Iran's foreign ministry spokesman said an understanding with Oman on a new shipping route does not imply the opening or closure of the Strait of Hormuz.

CITIC Securities says having missed this round’s rate-hike window, US equity valuations face near-term pressure regardless of whether the Fed hikes in September; medium-to-long term, realized rate hikes could relieve valuation suppression. The Productivity and Employment Task Force’s positive tilt toward AI supports a durable US AI narrative. At the July 29 FOMC the Fed held for a fifth meeting; three voters supported a 25bp increase, signaling publicized internal divisions and a market split of short-end dovishness versus long-end hawkishness. Rising inflation expectations are capping the dollar and may open a window for Japan MOF FX intervention. Strong growth in CSP cloud businesses partially eases concerns about the sustainability of AI’s large capex. Rate-sensitive sectors, high-valuation/low-growth segments and small caps are under pressure; the next potential liquidity pivot is Jackson Hole at end-August or the September policy meeting.

On Aug. 2 Iran’s foreign minister Araghchi told a cabinet meeting negotiations with Oman on arrangements to manage safe navigation in the Strait of Hormuz are progressing smoothly, have entered a final stage and are nearing completion. On July 26 Iran’s foreign ministry spokesman Baghaei said talks with Oman on common principles and operational mechanisms for Strait of Hormuz maritime security were productive and had made some progress. Araghchi spoke by phone on July 27 with the foreign ministers of Oman and Saudi Arabia to discuss the Strait and stressed the need to strengthen cooperation.