A burgeoning stock rally has ground to a halt as Iran continued its attacks on oil facilities in the Gulf, prompting crude prices to resume their upward climb. Brent crude surged 4% to $104 per barrel, reflecting renewed market anxiety over supply disruptions in the vital region.
The escalating conflict has also impacted U.S. diplomatic efforts. President Donald Trump has requested a delay in his planned visit to China, openly expressing frustration with NATO allies and Beijing for their perceived inaction in reopening the Strait of Hormuz. The pressure underscores the widening geopolitical chasm over the Mideast crisis.
In a move signaling a push for new trade alliances, the European Union and Australia are reportedly close to finalizing a free trade agreement. This development comes as Malaysia became the first nation to declare its trade deal with the U.S. null and void, following the recent U.S. Supreme Court ruling on tariffs.
Meanwhile, technology giant Alibaba Group Holding Ltd. officially launched its Wukong AI platform. The new initiative is specifically designed to target enterprise automation through “agentic AI,” marking a significant step in the company’s artificial intelligence strategy.
On the financial front, Morgan Stanley anticipates a challenging period for private credit, with Bloomberg reporting the firm’s expectation for default rates to reach 8%.
Global equity markets reflected the cautious sentiment. European and Asian stocks traded mostly flat or with modest gains, while U.S. equity futures were down by an average of 0.5% ahead of the open. The U.S. dollar remained stable against its peers, and gold edged up 0.4%, trading just above $5,000 an ounce.
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