German ZEW survey shows pick up in recovery mood in JulyEurozone banks tighten lending standards further as geopolitical risks weigh on credit conditionsTrouble already for Burnham in his first policy announcement?Iran says any decision to reopen the Strait of Hormuz depends on security considerationsFX option expiries for 21 July 10am New York cutUK unemployment rate holds steady in May, payrolls decline again in JuneUK prime minister Burnham announces VAT cut from energy bills to bring down cost of livingMarkets remain tense on the week as US-Iran tensions stay heightenedIt was a pretty calm session with limited data and news flow. The main highlight was the UK employment report which showed some resilience in the three months to May, with the unemployment rate holding at 4.9% and employment rising by 147,000. Total pay growth eased to 4.3%, suggesting wage pressures continue to moderate. The market reaction was muted given that the data didn't change anything in terms of interest rate expectations. Iran said that any decision to reopen the Strait of Hormuz will depend on security conditions, offering no timeline for restoring normal shipping through the waterway. Tehran will keep the strait closed at least until a potential ceasefire is secured.The German ZEW economic sentiment index surged to 26.3 from 10.5, well above forecasts, reflecting growing optimism that the government's reform agenda will support the recovery. The survey also noted that uncertainty surrounding the Iran conflict and oil prices continues to pose a significant risk to the economic outlook despite the improving sentiment. In the American session, we just have the weekly US ADP employment change. This was a market moving report when it was first released back in October 2025 but the market forgot about it quickly after it became clear the US labour market stabilised.The focus will remain on US-Iran headlines as Trump is said to be weighing between a ceasefire and a full-scale war. It goes without saying that a ceasefire would be positive for risk sentiment, while a full-scale war would have a very negative impact on the markets. This article was written by Giuseppe Dellamotta at investinglive.com.