Breakfast Bites - Evacuation orders

Uncertainty increases; US Retail Sales in Focus; BoJ holds rates

Rise and shine everyone

Oil prices reversed earlier weakness to rise 1–2%, driven by escalating tensions in the Middle East. President Trump posted that “everyone should immediately evacuate Tehran,” following reports of explosions and heavy defense fire in the city.

The post coincided with his early return from the G7 Summit in Canada, citing urgent matters at the White House, including developments in the Middle East. Meanwhile, the Chinese Embassy in Israel urged its citizens to leave “as soon as possible,” fueling speculation about a broader regional escalation.

Media reports suggested the US could join strikes on Iran, particularly targeting underground nuclear facilities, as US carriers and refueling aircraft moved closer to the region. Gold ticked higher initially but settled flat. US Treasuries gave back some gains.