TL;DR

US pulls staff as Israel readies Iran strike; Brent crude >$70; Boeing drops after 787 crash.

Highlights

• US pulls non-essential diplomatic and military staff from Middle East; Israel signals readiness for imminent Iran strike; Brent crude tops $7012.
• Iran to open a third uranium enrichment site and upgrade Fordow facility after IAEA censure5.
• Boeing shares drop up to 8% pre-market after Air India 787 Dreamliner crash6.
• US and China agree to ease export curbs, maintain rare earth and student visa truce; Trump administration likely to extend July 8 tariff deadline for nations in “good-faith” trade talks87.
• US Dollar Index falls below 98, lowest close in three years; EUR/USD nears 1.16 amid tariff concerns9.
• UK GDP falls 0.3% in April, worst monthly decline since Oct 2023; Japanese corporate sentiment turns negative10.
• ECB signals pause after latest rate cut; French officials warn on budget deficit and possible fiscal tightening11.
• BioNTech to acquire CureVac for $1.25B in all-stock deal, expanding mRNA oncology pipeline12.
• BlackRock targets $50B crypto AUM by 2030; Ethereum futures open interest hits record $41.66B1516.
• Tether takes 32% stake in Elemental Altus, launches self-custodial wallet kit, signaling push into asset-backed finance18.
• Binance reopens to Syrian users after US sanctions suspension; Ant International to seek stablecoin licenses in Hong Kong and Singapore1713.

Commentary

Geopolitical risk is back in focus as the US withdraws personnel from the Middle East and Israel signals it is prepared to strike Iran, pushing Brent crude above $70 and raising the risk of energy market volatility12. Iran’s announcement of expanded uranium enrichment in response to IAEA censure adds a further layer of uncertainty, with potential implications for defense and energy stocks5. Traders should watch for further developments in the region, as any escalation could impact oil supply and risk sentiment across global markets.

On the trade front, the US and China’s agreement to ease export curbs and maintain a truce on rare earths and student visas offers some relief to supply chains, while the likely extension of the July 8 tariff deadline reduces near-term trade risk for US partners87. However, the US Dollar Index’s drop to a three-year low and a stronger euro reflect ongoing market concerns about tariff policy and a potential shift in global currency flows9. This dollar weakness could support risk assets and commodities in the short term.

Boeing faces renewed pressure after the Air India 787 crash, with shares down sharply pre-market and potential spillover to aerospace peers6. In Europe, weak UK GDP and negative Japanese business sentiment highlight persistent global growth headwinds10, while the ECB’s signal of a pause after its latest rate cut and French deficit warnings point to tighter fiscal and monetary conditions ahead11.

In digital assets, institutional adoption continues to build: BlackRock’s $50B crypto AUM target, record Ethereum futures open interest, and Tether’s investment in gold-backed finance all underscore the sector’s growing relevance151618. Binance reopening in Syria and Ant International’s stablecoin plans further illustrate the global expansion of crypto infrastructure1713.