Iranian media reported a loud explosion on Lavan Island in southern Iran.

SOCGEN strategist Kit Juckes says the Swedish krona appears undervalued after recent declines as persistently low rates weigh on the currency. On a real effective exchange rate basis the krona is about 6% above its 2023 low but roughly 18% weaker versus its 20-year average. June CPIF (CPI with fixed interest rate) fell to 1.3%, a reading that does not support Riksbank tightening, while May economic growth accelerated to 3.9%. Juckes says Sweden’s relative outperformance versus the euro area could attract capital inflows and eventually feed through to inflation.

WTI crude rose $0.40 intraday to $72.65/bbl.