📈 Global Markets Near Highs; Middle East Tensions Surge Energy Costs

• Market Sentiment & Equities: Global stocks (MSCI All-World) hovered near record highs, on track for a 3rd weekly gain. Market volatility declined, with the fear index (VIX) set for a 4th consecutive weekly drop—its longest streak since May 2025. • Energy & Commodity Pressures: Impasse in Middle East peace talks and U.S. blockade threats on Iran pushed energy prices up. Brent crude rose +1.7% to US$ 88.5/bbl (+6% WoW), European natural gas spiked +10% WoW, and U.S. gas gained +3.5%. Gold edged down -0.1% to US$ 4,346/oz, but remains near 2-month highs, benefiting from faded U.S. rate hike expectations. • Currency Movements: Japanese Yen strengthened to 159.18 per US$ (+0.2% for USD) following reports of a potential Bank of Japan interest rate hike as early as September to counter persistent currency weakness. • Sri Lanka Relevance: Elevated global petroleum & energy prices pose direct risks to Sri Lanka's import bill and foreign exchange reserves, offsetting broader global equity stability.