Give at least a couple of cheers for coercive diplomacy, which is to say diplomacy through bombing. As the Prussian military strategist Carl von Clausewitz told us a couple hundred years ago, “war is the continuation of politics,” or diplomacy, “by other means.”

Last week’s bombing may well have finally pushed Iran and all their internal factions to at least signing a memo of understanding that represents at least the beginning of the end of the war.

President Trump is a master at coercive diplomacy. He’s also a master of psychological warfare diplomacy with his threats to destroy Iran’s infrastructure, such as power, bridges, water, etcetera.  He even kept Kharg island, the apex of Iran’s energy industry, in play as well.

The full text of the memo might come at the end of the week with a formal signing ceremony, as Mr. Trump said today at the G-7 meeting in France. 

Asked by a reporter “when will the text of the MOU be released,” Mr. Trump replied: “I think pretty soon I would say I mean, I want it to be released because it’s a very powerful document. It’s not like the Obama document, which was just a terrible document. This is a very powerful document and I want it to be released. So probably pretty soon, I would say after sometime after Friday, of course, the Strait opens.”

And though we await all of the details, it seems that the president is keeping all his promises to the American people. And, for that matter, to the defeated and surrendering Iranians. They may never acknowledge their surrender, but they are surrendering.

Mr. Trump has said no nuclear weapons for Iran, and that’s in the deal. He has said that the nuclearized enriched uranium must be transferred out of Iran or destroyed altogether. White House sources maintain that’s in the deal.

He has promised a free navigation reopening of the Strait of Hormuz without any Iranian tolls, and that’s in the deal. Here’s what the president said today on Iranian nukes, again from the G-7 in France: “the main thing is that Iran will not have a nuclear weapon. They fully agreed to that with strong policing powers, and they won’t have a nuclear weapon, which is what it was all about, because they probably would have used it if they had it.”

Now Mr. Trump has also said no money for Iran unless and until they completely change their behavior. And there will be strict performance metrics for all these Trumpian red lines. Again, here’s the president earlier today on this point. 

Mr. Trump was asked by a reporter whether the deal will “involve any sanctions relief for Iran?” and if so, “when would that go into effect?”

The president replied: “No it doesn’t. Well, they have to. It’s really a behavioral thing. If they do what they’re supposed to do, that starts taking effect.”

Now all the administration people keep talking about verification. Verify, verify, verify.

I understand in all these areas the devil is in the operational details necessary to execute this memorandum of understanding. All that has to be worked out.

We all know Iran has absolutely no credibility on any of these points. That’s why I don’t think anyone can say the war is yet over. Yet I will amend Ronald Reagan, we never trust Iran. And that’s even more reason why we must verify, verify, and verify.

 I also recognize that Israel, our great ally and comrade in arms, may still have a lot more work to do to defend its freedom.

Let’s step back a moment, though, and recognize that Mr. Trump has crushed Iran militarily through Epic Fury. Mr. Trump and the Treasury secretary, Scott Bessent, have crushed Iran financially through economic fury. And special mention to our United States Navy for their steel-door blockade of Iranian ports.

Lots of former presidents have railed against Iran. But no one has remotely done what Mr. Trump has done to curb the gruesome, diabolical, evil, radical Islamist outlaws that Mr. Trump has done. No one.

And that’s why I believe people of good faith who want to see freedom truly come to the middle east should support the Trumpian memorandum of understanding and turn that into an actual verifiable agreement.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

NEW YORK — The Russell 2000 index advanced 22.96 points, or 0.79%, to close at 2,943.99 on Monday, as small-cap stocks participated in a broad market rally fueled by the US-Iran peace agreement and the reopening of the Strait of Hormuz, easing geopolitical tensions and boosting investor confidence in domestic economic growth.

The gain extended recent strength in smaller companies, which often outperform in risk-on environments as reduced uncertainty encourages investment in domestically focused businesses less exposed to international supply chain disruptions. The Russell 2000’s performance aligned with advances in the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite, creating a positive day across major US equity benchmarks.

The US-Iran ceasefire announcement, which includes the immediate lifting of the naval blockade and restoration of shipping through the critical oil waterway, removed a major risk premium that had weighed on markets. President Donald Trump’s confirmation of the deal triggered widespread buying, with small-caps particularly benefiting from expectations of lower energy costs and improved consumer and business sentiment.

Small-Caps Benefit from Domestic Focus

Smaller companies, represented by the Russell 2000, tend to derive more revenue from the domestic economy compared to their large-cap counterparts. The prospect of stable or declining energy prices supports sectors such as consumer discretionary, industrials and financials — areas with heavy small-cap representation. Regional banks, homebuilders and retailers were among the session’s stronger performers as investors bet on improved economic conditions.

The index’s advance reflects renewed optimism about the US economy’s resilience. With inflation pressures potentially easing due to lower oil costs, the Federal Reserve may maintain a more accommodative policy stance, which historically favors smaller companies that rely on borrowing for growth and expansion.

Analysts noted that small-caps had lagged large technology names for much of the year but showed signs of catching up as broader economic tailwinds emerged. Monday’s outperformance suggests investors are rotating toward value and cyclical stocks in anticipation of a more balanced market environment.

Broader Market and Economic Context

The Russell 2000’s gain came amid record closes for the Dow and strong advances in other major indices. Technology stocks continued their recent run, while industrial and financial shares posted solid results. The session highlighted improving risk appetite as concerns over prolonged Middle East disruptions faded.

Lower energy costs are expected to provide relief to households and businesses, supporting consumer spending and corporate margins. Small businesses, which form the backbone of the Russell 2000, stand to benefit from reduced input costs and greater economic stability. This environment could encourage hiring, investment and expansion among smaller firms.

The peace agreement also carries positive implications for global trade and supply chains. Reduced shipping risks through the Strait of Hormuz should help stabilize commodity prices and support industries reliant on international commerce, providing indirect benefits to many small-cap companies.

Sector Performance and Key Movers

Financial stocks within the Russell 2000 posted notable gains as lower volatility and improving growth prospects supported lending activity. Regional banks, in particular, benefited from expectations of steady loan demand and reduced credit risk concerns.

Industrial and materials names advanced on improved manufacturing outlook and commodity price stabilization. Consumer discretionary stocks rose as lower fuel costs were seen as supportive of spending on goods and services. Healthcare and technology components within the index also contributed to the advance.

The session’s broad participation indicated healthy market breadth, a positive signal for sustained momentum. Volume was elevated as investors repositioned portfolios in response to the geopolitical breakthrough.

Analyst Views on Small-Cap Outlook

Market strategists described the move as consistent with historical patterns following major risk reductions. Small-caps often thrive when economic uncertainty declines and borrowing conditions remain favorable. With the Federal Reserve likely to monitor incoming data closely, the current environment appears conducive to further small-cap strength.

Some analysts cautioned that while the immediate reaction was positive, implementation details of the Iran agreement and progress on nuclear talks would determine the longevity of the rally. Nevertheless, the consensus leaned constructive, with many highlighting attractive valuations in the small-cap space relative to large-caps.

The Russell 2000’s price-to-earnings ratio remains below that of the S&P 500, offering potential value for investors seeking exposure to domestic growth stories. Dividend-paying small-caps also provide income opportunities in a still uncertain rate environment.

Investment Implications

For individual investors, Monday’s performance underscores the importance of diversification across market capitalizations. While large-cap technology names have driven much of the market’s recent gains, small-caps offer exposure to different economic drivers and potential for outperformance during periods of economic normalization.

Financial advisers recommend evaluating small-cap funds or ETFs for those seeking broader market participation. Focus should remain on companies with strong balance sheets, competitive advantages and exposure to secular growth themes such as domestic manufacturing resurgence and technological adoption.

The Russell 2000’s movement also highlights the interconnected nature of global events and US equities. Investors are encouraged to stay informed about international developments while maintaining a long-term perspective on domestic opportunities.

Looking Ahead

Attention now turns to upcoming economic data releases, including inflation figures, retail sales and manufacturing surveys. Corporate earnings from small-cap companies will provide further insight into the health of the domestic economy and the sustainability of recent gains.

The Federal Reserve’s communications and any policy signals will also influence small-cap performance, particularly regarding borrowing costs and credit availability. Positive developments on the Iran agreement implementation could provide additional support in coming sessions.

As 2026 progresses, the Russell 2000 remains a key barometer for the health of smaller US businesses and overall economic breadth. Monday’s advance suggests improving conditions and investor willingness to embrace risk following a period of geopolitical uncertainty.

The index’s performance contributes to a constructive market backdrop, with reduced external risks allowing focus to shift toward fundamentals. For now, the Russell 2000’s solid gain reflects confidence in America’s domestic economy and the potential for small companies to thrive in a more stable global environment.

Investors will continue monitoring developments in the Middle East alongside domestic indicators to assess the durability of the current positive momentum. The session serves as a reminder of markets’ capacity for swift recovery when major uncertainties diminish, setting an optimistic tone as the week unfolds.

West Marine is planning to close 59 stores around the country as it works through bankruptcy proceedings.

The boating and fishing supply retailer based in Fort Lauderdale, Florida, filed for Chapter 11 bankruptcy protection last month and submitted a list of retail locations it intends to close amid its restructuring, which includes 59 stores in 23 states.

It said in its announcement that it has more than 200 retail locations across 34 states and Puerto Rico.

MAJOR CARL’S JR OPERATOR REPORTEDLY SET TO SHUTTER, SELL DOZENS OF CALIFORNIA LOCATIONS

“After productive discussions with key advisors, we’ve reached an agreement to pursue a strategic reorganization that will address our capital structure while maximizing value for all our stakeholders,” West Marine said in a statement announcing the move.

The company said that it has encountered headwinds from supply chain disruptions, extreme weather events and changes in consumer behavior that contributed to the financial difficulties that prompted the bankruptcy filing.

DETROIT BANKRUPTCY CASE OFFICIALLY CLOSES MORE THAN 13 YEARS AFTER HISTORIC FILING

It added that its restructuring plan will strengthen its balance sheet, reduce debt levels and give the firm more financial flexibility.

“West Marine has been a trusted partner to the boating community for decades. The actions we are taking today will allow us to optimize our operations so that we can continue to serve our customers and community well into the future,” West Marine CEO Paulee Day said in a statement.

SPIRIT AIRLINES LAWYER SAYS JET FUEL PRICE SURGE LEFT CARRIER WITH ‘NO REMAINING WAY OUT’ OF BANKRUPTCY

The company’s restructuring website said that West Marine plans to move through bankruptcy in an expedited process and is considering emerging from Chapter 11 by mid-August.

West Marine said it will be open for business and that customers should not expect changes to day-to-day operations throughout the duration of the bankruptcy.

The company is closing stores in: Alabama, California, Florida, Georgia, Illinois, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Virginia, Washington and Wisconsin.

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Wall Street’s main indexes rallied on Monday, with the Dow marking a record-high close after the United States and Iran struck a preliminary agreement to end the Middle East war and reopen the Strait of Hormuz, leading to an easing of inflation fears as crude oil prices dropped.

The deal framework – expected to be formally signed in Switzerland on Friday – did not address key ‌issues such as Tehran’s ⁠nuclear program ⁠and the Israel-Lebanon conflict.

Still U.S. crude futures settled down 4.9% following the news and hit their lowest level since March, aiding shares of energy-sensitive airline and cruise stocks and hurting energy shares.

Rate-sensitive technology stocks rallied as investors were more comfortable taking on riskier bets with lower oil prices easing inflation fears.

“Markets are higher on a classic relief rally. We have a US-Iran deal that’s driving oil sharply lower. This is easing inflation fears and basically pushing investors back into risk assets like technology,” said Gene Goldman, chief investment officer at Cetera Investment Management, in El Segundo, California.

Also Read | US stocks: Nvidia’s jumbo bond sale draws $85 billion of investor demand
The three main indexes marked their third consecutive session of gains, recovering after Middle East tensions and a pullback in AI-related ⁠stocks had ‌put Wall Street’s record climb on pause more than a week ago. According to preliminary data, the S&P 500 gained 123.80 points, or 1.67%, to end at 7,555.26 points, while the Nasdaq Composite gained 797.79 points, or 3.07%, to 26,686.64. The ⁠Dow Jones Industrial Average rose 490.38 points, or 0.96%, to 51,684.88.
One hope among investors is that a resumption of oil flows from the Middle East and easing crude prices could give the U.S. Federal Reserve, which is grappling with inflation, room to hold interest rates steady instead of raising borrowing costs.
Along with the Iran deal, another big focus for the week is the U.S. central bank’s next policy update, which is due on Wednesday, after Chair Kevin Warsh’s first policy meeting since he took over from Jerome Powell last month. The meeting follows May inflation data that showed higher energy costs filtering into consumer prices. Traders expect the Federal Reserve to leave interest rates unchanged this week, but are pricing in a ‌42% probability for a 25-basis-point hike by the end of the year, according to CME Group’s FedWatch tool.

In individual stocks, SpaceX’s shares rallied sharply for their second day of trading after the Elon Musk-led firm’s blockbuster IPO pushed its valuation above $2 trillion.

Investors had been relieved by its strong ⁠market debut on Friday as they hoped that its landmark Nasdaq launch boded well for the broader market and for the highly anticipated OpenAI and Anthropic IPOs expected later this year.

Elsewhere, airlines were among the leading transport sector gainers with United Airlines rallying. Among cruise companies, Norwegian Cruise and Carnival Corp also climbed.

The CBOE Volatility Index, Wall Street’s fear gauge, slipped for its third day in a row after rising to a more than two-month high the previous week. The Philadelphia SE Semiconductor index rose sharply with a big boost from chip giant Nvidia and Micron, which rallied after at least two brokerages sharply raised their price targets for the stock. In other movers, shares in Fox tumbled after the company said it would buy Roku in a $22 billion deal. Roku shares also fell.

This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.