After weeks of shell and missile strikes on nuclear sites and scientists, Iran’s president has signed a law suspending cooperation with the nuclear watchdog, International Atomic Energy Agency (IAEA), according to state media. This move blocks international inspectors from monitoring Iran’s nuclear activities, making it harder to determine the country's nuclear development and intentions, further straining relations with the West and neighbouring countries. The decision comes after violent Israeli attacks on Iranian nuclear sites and growing geopolitical tensions. While some experts suggest Iran may be seeking leverage in future negotiations, others warn it could signal a step toward developing a nuclear weapon, which could push Gulf states to start smuggling weapons of their own to match the power balance. The U.S. called the suspension "unacceptable", urging Iran to return to compliance and diplomacy.

EQUITY

Stocks continue gaining ground with the S&P 500 and Nasdaq closing higher with a strong tech rally, while the Dow did not manage to gain as concerns over industrial earnings weighed on investor sentiment. Rising bond yields continued to pressure markets, with the 10-year Treasury yield climbing above 4.6%, and Morgan Stanley is looking at 7 rate cuts next year. Some analysts point toward resilient consumer spending and slowing inflation as potential catalysts for a year-end rally.

GOLD

Gold prices have gained on a weaker dollar but are starting to edge lower with optimism over a U.S.-Vietnam trade deal, reducing safe-haven demand. Technical indicators suggest potential for near-term gains if gold rises above its 20-day moving average. Analysts are projecting easing volatility after an extended rally, with supportive factors such as central bank buying, ETF inflows, and a dovish Fed driving prices toward $4,000/oz in a bullish scenario.

OIL

Benchmark crude oil prices had another rally due to heightened tension after Iran suspended nuclear oversight, while a weakening U.S. dollar failed to support the price. Price is somewhat recovering from severe losses following the Israel-Iran ceasefire, although the market remains cautious as U.S. crude inventories rose by 3.8 million barrels, countering typical summer demand-driven drawdowns, and OPEC+ plans another output increase of 411,000 barrels per day in August.

CURRENCY

The U.S. dollar held steady ahead of the key June nonfarm payrolls report, looking for any signs of labour market weakness. Sterling recovered after a sharp drop due to UK fiscal policy and a parliamentary appearance by Finance Minister Rachel Reeves. Investors also weighed the impact of a proposed $3.3 trillion U.S. tax-and-spending bill, which risks widening deficits and worsening global bond market dynamics with pushback from the richest man in the world.