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Overseas news
An Iranian official has reiterated that the country seeks to maintain strict control over maritime traffic through the Strait of Hormuz.
This comes ahead of talks in Qatar that present the best chance to de-escalate the US-Iran conflict. The immediate priority is the coordination of maritime traffic to prevent incidents.
Relatedly, US stocks closed higher after both countries agreed to halt direct military exchanges. Meanwhile, oil prices continued rising as Iran asserted its regulatory aims over the strait, which is a critical oil transit point.
The months-long Middle East conflict has led to steep increases in energy prices and the cost of goods worldwide. A firmer peace agreement may help ease costs and boost investor sentiment.
Local developments
Credit rating agency S&P Global Ratings expects that the Bangko Sentral ng Pilipinas (BSP) will deliver 1 more interest rate hike this year due to persistent inflation.
Raising key rates is a move that a central bank may employ to manage inflation, which has sped up mainly due to rising oil prices.
Meanwhile, the Philippine Stock Exchange index (PSEi) climbed and the peso strengthened, supported by the easing geopolitical tensions between the US and Iran.
The outcome of the upcoming US-Iran talks may have a sizeable impact, though there are no sure signs of big changes happening right away. You may want to remain cautious with your investing decisions for now.
