According to Iran's Fars news agency, the unfreezing of Iran's funds is the last serious sticking point with the United States (US), being resolved through Qatar mediation. However, there has been no official confirmation.

European Central Bank (ECB) Chief Economist Philip Lane said in an interview with Nikkei, "I don't think the market needs some kind of extra guidance from us,” when asked about speculation of an interest rate hike by the central bank.

Citing a source close to Tehran's negotiation team, Iran's Tasnim news agency reported on Tuesday that Iran insists $24 billion of frozen Iranian funds must be released in a potential Memorandum of Understanding (MOU) with the United States (US).

EUR/CAD depreciates after four days of losses, trading around 1.6060 during the European hours on Tuesday. The currency cross loses ground as the commodity-linked Canadian Dollar (CAD) remains firm amid higher crude oil prices.

Iran’s Islamic Revolutionary Guard Corps (IRGC) reported during the European trading session on Tuesday that it identified hostile aircrafts entering its airspace and intercepted an MQ-9 drone.

Iranian Supreme Leader Mojtaba Khamenei said during the European trading session on Tuesday that the United States (US) will no longer have safe haven for Middle East bases. Khamenei added that he invites all Islamic countries to cooperate.

Danske Research Team notes that equities rose 1.1% in Europe in thin holiday trading, with cyclicals, small caps and growth outperforming. They attribute the risk-on tone partly to peace talks and Oil prices, but also to a reversal in long-end yields that began last week.

BNY’s John Velis and David Tam note that recent FOMC minutes and comments from Fed Governor Waller point to higher two‑way risk for US interest rates.

Here is what you need to know on Tuesday, May 26:

Danske Research Team reports that US strikes on Iranian missile launch sites and mine-laying boats have pushed Brent crude to 98.1 USD/bbl, still below Friday’s 103.5 close.

Sweden Producer Price Index (MoM) rose from previous 0.6% to 1.1% in April

Sweden Producer Price Index (YoY) climbed from previous 2% to 4.7% in April

The AUD/JPY cross loses momentum to near 113.85 during the early European session on Tuesday. The Australian Dollar (AUD) weakens against the Japanese Yen (JPY) as Australia’s labor market surprised to the downside, and markets remain concerned over the Middle East uncertainty. 

European Central Bank (ECB) Executive Board Member Isabel Schnabel said on Tuesday, Even if Iran war ended today, policy action is needed given the damage to the energy infrastructure.

The Bank of Japan (BoJ) said on Tuesday that Japan's core consumer inflation rate excluding one-off factors, as measured by the Japanese central bank's new gauge, reached 2.8% in April. This figure exceeded the BoJ’s 2% target and accelerated from 2.5% in March.

Japan Coincident Index fell from previous 116.5 to 116.4 in March

Japan Leading Economic Index came in at 114 below forecasts (114.5) in March

Singapore Industrial Production (MoM): 5.8% (April) vs 4.7%

Singapore Industrial Production (YoY) above forecasts (12%) in April: Actual (17.6%)

Asian stocks show mixed results on Tuesday as traders tracked diplomatic progress regarding the US-Iran conflict. Mediators reported that an agreement to reopen the Strait of Hormuz fully is nearing, providing some relief to the markets.

Gold prices fell in India on Tuesday, according to data compiled by FXStreet.

Bank of Japan (BoJ) Deputy Governor Himino said on Tuesday that the market sees increases in long-term interest rates as reflecting global inflation worries.

West Texas Intermediate (WTI) oil price gains ground after four days of losses, trading around $90.60 per barrel during the Asian hours on Tuesday. Crude oil prices advance on renewed supply concerns after the United States (US) forces conducted self-defense strikes in southern Iran on Monday.

NZD/USD depreciates after registering modest gains in the previous day, trading around 0.5860 during the Asian hours on Tuesday. The pair depreciates as the US Dollar (USD) advances on rising safe-haven demand amid uncertainty surrounding the US-Iran peace agreement.

United Kingdom BRC Shop Price Index (YoY) came in at 1.2%, above expectations (1.1%) in May

UOB’s Jester Koh notes that Singapore’s 1Q26 GDP was sharply revised higher and that MTI kept its 2026 growth forecast at 2.0–4.0%. The bank raises its 2026 GDP forecast to 3.2%, citing sustained AI-related demand and strong electronics indicators.

Mexico Accumulated Current Account/GDP down to -3.1% in 1Q from previous 1.55%

Mexico Current Account, $ (QoQ) dipped from previous $7702M to $-15878M in 1Q

Brown Brothers Harriman’s (BBH) Elias Haddad expects the Bank of Korea (BoK) to hold its policy rate at 2.50%, but warns of a hawkish surprise aimed at curbing Korean Won (KRW) weakness.

HSBC Asset Management spotlights Asia’s small-cap stocks as a strong performer over the past five years, outperforming regional large caps with lower volatility and better sector diversification.