Trump Pauses Iran Strikes; Oil Drops, Gold Gains

Oil prices, with WTI slipping below $93/bbl and Brent struggling below $100/bbl, declined as the immediate supply shock risk eased. Gold rose 1.1%, stabilizing after recent losses.

Despite the temporary diplomatic window, underlying Middle East tensions persist, evidenced by missile attacks on US-linked assets in the UAE, Saudi Arabia, and Kuwait, and the Pentagon weighing a 10,000 troop deployment. Federal Reserve speakers Cook, Barr, and Jefferson reinforced "higher for longer" interest rate expectations due to persistent inflation pressures from energy shocks, leading Morgan Stanley to delay Fed rate cuts.

Japan's Finance Minister Katayama warned of potential FX intervention to counter yen weakness. China's industrial profits surged 15.2% in January-February, but the outlook faces geopolitical risks and rising input costs, while India cut fuel duties to combat inflation.

Cyclone Narelle disrupted 8% of global LNG supply from Australia.