U.S. Launches New Strikes on Iran

Summary

WSJ What’s News: "U.S. Launches New Strikes on Iran"

Date: July 8, 2026
Host: Alex Osoleff, The Wall Street Journal
Guests/Contributors: Dan Michaels (Brussels Bureau Chief), Matt Grossman (Economics Reporter), Hannah Aaron Lange (Markets Reporter), Lauren Thomas (Lead Deals Reporter)

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Episode Overview

This episode focuses on escalating U.S. military action against Iran, the outcome of the NATO summit in Ankara, and the impact of global tensions on markets and business. The discussion covers U.S.-Iran conflict updates, NATO and the U.S.-Europe dynamic, implications for Ukraine, IMF economic forecasts, market reactions to geopolitical risk, JP Morgan’s strategy shift, and notable industry headlines.

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Key Discussion Points and Insights

1. U.S. Military Strikes Against Iran

[00:40]

• The U.S. military launched new strikes targeting Iran’s control over the Strait of Hormuz.
• Iranian media confirmed explosions in the same areas as previous night’s attacks.
• Indicates unraveling efforts for a permanent peace deal; President Trump declared the ceasefire over following the Ankara summit.

2. NATO Summit – Unity and Uncertainty

[00:29-04:05]

• Summit concluded with a display of unity, despite earlier concerns over President Trump’s stance on European allies.
• Dan Michaels: “NATO lives to fight or they would say defend another day. There had been a lot of concern about whether the alliance would come out of this summit in one piece because President Trump has been very unhappy with a lot of the European members and Canada. But in the end he seemed very happy.” [01:48]
• Meeting between President Trump and Ukrainian President Zelensky was notably cordial. Trump affirmed support for Ukraine, including providing Patriot interceptors and potentially helping to produce them in Ukraine.
• Donald Trump: “We've actually developed a good relationship. It's hard to believe right from the Oval Office to now. We've developed, I think we've developed a very good relationship and... this is going to be the beginning, maybe.” [02:18–02:34]

3. U.S. Support for Ukraine

[02:34-03:22]

• Zelensky came away from the summit with pledges for weaponry and U.S. support of strikes on Russian missile launch sites (not Russian cities).
• Dan Michaels: “What Ukraine wants to do is hit the missile launch locations that Russia is using to strike innocent civilians in Ukrainian cities. The Ukrainians don't want to hit Russian cities like the Russians are doing. So it's sort of a defensive offense.” [02:56]
• U.S. support appears to be shifting materially to help Ukraine seize the initiative, reflecting battlefield gains.

4. US-European Relations: Pragmatism Amid Ambiguity

[03:22-04:05]

• Europeans increased defense spending to appease U.S. demands but faced ongoing criticism, especially for not supporting U.S. action against Iran.
• Dan Michaels: “The Europeans are doing what Trump says he wants them to do, but he still gives them a hard time for not offering to help in in the war with Iran.” [03:34]
• Ongoing uncertainty about U.S. tone and reliability under Trump.

5. Global Economic Outlook: IMF and Market Reaction

[04:05-06:03]

• IMF’s latest projections were more optimistic than feared, assuming long-term damage from the Iran conflict remains contained and global growth holds at 3%.
• Energy price spike (notably oil) was significant but manageable due to overall flexibility in the global economy.
• Matt Grossman: “So the global economy was just a bit more resilient than the IMF had been expecting. The biggest economic consequence was a really steep rise in energy prices. But that didn't derail the global economy...” [04:32]
• Ongoing geopolitical unpredictability remains a challenge for economic forecasts.
• Matt Grossman: “This is exactly the kind of thing that has been such a challenge for economic forecasters... the event itself keeps changing direction week to week, and that's a huge challenge for forecasters.” [05:04]

6. U.S. Federal Reserve and Markets’ Response

[05:25-06:46]

• June Fed minutes: possible rate hikes if inflation persists; baseline expectation is for rates to hold steady or eventually decline.
• Middle East tensions drove up oil prices (+5% to $78/bbl), pushing up Treasury yields and weighing on U.S. stocks.
• Hannah Aaron Lange: “Are we entering a kind of new phase in the conflict with Iran where we have a sort of tenuous peace... which means higher oil prices, which means a higher inflation rate, which means the Fed might have to embark on fighting price increases by hiking interest rates.” [06:03]
• Dow fell more than 1%, S&P down 0.3%, Nasdaq slightly positive.

7. Business Developments and Notable News

[07:10-10:59]

• Legal: Former Wisconsin judge Hannah Dugan fined for obstructing law enforcement during an immigration case, but spared prison.
• Olympics: Russian athletes cleared by IOC to compete in LA 2028 after decade-long bans—status of Russian flag/anthem undecided.
• Apple: Announces $30B, 5-year chip deal with Broadcom to boost U.S. manufacturing; move seen as part of tariff exemption efforts.
• Blue Origin: Jeff Bezos’ space company seeks outside investors (first time), pursuing a $10B round at a $130B valuation to better compete with SpaceX.
• JP Morgan: Setting up a dedicated team to target small-cap M&A deals, focused on family-owned businesses—anticipating generational transitions.
  • Lauren Thomas: “JP Morgan is anticipating that younger generations are not necessarily going to be so eager to take over. So in turn that will likely mean that business is going to get sold. They've hired a couple bankers, but they're looking to grow this to 75 plus people.” [10:18]
• Delta Airlines: Launches “basic business” class as a cheaper premium option; details pending, reflects broader airline trend of segmenting fares.

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Notable Quotes & Memorable Moments

• “NATO lives to fight or they would say defend another day.”
  — Dan Michaels [01:48]
• “We've actually developed a good relationship. It's hard to believe right from the Oval Office to now.”
  — Donald Trump [02:18]
• “So it's sort of a defensive offense. And Trump seems to have come around to this in part because Ukraine has seized the initiative on the battlefield.”
  — Dan Michaels [02:56]
• “This is exactly the kind of thing that has been such a challenge for economic forecasters... the event itself keeps changing direction week to week.”
  — Matt Grossman [05:04]
• “Are we entering a kind of new phase in the conflict with Iran where we have a sort of tenuous peace... which means higher oil prices, which means a higher inflation rate, which means the Fed might have to embark on fighting price increases by hiking interest rates.”
  — Hannah Aaron Lange [06:03]
• “They're looking to grow this to 75 plus people. So this is not just a tiny effort within the bank. They really want to be the bank that gets in at the ground floor with these companies.”
  — Lauren Thomas [10:18]

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Timestamps for Important Segments

• 00:40 – U.S. Air Strikes Against Iran and context
• 01:48 – Dan Michaels on NATO summit outcome
• 02:18–02:34 – Trump-Zelensky meeting and quote
• 02:56 – Explanation of U.S./Ukraine support shift
• 03:34 – U.S.-Europe relationship post-summit
• 04:05 – IMF economic outlook and risks
• 05:04 – Challenges of economic forecasting amid geopolitical uncertainty
• 06:03 – Markets and the Fed: inflation, oil, and risk-off trading
• 07:43 – Judge Dugan sentencing (immigration case)
• 08:32 – IOC decision on Russian athletes (Olympics)
• 08:54 – Apple’s chip investment announcement
• 09:22 – Blue Origin seeks outside investors
• 09:43 – JP Morgan expands into small-cap company deals

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Summary

This episode delves into the escalating U.S.-Iran confrontation, a newly unified but tentative NATO, and shifting global economic forecasts facing volatile geopolitics. The U.S. doubles down on support for Ukraine and asserts control in the Middle East, while businesses and governments grapple with market ripples and shifting global alliances. Noteworthy business developments round out the show, reflecting the interconnectedness of geopolitics, economics, and enterprise.

Transcript

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[Alex Osoleff]

The NATO summit wraps up with a

[Dan Michaels]

show of unity Ukraine and President Zelensky come out of this summit about as well off as anybody could have hoped for.

[Alex Osoleff]

Plus the US Again launches strikes against Iran and why JP Morgan is hoping to make big bucks off deals for small companies. It's Wednesday, July 8th. I'm Alex Osoleff for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. The US Military launched strikes against Iran today. The military said the strikes were designed to hurt Iran's ability to control the Strait of Hormuz. Iranian media reported explosions around the same areas that the US Strikes hit yesterday night. It's the latest sign that efforts to sign a permanent peace deal with Iran are unraveling. President Trump said earlier today that the ceasefire was over after a two day meeting in Ankara, Turkey. The leaders of NATO countries are headed home. Our Brussels bureau chief, Dan Michaels chatted with us after the meetings and press conferences raft from within the summit compound in the Turkish National Library. Dan, you've been on the ground there. What is the main takeaway from the summit?

[Dan Michaels]

NATO lives to fight or they would say defend another day. There had been a lot of concern about whether the alliance would come out of this summit in one piece because President Trump has been very unhappy with a lot of the European members and Canada. But in the end he seemed very happy.

[Alex Osoleff]

Trump met with Ukrainian President Volodymyr Zelensky today and it was a friendlier meeting than we've seen in a while. They held a joint press conference after their meeting.

[Donald Trump]

We've actually developed a good relationship. It's hard to believe right from the Oval Office to now. We've developed, I think we've developed a very good relationship and.

And this is not the end.

No, this is not. This is going to be the beginning, maybe.

[Alex Osoleff]

Trump also said that he supported Ukraine striking deep in Russia. What might US support for Ukraine look like on a material level?

[Dan Michaels]

Zelenskyy got pledges from Trump for weapons for Patriot interceptors, maybe even producing them in Ukraine.

[Alex Osoleff]

Right. Those are the interceptors that Ukraine's critically low on and that they need to defend against Russian missiles.

[Dan Michaels]

What Ukraine wants to do is hit the missile launch locations that Russia is using to strike innocent civilians in Ukrainian cities. The Ukrainians don't want to hit Russian cities like the Russians are doing. So it's sort of a defensive offense. And Trump seems to have come around to this in part because Ukraine has seized the initiative on the battlefield in Ukraine.

[Alex Osoleff]

We've been talking on the show all week about how Europe needed to show that it was spending money in an effort to appease President Trump. Where does this relationship stand? What does it look like at the end of this summit?

[Dan Michaels]

The Europeans are doing what Trump says he wants them to do, but he still gives them a hard time for not offering to help in in the war with Iran. So the Europeans still scratch their heads and are worried about which President Trump they're going to get on any day. The one who is very lovey dovey and as he was today, saying how much the Europeans love him and he loves them, or the one who criticizes and lambastes the Europeans as he also did today.

[Alex Osoleff]

That was WSJ Brussels bureau chief Dan Michaels. Three months ago, economists at the International Monetary Fund worried that a prolonged Iran conflict could push the world into a recession. The IMF's latest quarterly projections out today were much sunnier. Last month's ceasefire meant that growth for the next quarter would be slightly weaker, but long term damage would be limited, with the global economy expected to grow 3% for the year.

[Matt Grossman]

So the global economy was just a bit more resilient than the IMF had been expecting. The biggest economic consequence was a really steep rise in energy prices. But that didn't derail the global economy because people who use oil, businesses, countries were just more flexible in responding to that price increase than people were expecting.

[Alex Osoleff]

That was the Journal's economics reporter Matt Grossman, who covered the report. Matt says the June ceasefire helped reassure IMF economists, but the tensions in the Middle east complicate their job.

[Matt Grossman]

This is exactly the kind of thing that has been such a challenge for economic forecasters really since the start of the second Trump economists are trying to forecast how this huge global event is going to affect the economy, but the event itself keeps changing direction week to week, and that's a huge challenge for forecasters.

[Alex Osoleff]

And the minutes from the June Fed meeting were released today. They showed that officials agreed that they would need to raise interest rates if inflation stayed high this year. But most thought that the Fed could keep interest rates where they are or even eventually cut them if price pressures fade soon. One thing they haven't resolved, whether those forces pushing prices up will last. Oil prices rose today on Middle east tensions, with Brent crude rising about 5% to just over $78 a barrel. Concerns about the price of oil making inflation worse also made treasury yields jump today. Markets reporter Hannah Aaron Lange says those worries weighed on stocks. So I think what we're seeing today

[Hannah Aaron Lange]

is pretty much in line with that risk off dynamic that we've seen take place once investors get concerned about war with Iran or conflict in the Middle East. Have these comments from the president been a blip that he'll eventually walk back? Or are we entering a kind of new phase in the conflict with Iran where we have a sort of tenuous peace where tensions flare like this for a much longer period of time, which means higher oil prices, which means a higher inflation rate, which means the Fed might have to embark on fighting price increases by hiking interest rates. That's the reality you're seeing the market grapple with right now. And it's one reason why financials, for example, have been hit particularly hard today.

[Alex Osoleff]

The Dow fell more than 1% while the S&P closed down 0.3%. The Nasdaq pared its earlier losses and finished slightly positive. Coming up, Jeff Bezos, his rocket company is seeking outside investors for the first time. And what is basic business class? You'll find out those stories and more after the break.

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[Alex Osoleff]

A former Wisconsin state judge whose case became a symbol of the Trump administration's immigration crackdown has been spared prison time. In April 2025, federal authorities arrested the judge, Hannah Dugan. They said she directed a man to leave her courtroom through a back when she knew that immigration officers were in the courthouse. She was then convicted of obstructing law enforcement. A federal judge today fined Dugan $5,000, but he refused to sentence her to prison or probation, saying she was a good person who was upset by immigration enforcement and made a bad decision. Dugan said being a judge was the honor of her life and she had just been trying to do her job. The International Olympic Committee has cleared the way for Russian athletes to compete in Los Angeles in the 2028 Games. Russia has been absent from the Games for a decade. First there was its state sponsored doping scheme dating back to the 2014 Games in Sochi. Then there was its 2022 invasion of Ukraine. That meant the Russian flag, the Russian anthem and any Russian who expressed pro war sentiments were all banned. The few athletes who did qualify were forced to compete under the neutral designation. Now it hasn't been decided whether Russians can display the flag and play their anthem at the Olympics. The president of the IOC says the group doesn't condone war, but also doesn't think athletes should pay the price. In tech news, Apple said today that it plans to spend more than $30 billion with Broadcom over the next five years on chips made in the U.S. it's Apple's largest investment to fulfill its pledge to invest $600 billion in the country. That promise had helped it get an exemption from the Trump administration's proposed tariffs. Apple says the money will help Broadcom expand a Colorado factory. And Jeff Bezos Blue Origin is looking for outside investors for the first time. Up till now, Bezos has been investing his own funds into the space company. The Journal's learned that Blue Origin is working on a $10 billion funding round that would value the company at $130 billion. That money would be crucial for helping Blue Origin better compete with the leader in the sector, SpaceX. We're exclusively reporting that JPMorgan Chase is setting its sights on small company deals for its next phase of growth in investment. Executives said today that the firm is setting up a new team of investment bankers focused on small cap companies. That means companies valued at between 100 million and $500 million. The Journal's lead deals reporter Lauren Thomas says JP Morgan sees an opportunity from private equity. Those firms have a backlog of smaller companies in their portfolios that they'll be looking to sell soon. But there's another factor too.

[Lauren Thomas]

They're really looking at the baby boomers and many of them have family owned businesses that they started. And JP Morgan is anticipating that younger generations are not necessarily going to be so eager to take over. So in turn that will likely mean that that business is going to get sold. They've hired a couple bankers, but they're looking to grow this to 75 plus people. So this is not just a tiny effort within the bank. They really want to be the bank that gets in at the ground floor with these companies. That way they can help companies throughout their whole life cycle and then over time, the relationship can pay dividends.

[Alex Osoleff]

Delta Airlines today launched basic business A ticket still gets you a lie, flat seat and chef curated meals, but doesn't entitle you to use special check in lanes or the swanky Delta One lounges. Delta said that the new options represent a cheaper entry point to premium cabins that give flyers additional choices. Well, I'd love to know how much basic Business costs, but Delta's not saying yet. Delta's not alone in constantly creating endless new tiers of ticket prices. United launched its own basic fares earlier this year for long haul business class and premium economy. And one last note from us. We've made a correction to yesterday's episode. A complaint about construction work at the building at risk of partial collapse in Manhattan was an external complaint. An earlier version of yesterday's show incorrectly attributed the complaint to the Department of Buildings. And that's what's news for this Wednesday afternoon. Today's show is produced by Anthony Banci and Danny Lewis with supervising producer Tali Arbel. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

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