International News 05 August 2026
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Indonesian Stocks Lead Southeast Asia Gains Despite Weak Rupiah
Indonesia's stock market posted the highest gains among its Southeast Asian peers today, following Bank Indonesia's (BI) reassurance that its recent policies are geared toward stimulating local bank lending. On Tuesday, the Jakarta Composite Index (JCI) rallied 1.37% to close at a two-week high of 6,319.61. This impressive performance was largely driven by a significant 3.17% surge in the shares of major lender Bank Central Asia (BBCA). During an after-hours press conference on Monday, BI's acting governor highlighted a July policy announcement that slashes reserve requirements by 200 basis points for specific banks, effective September 1. He explained that this move aims to deter commercial banks from parking excess liquidity in central bank securities, pushing them to expand credit instead. However, despite the stock market's optimism, the rupiah remained under heavy pressure as the US dollar rebounded. Cementing its status as Asia's worst-performing emerging market currency, the Indonesian rupiah slipped once again, weakening past the Rp 18,000 per US dollar threshold.
Oil Prices Rebound Amid US-Iran Diplomatic Uncertainty
Global oil prices experienced a rebound on Tuesday as the prospects for a diplomatic resolution between the United States and Iran remained highly uncertain, compounded by ongoing disruptions in major global shipping routes. Brent crude futures for near-term delivery climbed $1.04, or 1.24%, to reach $84.81 per barrel by 08:00 GMT. This recovery followed a steep 7% decline in the previous trading session, which had dragged the benchmark to a three-week low. Similarly, U.S. West Texas Intermediate (WTI) crude increased by 30 cents, or 0.37%, to $80.64 per barrel, recovering from a recent drop of more than 5%. The initial plunge in oil prices was triggered by President Donald Trump's announcement on Sunday that he would delay further military strikes against Iran in anticipation of negotiations intended to end the conflict and resolve disputes over control of the Strait of Hormuz. However, market anxieties were quickly reignited on Monday when Iranian Foreign Ministry spokesperson Esmail Baghaei explicitly contradicted Trump's claims. Baghaei firmly stated that there are absolutely no ongoing negotiations or scheduled meetings taking place between Tehran and Washington.
Trump Claims Ongoing Talks with Iran Amid Tehran's Denial
U.S. President Donald Trump asserted that negotiations with Iran are currently underway, framing it as Tehran's "last chance" to secure an agreement to end the five-month conflict. However, Iran firmly rejected these claims, denying any ongoing talks or scheduled meetings with the United States. As noted by Reuters, these deeply conflicting statements suggest that a diplomatic breakthrough remains highly unlikely in the foreseeable future. Speaking from the Oval Office on Monday, Trump stated that the discussions were initiated at the request of Iran and key regional players, including Saudi Arabia, the United Arab Emirates, and Qatar. This announcement comes on the heels of his recent decision to call off a major, pre-authorized military strike against Iran over the weekend, citing the prospect of these negotiations. This move reflects a recurring pattern in recent months, where Trump repeatedly threatens severe military action only to abruptly cancel it under the guise of pursuing diplomacy.