U.S. Treasury Secretary Scott Bessent said the United States likely will not need to resume large-scale combat with Iran, arguing that maximum economic pressure, including sanctions and an existing U.S. naval blockade in the Gulf of Oman, may achieve Washington's aims. His comments followed President Trump's declaration of "economic D-day" and promise of "economic warfare" against Tehran, with further details expected at a Monday news conference. A former adviser to Iran's central bank disputed Trump's claim that the Iranian economy is "collapsing," although the United Arab Emirates' decision to sever trade ties could still cause serious damage. Bessent also promoted an accelerated Treasury debt buyback that could exceed $4 billion and said the U.S. budget deficit has "a very good chance" of having peaked. The monthly deficit reached more than $432 billion in July, its highest level in more than half of a decade, but bond yields rebounded, reversing the effect of Bessent's intervention and helping push the S&P 500 down 0.9%. Futures were little changed early Thursday as investors assessed whether the move was temporary or marked a deeper conflict between the Treasury and bond markets. Japan's headline inflation reached its highest level this year as energy costs rose, complicating the Bank of Japan's rate outlook. Moderna and Merck shares climbed after a cancer vaccine produced promising results in its first-ever late-stage trial, while bitcoin surged 12% over two days amid efforts to advance the Clarity Act, a proposed crypto market-structure bill. Walmart fell 9% after disappointing investors with its outlook. Hyundai CEO José Muñoz said the automaker is considering expanding production at its new Georgia plant, while a chip shortage affecting Chinese smartphone makers in India could give Apple and Samsung more room to gain ground. Separately, Japanese investors bought more than 5 trillion yen of foreign equities and long-term bonds in the two weeks ended Aug. 15, compared with net selling of more than 300 billion yen in the preceding two weeks, suggesting that the yen's rally after last month's joint U.S.-Japan intervention improved the opportunity to add to the carry trade.