Trump Seeks Tariffs on Iran Amid Escalating Tensions

Hostilities between the US and Iran continue to escalate as President Donald Trump calls on Congress to add tariffs on Iran to a sanctions bill against Russia and Tehran, which has bipartisan support. The proposed duties are likely to have little effect on Iran's economy, given that the US imports nearly nothing from Iran.

Data from the Office of the U.S. Trade Representative showed that in 2025, the US imported just $1.4 million in goods from Iran, with works of art, collectors' pieces, and antiques making up 55% of those imports. Meanwhile, signs of a recovery in crude flows through the Strait of Hormuz are easing supply concerns, causing oil prices to extend declines.

Elsewhere in Asia, China's factory activity contracted unexpectedly in July for the first time since February, weighed by a slump in domestic orders and production disrupted by typhoons. The Bank of Japan kept its policy rate steady on Friday, while warning that the country's core inflation could exceed its 2% target.

Asian markets saw a resurgence in tech stocks with South Korea's chip heavyweights SK Hynix and Samsung Electronics surging over 20% on Friday, following huge gains in US technology stocks driven by blockbuster earnings from Amazon and Microsoft.