Building on our investment theme that the US military is racing to harden its bases with counter-drone systems capable of defeating Group 1-3 drones, and potentially Group 4 threats, Bloomberg reported late in Friday's US cash session that the Army plans to purchase at least $400 million of AeroVironment's counter-drone laser systems, citing a person familiar with the deal.
The source told the outlet that the deal would provide the Army with dozens of LOCUST systems, which use artificial intelligence to track and identify small and medium-sized drones before human operators engage them with a high-energy laser.
AeroVironment's LOCUST system was originally developed by BlueHalo, which the defense firm acquired for about $4.1 billion in 2025. The latest LOCUST X3 uses a scalable 20-to-35-plus-kilowatt laser, AI-enabled detection and tracking software, and precision beam control to defeat Group 1-3 drones.
LOCUST can be deployed at fixed installations, including military bases, or mounted on tactical vehicles such as the Infantry Squad Vehicle and Joint Light Tactical Vehicle.
The economics of laser weapons are almost certainly a major focus among military planners. At roughly $5 per shot, compared with a $100,000 rocket or a million-dollar interceptor missile, lasers offer one of the most cost-effective ways to defeat Group 1-3 drones.
Drone Groupings (via Piper Sandler)
The report sent AeroVironment's stock soaring nearly 8% during the final hour of Friday's US cash session. The shares have been cut in half since late 2025 but recently found support near the $140 level.
More broadly, the Goldman Sachs US Defense equity basket (GSXUDFNS) is also reversing higher after a five-month slump.
How to profit:
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Tyler Durden Sat, 08/08/2026 - 08:45* * *
US to Lift Blockade once Oman Deal AnnouncedImportantly, Reuters reports late in the day Friday that Washington plans to lift the naval blockade on Iranian ports once the Oman deal is finalized and announced, which Bessent earlier said could be as soon as 'today or tomorrow'. If the US were to back down militarily in the Gulf, it would cede effective control of the vital waterway to the Iranians. Per Reuters:
Progress is being made between Iran and Oman on the Strait of Hormuz and "we expect a deal soon," a U.S. official told Reuters on Friday.
Once a deal is announced to restore commercial shipping without impediments, the United States will lift its blockade of Iranian ports, the official said.
"There is progress between Oman and Iran on the Strait, and we expect a deal soon," the official said. "Once the deal is announced to restore commercial shipping without impediments, the United States will lift the blockade of Iranian ports."
Iran's FM is declaring 'victory' saying that in the "face of the word's most expensive military" his country's forces demonstrated their might and capability...
Iran's Powerful Armed Forces have shown their readiness, capability, and might in face of the world's most expensive military.
When Muslims stand together, we can face every challenge by malicious outsiders head-on.
Time to rely only on ourselves and embrace true brotherhood.
Iran has announced that under the 'finalized' Oman-Iran scheme and 'deal' for management of the Hormuz Strait that "enemy countries" (read: US and Israel) may only transit the waterway after lifting sanctions and paying compensation for the war.
While this was not issued by the Foreign Ministry or top leadership per se, it does appear to represent Tehran's overall position, after on Thursday it first declared that US and Israeli-linked ships will not be allowed Hormuz transit under the Oman plan:
Tehran Mayor says Passing through the Strait of Hormuz is subject to the lifting of sanctions and the payment of compensation:
"The countries that have attacked Iran will not have the right to use this strait until compensation is paid. Governments that freeze Iranian assets or continue to impose sanctions and threaten the nation will be deprived of this strategic boon."
While Treasury Secretary Scott Bessent has appeared to back the Omani plan to reopen the strait, the US State Department has also newly warned on Friday that more 'decisive action' will be taken to cut off sources of Iran's funding. Bessent has newly stated that...
I think shortly, maybe even today, tomorrow, we are going to see an agreement, a 30- to 60-day ceasefire, and the Strait will be open.
This is somewhat surprising, but as we described below, it seems a final Washington exit is indeed in motion, even if it leaves Iran with greater leverage in the region. Like Trump's latest comments Thursday night, Bessent seems in 'mission accomplished' mode with this newly published interview...
Bessent on Iran:
We have them by the throat, and they've got 150–180% food inflation, not able to pay the troops.
I think shortly, maybe even today, tomorrow, we are going to see an agreement, a 30- to 60-day ceasefire, and the Strait will be open.
Energy prices should come… pic.twitter.com/C1vGuQUIRM
This really does sound like 'it's finally over' talk...
Bessent on the Strait of Hormuz:
The strait is never going back to the way it was because the Iranians have used, or tried to use it, as a choke point.
What we are going to see over the next two years, the strait is going to become irrelevant.
It is going to become just… pic.twitter.com/LP8evMbeJP
President Trump's latest Iran comments came Thursday night, after a prior day wherein Iran and Oman unveiled their 'finalized' Hormuz management scheme, which most notably includes a ban on all US and Israeli vessels in the energy transit waterway.
As we reviewed earlier, the White House has appeared to genuinely be searching for an exit strategy, but this stipulation alone may be too hard a pill for Trump to swallow, if accurate - given that it obviously leaves Iran in de facto control of the strait. Many pundits have pointed out it even leaves Iran with more leverage and power in the region than before the launch of Operation Epic Fury.
But this is why Trump's comments to reporters in the Oval Office Thursday evening are surprising, given that instead of reacting angrily and outright condemning the Iran-Oman plan, his reaction was somewhat muted and meager. Doves who see this war as disastrous and hope for quick exit will welcome the development.
via Reuters Trump: Going to End Pretty Soon"I think it's going to end pretty soon. I don’t think they can go much longer," the president said, while leaving his meaning ambiguous. Asserting once again that the US is involved in negotiations with Tehran (something the Iranians have been vehemently denying all along), Trump added that "I think we’re doing fine."
The only thing Trump truly got angry about Thursday was related to the domestic side of the conflict, after US major media published several reports saying the Pentagon is perilously low on missiles and interceptors, which have been drained after nearly six months of war. He blasted 'treasonous' 'fake reporting' and even threatened to jail 'leakers' over the reports (the inherent contradiction says a lot here).
But again, Trump's penchant for raging against 'dishonest' and 'evil' Iranian leaders has been curiously absent over the last several days as the US bombs have fallen silent - after he called off planned 'harder' strikes over the weekend (or the last big TACO moment, among many prior).
This relative quiet at the White House comes even after Iran's parliament speaker Mohammad Bagher Ghalibaf openly mocked the United States and Trump's theatrics and constant changes of course on X. He wrote Thursday:
"Massive attack coming… wait, never mind, they want to negotiate." That’s theater diplomacy on loop. Using bullying + broken promises + fake news as leverage is a failed strategy. Acknowledge the facts and fulfill your commitments. We don’t need more theater.
All of this change in Washington tone and posture suggests this could finally be the moment for a true offramp, as the US faces a 'go big or get out' realization, and as the prospect of slogging through months more of a developing quagmire becomes too politically and economically costly. This is potentially the declare 'victory' and get out moment. As former Congressman Ron Paul has put it: Just Walk Away!
Trump: I think the war with Iran will end pretty soon. I don’t think they can go much longer.
Q: Have you reached a deal to reopen the strait of Hormuz?
Trump: It’s sort of open right now. pic.twitter.com/J3lcPyuVwM
This is further evidenced in Trump's sudden realism, expressed late Thursday in the same Oval Office presser. When asked about the status of the Strait of Hormuz, he admitted that "it's easy for them to send a drone or two, drop a mine, or deliver a close range missile somewhere along, or in, this Waterway, no matter how badly defeated they are."
He further acknowledged:
"People don’t want" to risk ships worth billions of dollars and expose them to the possibility of accidentally hitting a mine in the Strait of Hormuz, he conceded. Trump also claimed Thursday that Hormuz is "sort of open right now," although fewer than 10 ships per day transited from Sunday through Tuesday, according to Kpler data.
Of course, the US and Iran have been involved in several of these 'pauses' and cooling off periods before, which were later revealed to be the 'calm before the storm'. Tehran has since wised up and pointed out that the Pentagon used these interim periods of no fighting to just rearm, reposition, and ramp up military supply flights to the region.
Joe Kent: 'Good First Step' Toward an ExitJoe Kent, a top national security official who resigned in protest of the Iran war upon the very start of the operation, is welcoming these signs that Trump is finally seeking to extricate the US from the conflict at all costs:
Trump is messaging that he won the war— this is a good first step in extricating us from what would otherwise be a catastrophic mistake. The reality is, the best “deal” we can make with Iran at this point that works in our favor is to just leave—it’s the only case in which POTUS then holds the cards.
He needs to “close the deal” now, before the Iranians force him back into a shooting war. We simply can’t assume that Iran will wait idly for us to make the next move. Alarmingly, it seems we are failing to account for just how aggressively killing the Ayatollah & bombing the girls’ school has radicalized Iranian leadership & its people—it’s very likely that Iran will feel compelled to drag us back into the war in order to force the U.S. to retreat, bloodied, both for the sake of its national honor & for deterrence.
Trump can end this by pulling our troops & ships out of the region now—deprive Iran of targets to hit and the leverage they need to escalate. Trump says we’ve won, therefore we can bring them home.
So either Trump is indeed preparing to go bigger, or this is - belatedly - the final 'cut and run' moment that probably the majority of the American public has been hoping for.
Another sign, via his Truth Social latest, that Trump could finally be willing to say 'mission accomplished' and get out, while letting the regional and oil transit 'chips fall':
Iran Hasn't BlinkedThe deadly alternative to simply declaring an exit is an eventual introduction of ground troops and full-on regime change. Thankfully, Trump officials have continued to by and large condemn this as a legitimate scenario - given it would surely once again put US forces in a new 'forever war' that would last years or even decades.
Read our: Visualizing Iran's Vast Size & Why Any Ground Invasion Means Years-Long Quagmire
But in the meantime, the Iranians do smell weakness and blood in the water. Just before US markets closed Thursday, Tehran announced its forces attacked and struck 'hostile targets' at Qeshm island, near the entrance to the Strait of Hormuz.
Iran is remaining defiant, and even sees itself in the driver's seat with its ability to wage asymmetric warfare against a much larger US foe which is confused on what to do next. This was also on display with Iranian President Masoud Pezeshkian having asserted this week in an interview, "Our enemies expected the country to collapse due to the pressures they have exerted." He added that these pressures have "reached their maximum".
Tyler Durden Sat, 08/08/2026 - 08:35A German teacher has described a secondary school in the Rhineland where violence, drug dealing, and severe behavioral problems have become part of everyday life, including one case in which a 15-year-old girl allegedly prostituted herself in the school toilets for drugs and money.
Speaking anonymously to Bild, special education teacher “Carola S.” said around 75 percent of students at her school have a migrant background, with many having arrived from Syria, Iraq, Afghanistan or Ukraine.
“It’s all blowing up in our faces,” she said.
“Every day is a challenge. Fights, shouting — this happens in the classroom and on the schoolyard,” she told the German tabloid.
“We are happy if we can teach for a few minutes at a time. Sometimes the police have to come several times a week.”
She said drugs are also dealt on school grounds and recalled an extreme case involving a 15-year-old pupil.
“A particularly egregious case involved a 15-year-old student who prostituted herself in the school toilets for drugs and money. She became pregnant and left the school.”
Carola said many newly arrived pupils initially speak little German and do not receive grades for their first two years. “After that, the students are graded regularly, but for many, their performance is still unsatisfactory. Some don’t return at all,” she said. “This year, almost 40 percent failed to obtain their secondary school leaving certificate.”
She also described clashes over cultural attitudes, including a Syrian father who objected to his son being taught by a woman.
“It is very difficult for us to reach these parents,” she said.
Carola said she was punched in the face just three weeks ago while attempting to intervene in a fight between pupils.
“I got caught in a fight between students and ended up with a split lip because a student punched me in the face during the scuffle,” she said.
She reported the incident to police, but said the case was subsequently closed.
“This is not an isolated incident. Some colleagues are openly insulted, threatened, or ambushed after school, and this isn’t even reported,” she added. “Many talk about not being able to do the job until retirement. We have a high rate of sick leave.”
The German Teachers’ Association has long accused politicians of failing to respond quickly enough. Its chairman, Stefan Düll, said back in 2024 that preventive measures, social work, school psychology and other support systems had failed to expand in line with demand.
“For too long, politicians have primarily acted reactively,” Düll said. He warned that Germany’s education system is being overwhelmed by immigration, arguing that large numbers of children entering schools with little or no German were placing an unsustainable burden on teachers.
“Due to immigration in 2015, the war in Ukraine and other immigration, new people are constantly coming into the system, but the system is slow to keep up because it is moving too fast,” he said at the time.
“The higher the percentage of immigrants, the more difficult it is to motivate the class.”
Recent incidents have added to concerns over conditions in German schools. In May, a 20-year-old Afghan was remanded in custody after allegedly sexually assaulting an 11-year-old girl inside a school restroom in Koblenz while a 19-year-old suspected accomplice allegedly held the child down.
That same month, authorities announced a regular police presence at the Karolina-Burger high school in Ludwigshafen following 118 criminal complaints, around 100 fire department call-outs and a succession of knife attacks, assaults and threats.
Teachers there had reported death threats including “I’ll shoot you all,” pupils attacking one another, and extensive vandalism. In one of the most serious cases, prosecutors said a 16-year-old girl attacked a teacher with a knife “with the intention of killing her.”
Concerns have also been raised over religious intimidation. In April, Berlin youth worker Wolfgang Büscher warned that some schools were producing what he described as “mini-Islamists,” with pupils allegedly pressuring Muslim and non-Muslim classmates to conform to strict religious practices.
Back in the Rhineland, Carola said teachers increasingly feel abandoned by authorities.
“No one from the school board ever shows up. They’ve left us to fend for ourselves,” she said.
“And then the politicians want to close the secondary schools. Where are the children supposed to go then?”
Tyler Durden Sat, 08/08/2026 - 08:10