Crude prices are on watch as the Trump administration ordered new sanctions against the assets of Ayatollah Ali Khamenei and several Iranian military commanders, as well as plans to target Foreign Minister Javad Zarif later this week. The penalties effectively freeze the business operations of the Supreme Leader's office, which controls a global network of private companies that some experts estimate is worth between $100B-$200B. Tensions already worsened in May, when Washington ordered all countries to halt imports of Iranian oil, and then escalated following a series of apparent Iranian-backed skirmishes in the Middle East. "Imposing useless sanctions is the permanent closure of the path of diplomacy," Foreign Ministry spokesman Abbas Mousavi wrote on Twitter.

Modest losses

Investors are peeling back from recent record highs, taking a defensive stance on risk amid a new set of sanctions on Iran and as U.S. officials downplayed expectations for a breakthrough on China talks at this weekend's G20 summit. U.S. equity futures dipped 0.2% overnight, setting up the S&P 500 for its first three-day decline since early May, while gold rose to a fresh six-year high of $1,438.63 per ounce, taking its three-month advance past 8.8%. Market focus is also largely attuned to the U.S. central bank, with no less than four Fed policymakers, including Chair Jerome Powell, scheduled to speak today.

Fedspeak

Powell takes the stage at 11 a.m. ET, just 24 hours after President Trump accused the central bank of behaving like a "stubborn child" in refusing to lower interest rates. The Fed Chair is likely to reiterate or intensify a recent dovish turn on interest rates - which has traders pricing in a 100% chance of a July reduction in the Fed Funds rate and a 73.3% chance of two more cuts between now and the end of the year - but there's also the possibility he could walk back some of the market's dovish interpretation of last week's FOMC meeting.

'Impossible' export restrictions

FedEx (NYSE:FDX) is suing the U.S. Commerce Department, saying the Trump administration's export restrictions would require the company to "police the contents of the millions of packages it ships daily even though doing so is a virtually impossible task." FedEx had previously ignited Chinese ire over its business practices when a package containing a Huawei phone sent to the U.S. was returned last week to its sender in Britain, in what it said was an "operational error." Fears that China would blacklist the firm as a result sent FDX shares down 2.7% on Monday.

Shaky alliance

Those hoping for a quick fix to the strained Renault-Nissan (OTCPK:RNLSY, OTCPK:NSANY) alliance are set to be disappointed after the Japanese carmaker said that inequality between the two companies could unravel their two-decade-old partnership. "If necessary, we will put our capital structure on the table," Nissan CEO Hiroto Saikawa declared at a raucous annual general meeting in Yokohama. "If the relationship becomes a win-lose one, the relationship will break up very quickly."

Heavy mission

The most difficult launch SpaceX (SPACE) has ever performed proved to be as complicated as Elon Musk had expected. The third mission for the Falcon Heavy rocket occurred at 2:30 a.m. ET, carrying 24 experimental satellites for NASA and U.S. military research laboratories. After a picture-perfect launch, the returning center core booster missed its droneship in the Atlantic, though SpaceX caught the rocket's nose cone in a net and demonstrated the first reuse and landing of the Heavy's two side boosters. The cargo will be deployed into three different orbits over the first 3.5 hours of the Falcon Heavy's flight.

Warner Bros. makes history

Ann Sarnoff, president of BBC Studios Americas, has been appointed as new CEO of Warner Bros., marking the first woman to run one of Hollywood’s most powerful studios in its 96-year history. The former chairman and CEO, Kevin Tsujihara, resigned from the company in March amid accusals of sexual impropriety. AT&T (NYSE:T) acquired Warner Bros. as part of its $85B purchase of Time Warner last year, and recently disclosed that some Warner Bros. content will be distributed on a new WarnerMedia streaming service set to launch in early 2020.

Today's Markets

In Asia, Japan -0.6%. Hong Kong -1.2%. China -0.9%. India +0.7%.
In Europe, at midday, London -0.3%. Paris -0.2%. Frankfurt -0.1%.
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.3%. Crude -0.1% to $57.83. Gold +1.1% to $1434.40. Bitcoin +4.3% to $11320.
Ten-year Treasury Yield flat at 2.02%

Today's Economic Calendar
8:45 Fed's Williams Speech
8:55 Redbook Chain Store Sales
9:00 FHFA House Price Index
9:00 S&P Corelogic Case-Shiller Home Price Index
10:00 Consumer Confidence
10:00 Richmond Fed Mfg.
10:00 New Home Sales
12:00 PM Fed's Bostic Speech
1:00 PM Jerome Powell Speech
1:00 PM Results of $40B, 2-Year Note Auction
6:30 PM Fed's Bullard Speech