Daily Digest — 7 May 2026

Middle East tensions remain the dominant force shaping global markets, even as conflicting signals emerge about potential diplomatic progress. Oil prices climbed to $95.61 as executives warn that supply disruptions could soon cause actual jet fuel shortages across Asia and Europe, threatening summer travel. Yet cryptocurrency markets showed mixed signals, with bitcoin holding steady around $81,000 while dogecoin slipped 4% amid what traders interpreted as ceasefire optimism.

The regional conflict continues escalating despite diplomatic hopes, with Israel striking Beirut for the first time since the Hezbollah ceasefire and reports of an Israeli soldier desecrating a Virgin Mary statue in southern Lebanon, prompting a military investigation. These developments underscore the fragility of any peace efforts as energy markets brace for prolonged disruption.

Meanwhile, Japan’s markets exploded higher as the country reopened after Golden Week holidays, with the Nikkei 225 surging over 5% to record highs and SoftBank shares jumping 16%. The tech rally reflected broader optimism about AI developments, even as Snap revealed its $400 million deal with Perplexity had “amicably ended” and cited Middle East uncertainty in its cautious guidance.

In the UK, political pressures mount as Prime Minister Keir Starmer makes a late pitch to voters ahead of Thursday’s local elections, while think tanks propose cutting speed limits to 20mph in cities and 60mph on motorways to reduce oil demand amid rising prices. Across markets, precious metals gained ground with gold reaching \(4,707 and silver climbing to \)78.38 as investors sought safe havens amid the ongoing uncertainty.