BlockBeats news, July 25: This week, global markets revolved around four key themes—the escalation of U.S.-Iran tensions, successive U.S. tariff hikes, the yen’s sharp depreciation, and concerns over AI-related capital spending in tech stocks—交织着 risk-off sentiment and policy disruptions:
International oil prices became the biggest trading theme of the week, as U.S. military strikes against Iran continued and the Houthi militia threatened shipping in the Red Sea, pushing Brent crude above $100 per barrel for the first time in two months, with both oil benchmarks set to close higher for a third consecutive week. The USD/JPY rose to 163.98, reaching its highest level since November 1986. In U.S. equities, the Dow Jones Industrial Average closed lower for a third straight week, while the S&P 500 and Nasdaq Composite fell for a second consecutive week. Tesla plunged 14.5% on Thursday, down nearly 18% for the week—the largest weekly decline since 2022—and the seven major tech giants lost nearly $800 billion in market value in a single day.
The U.S.-Iran conflict has entered a new phase, with both straits under severe pressure. The U.S. military has completed its 13th consecutive night of strikes against Iranian military targets and has deployed B-1 bombers to enhance its strike capability. The Iranian Revolutionary Guard Corps has claimed attacks on U.S. facilities in Kuwait, Bahrain, Jordan, and Larak Island. Navigation through the Strait of Hormuz remains disrupted, while the Houthi movement has announced a maritime blockade against Saudi Arabia and attacked two Saudi oil tankers, further spilling the conflict into the Red Sea. U.S.-Iran diplomatic mediation continues, but Iran has rejected a 10-day ceasefire proposal, with the U.S. viewing Iran as lacking sincerity in negotiations.
The U.S. imposed a series of tariff hikes within a week, affecting nearly 60 economies. The Trump administration took consecutive actions this week: imposing a 50% tariff on approximately $20 billion worth of Canadian goods (effective August 19); revising aluminum import tariff policies to offer preferential rates in exchange for investment incentives; announcing that imports of generic pharmaceuticals will remain duty-free for two years, after which tariffs will be phased in from 100% to 200% starting in 2028; imposing a 25% tariff on most Brazilian goods; and launching Section 301 tariffs against 60 economies on the grounds that they have not adequately prohibited products made with forced labor, replacing the expiring temporary global tariffs and covering 99.4% of U.S. imports.
The yen has fallen below the 163 level, hitting its lowest level since 1986. The Japanese Ministry of Finance and the Cabinet Office have repeatedly signaled potential intervention this week, but as of Friday, there has been no actual market intervention. The U.S. Treasury’s semiannual currency report determined that the yen is significantly undervalued; Japan remains on the currency monitoring list but has not been labeled a currency manipulator.
AI capital expenditure concerns weigh heavily on tech stocks. Although Alphabet's second-quarter revenue increased 24% year-over-year and its cloud business grew 82%, its stock plunged after earnings due to an upward revision of its 2026 capital expenditure forecast to a range of $195 billion to $205 billion and a negative free cash flow of $5.9 billion.
Tesla's revenue increased 26% year-over-year to $28.236 billion, but operating profit plummeted 57%, with a profit margin of just 1.4%. Coupled with a 142% year-over-year surge in capital expenditures, its stock plunged approximately 14% on Thursday, marking the largest decline among the Magnificent Seven. Meanwhile, companies such as OpenAI, AMD, and SpaceX continue to intensify their investments in computing power and chips.