U.S. ultra-low sulfur diesel futures hit the highest level since February, outpacing gains in oil and gasoline as analysts warned that diesel supply is the most exposed to the conflict in the Middle East.

The Iran-Israel conflict and equity markets are now in sharp focus. As direct strikes escalated in June 2025, global financial markets responded immediately.

As tensions in the Middle East escalate to a dangerous new chapter, concerns are arising as to how developments could affect the Malaysian economy and stock market performance, albeit indirectly in all likelihood.

The Federal Reserve will release its June rate decision on Wednesday, with the market expecting the central bank to hold interest rates steady. Bank of America Securities senior US economist Stephen Juneau and Ritholtz Wealth Management chief market strategist Callie Cox join Morning Brief to discuss their expectations for the Fed meeting as geopolitical tensions in the Middle East rise.

GBP/USD plummeted over 1.2% on Tuesday, backsliding through near-term congestion and popping out the other side near the 1.3400 handle after global investors were knocked off their pre-seeded hopes that the Israel-Iran altercation would find a quick and peaceful resolution.

If the middle east conflict remains restricted, or even subside, one could see the market impact wear off, said Chirag Mehta, the CIO at Quantum AMC. However, the markets are at risk of a correction as valuations have been cooled off,