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US-Iran claim that the control of Hormuz is a major factor in oil prices after tanker attacks
Crude oil prices rose on Friday, mainly due to renewed attacks against tankers and a verbal war between the Trump administration and Iran's leaders. Brent futures rose 80 cents or 0.92% to $87.87 per barrel at 10:48 am CT (1548 GMT), whereas U.S. West Texas intermediate crude futures increased 43 cents or 0.53% to $81.69 per barrel. Brent and WTI are on track to gain 5.09% a week and 4.37% a week, respectively. Bjarne Shieldrop is the chief commodities analyst for SEB Research. He said that higher oil prices are a result of U.S. policy towards Iran. This latest approach 'implies little hope for a resolution in the near future,' he added. The U.S. announced on Thursday that it could maintain a blockade against Iran indefinitely, and put more economic pressure on Tehran as a result of the stalled ceasefire negotiations. "Watch this space because more announcements are coming next week," said Scott Bessent, Treasury Secretary on Newsmax's program "Rob Schmitt Tonight." Schieldrop stated that "a return to normal flow out of the Strait?of Hormuz" is no longer a near-term hope. TRAFFIC SLOWS DOWN THROUGH STRAIT. As the U.S. claimed control over the strait and Iran claimed the opposite, the shipping traffic in the channel dropped below the average for the month. The strait was responsible for about a fifth of the world's oil and liquefied gas before U.S./Israeli attacks began on Iran in late February. The state-owned Abu Dhabi National Oil Company's two vessels were attacked Thursday while they transited the strait, according to the United Arab Emirates' WAM state news agency. Phil Flynn is a senior analyst at Price Futures Group. He said, "That headline is what pushed prices up: Tankers were attacked." Three sources said that the?drone attack on the Sheskharis terminal in the Black Sea port Novorossiysk caused the suspension of crude oil exports. This was a major disruption at one of Russia's main export outlets. Flynn also said that the Ukrainian attack against?the Port of Novorossiysk boosted prices. OPEC forecasts indicated a weaker growth in demand, and U.S. crude inventory posted its largest weekly rise in over 3-1/2 years. The IEA's and?EIA's reports this week were very revealing. Norbert Rucker is the head of economics at Julius Baer. He said that storage has held up "much better" than expected, and this should help to lower oil prices. Reporting by Erwin Seba, Mohi Nrayan, and Helen Clark, in Houston; Editing by Mark Potter. Barbara Lewis, Paul Simao. Rod Nickel.
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Since 2021, the scarcity of copper and pre-expiry drives has increased.
Investors covering bearish positions drove 'prompt copper price into the most extreme reversal?since 2021, on Friday. This was ahead of a benchmark contracts expiration next week. Backwardation, a market structure in which?prices? for prompt delivery are higher that those further ahead, highlights a severe shortage of inventories. The cash LME copper contract premium is the difference between the forward three-month price and the cash LME copper contracts. The price of a metric tonne has risen to $434, from $45 just two weeks earlier. This is the highest since October 2021 when it was at more than $1100. Alastair Munro is a senior base-metals strategist with broker Marex. He said: "The curves for copper are tight, and trade shorts have no choice but to buy outright or roll over their positions." Investors who are short or bearish can buy back positions or roll them over before next Wednesday expiry. But physical metal is scarce. Stocks outside of the U.S. Since months, traders have been positioning for the threat of U.S. Tariffs. The situation has also been exacerbated by a breakdown at Freeport Indonesia’s Gresik smelter which processes copper from the Grasberg Mine. LME copper stock Since late May, the total weight of these products has decreased by almost 50% to 204 975 tons. LME's available copper stocks (those that are not earmarked for disposal) have fallen even further to 94,875 tonnes, which is slightly more than a day's global consumption. The LME has established procedures for managing low-stock situations, such as those currently seen on the copper market. COMEX stocks of copper are a large part of the exchange inventories in the United States The number of short tons has risen by 47%, reaching a record high of 733,653 (665,558?metric tons). The tightness in the market was only reflected by a 0.1% increase on Friday for the benchmark three-month contracts, as traders expected it to be a short-term issue before next week's expiration. (Reporting and editing by Barbara Lewis, Tom Daly, Polina Devitt)
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Fuel subsidies announced for the transport sector in Peru amid protests against rising prices
Keiko Fujimori, the Peruvian President, said that the government would 'implement short-term fuel subsidies for drivers working in the cargo and passenger transport sector. This is to help offset the cost increases which have sparked protests across the country. Fujimori stated that the subsidies would begin Saturday and last for three months. The levels will vary between 15% to 20%, depending on price fluctuations. Fujimori, in a joint press conference with Economy Minister Elmer Cuba, said: "This is a direct support, particularly to those who most need it." This is a temporary measure to offset the dramatic increase in fuel costs. This comes after protesters and transport workers blocked roads in Pucallpa and set tires ablaze on Wednesday, in response to the steep rise in fuel prices. Local groups have also gone on strike in the eastern region Ucayali to demand government action to'mitigate higher prices which?they claim are squeezing businesses and households far from Lima. (Reporting and editing by Kylie Madry; Marianna Hernandez and Marco Aquino)
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Britain may ease 2030 zero-emission car targets
Britain announced a number of options on Friday that could help ease pressure on automakers to switch new sales over to zero-emission cars. The review was launched of the 'existing targets' which gradually phase out new petrol and diesel vehicles. Introduced in 2024, the mandate requires automakers to increase their sales of zero-emission cars. EVs will account for 33% in 2026, 80% by 2030, and 100% in 2035. The policy is intended to speed up the transition of the industry to electric vehicles. Manufacturers who fail to meet the targets will be fined. The carmakers have argued that the supply-chain disruptions, and lack of consumer demand, make it difficult to meet these requirements. On Friday, the government launched a consultation to gather industry views on four different paths for achieving the targets. Three of the four options would keep the 2035 target but reduce the 2030 goal to as little as 50%. The fourth option would be to 'keep the current path, but introduce new flexibility for manufacturers in order to comply. In the context of complex and challenging global economic conditions including supply chain disruption, tariff and trade uncertainties, the UK is reviewing its targets to ensure that they are pro-business and grounded on the real world, according to a statement from the Department for Transport. The Society of Motor Manufacturers and Traders (SMMT) has argued previously for an urgent revision of the entire mandate. They said that higher energy 'prices, inadequate charging infrastructure and low consumer confidence held back a?demand despite manufacturers providing?substantial discounts? on EVs. Last year, the Labour government, who inherited the ZEV policies from the Conservative Party after it came to power in 2024 introduced a series of 'technical changes' that made it easier on manufacturers to reach the targets. New AutoMotive published data earlier this month showing that battery EVs made up 27.4% new car registrations. This showed that sales exceeded the required level for compliance when existing flexibility within the mandate was taken into consideration.
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Yonhap reports that SK Group Chairman Chey has appealed the divorce settlement decision.
SK Group Chairman, Chey 'Tae-won, has appealed a South Korean court ruling? ordering him to?pay 944 billion won ($668.52 mln) in a divorce settlement record, according to the Yonhap News Agency, citing his attorneys. The Seoul High Court ruled late in July that Chey'should' make the cash payment in order to divide marital assets while retaining his shares of SK Inc., the holding firm of South Korea’s second largest conglomerate. The Supreme Court ruled that the alleged 'funds' from Roh Taewoo, the former president of South Korea, were not protected contributions by law. Chey’s appeal could prolong a closely-watched case, which has brought investor attention to Chey’s control over SK Group. This case is attracting attention due to the AI boom that has increased the value SK Group's semiconductor assets - and, therefore, Chey Holding Company's stake. SK Hynix is a'major supplier' of high-bandwidth memories (HBMs) used in AI processors. It has been one of the biggest beneficiaries?of the global demand for AI infrastructure. The chipmaker listed American depositary shares in Nasdaq on July. This broadened its access to global investors following a surge? in its market value that was linked? to the AI rally. ($1 = 1,412.0800 won) (Reporting and Editing by Alison Williams and Aidan Lewis; Additional Reporting from Hyunsu YIM in Barcelona)
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Rolls-Royce and Reliance will develop a combat engine for fighter aircraft
Reliance Industries announced a partnership with Britain's Rolls-Royce on Friday to develop and produce an engine for India’s fighter jet programme. The?country is aiming to build its most advanced stealth combat aircraft. The Advanced Medium Combat Aircraft prototype is expected to be ready in 2028. It will play an important role in India's air combat strategy. India approved last year a framework to build its most advanced stealth jet fighter and invited interest by defence firms weeks after a conflict with Pakistan, a nuclear-armed neighbor. The country has also approved the model of the Advanced Medium Combat Aircraft (AMCA), a programme that will allow domestic companies to take part in the development of the twin-engine stealth aircraft. In the proposed partnership announced Friday, Reliance will work with Rolls-Royce to form a dedicated gas turbine complex for aerospace in India. The engine would be jointly developed. Anant Ambani, Reliance's Executive Director, said that the company and Rolls-Royce were working together to create an "indigenous aero-engine ecosystem" in India. The announcement could position the British aero-engine manufacturer against France's Safran. Safran has proposed separately a joint venture with India's GTRE, a state-run company. This would develop a more powerful engine for future versions of the AMCA. General Electric has had supply chain problems that have caused delays in the delivery of engines to Hindustan Aeronautics, which manufactures the Tejas fighter aircraft. Rolls-Royce has supplied engines to a range of civil and defence aerospace applications.
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Wildfires in Britain reach record levels following intense heat
Fire chiefs warned on Friday that wildfires have reached a record level in England and Wales. They also warned that rescue services are struggling to keep pace with the?rising?risks, a day after blazes spread from tinder dry fields to engulf homes on the hottest day. Britain is not facing the same devastation as Spain, France, and other parts of Europe, but it is experiencing its fifth heatwave in what is expected to become its hottest summer ever. It is also dealing with more fires than ever before. Phil Garrigan of the National Fire Chiefs Council said that the number of fires has now exceeded the total of last year of 1,017. Garrigan, without revealing the latest figures for this year, said: "We have far exceeded the previous high of 2025." "At this point in time, we're still in August and it seems that the wildfire season will extend into November." We're expecting this to be not only a record-breaking, but also a significant increase in the number of fires. Andy Burnham, the Prime Minister of England, urged the public to be extra careful during his visit to Stourbridge. This is one of many?locations in England where homes were destroyed on Thursday and hundreds of people evacuated. He warned that "Britain right now is a tinderbox." This is by no means over. "We have 37 fires burning around the country." Residents tell of trees exploding in flames One Stourbridge resident describes the moment his family and he decided to leave their home. "I heard a shout, and the trees were exploding along the railroad track. The trees weren't only on fire; they were also exploding. Paul Nash's garden was damaged. According to the government, Britain is on course for its hottest ever summer. Five heatwaves have caused around 45 million people to live in drought-affected areas and 27 millions people are facing restrictions on their water use. Met Office reports that temperatures in London reached 38.2 degrees Celsius on Thursday. This is the fifth-hottest day ever recorded for the United Kingdom. Pershore, a market town in central England, also reached 38 C. Flames tore across homes and fields. On Thursday, a major motorway had to be temporarily closed and the train schedules were also affected. Officials are yet to confirm if the heat was a factor in causing a train to derail in southern England. Garrigan stated that "we've declared eleven major incidents in the last 24 hours." "The requests and requests for support probably outstripped our capability as the UK fire and Rescue service... we have struggled to provide fire and emergency services with exactly what they need." Burnham stated that fire services worked alongside military forces in certain areas, and he will hold a summit to ensure emergency services have the resources they need.
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US retail sales decline for the first time in nine months, in July
Retail sales in the United States fell for the first nine months in July as the boost from large tax refunds faded. This suggests a significant slowdown in spending by consumers at the beginning of the third quarter. It was also a payback for Amazon's decision to move its Prime Day event from July to June, while other retailers offered competing promotions. Gasoline prices have also fallen, which has affected service station receipts. The report, which added to the unexpected job losses and mild inflation figures from last month, boosted financial market expectations of a Federal Reserve rate hike in September. This is assuming that August's price and employment data are not surprising. Sal Guatieri is a senior economist with BMO Capital Markets. This, along with a weaker job report and subdued CPI core inflation, increases the odds that the FOMC will remain patient in September. The Census Bureau of the Commerce Department reported that retail sales fell 0.6% in July after an unrevised gain of 0.2% in June. This was the first decline since October last year and the largest one in 14 months. Retail sales, which are mainly goods and not adjusted for inflation but are a major part of retail sales, were expected to increase by 0.1%, according to economists polled. Estimates ranged between a 0.5% decline and a 0.7% rise. Retail sales in July increased by 5.0% on an annual basis. Economists say that consumers are more?sensitive to price increases and are making more deliberate and selective purchases. Sales at non-store retailers fell by 2.2% in the last month. Motor vehicle and parts dealers saw their receipts plummet by 1.8%. Sales at electronic and appliance stores dropped by 0.5%, while receipts at service station fell by 0.9% due to lower gasoline prices. Clothing sales rebounded by 1.9% in the last quarter, likely due to back-to school shopping. CONSUMERS STILL Eating Out The only component of the report that deals with services, receipts from food and drink establishments, increased by 0.5%, after increasing by 0.4% in June. This category is a key indicator of household finances. Sales at retailers of furniture, building materials, garden equipment, and supplies, as well as health and personal care stores, increased. The sales of?sporting good, hobby, musical instruments and book retailers remained unchanged. The generous tax refunds in this year have helped soften the blow of higher gasoline prices due to the Middle East conflict. This has led to a robust second quarter in consumer spending. The economists say that these refunds are 'exhausted. They did not expect a drop in consumer spending, but a stock-market rally had boosted household wealth. S&P 500 has increased by 14% this year, after rising 16.4% in 2025. PNC Financial economists said that an analysis of bank data revealed that households were more sensitive to gasoline price increases in July than they had been earlier in the year. This created a less favorable backdrop for spending during the second half of this year. They said that it was "difficult" to imagine a scenario in which spending would truly roll over, given the increase in household wealth. The researchers also pointed out that "increasing evidence" showed upper-income households and older households using wealth gains as a way to fund spending. Retail sales, excluding automobiles, gasoline and building materials, fell by 0.4% last month, after an upwardly revised 0.4% rise in June. Economists had forecast that these core retail sales, the component most closely associated with consumer spending in gross domestic product (GDP), would rise 0.3%, after an earlier reported 0.5% growth in June. In the second quarter, consumer spending, which makes up more than two thirds of the GDP, grew at an annualized rate of 3.2%. Last quarter, the economy grew by 1.5%.
France prepares for fourth major heatwave, as crews battle Bordeaux fire
The fourth heatwave in France this year is expected to hit on Tuesday. High temperatures and dry conditions in the southwest of France will put pressure on firefighters battling the massive wildfires that are raging across the Bordeaux region. According to Climate Monitor, temperatures in Bordeaux will reach 33 degrees Celsius during the day. This is 7 degrees higher than the average between 1961 and 1990. "The situation that we are facing today is the worst we've ever seen, the most difficult since the Second World War," said President Emmanuel Macron on Monday night, after flying to the region. Nathalie Deattre, senator for Gironde (which includes the city of Bordeaux), said that fire crews contained the flames overnight but that the situation was still difficult.
She told BFM Television on Tuesday that "everything depends on how well the firefighters perform on the ground."
France is experiencing a wildfire season unlike any other. The fires have already surpassed 2022's previous record year.
The Landes region, southwest of Bordeaux is covered with pine forests that are highly flammable if they become dry. So far, the fire has destroyed 42,000 hectares.
About 220,000 people have been evacuated, including tourists and local residents.
The situation in Biscarrosse has improved. About 15,000 people who were evacuated last week are now allowed to return home.
"However, the (positive) development does NOT mean that the risk has been eliminated. Flare-ups are still possible, especially due to weather conditions. ")," the report said.
Meteo France, the weather service, said that temperatures would increase from the afternoon onwards and reach a maximum of 37 degrees Celsius by Wednesday.
In a recent post on X, the social media platform, Interior Minister Laurent Nunez revealed that French authorities had jailed a man in connection with the wildfires still burning in the Var region.
Nunez stated that 184 individuals have been arrested since the start of the wildfires season. (Reporting by Yves Herman; Additional reporting by Charlotte van Campenhout, Editing by Andrew Heavens; Reporting by Manuel Ausloos; Inti Landauro; Sarah Meysonnier)
(source: Reuters)