August 25, 2026

Presented By

Hello there. Japanese Prime Minister Sanae Takaichi is facing criticism for seldom leaving her official residence on weekends or holidays. She has responded that it’s actually efficient and reduces the burden on her staff, since she has a WFH setup there. She also mentioned that although she isn’t interacting with the public on those days, she is sharing her space with cockroaches. Or she was, until her staff spread poison—at which point she was “relieved, but somehow also felt a little lonely.” Ok, we have no comment on the politics here, but if she’s befriending the roaches, she probably should get out more.

—Sam Klebanov, Molly Liebergall, Dave Lozo, Matty Merritt, Neal Freyman, Abby Rubenstein

In today’s newsletter, we’ll get into:

A US plan to economically isolate Iran
Bitcoin’s big rally
Viral carrier pigeons

Markets

Nasdaq

25,980.19

-0.77%

S&P

7,652.86

-0.28%

Dow

53,417.16

+0.26%

10-Year

4.704%

-3.0 bps

Bitcoin

$78,930.33

+1.41%

Micron

$910.43

-5.83%

Data is provided by

*Stock data as of market close, cryptocurrency data as of 6:00pm ET. Here's what these numbers mean.

Markets: Stocks closed mixed yesterday as chip stocks…dipped following reports that Nvidia is raising some of its prices. Sandisk and Micron were among the companies that fell.

Markets Sponsored by Frontieras

Nasdaq ticker “$FASF” reserved: Even though Frontieras isn’t public, you can invest privately as they scale across $2.1 trillion in markets. Claim your stake before Thursday’s close date.

Embargomaxxing

US unveils supersized Iran sanctions

Reporters ask U.S. Treasury Secretary Scott Bessent questions after he announced a new set of sanctions against Ira.

Chip Somodevilla/Getty Images

The Trump administration announced trade measures aimed at economically isolating Iran yesterday that it had previously teased as “economic D-Day”…but Treasury Secretary Scott Bessent said it was more of a “warning shot” than a full-scale assault.

Dubbing the plan “Operation Economic Outcast,” Bessent said the US will impose devastating sanctions against countries that enable Iran to illicitly trade in oil, crypto, aviation, gold, technology, and shipping in order to cause the “economic asphyxiation” of the regime:

But Bessent said the US is giving countries time to “remedy their bad behavior” and that it wouldn’t want to “blow up the global financial system” with immediate action.
He also announced immediate sanctions against 60 entities, individuals, and vessels the US says are enabling the Iranian regime’s “recklessness.”

Bessent noted that the UAE, Iran’s biggest import partner, already cut off all trade ties with Iran last week and said President Trump was asking other countries to do the same.

China-shaped elephant in the room

When a reporter asked Bessent about enforcement against China—which purchased 80% of Iran’s oil before the war—Bessent said no one would be exempt. But analysts say it’s unclear if the Trump administration will risk antagonizing the country with sanctions amid a tenuous trade truce and before its leader Xi Jinping’s visit to the US next month.

However, Iran’s oil exports to China have already reportedly fallen since the US began blockading the Strait of Hormuz.

Will it work?

The Trump administration is banking that economic punches will force Iran to lift its chokehold on the Strait of Hormuz, which has pushed up energy prices ahead of the US’ midterm election.

But while Iran’s currency fell to a record low against the dollar ahead of Bessent’s announcement, worldwide markets reacted with a shrug. Some experts say that while additional sanctions might deepen economic pain for ordinary Iranians, after years of sanctions, the US doesn’t have much economic ammo left in its arsenal that would force Iran’s leadership to acquiesce.

Iran has vowed to retaliate, possibly militarily.

Diplomacy is also ongoing: Oman is continuing negotiations with Iran about easing navigation through the Strait of Hormuz, and Pakistan’s army chief arrived in Tehran yesterday to urge renewed peace talks with the US.—SK

Sponsored By Frontieras

America’s sitting on a “black” gold mine

Black gold used to refer to oil. Frontieras uses an updated interpretation. The US has over 20% of the world’s recoverable coal reserves, but burning it requires significant costs to mitigate emissions.

So when Frontieras North America found a way to cleanly harness coal without burning it—turning it into outputs like diesel, jet fuel, fertilizer, and more—investors noticed.

Their patented process emits zero carbon, helping maximize the value of this abundant resource.

They’ve broken ground on an $850m facility. Every fuel it will produce has been sold for the next decade. They even reserved the Nasdaq ticker $FASF.

One institutional investor committed $150m. 17,000+ everyday people totaled $48m+ more. Invest before the opportunity closes Thursday night.

World

Tour de headlines

A car hauler heads to cross the Ambassador Bridge between Windsor, Canada and Detroit, Michigan.

Bill Pugliano/Getty Images

🇺🇸 🇨🇦 Trump threatens 50% tariffs on Canadian autos as trade war escalates. With the US and Canada at odds after failing to reach a deal to avert new US tariffs on $20 billion worth of Canadian goods last week, President Trump upped the ante yesterday by threatening to raise tariffs on Canadian autos. He said on Truth Social that the tariff would be increased to 50% on “all Cars, Trucks, both large and small, Automotive Parts, and Steel” as of January 1. Canada has already vowed to retaliate dollar for dollar on Trump’s recent tariffs. Yesterday, Ontario Premier Doug Ford told the AP that if the trade dispute gets worse he would cut off US access to his province’s electricity and critical minerals.

🗞️ Washington Post ordered to rehire opinion writer fired over Charlie Kirk posts. An arbitrator ordered the newspaper to reinstate Karen Attiah, who was terminated over Bluesky posts she made in the wake of Charlie Kirk’s murder that the paper considered “gross misconduct.” Attiah challenged her dismissal, and the arbitrator ultimately determined that firing her was “absolutely disproportional” and ordered the Post to give her full back pay and benefits. Attiah, who was the only Black female opinion writer at WaPo, called her win “victory for journalists everywhere.” Meanwhile, the Post told news outlets that it respects the arbitration process.

🌡️ Ocean temperatures hit their hottest on record. If you thought you’ve been hot this summer, the fish are probably even hotter, as the world’s ocean temperatures reached 21.1 degrees Celsius (70 degrees Fahrenheit) last Friday and Saturday. With a brewing El Niño and climate change pushing the mercury up, the data from the European climate service Copernicus is the highest reading ever recorded, surpassing a record set in March 2024. One University of Ottawa professor speculated on X that it might be the warmest “for the entire Holocene period, and possibly even as far back as the last Interglacial 125,000 years ago.”—AR

The crypto also rises

Why is bitcoin rising again?

VCG/Getty Images

After laying dormant for the last year, your crypto cousin is probably popping off in the family group chat right now. Bitcoin ended yesterday near $80,000 after its biggest three-day rally since March 2023. It has jumped over 22% in the last seven days, following the US Treasury Department’s announcement that it would buy back more bonds.

What’s going on? Since hitting an all-time high of $126,000 last October, bitcoin has steadily fallen as investors rotated into the AI trade and enthusiasm for the cryptocurrency faded.

But then Treasury Secretary Scott Bessent attempted to boost the flailing bond market last week. That…didn’t really work—but it did help to revive bitcoin:

The move spooked investors. Even billionaire hedge fund manager Ray Dalio urged folks to buy bitcoin and gold to hedge their investments from growing US debt.
Some investors are calling what’s happening the “debasement trade,” or the trend of ditching currency (like the weakening dollar) and putting money in “safer” assets like gold. Bitcoin is still pretty volatile, but it’s more insulated from monetary policy.

There’s a divide on whether the bump will stick. President Trump hosted a crypto summit last week and urged Congress to pass the Clarity Act, which creates a legal framework for regulation. The bill, which the Senate could vote on next month, has mostly stalled, with some lawmakers arguing it needs stronger language to prevent politicians from profiting off their own crypto.—MM

Reader Poll

Is the bitcoin rally here to stay?

Yes, HODL.
No, it’s losing steam.
Maybe, let’s see how the economy (and new crypto laws) shake out.

Today in history

All of the following events happened on this date, August 25th, in history. Can you put them in chronological order, from earliest to most recent?

The first mass-market instant ramen is developed
The Wizard of Oz opens in US theaters
Sean Connery is born
Matthew Webb becomes the first known person to successfully swim across the English Channel

Share the Brew

Share the Brew, watch your referral count climb, and unlock brag-worthy swag.

Your friends get smarter. You get rewarded. Win-win.

Your referral count: 0

Click to Share

Or copy & paste your referral link to others:
morningbrew.com/r/?kid=71df84e8

Answer

Matthew Webb becomes the first known person to successfully swim across the English Channel (1875)
Sean Connery is born (1930)
Wizard of Oz opens (1939)
Mass-market ramen developed (1958)

Word of the Day

Today’s Word of the Day is: asphyxiation, meaning “deprivation of oxygen that can result in unconsciousness and often death.” Thanks to Jessica from Minneapolis for a suggestion that took our breath away. Submit another Word of the Day here.

✢ A Note From Frontieras

This is a paid advertisement for Frontieras Regulation A offering. Please read the offering circular at https://invest.frontieras.com/.

Reservation of the ticker symbol is not a guarantee that we will be listed on the Nasdaq. Listing on the Nasdaq is subject to approvals.

Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC.

Written by Abigail Rubenstein, Sam Klebanov, Matty Merritt, Molly Liebergall, and Neal Freyman

Was this email forwarded to you? Sign up here.

Get smarter in just 5 minutes

Tech & AI News: Tech Brew
Markets News: Brew Markets
Real Estate News: The Playbook
Money & Career: Bossy

Take The Brew to work

Interested in podcasts?

Check out ours here.

ADVERTISE//CAREERS//SHOP//FAQ

Update your email preferences or unsubscribe here.
View our privacy policy here.

Copyright © 2026 Morning Brew Inc. All rights reserved.
22 W 19th St, 4th Floor, New York, NY 10011

☕️ Supersized sanctions