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26 May 2026

Middle East uncertainties keep markets guessing

Good morning. Oil prices are climbing and the dollar is trimming its losses against major peers as hopes for a near-term diplomatic resolution to reopen the Strait of Hormuz fade amid a fresh round of military escalation in the region. The US military struck targets in southern Iran and sank two Islamic Revolutionary Guard Corps vessels last night in what American officials described as defensive operations, while Israel simultaneously launched air strikes against Hezbollah in southern Lebanon. The reversal follows a long weekend that had brought a string of optimistic headlines, easing pressure across asset classes. President Trump announced on...

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