World
Oil prices spike after US strikes on Iran

On Monday, worries about disruptions to energy markets following US airstrikes on Iran’s nuclear facilities caused oil prices to soar and Asian markets to trade lower.
As traders evaluated the events of the weekend, the dollar gained momentum as concerns about a deteriorating conflict in the unstable Middle East grew, with Iran threatening US bases there.
With a daily production of over 3.3 million barrels, Iran ranks tenth in the world in terms of oil production.
Less than half of it is exported, with the remainder being used domestically.
One of Tehran’s choices, according to analysts, if it chooses to retaliate would be to try to block the vital Strait of Hormuz, which transports one-fifth of the world’s oil production.
Both Brent and WTI, the primary US crude contract, surged more than four percent to reach their highest prices since January as trading got underway on Monday.
However, they trimmed their gains, and later in the morning, WTI was up 2.1 percent at $78.64 and Brent was up 2.1 percent at $75.43 per barrel.
MUFG economists issued a “scenario analysis” predicting a $10 per barrel spike in oil prices, warning of “high uncertainty of the outcomes and duration of this war.”
They stated, echoing the pessimistic tone of the market, “An oil price shock would create a real negative impact on most Asian economies” because many are large net energy importers.
At the break, Shanghai was flat, Hong Kong was down 0.4 percent, and Tokyo’s main Nikkei market was down 0.6 percent. Sydney was down 0.8 percent and Seoul was down 0.7 percent.
– ‘Extreme route’ –
Analysts wondered how long the dollar’s increase in value relative to other currencies would last.
Sebastian Boyd, a markets live blog strategist at Bloomberg, stated that the dollar’s downward trajectory is likely to resume if the spike turns out to be only a hasty response to what is thought to be brief US engagement in the Middle East conflict.
Although some officials warned that it was uncertain how much damage had been done, US Defense Secretary Pete Hegseth declared on Sunday that the strikes had “devastated the Iranian nuclear program.”
It follows Israel’s earlier this month air assault against Iran.
Iran would be able to harm the global economy without going the “extreme route” of attempting to block the Strait of Hormuz, according to Chris Weston at Pepperstone.
“By planting enough belief that they could disrupt this key logistical channel, maritime costs could rise to the point that it would have a significant impact on the supply of crude and gas,” he added.
Meanwhile, “while Trump’s primary focus will be on the Middle East, headlines on trade negotiations could soon start to roll in and market anxieties could feasibly build” .
– Key figures at around 0230 GMT –
Brent North Sea Crude: UP 2.1 percent at $75.43 per barrel
West Texas Intermediate: UP 2.1 percent at $78.64 per barrel
Tokyo – Nikkei 225: DOWN 0.6 percent at 38,175.63 (break)
Hong Kong – Hang Seng Index: DOWN 0.4 percent at 23,426.02
Shanghai – Composite: FLAT at 3,360.97
Euro/dollar: DOWN at $1.1505 from $1.1516 on Friday
Pound/dollar: DOWN at $1.3434 from $1.3444
Dollar/yen: UP at 146.46 yen from 146.13 yen
Euro/pound: DOWN at 85.63 pence from 85.66 pence
New York – Dow: UP 0.1 percent at 42,206.82 (close)
London – FTSE 100: DOWN 0.2 percent at 8,774.65 (close)
World
Trump gives Hamas a “final warning” on the captives.

On Sunday, US President Donald Trump issued a “last warning” to Hamas, stating that the Palestinian militant organization must agree to a settlement that will free the prisoners in Gaza.
“My demands have been accepted by the Israelis. It’s time for Hamas to come around too. I’ve told Hamas what will happen if they don’t accept. Trump stated on social media, “This is my last warning,” without providing any other details.
Hamas expressed its readiness to “immediately sit at the negotiating table” in a statement issued shortly after, citing “some ideas from the American side aimed at reaching a ceasefire agreement.”
White House envoy Steve Witkoff delivered Hamas a fresh ceasefire and hostage-resolution plan for Gaza last week, according to U.S. news agency Axios.
Although the White House has not disclosed any information on the plan, Trump stated late Sunday that “you’ll be hearing about it pretty soon,” painting a favorable picture of the talks.
“We had some excellent conversations. “There could be positive outcomes,” he informed reporters. “I think we’re going to have a deal on Gaza very soon.”
Trump sent Hamas a similar ultimatum in early March, stating that if it did not immediately release all surviving captives and give over the corpses of the murdered hostages, “it is OVER for you.”
The Hostages and Missing Families Forum, an Israeli advocacy organization, hailed the US president’s most recent action as a “true breakthrough.”
During the catastrophic October 7, 2023, onslaught on Israel, Hamas forces captured 251 prisoners, with 47 reportedly remaining in Gaza.
According to the Israeli military, 25 of them have died. Israel is requesting that their remains be returned.
– Assault on Gaza City –
Trump and Hamas’ remarks coincided with Israel’s army bombing a residential skyscraper in Gaza City on Sunday, the third in as many days, after Prime Minister Benjamin Netanyahu’s announcement that the military was “deepening” its attack on the strategic city.
When the Al-Roya tower was struck, witness Mohammed Al-Nazli told AFP that it “felt like an earthquake.”
Israeli bombardment on Sunday killed at least 48 Palestinians, according to Mahmud Bassal, spokesperson for the Gaza civil defense department.
Under the same pretext that Hamas had utilized them as observation posts, the air force has destroyed two other residential high-rises.
About 100,000 people have already fled Gaza City, according to Netanyahu, who blamed Hamas for attempting to obstruct evacuations and for using civilians as “human shields.”
Concerns that the already terrible humanitarian situation for Palestinians residing in the region may worsen have been heightened by the escalation.
Fearing for the safety of hostages said to be held in Gaza City, Israeli demonstrators flocked to the streets on Saturday to demand that their government revoke the decision to take the city.
According to an AFP count based on Israeli data, 1,219 persons were killed in the October 7, 2023 strike, the majority of them were civilians.
According to the United Nations-reliable health ministry numbers in Hamas-run Gaza, Israel’s retaliatory operation has killed at least 64,368 Palestinians, the majority of whom were civilians.
AFP is unable to independently confirm the tolls and information supplied by the Israeli military or the civil defense service because to media restrictions in Gaza and access issues in several regions.
World
Modi of India claims that relations with the US are still “very positive.”

Following US President Donald Trump’s reaffirmation of their personal friendship and his downplaying of his previous comments about “losing India” to China, Indian Prime Minister Narendra Modi said on Saturday that Washington and New Delhi still had “very positive” connections.
The trade comes amid tensions after Washington accused New Delhi of supporting Moscow’s murderous attacks on Ukraine by buying Russian oil and levied tariffs of up to 50% on Indian goods.
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Right-wing populists Trump and Modi, however, have been close since the US president’s first term.
Modi wrote on X that India and the US had a “very positive and forward-looking comprehensive and global strategic partnership” and that he “deeply appreciate and fully reciprocate President Trump’s sentiments and positive assessment of our ties.”
Trump previously declared to reporters that he “will always be friends with Modi of course.”
“The relationship between the United States and India is unique. Trump downplayed his earlier comments about “losing India” to China, saying, “There is nothing to worry about.”
Trump previously declared to reporters that he “will always be friends with Modi of course.”
“The relationship between the United States and India is unique. Trump downplayed his earlier comments about “losing India” to China, saying, “There is nothing to worry about.”
A thaw between the two Asian giants was indicated last week when Modi made his first trip to China in seven years to attend a Shanghai Cooperation Organization meeting.
Trump has come off as annoyed in New Delhi as he tries to claim credit for his alleged Nobel Prize-worthy diplomacy in mediating peace between India and Pakistan after the two nuclear-armed neighbors engaged in their deadliest confrontation in decades in May.
Since then, India, which vehemently opposes any outside intervention on Kashmir, has ignored Trump.
World
Toyota cuts its profit forecast because of US tariffs.

The impact of US tariffs caused Japanese auto manufacturer Toyota to lower its year net profit prediction on Thursday to 2.66 trillion yen ($18.06 billion).
“Due to the impact of US tariffs and other factors, actual results showed decreased operating income, and the forecast has been revised downward,” the business stated in a statement. In Tokyo afternoon trading, its stock dropped 0.6 percent.
Japan and its vital auto industry suffered a serious setback in April when the Trump administration levied a 25 percent tax on Japanese automobile imports into the US.
In July, Tokyo and Washington announced a trade agreement that would reduce that tax to 15 percent and offer some relief to the industry, although it is unclear when that agreement will go into effect.
Additionally, it is unclear if the vehicle tax and other “reciprocal” levies will be capped at 15 percent or if they will be added to the ones that were already in place prior to Trump’s trade war.
Due to an existing 2.5 percent tax on the auto industry, the current duty is 27.5 percent.
Revenues in Toyota’s first quarter from April to June were up 3.5 percent, but net income decreased by 36 percent.
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