US EditionDeal, delay or strike? Investors on edge as Trump's Iran deadline nears
Markets brace for higher oil and a possible strike as traders weigh a deadline that could lift Brent crude to $130, Citigroup said.
- On Tuesday, President Donald Trump set an 8 p.m. deadline for Iran to reopen the Strait of Hormuz, threatening to target Iranian civilian infrastructure if the blockade of Gulf oil persisted.
- David Morrison, senior market analyst at Trade Nation, noted that "markets are dealing with a somewhat binary situation as they try to position themselves ahead of a deadline which will either see a sudden resolution or a swift escalation."
- Analysts expect Brent crude to remain supported around $110 per barrel with supply disruptions continuing, while UniCredit analysts warned the Bank of Japan could intervene if USD-JPY rises above 160.
- Raffi Boyadjian, lead market analyst at Trading Point, said "another TACO moment for Trump is more likely than Iran backing down and this is probably what's preventing markets from going into meltdown."
- J.P. Morgan analysts outlined a ceasefire scenario where oil prices and bond yields decline significantly, while Steve Englander, FX strategist at Standard Chartered, warned that sustained high oil prices could strengthen the USD.
17 Articles
17 Articles
Dollar kept aloft as another Trump deadline looms
The dollar stood just shy of recent highs on Tuesday as traders counted down to a US-imposed deadline for Iran to open the Strait of Hormuz to shipping or face attacks on its infrastructure. War in the Middle East and the closure of the chokepoint in the Persian Gulf have sent energy prices soaring and driven investors to the dollar as the most effective safe haven, pushing the greenback higher, especially in Asia. Hope for some sort of deal …
Traders Position for Another Trump Deadline
“President Donald Trump’s latest deadline for Iran to agree to a deal is just hours away, and investors are once again finding themselves forced to prepare for a range of possible outcomes,” Bloomberg reports. “But whether they’re buying more bonds, loading up on commodities or holding cash, they share a common view — weeks of volatility sparked by Trump’s shifting positions have left them frustrated and uncertain about the path forward.”
Markets Await Trump’s Iran Deadline Outcome
Global markets are in suspense as traders await President Trump’s deadline for Iran to reopen the Strait of Hormuz. Despite threats from the U.S., Tehran has refused to comply, leaving investors wary of potential military action. Oil prices have fluctuated, with Brent crude initially rising above $111 per barrel before paring gains. U.S. WTI crude is hovering around $113 per barrel after briefly exceeding $116. Equities started cautiously, with …
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