Trump Shelves Hormuz Fee After Gulf Pressure | Balance of Power 7/14/2026

Summary

Fed Chair Warsh testifies on monetary policy the same morning CPI falls for the first time in six years, but warns against premature victory on inflation. Markets react with mixed equities, a record plunge in IBM, and strong bank earnings. President Trump drops a proposed Strait of Hormuz fee, opting for foreign investment pledges, while Iran tensions keep oil and gold higher. A bipartisan panel and Congressman Troy Downing discuss war strategy, housing affordability, and the Fed outlook.

• June CPI shows first monthly decline in six years, but year-over-year inflation remains at 3.5%.
• Fed Chair Warsh maintains a hawkish tone, emphasizing price stability and offering no forward guidance on rate moves.
• IBM shares crash 24.5% after preliminary results miss, while bank earnings set records for equity trading revenues.
• S&P 500 and Nasdaq rise with the semiconductor index up over 3%, while the Dow is dragged down by IBM.
• Oil prices rise as the U.S. resumes a blockade on Iran and the Strait of Hormuz conflict continues.
• President Trump scraps a 20% Hormuz fee, pivoting to investment deals with Gulf allies.
• Gold climbs 1.5% to above $4,060/oz on geopolitical uncertainty.
• Congressman Downing supports sticking to the goal of preventing a nuclear-armed Iran and addresses housing affordability.