US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
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 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
European stock markets showed little movement on Tuesday following a long holiday weekend, as investors remained cautious amid escalating tensions in the Middle East. The pan-European Stoxx 600 edged up 0.1%, Germany's DAX was nearly flat, France's CAC 40 gained 0.5%, and the UK's FTSE 100 added 0.2%. Most major European exchanges had been closed Monday for a public holiday.
Market sentiment stayed guarded as U.S. President Donald Trump's deadline for Iran to agree to a ceasefire drew closer. At a news conference, Trump dismissed growing hopes of a diplomatic breakthrough, warning that the U.S. would destroy critical Iranian infrastructure — including bridges and power plants — if Tehran failed to meet his Tuesday night deadline. He added that such strikes would set Iran back by a century. Iran had already turned down a U.S. and regionally brokered proposal that would have halted fighting for 45 days and reopened the Strait of Hormuz to oil tanker traffic.
The conflict, which began with joint U.S. and Israeli airstrikes on Iran in late February, has since drawn in multiple countries across the Middle East. Israel has continued striking Hezbollah forces in Lebanon, while Iran has retaliated with attacks on Gulf energy infrastructure and effectively choked off shipping through the Strait of Hormuz — a critical waterway through which roughly one-fifth of the world's oil supply flows.
The ongoing disruption has pushed crude oil prices sharply higher. Brent crude climbed 1.4% to $111.28 per barrel, while U.S. West Texas Intermediate rose 2.1% to $114.74. Elevated energy prices are stoking inflation fears and raising concerns about slowing global economic growth, particularly for Asian nations reliant on Gulf energy imports and European countries dependent on Persian Gulf natural gas for heating and power.
Analysts at ING noted that investor attention remains fixed on whether a ceasefire deal can be reached before energy markets face another significant price surge.
