Bank earnings, Warsh heads to the Hill, Chipotle's Mexico push and more in Morning Squawk

President Donald Trump said yesterday that the U.S. will reinstate its blockade of Iranian ports and impose a 20% toll on cargo passing through the Strait of Hormuz. Oil prices spiked more than 9% following the announcement, putting pressure on stocks.

Here's what to know:

Wall Street's biggest banks kicked off earnings season with blowout results this morning, reporting better-than-expected revenue from equities trading and significant jumps in investment banking fees. Catch up on all five earnings reports here.

JPMorgan Chase CEO Jamie Dimon said every one of the bank's major businesses posted record revenue in the quarter, while Bank of America CEO Brian Moynihan called the period one of his bank's "strongest quarters to date." Hear more from Moynihan when he joins CNBC's "Squawk on the Street" at 10 a.m. this morning, followed by Goldman Sachs CEO David Solomon at 12 p.m. ET.

Earnings aren't the only thing traders have their eyes on this morning. The Bureau of Labor Statistics will release the consumer price index for June at 8:30 a.m. ET, which economists expect will show a 0.2% decrease for the month. That would bring its 12-month rate to 3.8%, a 0.4 percentage point drop from May.

Federal Reserve Chairman Kevin Warsh will also begin two days of hearings on Capitol Hill today. The newly minted Fed chief will face the House finance committee at 10 a.m. this morning before heading to the Senate baking committee tomorrow. As CNBC's Jeff Cox notes, it will be Warsh's first such hearings since taking the Fed's helm in May.

A dozen state attorneys general are suing to block Paramount Skydance's acquisition of Warner Bros. Discovery. As CNBC's Lillian Rizzo reports, the group is citing antitrust concerns and asked the companies not to complete the deal until after the judicial process ends.

California Attorney General Rob Bonta, who's leading the suit, said in a statement that the merger would harm "audiences on every sofa and movie theater seat in the U.S." He also warned that the deal could result in less content and higher prices.

A Paramount spokesperson said the lawsuit is a "misrepresentation of competition in the entertainment industry today." The deal already won approval from the Justice Department and several global jurisdictions.

Chipotle is opening its first restaurant in Mexico this week. The location is in the Monterrey metropolitan area, which the fast-casual chain said it targeted for its status as one of the country's "leading business and innovation hubs," as well as its growing population and economic strength.

As CNBC's Laya Neelakandan notes, it's the start of a Chipotle's planned expansion into Mexico: The California-based chain plans to move into the capital, Mexico City, next year.

CEO Scott Boatwright said in a statement that the company is "entering Mexico with deep respect for the country's culinary heritage." Chipotle, which already operates more than 4,000 stores globally, counts international expansion as a part of its broader strategy to break out of stagnant growth.

— CNBC's Kevin Breuninger, Spencer Kimball, Brian Sullivan, Sean Conlon, Hugh Son, Leslie Picker, Jeff Cox, Lillian Rizzo, Laya Neelakandan and Justin Papp contributed to this report.

Luke Fountain assisted in the production of this newsletter. Josephine Rozzelle edited this edition.