- Asian tech stocks slide as AI rally unwinds, oil set for biggest weekly gain since April
- Oil steady despite fresh wave of strikes across Gulf, Iraq and Iran
- Rupee nears record low as RBI intervenes but oil, risk aversion weigh
- China’s SAFE says FX market stable, resilient amid complex global backdrop
- Asian and US equities slide as Nikkei drops 4.25%, Nasdaq futures down 1%
- Trump’s China election claims risk unsettling trade truce ahead of Xi meeting
- Oil edges higher as US-Iran attacks widen to Jordan, Bahrain and Kuwait
- Trump blaming China for election breach back in 2020
- PBOC sets USD/ CNY reference rate for today at 6.7934 (vs. estimate at 6.7734)
- (Unconfirmed) Reports that Iran has targeted King Fahd Causeway connecting Bahrain to Saudi Arabia
- Singapore June exports rise 20.7% but miss forecasts on non-electronics weakness
- Equities selling off, Nikkei down 3%. US equities lower also
- Bernstein lifts 2026 gold target to $4,533 on central bank buying, muted Fed hikes
- US bombs Iranian bridges to sixth day of strikes, choke off Bandar Abbas supply
- Vice Chair Jefferson says Fed policy well positioned, but hike possible if inflation stays sticky
- New Zealand data – June 2026 Food Price Index +0.6% m/m (prior +1.0%)
- Decades long bull turns bearish. Cites structural deficits, inflation, and AI-driven borrowing in historic bearish pivot.
- Iran war escalates as US strikes bridges, rail hub; oil edges lower on Globex reopen
- ICYMI – Fed’s Logan flags AI-driven inflation risk, sees no wage pressure for now
- US military confirms actions to enforce naval blockade of Iran, ships boarded, ships ‘disabled’
- US attacks on Iran toll on – bridges, railway stations hit
- Gold slides circa 2% as Middle East tensions boost dollar, rate hike bets, Where now for gold?
- AI and chip stocks continue to slide sending the Nasdaq down near -1.5%
- Oil dips near one-month high as Iran war escalation threatens both key export routes – the range to watch
In brief:
- US struck three bridges in Iran’s Hormozgan province (Bandar Khamir overpass, Gariveh Bridge, a third structure), a railway station west of Bandar Abbas linking to Shahid Rajaei port, a telecoms tower in Bandar Abbas, and a civilian airport in Iranshahr; WSJ confirmed the campaign is aimed at severing supply routes into the Bandar Abbas naval base.
- Iran’s army said it struck US facilities at Bahrain’s Sheikh Isa Air Base with drones, targeting helicopters and P-8 reconnaissance aircraft, describing it as retaliation for US strikes on Iranian urban infrastructure.
- Bahrain and Kuwait came under attack with sirens activated; explosions reported at the US Navy’s Fifth Fleet base in Bahrain; unconfirmed reports of a strike on the King Fahd Causeway; attacks also reported in Doha.
- A later, separate wave saw Iranian state media report five more bridges struck in southern Iran, followed by a second Bahrain siren alert and fresh attacks into Kuwait and Qatar.
- Japan’s Nikkei sank close to 4.5% on a weak Wall Street lead and broader risk-off tone, extending a tech-led Asian selloff.
- Fed Vice Chair Jefferson opened the door to a later-year rate hike without endorsing a move this month, saying current policy leaves the Fed “well positioned” while inflation resumes its decline.
- Trump accused China of illicitly acquiring 220 million US voter files, calling it the largest election-data breach in history, though he stopped short of alleging China meddled in the 2020 vote; AUD/USD and NZD softened on the headlines.
- The dollar held steady and was set to end the week little changed, with receding Fed hike bets offset by safe-haven demand; the yen languished near a 40-year low around 162.40, prompting fresh jawboning from Japan’s Finance Minister Katayama.
- Markets are watching a potential GPIF-led allocation shift toward domestic Japanese assets, which analysts say could support Japanese equities and pressure JGB yields via investor repatriation.
- South Korean markets were closed for Constitution Day.
The Middle East conflict dominated Friday’s session, unfolding in a rapid, multi-stage sequence that kept oil and risk sentiment on edge throughout the day. The first wave saw the US strike three bridges in Iran’s Hormozgan province, the Bandar Khamir overpass connecting Bandar Abbas to Lar, the Gariveh Bridge, and a third structure, alongside a railway station west of Bandar Abbas linking to the freight network serving Shahid Rajaei port, a telecommunications tower in Bandar Abbas, and a civilian airport in Iranshahr in the country’s southeast. The Wall Street Journal, citing a senior US official, confirmed the campaign was aimed squarely at severing supply routes into Bandar Abbas, the naval base Iran uses to threaten shipping and project power into the Strait of Hormuz.
Iran’s response came in stages. Its army said it carried out the eleventh phase of what it termed Operation Lightning, striking US facilities at Bahrain’s Sheikh Isa Air Base with Arash suicide drones, targeting areas hosting US helicopters and P-8 reconnaissance aircraft, and describing the action as retaliation for US strikes on Iranian urban infrastructure that caused civilian casualties. Bahrain and Kuwait then came under direct attack, with sirens activated and explosions reported at the US Navy’s Fifth Fleet base in Bahrain. Unconfirmed reports suggested Iran had also targeted the King Fahd Causeway linking Bahrain to Saudi Arabia, while further attacks were reported in Doha.
A later, distinct wave saw Iranian state media report five additional bridges struck in southern Iran in a fresh round of US strikes, before Bahrain’s Interior Ministry sounded sirens for a second time on Friday, with that second wave extending into Kuwait and Qatar as well. The rapid succession of strikes and counter-strikes across five countries in a single session underscored how quickly the conflict’s geographic footprint has expanded beyond its original Iran-Gulf axis.
Away from the Gulf, equity markets extended their tech-led slide. Japan’s Nikkei sank close to 4.5% on a weak lead from Wall Street and a broader risk-off tone, part of a wider unwind in AI-linked valuations that has hit chipmakers particularly hard this week. South Korean markets were shut for Constitution Day, leaving Tokyo to absorb much of the regional selling pressure. Taiwan slumped too, though.
On monetary policy, Fed Vice Chair Philip Jefferson struck a measured but inflation-focused tone, saying he would be open to a rate hike later this year if inflation fails to cool, while stopping short of endorsing a move at this month’s meeting. He said current policy leaves the Fed “well positioned” to respond to incoming data, even as he flagged the risk that a rapid succession of shocks, from tariffs to energy prices to AI-driven demand, could leave inflation expectations unanchored.
Politics added another cross-current for markets. President Trump accused China of illicitly acquiring 220 million US voter files, calling it the largest election-data breach in history, though he stopped short of alleging Beijing meddled in the 2020 election outcome itself. The accusations weighed on currencies with high sensitivity to US-China relations, with both the Australian and New Zealand dollars softening on the headlines, even as the broader relationship remains delicately poised ahead of a planned Trump-Xi meeting in September.
In currencies more broadly, the dollar held steady and was on track to end the week little changed, as receding expectations for further Fed rate increases this year were offset by renewed safe-haven demand tied to the Middle East escalation. The euro was little changed near 1.1440. The yen remained languishing near a 40-year low around 162.40 per dollar, prompting renewed verbal intervention from Japanese Finance Minister Satsuki Katayama, that nhad little impact. Market attention has also turned to a potential allocation shift by Japan’s Government Pension Investment Fund and other pension funds, following Katayama’s comments last week that Tokyo aims to steer state pension assets toward a substantially larger domestic allocation. Analysts said expectations of repatriation flows from Japanese investors could provide periodic support for equities and pressure Japanese government bond yields lower in the period ahead.
This article was written by Eamonn Sheridan at investinglive.com.