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Ceasefire · Geopolitics · Oil Prices · Strait Of Hormuz
Oil prices climbed and U.S. Treasurys held steady as a cease-fire deal between the U.S. and Iran showed early signs of strain, with Israeli strikes on Lebanon and Iran's continued limitation of shipping through the crucial Strait of Hormuz driving market uncertainty.
Brent crude for June delivery rose 2.2% to $96.86 a barrel, while WTI futures for May gained 3.3% to $97.51 a barrel. UAE oil giant ADNOC's CEO stated the Strait of Hormuz is shut and must reopen without conditions.
Analysts at Kpler confirmed the conditional two-week ceasefire is faltering, emphasizing unresolved deep supply challenges in the crude oil market. U.S. stock futures, including the S&P 500 and Dow Jones Industrial Average, fell by around 0.4% premarket, with the Nasdaq also down 0.4%.
Asian stocks largely declined, Japan's Nikkei falling 0.7% and South Korea's Kospi ending 1.6% lower. European blue-chip indexes were mixed; the German DAX slid 0.6% and the CAC 40 moved 0.3% lower, while London's FTSE 100 gained 0.2% due to rallying oil majors.
The dollar traded steady, DXY index flat at 99.109. U.S. Treasury yields were little changed, the two-year yield edging 0.2 basis points lower to 3.789% and the 10-year yield up 0.2 basis points at 4.291%.
Eurozone government bond yields rose, with the 10-year German Bund yield up 2.9 basis points to 2.968% and the 10-year French OAT yield up 4 basis points to 3.616%. Bitcoin fell 0.6% to $70,944, and gold prices eased 0.8% to $4,738.10 an ounce.
Federal Reserve minutes revealed officials expect slower inflation progress.
Oil Surges as Hormuz Blocked, Ceasefire Falters(current)
Oil prices nudged below $95 a barrel and U.S. stock futures were flat in placid early European trade, amid investor optimism around U.S.-Iran peace talks this week.
