Japan: Lower Hedging Costs to Stimulate Foreign Bond Investment Once Middle East Conflict Stabilizes
Japanese investors are reversing their post‑2022 retreat from foreign bonds, adding roughly $2 bn to European sovereigns and $7 bn to U.S. Treasuries in 2025. The rebound is anchored in falling hedging costs as the Bank of Japan raises rates while the European Central Bank eases, narrowing yield differentials. French government bonds, once shunned amid political turmoil, have seen renewed Japanese buying after stabilization, whereas Italian bonds benefited from a Moody’s rating upgrade. Overall, the shift signals a broader re‑allocation toward higher‑returning Eurozone assets as geopolitical risks ease.
How Russia and China Are Winning the War in Iran
Iran’s aggressive campaign to close the Strait of Hormuz with mines, missiles and drone swarms has driven global energy prices sharply higher. The United States’ attempt at a quick, decisive strike has backfired, leaving a protracted conflict that threatens worldwide...
2026 Middle East Conflict and Its Ripple Effects on the Global Economy: Potential Supply Chain Chaos Beyond Oil
The Middle East conflict, which intensified in early March 2026, has choked the Strait of Hormuz, disrupting oil flows and limiting the export of refined industrial inputs such as elemental sulphur, agricultural nitrates, and semiconductor‑grade helium. These constraints are generating...
What Does the Iran Crisis Mean for the Global Economy?
The joint US‑Israeli strikes on Iran on 28 February escalated into a full‑scale conflict that has choked the Strait of Hormuz, sending Brent crude from under $70 to a volatile $90‑$100 range. Disruptions to oil, sulfur, ammonia and urea shipments are...
Oil and Beyond Oil: What Might Be the Economic Implications of Iran’s War on Asia?
The United States and Israel have launched a military strike on Iran, prompting analysts to model two outcomes: a swift conflict that keeps oil prices near a baseline of $80 per barrel, and a drawn‑out war that could push prices...
