Trendwatch: Tankers trickle through Hormuz after Trump says truce over; Asian nations are building new trading zones to deflect the Trump tariff impact; India, EU aim to complete FTA legal scrubbing in 15-20 days

Tankers trickle through Hormuz after Trump says truce over 

A handful of oil tankers appeared to transit through the Strait of Hormuz on July 8, while at least one other U-turned away from the waterway, as President Trump’s declaration that a ceasefire with Iran was over raises the prospect of a renewed bout of conflict around the world’s most important energy chokepoint.

Two oil tankers made their way into the Persian Gulf through Hormuz overnight using a route close to Oman’s coastline, while another headed out by sailing close to Iran. A third ship carrying about two million barrels of crude U-turned midway through a transit along the waterway and re-entered the Persian Gulf. Visible liquefied natural gas traffic has largely ground to a halt. 

Asian nations are building new trading zones to deflect the Trump tariff impact 

Thanks to the imposition of Trump administration tariffs, Asian nations are investing more in new trade blocs that include China, Canada, Australia, Japan, and Vietnam, who are joining in one or both of the Asia-Pacific trade blocs launched in recent years: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). 

According to a Nikkei Asia report, Vietnamese seafood exporters, for example, see these pacts as “an assurance of relative predictability and preferential market access more attractive than what the U.S. now offers. Other industries across Asia are also finding CPTPP and RCEP useful cushions against the vagaries of Trump's trade policies and the disruptive side effects of his military campaign against Iran,” although the report adds that “the agreements' net economic impact so far appears limited.” 

India, EU aim to complete FTA legal scrubbing in 15-20 days, says Piyush Goyal

India and the European Union are aiming to complete the legal scrubbing of their free trade agreement (FTA) within the next 15-20 days, Commerce and Industry Minister Piyush Goyal said on Monday, as both sides step up efforts to bring the pact into force by the first quarter of 2027.

Goyal will visit Spain, Belgium and Finland on July 14-15 with a delegation of business leaders as part of preparations for implementing the trade pact. He is also scheduled to meet EU Trade Commissioner Maros Sefcovic in Brussels.

Lufthansa Cargo warns of potential air shipment delays at Frankfurt and Munich airports

The cargo arm of Lufthansa said in a flight information update on its website that handling times were longer due to “exceptionally high cargo volumes and existing handling backlogs caused by heat-related technical constraints”.

Lufthansa Cargo stated: “As a result, the processing of shipments may be delayed.” It stated that there was a possibility of some shipments being rebooked.

“Together with our partners, we have implemented a range of operational measures, including additional handling crews, to gradually reduce the backlog and further stabilize operations,” the carrier added.

China, Taiwan brace for Typhoon Bavi

Fishermen sheltered in harbours, residents queued for ​sandbags and farmers raced to bring in crops on Thursday as China and Taiwan braced for Typhoon Bavi, possibly the most destructive tropical storm in years.

As ‌Bavi churned southeast of Taiwan, rescue workers in southern China continued to search for victims and survivors of Typhoon Maysak, which killed at least 39 people earlier this week.

In the northeastern Taiwanese fishing town of Suao, hundreds of boats crowded into port to shelter from the approaching storm.