Daily Digest — 17 May 2026

Iraq’s new prime minister Ali al-Zaidi formally took office pledging reforms as political transitions continued across the Middle East, while hundreds of Tunisians marched through Tunis protesting economic crisis and political arrests. Oil surged 4.2% to $101 as regional tensions supported energy markets, though precious metals retreated sharply with silver plunging 9.1%.

The cryptocurrency sector faced a sobering reality check as the $293 million KelpDAO hack highlighted DeFi’s maturation challenges beyond simple coding bugs. Bitcoin slipped 1% to $78,179 while crypto users continue choosing high yields over security, leaving billions exposed to potential exploits as insurance adoption lags.

In the UK, political tensions escalated as tens of thousands attended Tommy Robinson’s rally in London featuring Islamophobic rhetoric, while counter-protesters and activists trolled the far-right gathering with pro-immigration messages on giant screens. The pound weakened 0.6% as Brexit returned to the political spotlight amid Labour leadership positioning.

Bulgaria’s surprise Eurovision victory over Israel sparked celebrations, though the contest was overshadowed by protests over Gaza. Meanwhile, Kevin Warsh faces a challenging Fed environment with inflation concerns limiting rate cut prospects, as commodities broadly declined despite oil’s rally.