Welcome to Markets Desk, your midday read on what's moving markets and why.
The most consequential macro story today is the U.S. military strike on Iran following a drone attack on a cargo ship in the Strait of Hormuz. Washington called the incident a ceasefire violation, and the response marks the sharpest escalation yet in a fragile interim understanding between the two countries. Hormuz remains the pressure point.
Connecting that geopolitical tension to the broader trade picture, the IMF's chief economist Pierre-Olivier Gourinchas is warning that tit-for-tat trade warfare will ultimately prove self-defeating for every economy that engages in it. His departure from the fund adds weight to the remarks — this is a parting shot, not a routine forecast, and markets should treat it as such.
On the equity side, Eli Lilly climbed to an all-time high after its leukemia drug cleared another milestone toward European regulatory approval. That's a meaningful catalyst — EU market access for an oncology asset in this pipeline class represents a durable revenue runway, and investors priced that in quickly with conviction.
That's the tape. Markets Desk, signing off the floor.
