ANZ sees Brent above $90 for 2026 with risk of $100-plus into 2027South Korea's central bank ready to turn hawkish as chip boom masks inflation pressureRBNZ board member Gai says Hormuz shock does not warrant reflexive rate hikesUS Navy to shadow Hormuz convoys but stop short of direct escorts (Avios, echoing WSJ)Australian March 2026 building approvals -10.5% m/m (prior +29.7%)Australia Monthly Inflation Gauge showed "Monthly inflation rose again in April"CBA tips RBA rate hike tomorrow but warns Iran war makes it a close call. Split RBA boardBarclays warns yen recovery likely temporary despite Tokyo's $35bn interventionUKMTO says a tanker has reported being hit by unknown projectiles, Strait of HormuzPentagon puts full military weight behind Project Freedom (Hormuz freedom) from May 4Iran draws red line (ceasefire breach) on Hormuz as US ship coordination plan takes shapeFed's Kashkari refuses to rule out rate hikes as Iran conflict stokes inflationWSJ says Trump plan to guide ships through Hormuz doesn’t involve U.S. Navy escortsOil down, equities up on Trump's Hormuz plan just announced. Leaves Iran all at sea.Trump launches Project Freedom to escort ships out of Hormuz. Leaves Iran stranded.Weekend - Bulk carrier attacked by small craft off Iran's Sirik coast, crew safeTrump: US Navy will make effort to free up ships in Hormuz beginning Monday Mid East timeOpec+ crude oil output rise largely symbolic as Hormuz strait stays closedMonday open indicative forex prices, 04 May 2026Newsquawk Week Ahead: US NFP, ISM Services PMI, RBA, Canadian jobs and OPEC+At a glance:Thin Asia-Pacific session with Japan and China on public holidays; USD/JPY dipped early before grinding higher through the dayTrump announces Project Freedom to guide neutral ships through the Strait of Hormuz; CENTCOM commits destroyers, 15,000 troops and 100-plus aircraft to support the operationWSJ and US officials clarify no formal naval escorts; CENTCOM deployment complicates that framingIran's parliament security chief rejects Project Freedom as a ceasefire violationTanker struck by unknown projectiles 78NM north of Fujairah shortly before Trump's announcementIran's foreign ministry says its 14-point proposal covers only the end of US-Israeli aggression; nuclear issues excluded; Trump says he is not satisfied with Iranian proposals but describes talks as going very wellFed's Kashkari warns Iran war raises inflation risks and may force rate hikesAustralia and Japan sign agreements on economic security, critical minerals and defenceBitcoin clears $80,000 for the first time since late JanuaryRBA rate decision due Tuesday 2.30pm Sydney time; hike widely expected with market pricing above 75%Thin liquidity defined the Asia-Pacific session on Monday with Japan and mainland China both out for public holidays. USD/JPY saw some early volatility before the pair spent the remainder of the session drifting modestly higher. Major FX pairs traded in confined ranges throughout. AUD in a holding pattern ahead of tomorrow's Reserve Bank of Australia decision.Middle East developments moved quickly and dominated the session's narrative. President Trump announced via Truth Social that the United States would begin guiding neutral vessels safely out of the Strait of Hormuz under an operation he called Project Freedom, framing the move as a humanitarian gesture on behalf of countries caught up in a conflict not of their making. Trump warned that any interference with the process would be dealt with forcefully.A senior US official told the Wall Street Journal that the initiative would not involve US Navy warships formally escorting vessels, describing it instead as a coordination framework for countries, insurers and shipping organisations. That framing was quickly complicated by a CENTCOM announcement confirming that military support for Project Freedom begins May 4, with guided-missile destroyers, more than 100 land and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members committed to the strait. The mission includes keeping vessels updated on the safest transit lanes and intervening if hostile Iranian vessels or aircraft attempt to challenge commercial shipping.Iran's response was unambiguous. The head of parliament's National Security Commission rejected Project Freedom outright, warning that any US interference in the maritime management of the Hormuz strait would constitute a violation of the ceasefire. In the diplomatic background, Iran's foreign ministry spokesperson confirmed that Tehran's 14-point proposal to Washington is focused solely on ending US-Israeli aggression and does not include nuclear issues. Trump said he was not satisfied with the Iranian proposals, though he told reporters after disembarking Air Force One on Sunday evening that negotiations were going very well without elaborating further.A tanker was struck by multiple unknown projectiles on the Oman corridor of the strait, 78 nautical miles north of Fujairah, UAE, per UKMTO. The attack occurred shortly before Trump's Project Freedom announcement.On the macro side, Minneapolis Fed President Kashkari reiterated that the Iran war raises inflation risks and may require rate hikes, saying the Fed cannot signal cuts while the Hormuz strait remains closed. Separately, Australia and Japan signed a package of agreements covering economic security, critical minerals and defence cooperation.Bitcoin crossed $80,000 for the first time since late January, providing one of the session's few risk-positive signals.The RBA's rate decision is due at 2.30pm Sydney time on Tuesday, equivalent to 0430 GMT and 0030 US Eastern time. A 25 basis point hike is widely anticipated with market pricing tracking above 75%, though the decision is expected to be another split vote. AUD/USD held a confined range through the session ahead of the announcement. This article was written by Eamonn Sheridan at investinglive.com.