President Trump has urged Congress to impose tariffs on Iran within a sanctions bill targeting both Russia and Iran, despite the fact that U.S. imports from Iran are minimal, totaling just $1.4 million in 2025. This move is seen as largely symbolic, as it is unlikely to affect Iran's economy.
Concurrently, oil prices have continued to decline, with West Texas Intermediate futures dropping 1.6% and Brent crude futures falling nearly 1%, as recovery signs in crude flows through the Strait of Hormuz alleviate supply concerns.
In Asia, China's factory activity unexpectedly contracted in July for the first time since February, attributed to reduced domestic orders and production disruptions from typhoons. The Bank of Japan maintained its policy rate but cautioned that core inflation could surpass its 2% target.
Meanwhile, South Korea's major chip manufacturers, SK Hynix and Samsung Electronics, saw their shares surge over 20%, driven by strong earnings from U.S. tech giants like Amazon and Microsoft, which have reignited optimism regarding AI investments