Commerzbank Says Escalating US-Iran Conflict Boosts Brent Oil, Pressures Global Markets
Brent oil climbs more than 4% to above $79 a barrel amid escalating clashes between the U.S. and Iran in the Middle East, according to a note from Commerzbank. Treasuries and U.S. equities futures weaken. The U.S. said the Strait of Hormuz remains open to all shipping and that its military stands ready to ensure freedom of navigation, while Iran announced that the key waterway would be closed "until further notice," wrote Commerzbank. The U.S. launched strikes on Iran, while Tehran reportedly targeted U.S. Navy supplies. Global assets were lower amid the escalating conflict in the Middle East, said the bank. Asian equities sold off, led by the Nikkei (-2%) and KOSPI (-8%), while US equity futures also traded lower. Stocks in Europe slipped too. The US dollar strengthened, with EUR/USD falling below 1.14. Ahead of Chair Kevin Warsh's congressional testimony, the Federal Reserve's pre-released Monetary Policy Report reiterated its commitment to restoring price stability despite inflation remaining well above target. Economists surveyed by The Wall Street Journal expect inflation to reach 3.4% this year, up from 3.2% in April, while forecasting gross domestic product growth of.
Brent oil climbs more than 4% to above $79 a barrel amid escalating clashes between the U.S. and Iran in the Middle East, according to a note from Commerzbank.
Treasuries and U.S. equities futures weaken.
The U.S. said the Strait of Hormuz remains open to all shipping and that its military stands ready to ensure freedom of navigation, while Iran announced that the key waterway would be closed "until further notice," wrote Commerzbank.
The U.S. launched strikes on Iran, while Tehran reportedly targeted U.S.
Navy supplies.
Global assets were lower amid the escalating conflict in the Middle East, said the bank.
Asian equities sold off, led by the Nikkei (-2%) and KOSPI (-8%), while US equity futures also traded lower.
Stocks in Europe slipped too.
The US dollar strengthened, with EUR/USD falling below 1.14.
Ahead of Chair Kevin Warsh's congressional testimony, the Federal Reserve's pre-released Monetary Policy Report reiterated its commitment to restoring price stability despite inflation remaining well above target.
Economists surveyed by The Wall Street Journal expect inflation to reach 3.4% this year, up from 3.2% in April, while forecasting gross domestic product growth of.