BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Oil prices rose 1.5% in Asian trading on Wednesday, driven by escalating geopolitical tensions and surprising U.S. inventory data. Brent crude futures for July climbed to $66.42 per barrel, while West Texas Intermediate (WTI) rose to $62.92.
The spike followed a CNN report citing U.S. intelligence that Israel is preparing for a potential military strike on Iranian nuclear facilities. Although Israeli leadership has not finalized a decision, officials say the probability of such action has “significantly increased” in recent months. The potential conflict, unfolding as the U.S. continues nuclear negotiations with Tehran, raises fears of major supply disruptions across the Middle East.
According to ING analysts, “The report signals heightened geopolitical risk, with potential threats not only to Iranian supply but broader regional output.”
The report also highlighted Iran’s refusal to negotiate on its uranium enrichment program, a key sticking point in U.S.-Iran talks. This intransigence, combined with legacy tensions from the Trump-era nuclear deal, has added fuel to concerns that diplomacy may fail.
Adding further pressure to oil prices, the American Petroleum Institute (API) reported an unexpected 2.5 million-barrel increase in U.S. crude inventories for the week ending May 16, compared to expectations of a 1.9 million-barrel draw. Gasoline inventories fell by 3.2 million barrels, while distillates, including diesel and heating oil, declined by 1.4 million barrels.
ING noted that inventory data suggests a tightening market for middle distillates. Traders now await official data from the U.S. Energy Information Administration (EIA) for confirmation.
With heightened geopolitical tensions and surprising inventory trends, energy markets remain on edge, pricing in a growing risk premium.
