U.S. corporations reported "big profits" for the first three months of 2026, with overall earnings per share for S&P 500 companies estimated to be 13% higher than a year earlier, even as tensions between the United States and Iran escalated and a ceasefire agreement neared its expiration.
Nearly nine out of ten companies in the S&P 500 had delivered a larger profit than analysts expected, according to FactSet. This surge in capital accumulation was supported by what several of the biggest U.S. banks described as a resilient U.S. economy, particularly due to "solid spending by U.S. consumers."
Capital Accumulation Amidst Conflict
Despite mixed global markets, tech-related companies in Tokyo saw strong gains, with Tokyo Electron rising 4.4% and SoftBank Group Corp. gaining 5.5%, contributing to the Nikkei 225's 1.1% climb. South Korea’s Kospi jumped 1.8% and Taiwan’s Taiex advanced 1.7%, indicating regional capital flows benefiting from the broader economic climate. On Wall Street, TopBuild, a distributor of insulation and building products, saw its stock jump 19.4% after QXO announced its acquisition in a deal valued at approximately $17 billion.
Oil prices, while slipping 0.4% for Brent crude to $95.10 per barrel and 0.9% for U.S. benchmark crude to $86.66 per barrel on Tuesday, remained elevated. Prices had climbed Monday following the latest rise of tensions between the United States and Iran, though the moves were more modest than earlier in the war. The S&P 500 remained above its level before the war, and Brent crude prices were still below the $119 per barrel peak seen when fears were at their highest, demonstrating capital's resilience and ability to navigate geopolitical instability.
The State's Role in Imperialist Projection
The U.S. Navy's seizure of an Iranian-flagged cargo ship directly preceded renewed doubt over a second round of talks between the United States and Iran. U.S. President Donald Trump attacked critics following this act of state aggression, while the Iranian side made no commitment to further negotiations. A ceasefire agreement between the United States and Iran was scheduled to expire on Tuesday night, early Wednesday Tehran time, marking a critical juncture in the ongoing conflict. Mizuho Bank noted the "precarious balance of truce" as the ceasefire approached its two-week deadline, highlighting the fragility of temporary agreements in imperialist conflicts.
Inter-State Contradictions and Liberal Inadequacy
In the Gulf region, questions have intensified over the continued membership of Gulf Cooperation Council states in the Arab League, following the Israeli-American-Iranian conflict and Iranian attacks on Gulf states and Jordan. Gulf observers, social media users, and individuals close to decision-making circles criticized the Arab League for its perceived failure to take "decisive stances" or issue "direct statements condemning the Iranian attacks."
Sheik Jarrah Jaber Al-Ahmad Al-Sabah, the Kuwaiti foreign minister, stated in his address to the Arab League meeting less than one month ago that "successive experiences have revealed the limited effectiveness of the joint Arab action system within the framework of the Arab League, which necessitates a frank and responsible review." He added that the Arab League "has proven a clear inability to keep pace with rapidly evolving challenges and to play an effective role in safeguarding Arab security." Lieutenant General Dhahi Khalfan Tamim, deputy chief of police and public security in Dubai, posted less than one month ago that "The Gulf States' announcement of their withdrawal from the Arab League is not a true Arab League."
Dr. Khaled Al-Subaie, head of the Khaled Center for Media Studies and Consultations in Saudi Arabia, called less than one month ago for Gulf states to "refuse to attend the meetings of the League of Arab States, not to recognize it and its decisions, and to close its offices in these countries," and to cease paying any amounts into its budget. Qasim Sultan, a Saudi political analyst, told The Media Line that the Arab League's role has been "weakening over time," attributing this to the "weakness of successive secretaries-general" who often retire into the position to "profit, and gain." Abdullah Al-Khamis, a Kuwaiti political journalist, criticized the League for its "weak" reactions during Iranian attacks and its failure to engage in international coordination, despite Gulf states paying the majority of its budget.
These criticisms underscore the inherent limitations of inter-state bodies like the Arab League, which are designed to manage, rather than resolve, the "conflicting interests of its members," as stated by Egyptian political analyst Sarah Azab. Azab rejected claims that Egypt is responsible for the League's weakness, arguing that the problem lies in the "conflicting interests of its members," citing differing responses to Iranian actions. Calls for an "overhaul" or outright dissolution of the Arab League, or for the formation of an alternative "Arab coordination council" with "military unity," represent attempts to restructure the existing apparatus of state power without challenging the underlying capitalist competition that drives these conflicts.