According to two US officials, the US military escorted 40 commercial vessels carrying 18 million barrels of oil through the Strait of Hormuz on Tuesday amid ongoing exchanges of strikes between the US and Iran. The officials stated that US forces employed air, sea, and space assets to counter drone attacks and neutralize anti-ship missiles during the operation, which they described as part of a broader strategy to protect commercial traffic while maintaining a naval blockade on Iranian ports.

Iranian state media reported ongoing retaliatory strikes on Kuwait and the UAE following a US announcement of a bombing cessation, while citing 18 fatalities and over 140 injuries in Iran since August 30. Additionally, The New York Times reported that US forces struck a wedding in Kuhestak, resulting in at least five deaths including a child, a claim that remains under verification by Western media.

US stock futures remained largely flat ahead of the weekly jobs report, with technology contracts slightly lower while small caps lagged, despite a rise in crude oil prices. Bond yields edged down 1 basis point, seemingly disconnected from energy market movements, as market-implied odds of a Fed rate hike stood at approximately 64%.

In Asia, the Japanese yen strengthened on speculation regarding more hawkish policy from the Bank of Japan, while US economic data releases and Fed officials' speeches were scheduled for the day.

Recent reports suggest that Ukraine’s increased drone production may be consuming a significant portion of global germanium demand, coinciding with China’s ongoing restrictions on the export of critical metals to Western nations. While US authorities and industry analysts assert that Beijing is utilizing these supply controls as a strategic tool against Western supply chains, the specific claim that Ukrainian operations account for 4% of global demand has not been independently verified by major international bodies.

In response to these tensions, Western governments are accelerating efforts to develop domestic and allied mining capabilities to reduce reliance on Chinese exports.