METI: Japan's total petroleum product sales fell 11.3% YoY in April.

Tokyo (Japan) unadjusted CPI, May month-on-month +0.3% vs +0.6% prior.

① Iran 1. The Iranian Revolutionary Guard stated that peace in the Middle East is unlikely unless Israel is "destroyed." 2. Ali Bagheri, Deputy Secretary of Iran's Supreme National Security Council, stated that the "Abraham Accords" exacerbate regional insecurity. 3. A spokesperson for the Iranian Revolutionary Guard stated that this morning, a US base in Kuwait was subjected to a large-scale missile and drone attack by the Revolutionary Guard. This attack was a response to the invasion of Bandar Abbas and will continue as a new operational procedure. 4. Iranian media reported that Iranian air defense forces shot down a US drone near Bushehr. ② United States 1. The US military confirmed the interception of five Iranian drones. 2. US officials stated that the US military carried out new strikes against Iranian military facilities. 3. US Treasury Secretary Bessenter stated that the US Treasury Department will continue to exert maximum pressure on Iran. ③ Israel 1. The Israel Defense Forces (IDF) stated that in the past two days, IDF soldiers, acting on intelligence from the Israeli Security Service, arrested five terrorists in three targeted counter-terrorism operations in the Judea-Samaria district. 2. Israeli Prime Minister Netanyahu ordered Israeli troops to occupy 70% of Gaza. 3. Israeli media: Israeli airstrikes on Beirut were aimed at Iranian militia commanders. ④ Strait of Hormuz 1. The US added Iran's Persian Gulf Straits Authority to its sanctions list. 2. Iranian officials: Iran will not allow the US to "undermine its sovereignty over the Strait of Hormuz." 3. US Treasury Secretary Bessenter: Has warned businesses and countries not to pay passage fees to Iran. 4. Iranian Islamic Revolutionary Guard Corps: Iran still controls and manages the Strait of Hormuz, and any interference will be met with a "decisive response." 5. Iranian armed forces fired warning shots at four ships near the Strait of Hormuz. ⑤ Ceasefire Negotiations 1. Iranian officials: Frozen Iranian assets must be released unconditionally. 2. Iranian President: Iranian and Pakistani leaders discussed diplomatic efforts aimed at ending the war. Pakistan hopes that current diplomatic efforts will yield final results as soon as possible. 3. US officials: The US and Iran have reached an agreement on a memorandum of understanding, but it still requires final approval from Trump. 4. Israeli media reports that the US-Iran memorandum of understanding has not been approved by Iran's Supreme Leader. 5. Iran's Deputy Foreign Minister stated that Iran will not sign any memorandum of understanding that is not in its national interest. 6. A diplomatic source from Al Jazeera stated that the agreement between the US and Iran will be implemented in two phases. The first phase includes signing the memorandum of understanding, with Pakistan witnessing the signing ceremony. 7. US Treasury Secretary Bessenter stated that any agreement with Iran requires the Strait of Hormuz to be fully open, and any plan to impose tolls on passage through the strait is a "null and void proposal." ⑥ Other Circumstances 1. The US added the UN Special Rapporteur on the West Bank and Gaza to its sanctions list. 2. Gulf states condemned the attacks against Kuwait, with the UAE specifically naming Iran.