Iranian media quoted a senior military source saying Iran will respond tonight to US actions, with a response several times stronger than the US strike. US interests and bases in the region will be hit soon, and Americans will again witness their humiliation.

U.S. Treasury Deputy Secretary Aileen Brown said parties still disagree on wording around sovereign debt restructuring and efforts to reduce global imbalances.

NAB expects Australia to report weak Q2 GDP on Wednesday, forecasting QoQ growth of about 0.2% and YoY growth of 1.8%. NAB says weak growth reduces the chance of further RBA hikes, but warns persistently low productivity could maintain inflationary pressure even with slow growth; the RBA continues to prioritise inflation control. Calls for productivity-boosting reforms have largely stalled due to political cost, and RBA Governor Bullock said the federal government in Canberra must lead on reform.