Russia strikes Kyiv for fifth day, intensifies air campaign

Russia has continued its targeted strikes on Kyiv for the fifth consecutive day, escalating pressure on Ukraine’s defenses. The sustained attacks involve drones and aim to deplete Ukrainian air defenses and disrupt life in the capital. This development underscores a strategic shift towards an attritional air campaign by Russia, which appears to be intensifying its military operations in the region. The ongoing conflict has led to increased focus on the potential for further Russian advances into Ukrainian territory, particularly towards Sloviansk. Key Takeaways The repeated strikes on Kyiv suggest a prolonged air campaign by Russia, consistent with an effort to weaken Ukraine’s defenses. Markets appear to interpret the situation as an indicator of potential Russian advances, with pricing movements reflecting increased attention on possible territorial gains. The odds for Russian military entry into Sloviansk by the end of 2026 are currently priced at 22%, reflecting a cautious outlook by markets. What to Watch Observers will be closely monitoring any further escalation in military activities, particularly any movements towards Sloviansk and other strategic locations. Market pricing...