Tensions between the U.S. and Iran escalated sharply this week, with mutual attacks by both sides causing the fragile ceasefire—which had held for about three weeks—to collapse, plunging shipping through the Strait of Hormuz back into a near-standstill. Nevertheless, according to reports from various foreign media outlets, mediators have not yet given up on their efforts to broker a resolution.
As the stalemate in the Strait of Hormuz reignited concerns over oil market supply, international oil prices posted weekly gains. Brent crude briefly touched $80 per barrel during the week, with a cumulative weekly increase of 5.5%, while WTI crude rose 3.92% for the week—both marking their largest weekly gains in eight weeks.In addition, Russia’s announcement of a diesel export ban has exacerbated global fuel supply tensions.
Inflationary pressures driven by rising oil prices have reignited expectations that the Federal Reserve will tighten monetary policy. International spot gold closed down 1.33% this week, while international spot silver closed down 4.07%.The minutes from the Federal Reserve’s June meeting revealed that, as inflationary pressures intensify, FOMC officials remain deeply divided on the future path of interest rates, though calls for rate hikes have grown stronger. U.S. Treasury yields rose, with the 2-year Treasury yield climbing more than 7 basis points this week and the 10-year Treasury yield rising 8 basis points.
U.S. stocks largely ignored geopolitical uncertainties as the “AI trading” boom regained momentum; the S&P 500 index approached a record high, and both it and the Nasdaq recorded their second consecutive weekly gains.SK Hynix ADRs surged 13% on their first trading day, and the $26.5 billion raised made it the largest foreign IPO in U.S. stock market history.
The U.S. dollar rose, driven by a combination of interest rate differentials and safe-haven premiums, briefly returning to the 101 mark.As another focus in the foreign exchange market, the yen received a brief boost after Japan’s finance minister called for pension funds to increase their allocation to domestic assets, but the market subsequently expressed widespread skepticism about whether the policy could actually be implemented and reverse the yen’s decline.