US Oil Blockade Deepens Iran’s Economic Crisis 
China to Inject $45 Billion Into State Financial Institutions 
Iran Vows Tougher Response as U.S. Sanctions Squeeze Economy 
JPMorgan Sees ECB Raising Rates to 2.75% in December 
European Stocks Flat as Iran Tensions, ECB Rate Hike Loom 
Asian Currencies Mixed as Yen Rallies on BOJ Bets 
Gold Prices Hold Near $4,500 as Fed Rate Hike Bets Ease 
Hong Kong Eyes Offshore Yuan Expansion, Deeper China Market Links 
Iran Plans New Gulf Restricted Zone as Hormuz Tensions Push Oil Higher 
Yen Rebounds as BOJ Rate Hike Bets Rise 
OPEC+ Expected to Hold October Oil Output Steady 
US Stock Futures Mixed as Strong Jobs Data Boosts Fed Rate Hike Bets 
ECB Set for September Rate Hike as Energy Prices Fuel Inflation 
Turkey Targets 5% Economic Growth by 2029 
Chinese AI Stocks Rally After OpenAI Launches GPT-6 Astra 
Asian Stocks Rally as Fed Rate Hike Fears Ease 
Japan, US Target AI and Chips in $550 Billion Investment Push 
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Oil prices edged higher on Tuesday while the U.S. dollar strengthened as hopes for a breakthrough in reopening the Strait of Hormuz faded, increasing concerns over global energy supply disruptions. Investors also turned cautious ahead of crucial U.S. inflation data that could influence the Federal Reserve’s next interest rate decision.
Brent crude futures climbed 0.7% to $105 per barrel after U.S. President Donald Trump stated that the ceasefire with Iran was “on life support.” Tehran’s response to a U.S. proposal aimed at ending the conflict reportedly showed both sides remain far apart, keeping geopolitical tensions elevated in the Middle East.
Global stock markets weakened as rising oil prices and uncertainty over trade and inflation pressured investor sentiment. S&P 500 futures slipped 0.2%, while South Korea’s KOSPI index dropped 3%, dragging down broader Asian markets. MSCI’s Asia-Pacific index excluding Japan fell 1%, while European futures declined 1%.
Markets are closely monitoring Trump’s scheduled visit to China on Wednesday. Analysts expect limited progress on both Iran-related negotiations and U.S.-China trade discussions. Investors are mainly hoping for stability, with no additional tariffs or export restrictions.
Despite higher energy prices, Wall Street remained relatively resilient overnight, with both the S&P 500 and Nasdaq reaching fresh record closing highs. However, traders are now focused on upcoming U.S. consumer price index data, which is expected to show annual inflation accelerating to 3.7%.
A stronger-than-expected inflation reading could force the Federal Reserve to consider another interest rate hike instead of anticipated rate cuts, potentially increasing volatility across financial markets.
Meanwhile, bond yields continued to rise globally. Japan’s 10-year government bond yield surged to a 29-year high of 2.54%, fueled by expectations of further policy tightening from the Bank of Japan. The U.S. dollar also gained strength, rising to 157.53 yen against the Japanese currency.
