International News 29 July 2026
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Fed Expected to Hold Rates as Rising Oil Prices Revive Inflation Concerns
Most global brokerage firms expect the U.S. Federal Reserve to leave interest rates unchanged at its policy meeting concluding this week. However, a growing number of analysts see an increasing possibility of another rate hike as surging oil prices reignite inflation concerns. According to Reuters, Brent crude briefly climbed above US$100 per barrel last week after renewed tensions in the Middle East, raising fears that higher energy costs could keep inflation above the Fed's 2% target and force policymakers to maintain restrictive monetary policy for longer. Despite these concerns, the consensus among major brokerages remains that the Fed will keep its benchmark interest rate unchanged at this week's meeting. Market pricing, however, indicates that expectations for a 25-basis-point rate hike have risen sharply, with the implied probability increasing to around 33%, up from roughly 10% two weeks ago, reflecting heightened uncertainty over the inflation outlook.
Gulf States Back Oman's Proposal for Voluntary Hormuz Transit Fees
Gulf countries are reportedly backing an Omani proposal that would allow Iran to collect voluntary contributions from ships transiting the Strait of Hormuz, in a bid to ease disruptions to global oil trade caused by the U.S.-Israel conflict with Iran. According to Reuters, a Gulf source said the proposal has gained regional support. Under the plan, Iran would not exercise full control over the strategic waterway, and any payments from vessels would be voluntary rather than mandatory. The framework is modeled on the Strait of Malacca, where Indonesia, Malaysia, and Singapore invite voluntary contributions from passing ships to fund navigation services, environmental protection, and search-and-rescue operations. The proposal comes after U.S. President Donald Trump unexpectedly halted the U.S. bombing campaign against Iran over the weekend, saying talks with Tehran were progressing well while warning that military action could resume if negotiations fail. Iran, however, denied seeking to restart formal negotiations with Washington. Earlier this month, the United States launched airstrikes aimed at weakening Iran's control over the Strait of Hormuz, a vital shipping route that handled roughly one-fifth of global oil and LNG supplies before the conflict.
Visa to Cut 7% of Workforce to Boost Efficiency and Accelerate AI Transformation
Global payments company Visa will lay off about 7% of its workforce, or roughly 2,600 employees, as part of efforts to improve operational efficiency and accelerate its business transformation. According to Reuters, the job cuts will primarily affect the company's technology and product development teams. Chief Executive Officer Ryan McInerney said Visa must continue evolving the way it operates to capitalize on future business opportunities. In a memo to employees, confirmed by a company spokesperson, McInerney said the rapid advancement of artificial intelligence is reshaping how work is done across the company. He noted that AI has helped automate repetitive tasks while speeding up product development, making it essential for Visa to adapt its operations to remain a leader in the evolving payments industry.