Overview
- The European Central Bank said the conflict in Iran and volatile U.S. trade policy are testing the financial system’s resilience and could produce wider instability, Luis de Guindos wrote in the bank’s Financial Stability Report.
- The U.S. military reported carrying out 'self‑defence' strikes in southern Iran on missile sites and boats placing mines while saying it is using restraint under the current ceasefire.
- President Trump posted that a deal to reopen the Strait of Hormuz is 'largely negotiated,' but press reports describe the agreement as an initial, unofficial framework and final details remain unverified.
- Tehran’s effective closure and restrictions of the Strait of Hormuz have removed significant oil volumes from global supply, pushed prices sharply higher and prompted strategic reserve releases and warnings about tight stocks.
- Central banks including Ireland’s have urged governments and firms to build buffers because prolonged disruptions could raise inflation, slow growth and drive investors into safer assets, increasing systemic risk.