Fuel prices in Singapore have continued their downward trend into July. On Sunday evening (5 July), Shell announced a reduction of S$0.10 per litre for diesel at its pumps, bringing the price to S$3.95 per litre – making it the first major retailer to bring diesel back below the S$4 mark.

Shell’s price cut came just over three months after it had raised diesel prices above S$4 on 28 March. Following Shell’s lead, Caltex matched the 10-cent reduction on Monday, and Esso followed with an identical cut. Sinopec took a more aggressive approach, lowering its diesel price by 15 cents.

After the latest round of adjustments, the diesel prices at major retailers are as follows: Shell, Caltex and Esso at S$3.95 per litre, and Sinopec at S$3.89 per litre. Data from the Singapore Consumer Association’s “Price Kaki” app shows that diesel prices now vary widely across the island, ranging from Smart Energy’s S$2.58 per litre to SPC’s S$4.05 per litre. All prices are before discounts.

Notably, petrol prices at all retailers remained unchanged during this adjustment. This follows a similar pattern from 2–3 July, when Shell led a price adjustment and Caltex and Sinopec subsequently followed suit.

On the international crude market, Brent crude futures edged down 0.42% on Monday to US$71.82 per barrel (as of 3:26 pm Singapore time). This level is close to where prices stood before the US and Israel launched strikes against Iran in late February, and well below the highs of nearly US$120 per barrel reached in March. Market analysts note that recent fuel price declines reflect changes in wholesale costs. With the US observing its 250th Independence Day long weekend and Iran holding funerals for its late Supreme Leader Khamenei, both sides have refrained from major action, keeping the crude market relatively calm.

Industry observers expect that if international oil prices remain at current levels, there is room for further reductions in Singapore’s local fuel prices.

The Straits Times Index (STI) extended its gains at Tuesday’s (7 July) open, hitting another intraday record high.

Driven by overnight gains in US technology stocks, the STI opened 4.92 points, or 0.09%, higher at 5,264.73. By 9:10 am, the index had widened its gains to 0.55%, reaching 5,288.84. The previous day (6 July), the STI had already risen 0.91% to close at 5,256.37, after touching an intraday high of 5,259.82. Over the past five trading sessions, the index has gained 1.66%, sitting just 0.1% below its 52-week high.

Banking stocks have been the primary drivers of this rally. Shares of OCBC, DBS and UOB rose 1.65%, 1.14% and 1.06%, respectively. Market analysts note that investors continue to rotate funds into domestic financial and transport sectors, reflecting confidence in Singapore’s economic outlook. DBS Group Holdings, as Singapore’s largest bank and a heavyweight STI component, has contributed significantly to the index’s performance.

The government’s expanded S$6.5 billion Equity Development Programme (EQDP) continues to provide structural support to the local stock market, boosting institutional participation. In its latest professional forecast survey, the Monetary Authority of Singapore (MAS) slightly lowered its 2026 GDP growth forecast to 3.5%, but economists still expect the MAS to maintain its monetary policy stance at its July review, which helps stabilise investor sentiment.

Singapore Exchange (SGX) has been the best-performing STI component in the first half of 2026, with its share price rising about 42%, buoyed by active trading activity and market support measures. JPMorgan had previously raised its base-case target for the STI to 6,000 points, with an optimistic scenario of 6,500, citing robust earnings prospects, a strong Singapore dollar, high dividends and the index’s status as a safe‑haven asset amid global geopolitical uncertainty.

Some investors took profits after the strong rally, but selling pressure was limited, suggesting underlying sentiment remains positive. Market watchers will be watching closely to see whether the STI can extend its record run in the coming weeks, while also monitoring global market developments and fresh catalysts such as corporate earnings.

Singapore’s Ministry of Trade and Industry (MTI) submitted written comments to the US Trade Representative (USTR) on 6 July, formally responding to the US investigation launched against Singapore under Section 301 of the Trade Act of 1974.

In its submission, Singapore made clear that it has not adopted any unreasonable or discriminatory acts, policies or practices that would burden or restrict US commerce. Regarding US concerns over forced labour, MTI stated that there is no evidence that Singapore is involved in supply chains that export goods to the US and are linked to forced labour. Singapore said it is in ongoing communication with the USTR regarding the findings and proposed actions.

The investigation stems from a series of Section 301 investigations announced by the USTR on 11 March 2026 (US time), covering 16 economies including Singapore on issues of structural overcapacity and manufacturing production. On 12 March, the US initiated another Section 301 investigation concerning Singapore’s alleged failure to effectively enforce its ban on imports of forced labour products. In total, the two investigations cover about 60 economies.

Under the USTR’s schedule, the Section 301 Committee held a public hearing on 7 July. The US had previously proposed imposing an additional 10% tariff on six economies deemed “partially compliant”. These proposed measures are intended to replace the current 10% Section 122 tariffs, which are set to expire on 24 July.

The Singapore Business Federation (SBF) had earlier submitted its own comments to the USTR, emphasising that Singapore has enforceable legal prohibitions backed by criminal penalties and anti‑trafficking measures. Singapore has consistently stressed its market economy status and robust labour enforcement framework.

Analysts point out that the consultative nature of the Section 301 process means that final tariff imposition is not a foregone conclusion. The US will decide whether to formally impose tariffs and at what rates after hearing all views. The US is a key trading partner for Singapore, and the outcome of this investigation will have significant implications for bilateral trade relations.