WS #8890
The US-Iran conflict continues to escalate (ESCALATING), with fresh military strikes and retaliations. Iran hit Kuwait International Airport with drones and missiles, causing damage and flight diversions, while the US struck Iran's Qeshm Island. Oil prices remain elevated on supply disruption fears, with the Strait of Hormuz effectively blocked for over three months. BOJ Governor Ueda reiterated hawkish guidance, stating the bank will debate rate hikes if inflationary risks outweigh downside risks, keeping USD/JPY under pressure. The SNB increased readiness to intervene in forex markets. Norwegian offshore workers threaten a strike from June 5, potentially cutting 45,500 boe/day. Ukraine struck the St. Petersburg oil terminal, adding to energy supply concerns. On the macro front, euro area economic activity declined at a quicker pace, and French services PMI contracted sharply. India remains in talks with the US over proposed tariffs. Mastercard expanded stablecoin settlement options to include USDC, PYUSD, and RLUSD. Zhihu reported Q1 earnings with a 200% EPS increase but a 6% sales decline. The Crypto Market Structure Bill was added to the Senate legislative calendar, a step toward becoming law.
Key developments
- Iranian drone/missile attack hits Kuwait International Airport; US strikes Qeshm Island
- BOJ Governor Ueda signals readiness to raise rates in June if inflation risks materialize
- Ukraine strikes St. Petersburg oil terminal, adding to energy supply risks
- Norwegian offshore workers threaten strike from June 5, potential 45,500 boe/day cut
- SNB Chairman signals increased readiness to intervene in forex markets
- Euro area economic activity declines at quicker pace; French services PMI contracts sharply
- Mastercard expands stablecoin settlement to USDC, PYUSD, RLUSD
- Crypto Market Structure Bill added to Senate legislative calendar