<p><strong>GLOBAL:</strong> The US launched more airstrikes against Iran following direct threats from President Donald Trump. Iran retaliated by launching missiles at US-allied nations and military bases in the Middle East.&nbsp;</p>

<p><strong>Market impact:</strong> Oil, Treasury yields, and the dollar fell as diplomatic efforts sought to avert a renewed conflict between the US and Iran, while US stocks rose as chip gains offset geopolitical concerns.&nbsp;</p>

<p><strong>Diplomacy is unlikely to resume soon, </strong>and disruptions in the Strait of Hormuz are becoming more likely, leading to a further decline in ship traffic.&nbsp;</p>

<p><strong>LOCAL: </strong>The Bangko Sentral ng Pilipinas (BSP) said that inflation expectations for the next 12-24 months remain above 4% as high global oil prices and weather-related disturbances keep inflation elevated.&nbsp;</p>

<p><strong>Market impact: </strong>The peso and the PSEi dropped amid heightened market uncertainty stemming from escalating US-Iran conflict.&nbsp;</p>

<p><strong>Metrobank projects inflation to average 5.5% in 2026,</strong> staying above the BSP's target range due to the second-round effects of oil price spikes, El Niño, and the impact of the minimum wage hike.&nbsp;</p>