• The U.S. military said on Monday, July 20, 2026, that it was carrying out its 10th consecutive night of strikes on Iran in a push to reopen the Strait of Hormuz. The renewed bombings followed the death of another American service member and Iranian attacks on Kuwait, Jordan and Bahrain, home of the U.S. Navy's Fifth Fleet.
• The interim deal signed last month to end the fighting has crumbled. Shipping through the Strait of Hormuz has largely stalled, and as fighting intensifies, both sides have targeted civilian infrastructure relied on by millions of people.
• Furthermore, a new potential threat to world energy markets emerged on Monday, July 20, 2026, after Iran-backed rebels in Yemen said they planned to prevent Saudi Arabia from shipping in the Red Sea, an alternate route for oil exports during the war. This raises the risk of disruptions extending beyond the Strait of Hormuz to another key global energy shipping route.
• The escalation has pushed oil prices higher, with Brent crude trading above US$88 per barrel and average U.S. gasoline prices rising to US$4 per gallon. The conflict has also expanded across the region, with Kuwait intercepting an incoming barrage, Jordan shooting down three Iranian missiles, and Bahrain condemning drone strikes on its air traffic systems.
• Despite the escalation, diplomatic efforts continued. Iran's Interior Minister travelled to Pakistan for talks aimed at reviving the interim ceasefire, while U.S. Secretary of State Marco Rubio said Washington remained open to negotiations, provided they were "real."
• Even as diplomatic efforts continue, the renewed hostilities could keep oil prices elevated and increase volatility across energy and financial markets.

(Sources: Associated Press & Reuters)

• The annual inflation rate in the Dominican Republic rose to 5.67% in June 2026 from 5.35% in the previous month, marking the highest reading since March 2023.
• The strongest price pressures were recorded in transport (8.37%), restaurants and hotels (8.03%), and food and non-alcoholic beverages (7.01%). Education prices also rose at a faster pace than the overall inflation rate, increasing 6.64%. Additionally, Costs increased for alcoholic beverages and tobacco (5.47%), healthcare (4.94%), housing (2.47%), furniture and household equipment (2.17%), and recreation and culture (2.20%). Meanwhile, prices continued to decline for clothing and footwear (-1.15%) and communications (-0.80%).
• On a monthly basis, consumer prices rose 0.51% in June, following a 0.31% increase in May.
• At its meeting on 30 June, the Central Bank of the Dominican Republic (BCRD) left its monetary policy rate unchanged at 5.25% for the eighth consecutive meeting, keeping borrowing costs among the highest in Central America and the Caribbean.
• While most of its panellists continue to expect the Bank to begin lowering rates before the end of 2026 as inflation gradually moderates, June's stronger-than-expected inflation reading has clouded the outlook. As a result, a sizeable minority of analysts now expect the policy rate to remain at or above its current level through December, supported by resilient economic growth, persistent inflationary pressures and the expected trajectory of U.S. Federal Reserve policy.
• Looking ahead, renewed geopolitical tensions in the Middle East, adverse weather linked to a severe El Niño event could create further upside surprises in inflation that could delay the start of monetary easing and keep the BCRD in a restrictive stance for longer.

(Sources: Trading Economics & NCBCM Research)

• Tropical Battery's Amazon launch has established an early U.S. market presence, with products reaching customers in more than 39 states, demonstrating stronger-than-expected geographic penetration and validating the Company's cross-border e-commerce strategy.
• While revenues remain immaterial at this stage, the launch confirms the Company's ability to generate U.S. dollar earnings directly from Jamaica through Amazon's fulfilment network, creating a scalable platform for future export growth without the need for a physical U.S. presence.
• The first product, DNI windshield washer fluid, was strategically selected as a high-demand consumable to establish the Company's Amazon operations and fulfilment capabilities. The company also plans to expand its product portfolio to 10 Amazon listings within the next 12 months, including a winter-grade windshield washer fluid later this year.
• The initiative supports Tropical Battery's strategy to diversify revenue streams, expand internationally, and increase foreign exchange earnings. While this represents a step in the right direction for the Company, several challenges remain, including tight margins, intense price competition, supply chain reliability, brand development, and foreign-currency reporting. Nonetheless, management remains confident that the platform offers significant long-term growth potential.
• Since the start of the year, Tropical’s stock price has declined by 13.2% to $1.38 on Wednesday, July 1, 2026. At this level, the stock trades at a price-to-earnings (P/E) ratio of 10.9x, which is below the Main Market Energy, Industrials and Materials Sector average of 13.4x

(Sources: JSE & NCBCM Research)