WS #9910

The dominant narrative remains the U.S.-Iran deal, which is escalating with new details. Netanyahu's statement that Israel will remain in Lebanon, Syria, and Gaza (Al Jazeera) directly contradicts the deal's premise, reinforcing the fragility of the agreement. A drone strike caused a fire at an oil depot in Russia's Krasnodar region (Reuters/Bluesky), supporting oil prices. China's May new home prices data showed continued weakness (national -3.5% YoY, unchanged from April), with Shenzhen and Guangzhou showing slight MoM improvements but Beijing and Shanghai decelerating. This reinforces the bearish outlook for China-exposed sectors. Separately, a deadly B-52 crash at Edwards Air Force Base was reported, though market impact is likely limited. The macro picture is a relief rally with the Dow at record highs, but the deal's fragility and Israeli defiance introduce downside risk.