The US trade deficit in goods grew by 27.4% t0 $105.8 billion in May, a substantial increase from the $85 billion expected. Imports soared by $10.9 billion to $313.4 billion as businesses increased imports to avoid shortages and higher prices. US dollar strengthening will continue to hurt exports, meaning the deficit should grow even faster in June.

Meanwhile, Iran fired on a ship in the Hormuz Straits in a striking counterpoint to the US assertion that there’s nothing to worry about in the Gulf.

Iran was responding to what it called an “interventionist, irresponsible and provocative” joint statement by the United States and six Gulf states that rejected Iran’s insistence that it could charge tolls on vessels transiting the strait.  “Safe passage through the Strait of Hormuz cannot be guaranteed under ambiguous arrangements, parallel routes or decision-making that does not take Iran’s role as a coastal state into account,” Deputy Foreign Minister Kazem Gharibabadi said on X.