Mumbai, July 31 -- The week gone by was dominated by two defining developments: a hawkish-leaning Fed hold and a further deterioration in Hormuz supply flows.

The FOMC voted 9-3 to hold the federal funds rate steady at 3.50-3.75% on 29 July, making it the Fed's the fifth consecutive hold. The three dissenting members expressed their preference for an immediate 25 basis point hike. The hawkish signal pressured EM assets broadly.

On the energy front, Brent saw buying strong demand this week after Trump threatened to hit Iran hard, with the conflict expanding beyond Hormuz into the Red Sea as Houthi militants declared a maritime embargo against Saudi Arabia.

As of Friday (31 July 2026), the Brent had partially eased as Hormuz flows partia...