A view of a new anti-U.S. billboard featuring President Donald Trump alongside a slogan reading, ‘Great Victory, Strait of Hormuz’, outside a train station in southern Tehran, Iran, on September 1, 2026, amid new tensions between Iran and the United States. <\/p>\n
Morteza Nikoubazl | Nurphoto | Getty Images<\/p>\n
Hello, this is Leonie Kidd coming to you from London. <\/p>\n
Once the ceasefire had been abandoned, it seemed only a matter of time before the tension between the U.S. and Iran flared up once again.<\/p>\n
The return to military exchanges between the two countries has spooked the markets, sending stocks into the red and oil higher. <\/p>\n
Read on for more.<\/p>\n
What you need to know today<\/p>\n Global equities are under renewed selling pressure. <\/p>\n In Asia, steep declines<\/a> for Japan’s main markets and South Korea’s Kospi are leading markets lower across the board. U.S. futures<\/a> are back in the red after the Dow fell more than 400 points<\/a> in Tuesday’s session. Europe is also set to open lower. <\/p>\n Global bond yields\u00a0continued their march higher<\/a>\u00a0Tuesday. The U.S.\u00a010-year Treasury<\/a>\u00a0note yield scaled to levels not seen since January 2025. Japan’s\u00a010-year<\/a>\u00a0yield reached its highest level since August 1996, while Germany’s benchmark yield rose to a 2011 high.<\/p>\n Oil price jumpsNo Strait answer<\/p>\n The trigger for these now-familiar market moves is a resurgence in tensions between the U.S. and Iran.<\/p>\n The American military undertook fresh strikes against Iran<\/a>, hitting air defense and radar system targets. Tehran has retaliated with attacks on U.S. military infrastructure across the Gulf. <\/p>\n In a Truth Social post,<\/a>\u00a0U.S. President Donald Trump<\/a> said he was “not trying to force Iran to the bargaining table,” but reiterated that the U.S. has “almost total control” over the Strait of Hormuz, while adding that Tehran’s economy was collapsing.<\/p>\n China dissents<\/p>\n There is also tension at the conclusion of the G20 meeting in Asheville, North Carolina.<\/p>\n China has dissented<\/a> from joining a G20 statement<\/a>, rejecting wording in the document that called out “non-market based economies pushing out a never-ending stream of cheap exports.”<\/p>\n U.S. Treasury Secretary Scott Bessent detailed the move at a press conference, saying the other G20 members will look to “reach a resolution on this unsustainable equilibrium” in the coming weeks. \u00a0<\/p>\n Driven out the Stoxx 50<\/p>\n German autos giant VW<\/a> could be pushed out of the Euro Stoxx 50<\/a> later this month and be replaced by a resurgent Nokia<\/a>. Shares in the Finnish telco hit an 18-year high in June after doubling on the year. <\/p>\n Meanwhile VW shares have fallen nearly 30% this year amid fierce competition from China, alongside a major restructuring. <\/p>\n \u2014 Leonie Kidd<\/p>\n And Finally…<\/p>\n Canada\u2019s Carney slaps Trump admin for \u2018doing memes … throwing shade\u2019<\/a><\/p>\n Canadian Prime Minister\u00a0Mark Carney<\/a>\u00a0on Tuesday blasted the Trump administration for “doing memes” and “throwing shade” against his nation amid a growing\u00a0trade war<\/a>.<\/p>\n Carney’s comments came in response to a reporter’s question about Trump officials mocking\u00a0Canada<\/a>‘s military in social media posts and comments, and President\u00a0Donald Trump<\/a>\u00a0signing an executive order directing the renaming of Lake Ontario to “Lake America<\/a>” for federal government use.<\/p>\n “When the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious about having those discussions, we can have those discussions” about trade, Carney said in Ottawa.<\/p>\n “But look, it’s not constructive, but that’s their democracy.”<\/p>\n \u2014 Dan Mangan<\/p>\n