Key facts
- The U.S. and Iran agreed to halt hostilities and renew talks.
- Global stocks rallied and oil prices fell following the agreement.
- The Dow Jones Industrial Average reached a record closing high.
- Brent crude futures fell below $73 a barrel.
- 108 verified transits were recorded through the Strait of Hormuz over the weekend.
- Three Indian seafarers were killed in a U.S. military strike on the MT Settebello oil tanker in the Gulf of Oman.
- All but two South Korean vessels have departed the Strait of Hormuz.
- Southeast Asia is accelerating its shift to solar power due to the Hormuz crisis.
- China-Europe freight train trips bypassing Russia have increased by nearly 80% this year.
Global stock markets rallied and oil prices fell as the U.S. and Iran agreed to halt hostilities and renew talks. The Dow Jones Industrial Average closed at a record high, while Brent crude futures dropped below $73 a barrel, reflecting expectations of increased oil supply. Despite this de-escalation, vessel traffic through the Strait of Hormuz continued over the weekend, with 108 verified transits recorded. This number represents a decline from earlier in the week but indicates the waterway remains open.
The ongoing conflict has had tragic consequences, with three Indian seafarers killed when the U.S. military struck the MT Settebello oil tanker in the Gulf of Oman. Families of the deceased are seeking accountability for the sailors' deaths and are highlighting the dangerous conditions faced by Indian mariners in the region.
In response to the prolonged conflict and security concerns, South Korea announced that all but two of its vessels have departed the Strait of Hormuz. President Lee Jae Myung stated the government's decision, while also reaffirming support for a major semiconductor cluster project.
The crisis around the Strait of Hormuz has also spurred a rapid transition to solar power in Southeast Asia. This shift is driven by a desire for energy independence and price stability, positioning China favorably due to its manufacturing dominance in clean energy technology.
Separately, China-Europe freight train trips bypassing Russia have surged by nearly 80% this year. This increase is attributed to the demand for reliable trade routes amidst geopolitical uncertainty and disruptions to shipping services.