Global Stock Markets

fortune.com reports that the Strait of Hormuz crisis forced Asian economies to rewrite their energy playbooks after six months of disruption following U.S. strikes on Iran and subsequent threats to shipping. The conflict exposed the vulnerability of a twenty-mile-wide waterway handling roughly a fifth of global oil trade, over eighty percent of which went to China, India, Japan, and South Korea. Governments responded by imposing export bans, cutting import duties, and rationing fuel as cheap drones threatened multibillion-dollar energy infrastructure. Importers are now shifting from just-in-time to just-in-case supply chains, with Japan investing in Australian liquefied natural gas through companies like Inpex while oil majors such as Woodside and Chevron capture rising demand. Meanwhile, producers are building pipelines and ports in Saudi Arabia to bypass the strait, aiming to reduce dependence so that only ten percent of global oil must transit the channel. Gas remains the more vulnerable commodity because it lacks alternative pipeline routes, leaving exporters like Qatar scrambling for diplomatic openings while maintaining fast recovery plans.

QatarEnergy has extended its force majeure on liquefied natural gas deliveries as the Strait of Hormuz remains blocked to gas traffic, according to oilprice.com. Buyers in Pakistan and Bangladesh were notified this week that cargo cancellations will continue through October, while Edison of Italy faces extensions into early November. Six months since the Iran war crippled exports, Qatar has lost $24 billion in sales as shipments tumbled by as much as 96 percent. ICIS data cited by Reuters show Qatari exports crashed to just 18 cargoes, down from 509 cargoes in the same period last year. Unlike crude oil, which producers have moved via alternative routes and ship-to-ship transfers, LNG cannot be shuttle-shipped through Hormuz.

Centralbanking.com reports that the Bank of Botswana held its key interest rate at 5.5 percent on August 27. On the same day, the National Bank of Rwanda raised its policy rate by 50 basis points to 8.75 percent. Both central banks pointed to upside inflation risks stemming from the El Niño climate pattern and ongoing Middle East tensions. The hold in Botswana contrasted with market expectations from Trading Economics, which had forecast a 200 basis point move.

oilprice.com reports that US President Donald Trump stated he is not concerned about Russia attacking NATO and insisted Vladimir Putin will not strike alliance territory. Trump told reporters in the Oval Office on August 27 that he had engaged in good talks with Putin. The remarks follow a surprise visit to Moscow by CIA Director John Ratcliffe on August 25. Sources briefed on the visit confirmed Ratcliffe flew to Moscow to urge the Kremlin against escalating with US allies, particularly Estonia, Latvia, and Lithuania. Trump denied that Ratcliffe issued any warning, telling Axios that the CIA director meets his Russian counterpart periodically and that there was nothing unusual about the trip. Meanwhile, the Pentagon is pressing European allies to assume greater responsibility for conventional defense as Washington reviews its military posture in Europe. US Defense Under Secretary Elbridge Colby visited NATO headquarters in Brussels on August 27 to discuss European efforts in taking the forefront in protecting the continent.

Oilprice.com reports that vessel traffic through the Strait of Hormuz remains severely depressed as Iran and Oman discuss establishing a temporary shipping corridor. Only five commodity vessels transited the chokepoint on Tuesday, matching Monday's low and trailing far behind the ten-day average of 15 ships according to Kpler data. China absorbs roughly 65% of oil exports moving through the strait, according to Windward figures. Foreign ministers from Oman and Iran discussed a framework involving a joint temporary navigational corridor and a mine-clearing project. Despite these talks, Iran warned early Wednesday that the waterway will stay closed unless the United States ends the war.

Oilprice.com reports that three of China's top solar market players posted deepening losses over the first half of the year as chronic overcapacity runs into softening domestic and international demand. New solar power capacity additions in China dropped to 72.07 GW during the period, falling sharply from 212.2 GW a year earlier due to an unusually high base created by a rush ahead of a June 2025 electricity-pricing reform. At the same time, the removal of export tax rebates by Beijing in April and intensifying U.S. trade barriers squeezed overseas shipments, causing Chinese solar equipment exports to decline by 21.4 percent last year from a year earlier. Jinko Solar, JA Solar Technology, and Tongwei are navigating structural overcapacity while the actual effects of industry consolidation have yet to materialize. Despite the slowdown in new installations, total solar power capacity reached 1,274 gigawatts as of the end of June, placing it just below China's 1,275 GW of total coal-fired installed capacity.

channelnewsasia.com reports that South Korean exports likely extended their robust growth in August to mark a 15th consecutive month of gains, driven by surging global demand for AI chips. A median forecast of 10 economists projected that exports from Asia's fourth-largest economy rose 62.6 per cent in August from a year earlier. The gains continued to be anchored by memory chip giants Samsung Electronics and SK Hynix, which are benefiting from climbing prices fueled by the AI investment boom. Meanwhile, automobile exports will likely experience a slight slowdown, impacted by factors such as labour strikes in the automotive sector. The monthly trade surplus was forecast at a median $30.74 billion.

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