>>> WeekEnd Papers Summary

FINANCIAL TIMES
-Israeli fighter jets conducted airstrikes in Iran and Lebanon as hostilities escalated in the region. In retaliation, Iran and Hezbollah launched missile and drone attacks against Israel. Hezbollah reported clashes with Israeli forces in the Bekaa Valley following troop deployments from Israeli helicopters. Iranian President Masoud Pezeshkian indicated a potential pause in attacks on Gulf States targeting civilian infrastructures. Concurrently, explosions were reported at Tehran’s Mehrabad airport, likely due to air strikes. Brent crude oil prices surged above $92 a barrel, while US equity markets fell by over 1%. In a notable diplomatic development, Russian President Vladimir Putin and Pezeshkian held their first conversation since the conflict began, addressing ongoing mediation efforts. Additionally, former President Donald Trump announced a successful meeting with US defense contractors to enhance missile production capabilities.
-President Masoud Pezeshkian announced that Iran would cease attacks on Gulf states, which have previously involved drone and missile strikes targeting infrastructure and civilians. This statement followed incidents where the United Arab Emirates, Qatar, Bahrain, Kuwait, and Saudi Arabia reported attacks. Pezeshkian emphasized that Iran has no plans for aggression unless it faces attacks from its neighbors, referring to them as "our brothers." He also dismissed calls from Donald Trump for Iran's unconditional surrender, stating that those demands would be taken to their graves.
-Saudi defense minister Prince Khalid bin Salman met with Pakistan army chief Asim Munir to discuss the implications of the US-Israeli war on Iran. This meeting follows a mutual defense pact signed between Saudi Arabia and Pakistan last September. Prince Khalid emphasized the need to address Iranian attacks on Saudi Arabia, expressing concerns that such actions threaten regional security and stability as outlined in their Joint Strategic Defense Agreement. He urged Iran to demonstrate wisdom and avoid miscalculations. Additionally, Pakistan's foreign minister had previously cautioned Iran against any aggressive actions towards the Kingdom.
-President Trump has justified military action against Iran by citing goals such as preventing nuclear weapon acquisition, dismantling missile programs, and disrupting proxy militias. The US and Israel possess capabilities to achieve these ends, given their air supremacy. However, regime change, once considered, has faded from focus due to its unpopularity among Trump’s supporters and the failure of prior state-building efforts in Iraq and Afghanistan. Speculation remains about replacing the Iranian government with a friendly regime, such as the return of the Pahlavi monarchy, but historical mistrust and existing power structures, including the IRGC, undermine such possibilities. As conflict escalates, the Iranian regime has demonstrated willingness to violently suppress dissent, posing challenges for any popular uprising. Additionally, the military action has complicated relationships with Gulf States, which seek security and stability while managing their own regional dynamics with Iran.
-In response to hostile actions in the Gulf, at least 10 vessels have begun using transponders to falsely identify themselves as Chinese, signaling "Chinese Owner" or "All Chinese Crew." Approximately 1,000 ships are currently trapped in the region, valued at $25 billion, amidst ongoing Iranian attacks on maritime traffic, including a drone strike on an empty tanker near Kuwait. Additionally, some vessels are manipulating their GPS signals to mislead missile targeting. This practice, which started in the Red Sea in 2023, aims to obscure the ships' true affiliations. Analysts note that while the effectiveness of these deception tactics against Iranian forces is uncertain, crews are exploring all possible methods to avoid becoming targets.
-The US Development Finance Corporation has announced a $20B reinsurance facility to revive maritime cargo and oil commerce disrupted by the closure of the Strait of Hormuz due to US and Israeli strikes on Iran. DFC CEO Ben Black and Treasury Secretary Scott Bessent detailed the initiative, following President Trump's directive for a political risk insurance mechanism to ensure energy flow. The facility aims to restore confidence in maritime trade and stabilize international markets. Coordinating with Central Command, the plan provides a unique level of security for transporting oil, gas, and other essential goods. With shipping through the Strait effectively blockaded, the initiative aims to address stalled tanker traffic impacting global oil supply, particularly as petrol prices rise ahead of the upcoming midterm elections.
-The US government has decided not to refund tariffs deemed illegal by the Supreme Court, as the Trump administration seeks to retain approximately $150B in contested levies. Customs officials are denying companies' requests for refunds of duties enforced during Trump's emergency powers, forcing many businesses to escalate their claims to court. Following the Supreme Court's ruling that Trump lacked the authority to impose these tariffs under the International Emergency Economic Powers Act (IEEPA), companies have been trying to amend their tariff submissions through "Post Summary Correction" to claim refunds. However, Customs and Border Protection (CBP) is rejecting these corrections and halting protests related to IEEPA tariff repayments.
-Russia has shared targeting intelligence with Iran regarding US military assets in the Middle East, amid ongoing drone and missile strikes by Tehran against the US and its allies. This cooperation between Russia and Iran escalates a multi-national conflict that began six days ago. While Moscow has provided intelligence on US military locations, US officials believe this information did not influence Iran's recent attack on an American base in Kuwait. White House press secretary Karoline Leavitt stated that Russia's intelligence would not alter the war's trajectory as US military operations are severely impacting Iran. Russia and Iran have intensified military collaboration since the 2022 Ukraine invasion, with a strategic partnership treaty signed last year, leading to Iran supplying drones for use against Ukraine.

NEW YORK TIMES
-The Israeli military announced a series of extensive attacks on Tehran and central Iran as the conflict enters its second week, coinciding with Iranian missile and drone strikes across the region. Iranian President Masoud Pezeshkian claimed Iran would cease attacks on neighboring countries; however, air-raid alerts were issued in Qatar and Bahrain, indicating ongoing threats. The Iranian strikes have led to significant damage in Gulf States, with civilian infrastructure affected. U.S.-Israeli operations have resulted in significant casualties in Iran and disruptions to international travel and energy markets. President Trump’s demands for Iran’s "unconditional surrender" suggest a prolonged conflict, despite successful Israeli assassinations of key Iranian figures. Concurrently, Israeli strikes on Hezbollah in Lebanon have displaced about 300,000 residents, highlighting the humanitarian impact of the ongoing war.
-President Trump has declared an aim for "unconditional surrender" from Iran amid the ongoing bombing campaign by Israel and the U.S. Despite this, Iran has escalated its conflict by targeting Arab states with American bases. Trump's demand, communicated via social media, reflects his vision of a strong military response and the installation of favorable leaders in Iran. This statement adds to the evolving objectives he has set for the conflict, creating confusion among his aides and allies. Shortly after his declaration, his press secretary attempted to clarify that true surrender would align with Trump's fulfillment of his war goals.
-President Trump has become the first US president in the era of modern polling to initiate a military assault against Iran without public support. Polling shows that approval for his military actions is significantly lower than that of previous presidents, ranging from 27% to 41%. This lack of initial backing suggests potential political difficulties as wars typically become less popular over time. Furthermore, the American public, weary from years of conflict in the Middle East, demonstrates little interest in another military engagement, while deep political divisions complicate the formation of bipartisan support, even among those who might agree with the objective of opposing Iran's government.
-Russia is experiencing a renewed significance as a global oil and gas supplier due to disruptions in energy production linked to the conflict in Iran, which has driven global energy prices higher. President Vladimir V. Putin highlighted this in his comments, shifting focus from criticisms of U.S. policies towards Iran to addressing European nations that have sought to reduce Russian energy imports after Moscow's invasion of Ukraine. He mentioned that the current energy price hikes may prompt Russia to expedite the reduction of its gas supplies to Europe, indicating potential shifts in market dynamics. Kremlin spokesman Dmitri S. Peskov noted a significant uptick in demand for Russian energy, beneficial for Russia’s economy, which had previously suffered a decline in oil and gas revenues by nearly 25% over the past year. Putin's remarks signal a strategic consideration of alternative markets as the geopolitical landscape evolves.
-Kristi Noem, who has navigated numerous controversies without facing dismissal, was ultimately removed from her position after a testimony to the Senate Judiciary Committee. Her comments suggested a shift in responsibility for her political challenges towards President Trump, which crossed a critical boundary for the Trump administration that values loyalty. Notably, Noem survived a series of crises, including incidents involving federal agents and significant court order violations by her immigration agency, without being held accountable until this testimony. Despite previous instances that could have warranted her ousting, it was her perceived disloyalty that led to her removal.
-President Trump's National Cybersecurity Strategy advocates for a significant increase in the involvement of private companies in U.S. cybersecurity efforts. Released on March 6, 2026, this strategy emphasizes a shift towards allowing these firms to take a proactive role in cyberwarfare, with plans to "unleash" them to disrupt adversary networks. This approach contrasts with previous administrations that focused more on threats from China and Russia, which are notably absent from this strategy. The document is notably concise at seven pages, compared to the previous 39-page strategy published by the Biden administration in 2023. The strategy also includes goals for streamlined regulations and modernization of government networks, indicating a comprehensive approach to enhancing national cybersecurity.
-Dr. Vinay Prasad, a controversial figure at the FDA, is resigning as chief science and medical officer at the end of April. He faced criticism for overruling career scientists on vaccine approvals and taking a hard stance against a biotech company implicated in two teen deaths. His refusal to accept Moderna's application for a new mRNA flu vaccine sparked significant backlash from companies and experts, who accused him of frequently altering study requirements previously approved by the agency. Shortly after, the FDA commissioner reversed Prasad's decision after Moderna agreed to conduct further studies.
-Representative Joyce Beatty, a Democrat from Ohio, has filed a lawsuit seeking to prevent President Trump's plan to shut down the John F. Kennedy Center for the Performing Arts for two years, which he refers to as a "complete rebuilding." In the lawsuit, Beatty expresses concerns that Trump may intend to demolish the existing structure, citing his prior actions, including the unauthorized demolition of the White House's East Wing for a ballroom construction. The suit argues that Congress has not authorized the closure or rebuilding of the center, emphasizing the potential for irreparable harm to this national landmark and the silencing of dissent by its trustees. Beatty is represented by high-profile legal counsel Norman Eisen and Nathaniel Zelinsky, who contend that the president requires congressional approval for such actions. In contrast, a White House spokesperson claimed the plans are aimed at enhancing the center as a welcoming destination.
-NASA's Double Asteroid Redirection Test (DART) mission, conducted in 2022, involved a deliberate crash of a spacecraft into the asteroid Dimorphos to demonstrate the feasibility of deflecting a potential future threat to Earth from killer asteroids. The mission successfully reduced Dimorphos's orbit around its parent asteroid, Didymos, by 32 minutes, and produced a significant dust and debris cloud observable from various telescopes. A recent study has revealed that the impact of DART not only altered Dimorphos's orbit but also affected the trajectory of the Didymos-Dimorphos pair as they orbit the Sun. This highlights the potential for Earth to avert future asteroid impacts by altering asteroid paths.

NY POST
-Gov. Gavin Newsom's environmental policies and fluctuating global oil prices could drive California's gas prices above $8 a gallon, potentially leading to fuel rationing reminiscent of the 1970s. State lawmakers, including Southern California's Sen. Suzette Valladares, argue against the state's cap-and-invest program, suggesting it endangers the economy by increasing prices due to carbon emissions charges on oil producers. Valladares warned that further refinery closures could lead to a substantial decrease in supply, driving prices even higher. Supporting legislative efforts, Republican Sen. Tony Strickland has proposed a bill to mitigate these rising costs by eliminating state taxes and certain environmental regulations, aiming to reduce prices by over $1 per gallon.
-Anthropic CEO Dario Amodei has issued an apology for the tone of a controversial 1,600-word letter directed at his employees, which criticized the Trump administration. In the letter, he accused the Pentagon of targeting Anthropic for not providing favorable commentary about Trump. Amodei clarified that the company did not leak the letter, emphasizing that escalating the situation was not in their interest. His comments followed Trump's disparaging remarks about Anthropic staff and Secretary of War Pete Hegseth's announcement regarding the company being a "supply-chain risk." Amodei expressed regret over the letter's tone, asserting that it did not represent his usual thoughtful perspective.
-Margaret Franklin, facing criticism for her support of Diversity, Equity, and Inclusion (DEI) policies, has announced her planned retirement as CEO of the CFA Institute. Her departure, communicated via email to the organization’s 200,000 members, follows a tumultuous period marked by the introduction of a voluntary DEI code of conduct that Franklin encouraged members to adopt, despite complaints regarding its implications. She will continue as an adviser for the remainder of the year.

FT : Palmer Luckey’s $1bn pitch to reboot 1990s video game consoles

Palmer Luckey’s $1bn pitch to reboot 1990s video game consoles
From AI weapons to Game Boys, defence tech billionaire is in talks to raise funds for new gaming venture ModRetro

The billionaire war drone maker Palmer Luckey has a new pitch for investors: a $1bn bet he can revive interest in the Game Boy.

The founder of Anduril Industries, which builds AI-powered weapons for the Pentagon, is raising funds for his venture, ModRetro, which plans to develop and sell updated versions of classic 1990s consoles.

According to people familiar with the matter, Luckey is in talks with investors about backing the business at a $1bn valuation as it prepares to launch devices including a machine that recreates the Nintendo 64.

ModRetro in 2024 launched its first device called the Chromatic, which is in the style of Nintendo’s Game Boy and comes bundled with the popular puzzle video game Tetris.

“I have been working on making the ultimate Game Boy inspired device off and on as a hobby for almost seventeen years now,” Luckey wrote in a 2025 blog post.

“It is, put simply, my ultimate tribute to the beautiful form, technical excellence, and cultural impact of the Nintendo Game Boy.”

Luckey co-founded Anduril in 2017 after he left Facebook, which had bought his virtual reality headset business, Oculus, for $2bn in 2014 when he was 21.

The success of Anduril, backed by prominent venture capitalist Peter Thiel and named after a sword in JRR Tolkien’s The Lord of the Rings, has made him one of Silicon Valley’s best-known entrepreneurs; a uniform of Hawaiian shirt, flip-flops and a mullet means Luckey is also among the most recognisable.

Anduril sells drones and other autonomous weapons to the US military and its allies, taking on an oligopoly of contractors including Lockheed Martin and Raytheon for a share of an industry worth trillions of dollars.

The company has capitalised on surging investment in defence technology and is in talks with investors about a major new funding round which could value it above $60bn, according to a person with knowledge of the matter.

ModRetro was the name of Luckey’s first business, an internet forum he started as a teenager popular with “hardware hackers combining vintage game consoles with modern technology,” he wrote in the blog post.

The company will also produce games including remasters of classics and new titles. ModRetro did not respond to requests for comment.

WSJ : Volkswagen Dealers Revolt Over Plan to Sell a New Brand of SUV Directly AI

Volkswagen Dealers Revolt Over Plan to Sell a New Brand of SUV Directly to Consumers
Latest of several lawsuits seeks to stop carmaker from bypassing dealerships

  • Scout Motors plans to sell its trucks and SUVs directly to customers, bypassing dealers.
  • The plan has drawn lawsuits including a legal challenge seeking class-action status.
  • A Scout executive said many U.S. consumers hate the traditional car-shopping experience.

When the German automaker Volkswagen VOW3 -3.04%decrease; red down pointing triangle revealed it would create a brand called Scout Motors—with a lineup of rugged, all-American electric and hybrid trucks and SUVs—Fred Ippolito started making plans.

Ippolito, a Volkswagen dealer, bought a vacant retail lot next door to his dealership in West Islip, N.Y. The perfect place for a Scout store, he thought. The trucks, designed and built in the U.S. for American buyers, are exactly what Volkswagen dealers have spent years clamoring for.

Four years later, Ippolito’s property is still vacant. And he and other dealers are taking Volkswagen and Scout to court.

Taking a cue from Tesla, Scout plans to sell its trucks and SUVs directly to customers, bypassing dealers entirely. While other electric newcomers such as Rivian Automotive and Lucid Motors have taken the same approach, dealers said that because Scout is a Volkswagen Group company, it must sell cars through independent, franchised dealerships.

“Volkswagen built their success on the backs of the dealer network, and now they’re putting knives in the backs of the same dealers that helped them grow in this country since the 1950s,” Ippolito said.

Scout remains undeterred, convinced that selling directly gives the company more insights in the artificial-intelligence age, while creating a better experience for its customers, Chief Executive Officer Scott Keogh said.

“You can be dramatically more efficient with every single car that you make and exactly where that car goes,” Keogh, the former CEO of Volkswagen of America, said at an event in suburban Detroit this past week. “And yes, we want to squeeze out every last bit of opportunity there. I think there’s no debate that the system now is inefficient.”

Scout’s plan has drawn several lawsuits. The latest legal challenge, filed recently by Ippolito and another Volkswagen dealer in federal court in Virginia, is seeking class-action status. It aims to skip a gantlet of state-by-state fights and act on behalf of all the roughly 600 dealers in Volkswagen’s U.S. network. Dealers hope to force Scout to rethink its sales model before a single truck or SUV rolls off the line in early 2028.

The question at the heart of this legal battle: Who has the right to sell you a new car in the U.S.?

While other countries often permit cars to be sold directly from car manufacturers, U.S. state laws broadly guarantee that only independent dealers—not manufacturers—can sell vehicles to consumers.

Scout Motors, even as it plans to hire 4,000 people to staff its new plant in South Carolina, is unable to get a license to sell cars in that state, for example.

Dealers—who lobbied for laws that cement their role in the car-buying process, and have considerable political clout—argue that the system protects consumers. Instead of manufacturers setting a nationwide price, dealers decide what to charge, often undercutting each other. They said they are better equipped than the factory to service vehicles and give customers the best value for their trade-in cars.

“Selling the car is the easy part,” Ippolito said. “It’s maintaining the customer for the next 10 years and servicing them and taking care of them—that’s where the difficulty comes in, and the manufacturer is just not equipped to do that.”

Scout executives said they want the freedom to try to prove Ippolito wrong.

Cody Thacker, Scout’s vice president of commercial operations, said many U.S. consumers hate the traditional car-shopping experience. Scout is planning 100 company-owned showrooms and service centers in the U.S. and Canada to replicate the dealer footprint.

Scout plans to employ enough service technicians, Thacker said, that its customers will never face trouble having their cars looked at.


“We have heard over and over again, ‘Please give me an alternative,’” Thacker said. “You see that there is very little trust in auto dealers today.”

The dealership model began to crack in the 2010s when Tesla started selling its electric cars directly. Elon Musk’s company said it could better control the car-buying experience with Tesla-owned stores. Tesla also contended that, since electric vehicles require fewer parts and less routine maintenance than gasoline cars, dealerships wouldn’t be as interested in selling them. Oil changes and other service visits are often where dealers earn their profits.

To establish its network of hundreds of Tesla stores in the U.S., the automaker fought and won several legal battles. Tesla and other new EV players—including Rivian and Lucid—still face hurdles and extra red tape in some states.

What makes Scout alarming to dealers is the company’s connection to Volkswagen. If one of the world’s oldest automakers can create a new brand with no dealer ties, what is to stop Ford Motor, General Motors or Toyota Motor from doing the same?

“To have a wholesaler like VW support and back this direct-to-sale philosophy—changing the way that it’s operated for generations—is what’s creating this uproar,” said Dave Cantin, who runs an automotive M&A firm. He called it a cutthroat move.

Volkswagen isn’t alone in trying to break from the dealership paradigm. Honda Motor dealers in California have challenged the direct-sales plan for a new high-end EV developed with Sony called the Afeela 1.

For now, Ippolito is keeping the retail property near his dealership—including a vacant building where he imagines a Scout showroom.

“Eventually we’re going to win this case, and I’m hoping to wind up with Scout,” he said.

Barron's : This Battlefield Protection Company Has Gone Nuclear. It’s an Obvious

This Battlefield Protection Company Has Gone Nuclear. It’s an Obvious Buy.
Cadre Holdings is a one-stop shop for law enforcement, federal agencies, and U.S. and international armed forces. Its move into nuclear safety makes its stock even more attractive.

Geopolitical instability provides a compelling backdrop for defense sector investments. After all, war is big business. Yet for Cadre Holdings, the latest Middle East conflict is only one catalyst within a broader, multifaceted growth story.

The Jacksonville, Fla.-based company with a $1.9 billion market capitalization is a leader in the public safety supply chain. Its products include everything from holster and tactical duty belts to riot gear, ballistic armor, field communications systems, forensic testing kits, and explosive ordnance disposal robots. As its customers prioritize survivability and modernization of their equipment capabilities, Cadre has capitalized on being a one-stop shop for law enforcement, federal agencies, and U.S. and international allied armed forces operating in complex threat environments.

Its stock has proven to be an effective compounder, with its price more than doubling in the past three years. Increases in state and local police funding, along with an expansion effort into a new vertical servicing the nuclear industry, highlights its evolving growth tailwinds. It’s currently trading near a record high, but there’s plenty of room for more upside, whether the Iran conflict escalates or not.

In war or in peace, Cadre looks like a good bet for further gains in 2026 and beyond. In a scenario in which growth and margins outperform expectations, we think the stock can climb as high as $70, about a 55% upside from the recent price of $44.50.


The bullish view is shared by Michael Goodman, portfolio manager of the Cromwell Greenspring Mid Cap fund, which features Cadre among its holdings. “With high profitability and a culture of continuous improvement, Cadre generates robust free cash flow to fund organic growth and strategic acquisitions,” he says, citing the company’s balance sheet, insider ownership, and attractive stock valuation.

Recent operating and financial trends reinforce Cadre’s strong fundamental profile. Ahead of its fourth-quarter earnings release, scheduled for March 10, the company expects full-year net sales of around $627 million, an annual increase of about 10%—and a similar jump in annual adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda. Looking beyond that, Wall Street projects an even stronger outlook for 2026, with a building consensus for accelerating earnings as the company’s global reach ramps up.

Part of the momentum reflects Cadre’s increasingly high-tech offerings. Multiple acquisitions in recent years have diversified its sales mix while lifting margins. The company’s most recent acquisition, TYR Tactical, provides a “significant entry into new markets, particularly European military and defense,” Cadre President Brad Williams told a recent investor conference. TYR’s hard armor pressing capabilities are a critical process for the manufacture of advanced antiballistic materials, including those used in protective gear designed to withstand armor-piercing rounds of the type soldiers might be exposed to in a war zone.

The TYR deal is expected to generate meaningful synergies and add 16% to earnings per share this year, according to Jefferies analyst Sheila Kahyaoglu. She estimates EPS could reach $1.59 in 2026, representing a roughly 25% increase from her 2025 adjusted earnings estimate of $1.18. In a note reaffirming a Buy rating on the stock, Kahyaoglu points to increased funding for state and local police protection, along with the company’s international market share gains against smaller competitors. Her $55 price target implies a 24% upside.

Importantly, Cadre’s potential is no longer confined to tactical gear. Through acquisitions such as Alpha Safety in 2024 and Carr’s Engineering early last year, the company has strategically entered the nuclear handling and safety solutions business. Its abilities include containment and handling systems, nuclear waste management equipment, and radiological detection technologies.

In response to potential nuclear armed adversaries, the U.S. Department of Defense and National Nuclear Security Administration are moving to modernize the country’s nuclear weapons capabilities, targeting the buildout of up to 80 war-reserve plutonium pits a year. These pits—spherical cores the size of bowling balls that trigger the warhead—have not been produced in the U.S. in nearly three decades, according to the Department of Energy. Cadre is now equipped to manage the extremely hazardous industrial process of storing, transporting, and monitoring these materials. It’s a clear growth driver.

Outside the national security use cases, the nuclear industry is undergoing a renaissance fueled by renewed investment in nuclear power generation. Power requirements of artificial-intelligence data centers have kick-started plans for new nuclear power plants, while aging reactor fleets are expected to see their service life extended. Cadre can capture lucrative recurring contracts where technically complex projects and strict certifications serve as barriers to entry.

Shares of Cadre are currently trading at approximately 30 times its consensus year-ahead EPS—a multiple that sits above the broader market but is reasonable within its peer group. Competitors include Mirion Technologies, trading at 37 times earnings, and Axon Enterprise, which commands a 68-times earnings multiple. Axon’s premium reflects its near monopoly on products like body cams and nonlethal tasers. Nevertheless, Cadre’s diversification is unmatched, with its valuation justified based on its strong outlook and history of execution.

With a roughly $2 billion serviceable addressable market in the core law-enforcement personal protective equipment business, its Nuclear Group has opened the door for an additional $3 billion to $6 billion opportunity. If management continues integrating acquisitions effectively while driving operating leverage and consolidating its leadership role, earnings growth should outpace revenue—a combination that can sustain elevated valuation multiples and propel the stock higher over the long run.

As intriguing as the outlook might seem, the investment isn’t entirely risk-free. Revenue is largely dependent on government budgets, where procurement cycles can be bumpy, particularly against high expectations. The current geopolitical and political climate also introduces a layer of uncertainty, where shifting sentiment toward the wider defense sector could pressure the stock even if financials remain intact.

Ultimately, the upside here is worth it. For investors willing to look beyond near-term headlines, Cadre stands out as a differentiated small-cap stock with a structurally growing platform where scale, technical expertise, and disciplined capital allocations could continue to translate into outsize shareholder returns.

FT : US agency to create $20bn reinsurance facility for Gulf shipping

US agency to create $20bn reinsurance facility for Gulf shipping
Development Finance Corporation to offer coverage in hopes of restarting shipping through Strait of Hormuz

The US Development Finance Corporation is creating a $20bn reinsurance facility to restart maritime cargo and oil commerce stalled by the closure of the Strait of Hormuz following the American and Israeli strikes on Iran.

DFC chief executive Ben Black and Treasury secretary Scott Bessent will on Friday unveil the facility, which follows a directive from President Donald Trump to create a political risk insurance and financial security mechanism to ensure free energy flows. Trump said the US Navy would escort tankers through the Strait if necessary.

Black said the facility, which will initially provide up to $20bn in cover on a rolling basis, would “restore confidence in maritime trade and stabilise international markets”.

DFC, the government’s development bank, will closely co-ordinate with Central Command, which runs American military operations in the Middle East.

“Working alongside Centcom, DFC coverage will offer a level of security no other policy can provide,” Black said. “We are confident that our reinsurance plan will get oil, gasoline, [liquefied natural gas], jet fuel and fertiliser through the Strait of Hormuz and flowing again to the world.”

Shipping through the Strait is in effect blockaded by the war with Iran, with Tehran threatening to strike any vessels that traverse the waterway.

Restarting traffic through the Strait, through which about a fifth of global oil supply flows, has become a priority for Trump as he looks to stem a politically damaging surge in petrol prices ahead of November’s midterm elections.

Voters are frustrated with persistent inflation that has triggered a cost-of-living crisis. The average price of petrol is now $3.32 per gallon, its highest level since mid-2024.


The DFC facility will provide a total of $20bn reinsurance at any given point, but that amount could rise over time, said an agency official.

The DFC said it had identified US insurance companies to partner with on the programme.

Qatar’s energy minister on Friday warned that the war with Iran could “bring down the economies of the world” and predicted that Gulf energy exporters would stop production within days. Brent crude rose above $92 a barrel on Friday, its highest level since the start of the war.

The DFC plan comes after insurance and energy specialists expressed scepticism this week about the capacity to underwrite the extensive risk involved in ships transiting through the Gulf.

JPMorgan said DFC had access to just $154bn of the $352bn needed to fully insure the 329 oil vessels in the region, covering the risk of oil pollution, salvage, hull and third-party liability coverage in the event of a total loss.

The agency has a statutory ceiling of $205bn on its total liability through 2031, of which it had used $51bn by the end of 2025, according to the bank.

But the DFC official disputed JPMorgan’s assessment, saying the bank was looking at wider insurance coverage, while the agency would focus on covering hulls, machinery and cargo.

He said the facility would be only required for shorter periods, when ships were in the war zone. The DFC is compiling the conditions for eligibility for the kinds of ships that can apply to the facility.

“We’re tailoring it to the specific policies that the market needs to restart maritime commerce,” the official said.

He added the facility would help alleviate the exorbitant cost of insurance, while the navy would provide the security needed to give ship captains confidence to sail.

A navy escort operation would require destroyers and jets flying above vessels. Even with risk insurance and escorts in place, tankers would still be vulnerable to attacks from Iranian forces, which could use speedboats armed with rockets and deploy small missiles, anti-ship missiles, drones and mines. 

During the so-called tanker war in the 1980s, Kuwaiti tankers reflagged as American, and more than 30 US destroyers escorted vessels out of the strait.  

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • NUTX -27.5%, OWLT -23.2%, MEOH -8.3%, GAP -8.3% (also authorizes new $1 bln share repurchase program), PROF -7.2%, ASLE -5.1%, COO -3.4%, GRNT -3.2%, RUM -3%, AQN -2.8%, AVIR -1.7%, SOBO -1%
Other news:
  • INGM -13.9% (prices offering of 8,988,764 shares of the Company's common stock at $22.25 per share)
  • ALOY -8.2% (prices offering of 2,702,702 shares of its common stock at $18.50 per share)
  • AERO -4.8% (Feb traffic data)
  • GEO -2.8% (CFO to step down, names new CFO)
  • TNXP -2.4% (publication of clinical pharmacokinetic studies)
  • ARGX -1.8% (to Present New Data at 2026 AAN Annual Meeting that Continue to Transform Patient Outcomes in MG and CIDP and Build Upon Strength of Pipeline)
  • BLSH -1.5% (Feb metrics)
  • MEI -1.1% (MEI sells its dataMate copper transceiver business to BELF.A BELF.B; also reports earnings)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • OMDA +14.2% (also announces GLP-1 Flex Care for employers), EVC +13.6%, SWBI +12.8%, MRVL +11.2%, IOT +10.5%, DTI +10%, OPRX +10% (also authorizes new $10 mln share repurchase program), GCO +9.2%, PTRN +6.5% (also authorizes new $100 mln share repurchase program), ALNT +6%, GWRE +3.6%, PBR +3.1%, EMBJ +2.3%, ERO +2%
Other news:
  • TPC +4% (CEO bought 10000 shares worth ~$732K)
  • WSR +3.5% (WSR attracts takeover interest from private equity firms, according to Reuters)
  • KYTX +3.1% (to present new data)
  • HCM +2.5% (Intended Retirement of Independent Non-executive Director and changes of composition of board committees)
  • USFD +2% (awarded a $124 mln Defense Logistics Agency contract)
  • STRZ +1.9% (Allen Family Capital enters into agreement to acquire shares of STRZ)
  • NOMD +1.2% (files mixed securities shelf offering)
  • RTX +1.1% (awarded a $256 mln modification to previously awarded Navy contract)
  • LMT +1% (awarded a $132.9 mln modification to Navy contract)