US-Iran tensions continue to dominate proceedings in the new week
It’s a brand new week, but it is very much the same old story for markets. Once again, we’re needing to deal with more US-Iran conflict as both sides continue to trade strikes over the weekend.
And this is all coming even after US president Trump saying that talks may continue, even though “in no uncertain terms, the ceasefire is over". All these shenanigans are taking place while the Strait of Hormuz remains in de facto closure. So, that is still the main thing to take note of.
In case you missed it earlier:
- US hits dozens of Iranian targets in another new strikes wave
- Another wave of attacks, Iran targets Jordan with ballistic missiles
It’s now over three weeks since the ceasefire deal/memorandum of understanding was signed. And yet, both sides have really nothing to show for it as the war continues to rage on. 60 days they said. It will all be done before that they said. Pfft.
With the Strait of Hormuz still closed and both sides seemingly nowhere near the negotiating table now, markets are pretty much left wondering for how long will this continue – again. That is pretty much the name of the game now, with headline risks being paramount once more.
Oil prices are slowly looking like they want to pop again, with WTI crude up 4% to start the new week at $74.33 currently. Meanwhile, Brent crude is seen up over 4% too to $79.10 at the moment.
That is also reverberating to broader markets in a more risk-off fashion today, with a selloff in equities, bonds, and precious metals.
US futures are down again after a modest showing last week with S&P 500 futures down 0.5% and Nasdaq futures down 1.4%. Meanwhile, 10-year yields in the US are pushing up to 4.58% again in retesting the June highs. As for gold and silver, they are down 1.6% to $4,054 and 2.9% to $58.10 respectively as we look towards European trading later.
This article was written by fl9bde53b91e184082bbe3aa3acaaf2cb0 at investinglive.com.