Escalating tensions in the Middle East have pushed oil prices higher, while growing expectations of a Federal Reserve interest rate hike have led markets to focus on Tuesday's U.S. CPI data.

After the U.S. launched a new round of military operations against Iran, international oil prices rose, U.S. Treasury yields climbed, and uncertainty over the Strait of Hormuz further intensified market volatility. Driven by rising oil prices lifting inflation expectations, markets have increased bets on further interest rate hikes by the Federal Reserve, while gold and U.S. stock index futures declined. Going forward, markets will closely watch the U.S. June CPI data scheduled for release at 20:30 Beijing time on Tuesday (July 14), along with congressional testimony from Federal Reserve Chair Kevin Warsh and the kickoff of the U.S. earnings season. The CPI data will be one of the most significant macro events this week, and may further shape market expectations for the Federal Reserve’s subsequent monetary policy path.