Key facts
- Oil tanker exploded in the Strait of Hormuz after striking a mine.
- Shipping attacks are increasing, driving tanker rates to record highs.
- China's Q3 GDP grew 4.5%, beating expectations.
- Trump waived some sanctions on Russia, creating uncertainty about oil shipments.
Oil futures declined as President Donald Trump's temporary waiver of Russia sanctions created market uncertainty regarding potential increases in Russian shipments. Trump himself expressed ambiguity about his decision, stating it was still being figured out. Secretary of State Marco Rubio indicated officials require more time to assess the economic impact of the waived sanctions.
Meanwhile, geopolitical tensions in the Strait of Hormuz escalated as Iran reported an oil tanker exploded after striking a naval mine. The UK Maritime Trade Operations noted a daily increase in attacks on shipping, leading to record tanker rates and higher insurance costs.
In Asia, China's economy grew 4.5% in the third quarter, slightly surpassing forecasts, with retail sales up 1.1% and industrial output at 5.5%. The yuan strengthened to its highest level since July 2022.
Investors are looking to a wave of company earnings this week, with the tech sector anticipated to report 65% growth. Meta is expected to report its results on Wednesday, facing scrutiny over its revenue guidance and capital expenditure plans.