Key Takeaways
- Oil prices surged as Brent crude rose 0.8% to $89.63 and WTI climbed to $83.91 due to fading hopes for a U.S.-Iran peace deal and continued closure of the Strait of Hormuz.
- Commonwealth Bank of Australia (CBA) reported a record A$10.98 billion full-year cash profit, up 7%, while warning of rising loan arrears due to cost-of-living pressures.
- AI demand remains robust as CoreWeave (CRWV) surged 14% in extended trading after raising its 2026 revenue outlook and capital expenditure forecast to $35B–$39B.
- Geopolitical risks intensified following a North Korean ballistic missile launch toward the Sea of Japan and reports of a secret aircraft swap for Donald Trump amid assassination threats.
- A magnitude 7.4 earthquake in Colombia has left at least 254 people dead and thousands missing, prompting a national emergency declaration.
Energy Markets and Geopolitical Tensions
Crude oil prices extended their gains for a sixth consecutive session as uncertainty over a potential U.S.-Iran agreement kept traders cautious. Brent crude rose to $89.63 a barrel, while West Texas Intermediate (WTI) climbed to $83.91, driven by reports that the Strait of Hormuz—which handled 20% of global oil flows—will remain closed. Market volatility is expected to persist as both Washington and Tehran appear to have hardened their positions, with President Trump demanding reparations from Iran for war-related damages.
In a separate security development, reports emerged that Donald Trump was secretly transferred to a military C-32A jet via a catering truck while in Turkey to evade a specific Iranian assassination threat. The ruse involved using the traditional Air Force One as a decoy, leaving some staff and reporters on the original aircraft. Trump later stated that the flight change was made in accordance with Secret Service guidance and noted that his usual aircraft is exposed to greater risk.
Financial Results and Corporate Outlook
Commonwealth Bank of Australia (CBA) posted a record annual cash profit of A$10.98 billion, exceeding analyst estimates of A$10.85 billion. The bank declared a final dividend of A$2.70 per share, bringing the total FY26 payout to A$5.05. Despite the strong performance, CEO Matt Comyn warned that home loan arrears rose to 0.73% as high interest rates and inflation began to impact consumer portfolios.
In the technology sector, CoreWeave (CRWV) shares jumped 14% after the neocloud provider reported a massive revenue backlog of $104.2 billion. The company, which has deep ties to Nvidia (NVDA), raised its annual capital spending forecast to a range of $35 billion to $39 billion to meet relentless AI demand. Similarly, Super Micro Computer (SMCI) gained more than 7% following a stronger-than-expected revenue forecast for the coming year.
Global Economic and Political Developments
Investors are closely monitoring Wednesday's U.S. CPI report, with economists expecting headline inflation to rise 0.1% in July. A softer reading could ease pressure on the Federal Reserve, though renewed energy-price inflation remains a hawkish risk. The 10-year Treasury yield currently hovers around 4.69%, while the Yen remains near 159.28 per dollar, keeping currency intervention concerns at the forefront.
In regional news, North Korea launched a ballistic missile that traveled over 700 kilometers toward the Sea of Japan, an act South Korean officials labeled a provocation ahead of planned joint military drills. In South Carolina, a Republican Senate primary for the seat of the late Lindsey Graham is heading to a runoff; Darline Graham, endorsed by Trump, will face either Ralph Norman or Russell Frye on August 25. Meanwhile, rescue operations continue in Colombia following a devastating 7.4 magnitude earthquake in the Chocó region that has caused widespread infrastructure disruption and significant casualties.
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.