Oil Rises as Trump Resumes Hormuz Blockade | The Asia Trade 7/14/2026

Summary

The Asia Trade covers the market impact of a sharp escalation in the US-Iran conflict, with Brent crude breaking above $85 as Trump reimposes a Hormuz blockade and demands a 20% shipping toll. Rising oil prices revive inflation fears and bets on a Fed rate hike, while a severe sell-off in SK Hynix and Korean chip stocks underscores tech valuation worries. The turmoil triggers a rotation into undervalued Chinese internet names and standout Thai equities. Bank of Singapore’s CIO remains positive on China for AI and renewables capex, and TSMC's strong sales confirm resilient AI demand.

• US-Iran war intensifies; Trump reinstates Hormuz blockade and proposes a 20% transit fee, oil spikes above $85.
• Fed's Waller warns of potential rate hike if core inflation stays hot; July hike probability jumps to near 50%.
• SK Hynix plunges a record 15% in Seoul, ADRs drop 9%; Philadelphia Semiconductor Index loses ~5% overnight.
• Korean equity volatility triggers multiple circuit breakers; leveraged ETFs suffer massive losses.
• Investors rotate out of Korean tech into cheap Chinese internet names; fund managers cite valuation catch-up.
• Thailand emerges as a top global performer, up ~30%, driven by AI supply chain exposure and political stability.
• Bank of Singapore CIO Jean Chia stays positive on China, citing AI ecosystem diversification and renewables capex.
• TSMC reports 36% quarterly sales growth, meeting high expectations; strong AI demand supports margins and possible guidance raise.