Several significant developments occurred in the third week of June. On a global front, the US-Iran peace deal kept geopolitics buzzing, also impacting the crude oil prices while the US Federal Reserve signalled at a hawkish stance. Meanwhile, HDFC Bank interim chairman's tenure extension and delay in advancement of monsoon were few of the key domestic developments this week.
Here's a recap of the week
US-Iran Peace Deal
President Donald Trump signed the memorandum of understanding (MOU) between the United States and Iran, formally setting in motion the end of the war that began on February 28. He signed the document while dining with French President Emmanuel Macron at the Palace of Versailles, on the sidelines of the G7 summit in France.
Federal Reserve Decision
The Federal Reserve System mainatined its benchmark interest rate at 3.5%-3.75% for the fourth consecutive meeting in a unanimous decision. The central bank increased its median 2026 rate projection to 3.75% from 3.375% earlier and lifted the 2027 rate forecast to 3.625% from 3.125%, indicating a higher-for-longer rate outlook. The Fed cut its 2026 GDP growth forecast to 2.2% from 2.4% and raised its core PCE inflation projection to 3.3% from 2.7%.
Fed officials said economic activity remains solid, while inflation remains elevated partly due to supply shocks. Kevin Warsh announced five task forces to review areas including communications, balance sheet policy, data sources, productivity and jobs, and inflation frameworks, while noting that the Fed has moved away from forward guidance. He said markets perform best when responding to incoming data rather than anticipating Fed actions.
ALSO READ: Hormuz Tensions Escalate: Iran Announces Strait Closure Amid Ongoing Peace Talks With US
PM Modi Meets Trump
US President Donald Trump met Prime Minister Narendra Modi on the sidelines of the G7 Summit in France. During the bilateral meeting, Trump described PM Modi as a "tough negotiator", a long-time friend and a leader under whom India is playing an increasingly important global role. "We would help India if it were attacked," Trump said, underscoring Washington's commitment to its strategic partnership with New Delhi during his meeting with Prime Minister Narendra Modi on the sidelines of the G7 Summit.
Oil Prices Decline
Oil prices made its steepest weekly decline in months as signs of a gradual reopening of the Strait of Hormuz eased concerns over global supply disruptions that had rattled energy markets since the outbreak of the US-Iran conflict. Brent crude fell towards $79 a barrel on Friday and was down more than 9% for the week, while West Texas Intermediate traded near $75. The decline primarily came after an interim peace agreement between Washington and Tehran paved the way for shipping activity to resume through the strategically important waterway.
HDFC Chairman's Tenure Extended
The Reserve Bank of India (RBI) approved the re-appointment of Keki Mistry as the part-time chairman of HDFC Bank for a further period of 90 days. The extension comes as HDFC Bank is understood to be in the final stages of identifying a permanent chairman and is expected to submit its recommendation to the RBI shortly, people aware of the development told NDTV Profit.
Mistry was appointed as interim part-time chairman in March 2026 after the unexpected resignation of former chairman Atanu Chakraborty.
ALSO READ: HDFC Bank Likely To Recommend Permanent Chairman Name To RBI In 10-14 Days
Trump-Meloni Clash
Italy's Prime Minister Giorgia Meloni and and Trump engaged in a verbal exchange after the US President claimed that she had "begged him for a picture" in the G7 meet. Trump, while speaking to Italian broadcaster La7, said, “She begged me for a picture. She wanted a picture with me so badly. I wouldn't have done it, but I felt sorry for her."
Meloni stated that Trump's remarks were "fully made up" and expressed her bewilderment with his comments, asking why the US' head of state would behave in such a fashion with regards to one of its allies. “Italy and I never beg,” Meloni stated. “Some things warrant an immediate response. Trump's remarks are fully made up. I am frankly astounded. I don't know why the president of the US behaves like this with allies."
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