<p><strong>GLOBAL: </strong>Tensions in the Strait of Hormuz escalated after Iran struck a commercial cargo vessel, prompting supertankers to reverse course.&nbsp;</p>

<p><strong>Market impact:</strong> Oil prices continued to remain high as traders assessed the ship attack, while US equities traded largely unchanged.&nbsp;</p>

<p><strong>To mitigate threat, </strong>a large number of vessels transiting the strait will likely disable their automatic identification systems to avoid detection.&nbsp;</p>

<p><strong>LOCAL: </strong>The national government's budget deficit widened by 36.73% year-on-year to PHP 198.5 billion. A drop in non-tax collections overshadowed gains in tax revenues.&nbsp;</p>

<p><strong>Market impact:</strong> The PSEi rebounded on bargain hunting following a sell-off, while the peso strengthened amid an initial decline in oil prices.&nbsp;</p>

<p><strong>The fiscal outlook will likely remain under pressure amid slowing economic momentum and rising debt servicing.&nbsp;</strong></p>