Category: CAD

Asset Summary – Tuesday, 14 April

US DOLLAR is facing downward pressure as the dollar index has been declining, reaching its lowest point since late February. This decline is largely attributed to optimism surrounding a potential ceasefire agreement between the US and Iran, despite recent failed negotiations and initial threats of a blockade. The anticipation of a ceasefire and possible reopening of the Strait of Hormuz is easing concerns about oil prices and inflation, subsequently reducing expectations for aggressive tightening by the Federal Reserve. Furthermore, while US producer prices saw an increase and ADP figures indicated solid job growth, these positive data points appear to be overshadowed by the geopolitical factors impacting market sentiment towards the dollar.

BRITISH POUND is gaining value, propelled by improved risk sentiment linked to potential Middle East peace negotiations and the subsequent decline in oil prices. Despite ongoing inflationary pressures stemming from high energy costs and the closure of the Strait of Hormuz, the expectation of a more hawkish stance from the Bank of England, with traders anticipating nearly two interest rate hikes before year-end, is further supporting the currency. Additionally, positive domestic retail sales figures, particularly in the food sector, contribute to a strengthening outlook for the pound.

EURO is gaining value, driven by optimism surrounding potential peace negotiations in the Middle East, despite ongoing geopolitical tensions with the US and Iran. The possibility of renewed US-Iran talks is fueling a risk-on sentiment among investors, which is benefiting the currency. While high energy costs due to the Strait of Hormuz closure could sustain inflationary pressures, the market anticipates a more aggressive monetary policy from the European Central Bank, with expectations of multiple interest rate hikes before the end of the year, further supporting the euro’s upward trend.

JAPANESE YEN is exhibiting a potential for appreciation as it rebounds from a recent losing streak, fueled by a weakening US dollar and declining oil prices. The possibility of a US-Iran agreement introduces uncertainty that could further impact the dollar’s strength, while renewed peace talks involving Iran contribute to this effect. The yen is also finding support as it approaches a level that might prompt intervention from Japanese authorities to stabilize the currency. However, concerns raised by the Bank of Japan Governor regarding the potential economic consequences of the Iran conflict, specifically the impact of higher oil prices on Japan’s growth, could offset some of the yen’s gains.

CANADIAN DOLLAR is currently trading at a rate of 1.3737 against the USD as of April 14, 2026, which reflects a slight strengthening compared to the previous day. While the Canadian dollar has depreciated marginally against the USD over the past month, its overall performance in the last year indicates an appreciation, suggesting a trend of relative strength over a longer timeframe.

AUSTRALIAN DOLLAR’s value is likely to be volatile in the short term. Recent gains to a four-week high are tied to optimism surrounding potential US-Iran de-escalation, but the Reserve Bank of Australia’s (RBA) hawkish stance introduces uncertainty. The RBA’s indication that interest rates may need to rise further to combat persistent inflation, particularly if oil prices remain elevated due to Middle East tensions, has increased the probability of a near-term rate hike. Upcoming inflation, labor market, and consumer spending data will be crucial in determining the RBA’s next move and, consequently, the direction of the Australian dollar. The conflicting influences of global geopolitical developments and domestic monetary policy create a complex outlook.

DOW JONES faces a mixed outlook based on recent developments. Optimism surrounding potential de-escalation in the Middle East provides a tailwind, while specific company earnings paint a more complex picture. Disappointing results from key financial institutions like JPMorgan and Wells Fargo, along with a decline in Johnson & Johnson despite positive revenue news, could weigh on the index. Conversely, strong performances from BlackRock and American Airlines, coupled with Novo Nordisk’s positive announcement, offer potential support. The overall impact will likely depend on how investors weigh these competing factors and the broader market sentiment.

FTSE 100 experienced an upward trend driven by optimism surrounding potential US-Iran negotiations, which helped to alleviate concerns about geopolitical tensions. The decline in oil prices also contributed positively to market sentiment. Mining stocks, particularly Fresnillo, Endeavour Mining, Antofagasta, Anglo American, and Glencore, saw significant gains, boosting the index. Travel companies like EasyJet and IAG also performed well. Intertek’s strategic review announcement led to a substantial increase in its share price. However, losses in Imperial Brands, due to market share concerns amid geopolitical instability, and BP’s warning about the impact of Middle East conflict on its first-quarter performance, partially offset the positive factors. These negative factors may weigh down the FTSE 100’s potential gains.

DAX experienced a significant upward movement, exceeding 1% growth and approaching the 24,000 level, effectively recovering from previous declines. Market sentiment was boosted by renewed optimism surrounding potential US-Iran negotiations, even amidst escalating geopolitical tensions related to the Strait of Hormuz. Positive quarterly earnings reports from both US and European companies also contributed to the positive trend. Gains were widespread across all sectors, with particular strength in industrials, financials, technology, and consumer cyclicals. Several prominent companies including Siemens, Siemens Energy, Continental, and Mercedes-Benz Group saw notable increases in their stock value, while only a small number of companies, such as Rheinmetall and Zalando, experienced losses.

NIKKEI is exhibiting positive momentum, driven by increased investor confidence stemming from potential de-escalation in US-Iran tensions, which in turn has softened oil prices and eased inflationary concerns. This development has reduced pressure on central banks to maintain hawkish monetary policies. However, uncertainty remains regarding the Bank of Japan’s upcoming interest rate decision, creating a potential headwind. The technology sector is providing significant upward support to the index, particularly from companies involved in artificial intelligence, suggesting a concentration of gains in that segment of the market.

GOLD is experiencing upward pressure as renewed diplomatic efforts between the US and Iran potentially de-escalate tensions in the Middle East. The prospect of a longer-term ceasefire agreement has lessened concerns about rising oil prices and subsequent inflationary pressures. This, in turn, reduces the likelihood of central banks maintaining or increasing interest rates, making gold a more attractive investment option. However, it is important to note that despite this recent positive movement, gold remains below its pre-conflict value.

OIL faces downward pressure as potential US-Iran talks could ease supply concerns. The possibility of negotiations resuming, even with past failures and a US blockade threat, introduces uncertainty that can temper bullish sentiment. However, substantial risk remains, particularly given damaged infrastructure, restricted traffic in a crucial waterway, and significant output declines. Competing factors, including Saudi Arabia’s call for diplomacy and warnings of declining global demand, contribute to a complex landscape where prices may not fully reflect the current disruptions.

Asset Summary – Monday, 13 April

US DOLLAR is being supported by escalating geopolitical tensions in the Middle East. The failure of US-Iran peace talks and the potential closure of the Strait of Hormuz are driving energy prices upward and increasing inflationary pressures. This situation is leading to speculation that the Federal Reserve may postpone interest rate cuts or potentially raise rates, which strengthens the dollar. Furthermore, the dollar is benefiting from its safe-haven status amid the instability, making it a preferred asset during this period of uncertainty.

BRITISH POUND experienced a slight setback, falling from recent highs as geopolitical tensions escalated. The collapse of US-Iran negotiations and the subsequent threat of a Strait of Hormuz blockade triggered a surge in oil prices, exacerbating global energy concerns. This development has intensified inflationary pressures, leading markets to anticipate a more aggressive monetary policy response from the Bank of England. Consequently, expectations for interest rate hikes have increased, suggesting a potential boost for the pound in the medium term as the central bank combats rising inflation.

EURO experienced a decline, falling from recent highs as hopes for a US-Iran agreement faded and geopolitical tensions escalated. The breakdown in negotiations and threats of military action in the Strait of Hormuz drove oil prices upward, fueling expectations of a more hawkish response from the European Central Bank. Market participants are now anticipating a greater number of interest rate increases by the end of the year, reflecting concerns about inflationary pressures stemming from the rising cost of oil.

JAPANESE YEN faces continued downward pressure as geopolitical tensions in the Middle East drive up oil prices and complicate the Bank of Japan’s monetary policy decisions. The potential for escalating conflict, including a possible blockade and renewed strikes against Iran, exacerbates global energy concerns, hindering the BOJ’s ability to raise interest rates due to fears of stifling economic growth. This policy uncertainty, coupled with conflicting views among BOJ policymakers regarding inflation versus growth risks, weakens the yen. The currency’s proximity to the 160 per dollar level raises the possibility of intervention by Japanese authorities, similar to actions taken previously. The BOJ’s upcoming policy meeting will be crucial in determining the yen’s near-term trajectory, especially as some officials suggest monetary policy could be used to strengthen the currency and curb inflation.

CANADIAN DOLLAR experienced a decline in value, influenced by several factors. A strengthening US dollar created downward pressure, while easing geopolitical tensions reduced demand for safe-haven currencies, further weakening the loonie. Declining oil prices, prompted by hopes for a Middle East ceasefire, also diminished support for the commodity-linked currency. Weaker than anticipated Canadian employment figures added to the negative sentiment, suggesting a potentially softening economy and impacting the currency’s appeal.

AUSTRALIAN DOLLAR faces downward pressure as geopolitical tensions in the Middle East bolster the US dollar and increase global risk aversion. Rising oil prices, spurred by the conflict, fuel inflation concerns, potentially delaying rate cuts by central banks worldwide and creating uncertainty. While the Reserve Bank of Australia has already increased interest rates, further hikes are anticipated, and the market is closely watching upcoming labor data and comments from RBA Deputy Governor Hauser for clues on future monetary policy. The Australian dollar’s prior strength against the New Zealand dollar appears to be waning as the Reserve Bank of New Zealand adopts a more aggressive stance.

DOW JONES is anticipated to decline following a drop in futures trading, reflecting broader market concerns stemming from heightened tensions in the Middle East. Rising oil prices, fueled by the conflict and a potential blockade on Iranian energy, are expected to contribute to stagflation risks, negatively impacting credit-sensitive sectors. Pressure on chip producers and datacenter operators, alongside mixed sentiment towards financial institutions ahead of earnings reports, further suggests a weakened outlook for the index.

FTSE 100 experienced a decline due to escalating Middle East tensions that impacted market sentiment. The breakdown of US-Iran negotiations and subsequent threats heightened uncertainty, causing a general risk-off attitude among investors. Rising oil prices provided some support, benefiting energy giants like BP and Shell, which partially offset the index’s losses. However, travel stocks suffered significantly due to the geopolitical climate, while banking stocks also weakened amidst the prevailing market caution. The performance of energy stocks helped the index outperform its European counterparts, suggesting a degree of resilience despite the overall negative pressure.

DAX is facing downward pressure due to multiple factors. Geopolitical tensions, specifically the collapse of US-Iran peace talks and the US blockade of the Strait of Hormuz, are fueling risk aversion and driving up oil prices, reigniting inflation concerns. This is negatively impacting sectors like banks, consumer cyclicals, technology, and industrials. Specific company issues, such as Lufthansa’s struggles with rising oil prices and pilot strikes, are further contributing to the index’s decline. While Rheinmetall is showing some positive movement, it is not enough to offset the widespread losses across the majority of sectors represented in the DAX. The market is also awaiting the start of the earnings season, which adds to the overall uncertainty.

NIKKEI experienced a downturn, influenced by escalating geopolitical tensions and domestic economic factors. Rising oil prices, triggered by stalled US-Iran negotiations and the potential for military action in the Strait of Hormuz, fueled concerns about a global energy crisis. This, in turn, pushed Japan’s 10-year JGB yield to its highest level in decades, increasing expectations of a near-term interest rate hike by the Bank of Japan. The possibility of the BOJ using monetary policy to combat inflation by strengthening the yen further contributed to market uncertainty. Significant declines in major index components such as Furukawa Electric, Tokyo Electron, Sumitomo Electric, Ibiden Co, and Sony Group indicate broad-based investor apprehension.

GOLD is facing downward pressure as geopolitical tensions in the Middle East escalate. The US blockade of the Strait of Hormuz, prompted by unsuccessful negotiations with Iran, has triggered a surge in energy prices and amplified inflationary pressures. This situation is leading central banks to potentially postpone interest rate cuts or even implement further tightening measures, making interest-bearing assets more attractive and diminishing gold’s appeal as a safe haven. The combination of these factors has resulted in a significant decline in gold’s value since the onset of the conflict.

OIL is experiencing a surge in value, primarily driven by geopolitical tensions in the Middle East. The imposition of a US blockade on the Strait of Hormuz, following failed negotiations with Iran, has significantly disrupted maritime traffic and raised concerns about supply disruptions. This disruption, coupled with Iran’s reported demands during negotiations, has created uncertainty in the market, pushing oil prices upward. Although Saudi Arabia has increased its pumping capacity, the closure of a vital shipping route is a major factor. The situation suggests that inflationary pressures and potential constraints on global economic growth are likely to persist, further supporting the upward trend in oil prices.

Asset Summary – Friday, 10 April

US DOLLAR faces a complex outlook shaped by geopolitical tensions and economic data. Hopes for de-escalation in the Middle East could provide some stability, but the continued closure of the Strait of Hormuz and its impact on oil prices are contributing to inflationary pressures within the US. While the latest CPI data showed a significant increase, core inflation rose at a slower pace, indicating that the full inflationary impact from the oil shock may still be to come. This mixed data is influencing expectations for future Federal Reserve policy, with investors currently perceiving a limited likelihood of interest rate cuts in 2026, though many economists still anticipate potential reductions later this year. This uncertainty surrounding future monetary policy is likely to keep the dollar’s value fluctuating.

BRITISH POUND is experiencing upward pressure, recently reaching its highest level in over a month, buoyed by increased investor confidence stemming from positive developments in both the Russia-Ukraine conflict and the ongoing US-Iran negotiations. The potential for de-escalation in these geopolitical hotspots has strengthened the currency. Furthermore, rising oil prices, and the resulting inflation concerns, are leading to expectations of a more aggressive monetary policy stance from the Bank of England, including projected rate hikes, which is adding further support to the pound’s value.

EURO is gaining value against the US dollar driven by several factors. Hopeful signs of progress in Russia-Ukraine peace negotiations are boosting confidence in the Eurozone’s economic outlook. Concurrently, a cautious approach to US-Iran negotiations is limiting dollar strength. Rising oil prices are fueling expectations of a more aggressive monetary policy stance from the European Central Bank, with markets anticipating multiple rate hikes in the coming years, further supporting the Euro’s appreciation.

JAPANESE YEN faces a complex situation, finding some stability as a US-Iran ceasefire reduces oil price pressures and eases stagflation fears. The upcoming US-Iran talks in Islamabad are being closely watched. However, persistent geopolitical risks, including Israeli strikes in Lebanon and disruptions in the Strait of Hormuz, temper any potential gains. Concerns linger that a prolonged conflict and rising energy costs could negatively impact Japan’s economic growth and fuel inflation, contributing to the yen’s decline since the conflict began. The market anticipates signals from Bank of Japan Governor Kazuo Ueda regarding future policy decisions, particularly ahead of the April 28 meeting.

CANADIAN DOLLAR is gaining value as geopolitical tensions ease, specifically relating to potential disruptions in the Persian Gulf. This de-escalation reduces the urgency for the Bank of Canada to maintain aggressive monetary policies aimed at controlling inflation. While domestic manufacturing data indicates continued contraction, the shift away from the US dollar as a safe-haven asset, driven by ceasefire hopes, is providing support for the Canadian currency. However, the market remains attentive to potential infrastructure actions which could still introduce volatility.

AUSTRALIAN DOLLAR is experiencing upward pressure as global risk sentiment improves due to a ceasefire in the Middle East, weakening the US dollar. Diplomatic talks and energy flow concerns are key factors influencing market sentiment. Domestically, the Reserve Bank of Australia’s aggressive monetary policy, with two rate hikes already this year and expectations of further increases due to persistent inflation, provides additional support for the currency. Market forecasts anticipate further rate hikes, suggesting a potentially stronger Australian Dollar by the end of the year.

DOW JONES is poised for potential gains, continuing an upward trend possibly driven by easing geopolitical concerns regarding Iran and the Strait of Hormuz. Optimism surrounding US-Iran relations, coupled with the prospect of stabilized oil and gas prices, could alleviate inflation concerns that have weighed on the market. Gains in technology and financial sectors ahead of upcoming earnings reports suggest further positive momentum for the index.

FTSE 100 experienced an increase, achieving its highest point since early March, driven by investor optimism surrounding potential US-Iran negotiations and advancements in Ukraine-Russia peace talks. However, contradictory signals from the US regarding a potential deal with Iran, coupled with accusations of Iranian drone attacks and continued blockage of the Strait of Hormuz, introduced elements of uncertainty. Corporate news presented mixed signals, with Unite Group’s reaffirmation of guidance offset by Compass Group’s decline following a poor update from a competitor, creating both upward and downward pressures on the index.

DAX experienced upward movement, buoyed by anticipation surrounding US-Iran negotiations and positive earnings reports from the tech sector, specifically TSMC. Gains in Siemens and Infineon, coupled with a favorable analyst rating for Adidas, further contributed to the positive momentum. However, geopolitical tensions, including reports of drone attacks and ongoing conflict in the Middle East, presented a degree of uncertainty. Rising German inflation, driven by energy costs, added another layer of complexity. Declines in Rheinmetall, RWE, and E.ON partially offset the gains. Overall, the index appeared set to close the week with a substantial gain, suggesting underlying strength despite existing headwinds.

NIKKEI is poised for continued positive momentum, largely fueled by increased risk appetite stemming from a potential US-Iran ceasefire and subsequent diplomatic talks. The index benefited from a global rally in technology and AI stocks, specifically driven by Meta’s significant investment in computing capacity. Domestically, strong performances from key tech shares and Fast Retailing’s boosted profit forecast signal a robust Japanese market, further solidifying a positive outlook, though ongoing geopolitical tensions in the Middle East, particularly concerning Israeli strikes and disruptions in the Strait of Hormuz, may introduce an element of caution.

GOLD is currently experiencing upward pressure, largely driven by a weakening dollar and anticipation surrounding US-Iran talks, contributing to a likely third consecutive week of gains. The expectation of potential US interest rate cuts is also a significant factor, making gold more attractive as a non-yielding asset. However, geopolitical instability, evidenced by renewed tensions in the Middle East and disruptions in key shipping lanes, introduces uncertainty. Furthermore, recent US inflation data showing a higher-than-expected increase could temper expectations of imminent rate cuts, potentially creating headwinds for gold’s continued rise, while mixed physical demand in key markets like India and China adds another layer of complexity to its price movement.

OIL is experiencing a complex interplay of factors influencing its price. While potential diplomatic progress in the Middle East offers a possibility of de-escalation and price relief, significant supply concerns persist. Reduced Saudi Arabian production capacity and pipeline throughput due to recent attacks are offsetting the positive sentiment from potential peace talks. The continued closure of the Strait of Hormuz and potential transit fees imposed by Iran further exacerbate supply anxieties. Overall, the oil market is reacting to a balance of factors, with the possibility of a price decrease tempered by ongoing supply risks.

Asset Summary – Thursday, 9 April

US DOLLAR is experiencing fluctuating value influenced by geopolitical tensions and economic data. The dollar saw a recent increase as uncertainty surrounding the US-Iran ceasefire and disruptions in oil tanker transit prompted cautious investor sentiment. Prior to this, news of a potential ceasefire had weakened the dollar, reflecting a decrease in oil prices and reduced inflation worries. The Federal Reserve’s stance on interest rates, with some members considering a rate hike to combat inflation while others lean towards a cut, further complicates the dollar’s trajectory. Upcoming economic releases, such as personal spending, the PCE deflator, and the CPI report, are now crucial indicators that will likely impact the dollar’s near-term performance.

BRITISH POUND faces a complex environment where geopolitical instability creates both risk and opportunity. The fragile US-Iran ceasefire and escalating regional tensions, particularly involving Israel and Lebanon, generate uncertainty that could negatively impact the pound as investors seek safer havens. However, the anticipation of further interest rate hikes by the Bank of England offers potential support, counteracting some of the downward pressure from international affairs. The overall effect will likely depend on the balance between global risk aversion and confidence in the UK’s monetary policy.

EURO is facing mixed pressures. Geopolitical instability arising from heightened tensions between Israel, Lebanon, and Iran, coupled with the uncertain US presence near Iran and the Strait of Hormuz blockade, are creating a risk-off environment that could weigh on the currency. However, this is being somewhat offset by market expectations that the European Central Bank will likely implement further interest rate hikes in the coming years. This expectation of tighter monetary policy is providing underlying support for the euro, as higher interest rates tend to attract foreign investment and increase demand for the currency.

JAPANESE YEN is exhibiting volatility influenced by geopolitical events and monetary policy speculation. The yen’s recent decline against the dollar reflects a weakening due to renewed concerns about Middle East stability and oil supply disruptions. The yen previously strengthened on ceasefire hopes, demonstrating its sensitivity to such events. Expectations are growing that the Bank of Japan might raise interest rates this month to combat inflation. Market participants are keenly awaiting any hints from the BOJ Governor regarding the upcoming policy decision, as these signals could significantly impact the yen’s trajectory.

CANADIAN DOLLAR is currently experiencing upward pressure, rising to near 1.38 per US dollar. This strengthening is largely attributed to a weakening US dollar, which occurred after a temporary delay in infrastructure strikes and Iran’s agreement to reopen the Strait of Hormuz for a short period, alleviating some energy market concerns. Although lower oil prices usually negatively impact the Canadian dollar, the substantial decline in the US dollar index has outweighed this effect, resulting in an overall gain for the loonie. Despite this positive movement, the Canadian dollar is still performing worse than currencies such as the Australian and British pounds, as it remains more susceptible to fluctuations in the petroleum market. The diminishing appeal of US Treasury yields is also contributing to the reduced strength of the US dollar, while market participants are awaiting key US inflation figures.

AUSTRALIAN DOLLAR is currently trading near a three-week high, buoyed initially by a perceived easing of geopolitical tensions in the Middle East and its subsequent impact on reducing demand for the US dollar. However, the sustainability of these gains is questionable given the fragility of the ceasefire agreement and its incomplete nature. Ongoing inflationary pressures stemming from heightened energy prices as a result of the conflict support expectations for continued tighter monetary policy from global central banks. Domestically, the Reserve Bank of Australia has already raised interest rates significantly, and markets anticipate further increases, although the probability of an immediate hike has slightly decreased, suggesting potential fluctuations in the currency’s value depending on the evolving economic and geopolitical landscape.

DOW JONES is facing potential headwinds as US equity futures indicate a slight decrease, partially offsetting gains from the prior session. The uncertainty surrounding the US-Iran ceasefire, with accusations of violations and threats to maritime traffic, is dampening optimism about lower energy prices. This situation could negatively impact investor confidence. Furthermore, a decline in tech giants pre-market, after a recent surge, adds to the downward pressure. Investors are also closely watching upcoming CPI data, which will reveal the extent of inflationary pressures stemming from elevated energy costs. These factors suggest a cautious outlook for the Dow Jones in the near term.

FTSE 100 faces a mixed outlook, influenced by geopolitical tensions and evolving economic expectations. Uncertainty surrounding the US-Iran ceasefire and rising crude oil prices are creating inflationary pressures, potentially leading to interest rate hikes by the Bank of England. While these factors present headwinds, the index benefits from its composition, with energy giants like BP and Shell gaining from higher oil prices. Furthermore, the appeal of utility stocks, known for their stability during economic uncertainty, provides a degree of resilience, suggesting the FTSE 100 may exhibit relative strength compared to other European markets.

DAX is facing downward pressure as geopolitical instability surrounding the US-Iran ceasefire and escalating tensions in the Middle East trigger uncertainty in the markets. The blockage of the Strait of Hormuz and potential for renewed military action are fueling concerns about energy supply disruptions and weighing heavily on key sectors like industrials, technology, and automotive. Declines in major constituents such as Rheinmetall, SAP, Mercedes-Benz Group, and Siemens Energy further contribute to the negative sentiment. However, gains in chemical and utility stocks, specifically BASF, Brenntag, E.ON and RWE, are providing a slight buffer against steeper losses.

NIKKEI experienced a decline as oil price fluctuations and geopolitical tensions surrounding a potential ceasefire between Iran and the US-Israeli side impacted market sentiment. Discrepancies in the ceasefire agreement and continued disruptions in the Strait of Hormuz contributed to the negative performance. Furthermore, while Fast Retailing demonstrated strength in US and European markets, its stock price decreased slightly. A significant drop in Seven & I Holdings, due to delays in listing its US convenience store unit, also weighed on the overall index. These factors combined to create downward pressure on the index’s value.

GOLD’s price is experiencing volatility driven by geopolitical tensions and macroeconomic factors. The tentative ceasefire in the Middle East, coupled with conflicting reports regarding the Strait of Hormuz, introduces uncertainty that influences investor sentiment. Concerns about disruptions to oil tanker transit through the strait initially supported gold, while subsequent reports suggesting a potential reopening, along with a stronger dollar and higher bond yields, exerted downward pressure. Furthermore, profit-taking after a significant price surge contributed to price fluctuations, highlighting the sensitivity of gold to both risk-on and risk-off market dynamics.

OIL is experiencing upward price pressure due to escalating tensions in the Middle East, particularly renewed Israeli strikes on Lebanon and disruptions in the Strait of Hormuz. The reported suspension of oil tanker traffic through the Strait, a critical chokepoint for global oil and gas flows, is fueling concerns about supply disruptions. These concerns are somewhat tempered by reports suggesting a potential reopening of the Strait following talks between US and Iranian officials, leading to volatility in the market. The near shutdown of the Strait, responsible for a significant portion of the world’s oil transport, has caused major disruption in oil markets.

Asset Summary – Wednesday, 8 April

US DOLLAR experienced a decline, falling to a four-week low, primarily due to a perceived easing of tensions in the Middle East. President Trump’s delay in potential strikes against Iran, coupled with reports of a proposed negotiation framework from Iran, significantly reduced geopolitical risk premiums. This de-escalation led to a decrease in oil prices, alleviating inflationary pressures and diminishing the dollar’s appeal as a safe-haven asset. Furthermore, the anticipation of upcoming US CPI data adds uncertainty, as investors seek to understand the conflict’s impact on domestic prices, contributing to the currency’s broad weakening, particularly against the Australian and British currencies.

BRITISH POUND experienced a significant boost, appreciating to near its highest value since late February, driven by a US-Iran ceasefire agreement. This truce, aimed at de-escalating Middle East tensions, has fostered a risk-on sentiment in the markets. The subsequent drop in oil and gas prices has led investors to reduce expectations for future interest rate hikes by the Bank of England, which could temper further gains for the currency in the long term, as the market now anticipates fewer rate increases than previously projected.

EURO has experienced a surge in value, reaching multi-month highs, primarily driven by a ceasefire agreement between the US and Iran. This development, while easing immediate geopolitical anxieties in the Middle East, has broader implications for the European Central Bank’s (ECB) monetary policy. Reduced oil and gas prices, resulting from the ceasefire, have tempered expectations for aggressive interest rate hikes by the ECB. Market sentiment now leans towards fewer rate increases than previously anticipated, which could potentially limit further appreciation of the currency in the near term.

JAPANESE YEN experienced a notable recovery, strengthening against the dollar. This appreciation followed a period of weakness where it neared a key level, but a reported agreement for a temporary ceasefire between the US, Iran, and Israel spurred renewed confidence. The potential for peace talks, alongside Japan’s diplomatic efforts to ensure stability and energy security, contributed to the yen’s resurgence. Further bolstering the currency were signals from Japanese authorities suggesting intervention to curb yen depreciation, and growing anticipation of a potential interest rate increase by the Bank of Japan in the near future.

CANADIAN DOLLAR is gaining strength against the US dollar, primarily due to easing geopolitical tensions and a resulting shift away from safe-haven assets. A potential ceasefire agreement has diminished concerns about an energy-driven inflation surge, reducing pressure on the Bank of Canada to maintain an aggressively restrictive monetary policy. While domestic manufacturing data remains weak, the de-escalation of international conflict is currently having a greater impact than US economic data, although looming deadlines regarding infrastructure strikes could introduce renewed volatility.

AUSTRALIAN DOLLAR is showing strength as tensions ease between the US and Iran. The temporary suspension of military operations and potential for broader negotiations have weakened the US dollar and improved global risk sentiment, benefiting the Australian currency. With a ceasefire in place, pressure may ease on the Reserve Bank of Australia to aggressively tighten monetary policy, as previously anticipated due to concerns about elevated energy prices stemming from potential disruptions to the Strait of Hormuz. However, it is important to note that supply conditions may not normalize immediately, even with a lasting agreement, which could limit the Australian dollar’s upside potential.

DOW JONES is poised for significant gains following an agreement for a ceasefire between the US and Iran, which has calmed market anxieties surrounding potential large-scale conflict and energy price spikes. This improved risk sentiment is expected to drive investment into the market, pushing the index higher. The positive developments are also anticipated to ease concerns about energy-driven inflation, further bolstering the appeal of equities. Increased investment in speculative technology stocks and airlines, spurred by the improved outlook, should also contribute to the index’s upward trajectory.

FTSE 100 experienced a significant boost, driven by de-escalation hopes in the Middle East following a US-Iran ceasefire agreement. This agreement spurred a risk-on sentiment, benefiting a wide range of sectors within the index. While lower oil prices negatively impacted energy giants like BP and Shell, the broader market rallied, with notable gains in mining companies such as Antofagasta, Fresnillo, Anglo American and EasyJet. Financial institutions and pharmaceutical companies also contributed to the overall positive performance, indicating a generally optimistic outlook for the index in the short term.

DAX experienced a significant surge, climbing over 5% to reach a one-month high near 24,100, primarily fueled by positive geopolitical developments. The agreement for a ceasefire between the US and Iran, coupled with Israel’s agreement to halt airstrikes and assurances regarding the Strait of Hormuz, have instilled confidence in the market. This optimism, especially surrounding the potential resumption of oil and gas flows, triggered a broad rally across most sectors, with notable gains in energy-sensitive stocks such as Siemens Energy and Lufthansa, suggesting a positive outlook for the index’s near-term performance. The financial sector, represented by Commerzbank and Deutsche Bank, also contributed strongly to the upward momentum.

NIKKEI experienced a significant boost, with both the Nikkei 225 and Topix indexes reaching over one-month highs. This surge appears to be fueled by increased risk appetite following reports of a potential ceasefire agreement between the US, Iran, and Israel, which could de-escalate tensions in the Middle East. Optimism around peace negotiations and Japan’s efforts to secure its energy supplies, combined with strong performance in tech stocks and rallies in power companies, banks, and carmakers, are all contributing factors. The gains in specific tech companies like Kioxia Holdings, Advantest, and SoftBank Group further underscore the positive market sentiment.

GOLD experienced a significant price surge as geopolitical tensions eased following a ceasefire agreement between the US and Iran, calming fears of energy-related inflation. The agreement led to lower energy prices and shifted expectations regarding future interest rate policy, with the market now anticipating the Federal Reserve will likely hold rates steady. This change in interest rate outlook is particularly supportive for gold, as its attractiveness diminishes when interest rates are high. Despite this recent upward movement, gold has still faced a net decrease in value since the onset of the Iran war, highlighting the impact of geopolitical events and broader economic factors on its price.

OIL experienced a significant drop, falling below $95 per barrel, as geopolitical tensions eased with the potential for a ceasefire between the US and Iran. President Trump’s delay in threatened attacks and a proposed negotiation framework from Iran have reduced the risk premium embedded in oil prices. The agreement for Iran to potentially reopen the Strait of Hormuz, a critical oil transit route, alleviates concerns about supply disruptions that had previously contributed to price volatility. The market is responding positively to the possibility of de-escalation, suggesting that a sustained period of lower prices could materialize if negotiations progress and the Strait remains open.

Asset Summary – Tuesday, 7 April

US DOLLAR is facing uncertainty amid geopolitical tensions in the Middle East, specifically related to Iran, which could induce volatility. Threats of potential US action against Iranian infrastructure and the deadline imposed by President Trump are creating a risk-off environment that might impact the dollar’s value. Furthermore, high oil prices, fueled by these tensions, are raising concerns about inflation, adding another layer of complexity. Investors are closely monitoring the upcoming US CPI data for March to gauge inflationary pressures, while expectations remain that the Federal Reserve will hold steady on interest rates for the foreseeable future, which might limit potential upside for the currency.

BRITISH POUND is exhibiting stability near the $1.32 mark as investors are hesitant to make significant moves pending the outcome of the US-Iran situation. Heightened geopolitical tensions stemming from the US ultimatum regarding the Strait of Hormuz and Iran’s LNG tanker blockade are creating uncertainty. The potential for US military action against Iran is a significant risk factor. Simultaneously, rising energy prices, fueled by the blockade, are solidifying market expectations for the Bank of England to implement two interest rate increases this year, providing some underlying support for the currency.

EURO is facing a complex situation with potential support and downward pressure. The escalating conflict in the Middle East, particularly Iran’s actions regarding the Strait of Hormuz, is driving up energy prices and fueling expectations for the European Central Bank (ECB) to tighten monetary policy aggressively. The market is pricing in multiple interest rate hikes, possibly starting soon, in response to the energy crisis. This prospect of higher interest rates tends to strengthen the euro. However, the geopolitical instability caused by the conflict itself and the potential for devastating US strikes introduce uncertainty that could weigh on investor sentiment and offset some of the positive effects from anticipated rate hikes. Therefore, the euro’s stability will likely depend on how the Middle East situation unfolds and the ECB’s reaction.

JAPANESE YEN is facing downward pressure as it approaches levels not seen since July 2024, largely due to a strengthening US dollar and rising oil prices fueled by geopolitical tensions in the Middle East. The possibility of US military action against Iran is further exacerbating the situation. While Prime Minister Takaichi is pursuing diplomatic solutions, the yen’s weakness persists. Market expectations of a potential interest rate hike by the Bank of Japan this month, driven by increasing inflation, offer a glimmer of potential support for the currency, but its impact remains to be seen against the backdrop of global uncertainties.

CANADIAN DOLLAR is gaining value as geopolitical tensions ease between the US and Iran, lessening fears of a major energy supply disruption. The reduced pressure on the Bank of Canada to maintain aggressive monetary policy, despite a contracting manufacturing sector, has also contributed to the loonie’s stability. While stronger-than-expected US job growth typically favors the US dollar, the current de-escalation in international tensions is outweighing that effect, leading investors to move away from the safe-haven greenback and towards riskier assets like the Canadian dollar. However, the market remains cautious due to potential infrastructure-related deadlines set by President Trump, which could introduce renewed uncertainty.

AUSTRALIAN DOLLAR is facing downward pressure, trading near two-month lows as geopolitical tensions surrounding the Strait of Hormuz bolster demand for the US dollar as a safe haven asset. The looming deadline set by the US regarding the Strait of Hormuz is creating uncertainty and risk aversion, benefiting the US dollar at the expense of the Australian dollar. Adding to the currency’s woes, recent domestic data reveals a contraction in Australia’s private sector activity, further weakening its appeal. The combination of global uncertainty and weakening domestic economic indicators suggests a fragile outlook for the Australian dollar.

DOW JONES faces downward pressure due to heightened geopolitical tensions and their chilling effect on global markets. The anticipation of potential conflict escalation, particularly involving Iran, has caused investors to reduce their exposure to equities. Furthermore, weakness in the technology sector, a significant component of the Dow, is contributing to the negative outlook, as major tech stocks are experiencing pre-market declines. While Broadcom’s positive news provides a slight counterweight, the overall risk-averse sentiment is likely to weigh on the index.

FTSE 100 experienced minimal movement, reflecting market uncertainty driven by geopolitical tensions surrounding Iran. Rising oil prices provided a boost to energy companies listed on the index, while losses in pharmaceuticals, banking, precious metal mining, and travel sectors counteracted these gains. Overall, the index’s performance suggests a cautious market stance, influenced by international political risks.

DAX is facing significant volatility due to geopolitical tensions in the Middle East, specifically involving the US and Iran. The uncertainty surrounding potential military actions and failed ceasefire negotiations is weighing heavily on investor sentiment, leading to a risk-off environment. Industrials and consumer cyclical stocks are experiencing notable declines, suggesting concerns about the potential impact of the conflict on economic activity and supply chains. However, some sectors like chemicals and media are showing resilience. Individual stock performances reflect this uncertainty, with companies like Heidelberg Materials and Rheinmetall experiencing losses, while BASF and Fresenius Medical Care are seeing gains, indicating a flight to safety in certain sectors. Overall, the DAX’s performance is heavily influenced by the evolving geopolitical landscape and the associated risks.

NIKKEI’s performance is currently being influenced by both international geopolitical tensions and domestic political maneuvers. While technology and financial stocks are providing upward momentum, the looming deadline regarding Iran and the Strait of Hormuz introduces significant uncertainty. Prime Minister Takaichi’s planned talks with both Iranian and US leaders suggest an attempt to mediate, potentially mitigating the negative impact of escalating conflict, but the success of these efforts remains to be seen. The market’s reaction to these developments will likely depend on the perceived probability of a resolution and the potential economic consequences of further instability in the region.

GOLD is experiencing a tug-of-war between opposing forces. Geopolitical tensions stemming from the US-Iran conflict are creating uncertainty, influencing its price movements. The potential for military action and Iran’s threats of retaliation are contributing to market volatility. The strengthened US dollar and decreased expectations of Federal Reserve rate cuts are diminishing gold’s attractiveness. However, offsetting these negative factors is China’s significant gold purchase, which could provide a boost to investor confidence and support prices. Overall, its future appears highly dependent on the outcome of the US-Iran situation and the continued actions of major players like China.

OIL is experiencing price volatility and is trading near its 2022 peak, primarily driven by geopolitical tensions involving Iran and the United States. The potential for military action against Iranian infrastructure, coupled with the ongoing conflict disrupting global crude supply, is creating significant market uncertainty. Threats to the Strait of Hormuz, a critical oil transit route, alongside reported attacks on key oil infrastructure such as Kharg Island, are likely to further exacerbate supply concerns and could lead to upward price pressure.

Asset Summary – Monday, 6 April

US DOLLAR experienced a decline as market participants responded favorably to news suggesting a potential ceasefire in the Middle East, which eased concerns about geopolitical risks. This development, coupled with reports of increased shipping activity through a crucial waterway, alleviated pressure on oil prices and provided temporary support. Simultaneously, the market is anticipating upcoming economic data releases, such as the CPI report and FOMC minutes, to gain a clearer understanding of the economic outlook. The expectation that the Federal Reserve will maintain current interest rates throughout the year is also influencing investor sentiment.

BRITISH POUND faces downward pressure as geopolitical tensions surrounding Iran and rising oil prices create market uncertainty. The strength of the US dollar, bolstered by positive US employment data and diminishing expectations of Federal Reserve interest rate cuts, further weakens the pound. While reports of potential truce negotiations offer a glimmer of hope, persistently high crude prices stoke inflation fears, influencing investors to anticipate a tightening monetary policy stance from the Bank of England, with markets now pricing in rate hikes rather than cuts, despite the Governor’s cautionary remarks.

EURO is facing a complex environment, with its value currently stable but potentially vulnerable to shifts in geopolitical tensions and monetary policy expectations. The conflict involving Iran and the associated surge in oil prices are creating inflationary pressures that are influencing investor sentiment regarding central bank actions. While stronger US jobs data is reducing the likelihood of Federal Reserve rate cuts, the market is pricing in multiple rate hikes by the European Central Bank in the coming years, diverging significantly from previous expectations. Any de-escalation of the Iran conflict, particularly regarding the Strait of Hormuz, could ease inflationary concerns and impact the anticipated path of European interest rates, while further escalation could reinforce the current trends.

JAPANESE YEN faces downward pressure as geopolitical tensions in the Middle East, specifically the Iran conflict and rising energy prices, negatively impact its value against the dollar, nearing levels not seen since July 2024. While markets anticipate a potential Bank of Japan rate hike this month and further increases by year-end, alongside IMF recommendations for gradual rate increases to combat inflation, these factors are currently overshadowed by the external pressures. Traders should also be vigilant for possible intervention from Tokyo to support the currency, given recent strong warnings from Japanese officials.

CANADIAN DOLLAR is facing downward pressure as geopolitical tensions in the Middle East and rising crude prices fuel inflation concerns, strengthening the US dollar and causing the loonie to trade near its lowest levels in over a year. The Bank of Canada’s decision to maintain its current interest rate adds to this pressure, while market expectations of future rate hikes offer limited support against the backdrop of global uncertainty and a recent significant monthly decline.

AUSTRALIAN DOLLAR is facing mixed pressures. Geopolitical tensions in the Middle East, particularly surrounding the Strait of Hormuz, are creating uncertainty and potentially limiting gains, especially if the shipping route remains constrained. Any de-escalation, however, could provide some relief. Domestically, the prospect of further interest rate hikes by the Reserve Bank of Australia is offering support, with markets anticipating potential increases that could push the cash rate to levels not seen since 2008. The anticipation of these hikes, driven by persistent inflation and a tight labor market, is likely to bolster the currency’s value in the medium term, although the ultimate impact will depend on the RBA’s actual policy decisions and the evolution of global risk sentiment.

DOW JONES faces a mixed outlook amid geopolitical and economic uncertainties. Concerns regarding the conflict involving Iran and its potential impact on energy prices are driving risk aversion, potentially limiting gains. Upward pressure on inflation, exacerbated by both the war’s supply shocks and a robust jobs report increasing the likelihood of continued interest rate hikes, could further weigh on the index. While weakness in financial stocks, stemming from concerns in the private credit sector, presents a headwind, gains in tech companies offer some potential offset. The net effect suggests potential volatility and a lack of clear directional momentum.

FTSE 100 experienced upward momentum driven primarily by rising oil prices, which benefited major oil companies listed on the index. Gains were also observed in pharmaceutical and consumer-related stocks. Geopolitical factors, specifically developments concerning Iran and the Middle East, contributed to investor caution, although they did not outweigh the positive impact of rising oil. The banking sector experienced a slight decline, potentially reflecting broader economic uncertainty. The upcoming market closure for the Easter holiday suggests a pause in trading activity, allowing the market to digest the week’s events.

DAX experienced a decline of approximately 0.6% closing at 23,168, influenced by geopolitical tensions and sector-specific pressures. Heightened oil prices resulting from President Trump’s statements and the upcoming deadline regarding the Strait of Hormuz are injecting uncertainty. Losses were concentrated in technology, financials, and industrials, with notable declines in Deutsche Telekom due to ex-dividend trading, and further drops in Infineon, Heidelberg Materials, Siemens, Deutsche Bank, and Commerzbank. Despite the day’s losses, the index recorded a weekly gain of about 3.9%. Trading will be paused for the Easter holiday, which may affect market sentiment upon reopening.

NIKKEI is demonstrating positive movement driven by increasing investor confidence linked to potential de-escalation of Middle East tensions. The possibility of a ceasefire agreement between the US and Iran is particularly impactful, given Japan’s vulnerability to oil supply disruptions stemming from the region. Strong performance in key technology stocks such as Kioxia Holdings, Furukawa Electric, Lasertec, Advantest, and Disco Corp further contributed to the index’s upward trajectory.

GOLD is facing downward pressure as potential ceasefire negotiations in the Middle East reduce its safe-haven appeal. While tensions remain high with threats from both sides, the possibility of de-escalation is weighing on gold prices. Furthermore, high energy prices stemming from the conflict are contributing to inflation, bolstering expectations of interest rate hikes. These anticipated rate increases are further diminishing gold’s attractiveness. The metal is also experiencing selling pressure as investors liquidate gold holdings to cover losses elsewhere, impacting its performance as a safe-haven asset.

OIL is experiencing volatility influenced by geopolitical factors. Potential ceasefire negotiations in the Middle East are creating downward pressure on prices, as a truce could alleviate supply concerns. However, this is counteracted by tensions surrounding the Strait of Hormuz, with threats and closures potentially limiting supply and driving prices upward. OPEC+’s acknowledgement of potential long-term damage to energy infrastructure further complicates the supply outlook, while adjustments to output quotas and exemptions for certain countries add additional layers of complexity to the market. The net effect is uncertainty and price swings, making oil trading particularly sensitive to news and developments in these ongoing situations.

Asset Summary – Friday, 3 April

US DOLLAR is experiencing upward pressure as stronger than anticipated US jobs data bolsters the likelihood of the Federal Reserve maintaining elevated interest rates. The unexpectedly robust nonfarm payrolls and declining unemployment rate signal a resilient labor market despite the emergence of geopolitical tensions related to the Iran conflict. These tensions, along with rising energy prices, contribute to inflation concerns, further supporting a cautious market sentiment. However, trading volume may be limited in the short term due to the Good Friday holiday.

BRITISH POUND is facing downward pressure as geopolitical tensions in the Middle East escalate, triggering risk aversion among investors. The absence of a clear resolution to the conflict and threats of further action by the US are contributing to the pound’s decline. Adding to the uncertainty, the market’s expectations for interest rate hikes by the Bank of England are being scaled back. Despite earlier anticipation, investors now foresee only two rate increases in 2026, a significant shift that reflects concerns about inflationary pressures and the overall economic outlook, further weakening the currency’s appeal.

EURO’s value is under pressure as renewed geopolitical uncertainty stemming from the Middle East conflict fuels investor anxiety. President Trump’s address, lacking a concrete resolution timeline and hinting at escalated actions, has failed to reassure markets. This unease, coupled with rising inflation concerns, is prompting a reassessment of the European Central Bank’s future monetary policy. The shift in expectations towards more aggressive interest rate hikes in 2026, compared to pre-conflict forecasts, reflects a growing anticipation of tighter monetary conditions in response to the economic climate. This adjustment signals a potentially less dovish stance from the ECB, which could impact the euro’s valuation as markets react to these evolving expectations.

JAPANESE YEN is facing downward pressure as it approaches the 160-per-dollar level, primarily due to uncertainty surrounding the Bank of Japan’s (BOJ) upcoming policy decisions. The BOJ’s ambiguous signaling regarding a potential rate hike this month is causing market anxiety, especially given the governor’s historical tendency to act contrary to market expectations. The probability of a rate increase is priced in, but a hold could negatively impact markets. Furthermore, concerns about heightened speculation in currency and crude oil markets, coupled with geopolitical tensions involving the US and Iran, contribute to the Yen’s volatility. Despite these pressures, the Yen is still positioned to record a weekly gain, indicating some underlying resilience.

CANADIAN DOLLAR is facing downward pressure, currently trading near multi-month lows against the USD as geopolitical tensions in the Middle East and rising crude oil prices are driving inflation concerns and strengthening the US dollar. A significant monthly decline indicates recent weakness, and while the Bank of Canada is holding interest rates steady, market expectations point towards potential tightening later in the year. The impact of ongoing global conflicts remains a key factor influencing the currency’s future performance.

AUSTRALIAN DOLLAR is experiencing mixed signals that contribute to its current stability but suggest potential future volatility. On one hand, hopes for de-escalation in the Middle East, particularly concerning the Strait of Hormuz, provide a degree of support. However, the ambiguity surrounding the conflict’s resolution and potential toll impositions on shipping routes introduce uncertainty. Domestically, rising energy costs in Australia are expected to fuel inflation, potentially leading to revised economic forecasts and increased interest rate hikes, all of which could impact the currency’s strength as stagflation risks intensify.

DOW JONES futures experienced a slight dip, mirroring declines in other major US stock indexes, as markets were closed for the Easter holiday. Despite this short-term pressure, the index demonstrated considerable upward movement over the past week, gaining nearly 3%. The latest jobs report, indicating robust job creation alongside a lower unemployment rate, has solidified expectations that the Federal Reserve will maintain current interest rates, which could limit gains. Geopolitical tensions in the Middle East, particularly involving the US and Iran, also introduce a degree of uncertainty that could weigh on investor sentiment, potentially tempering future growth.

FTSE 100 experienced a positive trading day, driven by rising oil prices that significantly boosted the performance of major oil companies. Gains were also seen in pharmaceutical and consumer-related stocks, indicating broad market optimism. However, concerns regarding the Middle East situation and its potential impact on global stability kept some investors on edge. The banking sector experienced a slight decline, possibly due to prevailing risk aversion towards financial institutions. The upcoming market closure for the Easter holiday will pause trading activity, potentially leading to repositioning when markets reopen.

DAX experienced a decline, influenced by geopolitical tensions in the Middle East and individual stock performance. Concerns surrounding potential disruptions in the Strait of Hormuz, coupled with President Trump’s statements on Iran, created uncertainty. Specific sectors such as technology, financials, and industrials faced significant selling pressure. Deutsche Telekom’s ex-dividend trading impacted its share price, contributing to the overall downward trend. Despite these losses, the index recorded a substantial weekly gain, however, the upcoming holiday closure could lead to reduced trading volume and potentially amplified market reactions upon reopening.

NIKKEI experienced a boost driven by positive developments in the Middle East and growing enthusiasm surrounding artificial intelligence. Efforts to stabilize oil shipments through the Strait of Hormuz, following disruptions caused by the conflict in Iran, helped ease concerns about energy prices in Japan, a major importer. This, in turn, supported the overall equity market. Furthermore, anticipation of strong corporate earnings, fueled by expectations of AI-driven growth, added to the positive sentiment. Significant gains in AI-related stocks, particularly following Microsoft’s substantial investment in Japan, indicate strong investor confidence in the sector’s potential impact on the Japanese economy and corporate performance.

GOLD experienced a significant decline, primarily driven by a strengthening US dollar and rising oil prices in the wake of escalating tensions between the US and Iran. President Trump’s hawkish rhetoric regarding the ongoing conflict fueled concerns about inflation and anticipated interest rate hikes, further bolstering the dollar’s appeal as a safe-haven asset. This, in turn, negatively impacted gold, a dollar-denominated commodity, resulting in a considerable price drop. The unresolved conflict and continued uncertainty surrounding the Strait of Hormuz contribute to the bearish outlook for gold.

OIL is experiencing significant upward pressure due to escalating geopolitical tensions in the Persian Gulf. Threats of increased military action by the US against Iran, coupled with retaliatory rhetoric from Tehran, are fueling concerns about potential supply disruptions. While there were brief periods of optimism regarding normalized supplies due to reported coordination between Oman and Iran, these hopes were quickly dashed. The surge in both WTI and Brent benchmarks reflects the market’s apprehension, despite efforts from the UK to secure shipping routes and potential OPEC+ output increases, as these measures are unlikely to provide immediate relief to supply constraints. The overall effect is a heightened risk premium and a strong bullish sentiment for oil prices.