Woofun AI reports that geopolitical tensions have intensified as the US military launched a second round of airstrikes against Iranian targets in response to the downing of the Panamanian-flagged oil tanker "Kiku." The Iranian Revolutionary Guard retaliated with missile and drone attacks on Kuwait and Bahrain, warning of a 'destructive response" to any agreement violations, thereby escalating risks in the Strait of Hormuz and pressuring oil prices.

On the economic front, the non-farm payroll report is scheduled for early release on Thursday, July 2, due to the July 4 holiday, with markets expecting 130,000 job additions. This week’s data calendar includes JOLTS job openings, ADP employment, ISM Manufacturing PMI, and Eurozone CPI. While the S&P 500 has risen over 7% year-to-date and JPMorgan raised its year-end target to 7800, gold fell below $1800 amid strong US data, and institutions advise caution regarding volatility.