Brent Tops $80 on Iran Strikes; Chip Rally Splits Asia
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- Brent crude rose 1% to $78.85/barrel, climbing 9% on the week and topping $80 for the first time since June 22, as US forces completed a fresh round of strikes on Iran.
- Trump declared the interim US-Iran agreement "over" before softening, saying he did not expect a return to full-fledged war — moves that partly soothed market concerns.
- Nvidia rallied 3.6% on reports China plans to allow top AI firms to buy limited numbers of its H200 chips.
- Fed funds futures now imply 38 basis points of US policy tightening this year, after June Fed minutes showed some participants saw a case for raising rates before ultimately holding steady.
- Japan's Nikkei rose 1.3% to break a three-day losing streak, outperforming the MSCI Asia-Pacific ex-Japan index, which reversed earlier gains to close 0.5% lower.
- South Korea's KOSPI swung from a 4% intraday rally to close 1% lower as Samsung and SK Hynix gains faded alongside the broader chip rally.
- Japanese 10-year JGB yields hit 2.9%, the highest since 1996, while the global bond selloff pushed US 10-year Treasury yields up 10 bps on the week.
Why it matters: The return of Iran-driven inflation carries direct Fed consequences: futures now imply 38 bps of US tightening this year. Bond holders took the hit, with Japan's 10-year yield hitting a 30-year high of 2.9%. For Asian equities, the chip rally offered a counterweight to geopolitics, but only Japan's Nikkei held onto early gains by the close.
