{"id":64674,"date":"2026-07-12T21:08:16","date_gmt":"2026-07-13T01:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-escalating-u-s-iran-conflict-and-japanese-capital-shifts\/64674\/"},"modified":"2026-07-12T21:08:16","modified_gmt":"2026-07-13T01:08:16","slug":"global-markets-react-to-escalating-u-s-iran-conflict-and-japanese-capital-shifts","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-escalating-u-s-iran-conflict-and-japanese-capital-shifts\/64674\/","title":{"rendered":"Global Markets React to Escalating U.S.-Iran Conflict and Japanese Capital Shifts"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. forces expanded air strikes against Iranian military targets<\/strong> for a third consecutive night, hitting over <strong>140 targets<\/strong> to degrade capabilities in the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> surged over 3.5%<\/strong> as Tehran announced the closure of the <strong>Strait of Hormuz<\/strong> and launched retaliatory drone and missile attacks against <strong>Bahrain, Qatar, and the UAE<\/strong>.<\/li>\n<li><strong>Japanese Government Bonds (JGBs) rallied<\/strong> following signals that the <strong>Government Pension Investment Fund (GPIF)<\/strong> may repatriate capital to domestic assets, strengthening the <strong>Yen<\/strong>.<\/li>\n<li><strong>South Korea&#39;s trade surplus hit $6.4 billion<\/strong> for the first ten days of July, driven by a massive <strong>193% YoY surge in semiconductor exports<\/strong>.<\/li>\n<li><strong>Brookfield Asset Management (<a href=\"\/stock\/BAM\">BAM<\/a>)<\/strong> is in exclusive talks to acquire a stake in Manhattan\u2019s <strong>Hudson Square Properties<\/strong>, valuing the tech-heavy portfolio at <strong>$3.5 billion<\/strong>.<\/li>\n<\/ul>\n<h2>Middle East Conflict Escalates<\/h2>\n<p>The <strong>United States<\/strong> has intensified its military campaign against <strong>Iran<\/strong>, with <strong>U.S. Central Command (CENTCOM)<\/strong> launching a fresh wave of strikes starting Sunday afternoon. The operation, which lasted over three hours, targeted <strong>Iranian Revolutionary Guard Corps (IRGC)<\/strong> capabilities in the <strong>Strait of Hormuz<\/strong>, including the <strong>Al-Amidiya Airport<\/strong> in Khuzestan. President <strong>Donald Trump<\/strong> stated the strikes were necessary to hold Tehran accountable for attacks on commercial shipping, specifically a <strong>Cyprus-flagged container ship<\/strong>.<\/p>\n<p>In retaliation, <strong>Iran<\/strong> has broadened its attacks to include <strong>Gulf states<\/strong>, launching missiles and drones at <strong>Bahrain, Qatar, and the United Arab Emirates<\/strong>. Tehran officially declared the <strong>Strait of Hormuz closed<\/strong> until further notice, a move that has sent <strong>Brent crude<\/strong> climbing toward <strong>$79 per barrel<\/strong>. While <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a><\/strong> prices initially declined as investors weighed the potential for further <strong>Federal Reserve<\/strong> rate hikes to combat energy-driven inflation, the market remains on high alert for a broader regional war.<\/p>\n<h2>Japan and South Korea Economic Shifts<\/h2>\n<p><strong>Japanese Government Bonds (JGBs)<\/strong> saw increased demand as Finance Minister <strong>Satsuki Katayama<\/strong> suggested a strategic pivot for the <strong>$1.8 trillion GPIF<\/strong>. The proposal encourages Japan\u2019s massive pension funds to shift allocations away from foreign securities toward <strong>domestic financial assets<\/strong>. This &quot;capital repatriation&quot; is viewed by analysts as a critical move to support the <strong>Yen<\/strong> and fund domestic initiatives in <strong>AI and semiconductors<\/strong>.<\/p>\n<p>Meanwhile, <strong>South Korea<\/strong> reported a robust <strong>17.4% YoY increase in imports<\/strong> for the July 1\u201310 period, though this was overshadowed by a record-breaking export performance. <strong>Semiconductor exports<\/strong> reached <strong>$11.2 billion<\/strong>, a nearly <strong>200% increase<\/strong>, underscoring the global demand for AI-related hardware. The country&#39;s trade balance remains firmly in surplus at <strong>$6.4 billion<\/strong>, despite rising costs for energy imports like crude oil and gas.<\/p>\n<h2>Corporate Developments and Climate Crisis<\/h2>\n<p>In the retail sector, Japanese footwear giant <strong>ABC-Mart (<a href=\"\/stock\/2670\">2670<\/a>)<\/strong> is accelerating its expansion into <strong>Southeast Asia<\/strong>. Under new President <strong>Kiichiro Hattori<\/strong>, the company aims to increase its overseas sales share from <strong>30% to 50%<\/strong>, targeting young consumers in emerging markets to offset a maturing domestic landscape. In real estate, <strong>Brookfield Asset Management (<a href=\"\/stock\/BAM\">BAM<\/a>)<\/strong> is betting on the resilience of the New York tech sector by seeking a <strong>10% stake<\/strong> in the <strong>Hudson Square Complex<\/strong>, a hub for major AI firms like <strong>Anthropic<\/strong>.<\/p>\n<p>Separately, <strong>Europe<\/strong> continues to battle a catastrophic climate crisis. <strong>Wildfires<\/strong> are currently raging near <strong>Paris<\/strong> as temperatures approach <strong>40\u00b0C (104\u00b0F)<\/strong>. In the <strong>United Kingdom<\/strong>, the ongoing heatwave has been linked to an estimated <strong>2,700 deaths<\/strong>, prompting emergency services to remain on high alert. The extreme weather is expected to further strain regional power grids and impact agricultural productivity across the continent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. forces expanded air strikes against Iranian military targets for a third consecutive night, hitting over 140 targets 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