Financial Market Newsletter

Oil prices rose sharply after reports that Houthi forces attacked two Saudi oil tankers in the Red Sea, escalating the conflict in the Middle East and threatening to cause more severe supply disruptions.

According to Bloomberg, U.S President D. Trump is expected to impose new tariffs on goods from 60 trading partners on Friday, a move aimed at ensuring that his tariff program remains in place even after the temporary global tariff rate of 10% expires.

The Korean won has repeatedly hit new lows and is now trading near its weakest level since the 2008 - 2009 global financial crisis, having depreciated by more than 10% against the USD since the beginning of the year, even as the country’s stock market has risen to record highs thanks to the AI chip production wave.

The European Central Bank is likely to postpone its second rate hike of the year this Thursday, while keeping the door open for a rate increase in September.

Forecasting models show that USD/JPY could rise to 170 by the end of this year after breaking above the 160 threshold at the end of April. According to Bloomberg,

China’s economic growth slowed in Q2/2026 to its weakest pace in more than three years, as strong exports driven by the AI boom were unable to offset domestic economic difficulties and weaker consumer spending.

U.S inflation (CPI) fell to +3,5% in June as pressure from gasoline prices eased.

Tensions in the Middle East continued to escalate for a third consecutive day, with U.S attacks on Iran’s military infrastructure and a new blockade on Iran’s trade activity through the Strait of Hormuz.

Economists forecast that the war in the Middle East will leave the U.S economy facing more persistent inflation.