<p><strong>GLOBAL: The Middle East conflict has cost the US Department of Defense roughly USD 38 billion so far, </strong>according to the Congressional Budget Office (CBO). &nbsp;</p>

<p><strong>Market impact: Oil prices settled higher following Saudi cargo cancellations, while US equities declined and Treasury yields advanced</strong> ahead of the upcoming Federal Reserve rate decision.</p>

<p><strong>The CBO anticipates that the conflict will keep inflation elevated until the first quarter of 2027,</strong> estimating that it will add roughly 0.5 percentage points to baseline inflation projections.</p>

<p><strong>LOCAL: Cash remittances grew by 1.9% year-on-year to USD 3.24 billion in July, </strong>the highest since December. Overseas Filipino Workers remit funds during this season to cover school expenses.</p>

<p><strong>Market impact: Market volatility drove the PSEi lower and bond yields higher, </strong>while the peso rebounded amid Bangko Sentral ng Pilipinas (BSP) intervention.&nbsp;</p>

<p><strong>The BSP currently projects cash remittances to grow by 2.7% annually to USD 36.6 billion this year, </strong>supporting household consumption.</p>