WS #9920

The dominant narrative in this window is the escalation of Ukrainian drone strikes on Russian oil infrastructure, with multiple sources corroborating a strike on the Moscow Oil Refinery in Kapotnya (supplying ~40% of Moscow's fuel) and an oil depot in Krasnodar Krai. This escalates energy supply risks and could support oil prices, countering the recent bearish trend from the US-Iran deal. Separately, BOJ Deputy Governor Uchida held a press conference, stating the wage-price mechanism has taken root and financial conditions remain accommodative, while the German government formally rejected UniCredit's offer for Commerzbank shares, citing inadequate premium. China's May data showed factory production beating estimates but retail and real estate sliding, reinforcing concerns about Chinese demand. The Nikkei closed at an all-time high. Oil prices edged lower early Tuesday amid lingering uncertainty over the US-Iran deal details, but the drone strikes on Russian refineries provide a bullish counter-signal.