1. Conflict between the US and Iran escalated significantly, with reports of US rocket and drone strikes in Iran, and Iran's IRGC claiming to target Kuwait and Bahrain in response, fueling major geopolitical tensions.
2. Fed official Goolsbee described June CPI inflation data as "surprisingly benign" and expressed optimism regarding services inflation, while FedWatch data indicates an 83.4% probability of the Fed maintaining interest rates in July.
3. Brent and US crude oil prices settled higher, with US diesel futures surging 5% amid concerns over supply disruptions due to attacks on Russian energy infrastructure and Middle East tensions.
Geopolitical Tensions, Fed Outlook, & Oil Price Surge
