<p><strong>GLOBAL: </strong>US President Donald Trump issued a warning to Iran, threatening renewed military strikes if Iran does not rein in Hezbollah and reopen the Strait of Hormuz.&nbsp;</p>

<p><strong>Market impact: </strong>US equity futures edged lower while oil prices advanced, driven by renewed warnings from the US toward Iran.&nbsp;</p>

<p><strong>The risk of a military escalation is elevated. </strong>If Iran maintains the blockade it reinstated, oil prices will likely reverse their recent slide rather than drop further.&nbsp;</p>

<p><strong>LOCAL: </strong>Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the country posted a USD 131-million balance of payments surplus in May 2026, driven by lower global oil prices and steady inflows of foreign exchange.&nbsp;</p>

<p><strong>Market impact: </strong>Local equities retreated on further rate hike expectations by the BSP. The peso weakened to PHP 60.775 against the US dollar, pressured by a hawkish US Federal Reserve.&nbsp;</p>

<p>The external position will likely remain supportive in June amid the continued <strong>moderation in global crude prices</strong>.&nbsp;</p>