Key Takeaways
- Walmart (WMT) reached a $50 million settlement with the U.S. Department of Justice (DOJ) to resolve civil litigation regarding the unlawful dispensing of opioids, avoiding a potential multi-billion dollar penalty.
- S&P Global Ratings affirmed Portugal’s ‘A+/A-1’ rating with a positive outlook, citing the economy's ability to withstand energy price shocks from the Strait of Hormuz disruptions.
- Jordan’s ‘BB-/B’ credit rating was maintained with a stable outlook, bolstered by a 16% year-on-year increase in cargo volumes at the Port of Aqaba as regional trade is rerouted.
- Tensions escalated in the Strait of Hormuz as the IRGC Navy accused the U.S. of lying about the waterway's status, claiming "absolute dominance" while the U.S. maintains the passage is open.
- Japan’s Foreign Minister and top officials reiterated support for ICC President Tomoko Akane following U.S. sanctions, navigating a delicate diplomatic balance with the Trump administration.
Corporate and Sovereign Credit Updates
Walmart (WMT) has concluded a long-standing legal battle with the U.S. Department of Justice, agreeing to a $50 million settlement without admitting liability. The settlement resolves allegations that the retailer’s pharmacies violated the Controlled Substances Act by filling thousands of invalid opioid prescriptions. The payout is significantly lower than the billions of dollars in civil penalties initially sought by the DOJ in 2020. Walmart confirmed the settlement amount was already accrued as of July 31, 2026, and described the financial impact as immaterial to its operations.
S&P Global Ratings affirmed Portugal’s unsolicited ‘A+/A-1’ sovereign credit ratings, maintaining a positive outlook. The agency noted that while disruptions in the Strait of Hormuz have driven energy prices higher, the impact on the Portuguese economy should remain moderate in 2026. This resilience is attributed to Portugal's low energy intensity and the continued acceleration of capital expenditure under the Next Generation EU (NGEU) program.
In the Middle East, Jordan saw its ‘BB-/B’ ratings affirmed with a stable outlook. Despite regional volatility, Jordan has benefited from a 16% surge in cargo at the Port of Aqaba as shippers seek alternatives to the troubled Strait of Hormuz. S&P projects Jordan's economy to grow by 2.5% in 2026, supported by strong remittance flows which rose 14.3% in the first half of the year.
Geopolitical Tensions in the Strait of Hormuz
The status of the Strait of Hormuz remains a point of intense international dispute. The Islamic Revolutionary Guard Corps (IRGC) Navy issued a statement calling U.S. claims that the waterway is open an "obvious lie." Iranian officials asserted that the strait is closed to any vessels transiting without coordination with Tehran, characterizing U.S. reports as attempts to manipulate global oil prices.
Conversely, the U.S. White House and Central Command maintain that American forces have effectively secured the passage. According to U.S. data, nearly 1,500 commercial vessels have moved through the strait under U.S. protection, transporting approximately 750 million barrels of crude oil. The conflicting narratives have kept energy markets on edge, though analysts suggest the localized nature of supply chains has mitigated the broader economic shock for European nations like Portugal.
Diplomatic Strains Over International Justice
Japan is navigating a complex diplomatic rift with the United States over sanctions imposed on International Criminal Court (ICC) President Tomoko Akane. Prime Minister Sanae Takaichi and the Foreign Ministry described the sanctions as "very unfortunate" and "incompatible" with Japan's position.
Despite the pressure from the Trump administration, Tokyo has reaffirmed its "unwavering support" for the ICC, which is the world's permanent court for prosecuting war crimes. Chief Cabinet Secretary Minoru Kihara stated that Japan remains in close communication with Akane to provide "any necessary support," even as the U.S. labels the court "fatally politicized."
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.