.jpg)
Overseas news
The US and Iran have signed a memorandum of understanding (MoU) to end their conflict. The parties still need to work out critical details, such as Iran's nuclear program and potential sanctions relief.
The sustainability of the agreement depends on a 60-day window for negotiating key issues. The interim peace deal also includes a ceasefire extension and the reopening of the Strait of Hormuz.
Following news of the preliminary US-Iran agreement, US and European stocks surged to record highs while oil prices fell to a 3-month low.
A firmer agreement may help bring down energy prices and the cost of goods worldwide after months of Middle East conflict led to steep price increases.
Local developments
The US-Iran deal also lifted investor sentiment locally, with the Philippine Stock Exchange index (PSEi) rising by more than 6% and the peso strengthening to P60.48 against the dollar.
Meanwhile, cash remittances from Overseas Filipino Workers (OFWs) grew by just 2% year-on-year to reach $2.718 billion in April. This marks the slowest annual growth in nearly 4 years amid global economic uncertainty.
Despite this, the Bangko Sentral ng Pilipinas (BSP) expects remittances to grow by 3% in 2026 due to strong global labor demand.
Such remittances provide a crucial cash flow to the Philippines by helping increase the amount of money that is spent and saved locally.
Market sentiment is up thanks to the developments in US-Iran relations, but it might be too early to tell how negotiations will unfold. For now, it can be wise to stay cautiously optimistic with your investing decisions.
