Saturday, September 5, 2026
Iran: BRICS must condemn war against Iran
Iranian Chief Justice Gholamhossein Mohseni Ejei called on the members of BRICS to condemn the joint "aggression" of the United States and Israel against Iran, Iranian ISNA News Agency reported on Saturday.
"BRICS members should first condemn the violation of the sovereignty and territorial integrity of the country of Iran in accordance with international standards, especially the United Nations Charter, and take the necessary measures to prevent the illegal actions of the aggressors," Ejei said in his speech at the BRICS Judiciary Heads' Meeting in Delhi.
Ejei reminded the participants of the US "violations" in Venezuela, Afghanistan and Iraq, and of the "Zionist crimes" in Gaza and Lebanon.
https://breakingthenews.net/Article/Iran:-BRICS-must-condemn-war-against-Iran/67050881
US Gulf-China VLCC rate hits record high
The rate for a bellwether very large crude carrier (VLCC) shipment from the US Gulf coast to China hit its highest level on record today of over $14/bl on strong Asia-Pacific demand, driven by the escalation of hostilities between the US and Iran at the start of Hormuz.
Commodity trader ST Shipping put the VLCC Helios on subjects for a US Gulf coast to Asia-Pacific voyage loading from 13-16 October at $29.75mn lumpsum, including $250,000 load-port fees, equivalent to $14.29/bl, boosting the rate for a US Gulf coast-China voyage by $1.15mn day-over-day to that level. This represents the highest level since Argus began its US Gulf coast-China assessment in November 2017.
That deal came after Japanese commodity trader Idemitsu put the Maran Apollo on subjects for a US Gulf coast-Japan voyage at $29.25mn, including load-port fees. Norway state-owned refiner Equinor and US independent producer Occidental both put VLCCs on subjects for elsewhere in Asia-Pacific at $27.65mn each, including load-port fees. Charterers have put at least 10 VLCCs on subjects for US Gulf coast to Asia-Pacific voyages since 31 August, including the four from today.
Asia-Pacific demand was also high this week for Brazilian crude, with at least eight VLCCs provisionally hired by charterers in that spot market. This was largely driven by strong Chinese restocking demand to keep up with high refined product demand from elsewhere in Asia-Pacific, as Chinese refiners burned through crude stocks, with no end in sight to largely cut-off Mideast Gulf crude flows. The higher competition for Brazilian shipments from these buyers since mid-August likely contributed to the increase in US-loading VLCC demand from Asia-Pacific buyers outside of China like Japan and Taiwan.
Midsize rates climb on VLCC spillover
The surge in freight rates for the largest crude carrier segment has helped to boost rates for Suezmax and Aframax tankers, with the former in particular benefiting from split cargoes from VLCCs in some instances.
The rate for a Brazil-Europe Suezmax voyage jumped by 16.5pc day-over-day to Worldscale (WS) 245 today, while US Gulf coast-loading Suezmax shipments into Europe rose by 11pc to WS202.5 from Thursday.
Rising freight rates for VLCCs in the west Africa spot market, which shares a tonnage pool with the Brazilian market, encouraged charterers to explore splitting these 2mn bl cargoes onto two 1mn bl Suezmax tankers on 2 September, according to a shipbroker.
Meanwhile, Aframax shipments of WTI crude from the US Gulf coast into Europe have been trading at, and even below, parity with VLCC-sized shipments of WTI on the same route on a $/bl basis. Aframax tankers typically trade at a premium to VLCCs in this context given the greater number of ports the smaller tanker can access and its ease in loading and unloading compared to VLCCs. The last time Aframax-sized shipments of WTI into Europe were cheaper than VLCCs on the same route was in February 2021.
The surge in VLCC demand from Asia-Pacific will likely encourage US Gulf coast buyers globally to increasingly consider the midsize segment in the near term, maintaining the upward pressure on rates for Aframaxes and Suezmaxes even after the long holiday weekend for US traders.
US clears $5B in JDAMs for Saudi Arabia, other Middle East deals
The US State Department today greenlit several potential arms deals for key Middle East partners Saudi Arabia, Oman and Iraq, totaling about $6.1 billion-worth of equipment.
By far the largest approved sale would be for Riyadh to buy just over 10,000 kits of the extended range Joint Direct Attack Munition (JDAM) and associated equipment in a deal valued at $5 billion. The prospective transaction includes a similar number of dumb bombs — split almost evenly between 500 lb. and 2,000 lb. munitions — which when equipped with a JDAM can be used as a precision weapon. JDAMs are supplied by aerospace giant Boeing.
Saudi Arabia’s JDAM stockpiling comes amid heavy aerial bombardment during conflict with Iran, which has depleted inventories of key precision munitions, according to an estimate by the Center for Strategic and International Studies. The JDAM is often seen as a cheaper alternative to more exquisite weapons, but Boeing has previously said its extended range variant is limited to a distance of over 45 miles — requiring aircraft carrying the weapon to fly relatively closer to a target.
The State Department today additionally cleared a second potential arms sale for Riyadh covering 60 AGT-1500 tank engines, which are used to power the M1 Abrams. That deal, according to the State Department, is valued at $750 million, and the prime contractor is Honeywell.
Separately, Oman was approved to buy $188 million worth of sustainment services for its fleet of F-16 fighter jets. While Lockheed Martin builds the F-16 and principally runs the aircraft’s sustainment, the State Department notice says that “no principal contractor” is associated with the potential sale, and that “[s]upport will be provided by U.S. Government or contracted vendors based upon requirements as they are determined.”
A mediator in the Iran conflict, Oman has also been the target of President Donald Trump’s ire, including threats by the president to bomb the Gulf sultanate.
Finally, the State Department authorized the possible sale of Bell 412EPX helicopters to Iraq, which the notice says is estimated at $150 million. The primary contractor for that purchase would be Bell-Textron.
That announcement follows a similar sale cleared by the State Department on Monday for Baghdad to buy $800 million worth of helicopters, including the Bell 412EPX and 407M. A spokesperson for the State Department declined to comment for the record on the back-to-back helo announcements.
Each sale announced today, issued in the form of a congressional notification, is not final. Quantities and dollar totals often shift during negotiations. The notifications also technically tee up an opportunity for lawmakers to block each deal within a 30-day period, though such a step would be unlikely.
https://breakingdefense.com/2026/09/us-clears-5b-in-jdams-for-saudi-arabia-other-middle-east-deals/
Pimco's Top-Performing 60/40 Fund Bets AI's Next Winners Are In Asia, From Chips To Rare Earths
Emmanuel Sharef, who oversees Pacific Investment Management Co.'s flagship Balanced Income and Growth Fund, spoke with Bloomberg about how the next leg of the artificial-intelligence boom could be concentrated in Asian stocks and beyond.
Wealthy clients in Taiwan, Hong Kong, Singapore, and mainland China have been piling into the $19 billion fund, which has outperformed 97% of its peers during the past three years.
The fund is underweight most hyperscalers and members of the Magnificent Seven as soaring AI capital expenditures increase debt loads, pressure free cash flow, spark credit concerns, and make already eye-popping valuations much harder to justify.
"We're underweight the majority of hyperscalers at the moment and we're underweight the majority of the Mag seven just given their high valuations," Sharef told the outlet earlier this week.
He continued, "You don't necessarily need to own the most expensive stocks to capture a particular theme or a particular market trend."
The 60/40 Balanced Income and Growth Fund has been moving further down the supply chain toward companies that build data center components and has become overweight in Asia, where it sees stronger earnings growth, cheaper valuations, and greater exposure to the companies that should be viewed as the building blocks of a data center.
That infrastructure includes semiconductor components, cooling systems, cable interconnects, optical equipment, power supplies, construction machinery, and industrial metals.
"The AI capex build-out is enormous," he said. "It would imply significant demand for semiconductor components for chips, cooling equipment, cable interconnects, optical equipment, power supplies, construction equipment, metals, all of the things that go into building a data center."
The fund's 60% stock allocation gained exposure to AI last year by plowing billions of dollars into firms such as Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing.
Sharef also highlighted a theme we've been developing: the importance of exposure to mining and materials companies tied to data-center construction and global rare-earth supply chains.
"Chinese resource extraction and materials companies are quite significant, not just for the data center buildup, but also for rare earths," he added.
Sharef's call to gain exposure to rare earths and critical materials reinforces a theme we have been developing: the AI trade is ultimately constrained by access to the physical inputs required to build chips, data centers, and power infrastructure. Rare earths and other critical materials are becoming a crucial component of the next AI trade as Chinese suppliers restrict some shipments to the US and US companies accelerate efforts to secure alternative sources beyond Beijing's reach.
The takeaway from Sharef's conversation with Bloomberg is that the next AI winners will be on an ex-US basis, mostly in Asia.