Newsquawk Daily Asia-Pac Opening News - 18th August 2026

US stocks ended the first session of the week in the red as US-Iran newsflow dominated the tape, in otherwise a light session of headlines in typical summer trading conditions. Recapping, sources said the 60-day period between Iran and the US has been extended, while a Senior Iranian official said Iran has decided to shift its policy from defensive to a 'fully offensive' one, and Trump stated there are ongoing back channels with the IRGC, which the IRGC denied. As such, slight risk-off price action was seen, as Treasuries weakened and oil gained, settling at highs. Given this, sectors were exclusively in the red, aside from Energy, with Communication Services and Consumer Staples the laggards; there was no tier 1 US data or Fed speak, as earnings season begins to wind down. Despite saying that, it is the retailers this week, with Home Depot (HD) the highlight tomorrow. On the stock-specific front, there was little new, but the memory ETF DRAM and memory names rallied once again, helped by US Commerce Secretary Lutnick noting the Trump administration opposes Apple (AAPL) using Chinese memory chips. Once again, the calendar for scheduled risk events this week is light, with FOMC Minutes on Wednesday the highlight. USD was little changed, with trading ranges thin to start the week, while updates were centred around geopolitics, which resulted in higher crude prices. The main takeaway was a senior Iranian official noting that they are moving policy to the offensive, now shifting towards making their own deadlines, leaving a few weeks for the implementation of the MoU by the US. Looking ahead, highlights include Australian Westpac Consumer Sentiment, New Zealand RBNZ Offshore Holdings, Supply from Australia & Japan. SNAPSHOT STOCKS S&P 500 -0.5% Nasdaq Comp. -0.3% DJIA -0.5% Russell 2000 -0.4% ES Sep'26 -0.5% RTY Sep'26 -0.3% NQ Sep'26 -0.2% YM Sep'26 -0.6% FX DXY -0.1% (99.59) EUR/USD +0.1% USD/JPY +0.1% GBP/USD +0.1% BONDS US T-Note Sep'26 -4 ticks 10yr Bund Sep'26 -36 ticks US 10yr Yield 4.73% German 10yr Yield 3.22% ENERGY & METALS WTI Oct'26 +3.2% Brent Oct'26 +2.9% Spot Gold +0.9% LME Copper -0.2% CRYPTO Bitcoin +2.4% Ethereum +1.7% As of 21:50BST/16:50EDT LOOKING AHEAD Highlights include Australian Westpac Consumer Sentiment, New Zealand RBNZ Offshore Holdings, Supply from Australia & Japan. Click for the Newsquawk Week Ahead. IRAN CONFLICT An understanding to extend the ceasefire between the US and Iran under the Islamabad MoU has been reached and agreed in principle, according to Anas Malick. It was separately reported that Al-Arabiya sources said the 60-day period between Iran and the US has been extended. US President Trump said Israel should not launch attacks on Gaza at this time, while he noted there is positive progress on the issue of disarming Hamas and that the US has its own special relationship with the movement. Trump also stated that Iran must raise the white flag and that the Iranian side is a good gambler but "it's breathing its last". Furthermore, he is not in a hurry regarding Iran and does not have a specific timetable, and he stated that the midterm elections have absolutely no effect on his thinking regarding Iran. US President Trump said there is a back channel with IRGC officials and that he is in no hurry with Iran, while he threatened to bomb Oman if it gets in the US way, according to Fox News. US President Trump said he doesn't think Oman behaves very well, while he said they would handle them very easily when asked regarding the threat to Oman. Trump reiterated US control of the Strait of Hormuz, and that Iran wants to make a deal, but also stated that Iran won't make the deal he thinks is necessary and he is not seeking an extension of the Iran MoU. US special envoy Kushner said conversations between the US and different areas of Iran’s government are more robust than they have ever been, but they are not there yet on an understanding. However, he noted positive and active discussions and that Trump will be patient. IRGC spokesman said there is no conversation between IRGC officials and the Americans, and called Trump's statement "merely a fantasy that has afflicted him due to illusions and nightmares stemming from defeat and despair in the war." Iranian Foreign Ministry said the "Islamabad agreement has not collapsed and the possibility of returning to it remains", while it noted that there are ongoing contacts with Qatar, which is playing an influential role in de-escalation efforts. It was also reported that Iran did not submit any letter to parliament to halt the Strait of Hormuz management plan. Iran said a deal with Oman over shipping through the Strait of Hormuz is nearly final, according to Associated Press. Iranian senior official said Iran has decided to shift its policy from defensive to a 'fully offensive' one, according to Reuters. The official said pressuring the US or relying on mediators to reach a lasting peace is not realistic, while Iran has set a deadline of a few weeks for implementation of the MoU by the US. Furthermore, all Iranian entities will be prepared to escalate tensions in the Strait of Hormuz and the region if diplomacy fails, with the timeframe set by Iran to be conveyed to the US and regional countries via mediators. Saudi Arabia carried out artillery attacks on villages in the Shawarq area of Razih district in Yemen's Saada province, according to ISNA. Houthi spokesperson said they targeted a Saudi military landing ship and four accompanying military boats in the Red Sea off Al-Makha with ballistic missiles. The spokesperson added that they are closely monitoring the actions of military movements by Saudi forces and will strike those actions and movements whether on land or at sea. Israel and the US agreed that weapons surrendered by Hamas during the initial phase of disarmament will be destroyed by the US-led International Stabilization Force rather than handed to the Palestinian technocratic government. Board of Peace official said the meeting between Israeli PM Netanyahu and US Special Envoy Kushner was lengthy, in-depth and productive. The official said, "We agreed with the PM on a path forward. The Israelis are going to give this a chance. Now it’s up to Hamas to show if it truly intends to comply." There was no agreement between Israeli PM Netanyahu and US Envoy Kushner regarding the continuation of the assassinations, while Netanyahu made it clear that he would continue, according to i24news citing sources. US TRADE US stocks ended the first session of the week in the red as US-Iran newsflow dominated the tape, in otherwise a light session of headlines in typical summer trading conditions. Recapping, sources said the 60-day period between Iran and the US has been extended, while a Senior Iranian official said Iran has decided to shift its policy from defensive to a 'fully offensive' one, and Trump stated there are ongoing back channels with the IRGC, which the IRGC denied. As such, slight risk-off price action was seen, as Treasuries weakened and oil gained, settling at highs. Given this, sectors were exclusively in the red, aside from Energy, with Communication Services and Consumer Staples the laggards; there was no tier 1 US data or Fed speak, as earnings season begins to wind down. Despite saying that, it is the retailers this week, with Home Depot (HD) the highlight tomorrow. On the stock-specific front, there was little new, but the memory ETF DRAM and memory names rallied once again, helped by US Commerce Secretary Lutnick noting the Trump administration opposes Apple (AAPL) using Chinese memory chips. Once again, the calendar for scheduled risk events this week is light, with FOMC Minutes on Wednesday the highlight. SPX -0.52% at 7,745, NDX -0.17% at 29,995, DJI -0.51% at 53,465, RUT -0.35% at 3,058. Click here for a detailed summary. TARIFFS/TRADE US and Canada are discussing a possible reduction in US auto tariffs to 15% after some value content deductions from 25% currently, according to reports, citing sources. Canadian PM Carney said he expects to speak to Trump before the August 19th tariffs deadline. NOTABLE HEADLINES US Treasury will publish a major proposed rulemaking implementing the GENIUS Act on Monday morning, according to Punchbowl citing sources. The rule will cover licensing requirements for individual stablecoin issuers and outline when payment stablecoins can be offered or sold in the US. DATA RECAP US NY Empire State Manufacturing Index (Aug) 20.60 vs. Exp. 11.0 (Prev. 15.60) FX USD was little changed, with trading ranges thin to start the week. Updates were centred around geopolitics, which resulted in higher crude prices. The main takeaway was a senior Iranian official noting that they are moving policy to the offensive, now shifting towards making their own deadlines, leaving a few weeks for the implementation of the MoU by the US. EUR eked mild gains after fading most of the earlier advances and failed to sustain a brief return into 1.1600 territory. GBP pulled back from intraday highs but with price action kept to within narrow parameters at the 1.3500 handle, while attention turns to incoming data releases beginning with UK employment and average earnings data on Tuesday. JPY gradually weakened as USD/JPY rebounded from a brief dip beneath the 159.00 handle, with the yen not helped by the recent disappointing GDP data and a sparse calendar for the approaching Asia-Pac session. Canadian CPI (Jul) M/M 0.5% vs. Exp. 0.4% (Prev. -0.4%) Canadian CPI (Jul) Y/Y 3.0% vs. Exp. 2.9% (Prev. 2.8%) FIXED INCOME T-notes settled lower and the yield curve steepened in quiet trade as attention turns to the FOMC Minutes on Wednesday. COMMODITIES Oil prices settled around today’s best levels after benchmarks ground higher through the duration of the US afternoon, while the overall tone from geopolitical headlines was mixed. US SPR crude oil stocks fell by about 5.3mln bbls to 293.4mln bbls last week, the lowest since 1982. US Energy Secretary Wright said the SPR still has 300mln barrels in it and will be at a higher level by the end of the Iran conflict than before. China's 15th Five-Year Plan for oil and gas development calls for accelerating the large-scale and efficient development of deep and ultra-deep oil and gas reservoirs. ASIA-PAC NOTABLE HEADLINES Chinese leader Xi Jinping will skip the UN ahead of the Trump summit, according to Politico. China’s Cabinet meeting said it should strive to achieve the economic development goal for this year, while it added that the problem of insufficient domestic demand remains pronounced. China's NBS said the external environment remains complex, while China is to continue expanding domestic demand and it noted some firms face operating difficulties. DATA RECAP Chinese Industrial Production (Jul YY) 4.5% vs. Exp. 5.0% (Prev. 5.3%) Chinese Retail Sales (Jul YY) 0.6% vs. Exp. 1.5% (Prev. 1.0%) Chinese Fixed Asset Investment (YTD) (Jul YY) -6.7% vs. Exp. -6.2% (Prev. -5.7%) Chinese Unemployment Rate (Jul) 5.2% vs. Exp. 5.1% (Prev. 5.0%) Chinese House Price Index (Jul YY) -3.2% (Prev. -3.3%) EU/UK NOTABLE HEADLINES ECB's Lane published a slide deck focused on defence spending and its potential impact on GDP.