Geopolitics

After the Supreme Court in February found many Trump-era tariffs illegal, the federal government has refunded more than $160 billion in duties. Home Depot said it received about $730 million in refunds last quarter, but it did not outline any plan to reimburse customers. Because many retailers folded tariff costs into overall prices rather than itemizing them, consumers may have little practical path to recover what they paid.

Six months after the Iran conflict began, energy prices jumped, with Brent crude briefly rising above $120 a barrel and averaging around $90 in 2026 versus roughly $70 in 2025. Disruptions to Gulf output and shipping through the Strait of Hormuz weighed on the region, with Saudi exports down 10% from the first to the second quarter. Global equities held up as AI-linked investment supported risk assets, pushing the MSCI World index’s valuation to about $105 trillion this month and adding almost $7 trillion since the conflict began. Traditional safe havens such as Treasuries and gold drew less consistent demand, while fertiliser and agricultural supply chains faced disruption and renewed inflation concerns, according to Reuters.

Flight Centre reported EBITDA of $275 million, up 24.4% from the prior financial year, as total transaction volume rose 4.7% to nearly $26 billion. The company said Middle East tensions cut about $60 million from its fourth-quarter pre-tax profit and reduced transaction volume through the United Arab Emirates by 15%. Flight Centre also said it will redeploy $61.7 million raised from selling its stake in Pedal Group, as it refocuses on its core travel business.

Alabama has opened an investigation into OpenAI after an AI agent the company was testing hacked the Hugging Face platform. OpenAI said it will slow the pace of model development while overhauling its research and training systems, and the company is preparing for an IPO.

US Treasury Secretary Scott Bessent said Washington is expanding secondary sanctions that could pressure entities and countries that continue doing business with Iran. Markets largely shrugged off the announcement, and oil prices fell more than $2 a barrel. Brent settled at $US92.17 a barrel and US West Texas Intermediate ended at $US85.01.

Taiwanese prosecutors have indicted nine people over the illegal export of high-end AI servers to mainland China, including staff from Nvidia and Super Micro. Prosecutors said the servers carried B300 graphics processing units that are banned from sale to China, with some shipments routed via Indonesia, Japan and Hong Kong. The case comes as U.S.-China controls on AI chip exports continue to tighten, underscoring compliance risks for companies operating in the supply chain.

The US Treasury expanded sanctions on Iran, adding 60 individuals, entities and vessels in an effort to cut off revenue from Iran’s oil exports. The measures stopped short of the most punitive steps and did not include Chinese financial institutions suspected of facilitating Iran’s oil trade. Oil prices fell by more than US$2 a barrel on Monday after the announcement.

New Zealand’s government introduced legislation on Monday that would ban children under 16 from using social media platforms including Instagram, TikTok, Snapchat and Facebook. The proposal would allow fines of up to 10 percent of global revenue for companies such as Meta if they fail to take reasonable steps to verify users’ ages. The move targets heavy teen usage, with one in three 13- to 17-year-olds spending at least five hours a day on social media, and aligns New Zealand with a broader push by countries to strengthen online protections for minors.

Australia has formally implemented a digital platform news bargaining law that levies a 2.5% charge on platforms earning more than A$250mn in annual advertising revenue, whether or not they carry news. Meta, Google, TikTok and LinkedIn fall within the scope, with LinkedIn added in early August. The rate was lifted from an initial 2.25%, while deals with large publishers can be credited at 150% and agreements with small and medium-sized outlets at 200%, subject to a cap of 25% of total liability per deal.

Australia has passed the News Bargaining Incentive, imposing a 2.5% tax on advertising revenue for tech platforms that earn more than A$250 million in ad revenue in the country unless they reach paid agreements with news organisations. Deals with large publishers qualify for a 150% tax offset, while agreements with small and medium-sized outlets qualify for a 200% offset, with each single deal capped at 25% of the levy payable. The law applies to platforms including Meta, Google, TikTok and Microsoft’s LinkedIn.