On Tuesday (14 July, 9:23 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific retreated as investors reacted to heightened instability in the Middle East after President Donald Trump announced a renewed U.S. blockade on Iranian maritime activity in the Strait of Hormuz. The move, including a plan to apply a 20% fee on all shipments through the critical waterway, drove oil prices upward and rattled global equity benchmarks.
Trump declared the renewed blockade would specifically target Iranian vessels and its trading partners, with the policy officially taking effect at 4 PM Eastern Time (Tuesday stateside), according to U.S. Central Command. He further stated that the U.S. would dismantle Iran’s operational capacity in the strait and asserted control over the vital shipping lane, emphasizing America’s role as its “guardian.”
Additionally, the start of the latest corporate earnings season, coupled with upcoming U.S. inflation figures and Federal Reserve Chair Kevin Warsh’s appearance before Congress, all add to market sensitivities regarding future monetary policy direction.
Consensus among economists polled by Bloomberg suggests U.S. consumer price growth moderated to 3.8% year-over-year in June, down from a 4.2% annual pace in May, with the data set for release on Tuesday.
Japan’s NIKKEI declined by 0.31% to 67,035.67. South Korea’s KOSPI dropped by 0.89% to 6,746.62, and Australia’s ASX 200 fell by 0.35% to 8,777.60.
As for stocks in China, Shanghai’s SSEC lost 0.19% to 3,906.32. Hong Kong’s HSI slid by 0.25% to 24,153.34, while Shenzhen’s SZI climbed by 0.13% to 14,541.93.
The U.S. stock markets edged down on Monday as the Dow Jones Industrial Average (DJIA) contracted by 0.26% to 52,498.64. NASDAQ slumped by 1.55% to 25,873.17, and S&P 500 plummeted by 0.79% to 7,515.34. VIX jumped by 14.17% to 17.16.
As for commodities, oil prices settled higher on Monday, closing at their highest level in a month, as reports emerged that the upcoming U.S. naval blockade will extend across Iran’s entire stretch of coastline, including its ports and oil terminals. The measures have raised renewed uncertainty about the security of energy supplies passing through the Strait of Hormuz. Brent crude finished the session higher by $7.29, or 9.59%, reaching $83.30 per barrel. U.S. West Texas Intermediate crude advanced $6.73, or 9.42%, settling at $78.14 per barrel.
This morning, Brent futures advanced 66 cents, or 0.79%, to $83.96 per barrel, and the WTI futures expanded $1.05, or 1.34%, to $79.19 per barrel.
Meanwhile, gold futures increased by 0.35% to $4,019.80 per Troy ounce.
