<p><strong>GLOBAL: </strong>US-Iran tensions escalated over the weekend after attacks in the Middle East killed three US military personnel. Washington is vowing to respond decisively and hold Iran accountable for attacks on its personnel and allies.</p>

<p><strong>Market impact: </strong>Global oil prices surged, with Brent crude briefly trading above USD 90 per barrel in early Monday trading.</p>

<p><strong>The US is expected to retaliate,</strong> heightening the risk of escalating tensions and increasing risks for global oil markets.</p>

<p><strong>LOCAL: </strong>The peso strengthened on Friday, closing at its lowest level of the week despite broad US dollar strength, amid improving sentiment and the local macroeconomic outlook.</p>

<p><strong>Market impact: </strong>The PSEi climbed past the 6,400 level, with a relatively stronger peso, supported by rotation away from tech-heavy investments.</p>

<p><strong>Markets are likely to remain volatile this week, </strong>potentially reversing last Friday’s gains as US-Iran tensions are expected to escalate further.</p>