A ceasefire agreement between Israel and Lebanon eases supply concerns, while geopolitical tensions support the USD and pressure oil prices lower.
Israel and Lebanon agreed to a ceasefire framework, reducing immediate geopolitical risks in the Middle East. The deal, contingent on Hezbollah’s compliance, follows heightened tensions that had stoked oil supply fears and market volatility.
Oil prices edged lower on the news, though the IEA’s warning of deeper crude stockpile draws and tight supply kept sentiment supported. The PBOC set the USD/CNY reference rate at 6.8203, weaker than the 6.7770 estimate, while the RBA’s rate outlook remained under scrutiny after three consecutive hikes.
The USD firmed as war-related angst persisted, while the NZD faced pressure from rising export costs. Bitcoin hovered near $62K amid broader risk sentiment shifts.