US Strikes Iran, Blocks Oil Sales | The Asia Trade 7/8/2026

Summary

The episode covers US air strikes on Iran and the revocation of Iran's oil sales waiver, fueling geopolitical risk premiums and an oil price spike. A tech selloff deepens as AI valuation concerns trigger rotation out of semiconductor hardware. Asian markets come under pressure, with notable weakness in Korean memory stocks. Central bank decisions remain in focus, with New Zealand expected to hike and a close eye on Japan's fiscal and inflation risks.

• US launches new strikes on Iran and revokes its oil sales waiver, causing oil to spike and European gas futures to jump.
• Renewed Middle East tensions drive safe-haven dollar demand and weigh on Asian risk assets.
• AI overcapacity fears trigger a sharp US semiconductor selloff, dragging Asian chipmakers and the Kospi lower.
• Korea's record Samsung profit fails to revive memory trade; extreme positioning raises unwind risk.
• Rotation from hardware to software and hyperscalers penalizes Asian markets heavily weighted in tech.
• New Zealand's central bank expected to hike rates by 25bp to cool emerging inflation.
• China considers restricting overseas access to advanced AI models; DeepSeek looks to design its own chips.
• Rocket Lab CFO outlines strong growth, Neutron rocket progress, and end-to-end space strategy.
• Natixis strategist sees further yen weakness and value in the belly of the US Treasury curve.