At the same time, the rising yields on government bonds reflect persistent inflation challenges and expectations of tighter monetary policy. In the technology sector, attention was drawn to Nvidia’s investment in MediaTek, further reinforcing the importance of artificial intelligence for long-term market growth.
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US geopolitical and energy strategy
The US-Iran conflict, ongoing for more than six months, has extended the June ceasefire, with clashes continuing intermittently.
Last week, US Treasury Secretary Scott Bessent launched a wide-ranging sanctions campaign called “Operation Economic Outcast,” aimed at isolating Iran from the global economy, warning any country maintaining trade relations with Tehran. Due to this conflict, energy prices remain high, and US relations with G20 allies are becoming strained.
US and Venezuela oil deal
President Trump announced what the White House calls “the largest oil deal in history” – an agreement granting the US the right to control more than 65 billion barrels of Venezuela’s crude oil reserves.
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The White House statement released on Monday detailed the terms of the agreement, including priority rights to a large share of Venezuela’s crude oil production and US veto power over the appointment of board members of the private operator managing these resources. In August, before the agreement was officially formalized, Venezuela’s oil exports increased by 28%.
Record bond yields
Global bond interest rates have risen to their highest level since 2008, driven by rising oil prices, inflation fears, and growing expectations that central banks – including the Federal Reserve – will raise interest rates. Japan’s 10-year bond yield reached 3% for the first time since 1996, and S. Bessent publicly pressured the Bank of Japan to continue raising interest rates in light of renewed yen weakness.
Nvidia’s investment in MediaTek strengthens AI ecosystem
Nvidia agreed to invest $3.5 billion in Taiwanese company MediaTek – its largest direct investment outside the US – by purchasing bonds convertible into MediaTek shares. This deal elevated MediaTek to a global center for artificial intelligence infrastructure development, and its Taipei-listed shares rose 10% on Tuesday, increasing market value by about $20 billion.
