BOC minutes: members said uncertainty remains high, in part due to the unpredictability of the Middle East conflict.

Fars News cited a military source saying the Strait of Hormuz remains fully closed and that no vessel has the right to transit the strategic waterway; any vessel attempting to transit, especially those ignoring warnings, will face a decisive and swift response.

Deutsche Bank economist Antje Praefcke said in a note that if the Federal Reserve’s decision leads markets to pare back expectations for rate hikes later this year, the US dollar could weaken. A Fed statement or Chair Kevin Warsh’s press conference may signal that inflation risks are controllable and temporary. With recent falls in energy prices and June inflation undershooting forecasts, Warsh is unlikely to adopt an extreme hawkish bias toward additional tightening, making dollar upside driven by stronger rate-hike expectations less likely.