White House rejects return to June Iran deal, leaving Hormuz risk premium in place

The decision complicates a flurry of diplomatic activity this week aimed at restarting the process. The June arrangement broke apart within weeks after Iran began targeting ships to assert control over the crucial waterway, and the administration's refusal to return to those terms leaves the status of Hormuz transit and Iranian oil exports unresolved.

The no-deal stance removes a diplomatic channel and raises the risk of renewed enforcement on Iranian oil exports, which would tighten supply. At the same time, Iran's Rezai said the country exported 80 million barrels of oil during the ceasefire, a claim that suggests supply has remained ample despite the tensions and may limit how far crude can rally.

The mixed signals leave energy markets without a clear breakout. The White House position supports a risk premium in Brent and related energy exposure, while the reported export volume during the ceasefire argues against an immediate supply shock. That tension is likely to persist until there is clarity on enforcement or a new diplomatic framework.

Separately, Royal Bank of Canada's chief executive said the implementation of recently announced tariffs could affect about 40 basis points of Canadian GDP, with a larger impact on certain sectors and provinces. The comment points to higher input costs for supply chains and pressure on auto and retail margins, a channel that has weighed on U.S. consumer discretionary shares.

In technology, more than 100 companies including OpenAI, Anthropic, Microsoft, Alphabet, Amazon, Broadcom, Cloudflare, CrowdStrike, IBM, Mastercard, Oracle and Visa signed a joint letter calling for a broad defensive push against an expected surge in AI-powered cyberattacks. The group urged governments and industry leaders to rapidly deploy technology, resources and expertise to strengthen digital security.

On the semiconductor front, SK Hynix's chief executive said Indiana will be a key memory production base by 2030, with the first U.S. facility now underway. The plan supports memory capital spending and domestic chip supply, a positive for equipment, construction and U.S. memory supply chain suppliers.

Federal Reserve Bank of Boston President Susan Collins said holding rates hangs on inflation progress, according to a report. The comment arrives as energy prices and tariff effects remain live inputs to the inflation outlook, keeping the policy path sensitive to the same supply and trade developments moving markets.