IMF cuts growth forecast
The International Monetary Fund projected global economic growth would slow to just 3 percent this year, driven by soaring commodity prices linked to the Iran conflict and stubborn inflation. The revised forecast marks a sharp downgrade from earlier projections and signals the broadest economic impact yet from the ongoing war in the Middle East.
US trade deficit widens
The US trade deficit hit its highest level in over a year in May, driven by record goods imports including pharmaceuticals and data center equipment. The widening deficit comes as Trump administration trade policies create uncertainty, with the US declining to renew the USMCA and threatening 100 percent tariffs on European countries over digital services taxes.
Oil markets in turmoil
Oil prices surged after the latest exchange of strikes between the US and Iran. The Strait of Hormuz remains a critical vulnerability for global energy markets. While consumer sentiment has shown tentative improvement after plummeting earlier this year, gasoline demand may not fully recover as drivers adopt more fuel-efficient habits in response to sustained high prices at the pump.