Woofun AI reports that Bitunix analysts assert market dynamics are driven by energy supply constraints and long-term inflation expectations rather than recent PPI data. While June U.S. PPI fell below forecasts, Federal Reserve officials maintain that single-month figures do not justify policy shifts, keeping rates elevated to suppress liquidity.

Escalating U.S.-Iran tensions threaten the Strait of Hormuz, depleting strategic petroleum reserves and reducing buffer capacity against supply shocks. This geopolitical risk, combined with a steepening yield curve, indicates markets are reassessing fiscal deficits and price pressures. Future volatility in risk assets may hinge on PCE data and Middle East developments, potentially forcing the Fed to sustain tightening measures.