Morning Juice – Europe Session Prep

Good Morning Traders.
It is Tuesday the 26th of May. Here is what to look out for today.

Sentiment
US and Israeli jets struck a number of Iranian vessels in the Strait of Hormuz, hours after President Donald Trump had suggested negotiations with Tehran over an interim deal were progressing. Oil rebounded after slumping by more than 7% on Monday, as fresh US military strikes in Iran clouded the outlook for an interim deal between Tehran and Washington to reopen the Strait of Hormuz. Treasuries rallied across the curve as cash trading resumed after a holiday, with investors growing more optimistic about a potential US-1 ran deal Bank of Japan Deputy Governor Ryozo Himino highlighted the importance of appropriate policy adjustments to keep the faith of market participants amid a recent selloff in government debt. The Japanese government will use about $3.2 billion from the reserve fund for this year’s annual budget to finance utility subsidies as part of an extra budget, Finance Minister Satsuki Katayama said. Japan was overtaken by China as the world’s second largest creditor nation in 2025, despite setting a fresh record for its tally of overseas assets.