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  • TSMC Reports Record Monthly Revenue of NT$442.68 Billion in June
    TSMC Reports Record Monthly Revenue of NT$442.68 Billion in June The world's largest semiconductor foundry, Taiwan Semiconductor Manufacturing Company (TSMC), has once again set a record for its monthly revenue.On July 13, TSMC announced that its revenue for June reached NT$442.68 billion (approximately US$20.8 billion), marking a 67.9% increase compared to the same month last year. This figure is 6.2% higher than the previous record of NT$416.98 billion (about US$19.6 billion) set in May.For the second quarter of this year (April to June), TSMC reported revenue of NT$1.27 trillion (approximately US$59.5 billion), a 36% increase from the same period last year. This figure slightly exceeds the forecast of NT$1.264 trillion compiled by LSEG based on estimates from 20 analysts.For the first half of the year, TSMC's cumulative revenue reached NT$2.404 trillion (approximately US$113 billion), a 35.6% increase compared to the same period last year.TSMC is scheduled to announce its full second-quarter results on July 16, along with updates on its annual performance outlook and capital investment plans.* This article has been translated by AI. 2026-07-13 16:28:00
  • Japanese Companies Link AI Skills to Employee Bonuses and Evaluations
    Japanese Companies Link AI Skills to Employee Bonuses and Evaluations Japanese corporations are increasingly implementing systems that link employees' artificial intelligence (AI) skills to bonuses, performance evaluations, and promotions. This shift encourages employees to utilize AI and directly ties their actual work performance to compensation and evaluations.The Nihon Keizai Shimbun reported on July 12 that Honda, a major Japanese automotive company, has established a program that awards employees recognized for their AI skills with monthly bonuses of up to 150,000 yen (approximately $1,400). This program targets about 45,000 employees across Japan, including those in research facilities.Honda evaluates employees' AI skills on a three-tier scale, providing bonuses in addition to their base salary. The assessment is based on written tests, interviews, and actual work performance. Employees who achieve concrete results, such as developing programs using AI, can attain higher ratings. As of July 2026, there are 280 certified employees, with plans to increase this number to 1,000 within a few years.Currently, around 10 employees receive the top-tier bonus of 150,000 yen. This highest rating is awarded to those who can propose AI utilization strategies tailored to various departments, including research and development, production, and management. Honda expects these employees to disseminate AI usage knowledge among their colleagues and promote its adoption within the company.More companies are also incorporating AI performance into employee evaluations. FamilyMart has required approximately 4,500 employees to include AI utilization plans in their work objectives since April, with the degree of achievement and improvements reflected in performance evaluations. All Nippon Airways (ANA) plans to incorporate AI-driven work improvements into evaluations and salaries starting in the 2024 fiscal year. For instance, a mechanic developed a system that uses AI image analysis for visual inspections of aircraft engines. ANA evaluates AI performance separately from regular work and sets different target levels based on job grades, allowing lower-graded employees to receive high evaluations for significant achievements.Mitsubishi Corporation plans to make passing the 'G Certification' exam, administered by the Japan Deep Learning Association, a requirement for promotion to managerial positions starting in the 2027 fiscal year. Sumitomo Corporation evaluates all employees' AI skills on a six-tier scale based on certification and work performance.The push for bonuses and promotions linked to AI skills stems from concerns that AI utilization is limited to certain departments. A survey by the Japanese recruitment firm Persol Career in February found that only 20% of over 500 manufacturing and telecommunications companies used AI company-wide. A report by Microsoft in May indicated that Japan ranked 48th globally in generative AI adoption, with a rate of 22.5%. In comparison, South Korea ranked 16th and the United States 21st, while the United Arab Emirates and Singapore topped the list.However, rewarding employees solely for high AI usage can lead to negative consequences. Amazon recently halted its ranking system for employee AI tool usage after some employees began using AI agents for unnecessary tasks. This shift turned the initiative into a competition for increased usage rather than meaningful application. Salesforce has introduced metrics to track how much employees' AI usage contributes to their work performance.Differences in AI utilization opportunities and training conditions across job types complicate the establishment of evaluation criteria. Shohei Gino, a researcher at Recruit Works Institute, noted that environments for learning AI technology are often unequal, and requiring uniform utilization from all employees could create perceptions of unfairness.As of now, few Japanese companies have integrated AI into their performance evaluations. A survey by Nihon Keizai Shimbun in March found that less than 10% of 143 major companies had adopted related systems. The challenge for these companies is not how much employees use AI, but how effectively they improve their work through AI.* This article has been translated by AI. 2026-07-13 16:12:00
  • Cosmax Forms Joint Venture with Fujishin to Launch Customized Cosmetics
    Cosmax Forms Joint Venture with Fujishin to Launch Customized Cosmetics Cosmetics ODM company Cosmax announced on July 13 that it has signed a joint venture agreement with Japanese beauty distributor Fujishin to establish a new company called Trinex. Fujishin is a leading beauty distributor in Japan, supplying hair care, skin care, and beauty devices to approximately 20,000 salons nationwide. Under the joint venture, Cosmax will hold a 51% stake, while Fujishin will own 49%. The two companies plan to create a business model that combines Cosmax's AI-based customized cosmetics formulation and manufacturing technology with Fujishin's salon distribution network. Cosmax will handle product planning and production management, while Fujishin will focus on marketing and distribution. Cosmax aims to accumulate operational experience and consumer data in Japan before expanding its business model to the United States and Italy. Lee Byung-joo, CEO of Cosmax BTI, stated, "This joint venture is the first instance of directly implementing Cosmax's AI customization technology and local distribution capabilities in the overseas market for customized cosmetics. We aim to set a new standard for customized cosmetics in the global market." Meanwhile, Cosmax reported a record high consolidated revenue of 682 billion won in the first quarter of this year, a 16% increase compared to the same period last year. Operating profit rose by 3% to 53 billion won.* This article has been translated by AI. 2026-07-13 16:12:00
  • Electricity Bills Surge by 6,790 Won After 450 kWh Usage Amid Summer Heat
    Electricity Bills Surge by 6,790 Won After 450 kWh Usage Amid Summer Heat As the summer heat drives up the use of air conditioning and other cooling devices, households are facing increased electricity bills. A key figure to watch in residential electricity rates during the summer months is the monthly usage of 450 kWh (kilowatt-hours).According to Korea Electric Power Corporation's (KEPCO) electricity rate table on July 13, a low-voltage residential customer using 450 kWh in July and August can expect a bill of 85,740 won. If usage increases to 451 kWh, the estimated bill rises to 92,530 won, an increase of 6,790 won.This calculation is based on low-voltage residential customers without applying discounts for large families, multiple children, or automatic payment. The amount includes value-added tax and the electricity industry fund but excludes TV reception fees. Actual bills may vary based on contract type, discounts, and billing periods.Summer low-voltage rates are divided into three tiers based on usage. The base fee is 910 won for usage up to 300 kWh, 1,600 won for 301 to 450 kWh, and 7,300 won for usage exceeding 450 kWh. The energy charge is 120 won per kWh for the first 300 kWh, 214.6 won for the next 150 kWh, and 307.3 won for any usage above 450 kWh. The summer tiered pricing applies from July 1 to August 31.The significant increase in estimated charges when moving from 450 kWh to 451 kWh is primarily due to the base fee. When usage is at or below 450 kWh, the base fee is 1,600 won, but it jumps to 7,300 won as soon as usage exceeds that threshold, an increase of 5,700 won.Additionally, the energy charge of 307.3 won per kWh, along with a climate environment fee of 9 won and a fuel cost adjustment fee of 5 won, contribute to the increased electricity bill. The final increase of 6,790 won includes value-added tax of 10% and the electricity industry fund of 2.7%, with any amount under 10 won rounded down.However, exceeding 450 kWh does not mean that the entire usage is charged at the rate of 307.3 won per kWh. For instance, if 451 kWh is used, the first 300 kWh is charged at the first-tier rate of 120 won, the next 150 kWh at the second-tier rate of 214.6 won, and only the excess 1 kWh is charged at the third-tier rate of 307.3 won. The main reason for the sudden spike in charges is not the retroactive application of a higher rate to the total energy usage, but rather the abrupt change in the base fee.In a similar scenario, if monthly usage increases from 419 kWh to 484 kWh, the estimated bill rises from 77,760 won to 104,480 won. While energy usage increases by 65 kWh, or about 15.5%, the bill rises by 26,720 won, or approximately 34.4%. This is due to the increase in the base fee and the application of the third-tier energy charge on the excess usage.The government and KEPCO operate the residential tiered pricing more broadly during the high cooling demand months of July and August. While other seasons have tiers based on 200 kWh and 400 kWh, the summer tiers are expanded to 300 kWh and 450 kWh, respectively.Electricity rates for the third quarter of this year remain frozen at current levels. KEPCO has maintained the fuel cost adjustment rate at 5 won per kWh for the July to September period. The base fee, energy charge, and climate environment fee have also not been adjusted separately.For households with high-voltage residential rates, the base fee and energy charge differ, leading to variations in bills and increases even for the same usage. Households that include electricity costs in their apartment management fees may also see differences in actual costs based on the contract type and distribution of common electricity charges.To assess the burden of summer electricity bills, it is essential to consider not only the billed amount but also the cumulative monthly usage and contract type. Particularly for low-voltage residential customers nearing the 450 kWh threshold, whether they exceed that limit will affect their base fee.* This article has been translated by AI. 2026-07-13 16:08:00
  • KOSPI Falls Below 7000 Amid Heavy Selling by Foreign and Institutional Investors
    KOSPI Falls Below 7000 Amid Heavy Selling by Foreign and Institutional Investors The South Korean stock market experienced a sharp decline, primarily driven by heavy selling in major semiconductor stocks. The KOSPI index fell below the 7000 mark due to simultaneous net selling by foreign and institutional investors, leading to a significant drop in investor sentiment.On July 13, the Korea Exchange reported that the KOSPI closed at 6806.93, down 669.01 points (8.95%) from the previous trading day. A sell-side circuit breaker was triggered at 10:34 a.m., followed by a trading halt for 20 minutes after a circuit breaker was activated again at 1:28 p.m.In the securities market, individual investors made net purchases of 3.88 trillion won, taking advantage of lower prices. However, foreign and institutional investors led the decline with net sales of 1.72 trillion won and 2.20 trillion won, respectively.Among the top market capitalization stocks, semiconductor companies were particularly affected. Samsung Electronics fell 10.70%, SK Hynix dropped 15.37%, SK Square decreased by 17.60%, and Samsung Electro-Mechanics fell 18.62%. Other notable declines included Hyundai Motor (-2.95%), Samsung Life (-4.26%), and Samsung C&T (-7.79%). Conversely, LG Energy Solution (0.77%), KB Financial (0.98%), and Samsung Biologics (0.36%) saw gains.The KOSDAQ index also fell below 800, closing at 799.36, down 38.07 points (4.55%). While institutions and individuals made net purchases of 212.1 billion won and 173.1 billion won, respectively, foreign investors sold off 386.8 billion won.Most of the top KOSDAQ stocks showed weakness, with declines including Alteogen (-2.31%), EcoPro BM (-1.48%), EcoPro (-2.56%), Juseong Engineering (-4.90%), Rainbow Robotics (-8.49%), Kolon TissueGene (-14.89%), Wonik IPS (-0.16%), Rino Technology (-2.03%), PSK (-2.53%), and EoTechnics (-5.02%).Han Ji-young, a researcher at Kiwoom Securities, noted, "The domestic stock market is structurally limited as the semiconductor sector accounts for nearly 60% of the KOSPI. When semiconductors falter, the entire index tends to follow suit. Additionally, the entanglement of supply and demand related to leveraged products is contributing to increased volatility." 2026-07-13 16:08:00
  • Industry Minister: Major Countries Invest Astronomically in Semiconductors, We Will Support with All Means
    Industry Minister: Major Countries Invest Astronomically in Semiconductors, We Will Support with All Means The government is set to provide substantial financial support to bolster private sector investments in semiconductors. Additionally, it plans to enact the mega special zone law within the year, granting companies the highest level of regulatory exemptions.Kim Jung-kwan, Minister of Trade, Industry and Energy, made these announcements during a national fiscal strategy meeting held at the Blue House on July 13.Minister Kim stated, "Countries like China, Japan, and the United States are pouring astronomical amounts of money into semiconductor competition, viewing it as a war for national survival. We will boldly mobilize all means, including budgets, funds, and policy finance, to ensure our companies succeed."To facilitate swift implementation of large-scale private investments, the government will provide comprehensive support for infrastructure, including land, water, and power. This initiative aims to accelerate the completion of the Yongin semiconductor cluster by 12 years, with the goal of operationalizing the Honam semiconductor cluster by 2030-2031.The government will also focus on nurturing the relatively weak materials, parts, and equipment (known as SoBaJang), as well as the packaging and foundry industries. Minister Kim emphasized, "To prevent overseas SoBaJang companies from reaping the benefits of our semiconductor firms' large-scale investments, the government will closely support the establishment of domestic production bases for SoBaJang R&D and ensure rapid development of next-generation packaging technologies and validation bases."Furthermore, the government will pursue the acquisition of next-generation technologies, including AI semiconductors, power semiconductors, and defense semiconductors. He noted, "We will concentrate support on large-scale R&D to quickly secure on-device AI chips and foster next-generation cargo and power semiconductors."Institutional support will also be implemented. The mega special zone law will be enacted within the year to provide the highest level of regulatory exemptions for semiconductor investment companies. A comprehensive support package will be prepared, including tax incentives, investment promotion, and infrastructure. The existing special semiconductor law will also be transitioned into an 'execution-type special law' responsible for implementing large-scale national projects like mega projects.Plans to foster AI robots were also unveiled. The government will establish industry-specific data factories nationwide to develop a Korean-style robot foundation model, and will support the localization of key components with low domestic production rates, such as actuators and robotic hands, through dedicated R&D. Additionally, specialized humanoids will be developed for ten major industries to be deployed in industrial settings.To stimulate initial demand, the government will take proactive purchasing measures. Minister Kim explained, "In China, the government purchases 45% of the humanoids produced by companies, encouraging their mass production investments. We will expand the budget for validation and purchasing to promote private demand and actively purchase AI robots for research purposes."Minister Kim concluded, "Our companies are investing in the future with the fate of their industries and businesses at stake. It is now the government's and the National Assembly's turn to provide support. We will ensure that bold and comprehensive financial and institutional support is swiftly implemented so that we do not fall behind competing nations as the private sector takes the lead in achieving a great leap forward for South Korea."* This article has been translated by AI. 2026-07-13 16:04:00
  • Lotte Department Store Partners with G-Dragons Just Peace Foundation for UNESCO Heritage Fund Campaign
    Lotte Department Store Partners with G-Dragon's Just Peace Foundation for UNESCO Heritage Fund Campaign Lotte Department Store is joining forces with the Just Peace Foundation, established through singer G-Dragon's copyright donation, to take a leading role in the preservation of UNESCO World Heritage sites. This initiative aims to enhance its role as a 'social platform' that protects cultural values beyond just being a shopping space. On July 13, Lotte Department Store announced that it signed a memorandum of understanding (MOU) with the Just Peace Foundation on July 10, becoming an official partner in the UNESCO World Heritage Fundraising Campaign. The agreement aims to raise awareness about the importance of heritage preservation and to encourage customer engagement. The Just Peace Foundation, based on G-Dragon's copyright donation, is a public foundation that promotes solutions to social issues through culture and arts, as well as the development of artistic talent. Recently, it has ramped up efforts to expand private participation in the fundraising campaign for the World Heritage Fund, coinciding with the 48th UNESCO World Heritage Committee meeting in Busan. As its first collaborative project, Lotte Department Store will host customer participation programs during the cultural events at the Korea Pavilion at the World Heritage Committee meeting, which will take place at BEXCO in Busan from July 20 to 29. The World Heritage Committee is an international conference that discusses the listing, preservation, and management of World Heritage sites. This year, the committee will convene from July 19 to 29 at BEXCO, marking the first time South Korea has hosted the event since joining the World Heritage Convention 38 years ago in 1988. Visitors to the event will receive limited edition transportation cards featuring UNESCO World Cultural Heritage sites, and a quiz event utilizing the Lotte Department Store app will be held, with K-beauty products as prizes for correct answers. This initiative aims to provide accessible and engaging content related to cultural heritage. Park Sang-woo, head of marketing at Lotte Department Store, stated, "We are honored to contribute to raising awareness about the importance of heritage preservation and to promote social value for a sustainable future of World Heritage as a leading retail company in Korea."* This article has been translated by AI. 2026-07-13 16:04:00
  • Kim Bit-nae Becomes First Korean and Asian Recipient of HFSP Nakasone Award
    Kim Bit-nae Becomes First Korean and Asian Recipient of HFSP Nakasone Award Kim Bit-nae, head of the RNA Research Group at the Institute for Basic Science (IBS) and a professor at Seoul National University, has become the first Korean and Asian recipient of the prestigious Nakasone Award from the Human Frontier Science Program (HFSP).The Ministry of Science and ICT announced on July 13 that Kim has been selected as the 2027 Nakasone Award recipient.The Nakasone Award is given to researchers who have made significant scientific advancements in the life sciences. It evaluates research achievements regardless of nationality or age, and is considered a stepping stone to the Nobel Prize, with four of the 21 past recipients having won Nobel Prizes.Particularly, the Nakasone Award focuses on discoveries that have expanded the horizons of life sciences from research published in the last decade. This award marks the first time a Korean and Asian researcher has been honored since the award's establishment in 2010.Since 2012, Kim has led the IBS RNA Research Group, uncovering key principles governing the generation, function, and degradation of RNA. Her work has revealed new regulatory mechanisms of gene expression and atypical RNA processing pathways, enhancing understanding of disease mechanisms and biological phenomena. She has also contributed to the development of molecular foundations for high-efficiency messenger RNA (mRNA) therapeutics and vaccines.HFSP recognized Kim for her discovery of atypical RNA tailing pathways and her elucidation of new regulatory mechanisms of gene expression.Kim was selected as a final candidate by the HFSP Scientific Advisory Committee in April, competing against 45 scientists worldwide, and was confirmed as the 2027 Nakasone Award recipient by the HFSP Board on July 6.The award includes a commemorative medal, a certificate, and $15,000 in research funding. Additionally, Kim will deliver a commemorative lecture at the HFSP annual conference next year.Deputy Prime Minister and Minister of Science and ICT Lee Jae-myung stated, "The selection of Kim as the first Korean recipient of the HFSP Nakasone Award is a proud achievement that recognizes our capabilities in life sciences on a global scale. We will continue to actively support researchers at the forefront of science and technology to ensure they consistently produce world-class innovative results and gain recognition on the global stage."Historically, the Nakasone Award has primarily been awarded to researchers from the United States and Europe, with 12 recipients from the U.S., five from Germany, and three from Israel. Among past winners, Emmanuelle Charpentier and Jennifer Doudna jointly received the Nobel Prize in Chemistry in 2020, while David Julius and Svante Pääbo won the Nobel Prize in Physiology or Medicine in 2021 and 2022, respectively.* This article has been translated by AI. 2026-07-13 16:04:00
  • Surge in Auction Activity in Semiconductor Belt Amid Land Transaction Restrictions
    Surge in Auction Activity in Semiconductor Belt Amid Land Transaction Restrictions The government has designated Dongtan in Hwaseong, Giheung in Yongin, and Guri as land transaction permit areas due to soaring housing prices driven by the semiconductor industry. This has made the auction market in these regions a focal point. While the general sales market has seen increased barriers to transactions due to permit procedures and residency requirements, the auction market has experienced bids exceeding appraised values and heightened competition, suggesting a potential increase in future demand.According to Gigi Auction on July 13, the auction sale rate for apartments in Dongtan, Hwaseong, rose from 95.01% in April to 98.03% in May, reaching 107.02% in June. The sale rate reflects the ratio of the final bid amount to the appraised value. The average number of bidders also increased during this period, from 6.20 to 7.56, and then to 10.45, indicating intensified competition.High bid amounts have been recorded for individual properties as well. In an auction last month for a 102-square-meter unit at the 'Dongtan Station Lotte Castle Albatross' in Cheonggye-dong, 18 bidders participated, and it sold for approximately 1.1 billion won, about 120% of the appraised value. On July 3, just before the land transaction permit designation, a 104-square-meter unit at 'Lake Bandou Yubora Ivy Park' in Jangji-dong, Dongtan, was sold for 714 million won, exceeding its appraised value of 650 million won.A similar trend is observed in Guri. In June, the average auction sale rate for apartments in Guri reached 103.72%, with a bid rate of 100%. The SK-Shinil Apartments in Topyeong-dong sold for 104% of the appraised value after 14 bidders competed. In Yongin's Sanggal-dong, a 60-square-meter unit at 'Geumhwa Village Jugong Greenville' also attracted 13 bidders, selling for 117% of its appraised value.On July 5, the government designated Dongtan, Giheung, and Guri as land transaction permit areas. This measure aims to curb speculative transactions following a rapid increase in housing prices driven by the development of semiconductor industrial complexes and transportation improvements. After the implementation of the land transaction permit system, buyers of properties above a certain size must meet permit requirements for actual residency, which is expected to limit some investment demand in the general sales market.In contrast, auctions are conducted under civil enforcement law, allowing purchases to proceed without needing a separate land transaction permit. This makes auctions an attractive alternative with lower entry barriers compared to general sales. As the auction sale rates and number of bidders have already increased, if some investment demand shifts from the general sales market to auctions, competition could intensify further.The housing prices in the semiconductor belt region continue to rise. According to the Korea Real Estate Agency's report on apartment price trends for the first week of July, apartment prices in Dongtan, Hwaseong, increased by 1.29% compared to the previous week. Although the rate of increase has slowed, it remains above 1% on a weekly basis.Experts believe that while the land transaction permit system may effectively suppress speculative demand, it will be challenging to weaken actual demand based on industrial complexes and transportation improvements in the short term. In areas like Dongtan, Giheung, and Guri, where proximity to workplaces is highly anticipated, some demand may shift to the auction market.Kang Eun-hyun, head of the Law Firm Myungdo Auction Research Institute, stated, "Since auctions proceed without needing a separate land transaction permit, they have relatively lower entry barriers compared to general sales. Dongtan's market sentiment is already heated due to expectations surrounding Samsung Electronics' investments. If general sales are restricted by the land transaction permit system, there is a significant possibility that some investment and actual demand will turn their attention to the auction market."* This article has been translated by AI. 2026-07-13 16:00:00
  • US-Iran Tensions Escalate Over Control of Hormuz Strait, Shipping at Lowest in 5 Weeks
    US-Iran Tensions Escalate Over Control of Hormuz Strait, Shipping at Lowest in 5 Weeks The conflict between the United States and Iran over control of the Hormuz Strait has escalated into armed clashes for a second consecutive day. Following Iran's attack on a commercial vessel transiting the strait and its declaration to close the waterway, the U.S. launched a series of airstrikes against Iranian military facilities. Iran retaliated by firing missiles and drones at U.S. military bases and allied nations in the Gulf region.According to reports from AP and Reuters, the clashes began when the Islamic Revolutionary Guard Corps (IRGC) attacked the container ship 'GFS Galaxy,' registered in Cyprus, on July 11. The vessel suffered significant damage to its engine room and caught fire, forcing it to halt operations. Authorities in Oman rescued 23 crew members, but one Indian national remains missing.The IRGC claimed that the ship ignored warnings and used a route not approved by Iran, asserting, "We will close the Hormuz Strait until U.S. military intervention ends."The core of the conflict lies in who sets the navigation rules for the strait. The U.S. maintains that civilian vessels should be able to pass freely without Iranian approval, while Iran insists it has the authority to designate and manage the routes.Clash Triggered on Omani Route; US Strikes 300 Iranian TargetsThe U.S. has been supporting vessels to use the southern route along Oman to avoid Iranian territorial waters. Iran views this as an attempt to undermine its authority and has issued warnings to ships using that route. The attacked container ship was also navigating this path.Following the attack on the commercial vessel, the U.S. launched extensive airstrikes targeting key Iranian military facilities from July 11 to 12. The strikes focused on missile and drone facilities, air defense systems, communication equipment, coastal radar, and IRGC vessels. The U.S. Central Command stated that the operation aimed to weaken Iran's capability to attack commercial vessels.In response, Iran fired missiles and drones toward Bahrain, Kuwait, Qatar, Jordan, and Oman, where U.S. military bases and allied facilities are located.In Qatar, debris from interception efforts injured three people, including a child. In Kuwait, a border post and offshore oil drilling facility were damaged, injuring one worker. Some facilities in Jordan were also reported damaged. Oman summoned the Iranian ambassador to protest the attacks on its territory.The exchanges continued through July 13, with the IRGC claiming to have disabled the systems of two vessels in the Hormuz Strait, halting their operations. However, the names, nationalities, and details of the affected vessels were not disclosed.The U.S. and Iran have conflicting claims regarding whether the strait is actually closed. The U.S. asserts that shipping operations are ongoing, indicating the strait remains open, while Iran insists it will prevent vessels from passing without its permission.Strait Remains Open, but Shipping Volume Plummets; Peace Talks at RiskIn reality, shipping activity has significantly decreased. According to shipping data provider Kpler, only six vessels transited the strait on July 12, the lowest number in five weeks. Most oil tankers were reported to have turned off their Automatic Identification Systems (AIS), and no liquefied natural gas (LNG) carriers were confirmed to have passed over the weekend.While some vessels may have moved without AIS, the overall traffic is clearly down compared to the pre-conflict average of about 140 vessels per day.The Hormuz Strait is a critical shipping route, accounting for approximately 20% of global oil and natural gas trade before the conflict. Concerns over escalating clashes and supply disruptions led to a more than 4% increase in Brent crude prices in Asian markets on July 13.Oman recently proposed reopening both routes through its territorial waters during negotiations with Iran, including allowing the southern route to be used without prior approval as before the conflict. However, the Iranian delegation decided not to reach an agreement on-site and opted to review the proposal in Tehran. With attacks on commercial vessels occurring in the southern route and ongoing exchanges between the two nations, mediation discussions are now at risk of being halted.This escalation raises the likelihood of derailing the memorandum of understanding (MOU) signed last month between the U.S. and Iran, which aimed to normalize shipping operations in the strait within 60 days. However, both sides have been unable to reconcile their differences over management authority and vessel safety guarantees.Mediation efforts by countries such as Qatar, Pakistan, and Egypt are ongoing, but the cycle of commercial vessel attacks, U.S. airstrikes, and Iranian retaliation raises fears of a return to full-scale conflict. 2026-07-13 16:00:00