U.S.-Iran Tensions Escalate as Strait of Hormuz Shipping Nears Standstill; U.S. CPI and Fed Testimony Watched

U.S.-Iran tensions escalated this week, with mutual attacks breaking a fragile ceasefire that had held for about three weeks and pushing shipping in the Strait of Hormuz back into a near-standstill. According to PANews, overseas media reports said mediators have not abandoned efforts to broker talks. The report said markets will focus over the coming week on developments in the U.S.-Iran situation, U.S. CPI and other economic data, and speeches by Federal Reserve officials. It added that attention is particularly on whether Fed Chair Kevin Warsh, under questioning in Congress, will provide more clues on the interest-rate outlook, though the report noted limited expectations given his determination to cancel forward guidance. PANews also said next week will be a key period for U.S. bank earnings reports.