Iran's Foreign Minister Seyed Abbas Araghchi issued a sharp warning to the United States on Wednesday, claiming vindication from a newly released Congressional report that documented the scale of American aircraft losses during Operation Epic Fury. According to NDTV Profit, Araghchi posted on X that 'Months after initiation of war on Iran, US Congress acknowledges loss of dozens of aircraft worth billions.' He further warned that any return to hostilities would bring consequences far graver than the last campaign, stating 'Our powerful Armed Forces are confirmed as 1st to strike down a touted F-35. With lessons learned and knowledge we gained, return to war will feature many more surprises.' The remarks were a direct response to a Congressional Research Service report dated May 13, 2026, which formally documented that the United States military lost or sustained damage to more than 40 aircraft during the 40-day US-Israeli air campaign against Iran that began on February 28, 2026. The Congressional Research Service (CRS) report revealed that the number of aircraft damaged or destroyed may remain subject to revision due to multiple factors, including classification, ongoing combat activity, and attribution.
The Republican-led US Senate signaled mounting opposition to continuing the Iran war in a procedural vote Tuesday, with Louisiana Senator Bill Cassidy joining three other GOP senators to vote 50-47 in favor of advancing a resolution to cease hostilities. This marks the first time Cassidy has supported the measure, indicating that Trump's campaign of retribution against him has freed him to openly oppose the president. Senators Lisa Murkowski of Alaska, Susan Collins of Maine and Rand Paul of Kentucky joined nearly all Democrats to advance the measure, while three Republicans, Thom Tillis of North Carolina, John Cornyn of Texas and Tommy Tuberville of Alabama, did not vote. The vote represents a clear warning of eroding support for military action as Trump contemplates launching a new assault on Iran, though the resolution would still need to pass the GOP-controlled House before reaching the president for his signature. According to Business Standard, Cassidy said the White House and Pentagon 'have left Congress in the dark' on Iran, adding that until the Trump administration 'provides clarity, no congressional authorization or extension can be justified.'
The Congressional Research Service report revealed the devastating scale of American military losses during Operation Epic Fury. According to NDTV Profit, the aircraft losses and damages included four F-15E Strike Eagle fighter jets, one F-35A Lightning II fighter aircraft, one A-10 Thunderbolt II ground-attack aircraft, seven KC-135 Stratotanker aerial refuelling aircraft, one E-3 Sentry AWACS aircraft, two MC-130J Commando II special operations aircraft, one HH-60W Jolly Green II helicopter, 24 MQ-9 Reaper drones and one MQ-4C Triton drone. The report estimated the total cost of the aircraft losses at approximately $2.6 billion, though US lawmakers warned the real figure could be significantly higher, saying it remains 'unclear' whether the Pentagon has fully accounted for all combat losses. Perhaps most symbolically significant was the fate of the F-35, with the damaged F-35A Lightning II representing the first time in the aircraft's operational history that it had been hit in combat, a milestone that Araghchi seized upon to undercut the stealth fighter's near-mythical reputation. The Congressional Research Service (CRS) compiled the losses by perusing news reports and statements by the Department of Defence and the US Central Command.
The Senate vote reflects deepening political unease over the economic toll of the Iran conflict, which has driven the average national price for regular gasoline to $4.53 per gallon as of Tuesday. According to Business Standard, Sixty-four percent of Americans said going to war with Iran was the wrong decision, according to a New York Times/Siena poll released Monday. During a hearing of the House Appropriations subcommittee on May 12, Acting Pentagon Comptroller Jules W Hurst III testified that the department's cost estimate for military operations in Iran has increased to USD 29 billion. As reported by NDTV Profit, 'A lot of that increase comes from having a refined estimate on repair or replacement costs for equipment,' Hurst stated. The political calculus for senators may be starting to shift as Americans show rising frustration with the economic impact of the conflict, with the House also expected to vote again on a war powers resolution this week as opposition grows in that chamber as well.
Wall Street's main indexes closed lower on Tuesday as the benchmark 30-year Treasury yield climbed to 5.197%, marking its highest level since July 2007 and nearly 19 years. According to reports from The Economic Times and CNBC, the S&P 500 fell 49.44 points, or 0.67%, to 7,353.61, ending its third consecutive losing session. The Nasdaq Composite dropped 220.024 points, or 0.84%, to 25,870.71, while the Dow Jones Industrial Average declined 322.24 points, or 0.65%, to 49,363.88. The technology-heavy Nasdaq led losses as investors booked profits following a strong rally since late March. MSCI's gauge of stocks across the globe fell 6.44 points, or 0.59%, to 1,091.79, with European stocks showing mixed performance as the pan-European STOXX 600 index rose 0.19%. Stocks opened lower and drifted higher through the middle of the trading session but faded into the closing bell as global bond yields continued to rise.
Investors are now pricing in higher odds of rate hikes, with a 25-basis-point increase in December seen at a 41.7% probability and a 50-basis-point hike at 15.7%, according to CME Group's FedWatch tool. A Bank of America survey published Tuesday showed 62% of global fund manager respondents expect 30-year Treasury yields to hit 6%, equaling the highest level since late 1999 and an increase of about 85 basis points from current prices. Only 20% of respondents are targeting a 30-year yield of 4%. As reported by The Economic Times, traders have begun pricing in higher odds of rate hikes as inflation expectations strengthened. The conflict has created an inflation chain where a closed Hormuz raises oil prices, which then feeds into broader inflation, making it difficult for the Fed to cut rates and potentially forcing rate hikes. The 10-year U.S. Treasury note yield rose 4.4 basis points to 4.687%, from 4.623% late on Monday, earlier climbing to 4.687%, its highest level since January 2025. The 2-year Treasury note yield rose 3 basis points to 4.112%, from 4.09% on Monday.
Global bond markets remained on edge as traders monitored central bank responses to renewed inflation fears. The 10-year U.S. Treasury note yield rose 4.4 basis points to 4.687%, from 4.623% late on Monday, earlier climbing to 4.687%, its highest level since January 2025. The 2-year Treasury note yield rose 3 basis points to 4.112%, from 4.09% on Monday. The German 30-year bund yield stood at 3.684%, with Britain's 30-year gilt yield rising less than 1 basis point to 5.773%. Japan's 30-year yield hit a record this week. Yields rose following reports suggesting inflationary pressures were reaccelerating as rising oil prices tied to the conflict with Iran pushed costs higher. The U.S. dollar strengthened 0.14% to 159.05 against the Japanese yen, with the dollar index rising 0.34% to 99.33, driven by higher U.S. yields and inflation fears. Brent crude remains above $110, with the Fed now showing roughly 51% of traders pricing in a rate hike by December.
