Trump puts ‘open’ sign on Hormuz. But traffic is barely trickling

Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.

When a store turns its sign to “open,” one can freely enter and exit the establishment. But the current state of geopolitics appears to be distorting what being open means.

U.S. President Donald Trump claims the Strait of Hormuz is open, yet shipping traffic via the critical energy waterway has hit a three-month low, as vessels come under attack.

In other words, when the person putting the open sign is not truly in charge of the establishment, the credibility of the claim comes under scrutiny, deterring entry.

Trump said Tuesday that the Strait of Hormuz was “open and operating,” even as he ruled out fresh negotiations with Tehran, following the expiration of a temporary ceasefire.

There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran,” the U.S. president wrote on Truth Social.

Stalled negotiations have increased uncertainty about the status of the Hormuz waterway, with ship traffic through the strait slowing sharply. Data from commodity analytics firm Kpler showed crossings at a five-day average of just 10 vessels, the lowest level since May.

Markets are also not buying Trump’s claims that the strait is open for navigation. Oil prices stay elevated, with Brent crude remaining above $91 a barrel, while U.S. West Texas Intermediate futures rose 0.52% to $85.38 in early Asia hours.

A cargo ship came under attack while exiting the Strait of Hormuz, leaving one crew member dead, despite the vessel sailing in Omani territorial waters, known as the “southern route.” The U.S. military assists vessels that take the southern route, but Iran has still managed to attack ships sailing that corridor.

Bond yields soar

U.S. Treasury yields have climbed to multi-decade highs, as hopes for an end to hostilities in the Middle East rapidly fade.

The jump in yields come as the U.S. fiscal deficit rose to $432.3 billion in July, its highest monthly total since March 2021, pushing the year-to-date shortfall to nearly $1.8 trillion.

Interest paid to finance the nearly $40 trillion national debt has cost the government about $1.2 trillion this year.

Yields around the globe also rose Tuesday, with Germany’s benchmark 10-year bund yield hitting a 15-year high, while Japan’s 10-year bond yield also topped the 30-year high seen earlier this year.

Tariffs make a comeback

Trade tensions are returning as well.

Trump’s 50% tariffs on about $20 billion of Canadian imports are set to take effect within hours, unless Washington and Ottawa reach a last-minute agreement.

The duties cover products including alcohol, dairy goods, cement and even the humble hockey stick.

Trump and Canadian Prime Minister Mark Carney spoke late Monday stateside…