A series of retaliatory strikes between the U.S. and Iran in the vital Strait of Hormuz has caused significant volatility in oil prices, complicating the global inflation outlook for investors and central banks.
Beijing has reportedly instructed major oil refiners to sustain high production levels to safeguard domestic fuel supplies against potential disruptions from renewed conflict in the Persian Gulf.
The U.S. military has conducted retaliatory strikes against Iran after its Islamic Revolutionary Guard Corps attacked a Cyprus-flagged container ship, significantly escalating tensions in a critical global shipping lane.
Claudio Descalzi, CEO of Italian energy major Eni, predicts crude prices could break above $100 per barrel by early 2027 if regional conflicts continue, citing dwindling strategic reserves and the market's growing exposure to supply shocks.
Yields on benchmark U.S. government debt fell after a surprisingly weak June jobs report fueled speculation of a cooling economy. Investors are now turning their attention to the upcoming release of the Federal Reserve's policy meeting minutes.
Italy's Treasury has mandated BofA, Citigroup, Goldman Sachs, and Morgan Stanley to manage a new three-tranche, U.S. dollar-denominated bond sale with maturities in 2031, 2036, and 2056.
The Bank of Israel delivered its second consecutive interest rate cut, lowering the benchmark rate by 25 basis points to 3.50% in a widely expected move aimed at easing pressure on exporters from a strong shekel.
The U.S. dollar was little changed after a sharp fall late last week, as investors await the Federal Reserve's June meeting minutes for signals on interest rate policy. The Japanese yen remains weak, hovering near levels that have previously triggered government intervention.
UBS maintains a bearish outlook on the EUR/NOK pair, forecasting the Norwegian krone will appreciate through mid-2027, citing a supportive external environment and attractive carry despite recent krone weakness.
