🔍 THE WATCH · WAR DAY 35 · GOOD FRIDAY · F-15E CONFIRMED DOWN OVER IRAN · 1 CREW RESCUED · 1 MISSING · A-10 ALSO LOST · ARMY CHIEF FIRED · UN VOTE SATURDAY · SEARCH & RESCUE ONGOING · 3 DAYS TO APRIL 6
FRIDAY · APRIL 3, 2026 · AFTERNOON WAR DAY 35 · GOOD FRIDAY · MARKETS CLOSED
THE LIQUIDITY POST
Global Macro · Institutional Flows · Financial Intelligence
🔍 The Watch Issue 18B
F-15E DOWN · RESCUE ONGOING ARMY CHIEF FIRED · APRIL 6
THE WATCH · APRIL 3, 2026 · AFTERNOON UPDATE · WAR DAY 35 · Markets Closed · Sources: CNN, Axios, Washington Post, Breaking Defense, The War Zone, CBS News, The Intercept, Stars & Stripes, Benzinga, France 24
F-15E CONFIRMED DOWN  US officials confirm F-15E Strike Eagle shot down over Iran · Two-person crew · 1 rescued, 1 missing A-10 WARTHOG  Second US aircraft lost near Strait of Hormuz · Pilot safely rescued · Iran claims credit SAR UNDER FIRE  Black Hawk helicopter hit by ground fire during rescue mission · Returned to base with injured crew ARMY CHIEF FIRED  Hegseth fires Army Chief of Staff General Randy George · Demanded meeting, was denied, then dismissed TRUMP CONTRADICTED  Wednesday: “They have no anti-aircraft equipment” · Friday: F-15E and A-10 both downed UN VOTE SATURDAY  Bahrain Hormuz resolution delayed from Friday to Saturday · Russia/China signaling no veto on watered-down text IRAN HUNTING CREW  Iran offering reward for capture of downed pilots · Civilians mobilized to search area TRUMP BRIEFED  WH Press Secretary Leavitt confirms Trump briefed on F-15E shootdown TRUMP: NO IMPACT ON TALKS  Downing of jet will not affect negotiations over ending the conflict ARMY CHIEF FIRED  General George demanded meeting with Hegseth over personnel management · Hegseth denied, then fired him FY2027 DEFENSE BUDGET  White House seeking $1.5 trillion · Highest in modern US history     F-15E DOWN · 1 CREW MISSING A-10 ALSO LOST ARMY CHIEF FIRED UN VOTE SATURDAY 3 DAYS TO APRIL 6     F-15E CONFIRMED DOWN  US officials confirm F-15E Strike Eagle shot down over Iran · Two-person crew · 1 rescued, 1 missing A-10 WARTHOG  Second US aircraft lost near Strait of Hormuz · Pilot safely rescued · Iran claims credit SAR UNDER FIRE  Black Hawk helicopter hit by ground fire during rescue mission · Returned to base with injured crew ARMY CHIEF FIRED  Hegseth fires Army Chief of Staff General Randy George · Demanded meeting, was denied, then dismissed TRUMP CONTRADICTED  Wednesday: “They have no anti-aircraft equipment” · Friday: F-15E and A-10 both downed UN VOTE SATURDAY  Bahrain Hormuz resolution delayed from Friday to Saturday · Russia/China signaling no veto on watered-down text IRAN HUNTING CREW  Iran offering reward for capture of downed pilots · Civilians mobilized to search area
2
US Aircraft Lost Today · F-15E Confirmed Down Over Iran · A-10 Lost Near Hormuz · Both Crews Had 1 Rescued
1
Crew Member Still Missing · F-15E Two-Person Crew · Search & Rescue Ongoing · Iran Hunting Same Pilot
Fired
Army Chief of Staff General Randy George · Dismissed by Hegseth · Demanded Meeting · Was Denied · Then Fired
3 Days
To April 6 Deadline · No Extension · No Deal · UN Hormuz Vote Now Saturday · Rescue Still Active
🔍 Since This Morning’s Brief — What Changed
F-15E Confirmed
This morning we reported Iran’s claim as unverified. It is now confirmed by US officials. An F-15E Strike Eagle was shot down over Iran. One of its two crew members has been rescued and is receiving medical treatment. The search for the second crew member is ongoing. Iran is offering a reward for anyone who captures the pilot alive.
Second Aircraft
A second US aircraft — an A-10 Warthog (Thunderbolt II) — was lost near the Strait of Hormuz in a separate incident on the same day. The pilot was safely rescued. Iran claims credit. This is the first confirmed loss of any US aircraft over Iran since Operation Epic Fury began.
SAR Under Fire
A US UH-60 Black Hawk helicopter participating in the search and rescue mission for the F-15E crew was hit by ground fire. The helicopter was able to keep flying and returned to base with its crew, who were injured. Iran's Tasnim agency separately claimed to have targeted a rescue helicopter.
Army Chief Fired
Defense Secretary Pete Hegseth has fired Army Chief of Staff General Randy George. George had demanded a meeting with Hegseth over personnel management concerns and was denied. Hegseth then called George and fired him — while simultaneously leaking the news to the media. The firing during an active war operation is without modern precedent.
Trump Briefed
White House Press Secretary Karoline Leavitt confirmed Trump has been briefed on the F-15E shootdown. Trump said separately the downing would not affect negotiations over ending the conflict.
Trump Contradicted
In his Wednesday address, Trump stated: “They have no anti-aircraft equipment. Their radar is 100% annihilated. We are unstoppable as a military force.” Two US aircraft were shot down by Iranian air defences on Friday. The contradiction is now a political and strategic liability.
UN Vote Saturday
Confirmed: the Bahrain Hormuz defensive force resolution vote is Saturday. Russia and China signaling they will not veto the watered-down text. France has moved to support. The vote is now the most important single diplomatic event before April 6.
🔍 The Watch — War Day 35 Afternoon
Confirmed — April 3, 2026 · Afternoon

Two US Aircraft Down. One Crew Member Missing in Iran. The Army’s Top General Fired During a Combat Rescue Operation. This Morning’s Brief Is Already Outdated.

The morning brief's F-35 claim, which we flagged as unverified, has resolved into something both more accurate and more serious: a confirmed F-15E Strike Eagle shot down over Iran, a second aircraft lost (an A-10 Warthog), a search and rescue helicopter hit by ground fire, one crew member still missing inside Iranian territory, and Iran actively offering rewards for civilians to help capture the surviving pilot.

This is the first confirmed loss of US combat aircraft over Iran since Operation Epic Fury began 35 days ago. It happened the day after Trump told the American public on national television: “They have no anti-aircraft equipment. Their radar is 100% annihilated. We are unstoppable as a military force.” The contradiction between that statement and today's confirmed losses is now the dominant political story of the war.

“They have no anti-aircraft equipment. Their radar is 100% annihilated. We are unstoppable as a military force.” — Trump, April 1, 2026. Two US aircraft were shot down by Iranian air defences on April 3, 2026.

Simultaneously, Defense Secretary Pete Hegseth fired Army Chief of Staff General Randy George — the top officer in the US Army — while a combat search and rescue operation was actively underway in southwestern Iran. George had requested a meeting with Hegseth over personnel management concerns. Hegseth denied the meeting. Then he fired George and leaked it to the media at the same time. Firing the Army’s top general during an active combat rescue operation is, to put it plainly, without precedent in modern US military history.

Markets cannot react to any of this until Sunday night at 6PM ET. The Easter gap was already the most consequential 72-hour market closure of the war. It just got materially worse.

F-15E · Confirmed Down

What We Know — Status as of This Afternoon

Aircraft
F-15E Strike Eagle · Two-person crew (pilot + WSO)
Down
Location
Over Iran · Southwestern region · Geolocated via social media
Iran
Crew Member 1
Located and rescued by US special forces · Alive · Receiving medical treatment
Rescued
Crew Member 2
Still missing · Search ongoing · Iran offering reward for capture
Missing
SAR Helicopter
UH-60 Black Hawk hit by ground fire · Returned to base · Crew injured
Hit
A-10 Warthog
Separate incident near Hormuz · Pilot safely rescued
Pilot Safe
Iran claim
Originally claimed F-35 · Wreckage shows F-15E tail markings
Confirmed F-15E
Breaking · Command Shakeup

Hegseth Fires Army Chief of Staff During Active Combat SAR Operation

General Randy George, appointed Army Chief of Staff in 2023, was fired by Defense Secretary Pete Hegseth on Friday afternoon. George had demanded a meeting with Hegseth over personnel management — specifically Hegseth’s additional screening process for officer selections. Hegseth denied the meeting and fired George, leaking the news to media simultaneously. George is described by sources as a West Point graduate and Iraq/Afghanistan veteran. The firing comes as US special forces are actively conducting combat search and rescue operations in southwestern Iran for the missing F-15E crew member.


⚠️ The Contradiction — What This Means Strategically
Air Superiority · The Claim vs. the Reality

Trump Said Iran Has No Air Defences. Iran Just Shot Down Two US Aircraft and Hit a Rescue Helicopter. Both Things Are Now on the Record.

The strategic significance of today’s confirmed aircraft losses extends far beyond the tactical. Trump’s April 1 speech asserted total US air dominance over Iran — a claim that CENTCOM Commander Admiral Brad Cooper echoed on Thursday, saying “we don’t see their aircraft flying, and their air and missile defense systems have largely been destroyed.” Friday’s events directly and publicly contradict both assertions.

The F-15E was downed by what Iran describes as a “new air defence system” operated by the IRGC Aerospace Force. Breaking Defense notes that this would be the first confirmed US aircraft loss to hostile fire in the entire Operation Epic Fury campaign. Previous losses — three F-15Es over Kuwait in a friendly fire incident on March 1, a KC-135 tanker accident over Iraq on March 12 — were not the result of Iranian action. Today is different in kind, not just degree.

Iran has now demonstrated it retains a functional air defence capability that can threaten US aircraft. Whatever system downed the F-15E was either unknown to US intelligence, underestimated, or acquired after the war began. Each of those explanations has significant implications for future strike planning. — Analysis Desk

The political consequence is immediate: every congressional critic of the war now has a confirmed data point that contradicts the administration’s public claims of total Iranian military incapacitation. The search for the missing second crew member — while Iran is actively hunting the same pilot — will dominate the news cycle through the weekend.

The Hegseth Firing — What It Signals

Firing the Army Chief During a Combat SAR Mission Is Not Normal. Here Is What It Means.

General Randy George’s dismissal is operationally and institutionally significant for three reasons.

Timing: The Army Chief of Staff was fired while US special forces were actively conducting a combat search and rescue mission in hostile territory to recover a missing crew member. The civilian leadership of the Defence Department terminated its top Army officer during an active combat operation. This has no modern parallel.

Process: George requested a meeting with Hegseth over personnel management concerns — specifically Hegseth’s undisclosed additional screening criteria for officer selections. Hegseth denied the meeting. This suggests the firing was not about the substance of George’s concerns but about the act of raising them. Officers who demand meetings with civilian leadership are apparently being removed.

Institution: The Army Chief of Staff is one of the six members of the Joint Chiefs of Staff. His firing during wartime, combined with the simultaneous media leak, is a deliberate signal to the remaining military leadership about what civilian control of the military looks like under this administration. The White House is seeking $1.5 trillion in defense spending for FY2027 — the highest in modern history — while simultaneously removing its most senior Army officer for asking questions.

No one knows what they’re screening for. No one knows except them. — Source familiar with the George firing, CNN, April 3, 2026

🌏 Diplomatic Update — Since This Morning
UN · Saturday Vote

The Bahrain Resolution Now Has a Better Chance of Passing — And a More Complicated Context

The UN Security Council Hormuz vote is confirmed for Saturday. The watered-down resolution — authorizing “all defensive means necessary” rather than the original “all necessary means” — appears to have secured enough support to avoid a Chinese or Russian veto. Saudi Arabia’s Crown Prince reportedly secured assurances from Putin. France, which had raised concerns about force authorization language, signaled support after the Chapter 7 reference was removed.

The context has changed since this morning. A passed Hormuz resolution now lands into a situation where: (1) a US crew member is missing in Iran with Iran actively hunting them; (2) two US aircraft have been confirmed downed; (3) the Army Chief of Staff has been fired. The resolution’s practical effect — authorizing other nations to use defensive measures to protect Hormuz transit — is unchanged. But the political environment around its passage is dramatically more charged than it was at dawn.

Trump · Talks Continue

Trump Says Aircraft Loss Will Not Affect Negotiations. That Is the Most Important Statement of the Afternoon.

Trump’s statement that the F-15E downing will not affect negotiations is significant for one specific reason: it confirms negotiations exist. He has been reluctant to explicitly acknowledge that talks are happening in any formal sense. Saying the aircraft loss won’t affect “negotiations” is the clearest public acknowledgment from Trump that some form of diplomatic process is underway.

It also frames his response to a major military setback in the least escalatory terms possible — a notable choice for a president who has repeatedly threatened to bomb Iran back to the Stone Age. The gap between that rhetoric and “this won’t affect negotiations” is where the actual policy lives. Watch Zarif’s Foreign Affairs proposal — published this morning — in this context. If Trump is acknowledging negotiations while an F-15E crew member is missing in Iran, the diplomatic track is more active than the public posture suggests.


🔍 Sunday Night Futures Watch — 6PM ET
📅 What Lands Between Now and Sunday 6PM ET — The Complete Watch List
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Now · Ongoing
F-15E crew search. The most emotionally and politically charged variable of the weekend. A successful rescue of the second crew member before Sunday is the single most constructive possible development for the national mood heading into April 6. A capture by Iranian forces is the most destabilizing. Set alerts for any Pentagon or CENTCOM statement on crew status.
Saturday · AM
UN Security Council Hormuz vote. Pass = constructive signal, potentially gap-up for Monday. Veto from China or Russia = geopolitical deterioration, gap-down signal. The vote is now more consequential than it was 24 hours ago given the F-15E context. A passed resolution gives Trump a diplomatic framework to point to when the April 6 deadline expires.
Saturday · Anytime
April 6 deadline — Trump signal. Does Trump announce an extension, escalation, or deal before the deadline formally expires Monday? Any weekend Truth Social post touching the deadline, Zarif’s proposal, or the F-15E changes the Sunday futures setup entirely. Trump’s weekend posting pattern is a key watch variable.
Saturday · Anytime
Zarif proposal — Washington response. The nuclear limits + Hormuz reopening for sanctions lifting framework published this morning in Foreign Affairs will reach every senior US official today. Any acknowledgment — even dismissal — is a signal. Silence through the weekend is also a signal. This is the most underreported diplomatic variable of the Easter weekend.
Sunday · 6PM ET
Futures open — the net read. Every development between now and Sunday 6PM compresses into the opening futures print. The base case entering this morning was a moderate gap-up driven by the jobs beat. That base case has been materially disrupted by two confirmed aircraft losses, a missing crew member, a fired Army chief, and an ongoing combat SAR mission. Sunday night futures are now a genuine coin flip between the jobs beat (positive) and the worst military day of the war (negative). The balance depends entirely on how the weekend resolves.
Monday · 9:30AM ET
April 6 deadline expires · Markets reopen. The first trade of Monday morning is simultaneously a reaction to the best employment data of the war era, the worst military air operations day of the war, a potentially passed UN Hormuz resolution, and the expiry of Trump’s energy infrastructure strike deadline — all without a ceasefire announced. Gap risk in both directions is maximum. Position sizing should reflect the uncertainty, not a directional conviction.
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🌏 Diplomatic & Military Track — War Day 35 Afternoon
Pakistan — US-Iran back-channel active, both sides endorsed
Active
Zarif — nuclear limits + Hormuz reopening for sanctions lifted (Foreign Affairs)
New · Today
Trump — F-15E loss will not affect “negotiations” · Confirms talks exist
New · Today
UN Security Council Hormuz vote — defensive force resolution
Saturday
F-15E crew member 2 — search and rescue ongoing inside Iran
SAR Active
Formal ceasefire agreement · signed · with date & terms
Not Yet
April 6 Deadline — No extension · No deal · Deadline still live
3 Days
Army Chief of Staff — General Randy George fired by Hegseth during active SAR
Fired Today
📘 Key Terms — The Watch
F-15E Strike Eagle
A two-seat, twin-engine, all-weather multirole strike fighter operated by the US Air Force. The “E” variant is designed for deep interdiction — long-range precision strikes against ground targets — and is flown by a pilot and a Weapons Systems Officer (WSO). It has been the primary strike platform in Operation Epic Fury. Three F-15Es were previously lost over Kuwait in a friendly fire incident on March 1; today marks the first confirmed loss to Iranian hostile fire.
A-10 Thunderbolt II (Warthog)
A single-seat, twin-engine, straight-wing jet aircraft designed primarily for close air support of ground forces. The A-10 is also used in the CSAR (Combat Search and Rescue) Sandy role — providing close air support and escort for rescue helicopters attempting to recover downed aircrew. Its loss near the Strait of Hormuz on the same day as the F-15E suggests it may have been participating in the search and rescue mission when it was hit.
Joint Chiefs of Staff — Army Chief of Staff
The Army Chief of Staff is one of six members of the Joint Chiefs of Staff — the body of senior uniformed military leaders who serve as the principal military advisers to the President, Secretary of Defense, and National Security Council. The Chief of Staff of the Army specifically oversees the organization, training, and equipping of the US Army. General Randy George’s firing during an active combat operation in Iran is the first wartime dismissal of an Army Chief of Staff since the position was established in its modern form.