U.S.-Iran Military Conflict Escalates This Week as Trump Halts Ceasefire

According to Yonhap News, the U.S. and Iran escalated military conflict this week after President Donald Trump declared the ceasefire ended and U.S. forces conducted ongoing airstrikes. While both sides signaled continued hostility, Iran's Foreign Minister Abbas Araghchi stated that "adhering to the memorandum of understanding is the only solution," indicating willingness to resume talks. Despite Trump's announcement and ongoing bombardment, WTI crude oil for August delivery fell 0.93%, suggesting markets view the risk of full-scale escalation as limited.

This week, investors will focus on June's Consumer Price Index (CPI) and Producer Price Index (PPI) data, expected to show a monthly decline following elevated inflation readings in April and May. Major banks including Goldman Sachs, JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and Morgan Stanley will report second-quarter earnings. Federal Reserve Chair Kevin Warsh is scheduled to testify before both the House Financial Services Committee and Senate Banking Committee.