Weekly Economic Report 7.24.26

It was a tough week for financial markets as the other shoe dropped in several markets. In energy markets, the Iran-allied Houthis fired on Saudi tankers in the Red Sea, forcing them to turn back, effectively closing the Bab Al Mandab, compounding the renewed closure of the Straits of Hormuz. Oil prices jumped back over $100 a barrel for Brent crude, and $90 a barrel for West Texas Intermediate. Meanwhile, Tesla and Alphabet both announced earnings, negative cash flow and capital investment plans that disappointed the Street, with steep sell offs signaling the AI boom may be entering a more contemplative phase. Fear of both energy driven inflation and excessive demand for credit from AI investment pushed interest rates higher – with the US ten-year note hitting 4.70%, the highest since January 2025. Add in Ukrainian attacks on Russian oil and new, slightly higher, tariffs to replace the old ones, and it was a tough week for the markets.

EU07-24-2026.pdf

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