Tensions in the Middle East escalated as U.S. forces conducted significant strikes against Iran in response to missile attacks on American personnel. This military action, coupled with President Trump's aggressive rhetoric, has caused oil prices to rise, with Brent crude increasing by 2.09% to $92.64 per barrel and West Texas Intermediate up 1.46% to $85.66.
Meanwhile, the Federal Reserve opted to keep interest rates steady at 3.5%-3.75% in a split decision, which has led to a notable increase in the likelihood of unchanged rates at the next meeting. Fed Chairman Kevin Warsh's comments on the decision have drawn scrutiny, as analysts question the lack of justification for maintaining rates amid rising inflation.
In Asia, Samsung Electronics reported record operating profits driven by strong demand for AI-related memory chips, while the market debut of Chinese AI supplier Zhongji Innolight was met with a tepid response, with shares falling 2.3% after pricing below expectations.
Additionally, Europe is grappling with economic challenges posed by increasingly severe summer heatwaves, which are disrupting businesses and driving up costs