Global markets began June under a new military escalation, after the US and Iran resumed exchanging attacks. Oil prices surged more than 3%: Brent rose 3.36% to US$94.18 and WTI advanced 3.94% to US$90.80. In Asia and Europe, the market showed mixed signals. S&P 500 futures advanced 0.29%.

While Israel expanded its offensive in Lebanon, the US military reported carrying out 'defensive' bombings in southern Iran between Saturday and Sunday, targeting radar systems and drone control centers in the city of Goruk and on Qeshm Island in the Strait of Hormuz.

In response, Iran attacked a military base in Kuwait. A missile damaged two American drones and slightly injured soldiers, according to Bloomberg. Kuwait intercepted Iranian missiles and drones in the early hours of Monday. The escalation occurs while Trump has yet to decide whether to sign the peace memorandum.

Japan carried out the largest currency intervention in its history between April and May, amounting to US$73 billion (11.7 trillion yen), to defend the yen, according to the Ministry of Finance.

This week's agenda includes the US services PMIs and ADP employment figures (Wednesday), the Fed's Beige Book (Wednesday), and the US payroll data on Friday (June 5th).