<p><strong>GLOBAL:</strong> A proposed agreement concerning the Strait of Hormuz suggests that the deal would grant Iran control of inbound maritime traffic.</p>

<p><strong>Market impact:</strong> The US dollar softened after President Donald Trump signaled the potential reopening of the Strait of Hormuz, while the S&amp;P 500 settled flat, ending its four-day rally.</p>

<p>While the reopening of the strait could provide economic relief, <strong>Iran would have primary control over the logistical supply chains</strong> of every nation bordering the Persian Gulf.</p>

<p><strong>LOCAL:</strong> PH inflation eased to 6.2% year-on-year in July, a four-month low, as lower transport costs and improved supply conditions eased price pressures.&nbsp;</p>

<p><strong>Market impact:</strong> The PSEi declined amid risk aversion ahead of the GDP release, while the peso strengthened as optimism about a US-Iran agreement weighed on the US dollar.&nbsp;</p>

<p><strong>Metrobank forecasts near-term inflation to ease amid easing geopolitical tensions,</strong> before rising late in the third quarter due to the Super El Niño's impact on agriculture.&nbsp;</p>