Originally published at: https://peakprosperity.com/oil-recovery-expected-to-drag-newsom-under-doj-investigation-and-retail-goes-all-in-on-spacex/
Energy
Analysts suggest it’ll be a slow recovery for oil and gas even if the Strait of Hormuz reopens. Wood Mackenzie estimated that more than 10 million barrels per day of Middle Eastern oil and gas production shut in over the past three and a half months could return to 70% of prior levels within three months and 90% within six months after the reopening of the Strait of Hormuz. The firm also said Saudi Arabia and the UAE fields would resume output faster than Iraq’s southern fields. The LNG carrier Disha transited the strait in mid-June carrying Qatari LNG loaded in March. MarineTraffic recorded 29 verified crossings between June 10 and 14, with 62% classified as dark or unknown routes. Several shipping companies said they would delay resuming transits until security conditions were confirmed. Shipping executives have stated they will resume only after safety is fully confirmed.
In the renewables space, the 3,650-megawatt SunZia Wind Project in New Mexico is scheduled to begin operations this month. Developer Pattern Energy estimated $20.5 billion in lifetime economic benefits and power for three million customers through a 550-mile transmission line. A July 2025 executive order ended federal subsidies for wind and solar projects, citing reliance on Chinese supply chains. Solar generation exceeded coal generation in the US electricity mix for the first time in May, at 12.8% versus 12.2%. Critics have highlighted broader administration efforts to curtail wind power incentives.
US Politics
The Department of Justice confirmed an investigation into the finances of California Governor Gavin Newsom and his wife, Jennifer Siebel Newsom. Newsom described the probe as a political effort to affect a potential 2028 presidential campaign. Newsom’s PumpJack wine business, developed with investor Gordon Getty, includes wineries reported to be valued at $400 million and has been held in a blind trust since 2019. Siebel Newsom has received approximately $3 million since 2015 through her Representation Project nonprofit and related film company, with more than $800,000 in donations from individuals who had business before the governor. Newsom has requested $4.8 million in behested payments since 2020 and was fined $31,500 for late disclosures.
A study published in Political Behavior found that mental illness is reported as a political identity most often among liberals and Gen Z Americans, with roughly half of participants who reported mental illness describing the identity as important to them. The study cited earlier research showing conservatives report higher levels of happiness, religiosity, and personal agency than liberals. An Institute for Family Studies report stated that 37% of conservative women described themselves as completely satisfied with life, compared with 12% of liberal women, and identified marriage and church attendance as explanatory factors. Conservatives were also reported as less likely than liberals to classify anxiety or depression as conditions requiring clinical treatment.
Economy
SpaceX shares rose in after-hours trading to approximately $230, reaching a $3 trillion valuation and exceeding Microsoft’s market capitalization. Vanda Track reported that SpaceX accounted for about 73% of single-stock retail net buying. Analyst Gordon Johnson of GLJ Research projected that 2026 US IPO proceeds would reach roughly $200 billion, exceeding the combined totals from 1999 and 2000. He cited planned offerings by Alphabet, Meta, Oracle, and Super Micro, along with anticipated issuances from SpaceX, OpenAI, and Anthropic, and estimated $100 billion in monthly stock supply against $39 billion in monthly US personal savings. Johnson argued that large offerings would reduce rather than increase available capital. Skeptical observers have questioned the sustainability of the reported valuation and noted that SpaceX remains privately held.
Meanwhile, ATTOM Data reported 40,355 foreclosure filings in May, down 5% from the prior month but up 14% from a year earlier. First-quarter 2026 filings were 26% higher than in the first quarter of 2025, and lender repossessions rose 6% year over year. Florida recorded the highest state foreclosure rate, and Cleveland led among major metropolitan areas. ATTOM’s chief executive attributed the trend to higher mortgage rates and ownership costs. The firm Nolo projected further increases through year-end due to rising insurance and HOA fees. Some observers noted that absolute foreclosure rates remain low compared to historical peaks.
Artificial Intelligence
A federal class-action lawsuit filed in the Northern District of California alleges that Anthropic overstated usage limits for its $100 and $200 Claude subscription tiers. Plaintiff Karl Kahn stated he used 15% of his weekly allowance during one five-hour session. The complaint follows reports of variable rate limits, including one case of charges reaching $500 million in a month, and a Trump administration order limiting foreign access to certain Anthropic models after an alleged breach involving Amazon. Anthropic has not publicly commented on the lawsuit.
Health
Health Secretary Robert F. Kennedy Jr. asked the First Circuit Court of Appeals to expedite review of a March ruling that halted changes to the CDC’s Advisory Committee on Immunization Practices. Government lawyers argued that the district court order prevented the committee from issuing recommendations before the fall flu season or implementing a June 3 executive order on the childhood vaccine schedule. The American Academy of Pediatrics opposed the request for expedited review.
In other news, a study published in Nature Metabolism reported that glucosamine use was associated with a 25% faster progression from mild cognitive impairment to Alzheimer’s disease and a 25% higher mortality risk among dementia patients, based on 12 years of University of Florida electronic health records. The authors noted that the association was observed only in individuals with neurodegenerative conditions.
Sources
Study: Mental Illness Emerges as Distinctly Liberal Political Identity
Mental illness has begun functioning as its own political identity, and that identity clusters most tightly on the left.
SpaceX Erupts After Hours to $3T Market Cap, Surpassing Microsoft in Gamma Squeeze
The squeeze is accelerating and SPCX hit just shy of $230, or $3 trillion in market cap, surpassing MSFT in value.
Anthropic Sued for Misleading Claims on $200 ’20x’ AI Plan Limits
The actual usage provided by the Max 5x and Max 20x plans is far below the advertised amount of usage,
RFK Jr. Seeks Expedited Appeal as Court Order Stalls Vaccine Panel
The court’s order has left ACIP unable to carry out its core responsibilities,
US Foreclosure Filings Rise 14% Year Over Year Amid Housing Pressures
“Foreclosure starts and completed foreclosures both increased compared to last year, reflecting ongoing pressure on some homeowners as elevated mortgage rates, rising ownership costs, and affordability constraints persist”
Largest US Wind Farm Launches as Trump Curbs Renewables
The Trump administration has actively worked to remove incentives for wind power projects, citing concerns about energy security.
U.S.-Iran Deal: Slow Road to Oil Recovery
The U.S.-Iran deal and the potentially imminent reopening of the Strait of Hormuz do not mean that oil and gas trade will quickly return to its previous levels.
First LNG Tanker Clears Hormuz After US-Iran Deal as Most Operators Stay Wary
While tanker owners and operators remain cautious about rushing to send vessels to the area or having the ones inside the Persian Gulf move quickly toward Hormuz, one LNG tanker passed through the Strait today, carrying LNG to India.
Record Equity Flood Looms as Mega-IPOs Threaten Market Liquidity
You cannot soak up ~$100B/month of stock with ~$39B/month of cash. The math doesn’t math.
DOJ Investigates Newsom Family Finances Amid 2028 Speculation
The U.S. Department of Justice is investigating the finances of Gov. Gavin Newsom and his wife, First Partner Jennifer Siebel Newsom, officials confirmed Monday.
Glucosamine Tied to Faster Alzheimer’s Progression in Vulnerable Brains
The popular joint supplement glucosamine is linked to a 25% faster progression from mild cognitive impairment to Alzheimer’s disease.
In addition to sources submitted by community members, the following were also used in the creation of this report: @sarahshine007, @Seixas_Capital, ATTOM, @JustMe08838341, @grok, RBN Energy, Semafor, Reuters, Bloomberg, Mitsui OSK Lines, WSJ.
