The Israel-Iran conflict escalated over the weekend — not that you could tell by looking at the financial markets on Monday. The major U.S. stock benchmarks opened higher. Oil prices fell. Gold, the ultimate safe-haven asset, also edged lower. Abroad, the pan-European Stoxx 600 was slightly higher and stock indexes in the Asia-Pacific region climbed, too. It is basically the mirror opposite to Friday’s action, as Israel’s first round of strikes on Iran’s nuclear facilities coursed through global markets, sending equities lower, oil surging and gold gaining. Investors following the news over the weekend might’ve expected more of the same Monday, especially after learning that Israel attacked Iranian energy infrastructure. Iran’s missile strikes also damaged an oil refinery in Haifa, the Times of Israel reported . So why is the market on Monday so far shrugging it all off? In simple terms, traders and investors are betting that the attacks between the two longtime adversaries will not spillover into a broader regional conflict that disrupts the global economy. Whether that’s the right bet remains to be seen. As CNBC reported Monday , some market watchers say investors are underpricing “the risk of a major conflagration in the Middle East.” However, not long after Monday’s opening bell, The Wall Street Journal reported that Iran is signaling to other countries that it wants to end the fighting with Israel — evidence in support of the bet traders were already making. Deutsche Bank macro strategist Henry Allen weighed in on the subdued market reaction earlier Monday in a note to clients titled, “Will geopolitics actually have a market impact this time?” “Historically, it’s only been when it’s affected macro variables like growth and inflation,” Allen wrote. “So for markets, the geopolitical events that mattered were the stagflation shocks, like the 1970s oil crises, the Gulf War in 1990, and Russia’s invasion of Ukraine in 2022.” Allen pointed out that while Brent crude prices jumped around 7% on Friday to roughly $74 a barrel, the international oil benchmark is still below its 2024 average of roughly $80. “So this isn’t causing wider inflationary problems yet. Clearly, a larger price spike would evoke the 2022 scenario where central banks hiked rates to clamp down on inflation,” Allen wrote. “But so far at least, we’ve yet to see that. If anything, the extent of the market’s resilience to repeated shocks this year has been a significant story in itself.” Our main takeaway from Deutsche Bank’s note: where the price of oil goes in response to the Israel-Iran conflict matters the most for the global economy — and therefore the stock market. As CNBC’s senior markets commentator Michael Santoli put it Monday: “Equites aren’t going to overthink it if oil is not going to add in any more risk premium in response to anything like a conflict we’re seeing right now.” The biggest risk to oil prices is that Iran shuts down the Strait of Hormuz, a waterway situated between Iran and Oman that is “the world’s most important oil chokepoint,” according to the U.S. Energy Information Administration . Extended disruption to shipping in the Strait of Hormuz could result in oil prices spiking above $100 a barrel, Goldman Sachs estimated on Friday. About 20% of global oil production flows through the Strait of Hormuz, the firm said. To be sure, Goldman analysts said they did not believe trade disruptions had a high probability. Citigroup’s global head of commodities research, Max Layton, said he would’ve expected to see stronger oil prices again on Monday. “Clearly, there was a lot of short-covering, a lot of call-buying on Friday and no follow-through with actual long positions today,” Layton said on CNBC. Still, Layton said the market isn’t ignoring the Israel-Iran situation. “There’s already a very big geopolitical risk premium in the market. We estimate it’s around $10 to $12 at the moment, and that risk premium is there for a reason,” he said. “There’s been no real oil export or oil production disruption in Iran, and yet the market is trading $10 to $12 higher. That obviously reflects the potential for a significant, if temporary, disruption to the Strait of Hormuz supply.” An important counterbalance for crude prices right now is that the Organization of the Petroleum Exporting Countries is in the process of increasing oil production, Layton noted. That is “really important to help explain why there hasn’t been any follow-through in terms of fresh long positions in the market today,” he said. “Often investors, when they’re thinking about a trade, they need not just the short-term [outlook] to be bullish. And there’s obviously catalysts for higher prices in the very term. But they also need the medium-to-long-run outlook to be bullish. … Our 12-month forecast remains $65 Brent and we haven’t seen anything that would change that medium-to-long-term outlook, which is still bearish from these prices.” (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
BYD’s ultra-luxury sub-brand, Yangwang, launched its fourth all-electric model in China, and it’s another design marvel. Like its U8 predecessor, the Yangwang U8L SUV has “Emergency Float Mode.” Plus, this one can tank turn, is powered by four motors, and has 24-karat emblems. Check out one of the most expensive new BEVs in China.
Yangwang, which directly translates to “looking up” or “admire,” is an ultra-premium brand under the BYD umbrella introduced in 2023. The luxury-centric marque turned some heads out of the gate at the 2023 Shanghai Auto Show, where it unveiled the U8 SUV, which can go amphibious in emergencies and crabwalk.
In early 2024, Yangwang unveiled its first sedan, the 500-mile range U7, to complete an initial trio of flagship models. By August, we learned Yangwang was hard at work on a fourth model – a third-row variant of the U8 SUV called the U8L – which promised to be longer and even more luxurious.
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Today, Yangwang officially launched the U8L in China, beginning in a single “Dingshi Edition” trim that starts at RMB 1.28 million ($179,800) – debuting as one of the most expensive models amongst all Chinese automakers.
Yangwang U8L offers Rolls-Royce-style luxury
Today’s launch marks Yangwang’s deeper push into the luxury SUV market in China, looking to compete against brands like Mercedes-Benz and Range Rover. Yangwang’s new U8L takes the U8 to another level, offering more space and other comforts.
For example, the Yangwang U8 measures 5,319 mm long, 2,050 mm wide, and 1,930 mm tall, with a wheelbase of 3,050 mm. In comparison, the new U8L measures 5,400 mm long, 2,049 mm wide, and 1,921 mm tall, with a wheelbase of 3,250 mm.
The longer length and wheelbase allow for a new third row atop BYD’s e4 platform, which also houses four electric motors. That powertrain configuration combines for 880 kW (1,180 horsepower) and peak torque of 1,280 Nm, accelerating from 0 to 100 km/h (0-62 mph) in 3.5 seconds. Not bad for an SUV.
Per Yangwang, the U8L also comes equipped with BYD’s DiSus-P body control system—the Chinese automaker’s most advanced version, enabling premium comfort and stability on any terrain. The U8L also features BYD’s most advanced ADAS, “God’s Eye A.” In the images above, multiple sensors are visible above the windshield.
Other features include emergency flotation mode, blown tire stability, tank turns, and a crabwalk. Plus, fully reclining seats, window privacy curtains, and a rear storage fridge for your Cristal. Due to its size, the Yangwang U8L’s all-electric CLTC range is only 200 km (124 miles), but it features a hybrid range extender that boosts its overall range to 1,160 km (700 miles).
What do you think about this SUV?
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The bZ7 is about the size of a Tesla Model S and way nicer than you’d expect. Toyota’s new flagship EV is not only stunning-looking, it’s also loaded with advanced tech.
Meet the bZ7, Toyota’s new flagship EV
Toyota’s joint venture in China, GAC-Toyota, unveiled official images of the bZ7 this week, its new flagship all-electric sedan.
The bZ7 is 5,130 mm long, which is slightly longer than the Tesla Model S and BYD Han L. Although it has Toyota’s updated “hammerhead” front end design, like the new Camry and Crown, the flagship EV is a big step up from the Toyota vehicles we see on the road today.
Toyota said its new EV has “a luxurious and elegant figure,” and we’d have to agree. From the side, it has a sleek, fastback design that blends sporty and elegant. The long, triangular side windows open up the interior.
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The bZ7 is also Toyota’s most advanced EV yet. It will be the first vehicle to feature Xiaomi’s “Human x Car x Home” smart ecosystem, which unlocks new functions such as controlling smart home appliances directly from the vehicle’s infotainment system or your smartphone.
The Toyota bZ7 flagship electric sedan (Source: GAC-Toyota)
Forgot to set the air? Xiaomi’s smart tech allows you to control it on the go. During its tech day event in June, Toyota announced new partnerships with Xiaomi, Momenta, and Huawei, or what it called the “car industry bigwigs,” for the latest tech and software.
The Toyota bZ7 flagship electric sedan (Source: GAC-Toyota)
The bZ7 has a Lidar installed on the roof, which will be used to support Momenta’s latest smart driving system, Momenta 6.0. It’s expected to be offered on higher trim options.
On the inside, the cabin is a step change from most Toyota models with a minimalist, elegant layout. It features a floating central touchscreen, a driver display screen, and a wireless phone charger.
The interior of the Toyota bZ7 (Source: GAC-Toyota)
Toyota’s flagship EV will also use Huawei’s electric motors and its new HarmonyOS cockpit system. According to Li Hui, the General Manager of Toyota China, “To deliver cars that people want in China, we need Chinese brains and hands involved in development.
We will learn prices, battery specs, and range closer to the bZ7’s official debut, which is expected later this year. Toyota’s new flagship EV will join the bZ3X and bZ4X as it fights for its spot in China’s competitive electric vehicle market.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes new e-bikes from British bike maker Boost, Dahon launching an IPO, the NYPD may soon confiscate non UL-certified e-bikes, Honda has a new e-motorcycle coming, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
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