Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
The U.S. dollar remained under pressure on Tuesday as growing optimism over a possible agreement to reopen the Strait of Hormuz improved global market sentiment and boosted risk assets. Investors are closely watching developments in the ongoing Iran conflict, now entering its third month, as hopes for de-escalation continue to influence forex markets, oil prices, and investor confidence.
The euro held firm against the dollar, with EUR/USD trading near 1.1636, while the Japanese yen stood at 158.95 per dollar. The U.S. Dollar Index also slipped toward 99.03 as traders reacted to diplomatic signals from both Washington and Tehran.
Market sentiment improved after reports confirmed that Iran’s foreign minister and top negotiator were in Doha for talks with Qatar’s prime minister regarding a possible peace agreement. U.S. President Donald Trump stated that discussions with Iran were progressing “nicely,” although he warned that additional military action could follow if negotiations failed.
Despite the positive tone, tensions remain elevated after the U.S. Central Command confirmed fresh strikes targeting Iranian-linked threats. The renewed attacks briefly pushed oil prices higher after Brent crude dropped sharply on Monday. Brent futures later rebounded to around $97.76 per barrel, highlighting continued volatility in global energy markets.
Analysts believe the possibility of reopening the Strait of Hormuz has reduced fears surrounding oil supply disruptions, inflation, and global economic slowdown. However, experts caution that a full recovery in energy supply chains may take time, keeping inflation concerns and interest rate uncertainty alive.
The Australian dollar stayed near a one-week high, supported by improving risk appetite, while the New Zealand dollar weakened slightly ahead of the country’s upcoming central bank decision.
Currency strategists also noted that strong U.S. economic growth and persistent AI-driven inflation pressures could continue supporting the dollar in the medium term, even if oil prices gradually ease below $100 per barrel later in 2026.
