Oil prices moderate as Trump pulls back on tolling Hormuz threat - but continues with blockade
Wednesday, 15 July 2026
While we slept
US President Donald Trump said in a social media post he had swapped a 20% protection fee for ships to transit the Strait of Hormuz - an idea he sprung on the world yesterday - with “trade and investment deals that the various Gulf States will be making into the United States”.
Crude oil prices eased on the news, although they have since ticked up again. Brent futures, the international benchmark, are currently trading at US$85.40.
But fighting continues in the Strait, with the US hitting targets along Iran’s coast before reimposing its blockade against Iran at 8am Wednesday, New Zealand time.
Meanwhile, IBM shares slipped 23% overnight after the hardware, software and consulting provider missed expectations with its second-quarter results.
The tech company reported adjusted earnings of US$2.93 a share on revenue of US$17.2 billion, below analysts’ expectations for earnings of US$3.01 a share and revenue of US$17.86b, according to FactSet.
CEO Arvind Krishna blamed the shortfall on weakness in the software and infrastructure business, as clients shifted spending toward hardware purchases such as memory chips, CNBC reported.
Market Summary
In n New York, a semiconductor stock surge boosted markets, as did weaker-than-expected June inflation data that saw the measure drop 0.4%. The S&P 500 wasy up 0.39%, the Nasdaq was up 0.94% and the Dow Jones advanced just 0.08%.
The pan-European Stoxx 600 finished Tuesday up 0.2%.
Asian markets were positive, with mainland China’s CSI 300 up 2.15% at the closing bell on news the country’s exports in June jumped at the fastest pace since 2021, driven by AI boom and a tariff rush that lifted trade. Hong Kong’s Hang Seng index closed 0.6% higher. Both Japan’s Nikkei 225 and South Korea’s Kospi both advanced 0.7% at Tuesday’s close.
Back here, New Zealand’s S&P/NZX50 dropped 0.52% on a muted trading day on Tuesday, despite some reasonably positive local data points.
During the day, data pointed to a fragile economic recovery finding its feet. The services sector was back in growth, but only just; NZIER’s Quarterly Sentiment of Business Opinion showed an improvement in some ways, although hiring still looked muted and pay growth was unlikely in the short term. There was a slight reduction in net immigration to Australia and a small uptick in visitors. The Government announced it would seek submissions to some planned changes aimed at reviving the country’s capital markets.
Decliners included Savor Group, which dropped 9.09% reflecting exposure to discretionary spending. Move Logistics, another stock with the same pressures, fell 9%. New Talisman Gold Mines retreated 8.33% and Rua Bioscience fell 7.14%.
Gainers included Steel & Tube, up 6.06%, while Skellerup rose 5.67% after a major earnings upgrade. Synlait Milk gained 4%, Santana Minerals slipped up 2.75% and Vista Group advanced 2.55%.
The S&P/ASX 200 closed broadly flat on Tuesday, shrugging off events in the Strait of Hormuz to a large degree. Top gainers included US-based gambling and gaming play Light & Wonder, which rose 7.98% on a positive growth outlook. Karoon Energy jumped 5.67%, mirroring the movement of similar crude benchmarks following escalating political tensions in the Middle East.
What’s up today
Electronic card data and vehicle registration data for June will be released today.
In The Post this morning, Aimee Shaw reports on a major local wine deal; Boss Life hears from the woman that runs Tiwai Point; and employment expert Susan Hornsby-Geluk examines possible changes to employee sick-leave entitlements.