The geopolitical flare-up, triggered by projectile attacks on oil tankers and subsequent U.S. strikes on Iranian targets, forced a 3% surge in oil prices. While traders remain skeptical that this represents a sustained conflict, the decision by Washington to revoke a sanctions waiver on Iranian oil starting July 17 adds significant pressure to supply chains already strained by regional uncertainty.

Simultaneously, equity markets are grappling with a persistent selloff in the technology sector. The SOX chip index fell nearly 5% stateside, while SpaceX shares shed 7% during their debut as a Nasdaq 100 constituent. In Asia, South Korea’s KOSPI index has officially entered bear market territory, dropping 20% from its late June record close. This volatility is compounded by New Zealand’s central bank, which hiked interest rates to 2.5% to combat inflation, signaling that global price pressures remain a primary concern for policymakers ahead of the Federal Reserve’s upcoming meeting minutes.