Iran's military spokesman said responses to any potential Israeli aggression would be faster and more destructive.

Germany's government bond yields are set to rise for a fourth straight week, the longest run since mid-July, as investors price central banks keeping policy restrictive amid resilient growth and persistent inflation. Renewed US-Iran hostilities have lifted Middle East supply risk and pushed oil toward its biggest weekly gain since mid-July. Germany's 10-year bund yield is up about 7.5 bps this week; the 2-year yield is up about 7 bps, its largest weekly rise since mid-July. Traders price the ECB deposit rate at 2.73% by December, implying roughly a 90% probability of another hike after September, and expect the policy rate to reach 3% by September next year.

Sichuan and Shandong have rolled out measures easing constraints on provincial government investment funds. Sichuan's 20-point package cancels reinvestment ratio and fund-registration-location requirements for venture funds, establishes a tiered loss-absorption mechanism permitting up to 100% loss on a single project, and extends fund tenors to up to 20 years in a new provincial guideline. Shandong's 16 measures exempt managers who acted diligently but missed expected returns from liability and remove single-project or single-year P&L as the sole assessment criterion. Quantitative loss tolerance, looser performance assessment, lower reinvestment ratios and longer fund lifespans are being adopted across regions, reflecting an accelerating policy shift toward patient capital in Chinese government investment funds.