The Strait of Hormuz Reignites Concerns: Iran’s threats to punish Israel for the assassination of Ismail Haniyeh,
the leader of the Palestinian Hamas movement in Tehran
has once again raised fears of potential risks to the Strait of Hormuz.
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The Strait of Hormuz Reignites Concerns
Iran’s threats to retaliate against Israel for the assassination of Ismail Haniyeh,
the leader of the Palestinian Hamas movement in Tehran,
has once again sparked fears about the security of the Strait of Hormuz.
The Strait of Hormuz, bordered by Iran to the north and the UAE and Oman to the south,
is crucial for global oil trade.
According to Bloomberg data, tankers shipped approximately 15.5 million barrels per day of crude oil
and condensate from Saudi Arabia, Iraq, Kuwait, the UAE, and Iran through the strait in the first quarter of 2024.
The strait is also vital for liquefied natural gas (LNG),
as more than a fifth of the world’s supply—mainly from Qatar—passed through it during the same period.
China Keeps Key Interest Rates Unchanged
China has kept its key loan interest rates unchanged, per market expectations.
Beijing maintained the one-year loan prime rate at 3.35% and the five-year loan prime rate at 3.85%.
Most new and outstanding loans in China are based on the one-year loan prime rate,
while the five-year rate influences mortgage pricing.
In July, China surprised markets by lowering
its short- and long-term key interest rates for the first time in nearly a year,
signaling policymakers’ intent to boost economic growth.
Trump Vows to Raise Tariffs on Imports if He Returns to the White House
Former U.S. President and Republican presidential candidate Donald Trump
has reiterated his intention to increase tariffs on imported goods despite criticism from Vice President Kamala Harris,
his rival on the Democratic ticket.
Harris described the plan as “Trump’s tax,” which would lead to higher consumer prices.
Her criticism aligns with many economists who argue that raising tariffs would impose a financial burden on ordinary consumers,
as the cost of imported goods will likely rise.
Nevertheless, Trump insists that his plan will not negatively impact consumers despite widespread concerns.