arms Race Has Started": War Unicorns Enter M&A Phase As Ondas Snaps Up Kamikaze Drone Maker DZYNE

The writing is on the wall: defense-tech unicorns, particularly those focused on loitering munitions, autonomous drones, and counter-UAS systems, are positioned for years of growth as warfare changes forever. 

These "war unicorns," as we call them, are increasingly ripe for M&A as larger players race to consolidate across drones and counter-drone systems. The latest example is Nasdaq-listed defense and industrial technology firm Ondas Holdings moving to acquire DZYNE Technologies, a maker of drones, loitering-munition-type systems, and counter-drone technology.  

Ondas Drone Box 

Bloomberg reports private equity firm Highlander Partners will receive $200 million in cash and about $675 million in Ondas stock. Those shares will be locked up for six months.

"The arms race has started," Ondas CEO Eric Brock said in a Bloomberg TV interview. "Over the last 20 plus years we have de-industrialized in the United States. That means the supply chain has moved to China."

The deal expands Ondas' portfolio beyond the civilian drone market into systems developed for military surveillance and reconnaissance, as well as smaller kamikaze drones.

DZYNE BlitzBox Drone 

Ondas said DZYNE is expected to generate $191 million in revenue this year and $300 million in 2027.

Recently, Needham analyst Austin Bohlig told clients of a potential drone procurement supercycle, as the US military prepares to spend billions of dollars on these low-cost systems.

Read the report:

Related:

Separate, but more on war technology coverage:

The Ondas-DZYNE deal further suggests that defense startups focusing on drones and counter-UAS are prime M&A targets for larger companies.

Tyler Durden Mon, 07/06/2026 - 15:25

"Arms Race Has Started": War Unicorns Enter M&A Phase As Ondas Snaps Up Kamikaze Drone Maker DZYNE

"Arms Race Has Started": War Unicorns Enter M&A Phase As Ondas Snaps Up Kamikaze Drone Maker DZYNE

The writing is on the wall: defense-tech unicorns, particularly those focused on loitering munitions, autonomous drones, and counter-UAS systems, are positioned for years of growth as warfare changes forever. 

These "war unicorns," as we call them, are increasingly ripe for M&A as larger players race to consolidate across drones and counter-drone systems. The latest example is Nasdaq-listed defense and industrial technology firm Ondas Holdings moving to acquire DZYNE Technologies, a maker of drones, loitering-munition-type systems, and counter-drone technology.  

Ondas Drone Box 

Bloomberg reports private equity firm Highlander Partners will receive $200 million in cash and about $675 million in Ondas stock. Those shares will be locked up for six months.

"The arms race has started," Ondas CEO Eric Brock said in a Bloomberg TV interview. "Over the last 20 plus years we have de-industrialized in the United States. That means the supply chain has moved to China."

The deal expands Ondas' portfolio beyond the civilian drone market into systems developed for military surveillance and reconnaissance, as well as smaller kamikaze drones.

DZYNE BlitzBox Drone 

Ondas said DZYNE is expected to generate $191 million in revenue this year and $300 million in 2027.

Recently, Needham analyst Austin Bohlig told clients of a potential drone procurement supercycle, as the US military prepares to spend billions of dollars on these low-cost systems.

Read the report:

Related:

Separate, but more on war technology coverage:

The Ondas-DZYNE deal further suggests that defense startups focusing on drones and counter-UAS are prime M&A targets for larger companies.

Tyler Durden Mon, 07/06/2026 - 15:25

When The Monetary Laws Of Physics Change

When The Monetary Laws Of Physics Change

Authored by Mark Jeftovic via BombThrower.com,

“You just wait until the next bear market…”

Last month, I talked about how many of the legendary investors I’ve long followed as well as many of my contemporary financial commentators (speaking specifically of the contrarian ilk), are almost unanimous in the opinion that the AI trade is well into bubble territory and stocks in general are overvalued. Hell, even I think that and I’m personally “all in” on AI and have a fair bit of equities exposure to it (not a tonne, but it’s there, and the biggest winners in the TSC portfolio lately have all been AI stocks and HPC stocks).

Angela sent me this Diary of a CEO interview with Jeremy Grantham – another legend – and she said it was scary. At his peak he managed something like $165B AUM, but he’s down to $80B or $90B now (he also says the only reason he’s still counted as a billionaire today, personally, is because they include the money he’s given away. Grantham has donated over 90% of his net worth to the Grantham Foundation, which invests and incubates primarily green-tech innovation to combat climate change.

Although Thomas Braziel, whose name you might recognize as a notable distressed asset investor who specializes in crypto i.e. Mt Gox claims, FTX, put out an interesting analysis of Grantham’s green tech foundation’s filings – and surmised that what he’s saying on the talk-show circuit isn’t lining up with where he’s actually allocating the foundation’s …money  )

Via: GMO Q4 2025 Letter

Grantham occupies an exalted perch in the pantheon of institutional investors, so when he opines on something, it tends to get picked up on, which one may find somewhat quizzical, given his lifetime batting average isn’t really in the same league as the likes of Buffett, Munger, Klarman, et al.

His lifetime average returns? The closest analog could be the lifetime average of the GMO Global Asset Allocation Composite, which he co-founded.

Their number? 8.43%. And 0.8% of that was because of a one-time litigation settlement received in 2024

Warren Buffett’s lifetime batting average is pushing 20% (19.8%).

The S&P itself, 10%.

In case you’re wondering how somebody became a billionaire by lagging the major index by 200bp over their entire career, it’s because Grantham is proficient at one thing in particular: not losing money.

The TL;DR from the DOAC interview? A lot of people are about to lose a lot of money.

When Stephen Bartlett told him he was invested in SpaceX, Grantham dead-panned, “Good luck with that”.

Bitcoin? “It’s a zero”.

The interview went a bit viral and I saw a lot of “Billionaire says Bitcoin is worthless” headlines in the mainstream financial press. Grantham has since been on a punditry tour (perhaps in promotion of his latest book, “The Making of a Permabear” – yes, really); and the soundbites that are being repeatedly teased out from them are his “Bitcoin is a zero” sermons, in one case getting into a somewhat heated exchange with Joe Kernen on CNBC – where Kernen, incredibly, makes some of my points far less diplomatically than I have here.

After Grantham trotted out the usual “no use case”, “there’s no there there”, “it’s a bubble”, Kernen straight-armed Grantham in the face with his underperformance over the past two decades,

“You’ve done a great disservice to anybody who’s listened to you over the last twenty years”.

Grantham’s response and attempt at a defence, combined with something else he said in the DOAC interview, are all leading up to my point here, while being 100% oblivious to it:

To Joe Kernen: he said “We’ve been in a bull market since 2009, let’s see how all this stuff holds up when the next bear market hits”

To Steven Bartlett: he cautioned how Amazon sold off a staggering 92% during the Dotcom bust.

During the drive to Hamilton for a board meeting, I listened to this short Alex Hormozi clip and his analogy (which he cribbed from Brian Johnson) hit me full force and I finally had a working metaphor that explained what I’ve been trying to articulate about these living legends of finance.

That they’re underestimating the significance of fiat debasement is true, but it doesn’t really explode in your brain as much as make your eyes glaze over.

The analogy is fish are swimming around in water.

Some of them become experts at swimming. They train their entire lives, they practice every day, they study the expert swimmers of yore, and they analyze nearly every aspect of the water they inhabit: it’s PH levels, alkaline, currents, flow – everything.

They know how a slight variance in one factor impacts the others – they know “which way the current is going”.

But over time, the water heats up; they may pick up on this, but they’re never quite prepared for what it means beyond a certain point.

When that point arrives, the water evaporates – and now it’s gas. Steam.

Setting aside for our purposes how this would fry the fish, imagine they’re still alive, but now they’re trying to apply everything they know about swimming in water to this new environment, which is gaseous, not liquid.

They would be flailing and flapping around like the proverbial “fish out of water”.

What happened?

They were never wrong about their fluid dynamics.

The physics changed and they had no model for the new reality.

Hormozi’s short clip was applying this metaphor to AI – which is certainly among the key drivers of the “monetary physics change” that we are now undergoing.

But the point of no return, when the phase shift started, was – I believe, and as Raoul Pal has always said – the Global Financial Crisis of 2007-2009.

That was when the water started turning to gas.

Grantham’s own yardstick measures the current bull market from then – when the central banks stepped in, when The Big Print started and when interest rate suppression and credit expansion became permanent features of the global monetary system (I would argue that the process started in 1980-82, and the GFC was a major tipping point).

Yes, Amazon came off 92% when the dotCom bubble burst. But anybody who had bought, even at the high right before that, is now up about 4,642.7 %

On the new Sovereign Capitalist site, we can model all this out interactively (see below).

Run the interactive widget here

On its surface, Grantham’s fixation on loss avoidance serves a purpose (recall Buffett’s top rules of investing: number one is “Don’t lose money”, number two is “See Rule number one”).

If I ever experienced a staggeringly huge life-changing windfall in one moment, I would carve out a “retire your bloodline”-type allocation and hand it to a guy like Grantham (more likely it would be Vito Maida  over at Patient Capital, here in Canada).

But being good at preserving capital has its own opportunity cost, which is far more pronounced now that we’ve traversed the inflection point into the Exponential Age.

The world has transitioned from flat to hyper-cubed – the architecture is completely different now, and the linear measuring stick known as fiat money is ill equipped for the task of describing it.

To Grantham’s point “you just wait until the next bear market”, there won’t be a next bear market, not until we change that measuring stick.

Until the monetary regime change happens – that “change in physics” – any drawdown, no matter how deep, will be papered over with incessant Big Prints until the system itself completes its metamorphosis.

Today’s post was an excerpt from The Sovereign Capitalist my recently relaunched premium service. This goes beyond a dashboard, it’s more of an operating system for high agency net-producers.  All members get access to the full pre-release version of my new book: The Blueprint – Survive & Thrive in an Overclocked Timeline.

Tyler Durden Mon, 07/06/2026 - 15:05

Hormuz In The Rearview As Asia-US Ocean Container Rates Soar Past $7,900

Hormuz In The Rearview As Asia-US Ocean Container Rates Soar Past $7,900

By Stuart Chirls of AmericanShipper

The container shipping market is being driven by geopolitics, rates, and network reshuffling, but freight-rate volatility and adjustments by carriers to protect schedules and pricing has supplanted Middle East disruptions as top-level concerns.

Asia-U.S. West Coast prices increased 8% to $6,175 per forty foot equivalent unit (FEU), according to Freightos, a data contributor to SONAR ocean market data.

Prices for Asia-U.S. East Coast transportation also rose 8%, to $7,998 per FEU.

SONAR‘s Ocean Supply/Demand Index reflects the surge in trans-Pacific demand, having recovered to year-ago levels

Iran has escalated steps to assert sole authority over vessel traffic in the Strait of Hormuz, writes Freightos Research Head Judah Levine, in a note to clients, even as it negotiates with the United States over terms of a final peace deal.

"Oil volumes out of the Gulf states are rebounding, though marine traffic was paused … following Iranian strikes on transiting vessels and sites in Bahrain and Kuwait,” Levine said. 

The United Nations abandoned ship evacuations after Tehran attacked a Mediterranean Shipping Co. vessel transiting a non-approved route.

As crude oil flows from the Persian Gulf resume, surging peak season demand – and not oil prices – are driving elevated container rates.

“The early start to this year’s peak has sent rates spiking on the main east-west lanes since mid-May,” Levine said, “with carriers shifting capacity from secondary lanes to service this demand, contributing to rate increases on secondary trades too.”

Zim recently launched a new Asia–East Coast South America service, while Hapag-Lloyd updated service rotations. Broader growth across fleets and new vessel orders with shipyards continues, suggesting carriers are still trying to balance network expansion with an increasingly uneven demand amid geopolitical events.

Since mid-May trans-Pacific prices to the U.S. West Coast have climbed 120%, and by 85% to East Coast gateways. By comparison, Asia-North Europe rates are up 70% in that time, and 85% to the Mediterranean.

In a remarkable show of importer confidence in projected consumer spending, “[t]rans-Pacific East Coast rates are now $1,000/FEU higher than last year’s frontloading-driven summer high,” wrote Levine, “with West Coast prices just above their 2025 peak. Europe and Mediterranean rates are $1,300- and $3,000/ per FEU above their 2025 peak season highs, respectively.

The National Retail Federation said 32% of surveyed consumers had started their back-to-school shopping in June, up from 26% in 2025, an indicator for retail spending later in the year.

The surge is delaying traffic at major hubs in South Asia, the Far East and Europe, shrinking available capacity and contributing to upward pressure on rates, Levine said.

The early rush is likely underpinned by an array of factors, from frontloading ahead of carrier fuel surcharges and manufacturer price increases, as well as approaching U.S. tariff deadlines.

“If enough shippers are indeed pulling peak season volumes forward, we could expect the early start to mean an early peak season unwind as well, possibly some time in July,” Levine said.

Volume strength may stretch on a little longer than many shippers may have preferred due to delays at congested ports, he added. “Carriers are set to introduce more rate increases to start July, so the degree of success carriers have with these price hikes should reflect where the market is in terms of this year’s peak-season peak.”

Tyler Durden Mon, 07/06/2026 - 14:25

Xbox Hit With 3,000 Layoffs After CEO Warns Business Is "Not Healthy"

Xbox Hit With 3,000 Layoffs After CEO Warns Business Is "Not Healthy"

Xbox CEO Asha Sharma issued a dire warning to staff on Monday: "Our business today is not healthy. We must reset Xbox."

Sharma's memo, first published on the Xbox website, announced cuts of 3,200 jobs tied to Microsoft's Xbox division, or equal to about 20% of staff, as deteriorating margins and disappointing Game Pass subscriptions have forced the unit into a major restructuring effort.

The 3,200-job reduction will be split into two waves: the first 1,600 layoffs will begin this week, with another 1,600 occurring over the rest of the fiscal year, according to the memo.

Last month, Sharma told employees in another memo that Xbox's "accountability margin," the metric Microsoft uses to reflect profit margin, had slipped to 3% and that annual revenue had tumbled to alarmingly low levels. "Going forward, this cannot continue," she wrote then.

The CEO said:

After careful consideration, I've made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today, and in addition, four studios will leave XBOX to new management. I recognize that a year-long restructuring creates additional challenges. Unfortunately, it is not possible to make all the necessary changes in a single day, and I wanted to be direct about the scale.

. . .

Our business today is not healthy. We are operating on margins that are 3-10x lower than those of comparable platform and publishing businesses. We entered Gen 9 with a smaller install base and a higher cost structure. To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content. While those businesses have created meaningful value, they did not grow at the pace we expected. As that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome. And now the industry is facing the most severe hardware crisis in its history. We must reset XBOX.

She provided color on restructuring across Xbox's content portfolio:

Since 2018, we have aggressively expanded our studio portfolio while the number of games created each month across the industry now outpaces the last ten years combined. We now find ourselves competing not only with the largest publishers, but also with smaller independent studios. It is neither possible nor desirable to own every great independent studio. We have also learned that we are not the best home for every type of studio; in a typical year, we lost 64 cents for every dollar we invested. As we reset XBOX, we will help independent creators succeed by providing open development tools and audiences to realize their vision.

Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games. Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane's management is beginning required consultation with its Works Council to review potential strategic options.

We are also making reductions across other units, and in some cases, shifting investment to focus on higher priority projects. These changes vary in size across Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game Studios. None of our first party publicly announced games or projects are being cancelled as part of these reductions.

In addition, Mojang and King will now report directly to me. These two studios have increasingly become platforms and are our largest by monthly active players. They bring critical geographic, demographic, and differentiation to XBOX.

The changes at Xbox come as the broader video game industry remains stuck in a post-pandemic slump. Compounding the pressure is the memory-chip squeeze, fueled by AI data-center demand, which has pushed console production costs higher and forced both Xbox and PlayStation prices to climb.

The release of GTA VI, now about 135 days away, cannot come soon enough. WallStreet analysts expect the blockbuster launch to drive a new wave of console demand and potentially produce some tailwinds for the struggling gaming industry.

Tyler Durden Mon, 07/06/2026 - 12:25

New Jersey Lawmakers Pass Bill To Establish Large Load Data Center Tariff

New Jersey Lawmakers Pass Bill To Establish Large Load Data Center Tariff

By Zachary Skidmore of DataCenterDynamics

New Jersey lawmakers have passed a bill that will direct the state's Board of Public Utilities (PUC) to establish a dedicated data center tariff for facilities with a capacity of 50MW or more, in an attempt to shield other ratepayers from cost increases tied to new builds.

A similar bill was originally proposed in June of last year by Democratic assemblymen Dave Bailey and Joe Danielsen. However, that initial bill was pocket-vetoed by then-governor Phil Murphy, who did not sign it before his term ended.

CoreSite’s NY3 data center is located in Secaucus and offers more than 138,000 square feet of capacity.CoreSite

Following the veto, the bill was replaced with S731, which proposed broader protections than the previous bill. It will now head to Democratic governor Mikie Sherrill for final approval. Assemblyman David Bailey Jr. said Sherrill's office was involved in drafting the latest version and expressed optimism she would sign it.

The new bill is broader than the previously vetoed bill, applying to both existing and new facilities, and lowering the threshold from 100MW. It also aggregates facilities that are under common ownership or on contiguous sites, treating them as a single large data center for purposes of the threshold.

Other provisions in the bill include requiring data centers to demonstrate their project is not proposed elsewhere to avoid speculative applications, providing financial guarantees to take or pay for at least 85 percent of the requested service for ten years, and committing to demand response and flexibility programs. In addition, the bill mandates that large data center customers be curtailed before residential customers during grid emergencies.

It will also require the PUC to prioritize interconnection for data centers that make binding commitments to bring their own clean generation or storage.

The bill is the latest to be passed within a state legislature, with several already enshrined in law, and many others currently making their way through the approval process.

Last month, regulators in Oregon approved a new rate class for data centers and other large loads, which is now in effect.

Before this, Oklahoma’s governor, Kevin Stitt, signed into law a new bill aimed at protecting ratepayers in the state from rising utility and infrastructure costs associated with data centers. This closely followed Florida, whose governor signed into law a similar bill that prohibited utilities from passing data center infrastructure costs on to residential and small-business ratepayers and required large-scale users to bear their full cost of service.

Other states to see similar rules proposed and passed include Ohio, North Carolina, and Virginia, to name a few.

Tyler Durden Mon, 07/06/2026 - 12:05

Truck Driver Accused Of Using Fake Documents To Steal $2.9 Million Cargo

Truck Driver Accused Of Using Fake Documents To Steal $2.9 Million Cargo

By Phil Bring of FreightWaves

Police in Greenfield, Indiana, arrested a California truck driver after officers recovered nearly $2.9 million worth of tungsten oxide powder that police said thieves stole during a cargo theft in Pennsylvania.

According to a June 28 news release from the Greenfield Police Department, officers received an alert around 6 a.m. Saturday regarding a wanted semi tractor-trailer traveling eastbound on Interstate 70 into Hancock County. Police said the truck was connected to a cargo theft that occurred in Pennsylvania on June 25. Officers located the truck and trailer just west of the Greenfield exit at mile marker 104, confirmed the information and conducted a traffic stop.

Police identified the driver as 31-year-old Deepak Kumar of Fresno, California. Authorities said Kumar used fraudulent documents to obtain a load of nearly 40,000 pounds of tungsten oxide powder. Police valued the shipment at $2,857,500 and said it was headed to Mitsubishi Materials Corporation in Japan.

Deepak Kumar, 31, of Fresno, California, was arrested June 27 after Greenfield police recovered a shipment of tungsten oxide powder valued at about $2.9 million. Police said Kumar faces theft-related charges in Pennsylvania. Source: Greenfield Police Department

Greenfield police arrested Kumar at the scene on an active arrest warrant issued by the state of Pennsylvania. According to police, the warrant charges Kumar with theft by unlawful taking of movable property and criminal use of a communication facility.

Officers transported Kumar to the Hancock County Jail following the arrest. Police said the Hancock County Prosecutor’s Office will determine whether Kumar will face criminal charges in Indiana related to the traffic stop and evidence recovered during the subsequent search warrant.

Police said officers impounded the truck and trailer through Inman’s Towing of Greenfield following the traffic stop. Investigators held both as evidence while they requested a search warrant. After a judge issued the warrant, officers searched the trailer and confirmed it contained the reported stolen cargo.

According to police, a representative of Mitsubishi Materials Corporation traveled to Greenfield on Sunday and took possession of the recovered shipment.

The Greenfield Police Department has not identified the Pennsylvania business where investigators allege the cargo theft occurred. Authorities also have not released additional information describing the fraudulent documents investigators said Kumar used to obtain the cargo.

Police have not identified additional suspects or released court documents describing the alleged cargo theft. The department said the Hancock County Prosecutor’s Office will determine whether Kumar will face additional criminal charges in Indiana related to the traffic stop and the evidence recovered during the search warrant.

Tyler Durden Mon, 07/06/2026 - 11:25

Saudi Arabia Sells Oil At A Discount For The First Time Since COVID Crash, As China Demand Collapses

Saudi Arabia Sells Oil At A Discount For The First Time Since COVID Crash, As China Demand Collapses

We previously discussed the unprecedented collapse observed in recent months in Chinese oil demand and imports, which led to the bizarre scenario where even Iran can't find buyers (read China) for its temporarily unsanctioned oil armada (see "Iran Runs Into Big Problem: No Buyers For Its Oil, As Full Tankers Pile Up Off China") and which prompted even JPM to point out that something bigger is going on behind the scenes.

Understandably, with such a huge source of demand sidelined, today Bloomberg reported that Saudi Arabia has made big reductions to its main crude oil prices for buyers in Asia, selling barrels at a discount for the first time since it embarked on a price war in 2020, as a surge of global supply heightens competition to find buyers.

State producer Saudi Aramco will lower Arab Light oil for next month by $11 a barrel to a $1.50 discount over the regional benchmark, according to a price list seen by Bloomberg. The last two times it sold the grade at a discount were during price wars in 2020 and 2015.

The large drop in prices, the biggest in at least 26 years, follows a surge at the height of the Iran war when the disruption to the Strait of Hormuz restricted the kingdom’s flows; it is also bigger than the $8 decline expected in a Bloomberg survey.

The surprise price cut underscores the surging volumes of oil that are now available on global markets, as the interim US-Iran peace deal enables Gulf producers to ramp up exports at the same time as a flood of trapped barrels escape through the Strait of Hormuz. The size of the cutback also raises questions whether other Middle East producers might be forced into steeper cuts to their prices as they compete for customers (mostly China, as India is quite happy importing cheap Russian oil) that are inundated with supply.

Aramco’s August prices are for buyers who purchase crude on long-term contracts, the main way in which the kingdom markets its barrels. Some traders who spoke to Bloomberg said even with such a large reduction, the barrels are more expensive than spot supplies from other regional producers that are available for immediate purchase on an adhoc basis.

According to Bloomberg, official prices from other producers in the region are expected to be released in the coming days.

Oil has plunged since the agreement between US and Iran came into effect in the middle of June, allowing traffic to resume through the Strait of Hormuz, the key chokepoint that had been largely blocked since the start of hostilities. Brent crude has given up all its wartime gains, and was trading below $72 a barrel on Tuesday.

Before the war, Saudi Arabia loaded most of its crude from within the Persian Gulf. However, Aramco diverted a chunk of those flows to its Red Sea facility at Yanbu as the war effectively blocked Hormuz. The kingdom made the rare move of selling some cargoes on a so-called spot basis in recent days, as it got resumed flows of shipments that had been trapped inside the Persian Gulf.

Tyler Durden Mon, 07/06/2026 - 11:10

When A Toll Isn't A Toll

When A Toll Isn't A Toll

By Benjamin Picton, senior market strategist at Rabobank

When A Toll Isn't A Toll

Yields on 10-year Treasuries finished last week up 11bps to 4.48% while yields on 10-year Bunds rose 8.5bps to 2.93%. Those higher borrowing costs came despite signs of weakening in the US jobs market, a weaker-than-expected prices paid figure on the ISM manufacturing index, and a surprisingly weak Eurozone CPI inflation report that follows in the wake of lower than expected inflation readings in the UK.

Market-based expectations of the future path of the Fed Funds rate finished the week a little lower than it started, with pricing of a future rate hike pushed out from October to December. 2-year Treasury yields fell by almost 4bps on Thursday after the payrolls report confirmed hiring in June was little better than half the expected figure.

This was still enough for the unemployment rate to tick down to 4.2% as a lower participation rate saw the labor force contract. Nevertheless, 2-year yields were higher across the week as sovereign curves bear-steepened.

Brent crude posted its first weekly gain in almost a month last week to see the front contract close up 0.18% at $72.12/bbl. The gains appear to have been short-lived as news of continued tanker flows through the Strait of Hormuz and a decision by OPEC+ over the weekend to ease production restrictions by 188,000 barrels/day from August steer the price action lower this morning. Announcements of increased production are all well and good, but when much of that production is occurring in the Persian Gulf or in Russia (where Ukrainian strikes against oil infrastructure are ongoing) the ability to actually ship the product to market will remain the critical limiting factor.

On that note, official figures show that Hormuz traffic is back to approximately 30% of pre-war levels, though this likely understates the true picture as many vessels are transiting dark (i.e. without their tracking systems on) to avoid the attentions of Iran’s IRGC. Bloomberg reports that six vessels transited the route closest to the Omani coastline under US auspices on Sunday without incident. That follows reports of up to eight vessels performing u-turns (with some later being redirected through the Iranian route) after attempting to transit close to Oman on Friday and Saturday.

Updated data from Kpler and Vortexa shows that crude exports from the UAE surged in June to exceed pre-war levels and approach record highs. The UAE’s recent decision to leave OPEC and OPEC+ is considered bearish over the longer term for energy prices as a diminished share of potential production is subject to non-market constraints.

On the other hand, Iran again indicated over the weekend that it will be instituting “service fees” on vessels transiting Hormuz through its territorial waters once the 60-day negotiating period kicked-off by the signing of the Iran-US memorandum of understanding expires. According to Iran’s ambassador to China a new fee regime is being designed in consultation with Oman and will include “special considerations” for China and other friendly nations in determining the level and type of fee applied. According to the ambassador, this is not a toll. This might prove be a convenient fiction for all parties given President Trump’s unyielding view that a permanent toll regime would not be acceptable after the 60-day negotiating period expires.

Critically, what this little titbit sets up is exactly the type of scenario we have been pointing towards for some time: the ‘oil market’ splitting into ‘oil markets’ with terms over pricing and access being determined by which geopolitical camp you happen to sit in, and a series of quid pro quos informing the deal that each party gets.

The prime movers here are the United States and China, with Iran having clearly chosen China and the UAE hitching its wagon to the US of A. An easy tell that this scenario is playing out will be pressure from Iran to have other Gulf producers accept a toll that isn’t a toll, and/or have their cargoes priced in CNY rather than USD. The USA, similarly, will pressure Gulf allies to price in Dollars and normalize relations with Israel to expand the Abraham Accords and have oil flow from east to west to cut out Iran entirely and demonstrate to China that Uncle Sam can step on the hose whenever he likes.

Europe and the balance of Asia are likely to be reduced to the role of spectators in these affairs. Highlighting the weakness of Europe’s current position in the Great Game, the Wall Street Journal carried a story last week on how the German Mittelstand is being decimated by state-backed Chinese competition, with the most energy-exposed sectors of the manufacturing economy faring particularly badly.

To a certain extent, the hollowing out of German industry at the hands of China mirrors the hollowing-out of British finance at the hands of the United States as more and more firms choose to list in New York in pursuit of higher multiples or are bought-up as value picks. This has elicited a response from the British Government in the form of the Mansion House compact aimed at encouraging pension funds to hold more British assets. If that fails, will the discussion then turn to capital controls under an Andy Burnham premiership?

Similarly, the rapid decline of the German Mittelstand will almost certainly elicit further protectionist measures from officials in Brussels who have just spent the last 18 months and more criticizing Washington for taking similar steps to protect American industry. In the absence of a hold-your-nose peace accord with Russia to reduce energy costs that will almost certainly not happen, what is Europe’s grand macro strategy to avoid being de-industrialised by China and vassalized by US energy and finance?

Tyler Durden Mon, 07/06/2026 - 09:15

Porsche To Eliminate 4,000 Jobs In Germany: Report

Porsche To Eliminate 4,000 Jobs In Germany: Report

Germany was once the industrial engine of Europe, but years of disastrous climate change policies, high energy costs, and left-wing economic mismanagement have battered its manufacturing base. This pressure has been roiling the country's auto industry, where struggling carmakers are restructuring operations through workforce reductions, production cuts, and capacity reductions.

Germany's top financial newspaper, Handelsblatt, reports that Porsche is preparing another round of deep job cuts at its main factories as the sports car maker grapples with weak demand.

The company is considering eliminating as many as 4,000 additional jobs at its Zuffenhausen plant, the outlet said, citing people familiar with the matter. These reductions would come on top of previously agreed cuts impacting 3,900 jobs.

Porsche's Zuffenhausen plant in Stuttgart is home to the brand's core sports car production lines, including the 911, 718, and Taycan.

Administration and management roles are expected to be reduced the most, while Porsche may also cut capacity at its Weissach development site by up to 30%.

Last month, Porsche CEO Michael Leiters said the company plans to produce at a lower capacity than the roughly 280,000 cars sold last year. He stated that the company must "make money with fewer cars."

Porsche's profit eroded further in the first quarter as the automaker faced mounting pressure from tariffs, geopolitical turmoil, and gaps in its model lineup. The emergence of Chinese EV giants like BYD and Chery in Europe is another troubling development for EU automakers.

Porsche is part of the Volkswagen Group, where the VW CEO recently warned that more than 100,000 jobs could be eliminated in a massive overhaul.

Tyler Durden Mon, 07/06/2026 - 09:00

Saylor's Strategy Sells 3,588 Bitcoin To Cover Preferred Dividends

Saylor's Strategy Sells 3,588 Bitcoin To Cover Preferred Dividends

Authored by Micah Zimmerman via Bitcoin Magazine.com,

Strategy sold 3,588 bitcoin for $216 million to fund dividends on its preferred securities, the company disclosed in a Form 8-K on July 6, 2026.

The sale marks the largest bitcoin disposal in the company’s history and its most direct admission that its dividend obligations now shape its treasury.

Chairman Michael Saylor posted about the transaction on social media. As of July 5, the company held 843,775 bitcoin in its reserves and $2.55 billion in cash. Saylor said the proceeds covered second-quarter dividends on four preferred instruments and the full June payment on a fifth.

The disclosed sale funded quarterly dividends on STRF, STRE, STRK, and STRD. It also covered the monthly dividend on STRC. Together these securities form the core of what Strategy calls its Digital Credit business.

Each instrument carries a distinct payout structure. STRF, the senior tier, pays a fixed 10% annual dividend on a $100 stated amount. STRE pays 10% a year on a €100 stated amount, denominated in euros. 

STRK pays 8% and converts to common stock if shares reach $1,000. STRD pays 10% but is not cumulative, giving the board room to skip a payment. 

STRC sits in the middle of the stack and pays a variable rate near 12%, reset to keep the security trading close to its $100 par. The board recently shifted STRC to semi-monthly payments.

None of the preferred securities is backed by the company’s bitcoin. Each holds only a claim on residual assets.

Why Strategy is selling

Strategy is the largest corporate holder of bitcoin. The company has built its treasury through repeated stock and debt offerings. Its bitcoin sits at a cost basis near $63.9 billion, or roughly $75,700 a coin.

That model created a growing cash bill. The preferred securities pay dividends in cash, not bitcoin. Strategy’s software business does not generate enough to cover them. 

Grayscale’s head of research, Zach Pandl, estimated the annual dividend load at $1.5 billion. When cash reserves run short, the company must raise more capital or sell coins.

For years Saylor pledged to never sell. That stance ended in late May 2026. Strategy sold 32 bitcoin for about $2.5 million, its first disposal since 2022, to fund preferred dividends. 

The move broke the pledge and drew wide attention. Saylor framed it as a signal of commitment to preferred holders rather than a retreat from bitcoin. “Our goal is to make STRC the best credit instrument in the world,” he said at the time.

The July sale dwarfs that first step. At 3,588 coins and $216 million, it is roughly a hundred times larger.

According to the company’s latest filing, Strategy sold 3,588 Bitcoin between June 29 and July 5. About 1,363 Bitcoin were sold during the first two days of the program at an average price around $59,256, with another 2,225 Bitcoin sold over the following five days at $60,773.

Buying and selling at once

Strategy continues to accumulate even as it sells. After the May sale, the company bought 1,550 bitcoin for $101.3 million, nearly 50 times the size of the disposal. It made a $2 billion purchase in May and a $2.54 billion purchase in April. 

The pattern shows a firm that funds dividends from its stack while adding to it through fresh capital raises.

That approach depends on market access. Strategy can issue new preferred shares and common stock to raise cash. When those markets cooperate, the company avoids large sales. When they tighten, bitcoin becomes the source of funds. 

The July disposal suggests the second condition held during the quarter.

Last night, Saylor posted “Bitcoin is Digital Energy” on X, accompanied by Strategy’s orange-dot Bitcoin acquisition chart, prompting expectations that another SEC filing disclosing a new Bitcoin purchase is imminent. Traders have come to view these weekend posts as a recurring signal ahead of Strategy’s BTC accumulation announcements. This time, the announcement was about a bitcoin sale.

At the time of writing, Strategy shares are down 2% in premarket and bitcoin has dipped below $62,000.

Tyler Durden Mon, 07/06/2026 - 08:47

Citi Expects Oil To Sink To $60 As Hormuz Traffic Normalizes

Citi Expects Oil To Sink To $60 As Hormuz Traffic Normalizes

Brent Crude prices could plunge to as low as $60 per barrel by the end of the year, according to the latest note from Citi's commodity research team which expects flows through the Strait of Hormuz to soon normalize and the US and Iran to reach a deal in the coming months.

"Fundamentals are rapidly reasserting themselves as Hormuz disruptions fade, with Brent back to the low $70s/bbl. While the US-Iran process remains fragile and disputes over Hormuz administration and transit fees persist, we expect the MOU to hold and turn into a deal over the coming months as incentives to de-escalate outweigh the alternative for the US, Iran, and much of the ME region. Shipping flows are normalizing, Chinese buyers remain absent, physical crude markets have weakened sharply, and inventories have drawn far less than expected," Citi’s Francesco Martoccia wrote in his latest note.

"We continue to recommend selling any summer rallies and forecast Brent reaching $60 to $65 a barrel by the turn of the year," Citi analysts said in the note (available to pro subs).

The investment bank has traditionally been one of the most bearish voices in the market, and especially now that it expects shipping through Hormuz to normalize now that the Strait is open again. Moreover, China’s crude buying remains weak, physical prices have crumbled due to the surge of prompt supply from the Middle East, while “inventories have drawn far less than expected,” Citi said.

Inventories, including in the United States, have crashed to multi-decade lows since the war began four months ago. Buying to refill depleted stockpiles could support oil prices going forward, more bullish analysts say. 

However, the coming global race to rebuild depleted oil inventories will not be enough to offset a massive glut that’s coming to the market next year, as traffic through the Strait of Hormuz appears to be headed toward normalization, Goldman Sachs said this week.

The investment bank expects the global oil surplus to be about 3 million barrels per day (bpd) next year, Samantha Dart, co-head of global commodities research at Goldman, told Bloomberg Television in an interview on Wednesday.

“We do expect a little over 1 million barrels a day just of SPR rebuilding globally, but still, that would leave us close to 2 million barrels a day of a surplus,” Dart added.

Other Wall Street banks have also started to predict a glut next year after the U.S. and Iran signed the MoU.

Morgan Stanley, for example, has slashed its oil price forecasts for the next 18 months as it expects the reopening of the Strait of Hormuz to accelerate a new supply glut.

Tyler Durden Mon, 07/06/2026 - 05:45

The Three SHTF Scenarios That Could Change The World Faster Than Anyone Expects!

The Three SHTF Scenarios That Could Change The World Faster Than Anyone Expects!

Authored by Madge Waggy,

For decades, the greatest threats to global stability were often imagined as distant possibilities—events reserved for history books, military simulations or the darkest years of the Cold War. Today, that assumption is becoming increasingly difficult to defend. International defense spending has reached levels not seen in decades, armed conflicts continue to reshape regional security architectures, and governments across Europe, North America and Asia are investing heavily in civil defense, cybersecurity and the protection of critical infrastructure. These are not preparations made in anticipation of ordinary times, but responses to a world that has become measurably more volatile than it was only a few years ago.

History offers a sobering reminder that societies are rarely transformed by a single catastrophic event. More often, they are changed by a sequence of crises that appear unrelated until they begin reinforcing one another—geopolitical confrontation, economic instability, infrastructure failures and the gradual erosion of public confidence. Whether viewed through the lens of preparedness, national security or historical precedent, one conclusion remains remarkably consistent: the most consequential moments are often recognized only after they have already begun.

Top Three Unstoppable SHTF Scenarios

Three crises that could change everyday life faster than most people believe possible.

 

1. Nobody Notices the Beginning

 

One of the biggest misconceptions about large-scale disasters is that they begin with a single dramatic event. Movies have trained us to expect sirens, mushroom clouds and emergency broadcasts interrupting television programming. Reality has been far less theatrical. Most crises begin quietly, almost anonymously, disguised as temporary inconveniences that appear manageable until they suddenly aren’t.

Think back to the first weeks of 2020. News reports about an unfamiliar virus circulated for weeks before most people paid attention. Outside a handful of specialists, almost nobody seriously believed that international travel would stop, businesses would close overnight or supermarket shelves would be stripped bare by ordinary shoppers. Looking back now, it’s easy to say the warning signs were obvious. At the time, they blended into the constant flow of headlines competing for attention every single day. That pattern has repeated itself throughout history. Major disruptions rarely arrive without warning; they arrive surrounded by so much background noise that almost nobody recognizes them until hindsight turns scattered events into an obvious timeline.

The reason this matters is that the international situation entering the second half of the decade feels unusually crowded with risks that, taken individually, don’t necessarily point toward catastrophe. The war in Ukraine continues to reshape European security policy. Military spending has increased across much of NATO, while countries that had spent decades reducing their armed forces are now expanding recruitment and rebuilding stockpiles of ammunition. In Asia, naval activity around Taiwan has become more frequent, North Korea continues to invest in its missile program, and governments throughout the Pacific are preparing contingency plans that would have sounded alarmist only a few years ago. None of those developments automatically lead to global conflict, but together they create an environment where a single mistake could carry consequences well beyond the region where it begins.

Military planners have long argued that modern wars are less likely to start with a formal declaration than with a sequence of rapidly escalating incidents. A cyberattack disables part of a communications network. Intelligence services detect unusual military movements that may—or may not—be routine exercises. Satellite images are interpreted differently by opposing governments, each convinced the other is preparing to move first. Political leaders are then forced to make decisions in real time while operating with incomplete information, knowing that waiting too long carries risks, but acting too quickly may trigger the very crisis they hope to avoid. History contains numerous examples of conflicts that expanded not because every participant wanted war, but because every participant believed the other side had already decided that war was unavoidable.

2. The Black Sky Event

Few people spend much time thinking about the electrical grid. It is one of those systems that exists almost entirely in the background, quietly supporting modern life without demanding much attention from the people who depend upon it every single day. Flip a switch, and the lights come on. Open a banking application, and a payment is processed within seconds. Order groceries online, and thousands of decisions involving warehouses, logistics companies, transportation hubs and inventory management systems unfold without ever becoming visible to the customer. The greatest achievement of modern infrastructure may not be its scale, but its ability to disappear into everyday life. Only when one part of the system stops working does the extraordinary complexity behind ordinary routines become impossible to ignore.

That complexity has become increasingly difficult to overlook during the past several years. Governments have invested heavily in strengthening electrical networks, protecting telecommunications infrastructure and improving cybersecurity across both public and private sectors. The motivation is not difficult to understand. Modern economies rely upon systems that exchange enormous amounts of information every second, balancing electricity demand, coordinating transportation schedules and synchronizing financial transactions with remarkable precision. A disruption affecting one network rarely remains confined to a single location. Even relatively localized failures can create unexpected consequences elsewhere, not because the systems are fragile by design, but because they have become deeply interconnected through decades of technological progress.

The idea behind what preparedness communities have often described as a “Black Sky” event does not begin with a spectacular disaster. Instead, it unfolds gradually, almost quietly, in a manner that resembles the opening stages of previous crises. A regional outage lasts longer than utility companies initially expected. Mobile networks become unreliable across several metropolitan areas. Electronic payment terminals begin experiencing intermittent interruptions, forcing businesses to accept only cash while technicians investigate the source of the problem. Distribution centers report delays after software responsible for routing deliveries starts producing inconsistent data. None of these developments appears catastrophic on its own. Each can be explained individually. Together, however, they begin creating a pattern that attracts far more attention than any isolated incident would have received only days earlier.

Early Developments
  1. Electrical disruptions spread beyond the area where they first appeared.

  2. Communications become increasingly inconsistent rather than failing completely.

  3. Retail supply chains begin experiencing delivery delays.

  4. Financial institutions introduce temporary safeguards while investigating technical anomalies.

  5. Emergency services activate contingency procedures designed for prolonged infrastructure failures.

What makes the situation increasingly difficult to interpret is the speed at which uncertainty travels. Modern societies produce an extraordinary volume of information every hour, yet during periods of disruption the demand for answers almost always exceeds the supply of verified facts. News organizations rely upon official briefings that evolve as new information becomes available. Independent analysts compare satellite imagery, transportation data and publicly available infrastructure reports, frequently arriving at different conclusions. Social media platforms amplify eyewitness accounts from thousands of locations simultaneously, mixing accurate observations with misunderstandings, speculation and deliberate misinformation until distinguishing one from another becomes a challenge in itself.

History suggests that confidence can become as important as physical infrastructure during moments of uncertainty. Supermarkets rarely maintain weeks of inventory because modern logistics have made constant replenishment far more efficient than long-term storage. Fuel stations depend upon scheduled deliveries arriving with remarkable consistency. Pharmacies receive regular shipments that reflect predictable patterns of demand. Hospitals coordinate supplies through sophisticated procurement systems designed around uninterrupted transportation. Under ordinary circumstances, these arrangements represent one of the greatest strengths of the global economy. During periods of sustained disruption, however, even modest delays can begin affecting sectors that appear unrelated at first glance.

As reports continue emerging from different regions, attention gradually shifts away from the original outages toward the broader question of resilience. Engineers focus on restoring damaged infrastructure, while government agencies attempt to coordinate information across multiple jurisdictions. Businesses activate continuity plans that had existed largely on paper until circumstances required their implementation. Some organizations transition smoothly to backup systems, while others discover that contingency measures designed years earlier no longer reflect the complexity of present-day operations. Every hour brings incremental progress in some areas and unexpected setbacks in others, creating an environment where optimism and concern coexist in equal measure.

Rather than producing immediate panic, the first noticeable change appears in everyday routines. Families begin purchasing additional bottled water, batteries and shelf-stable food—not necessarily because they expect the worst, but because recent experience has demonstrated how quickly normal purchasing habits can change during periods of uncertainty. Hardware stores report increased demand for portable generators and emergency lighting. Local governments remind residents to review preparedness plans originally developed for severe weather events. These individual decisions seem reasonable when viewed independently, yet together they begin reshaping daily life in subtle but unmistakable ways.

By the time officials announce that restoration efforts may require considerably longer than originally anticipated, the conversation has already expanded beyond electricity itself. The real question is no longer whether power will eventually return, but how a society built upon continuous connectivity adapts when continuity can no longer be taken for granted. That question, more than any technical explanation or engineering report, becomes the defining theme of the weeks that follow.

3. The Hidden Variable

Every crisis begins with a tangible problem. A military confrontation unfolds along a border. A cyberattack disrupts essential services. A financial shock sends markets into turmoil. These events dominate headlines because they can be measured, mapped and documented. They leave behind damaged infrastructure, economic losses and political consequences that analysts can examine long after the immediate emergency has passed.

The more difficult question is what happens after those measurable events begin influencing something far less visible.

History suggests that societies rarely unravel because of a single catastrophe. More often, they are tested by uncertainty itself. Information becomes fragmented, official statements evolve as new facts emerge, and competing interpretations race across television broadcasts, podcasts and social media platforms faster than any government can realistically respond. Within hours, millions of people may be looking at the same event while reaching entirely different conclusions about what has actually happened.

The modern information environment has transformed that process in unprecedented ways. During previous generations, news traveled through a relatively small number of newspapers, radio stations and television networks. Today, virtually anyone can publish photographs, videos or eyewitness accounts that reach a global audience within minutes. This democratization of information has created extraordinary opportunities for transparency, but it has also made distinguishing reliable reporting from incomplete or manipulated content considerably more difficult.

In an environment already strained by military tensions, infrastructure disruptions and economic uncertainty, information itself begins behaving like another critical resource. Accurate reporting becomes increasingly valuable precisely because it is competing against an overwhelming volume of conflicting claims. Every delay in communication creates space for speculation. Every contradictory statement encourages further debate. Every unanswered question generates dozens of possible explanations before investigators have even completed their initial assessments.

This gradual erosion of certainty produces consequences that extend well beyond politics. Financial markets react not only to events themselves but also to expectations about what may happen next. Businesses postpone investments when reliable forecasts become difficult to produce. Consumers delay major purchases, employers slow hiring decisions and international companies reconsider expansion plans while waiting for greater clarity. None of these individual decisions appears dramatic in isolation. Collectively, however, they can reshape economic activity far more effectively than a single headline ever could.

The same pattern has appeared repeatedly throughout modern history. Economic crises have often been accelerated by collapsing confidence rather than disappearing resources. Banking systems depend upon trust that deposits will remain accessible. Supply chains depend upon confidence that contractual obligations will be fulfilled. Democracies depend upon public acceptance that institutions remain capable of resolving disputes peacefully, even during periods of extraordinary disagreement. Once confidence begins deteriorating, restoring it often proves considerably more difficult than repairing damaged infrastructure or rebuilding physical assets.

Signals That Often Accompany Periods of Heightened Uncertainty
  1. Rapidly changing official guidance as new information becomes available.
  2. Increased market volatility driven by expectations rather than confirmed developments.
  3. Growing dependence on unofficial sources for real-time updates.
  4. Sudden shifts in consumer behavior despite stable underlying supply.
  5. Expanding public debate over which institutions remain the most reliable.

One of the defining characteristics of the digital age is that every major event now unfolds simultaneously across multiple realities. The physical event occurs first. Within minutes it is interpreted by journalists, government agencies, financial analysts, independent researchers and millions of ordinary citizens, each bringing different assumptions and priorities. By the end of the day, the public conversation may no longer revolve around the original event itself, but around competing explanations of what it means and what should happen next.

This phenomenon has introduced a challenge that previous generations rarely faced on such a scale. The speed of communication has increased exponentially, while the speed of verification has not. Satellite imagery requires analysis. Intelligence assessments require corroboration. Infrastructure failures require technical investigation. Financial data requires careful interpretation. Reliable conclusions almost always arrive more slowly than speculation, creating an unavoidable gap between public demand for immediate answers and the time required to produce them responsibly.

For emergency planners, that gap represents one of the most significant challenges of modern crisis management. Restoring electricity, reopening transportation corridors or stabilizing financial systems remains essential, but maintaining public confidence increasingly depends upon something equally important: clear, consistent and credible communication. Without it, even temporary disruptions can appear far larger than they actually are, while isolated incidents may be interpreted as evidence of broader systemic failures.

Perhaps that is the lesson connecting all three scenarios explored throughout this article. Military escalation, infrastructure disruption and institutional uncertainty are often discussed as separate risks, each belonging to different areas of expertise. In reality, modern societies have become so interconnected that developments in one domain inevitably influence the others. A geopolitical confrontation affects energy markets. Energy disruptions influence industrial production. Economic uncertainty shapes political decision-making. Information networks amplify every stage of the process, compressing days of public reaction into hours.

Whether future crises resemble past events or take entirely new forms, one principle remains remarkably consistent. The resilience of a society depends not only upon the strength of its military, the sophistication of its technology or the size of its economy, but also upon its ability to adapt when certainty becomes scarce. Throughout history, civilizations have demonstrated an extraordinary capacity to recover from disasters that once appeared overwhelming. The greatest advantage has rarely been perfect preparation or flawless prediction. More often, it has been the willingness to remain adaptable, cooperate across institutions and communities, and make informed decisions despite incomplete information.

In an era defined by accelerating technological change and increasingly interconnected systems, that may prove to be the most valuable form of resilience of all.

The Common Thread

Looking back through history, it is remarkable how often major crises are remembered for the moment they reached public consciousness rather than the moment they actually began. The headlines that define an era usually arrive only after months, and sometimes years, of developments that seemed disconnected while they were unfolding. Economic downturns are rarely caused by a single trading day. Wars seldom begin with one isolated incident. Even technological revolutions tend to emerge gradually before suddenly appearing inevitable in retrospect. The same pattern can be found across countless historical events, where the decisive turning point often becomes obvious only after enough individual pieces have fallen into place.

That observation forms the common thread connecting every scenario explored throughout this article. Although military conflict, infrastructure disruption and institutional uncertainty appear to belong to different worlds, they are ultimately linked by the same underlying reality: modern civilization functions as an interconnected system. Decisions made in one capital influence financial markets on another continent. A disruption affecting a single shipping route alters manufacturing schedules thousands of kilometers away. Political uncertainty reshapes investment, while economic instability influences diplomacy, defense planning and public confidence. Each development interacts with countless others, creating consequences that are often impossible to predict from any single event alone.

Perhaps that is why periods of rapid change have always been so difficult to recognize while they are happening. Human beings naturally interpret new developments through the lens of previous experience. Temporary shortages are expected to remain temporary. Political disagreements are assumed to follow familiar patterns. Technical failures are treated as isolated problems waiting for engineers to solve them. Most of the time, those assumptions prove correct. Societies recover, institutions adapt and ordinary life gradually resumes. It is precisely because this pattern has repeated so often that genuinely transformative moments are frequently underestimated during their earliest stages.

Preparedness, therefore, has never been solely about stockpiling supplies or anticipating worst-case scenarios. At its core, preparedness has always reflected something far broader: the ability to adapt when familiar assumptions no longer apply. History consistently rewards flexibility over certainty. Communities that cooperate tend to recover more quickly than those divided by distrust. Organizations capable of adjusting to rapidly changing conditions often outperform those relying exclusively on rigid plans. Individuals who remain informed without becoming overwhelmed are generally better positioned than those driven entirely by optimism or fear.

One lesson emerges repeatedly from past crises. Information matters, but judgment matters even more. During periods of uncertainty, headlines compete for attention, opinions multiply and speculation often spreads faster than verified facts. The challenge is not simply finding more information, but learning how to evaluate it carefully, recognizing the difference between immediate reactions and longer-term trends. Decisions made under pressure rarely benefit from panic, yet they also suffer when obvious warning signs are ignored. Maintaining that balance has always been one of the defining characteristics of resilient societies.

The world entering the second half of this decade is neither uniquely dangerous nor uniquely secure. It is, however, more interconnected than at any previous point in history. Advances in technology, communication and global trade have delivered extraordinary prosperity and unprecedented convenience, while simultaneously creating new forms of dependency that earlier generations never experienced. That duality is likely to define many of the challenges ahead. Every innovation that strengthens society also introduces new questions about resilience, complexity and the unintended consequences of living in a world where events on one side of the planet can influence daily life on the other within hours.

For that reason, the value of examining scenarios such as those presented here lies less in predicting the future than in appreciating how quickly circumstances can change when multiple systems interact. History has repeatedly demonstrated that resilience is rarely built in the middle of a crisis. It is developed beforehand through planning, cooperation, investment in reliable institutions and an informed public capable of responding thoughtfully when conditions become uncertain.

No one can predict precisely what the next defining global crisis will look like. It may resemble challenges experienced before, or it may emerge from directions that currently receive little attention. What history suggests with remarkable consistency is that the first signs are seldom recognized for what they are. They appear as isolated headlines, temporary inconveniences or regional developments that seem unlikely to affect anyone beyond their immediate surroundings. Only later, when enough connections become visible, does the larger picture begin to emerge.

And perhaps that is the most enduring lesson of all. The greatest challenges are not always the ones that arrive with the loudest warning. More often, they begin quietly, almost unnoticed, hidden within the ordinary rhythm of everyday life until the moment that rhythm changes—and the world realizes it has already entered a new chapter.

Tyler Durden Mon, 07/06/2026 - 05:00

World Cup Fans Drive Spending Surge In These US Host Cities

World Cup Fans Drive Spending Surge In These US Host Cities

Bank of America has released new aggregated credit and debit card data showing that the World Cup is already driving a noticeable increase in retail spending activity across the tournament's 11 U.S. host cities.

According to BofA analyst Aditya Bhave, brick-and-mortar spending at restaurants and bars in host cities rose 5.3% year over year in the three weeks ending June 27, outpacing the 3.8% gain seen across the rest of the U.S.

Bhave noted that other forms of brick-and-mortar retail spending also accelerated in host cities, suggesting the tournament is providing a real-time boost for local restaurants, bars, and retailers.

Boston and Miami were exceptions, with restaurant and bar spending remaining flat and other retail spending slowing. Bhave said both cities hosted Scotland group-stage games and suggested that a heavy inflow of Scottish fans may have crowded out local spending.

Bhave noted that the data likely understates the full impact of the World Cup because it captures only spending by BofA customers.

Professional subscribers can read more notes on consumer here at our new Marketdesk.ai portal. 

Tyler Durden Mon, 07/06/2026 - 04:15

LEGO Faces Backlash Over Pride-Themed Content Aimed At Kids

LEGO Faces Backlash Over Pride-Themed Content Aimed At Kids

Via American Greatness,

The Denmark-based toy company LEGO is facing criticism after promoting Pride-themed content on social media and its website. Parents accused the company of introducing LGBT themes to a brand primarily marketed to children.

Although LEGO produces some building sets for adults, the company markets most of its products to children. Many young consumers follow the brand on social media.

In a recent Instagram post, LEGO celebrated Pride Month with the caption, “Pride moments built, brick by brick. Swipe to see more of our LEGO colleagues’ stories.”

The accompanying slideshow featured LEGO minifigures recounting coming-out experiences, including one character attending a Pride parade and another depicting a male character proposing to his boyfriend.

Parents and social media users criticized the post, with several calling for a boycott of the company.

“LEGO is now openly pushing Pride parades, gay marriage, and rainbow ideology straight at children,” one commenter wrote on X.

“This isn’t ‘inclusion.’ It’s sexualizing childhood and grooming the next generation with adult themes.”

The commenter added, “Parents are waking up. Boycott time. Companies that target kids with this stuff deserve to lose customers… keep this garbage away from our children.”

In 2021, LEGO released a set titled “Everyone Is Awesome,” featuring 11 faceless minifigures displayed in the colors of the Progress Pride flag. The company labeled the set for ages 18 and older.

According to the information provided, the set’s designer, Matthew Ashton, said it was created with children in mind and reflected his own experience of coming out as a teenager.

“Children are our role models and they welcome everyone, no matter their background. Something we should all be aspiring to,” Ashton said.

“If I had been given this set by somebody at that point in my life, it would have been such a relief to know that somebody had my back. To know that I had somebody there to say ‘I love you, I believe in you. I’ll always be here for you.’ So, in a way, this set is not just for the LGBTQIA+ community. It’s for all of the allies — parents, siblings, friends, schoolmates, colleagues, etc. — out there as well.”

The company also promoted a Pride Month activity on its official website on June 1.

“It’s time to paint the town red, orange, yellow, green… basically a whole rainbow of color! That’s right, it’s Pride Month, and we’re celebrating the best way we know how: with LEGO® bricks!” the activity description states.

The page encouraged participants to create Pride-themed LEGO builds, stating, “This year, we want you to celebrate what makes you—and everyone you love—quite frankly, AWESOME.”

Tyler Durden Mon, 07/06/2026 - 03:30

Soaring Imports Push India's Crude Stocks To Near 1-Year High

Soaring Imports Push India's Crude Stocks To Near 1-Year High

India’s strategic and commercial crude oil inventories have jumped to a nearly one-year high as the world’s third-largest crude oil buyer boosted its imports to a record high in June, OilPrice reported.

As at the end of June, India’s crude oil stocks held in strategic, commercial, and refinery storage had increased to 104 million barrels, up from 90.5 million barrels at the end of April, according to data from commodity intelligence provider Kpler cited by Indian outlet Economic Times. Before the Iran war began, India held 107 million in crude oil inventories as of the end of February—the highest end-month level for the previous 12 months.

The war depleted inventories in March and April, before Indian refiners started raising imports from Russia and turn to Venezuela—both sources of supply that doesn’t need to transit the Strait of Hormuz.

By June, stocks were recovering and nearing the level from before the Iran war.

India imported a record high level of 5 million barrels per day (bpd) of crude oil in June, more than half of which - 2.6 million bpd - from Russia, thanks to the U.S. waiver (now expired) on sales of Russian oil already loaded on tankers.

Yet, India wants to lower its crude import bill, protect public finances, and become more resilient to supply shocks such as the Middle East conflict that crippled supply from the Strait of Hormuz. That’s why it is looking to boost energy security by diversifying import sources and expanding its strategic storage.

Currently, India’s underground Strategic Petroleum Reserve storage has a total capacity of 5.33 million metric tons of crude oil, equal to only 39 million barrels of crude oil, or eight days’ worth of India’s oil consumption.

India’s storage of just about a week of its roughly 5 million bpd of consumption, is well below the SPRs of many other large oil consumers, which exposes New Delhi’s vulnerability to sudden supply shocks.

Separately, in response to media reports that India is flipping Russian oil imports by exporting its products back to Russia, India’s Oil Minister, Hardeep Singh Puri, said that the country's refiners are not directly exporting any refined petroleum products to fuel-starved Russia, although some supplies from traders are likely reaching Russia.

Reports emerged earlier this week that Russia had started importing fuel from India by sea in a bid to ease the fuel shortages triggered by Ukrainian drone attacks on Russian refineries. In an exclusive Reuters report, industry sources revealed that an initial shipment of at least 60,000 metric tons (510,000 barrels) of gasoline has been dispatched from India via two tankers destined for Russian ports.

Hours after the report surfaced, India’s oil minister insisted that Indian refiners aren’t directly selling fuel to Russia.

“Indian companies are not selling fuels to Russia,” Puri said at a media briefing, but acknowledged that it is “possible that Indian-origin refined fuel is sold to Russia via traders.”

Gasoline from Indian refiner Nayara Energy, in which Russia’s top oil firm Rosneft holds a 49% stake, has been sold to Russia via traders, sources with direct knowledge of the deals told Reuters on Thursday. So it is likely that India-produced fuels are now reaching Russia via traders, as Moscow scrambles to alleviate a major fuel supply crisis.

Ukraine’s intensified drone strikes in recent months have now knocked offline an estimated 30% of Russia’s oil refining capacity. During peak summer demand, Russian refining throughput has sunk to a two-decade low.

In a rare public admission at the end of June, Russian President Vladimir Putin acknowledged that Russia faces fuel shortages and a fuel crisis that needs further government intervention to solve.

The fuel shortages that emerged in some regions in May have now reached the capital city Moscow, too, after Ukrainian strikes last month hit and sent Moscow’s Kapotnya refinery offline. The refinery is unlikely to resume fuel production before 2027 after suffering extensive structural damage from multiple strikes by Ukraine’s long-range drones, industry sources told Reuters last month.

Tyler Durden Mon, 07/06/2026 - 02:45

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