Dollar Struggles to Rally Despite Strong US Data as Fed Hike Expectations Remain Limited 
Asian Currencies Slide as Iran Tensions Boost Dollar and Oil Prices 
Malaysia Unveils Energy Security Plan Amid Iran Conflict and Rising Oil Costs 
Dollar Rises as Strait of Hormuz Crisis Pushes Oil Prices Higher 
ECB Signals Possible Interest Rate Move if Inflation Outlook Fails to Improve 
Trump-Iran Tensions Keep Oil Prices Elevated Amid Hormuz Supply Fears 
China Car Sales Drop Again as EV Export Growth Surges in April 
Dollar Slips as Strong U.S. Jobs Data Reduces Fed Rate Cut Expectations 
Australia Budget 2026: Smaller Deficit Expected Amid Tax Reform Push 
US Stock Futures Hold Steady Ahead of CPI Data and Iran Conflict Concerns 
Saudi Aramco Q1 Profit Jumps 25% as Strait of Hormuz Crisis Reshapes Oil Exports 
Goldman Sachs Delays Fed Rate Cut Forecast to 2026 Amid Rising Inflation Concerns 
China Inflation Jumps as Iran Conflict Drives Energy Costs Higher 
Trump Rejects Iran Proposal as Strait of Hormuz Crisis Pushes Oil Prices Higher 
US Auto Industry Urges Trump to Block Chinese EV Market Access 
Oil prices edged higher on Tuesday while the U.S. dollar strengthened as hopes for a breakthrough in reopening the Strait of Hormuz faded, increasing concerns over global energy supply disruptions. Investors also turned cautious ahead of crucial U.S. inflation data that could influence the Federal Reserve’s next interest rate decision.
Brent crude futures climbed 0.7% to $105 per barrel after U.S. President Donald Trump stated that the ceasefire with Iran was “on life support.” Tehran’s response to a U.S. proposal aimed at ending the conflict reportedly showed both sides remain far apart, keeping geopolitical tensions elevated in the Middle East.
Global stock markets weakened as rising oil prices and uncertainty over trade and inflation pressured investor sentiment. S&P 500 futures slipped 0.2%, while South Korea’s KOSPI index dropped 3%, dragging down broader Asian markets. MSCI’s Asia-Pacific index excluding Japan fell 1%, while European futures declined 1%.
Markets are closely monitoring Trump’s scheduled visit to China on Wednesday. Analysts expect limited progress on both Iran-related negotiations and U.S.-China trade discussions. Investors are mainly hoping for stability, with no additional tariffs or export restrictions.
Despite higher energy prices, Wall Street remained relatively resilient overnight, with both the S&P 500 and Nasdaq reaching fresh record closing highs. However, traders are now focused on upcoming U.S. consumer price index data, which is expected to show annual inflation accelerating to 3.7%.
A stronger-than-expected inflation reading could force the Federal Reserve to consider another interest rate hike instead of anticipated rate cuts, potentially increasing volatility across financial markets.
Meanwhile, bond yields continued to rise globally. Japan’s 10-year government bond yield surged to a 29-year high of 2.54%, fueled by expectations of further policy tightening from the Bank of Japan. The U.S. dollar also gained strength, rising to 157.53 yen against the Japanese currency.
