Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
The U.S. dollar gained ground on Thursday, rising 0.3% to 99.90 on the US Dollar Index, as conflicting signals surrounding U.S.-Iran peace negotiations renewed demand for safe-haven assets. Investors looking for stability amid geopolitical uncertainty continued to favor the greenback, putting it on track for a monthly gain of over 2%.
Mixed messages emerged from Washington and Tehran regarding a 15-point peace proposal. While Iran publicly rejected the terms, President Trump insisted that negotiations were actively progressing, stating that Iranian negotiators were eager to reach a deal. In a later social media update, Trump confirmed he was extending the suspension of U.S. strikes on Iranian energy infrastructure by 10 days at Tehran's request, signaling that dialogue, however fragile, remains open.
Oil markets remained elevated, with crude prices hovering above the $100-per-barrel mark. Though prices have eased from a near-$120 peak earlier in March, they remain significantly higher than pre-conflict levels from late February. A key concern continues to be the Strait of Hormuz, which handles roughly one-fifth of global oil and natural gas shipments and has remained effectively closed for weeks due to the threat of Iranian naval attacks. Israeli officials reported that a senior Iranian naval commander was killed in overnight strikes, further complicating the situation.
The ongoing energy price shock is stoking inflation fears worldwide. Analysts now widely expect central banks, including the U.S. Federal Reserve, to respond with interest rate hikes in the coming months. Europe is already grappling with surging gas prices, while Asian economies are feeling acute pressure from supply disruptions tied to the strait closure.
Currency strategists at ING noted that markets would need clearer signs of de-escalation before the dollar sees any meaningful decline. Meanwhile, the euro, British pound, and Japanese yen all saw limited movement against the dollar.
