<p><strong>GLOBAL:</strong> Iran attacked a Cyprus-flagged container ship transiting the Strait of Hormuz. In response, the US hit over 140 Iranian military targets while also rejecting Iran’s claim that the strait will be closed off.&nbsp;</p>

<p><strong>Market impact: </strong>Oil prices rose while US futures declined following renewed US-Iran strikes.&nbsp;</p>

<p><strong>With the Strait of Hormuz threat level elevated to “severe,”</strong> maritime traffic will remain suppressed. As of July 11, transit volume has plummeted to just 10 vessels, below the historical average of 138.&nbsp;</p>

<p><strong>LOCAL: </strong>Net foreign direct investment inflows plummeted by 58.8% year-on-year to USD 250 million, the lowest monthly level since June 2016. The plunge is largely due to a highly uncertain global environment.&nbsp;</p>

<p><strong>Market impact: </strong>The USD/PHP exchange rate declined, aligning with broader US dollar trends, while the PSEi rose to the 6,200 level, supported by easing inflation and bargain hunting.&nbsp;</p>

<p><strong>Near-term pauses in corporate expansion will continue to constrain gross capital formation, </strong>sustaining weakness in both durable goods imports and private construction.&nbsp;</p>