UK Summer Bank Holiday (25-26 August 2025)

Markets remain volatile as Trump orders a prolonged naval blockade of the Strait of Hormuz to pressure Iran, further restricting global oil shipments. 

The Bank of Japan held its policy rate at 0.75% in April, keeping borrowing costs at their highest level since 1995.

Global markets moved into a risk-sensitive phase this week as stalled US–Iran negotiations and renewed tensions in the Strait of Hormuz reshaped sentiment. Safe-haven demand returned as reports of naval activity and continued blockades signaled that a quick resolution remains unlikely. With the key shipping route still largely restricted, energy prices surged, feeding directly into inflation concerns and shifting expectations across currencies, commodities, and bond markets.