Defense Primes — Europe & Asia

US President Donald Trump signed into law a Russia sanctions bill on Friday, September 18. The law grants authority to expand sanctions, impose customs duties and various prohibitions against Russia, while renewing existing sanctions on Iran. The law, named the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, imposes sanctions on Russian officials, Russian banks and vessels used to transport energy from Russia, and gives Trump the authority to levy tariffs of up to 100% on goods from the five countries that import the most oil or natural gas from Russia. It also extends the Iran Sanctions Act for another five years to maintain sanctions targeting Iran's energy and weapons sectors. The US House of Representatives passed the bill on Wednesday, September 16, after the Senate approved it on August 7. The law is a major achievement carrying on the legacy of Lindsey Graham, the former senator who championed the bill and died in July after a sudden illness. However, the bill faced more division in the House than in the Senate, with three Democratic members of the House saying in a joint statement recently that the law may do more harm than good because it greatly increases Trump's power to set tariffs but does not compel him to impose sanctions on Russia.

US President Trump said on the 18th that he had reached an agreement with Denmark granting the United States "permanent control" over the security of Greenland, a Danish autonomous territory. Trump announced the agreement on social media, describing it as addressing "all of the many concerns" held by the United States and saying it would cost the United States "nothing at all." According to US government officials, the new agreement explicitly prohibits non-NATO countries from establishing military bases in Greenland and restricts investment in the island that is viewed as a threat to the United States. The leaders of Denmark and Greenland are expected to sign the agreement document at next week's UN General Assembly. Prime Minister Frederiksen said in a statement that it "strengthens our common security in the Arctic and North Atlantic region and is excellent for NATO and Europe as well."

A law imposing sanctions tariffs of up to 100% on major countries that purchase crude oil and natural gas from Russia, which continues its invasion of Ukraine, was enacted in the United States on the 18th, and President Trump signed the bill. It imposes tariffs of up to 100% on the top five countries purchasing Russian crude oil and natural gas, with China and India in mind. Sanctions will also be imposed on countries that help Russia evade energy sanctions. For natural gas, a special exception was established to exempt from sanctions countries whose imports of Russian gas remain below 15% of Russia's annual exports and which are taking measures to reduce their purchases.

Lockheed Martin presented Germany's first F-35A Lightning II to the German government during a ceremony at its F-35 production facility in Fort Worth, Texas, on Sept. 18, 2026. Germany's program of record calls for 35 F-35As, with the first eight aircraft to be delivered to Ebbing Air National Guard Base in Arkansas for pilot training beginning this fall, and the first German F-35s arriving in-country in late 2027. German Minister of Defense Boris Pistorius said the first fighter jets will be delivered this year, with full operational capability to be reached by 2029, calling the aircraft a decisive key capability for the German Air Force and for the whole of NATO. Lieutenant General Holger Neumann, Chief of the German Air and Space Force, said the F-35 will make Germany part of the larger international F-35 community, strengthening both Germany and NATO. OJ Sanchez, president of Lockheed Martin Aeronautics, said the company is building on more than 50 years of partnership with Germany, and noted that German industry has contributed to the F-35 program since its inception in 2001. The F-35 has been selected by 20 nations, including 13 in Europe, and more than 1,355 F-35s are currently operational worldwide.

The US government is preparing to approve a visa for President Masoud Pezeshkian, Iran's leader, and other senior officials, clearing the way for them to attend the United Nations General Assembly, or UNGA, in New York next week, even as the two countries remain in a state of war and hold periodic talks aimed at ending the conflict. Meanwhile, China's Ministry of Foreign Affairs disclosed that Wang Yi, China's Foreign Minister, and Marco Rubio, the US Secretary of State, discussed high-level engagement by telephone on Thursday, September 17, just one week before the two countries' leaders meet in Washington. On the same day, the US State Department said the US government approved the sale of 48 F-35 stealth fighter jets along with related equipment to Saudi Arabia, with a total value of about 24.3 billion US dollars. South Korean President Lee Jae-myung confirmed that South Korea will not become involved in a war in the Middle East, whether directly or indirectly, and stressed that any role the country plays will have nothing to do with the fighting. Kim Yo-jong, the sister of North Korean leader Kim Jong-un, said today that US-led military drills are making the situation on the Korean Peninsula increasingly worse, and affirmed that North Korea will continue to build up its nuclear arsenal.

UK Finance Minister Healey plans to call on the European Union at a meeting with EU finance ministers in Dublin on the 17th not to exclude Britain from the bloc's "Made in Europe" industrial policy. According to the UK Treasury, Healey will seek stronger cooperation with the EU in technology, defense, and manufacturing, and hopes for improved access to European markets. Britain negotiated last year to join the EU's SAFE defense fund, but the talks ended unsuccessfully after it refused to pay into the fund, and Healey will urge the EU to "learn the lessons" from the SAFE episode. The "Made in Europe" policy aims to curb dependence on Chinese-made components by prioritizing products made within the EU over those from outside the bloc, a source of concern for British auto-related companies that supply parts to EU supply chains. Healey is set to press the EU not to erect new barriers. According to the Financial Times, Healey is expected to indicate at the meeting that Britain could agree to a "reset" in its relationship with the EU, provided the Burnham government can show it would "serve the interests of the British people."

US President Donald Trump posted on Truth Social to welcome a major step forward in establishing a US military base in Poland, with support from Polish President Karol Nawrocki. Trump said the location of the US base will be announced soon, praising Nawrocki's courageous leadership and noting that if this comes to pass, it will be a historic step for the great alliance between the United States and Poland.

It was learned on the 17th that MUFG Bank is moving toward finalizing its internal stance in the near future regarding lending to defense-related companies. The direction is to judge the feasibility of lending on a case-by-case basis according to growth potential and other factors, while taking into account whether such lending is consistent with the government's security policy. The defense industry is one of the 17 fields that the government has positioned as a strategic investment target in its growth strategy, and a policy has been set out to support startups and others through public-private investment with the aim of strengthening the technological and production foundations for dual-use goods such as drones.

Thales has announced the launch of HexaForce, its next-generation AI-enhanced multi-domain command and control system, purpose-built to support national sovereignty for NATO and allied nations. The system was successfully tested during the NATO CWIX 2026 exercise and is tailored for high-intensity warfare, supporting command requirements for over 100,000 personnel. HexaForce operates across land, air, sea, cyber, electromagnetic spectrum, space, and information operations, and harnesses the artificial intelligence capabilities of cortAIx, Thales' dedicated AI accelerator, which brings together 800 engineers and data scientists. Live trial phases are currently paving the way for full-scale deployment, targeting an increase in capacity from 100 to 1,000 targets processed per day. The solution draws on operational feedback from Artemis.IA, a data-centric platform deployed with the French Ministry of Armed Forces since 2023, and is already available.

CAE signed a memorandum of understanding with Polish defense technology company WB Electronics on September 8 at the MSPO 2026 exhibition in Kielce, Poland, pairing CAE's simulation and synthetic training expertise with WB Electronics' unmanned and autonomous platforms to train operators for defense forces in Canada, Poland, and allied nations. The deal followed CAE's August 12 report of its Q1 fiscal 2027 quarter, in which Defense revenue climbed 8.3% year over year to $531.8 million and adjusted segment operating income margin ticked up to 9.5% from 9.4%, while consolidated revenue rose 6.8% to $1,173.4 million and free cash flow swung to a positive $104.0 million from negative $134.7 million a year earlier. Operating income fell 35.1% to $86.8 million on $48.3 million in restructuring costs, and earnings per share dropped to $0.10 from $0.18, with Civil's adjusted segment operating income margin falling to 16.5% from 20.2%. Defense order intake fell 26.1% year over year to $451.9 million, pushing the quarter's book-to-sales ratio to 0.85 times, and management's fiscal 2027 outlook calls for Civil revenue to be flat to slightly down. CAE repurchased and cancelled 1,107,279 shares for $39.0 million during the quarter and is pursuing a transformation plan targeting $125 million to $150 million in annual run-rate savings by fiscal 2030, with total charges expected to reach $200 million to $250 million.

US President Donald Trump told reporters on the evening of Wednesday, September 16, that he hopes the war with Iran, now dragging into its seventh month, is nearing an end, saying Iran wants a deal and that he had been contacted directly by Iran, though he did not disclose further details. The remarks came amid escalating tensions after the Saudi Arabian air force launched strikes in Yemen and Houthi rebels retaliated by firing missiles and sending drones to attack various Saudi cities, including the Red Sea oil port of Yanbu and the Khamis Mushait air base in the south, according to a statement by Yahya Saree, spokesman for the Houthi military. The war erupted on February 28, when the United States and Israel launched attacks on Iran, before Tehran fired back at Israel and US bases in the Persian Gulf countries. The attack on Saudi Arabia that damaged the East-West oil pipeline has prompted oil traders to warn that if the pipeline is forced to halt shipments for an extended period, as much as 4% of global oil supply could be lost. Saudi authorities have not yet specified when the pipeline will be able to resume operation. The spread of the war into Yemen is also compounding the global energy shortage, after the earlier conflict cut off shipping through the Strait of Hormuz, which once carried one-fifth of the world's crude oil and liquefied natural gas. As a result, Brent crude traded at around 108 dollars a barrel on Wednesday, near its highest level since May, while US retail diesel prices surged to a record high of more than 6.30 dollars a gallon, which is becoming major political pressure on the Republican Party ahead of the midterm elections in November. Axios reported, citing sources, that President Trump is scheduled to meet with leaders of the Gulf Cooperation Council, or GCC, which comprises Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman, on the sidelines of the United Nations General Assembly in New York next Tuesday, September 22, to discuss the next steps in the war with Iran. The conflict between the Saudi-led alliance and the Houthis, which has been underway since 2015 and had once calmed under a ceasefire agreement, flared up violently again after the Houthis declared a maritime blockade on Saudi Arabia last July.

U.S. President Donald Trump signed a memorandum on the 16th excluding Canadian goods from the federal government's civilian procurement system. The move is a countermeasure against what the U.S. says has blocked American companies from entering Canada's government procurement market, and the confrontation between the two countries is sharpening amid an exchange of high tariffs. Trump directed the director of the Office of Management and Budget and the U.S. Trade Representative to identify the goods covered and to monitor how U.S. products are treated in Canadian government procurement as well. Amid the intensifying trade friction, Canada has been drawing rapidly closer to the European Union, and European Commission President Ursula von der Leyen said on the 16th that she envisions making Canada its first "associate member."

Boeing shares fell 6% Wednesday after President and Chief Executive Officer Kelly Ortberg outlined production constraints and revised cash flow expectations at the Morgan Stanley Laguna Conference. Ortberg said Boeing is not yet stable at its target rate of 47 aircraft per month on the 737 program, with wings production serving as a constraint to ramping up output, and that free cash flow above $2 billion is now less likely due to delivery challenges, though the company maintained its full-year guidance of $1 billion to $3 billion in free cash flow. On the 737 MAX 10, which represents roughly 30% of Boeing's 737 backlog, Ortberg said certification is coming "very soon" with all flight testing completed. For the 777X program, testing for certification continues with some expected to spill into 2027, while the company still plans 2027 deliveries and is holding contract discussions with airlines on built 777X aircraft. Ortberg also flagged risks including potential charges on defense programs and delays in engine deliveries for the 787 program, noted Boeing is receiving an "increment" of orders from China, and said the company is working to avoid a work stoppage with the SPEEA union, warning that a strike would shut down the 777X certification program.

Ukrainian President Volodymyr Zelensky has extended an invitation to Japanese Prime Minister Sanae Takaichi to visit Kyiv, the capital of Ukraine, to discuss cooperation on defense and drone technology. Esuke Mori, Speaker of Japan's House of Representatives, disclosed this on Tuesday, September 15, and told Kyodo News that he will convey the invitation to Prime Minister Takaichi in an appropriate manner. Former Prime Minister Fumio Kishida visited Kyiv in 2023, but Takaichi, who took office last October, has not yet traveled to the Ukrainian capital. Mori said Zelensky is seeking bilateral cooperation on drones and unmanned surface vessels, a sector where Ukraine is rapidly advancing technological innovation, and that Japan should be open to and consider cooperation in such areas, stressing that Japan should join forces with other countries to increase pressure on Russia. Zelensky said via social media that Ukraine always welcomes Takaichi, and revealed that the two sides had discussed energy support for Ukraine ahead of winter, as well as defense cooperation.

The UK boss of Ford has warned Labour that it ignores rising energy, tax and regulatory costs "at our peril" amid fears of a fresh raid on businesses. Lisa Brankin said the car giant's British operations were already under heavy pressure, forcing the company to work "really hard to make sure that we keep what we've got". She pointed to recent increases to National Insurance contributions and business rates, high industrial electricity prices and the Government's electric vehicle targets as costs squeezing companies. Ford builds some 600,000 diesel engines per year at its Dagenham plant, just half of the historic site's capacity, and is separately investing £380m in an upgrade of its Halewood factory in Merseyside. As part of an effort to secure a £900m contract from the Ministry of Defence to replace the Army's fleet of Land Rovers, Ford has said Dagenham could supply engines for a militarised version of the Ranger, competing with JLR, General Motors, Babcock, Ineos and the start-up Fering. Ford is also lobbying the Government to relax the requirements of the zero emission vehicle mandate, which it argues are too far ahead of consumer demand.

Global crude oil prices continued to climb, with West Texas Intermediate for October delivery up $3.04, or 3.04%, to $103.09 a barrel, and Brent crude for November delivery up $3.47, or 3.32%, to $108.80 a barrel, after Saudi Arabia announced the closure of the East-West Pipeline amid attacks by the Houthis. The East-West Pipeline is 1,200 kilometres long and allows Saudi Arabia to transport crude oil without passing through the Strait of Hormuz. Over the past several months, the pipeline has carried about 4 to 5 million barrels per day, or roughly 4 to 5% of global oil supply. Meanwhile, Crown Prince Mohammed bin Salman of Saudi Arabia discussed the latest regional situation during a meeting with Admiral Brad Cooper, commander of United States Central Command, in Jeddah. Reuters reported that the Crown Prince sought military assistance from President Donald Trump to strike the Houthis in Yemen, but President Trump declined to authorise US forces to attack the Houthis directly. The Houthis said they fired long-range missiles and sent dozens of drones to attack an air base in southwestern Saudi Arabia, and had earlier seized the port city of Mokha, pushed south to the Bab el-Mandeb Strait, and captured Mayun Island in the middle of the strait, giving them greater control over the shipping route linking the Red Sea to the Gulf of Aden. Iranian Foreign Ministry spokesman Ismail Baghaei said a meeting of Iranian and Arab Gulf foreign ministers scheduled for today in Oman was postponed at Saudi Arabia's request, and rejected reports that the postponement stemmed from the situation between Saudi Arabia and the Houthis as incorrect. The Financial Times had earlier reported, citing sources, that Arab Gulf and Iranian foreign ministers were due to meet on 14 September in Salalah, Oman, to discuss an interim agreement on managing shipping through the Strait of Hormuz. The talks, initiated by Oman, would be the first meeting of senior diplomats from the six member states of the Gulf Cooperation Council with Iran since the United States and Israel launched attacks on Iran on 28 February.

Donald Trump confirmed that he does not regret starting a war with Iran and is preparing additional sanctions against Iran. The report was published on September 11, 2026, and contains only this information, as the source report did not specify further details about the sanctions measures or any conditions. There is also no confirmed information on how such measures might affect oil markets or the global economy.

US President Donald Trump said on Sunday, September 13, that the United States may decide to stay in Iran to seize its oil, drawing a comparison to the case in which the US took control of roughly one-fifth of Venezuela's oil reserves, and stressed that the Iran war is likely to end within this year, possibly after the US midterm elections in November. Trump said the US would ultimately withdraw, unless it chooses to stay and seize the oil as it did in Venezuela, adding that the revenue the US has gained from Venezuela has already made the war worthwhile many times over. Oil markets remain volatile, with traders expecting prices to rise today, September 14, after an attack on Saudi Arabia's East-West Pipeline, which prompted the Saudi government to shut the pipeline down. Trump also said he would accept only the right deal and would not sign a bad one, claiming that Iranian officials have been calling nonstop to seek peace talks, though the Iranian government has previously rejected that claim.

Asian stock markets opened mostly lower after Saudi Arabia announced the closure of the East-West Pipeline, a key route for transporting oil without passing through the Strait of Hormuz, following a drone attack from Iraq on September 10. The Nikkei opened at 63,659.53 points, down 351.81 points or 0.55%. The Hang Seng opened at 24,701.18 points, down 104.45 points or 0.42%, and the Shanghai Composite opened at 3,867.02 points, down 21.09 points or 0.54%. The KOSPI fell 2.92%, while the S&P/ASX 200 edged up 0.16%. West Texas crude jumped 2.8% to 102.87 dollars per barrel, and Brent crude rose 3.1% to 107.87 dollars per barrel. The Saudi Ministry of Energy said the pipeline closure was a precautionary measure but did not disclose the extent of the damage or how long it would remain shut. Meanwhile, the Iraqi government ordered the dismissal of the military commander responsible for operations in Maysan province and launched an operation to track down those behind the attack. A meeting of foreign ministers from the Arab Gulf states and Iran, originally scheduled for today in Salalah, Oman, has been postponed. Investors are also watching this week's monetary policy meetings of the Fed and the BOJ amid expectations that interest rates could be raised, and are awaiting key Chinese economic data on September 15, including August home prices, industrial production, retail sales, fixed asset investment, and the unemployment rate.

Iran and Oman have reached an agreement on the details of new entry and exit routes around the Strait of Hormuz, and will present the outcome of their discussions to the Gulf Cooperation Council countries at a regional meeting in Muscat tomorrow. The agreement is the result of intensive technical and diplomatic negotiations between Iran and Oman, which reached a final conclusion in late August. Under the deal, the inbound route will lie entirely within Iran's territorial waters, while part of the outbound route will also run through Iranian territorial waters. The new routes will be under Iran's supervision, and the southern route of the strait will be closed as soon as the new system comes into operation. Sources stressed that the agreement does not mean the Strait of Hormuz will reopen for shipping in any way, noting that Iran has submitted seven demands to the United States in exchange for opening the shipping route, and that the waterway will remain closed until all the demands are met. The decision to resume shipping depends on Washington's stance. The move comes after the United States and Israel launched attacks on Iran on February 28, prompting the Iranian government to announce restrictions on transit through the Strait of Hormuz, while U.S. forces responded with a naval blockade to intercept cargo ships entering and leaving Iranian ports.

Iranian President Masoud Pezeshkian declared that Iran will not surrender to the United States and insisted his country can withstand aggression from the US and Israel, speaking during an address to a group of Indian religious leaders in New Delhi ahead of the BRICS summit in India this weekend. The remarks came after US President Donald Trump said that if Washington does not take military action against Iran, Iran could destroy Israel and the Middle East. Pezeshkian, on his first visit to India, met with Indian Prime Minister Narendra Modi, who expressed concern about the safety of crew members and stressed the need for peace, freedom of navigation and trade, while calling for the conflict in the Middle East to be resolved through negotiation and diplomacy. Oil and goods shipments through the Strait of Hormuz have fallen to a near standstill since the US and Israel began their war with Iran on February 28, leaving ships and crews stranded for weeks or months, while global crude prices have surged amid the intensity of the war this month, raising concerns for India, which imports nearly 85% of its fuel needs and depends on energy supply chains through the Strait of Hormuz. In July, two ships carrying a total of 30 Indian crew members were attacked while passing through the Strait of Hormuz, and the Indian government said 10 crew members died in the Middle East conflict.

UK Prime Minister Andy Burnham is under pressure to define his government's economic strategy ahead of the Oct. 28 budget, with Labour officials questioning how his administration will tackle weaker growth, strained public finances and higher inflation, according to Bloomberg. Since replacing Keir Starmer, Burnham has pushed ministers and civil servants to move quickly and overcome bureaucratic and legal obstacles, producing several early political wins, though officials and Labour figures say the harder economic decisions remain unresolved. Chancellor John Healey pledged fiscal stability in his first major speech this week and stressed the need to reduce borrowing, comments that caused confusion among observers who had expected the government to loosen its fiscal rules to permit more borrowing at the October budget. Burnham has expressed a preference for cutting rather than raising taxes even as economists see tax increases as necessary to close a gap in the public finances, and questions remain over who is directing economic policy, with Healey's Treasury, Burnham's new No. 10 North operation in Manchester and Downing Street officials all involved in developing growth policies. Several major spending decisions have been deferred: the government is moving toward raising defense expenditure to 3% of GDP by 2030 but its funding plan is not expected until next year, Burnham wants to reduce welfare spending though the scale and timing remain unclear, plans to nationalize Thames Water have been delayed amid cost concerns, and decisions on further drilling at the Jackdaw and Rosebank oil and gas fields have been pushed later into the autumn. Labour has strengthened in national polling since Burnham took office, and his allies expect more of the government's long-term economic direction to emerge in a 10-year plan scheduled for December, while the more immediate challenge comes with the October budget as officials weigh the impact of the Iran war on inflation and economic growth alongside pressure on government finances.

Stellantis NV has signed a memorandum with Roshel Inc., a Canadian armored vehicle manufacturer, outlining steps toward the sale of an idle car factory near Toronto. Roshel, headquartered near the Stellantis plant in Brampton, Ontario, is pursuing a Canadian military contract worth as much as C$4.9 billion ($3.5 billion) to build light utility vehicles, and has told Prime Minister Mark Carney's government it could reactivate the facility quickly if it secures the contract. Roshel chief executive officer Roman Shimonov said his company is the only serious potential buyer for the facility and described the memorandum as the first step in a complicated process. Stellantis spokesperson LouAnn Gosselin confirmed the document was signed and said the automaker believes Roshel represents a strong path to restoring operations at Brampton Assembly and preserving the site's role in Canada's manufacturing sector. The plant employed about 3,000 unionized workers when it was making vehicles, but production stopped in late 2023 and a plan to build the Jeep Compass SUV there was canceled last year after US President Donald Trump announced plans to impose tariffs on foreign-made vehicles; Stellantis is currently in negotiations with Unifor, which represents the plant's workers.

Bloomberg Economics assesses that US Treasury yields in the 4-5% range are likely to become the new normal, after structural forces that kept borrowing costs low for decades began to reverse: shrinking global savings, surging public debt, and rising AI infrastructure investment. Its latest calculations estimate that the real natural rate of interest rose to nearly 2.6% in the second quarter of 2026, which when combined with inflation is consistent with a 10-year bond yield of about 4.7% under stable inflation. With the 10-year bond yield in the current market at around 4.8%, it is close to the level supported by economic fundamentals. The main pressure comes from government borrowing, especially in the United States, where federal debt held by the public has risen to more than 100% of GDP from 79% before the COVID-19 pandemic in 2020, and is expected to reach 111% of GDP by 2030. Meanwhile, European NATO members have announced raising their defense spending target to 3.5% of GDP from 2%, which Bloomberg Economics estimates could add 1 trillion to 3 trillion dollars to Europe's debt burden over the next 10 years. China's foreign exchange reserves, which once reached nearly 4 trillion dollars in 2014, have fallen to about 3.4 trillion dollars. The impact is not limited to the bond market, because the US government must bear a heavier fiscal burden, with interest payments already accounting for more than half of the budget deficit. Homebuyers face higher mortgage rates, and companies face heavier refinancing costs from hundreds of billions of dollars in pandemic-era corporate debt maturing over the next two years.

US President Donald Trump has stated he has not the slightest regret over his decision to launch war with Iran, vowing that if he had to do it again he would do exactly the same, even though the conflict has political implications for the US midterm elections. In an interview with Fox News anchor Laura Ingraham on Thursday, September 10, US time, Trump said that if Iran were allowed to have nuclear weapons, the Iranian government would wipe out Israel and the Middle East entirely, and would also launch missiles at cities across the United States. Trump's stance comes as global financial markets brace for a potentially protracted Iran war, after reports that key Trump advisers, including Vice President JD Vance and Secretary of State Marco Rubio, warned the Iran war could drag on for the remainder of Trump's term and could even extend past the presidential inauguration in January 2029. However, Trump continues to insist on claims he has repeated for months that the fighting will end immediately after the midterm elections conclude and will cause oil and natural gas prices to fall as a result. On the economic front, the US government continues to cut Iran off from the global financial network, with US Treasury Secretary Scott Bessent revealing that the US government will sanction a major bank next week, a measure originally scheduled for announcement today, September 11, but postponed due to commemorations marking the 25th anniversary of the September 11, 2001 attacks. Bessent added that the US government had previously sanctioned Egypt's second-largest bank, forcing the closure of its Dubai branch, after finding it had processed transactions transferring up to 1.8 billion US dollars to Iran, and that Turkey's largest bank had also been sanctioned for transactions with Iran, although Bessent did not name the two banks specifically.

Global crude oil prices jumped more than 6% on Thursday, September 10, after the most severe attack on a shipping vessel since the Iran war began, pushing both major crude contracts above $100 a barrel. Brent settled up $6.42, or 6.34%, at $107.63 a barrel, while U.S. West Texas Intermediate rose $6.43, or 6.69%, to close at $102.48 a barrel. It was the first time since May that U.S. crude returned above $100, and both contracts hit their highest levels since May 19, logging their sharpest daily gains in nearly two months. Pressure on the market intensified after Iran-backed Houthi forces seized the port of Mokha in Yemen on Thursday, while ship traffic in the Persian Gulf through the Strait of Hormuz remained restricted. U.S. President Donald Trump warned that the United States could strike Iran's Pickaxe Mountain and said the war was likely to drag on past the November midterm elections. Iran said it attacked 10 vessels near the Strait of Hormuz on Wednesday after the United States struck five Iranian oil tankers, and Iran's Islamic Revolutionary Guard Corps warned it would escalate retaliation if it faced further attacks. The U.S. Energy Information Administration reported that U.S. crude stockpiles fell by 391,000 barrels in the latest week to 424.1 million barrels, a smaller draw than the 1.55 million barrels analysts had expected. OPEC cut its forecast for global oil demand growth in 2026 to 380,000 barrels per day, its fifth consecutive downward revision, and a Reuters survey found that OPEC's oil output fell by 640,000 barrels per day in August.

Crude oil futures on the New York Mercantile Exchange rose for an eighth consecutive session on the 10th, as buying accelerated amid escalating Middle East tensions. U.S. benchmark West Texas Intermediate broke through $100 a barrel in morning trading and settled at $102.48 a barrel, up $6.43, or 6.69%, from the previous day, marking its highest level in roughly four months since mid-May. Market pessimism over an early return to normal in the Middle East has deepened after U.S. President Trump suggested on the 9th that a military campaign against Iran would conclude only after the U.S. midterm elections in November. On the 10th, reports that Yemen's Iran-aligned Houthi militant group is strengthening its control over the Bab el-Mandeb Strait along the Red Sea coast, along with reports that Saudi Arabia's crude output fell sharply last month, raised concerns that energy shipments through the Red Sea, in addition to the Strait of Hormuz, could also be threatened. Amid the surge in crude prices, stocks fell for a fourth straight session, with the Dow Jones Industrial Average closing down 316.56 points at 52,064.10 and the Nasdaq Composite closing 171.62 points lower at 26,081.72.

GE Aerospace signed a preliminary agreement with Poland's Military Aviation Works to explore establishing domestic maintenance and repair capabilities for the engines powering the Polish Air Force's fleet of KAI FA-50 fighter jets. The memorandum of understanding covers potential maintenance, repair and overhaul services, including depot-level maintenance, for the F404-GE-102 engine, with GE Aerospace and Military Aviation Works, known locally as WZL-2, assessing the equipment, facilities and other requirements needed to service the engines in Poland. The Polish Air Force ordered 48 FA-50 light combat aircraft in 2022, with the first 12 jets delivered in 2023 in the FA-50GF Gap Filler configuration and an additional 36 expected in the more advanced FA-50PL configuration; the proposed arrangement would cover the engines for all 48 aircraft, along with spare engines. GE Aerospace said establishing local support would improve aircraft readiness and availability for the Polish military, while WZL-2 described domestic maintenance capacity as a way to strengthen Poland's operational independence and reduce reliance on overseas service providers. GE Aerospace has delivered more than 4,000 F404 engines, which have accumulated over 13 million flight hours, with about 300 of the engines powering the T-50, TA-50 and FA-50 aircraft produced by Korea Aerospace Industries. The memorandum is exploratory, and GE Aerospace did not disclose potential revenue, investment requirements or a timetable for reaching a definitive agreement.