Yesterday, investors remained focused on developments in the Middle East conflict. After an eventful weekend, which saw increased tensions and Mojtaba Khamenei appointed as Iran’s new Supreme Leader, Brent prices surged to nearly $120/barrel during yesterday's session. Prices have since retraced, however, after President Trump suggested late yesterday that the war could be close to ending, leaving Brent trading around $93/barrel this morning.
These late-session remarks triggered a risk-on shift in US markets, with equity indices rallying at the end of the session and Treasury yields edging lower. Earlier in the session, Asian equities fell sharply and euro area stock markets opened with steep losses, to partially recover by end of day. The EUR/USD cross closed near at 1.16, after hitting 1.15.
TTF prices experienced a similar dynamic, with both spot and future prices spiking yesterday, but trading much lower as of this morning. With no major macro releases today, investors focus will remain in the Middle East.
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