Global Markets Brace for Iran Sanctions Amid Trade Tensions
24 August 2026 · Evening
Global markets entered a cautious phase as the US prepared to announce its 'toughest-ever' sanctions against Iran, leading to a notable decline in oil prices despite supply concerns.
Asian equities fell broadly, with the KOSPI experiencing the sharpest drop due to disappointment over Samsung Electronics' shareholder returns.
Meanwhile, the dollar remained near multi-month lows, and gold continued its rally, reflecting a flight to safety amidst geopolitical and fiscal uncertainties.
Investors are now keenly awaiting the full details of the Iran sanctions and the upcoming Jackson Hole symposium for further market direction.
Global markets experienced volatility today as geopolitical tensions escalated, particularly around Iran and Ukraine.
Global Markets
Detail
S&P 500
Closed at 7,674.37 on 8/21.
+0.43%
Nasdaq
Closed at 26,180.45 on 8/21.
+0.43%
STOXX 600
Traded at 654.92 as of 19:42 KST on 8/24.
+0.11%
Nikkei 225
Closed at 65,527.87 on 8/24.
-0.74%
CSI 300
Closed at 4,563.13 on 8/24.
-1.21%
KOSPI
Closed at 6,696.96 on 8/24.
-3.12%
Hang Seng
Closed at 25,517.33 on 8/24.
-1.89%
Dollar Index (DXY)
Closed at 99.00 on 8/24.
+0.16%
USD/JPY
Closed at 159.15 on 8/24.
+0.11%
EUR/USD
Closed at 1.17 on 8/24.
-0.11%
USD/KRW
Closed at 1,382.38 on 8/24.
-0.26%
USD/CNY
Closed at 6.72 on 8/24.
+0.02%
US 10-Year Yield
Closed at 4.736% on 8/21.
+2.8bp
US 2-Year Yield
Closed at 4.240% on 8/21.
+5.0bp
Japan 10-Year Yield
Closed at 2.879% on 8/24.
-0.5bp
Germany 10-Year Yield
Traded at 3.247% as of 19:42 KST on 8/24.
-1.4bp
Korea 10-Year Yield
Closed at 4.338% on 8/24.
-7.6bp
US HY Spread
Closed at 275bp on 8/20.
+2.0bp
WTI
Closed at $84.93 per barrel on 8/24.
-2.45%
Gold
Closed at $4,645.53 per ounce on 8/24.
+0.93%
Copper
Closed at $6.59 on 8/24.
+0.10%
VIX
Closed at 15.14 on 8/21.
-5.49%
Markets & Commodities
Dollar Hits Multi-Month LowsDXY 99.00
The dollar remained under pressure despite the US Treasury's long-term bond purchase announcement.
Concerns over rising government debt and increased borrowing costs were cited as key factors.
Bitcoin surged 23% and gold rose 5% last week against the dollar, indicating a broader preference for non-dollar assets.
US-Canada Trade Talks CollapseCAD -0.3%
Trade negotiations between Canada and the US broke down after the US imposed 50% tariffs on certain Canadian goods over the weekend.
The Canadian dollar weakened by 0.3% to C$1.3807/USD, reflecting escalating trade disputes.
Canadian Prime Minister Mark Carney announced retaliatory tariffs on various US sectors, effective September 8.
Iran Sanctions Loom, Oil Prices FallBrent -1.5%
US Treasury Secretary Bessent is set to unveil details of enhanced sanctions against Iran on Monday afternoon.
Brent crude fell 1.5%, suggesting market focus on demand weakness rather than immediate supply disruption fears from the Middle East.
Australian refiner Ampol (ASX:ALD) reported a nearly five-fold increase in H1 profit to A$857.2 million due to expanded refining margins.
Singapore July Inflation Below ForecastsCore CPI 2.0%
Singapore's July core inflation rose 2.0% year-on-year, undershooting the 2.2% expectation.
Overall inflation also came in lower than expected at 2.2% year-on-year, compared to a 2.3% forecast.
Both indicators suggest a moderation in inflationary pressures for the city-state.
US Long-Term Treasury Yields at Decades HighsUS 10Y 4.736%
Long-term US Treasury yields reached multi-decade highs, driven by increasing government debt, persistent inflation, and the AI investment boom.
Yields continued to rise despite the US Treasury's long-term bond purchases, reflecting significant structural concerns.
This trend contributes to dollar weakness while simultaneously increasing US borrowing costs.
Nvidia Earnings AwaitedNVDA Earnings
Nvidia (NVDA) is scheduled to report earnings on Wednesday, with markets closely watching for signals on AI investment trends.
S&P 500 futures and Nikkei indices remain sensitive to potential ripple effects from AI sector developments.
Investors also anticipate remarks from Fed Chair Warsh and the RBA's August monetary policy meeting minutes this week for policy guidance.
United States
US Announces 'Largest Ever' Iran SanctionsHormuz Traffic Down
US Treasury Secretary Bessent is set to detail new sanctions targeting Iran's trading partners, primarily China, at 2 PM EDT.
Iran has threatened to stop all oil exports from the Persian Gulf if sanctions continue; China vowed to protect its rights.
Hormuz Strait traffic dropped significantly over the weekend, with fewer than 20 vessels, signaling potential oil and inflation impacts.
Yuan Surges, Dollar Nears 3.5-Year LowUSD/CNY 6.7229
The USD/CNY exchange rate weakened to 6.7229, nearing a 3.5-year low, despite the PBOC's efforts to slow the decline.
The dollar's direction could be significantly influenced by the upcoming US weekly core Personal Consumption Expenditures (PCE) report.
US Imposes 50% Tariffs on Canadian GoodsCanada Tariffs 50%
The US implemented 50% tariffs on certain Canadian products on Saturday, following a complete breakdown in bilateral trade talks.
This move raises the likelihood of a prolonged trade dispute between the two nations, leading to Canadian dollar weakness.
Asian Equities and Currencies WeakenKOSPI -3.1%
Asian markets broadly declined, with the KOSPI falling 3.1% due to disappointment over Samsung Electronics' dividend policy.
Indonesia and Thailand also saw declines of -0.5% and -0.9% respectively, amid Iran sanction uncertainties.
Upcoming central bank policy decisions in Thailand, the Philippines, and South Korea add to currency market uncertainty.
Fed Chair Warsh's Jackson Hole Speech AnticipatedFed Speech Fri
Markets are keenly awaiting Fed Chair Warsh's inaugural speech at the Jackson Hole symposium on Friday.
Expectations are high for policy explanations regarding the recent surge in bond yields.
Bond market instability complicates the communication of monetary policy messages, especially amidst global savings shortages.
US Shifts North Korea ApproachMilitary Drills Cut
The US is reducing the scale of joint military exercises with South Korea, with next month's drills potentially canceled, signaling a conciliatory stance towards North Korea.
This geopolitical shift is prompting key regional allies like Japan and India to re-evaluate the reliability of US commitments.
Walmart (WMT)-9.15%
Q2 adjusted EPS of $0.81 beat consensus of $0.74, and revenue of $187.9 billion exceeded estimates of $186.8 billion.
US comparable store sales (excluding fuel) grew +2.6%, significantly below the +3.8% consensus, causing the stock to drop.
Full-year revenue growth guidance of +4% to +5% was below the +5.3% consensus, and adjusted EPS guidance of $2.80-$2.87 also fell short of the $2.90 consensus.
Broadcom (AVGO)+0.43%
Bloomberg reported the company is pursuing over $60 billion in corporate bond issuance to fund AI data center investments.
Marvell Technology (MRVL)+5.79%
Financial Times reported a $12 billion AI chip supply agreement with Google.
Micron Technology (MU)+3.97%
Announced plans for a new $10 billion AI memory research lab over the next decade.
Unveiled a $250 billion investment in the US, projected to create over 90,000 jobs.
Nvidia (NVDA)-0.33%
The Information reported plans for small shipments of custom AI chips to Chinese customers by year-end.
The company is also reportedly discussing a $20 billion investment in AI data provider Mercor and a potential acquisition of chip startup Rebellions.
Tesla (TSLA)-1.71%
Chinese regulators announced a recall of 1.96 million domestically produced Model 3 and Model Y vehicles, initially reported as 2.74 million.
The issue, related to emergency door handle identification, will be addressed via software updates.
The company also halted its solar roof tile business due to economic viability concerns.
Amazon (AMZN)N/A
Prime Video plans to invest $2 billion in Latin America between 2027 and 2030 to more than double local original content.
Its drone delivery service is expanding from 11 current locations to approximately 500 US locations by year-end.
Boeing (BA)N/A
The US State Department approved a $4.5 billion sale of KC-46A aerial refueling tankers to Qatar.
RTX (RTX)-3.66%
The EU concluded its antitrust investigation into RTX's Pratt & Whitney Canada unit.
The probe closed after the company voluntarily modified contract terms.
Alphabet (GOOGL)-1.17%
Financial Times reported a $12 billion AI chip supply agreement with Marvell.
The Indian government sent multiple notices regarding the Firebase platform being exploited for phishing, demanding the closure of hundreds of accounts.
SpaceX-4.05%
Elon Musk denied media reports that SpaceX was pursuing a $6 billion acquisition of wireless communication spectrum.
Earlier reports also suggested an attempt to acquire AI coding startup Cognition.
AbbVie (ABBV)-0.25%
Settled the Gill case and necrotizing enterocolitis (NEC) claims related to specialized infant formula for premature babies for $670 million.
Approximately 1,700 lawsuits remain pending.
Merck (MRK)N/A
Its personalized mRNA cancer vaccine, co-developed with Moderna, showed significant efficacy in a late-stage clinical trial for melanoma patients.
GE Vernova (GEV)-2.17%
Quinbrook selected GE Vernova as the power conversion and grid stabilization technology provider for Phase 3 of its Supernode Battery Energy Storage System project in Queensland, Australia.
AMD (AMD)+0.65%
The semiconductor company's stock saw an increase.
Asia
Taiwan Indicts 9 for Illegal AI Server ExportsAI Server Exports
Taiwan indicted nine employees from Nvidia (NVDA) and Super Micro (SMCI) for allegedly illegally exporting AI servers to China.
The investigation follows US semiconductor export bans to China, implemented since 2022.
Taiwan is the world's largest producer of advanced AI semiconductors.
Taiwan July M2 GrowthM2 +7.42%
Taiwan's M2 money supply grew by 7.42% in July.
Emerging Markets
Iranian Rial Hits Record LowIRR 2.2M/USD
The Iranian rial plummeted to a historic low of over 2 million per US dollar, according to free market exchange rate tracking sites.
This new low reflects the deepening impact of sanctions and structural currency weakness.
North Korea Prepares Russia Troop Deployment15M Shells Est.
North Korea is reportedly preparing for further troop deployments to Russia, though South Korea's Ministry of Defense sees no imminent signs.
North Korea is estimated to have supplied over 15 million artillery shells to Russia.
The country is also preparing to deploy missiles capable of reaching Guam, enhancing accuracy with Ukrainian combat data and Russian support.
EM Central Banks Signal EasingTurkey Repo
Turkey's central bank resumed repo auctions, injecting 1 billion lira and signaling a potential cut from its 40% overnight rate to 37%.
Hungary's central bank is expected to cut its benchmark interest rate by 0.25% to 5.5% this Tuesday, continuing its easing cycle amid slowing inflation.
Ukraine's grain exports fell 11.4% to 188,200 tons for the week of August 13-19, continuing to be affected by Black Sea port closures.
Iran warned vessels violating transit rules in the Hormuz Strait of fines, detention, or confiscation, increasing risks for energy and shipping routes.
A Polish central bank policymaker stated that while the economy is accelerating, inflation transmission remains weak, with August inflation expected slightly below July's 3% year-on-year.
July retail sales grew 3.9% year-on-year, below the 4.5% forecast, driven by strong auto parts (+8.1%) but offset by declining gasoline sales (-0.2%).
Europe
UK Missile Tech Transfer to Ukraine Escalates Tensions
UK Prime Minister Burnham announced support for Ukraine to boost domestic production of SCALP long-range cruise missiles during his first visit to Kyiv.
The Kremlin spokesperson described the UK's provision of technical information as 'adding fuel to the fire,' expressing a 'very negative' stance.
Imminent Iran Sanctions Drive Energy and Bond Market Volatility
The US is set to unveil details of what it calls the 'largest economic attack in history' against Iran tonight, in response to potential Strait of Hormuz blockade.
Eurozone government bond yields tested multi-decade highs (German 10-year at 3.236%, near last week's 15-year peak of 3.275%), though oil price dips offered some relief.
European Equities Slip as Tech Sector Leads Declines
The STOXX 600 index closed down 0.1%, with technology stocks experiencing the largest drops.
French 10-Year Bond Yields Stabilize Above 4% Amid Budget Talks
The French government spokeswoman urged serious parliamentary negotiations on the budget, citing tensions in the bond market.
ECB Policy Maker Sees Low Stagflation Risk from Hormuz Crisis
An ECB policymaker assessed the risk of simultaneous economic stagnation and high inflation from the Hormuz crisis as 'low.'
The policymaker stated that while macroeconomic changes are monitored, there are currently no signals suggesting a stagflation scenario.
Germany's Social Spending Reaches Record High Driven by Aging Population
Ifo Institute analysis projects that by 2025, costs related to aging and illness will account for about 70% of Germany's total social budget, reaching an all-time high.
Over 80% of the real increase in social spending since 1992 has been attributed to these structural cost drivers.
EU Approves €6.1 Billion in Additional Aid for Ukraine Defense Systems
The European Commission approved an extra €6.1 billion (approx. $7.12 billion) for Ukraine to procure new air defense, missile, ammunition, and radar systems.
Out of a cumulative €16 billion approved, €8.35 billion has been disbursed so far.
UK Power Facilities Targeted by Iran-Linked Cyberattack
Reports from The Telegraph and Financial Times indicated that an Iran-linked cyberattack in July caused a four-day shutdown of a small UK power generation facility.
A government energy official officially confirmed that there was no threat to the broader electricity grid.
Norway Prioritizes Arctic Resource Development Despite EU Reservations
Norway's Energy Minister declared continued development of Barents Sea resources, irrespective of the EU's reservations about Arctic oil and gas supply.
Since the Ukraine invasion, Norway has become Europe's largest natural gas supplier, meeting about 30% of EU and UK gas demand, with gas production near record highs last year.
Netherlands Aims for 3.5% GDP Defense Spending by 2035, Faces Funding Stalemate
Negotiations between the Ministry of Defense and financial institutions, set to begin in 2024, are stalled over criteria for defense industry reviews and investment types.
A global consulting firm estimates Dutch defense manufacturing needs to expand 3-4 times by 2030, with industry groups suggesting a €300-500 million fund could bridge the gap.
UK Labor Productivity Shows Sustained Improvement Post-2008 Crisis
Economists observe signs of an end to 16 years of productivity stagnation since the financial crisis, with improved economic output per hour worked.
Improved productivity is expected to cushion pressures from an aging workforce and increased defense spending, though AI's contribution remains debated.
China
Central Bank Boosts Liquidity Ahead of Weekend and Holiday
The People's Bank of China (PBOC) injected 340 billion yuan via 7-day reverse repos at 1.40% this morning.
Additionally, the PBOC plans to conduct overnight reverse repos of up to 60 billion yuan daily from August 27 to September 1 to stabilize funding.
PBOC Moderates Yuan Appreciation from 3.5-Year High
After eight consecutive weeks of appreciation, the yuan reached its strongest level since February 2023 last Friday but weakened 0.03% to 6.7238 per dollar today (offshore yuan at 6.7241).
The central bank signaled its intent to curb excessive appreciation by setting a lower midpoint rate.
Shanghai and Hong Kong Stocks Decline, Alibaba Share Sale Hits Tech
Alibaba (9988.HK)'s surprise share placement reignited AI investment concerns, leading to a broad sell-off in the technology sector.
The Shanghai Composite Index (SSEC) fell 0.6% to 3,882.01, and the blue-chip CSI 300 dropped 1.2%, both reaching three-week lows.
Growth stocks led the decline, with the ChiNext board down 3.2% and the STAR50 index down 3.1%.
China's Property Crisis Persists for Sixth Year After Evergrande Ruling
The real estate collapse continues to be a fundamental factor slowing economic growth, reducing household wealth, and increasing export dependence.
Market analysts project prices need to fall an additional 40% from current levels to stabilize.
The Xi Jinping government is actively reallocating capital from traditional real estate to strategic manufacturing sectors like semiconductors and new energy.
China's Gig Economy Exceeds 320 Million Workers, Amid Economic Weakness
A professor's comment describing gig work flexibility as 'welfare' sparked widespread criticism and anger on social media.
Think tank estimates suggest gig workers will reach 320 million this year, a 14% increase year-over-year, accounting for 44% of urban workers.
As China's economy weakens, full-time employment contracts, increasing reliance on temporary and irregular jobs.
Japan
Japanese Government Bond Yields Rise Amid Middle East Tensions and Fiscal Concerns+1.5 bp
The benchmark 10-year JGB yield rose to 2.89%, indicating falling bond prices.
Oil price instability from Middle East tensions fueled inflation concerns, while worries about fiscal sustainability grew after the government unveiled record budget requests.
Global interest rate pressure intensified with the imminent announcement of strengthened Iran sanctions by the US Treasury Secretary.
Yen Short Positions Gradually Return, Up 25% Since Last Month's Forced Liquidation+25%
CFTC positioning data showed net yen shorts increased to 52,893 contracts for the week ended August 18.
This is less than a third of last month's peak and still minimal compared to the scale of liquidation following joint Japan-US intervention.
USD/JPY has remained below 160 since August 3 (155.20, a three-month low), with the 160 policy intervention line acting as resistance.
Korea
KOSPI Falls 3.12% to 6,696.96, Samsung Electronics Leads Decline-3.12%
Samsung Electronics (005930.KS) dropped 8.7% after its record $79 billion shareholder return announcement was deemed to fall short of investor expectations.
Foreign investors were net sellers, contributing to a broad weakness across the semiconductor sector.
Korean Won Strengthens to 1,376.50 Per Dollar, Strongest in About a Year1,376.50/USD
The won't appreciation came amid concerns over US debt burden following a sharp rise in Treasury yields last week.
US fiscal instability, Iran sanction uncertainties, and increasing debt in developed nations contributed to the dollar's overall weakness.
India
Rupee Stabilizes at 95.67/Dollar, RBI Intervention Offsets Oil and Geopolitical Pressures95.67/USD
The rupee closed flat at 95.6675 per dollar (vs. 95.6950 previous day), supported by the central bank's continued dollar supply via state-run banks.
Upward pressures included rising oil prices, US-Iran uncertainties, and surging US Treasury yields, while support came from approximately $73 billion in capital inflows and $2.5 billion in foreign equity purchases (the largest in emerging markets in August).
Weekly outlook: sustained capital inflows are expected to limit rupee volatility, but a sharp rise in oil prices or worsening geopolitics could risk breaching 96.
Indian Government Bond Yields Stabilize After Spike, State-Run Banks Buy Dips+9bps
Yields surged last week to 6.85% (a fiscal year high), impacted by US-Iran uncertainties and net foreign capital outflows.
State-run banks net purchased 19.6 billion rupees (approx. $205 million) worth of bonds, capitalizing on buying opportunities.
Foreign investors saw net outflows of 166 million rupees from fully accessible route (FAR) bonds but were net buyers of 10-year and 5-year bonds, with 860 million and 590 million rupees respectively.
Indian Corporates and Financial Institutions Accelerate Offshore Funding
Godrej Industries pledged an additional 20 billion rupees (approx. $209 million) investment in Haryana (following an earlier 12 billion rupee investment), aiming to create 40,000 jobs.
Federal Bank plans to issue $500 million in 5-year dollar bonds through its GIFT City branch.
There's a growing trend to access offshore dollar markets instead of domestic funding.
Indian Stock Market Flat, Awaiting US-Iran Sanctions Details
The BSE Sensex gained 0.1% to 77,619, and the NSE Nifty 50 rose 0.1% to 24,273.
Investors are monitoring details of US-Iran sanctions, oil prices, and potential energy ramifications.
Vietnam
Vietnam Approves Additional $3 Billion for China Rail Link+$3 Billion
The project to expand the Lao Cai-Hanoi-Hai Phong port railway line will increase its length from 391 km to 426 km, with a maximum operating speed of 120 km/h.
The total project cost has been revised upwards from 203 trillion dong to 289 trillion dong (approx. $11.1 billion in dollar terms).