U.S. Treasury Secretary Scott Bessent during the 2026 Reagan National Economic Forum at the Ronald Reagan Presidential Library in Simi Valley, California, May 29, 2026.<\/p>\n
Caroline Brehman | Bloomberg | Getty Images<\/p>\n
Hello, this is Justina Lee writing to you from Singapore, filling in for Leonie.<\/p>\n
Optimism that Washington and Tehran\u00a0could reach a deal to open the critical Strait of Hormuz has sent markets cheering, after U.S. Treasury Secretary Scott Bessent told CNBC that a deal to open the waterway could be reached by Wednesday. <\/p>\n
In Asia, tech stocks rallied<\/a> following Wall Street’s record-setting session. General Motors<\/a>\u00a0and China’s SAIC Motor extended<\/a> their joint venture by 20 years, while India’s retail inflation rose<\/a> to an 18-month high in June.<\/p>\n Meanwhile in Europe, attention turned to Novo Nordisk<\/a> after the weight loss drug maker’s raised guidance failed to impress investors.<\/p>\n What you need to know today<\/p>\n Traders are keeping a close watch on developments surrounding the Strait of Hormuz, after U.S. Treasury Secretary Scott Bessent told<\/a> CNBC that Iran and the U.S. could reach a deal to open the Strait of Hormuz by Wednesday.<\/p>\n When asked whether Iran would be allowed to charge a toll, Bessent said: “It would be freedom of movement.” <\/p>\n “The southern route through the waterway remains free and open for all commercial vessels seeking to transit the international waterway,” the U.S. Central Command said in a\u00a0post on X<\/a>. About 20% of the world’s oil flowed through the Strait<\/a> before the war.<\/p>\n That said, tensions between Iran and the U.S. continue to linger. Iran has reportedly claimed<\/a> that President\u00a0Donald Trump<\/a>\u00a0could “ignite the spark” of World War 3 after Washington cautioned\u00a0Tehran<\/a>\u00a0that it was its\u00a0“last chance”<\/a>\u00a0to make a deal.<\/p>\n In Asia, tech stocks rallied<\/a> on Wednesday, tracking Wall Street’s record-setting session that was fueled by optimism surrounding artificial intelligence and growth stocks. That optimism in the region’s tech stocks also spilled over to the automotive sector. <\/p>\n General Motors<\/a>\u00a0and China’s SAIC Motor said they have extended<\/a> their joint venture by 20 years, to 2047, following the initial deal that was established in 1997 for 30 years. The deal will focus on domestic sales of Buick and Cadillac models in China in addition to exporting products built in China for non-U.S. markets, according to GM. <\/p>\n Meanwhile, India’s retail inflation rose<\/a> to an 18-month high in June, crossing the central bank’s 4% medium-term target for the first time in more than a year. <\/p>\n \u2014Justina Lee <\/p>\n And finally…<\/p>\n Novo Nordisk\u2019s raised forecast fails to change the debate over its obesity business<\/p>\n Novo Nordisk’s\u00a0quarterly beat and guidance increase did little to resolve Wall Street’s biggest concern: whether the Ozempic maker has a convincing path back to sustainable growth as competition from\u00a0Eli Lilly<\/a>\u00a0intensifies.<\/p>\n Analysts said the better-than-expected quarter benefited from rebate adjustments and other temporary factors, obesity drug sales were broadly in line with expectations, and oral Wegovy slightly missed forecasts.\u00a0<\/p>\n At the same time, Novo reported another mixed clinical result for next-generation weight-loss drug CagriSema<\/a>, reinforcing investor questions about the company’s longer-term pipeline.<\/p>\n \u2014 Elsa Ohlen<\/p>\n