Oil Prices Fall on Hormuz Hopes, Asia Stocks Rise Ahead of Key US Data
26 August 2026 · Evening
Diplomatic progress between Iran and Oman regarding a temporary shipping route through the Strait of Hormuz led to a significant drop in oil prices.
This development, coupled with mixed signals from global central banks on interest rates, fueled risk appetite in Asian markets.
Investors are now awaiting crucial U.S. economic data, including PCE inflation and the Jackson Hole Symposium, as well as Nvidia's earnings report.
Global markets found relief as negotiations to reopen the Strait of Hormuz advanced, sending oil prices down and boosting emerging market equities.
Japan's inflation data accelerated, fueling expectations for a September rate hike by the Bank of Japan.
Global Markets
Detail
S&P 500
Closed at 7,677.28 on August 25.
+0.32%
Nasdaq
Closed at 26,151.30 on August 25.
+0.66%
STOXX 600
Trading at 657.45 as of 19:40 KST on August 26.
+0.15%
Nikkei 225
Closed at 66,261.94 on August 26.
+0.62%
CSI 300
Closed at 4,590.79 on August 26.
+0.85%
KOSPI
Closed at 6,808.21 on August 26.
+0.97%
Hang Seng
Closed at 25,652.97 on August 26.
+0.56%
Dollar Index (DXY)
Closed at 99.01 on August 26.
+0.11%
USD/JPY
Closed at 159.02 on August 26.
-0.10%
EUR/USD
Closed at 1.17 on August 26.
-0.08%
USD/KRW
Closed at 1,383.95 on August 26.
+0.13%
USD/CNY
Closed at 6.72 on August 26.
Flat
US 10-Year Yield
Closed at 4.623% on August 25.
-7.7bp
US 2-Year Yield
Closed at 4.176% on August 25.
-6.2bp
Japan 10-Year Yield
Closed at 2.884% on August 26.
-1.0bp
Germany 10-Year Yield
Trading at 3.204% as of 19:40 KST on August 26.
+2.4bp
Korea 10-Year Yield
Closed at 4.272% on August 26.
-7.0bp
US HY Spread
Closed at 269bp on August 24.
-1.0bp
WTI Crude
Closed at $80.20 on August 26.
-2.62%
Gold
Closed at $4,623.60 on August 26.
-0.73%
Copper
Closed at $6.70 on August 26.
-0.16%
VIX
Closed at 15.46 on August 25.
-2.40%
Australia CPI
Australia's July monthly CPI rose 1.0% (vs. 0.8% expected) and annual CPI was 3.5% (vs. 3.3% expected).
+1.0% m/m
Hormuz Strait
Iran and Oman are reportedly discussing a temporary shipping corridor through the Strait of Hormuz, driving oil prices down.
WTI -2.5%
Energy Crisis Impact
The effective closure of Hormuz has cut global oil and LNG supply by one-fifth, deepening the energy supply chain crisis.
Qatar LNG -96%
STOXX 600
The STOXX 600 edged up 0.1% on the back of falling oil prices, with travel and consumer stocks providing support.
+0.1%
Asian Equities
Asian stock markets closed higher, with KOSPI (+0.97%), CSI300 (+0.85%), Hang Seng (+0.56%), and Nikkei 225 (+0.62%) all gaining.
Mixed
Singapore Industrial Production
Singapore's industrial production rose 2.3% month-on-month in July, falling short of the 4.6% forecast.
+2.3% m/m
United States
US-Iran Conflict6 Months On
The US-Iran conflict has entered a war of attrition after six months, with thousands dead and widespread damage across the Middle East.
Neither side appears able to retreat, raising the possibility of the conflict continuing beyond 2027 and holding energy markets hostage.
While Qatar's LNG exports have plunged, other major oil producers like Saudi Arabia and Iraq have seen relatively minor impacts on their oil exports.
Fed Jackson HoleAwaited
Investors are keenly awaiting Federal Reserve Chair Warsh's speech at the Jackson Hole Symposium this week for clues on the interest rate path.
Warsh has previously suggested that high US Treasury yields could substitute for further monetary tightening.
The US July Personal Consumption Expenditures (PCE) inflation data, a key Fed-preferred metric, is also due today and will inform rate hike signals.
Trump & FedAppointments
Donald Trump is seeking to fill four open positions on the Federal Reserve board, despite the ongoing legal challenge to remove Fed Governor Cook.
With Chair Powell's reappointment confirmed, Trump plans to leverage the expiration of terms for existing governors like Jefferson.
He continues efforts to assert influence over monetary policy, even amidst checks from the courts and Senate.
US DollarNarrow Range
The US Dollar traded in a narrow range ahead of key inflation data and the Jackson Hole Symposium, with its direction uncertain.
The Australian Dollar (AUD/USD) surged 0.3% to a three-month high of $0.7865 after Australia's July CPI exceeded expectations.
Emerging market currencies also strengthened, reflecting lower oil prices and hopes for the reopening of the Strait of Hormuz.
Japanese YenRevaluation
The Japanese Yen has entered a revaluation phase following the first joint US-Japan intervention since 2011, which included Japan's first yen purchases since 1998.
This intervention marks a turning point in currency markets, with potential for significant yen appreciation in the coming years.
NvidiaEarnings Focus
Japanese shares edged higher, with the Nikkei 225 up 0.56% to 66,227.55 and the Topix up 0.61% to 4,118.44.
Investors are closely watching Nvidia's earnings for insights into AI profitability and the broader tech sector.
Spot gold traded flat near $4,654/ounce, close to a three-month high, and is expected to react sensitively to the upcoming PCE data.
US-Saudi DealNuclear Pact
Donald Trump plans to submit the US-Saudi nuclear cooperation agreement to Congress, conditional on Saudi Arabia normalizing relations with Israel.
The agreement, signed in July, allows US companies to export nuclear technology to Saudi Arabia, including Westinghouse reactor construction.
The Trump administration emphasizes that Saudi-Israel normalization remains a prerequisite for the deal.
Nvidia (NVDA)-2.91%
Ahead of its Q3 earnings report, options market activity indicated potential stock volatility of up to ±$280 billion.
Consensus estimates project an EPS of $2.10 and revenue growth of +97.2%, with the next-gen Rubin chip and a $105 billion OpenAI lease guarantee being key factors.
Reports also emerged of potential investment and technology licensing with Perplexity, valuing it at over $30 billion. Target price was raised to $352 from $330.
AMD (AMD)-3.49%
The stock rose +2.4% in premarket trading after an upgrade to Strong Buy and a target price increase to $641 from $565.
Marvell (MRVL)-3.27%
Target prices were raised by three firms: to $300 from $240, to $265 from $230, and to $310 from $240.
Micron Technology (MU)-5.83%
The target price was lowered to $1,300 from $1,375.
Lam Research (LRCX)-1.22%
The target price was adjusted downwards to $365 from $370.
Applied Materials (AMAT)-1.65%
The target price was lowered to $590 from $650.
SanDisk (SNDK)-6.45%
The target price was reduced to $1,875 from $1,900.
Google (GOOGL)N/A
Launched Gemini Enterprise, an AI solution specialized for finance and legal sectors on Google Cloud.
Verizon announced plans to integrate Gemini Enterprise for AI agent orchestration and network anomaly prediction.
Meta (META)N/A
Reports indicated plans to launch its proprietary AI agent platform, 'Hatch,' within weeks.
Palo Alto Networks (PANW)-1.95%
The target price was raised to $384 from $326.
Apple (AAPL)+0.32%
Bloomberg reported that new Mac Mini models are expected to be released within days.
Cisco Systems (CSCO)-0.73%
Launched 'Sovereign Critical Infrastructure' in Canada, a solution for critical infrastructure based on national sovereignty.
This initiative enables governments and enterprises to comply with national regulations by storing and managing data within their own countries.
Johnson & Johnson (JNJ)+1.04%
The FDA approved Nipocalimab (Imaavy) as the first-ever treatment for Warm Autoimmune Hemolytic Anemia (WAIHA).
WAIHA is a rare autoimmune disease where the immune system attacks red blood cells, previously lacking standardized treatment options.
Eli Lilly (LLY)N/A
Launched its oral obesity drug, Foundayo, in the UK, priced lower than competitor Mounjaro at £100-120 per month.
The company is in discussions with NICE for potential inclusion in NHS coverage.
Moderna (MRNA)-4.30%
The target price was significantly raised to $125 from $48.
Merck (MRK)-1.24%
The target price was increased to $170 from $145.
Tesla (TSLA)-3.83%
Issued a recall of 2.98 million vehicles in China due to a door handle design flaw, marking the largest recall ever in the country.
The company also discontinued its Solar Roof business after 10 years and increased prices for its Cybertruck AWD models to $74,990 for dual-motor and $84,990 for premium.
Amazon (AMZN)N/A
Upgraded AWS Glue to version 6.0 and simultaneously announced a -30% price reduction for the service.
Boeing (BA)N/A
Awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) contract by the U.S. Department of Defense for the F-15 Eaglecrest program, valued at up to $131.2 billion.
ExxonMobil (XOM)N/A
Operations at its Liza Unity facility in Guyana were halted following a fire, with the local government initiating an investigation.
Chevron (CVX)N/A
Secured new exploration rights in Libya through a production sharing agreement with the National Oil Corporation (NOC) via a bidding round.
JPMorgan Chase (JPM)+1.37%
Eased its criteria for stock-backed loans for employees and early investors of recently listed companies.
Newmont (NEM)+0.20%
The target price was raised to $140 from $131.
Europe
ECB PolicyHawkish
Eurozone bond yields fell for a second day, influenced by declining oil prices and a reassessment of ECB policy direction.
ECB Governing Council member Isabel Schnabel stated that current policy rates are unlikely to bring inflation back to target in the medium term, necessitating further tightening.
Schnabel also noted that core inflation is likely to exceed 2% for an extended period due to high energy costs, signaling that falling oil prices might not immediately lead to ECB easing.
UK Energy Cap+4%
The UK's energy regulator, Ofgem, announced a 4% increase in the household energy price cap for October to December.
This rise reflects the surge in international wholesale gas prices and supply disruptions caused by the Iran conflict.
The increase offsets the new Prime Minister's pledge to exempt electricity bills from VAT, conflicting with promises to ease the cost of living.
Sweden RiksbankRates Review
A Deputy Governor of the Swedish central bank (Riksbank) assessed current interest rates as 'slightly accommodative' but noted inflation risks remain high.
There is room to support the economy as long as demand does not cause excessive inflation.
The Riksbank may consider a rate hike later this year if the Middle East conflict escalates and causes real price increases.
German Exports9.6
Germany's Ifo manufacturing export expectations index rose to 9.6 in August from -2.8 in July, reaching its highest point since February 2022.
Optimism was particularly high among manufacturers of electrical equipment and data center facilities.
Exports to the EU region continue to boom, while exports to China remain weak.
Swiss Investor Sentiment12.1
The UBS-partnered Swiss investor sentiment indicator rose to 12.1 in August from 10.0 in July, marking its second-highest level since January 2025.
The proportion of investors expecting the economy to 'remain unchanged' decreased, reflecting an increase in both optimistic and pessimistic outlooks.
This indicates a continued recovery in sentiment over two consecutive months following the Middle East conflict.
UK Retail Sales-48
UK retail sales weakened in August, with the Confederation of British Industry (CBI) monthly survey's retail sales volume index falling to -48.
This is a two-month low, down from -26 in July, indicating deteriorating sentiment among distributors and retailers.
Despite the sharp decline in sales volumes, there is an expectation for recovery in September.
German Cyber Threats37% Suspect
A survey by Germany's digital industry association (Bitkom) found that 37% of companies affected by cyberattacks suspect foreign intelligence agencies are involved.
This is an increase from 28% in the previous year and 7% in 2023, with China and Russia being the primary suspects.
The role of Iran in these cyberattacks is also trending upwards.
Japan
Japan July Corporate & Services PPI AcceleratePPI +3.6%
Corporate Goods Price Index (CGPI) and Services Producer Price Index (Services PPI) both rose 3.6% year-over-year in July.
This acceleration from 3.4% in the previous month has pushed market expectations for a Bank of Japan rate hike in September to 83%.
Japan Econ Minister Expects Gradual CPI RiseCPI Rise
Economy Minister Kiuchi anticipates a gradual increase in consumer prices due to the situation in the Middle East.
JGB Yields Drop on Middle East De-escalationJGB -2.5bp
The 10-year Japanese Government Bond (JGB) yield fell 2.5 basis points to 2.865%, tracking a decline in US Treasury yields.
This reflects signs of easing tensions in the Middle East, particularly related to the Strait of Hormuz.
Japan to Boost Energy SecurityEnergy Security
The Japanese government plans to announce a comprehensive energy security package, including support for Middle East pipeline projects.
This initiative aims to diversify crude oil procurement and address supply chain vulnerabilities exposed by potential disruptions in the Strait of Hormuz.
Emerging Markets
Hormuz Strait Negotiations ResumeHormuz Talks
Negotiations led by Iran and Oman have resumed for a temporary corridor through the Strait of Hormuz after a six-month blockage.
Brent crude prices fell over 3% to $86.28 per barrel on expectations of the strait reopening, easing geopolitical tensions.
Saudi Aramco (2222.SA) Increases Supply Outside HormuzSupply Boost
Saudi Aramco is increasing oil supplies outside the Strait of Hormuz starting September, utilizing ship-to-ship transfers.
Over 4 million barrels have already been sold to China this month via this method.
EM Equities Rise on Hormuz Hopes, Lower OilEM Equities +0.9%
Emerging market equities gained 0.9%, with the MSCI Emerging Markets Index recovering near a two-month high.
The rally was driven by hopes for the Strait of Hormuz reopening, lower oil prices, and a shift towards risk assets ahead of Nvidia earnings.
Thai Central Bank Holds RatesRates Held 1.0%
The Bank of Thailand unanimously kept its benchmark interest rate at 1.0% for the third consecutive meeting.
The central bank warned of weaker-than-expected growth and potential inflation exceeding its target range in Q4.
Hungarian Central Bank Cuts Rates, Hints at MoreRates Cut 5.5%
The Hungarian Central Bank cut its key interest rate to 5.5% for the third consecutive time.
It indicated potential for further easing depending on the September inflation outlook and global market developments.
Ukraine expanded its attacks on Russian economic infrastructure, targeting a Wildberries warehouse in Tambov with drones.
The attack burned approximately 100,000 square meters, part of a strategy to disrupt Russia's online distribution network.
Poland Cites Energy Prices as Growth ConstraintEnergy Prices
Poland's Finance Minister identified energy prices as the primary weakness for future GDP growth.
The country is undertaking one of Europe's largest energy transitions.
Indonesia Central Bank Nominee Emphasizes IndependenceFX Monitoring
Destry Damayanti, a candidate for Indonesia's central bank governor, stressed the institution's independence during parliamentary vetting.
She plans to enhance foreign exchange transaction data monitoring to support sovereign fund product exports.
Dangote RefineryIPO Planned
Nigeria's Dangote Refinery plans Africa's largest IPO in October, aiming to raise $5 billion.
The refinery's profitability recently surged due to supply disruptions from the Iran conflict.
However, future concerns include rising crude oil procurement costs impacting its margins, despite plans to double capacity within three years.
China
EU-China Trade Talks Focus on '996' Culture'996' Culture
The EU raised China's '996' work culture (9 AM to 9 PM, 6 days a week) as a key issue in trade negotiations.
The EU argues this practice provides unfair competitive advantages to Chinese exporters, a concern echoed by Chinese workers on social media.
JD.com (9618.HK) Ceconomy Acquisition Faces EU ScrutinyAcquisition Delay
JD.com's $2.5 billion acquisition of German retailer Ceconomy is facing delays due to an EU regulatory review.
The Chinese government has explicitly criticized the EU's review as an 'unjustified extraterritorial exercise of jurisdiction,' escalating China-EU tensions.
Moonshot AI Negotiates Cloud Revenue Share with US Tech GiantsAI Revenue Share
China's Moonshot AI is reportedly negotiating a revenue-sharing deal of over 30% for hosting its Kimi K3 generative AI model on Microsoft (MSFT) Azure, Amazon (AMZN) AWS, and Alphabet (GOOGL) Google Cloud.
This would mark the first significant revenue-sharing agreement between a Chinese AI company and major US cloud providers amidst rising US-China tech tensions.
Yuan Holds Near 3.5-Year HighYuan Strong
The Yuan is holding near a 3.5-year high, having appreciated about 8% against the dollar since late 2024 and over 6% against a currency basket since June 2025.
The People's Bank of China (PBOC) is actively signaling its intent to curb further appreciation, encouraging diversification of foreign exchange reserves away from the dollar.
China Orders Massive EV Recall4.3M EV Recall
Chinese regulators ordered a recall of 4.3 million electric vehicles, including Tesla (TSLA) and domestic brands, marking China's largest-ever auto recall.
The recall addresses a safety defect where occupants could be trapped if power is lost, highlighting China's increasing assertiveness in global auto safety standards.
Hong Kong Court Allows Evergrande (3333.HK) Lawsuit Against PwCPwC Lawsuit
A Hong Kong court allowed Evergrande's liquidators to pursue a HK$57 billion (US$8.5 billion) claim against PwC International, PwC HK, and PwC China for alleged negligence.
The court rejected PwC's application to be excluded from the lawsuit, with PwC International's maximum liability capped at HK$38 billion.
Fitch Warns of 'Redeflation' Risk in ChinaDeflation Risk
Fitch Ratings noted an easing of deflationary pressures in China but warned of a risk of 'redeflation' if domestic demand recovery remains insufficient.
Weak employment, limited wage growth, and deteriorating consumer confidence continue to structurally suppress price increases.
PBOC Injects Liquidity239.5B Yuan
The People's Bank of China injected 239.5 billion Yuan (US$33.5 billion) into the financial system via 7-day reverse repos.
The interest rate for the operation was maintained at 1.40%.
Korea
South Korea to Establish 'Future Response Fund'Chip Windfall Fund
South Korea plans to create a 'Future Response Fund' using semiconductor boom tax revenues to finance long-term growth projects.
The fund will be dedicated to initiatives like semiconductor clusters and future technology support, explicitly excluding welfare spending.
KOSPI, Won Strengthen on Nvidia (NVDA) ExpectationsKOSPI +29.97
The KOSPI index rose 29.97 points, and the Korean Won strengthened against the dollar, driven by cautious optimism ahead of Nvidia's earnings.
Korean government bond yields also declined, reflecting positive market sentiment.
India
Indian Rupee Shows Bearish SignalsRupee Weakness
The USD/INR pair is rebounding after a sharp drop, with the Reserve Bank of India's intervention showing diminishing effectiveness.
A potential cross of the 21-day moving average below the 100-day moving average signals an impending bearish shift, with downside risks increasing below 95.08.
SEBI Sanctions JPMorgan (JPM) AffiliateJPMorgan Sanction
India's Securities and Exchange Board (SEBI) sanctioned a JPMorgan affiliate for alleged price manipulation in the stock derivatives market.
This marks a tightening of regulations in India's $6 trillion stock options market, the world's largest by volume.
Indian Shares Open MixedNifty +0.03%
Indian shares opened mixed, with the Nifty 50 up 0.03% and the BSE Sensex down 0.30%, as oil prices slid on Hormuz Strait reopening hopes.
Lower oil prices, reducing energy costs, supported small- and mid-cap stocks, which both rose approximately 0.2%.
Latin America
Brazil Requires Fiscal AdjustmentFiscal Adjustment
TS Lombard projects Brazil's debt to peak at 94.7% of GDP by 2034 under Lula's reforms or 90% by 2032 under Bolsonaro's scenario, indicating long-term fiscal burdens for both.
Barclays estimates a fiscal adjustment of over 2.5% of GDP (savings or tax increases) is necessary to stabilize debt by 2031.
Colombia's Constitutional Court largely upheld the 2024 pension reform bill, validating most provisions despite acknowledging procedural issues.
The lower house must re-vote on specific disputed clauses within 30 working days, potentially requiring legislative coordination if the amended version differs from the Senate's.
Vietnam
BNP Paribas, KB Kookmin Bank in Techcombank (TCB.VN) Stake Talks$2B Stake
BNP Paribas and KB Kookmin Bank are reportedly negotiating to acquire a strategic stake of over 15% in Vietnam's Techcombank, valued at around $2 billion.
Techcombank is a leading local bank with over half of Vietnam's high-income customers, making it a rare and valuable foreign entry point into the Vietnamese banking sector.
Vietnam Treasury Bond Issuance Recovers$479M Raised
Vietnam raised 12.5 trillion dong ($479 million) in a government bond auction, the highest since May, selling 73% of the offered amount.
The 5-year bonds had a 4.25% coupon, and 10-year bonds had a 4.41% coupon, with strong sales for both tenors.
Top Gainers
Detail
Expedia Group (EXPE)
The travel technology company saw a strong daily performance.
+5.44%
Dollar Tree (DLTR)
The discount retailer experienced a notable rise in its stock value.
+4.01%
Church & Dwight (CHD)
The consumer goods manufacturer posted solid gains for the day.
+3.78%
Altria Group (MO)
The tobacco company's shares climbed during the trading session.
+3.60%
GoDaddy (GDDY)
The internet domain registrar and web hosting company saw its stock increase.
+3.55%
Gartner (IT)
The research and advisory firm recorded a significant daily advance.
+3.51%
Carvana (CVNA)
The online used car retailer's stock showed strong upward movement.
+3.46%
BXP (BXP)
The real estate investment trust (REIT) saw its shares rise.
+3.43%
American Water Works (AWK)
The water and wastewater utility company posted a healthy gain.
+3.34%
Edison International (EIX)
The electric utility holding company's stock advanced.