{"id":63769,"date":"2026-06-26T01:08:14","date_gmt":"2026-06-26T05:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-market-update-japan-proposes-historic-tax-cut-as-oil-prices-retreat-and-binance-exits-eu\/63769\/"},"modified":"2026-06-26T01:08:14","modified_gmt":"2026-06-26T05:08:14","slug":"global-market-update-japan-proposes-historic-tax-cut-as-oil-prices-retreat-and-binance-exits-eu","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-market-update-japan-proposes-historic-tax-cut-as-oil-prices-retreat-and-binance-exits-eu\/63769\/","title":{"rendered":"Global Market Update: Japan Proposes Historic Tax Cut as Oil Prices Retreat and Binance Exits EU"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Japan&#39;s ruling Liberal Democratic Party (LDP)<\/strong> has proposed a historic <strong>reduction of the consumption tax on food to 1%<\/strong> from the current 8%, marking the first-ever cut since the tax was introduced in 1989.<\/li>\n<li><strong>U.S. Oil Futures (<a href=\"\/stock\/WTI\">WTI<\/a>) fell over 2% to $70.46 per barrel<\/strong>, driven by easing geopolitical risk premiums following a landmark <strong>U.S.-Iran interim peace deal<\/strong> and the reopening of the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>Binance<\/strong> will suspend services for <strong>European Union<\/strong> clients starting <strong>July 1, 2026<\/strong>, after failing to secure a license under the bloc&#39;s new <strong>Markets in Crypto-Assets (MiCA)<\/strong> regulation.<\/li>\n<li><strong>The IAEA<\/strong> confirmed the restoration of the <strong>750 kV Dniprovska power line<\/strong> at the <strong>Zaporizhzhia Nuclear Power Plant<\/strong>, a critical development for maintaining cooling systems at Europe&#39;s largest nuclear facility.<\/li>\n<li><strong>Russia reported downing 660 drones<\/strong> in a massive overnight attack, as Ukraine intensifies its &quot;long-range sanctions&quot; campaign against Russian energy assets and refineries.<\/li>\n<\/ul>\n<h2>Japan Proposes First-Ever Consumption Tax Cut<\/h2>\n<p>The Japanese government, led by Prime Minister <strong>Sanae Takaichi<\/strong>, is moving toward a temporary reduction of the consumption tax on food and beverages to <strong>1%<\/strong>. The measure, intended to last for <strong>two years beginning in April 2027<\/strong>, aims to cushion the impact of persistent inflation on households.<\/p>\n<p>To fund the estimated <strong>4.4 trillion yen ($27.5 billion)<\/strong> revenue shortfall, the administration plans to overhaul existing subsidies and tap non-tax revenues rather than issuing new deficit-financing bonds. Critics and economists at <strong>Nomura Research Institute<\/strong> have expressed concern over the long-term fiscal strain, noting that Japan has never previously lowered this tax rate since its inception.<\/p>\n<h2>Energy Markets React to U.S.-Iran Peace Deal<\/h2>\n<p>Crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> experienced a sharp decline as the <strong>International Maritime Organization (IMO)<\/strong> confirmed safety guarantees for tankers in the <strong>Strait of Hormuz<\/strong>. <strong>WTI Crude Oil (<a href=\"\/stock\/WTI\">WTI<\/a>)<\/strong> futures dropped more than <strong>2%<\/strong>, trading near <strong>$70.46<\/strong>, as the market unwinds wartime risk premiums.<\/p>\n<p>The drop comes despite <strong>EIA data<\/strong> showing a <strong>6.1 million barrel draw<\/strong> in U.S. crude inventories, which now sit well below the five-year average. The easing of tensions has also bolstered <strong>U.S. airline stocks<\/strong>, with <strong>United Airlines (<a href=\"\/stock\/UAL\">UAL<\/a>)<\/strong> and <strong>Delta Air Lines (<a href=\"\/stock\/DAL\">DAL<\/a>)<\/strong> seeing gains of over <strong>4%<\/strong> and <strong>2%<\/strong> respectively as fuel cost concerns abate.<\/p>\n<h2>Regulatory Hurdles Force Binance Out of EU<\/h2>\n<p><strong>Binance<\/strong>, the world\u2019s largest cryptocurrency exchange, informed users this week that it will stop providing services to <strong>EU clients<\/strong> after failing to obtain a <strong>MiCA license<\/strong> by the <strong>June 30<\/strong> deadline. The exchange reportedly withdrew its application in <strong>Greece<\/strong> following regulatory concerns regarding anti-money laundering controls and the suitability of former leadership.<\/p>\n<p>While <strong>Binance<\/strong> plans to reapply through <strong>France<\/strong>, the company will be legally unable to serve the bloc in the interim. This exit highlights the tightening regulatory environment in Europe, contrasting with more relaxed trends in other jurisdictions.<\/p>\n<h2>Nuclear Safety Breakthrough at Zaporizhzhia<\/h2>\n<p><strong>IAEA Director General Rafael Grossi<\/strong> announced that essential energy infrastructure has been restored at the <strong>Zaporizhzhia Nuclear Power Plant (ZNPP)<\/strong>. The repairs to the <strong>750 kV Dniprovska line<\/strong> were completed under a localized ceasefire mediated by the agency, following months of delicate negotiations and extensive de-mining.<\/p>\n<p>Reliable off-site power is considered &quot;essential&quot; for the plant\u2019s safety, as all six reactors remain in shutdown and require constant cooling. Meanwhile, <strong>Grossi<\/strong> also signaled that <strong>IAEA<\/strong> inspectors expect to visit <strong>Iran\u2019s<\/strong> nuclear sites soon as part of the new U.S.-Iran memorandum of understanding, despite ongoing &quot;wars of words&quot; between Washington and Tehran over the timing of such inspections.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Japan&#39;s ruling Liberal Democratic Party (LDP) has proposed a historic reduction of the consumption tax on food to 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