Home›Forex›Major Pairs›Markets steady as US-Iran escalation fails to extend o…

Markets steady as US-Iran escalation fails to extend oil gains

Brent briefly traded above $90 a barrel after the weekend escalation, but slipped back below that level as investors looked to continuing diplomatic channels and monitored upcoming New Zealand CPI data.

Reported · Written up by our desk · Major Pairs

Financial markets showed resilience on Monday despite another escalation in the US-Iran conflict over the weekend, with Brent crude briefly rising above $90 after a higher open but retreating back below $90 during the European session.

According to Action Forex, the pullback in oil helped keep sentiment supported, while European equities traded mixed and US index futures pointed to a firmer Wall Street open. The outlet also cited reassurance that diplomatic channels remain open, after an Iranian Foreign Ministry spokesman said talks with the US could proceed if they align with Iran’s national interests, with intermediaries continuing to exchange messages.

Action Forex noted that the US completed its ninth consecutive day of strikes on Iran overnight, but investors appeared to view the conflict as more likely to be contained than to expand into a wider regional war that would require a much larger US military commitment.

In currency trading, the Australian Dollar led gains, followed by the New Zealand Dollar and the US Dollar, while the Swiss Franc underperformed, suggesting no classic flight to safety. The focus later shifts to New Zealand’s second-quarter CPI report, with headline inflation expected to rise to 4.1% year-on-year from 3.1%, above the Reserve Bank of New Zealand’s 3.9% projection.

Latest closeWTI crude $79.00 ▼0.8%|Brent $84.94 ▼0.0%

More like this

Sources