US Treasury Secretary Scott Bessent launched 'Operation Economic Outcast,' a sweeping sanctions package targeting roughly 60 Iran-linked entities across oil, finance, technology, and shipping networks, stopping short of directly sanctioning China as Iran's largest oil buyer and thereby limiting immediate escalation risk. Separately, Iran and Oman reported progress toward a temporary secure maritime corridor through the Strait of Hormuz, pushing Brent crude down for a third consecutive session — its largest weekly decline since June — to around $88.58/bbl, while gold held near three-month highs above $4,638/oz and Bitcoin briefly exceeded $80,000 on debasement-trade flows tied to US fiscal concerns and Treasury long-bond buybacks. The VIX eased 2.52% to 15.45, reflecting broadly constructive risk sentiment, though the Nikkei VIX spiked 8.11% to 30.41, signalling pockets of residual unease in Japan. The RBA remains explicitly 'jittery' on upside inflation risks, particularly if Middle East tensions re-elevate fuel prices, leaving further rate hikes on the table ahead of Wednesday's Australian CPI release.
For Asia-Pacific markets opening today, the combination of falling oil prices, easing US 10-year yields (down 4bp to 4.70%), and a broadly positive overnight Wall Street session — S&P 500 +0.32%, Nasdaq +0.66% — sets a constructive tone, with the ASX 200 having already closed Tuesday up 0.68% at 9,164.6. Copper's 1.67% overnight surge to $6.71/lb and aluminium's 0.39% gain to $3,419.25/t are directly supportive for ASX-listed resources and miners, while lower oil provides margin relief across transport and consumer-facing sectors. However, the Hormuz corridor talks remain unresolved, the RBA's inflation vigilance keeps rate-sensitive ASX sectors — banks and REITs — on a tight leash, and all regional eyes will turn to today's US Core PCE print (forecast 0.2% m/m) and Nvidia's after-bell earnings as the next major catalysts.