TLDR
- Treasury Secretary Scott Bessent announced “never been seen” economic isolation measures against Iran, coming next week
- The US Navy says it can sustain its blockade of Iranian ports indefinitely
- Iran plans to join the BRICS New Development Bank as it seeks financial alternatives
- The S&P 500 closed at a record high of 7,798.99, heading for a third straight winning week
- Brent crude rose above $87 a barrel as markets tracked US tech gains
The S&P 500 closed at a record high of 7,798.99 on Thursday, while the Nasdaq Composite gained 0.81% to reach 26,803.03. This marked a third straight winning week for two of the three major US benchmarks.
Asian equities mostly followed the gains. Lower oil prices and a flat producer price inflation reading helped lift sentiment across the region.
Brent crude futures rose more than 1% to $87.95 a barrel. West Texas Intermediate also gained, reaching $82.15 a barrel.
The market gains came even as geopolitical tensions around the Strait of Hormuz remained unresolved.
US Prepares Sweeping New Sanctions Against Iran
Treasury Secretary Scott Bessent said the US will announce new economic measures against Iran next week. He described them as measures “like have never been seen in the history of economic isolation on a country.”
TOTAL CONTROL: President Trump says the U.S. naval blockade is in full effect in the Strait of Hormuz and is “a wall of steel.”
Sec. of War Pete Hegseth says the blockade can be maintained “indefinitely.”
“We will rotate ships in and out as we have and we will continue to do… pic.twitter.com/fiLoxHs7Le
— Fox News (@FoxNews) August 13, 2026
Bessent called it a “one-two punch,” combining the new financial measures with the continued naval blockade of Iranian ports.
Defense Secretary Pete Hegseth separately said the US Navy can sustain the blockade “indefinitely” by rotating warships in and out of the region. The USS George Washington is currently en route to replace the USS Abraham Lincoln, which has been stationed in the Middle East for over 250 days.
Iran has been looking for alternatives. The country’s central bank governor said Iran will soon join the BRICS New Development Bank, as Tehran works to build financial alliances with other nations.
President Trump has threatened 25% tariffs on any country buying Iranian goods or services, which could directly affect China, Iran’s largest trading partner.
Iran and the US remain deadlocked over control of the Strait of Hormuz, through which one-fifth of the world’s oil and gas is shipped. Both sides are demanding concessions the other has so far refused to make.
UK Economy Shows Strength Despite War Exposure
The UK economy grew 0.4% in the second quarter, putting Britain on track to lead the G7 for a second straight quarter. Business investment rose 1.7%, beating forecasts of a 0.5% decline.
The International Monetary Fund had previously warned that the Iran conflict would damage UK growth more than any other advanced economy, due to Britain’s heavy reliance on imported oil and gas.
Despite those risks, British consumers spent more than expected in recent months. Hot weather, a strong England performance in the FIFA World Cup, and rising business confidence all contributed.
Deutsche Bank’s UK economist described the first-half growth pace as strong, but warned that higher fuel prices could squeeze household incomes going forward.
In other news, Uber and Pony.ai announced plans to deploy more than 2,000 robotaxis across Europe, expanding from Zagreb to four additional cities.
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