<p><strong>GLOBAL:</strong> The US and Iran have agreed to temporarily halt military strikes against each other and will hold talks this week in Qatar.&nbsp;</p>

<p><strong>Market impact:</strong> Oil prices and US stock index futures advanced amid reports of peace negotiations following recent hostilities.&nbsp;</p>

<p><strong>Markets are treating recent escalations as high-stakes negotiating tactics rather than the start of a broader conflict. </strong>The immediate priority in peace talks is enforcing freedom of navigation in the Strait of Hormuz.&nbsp;</p>

<p><strong>LOCAL: </strong>The Bangko Sentral ng Pilipinas expects the balance of payments (BOP) deficit to hit USD 10.7 billion in 2026 (2.1% of GDP), a sharp increase from the initial USD 7.8 billion forecast.&nbsp;</p>

<p><strong>Market impact:</strong> The peso held steady, closing unchanged at 61.29 to the US dollar. The PSEi also finished the trading session virtually flat.&nbsp;</p>

<p>Looking ahead, <strong>both the peso and the PSEi are expected to trade within a narrow range this week as investors continue to assess the economic implications of the Middle East conflict.&nbsp;</strong></p>