Wizz Air Holdings (WIZZ) Gets a Hold from Deutsche Bank

Oil jumps to 5-month high after Iran votes to close Strait of Hormuz

Yahoo

3 hours ago

Yahoo

Oil jumps to 5-month high after Iran votes to close Strait of Hormuz

Oil prices surged to a five-month high on Monday after Iran signalled it may close the strategically critical Strait of Hormuz in retaliation for US strikes on its nuclear facilities. Brent crude rose 0.8% to $77.62 a barrel, while West Texas Intermediate climbed by the same margin to $74.42 in early trading. Prices spiked as high as $81 over the weekend before settling down. Tensions escalated after Iran's parliament on Sunday approved a motion to block the narrow waterway, through which roughly 20% of global oil and gas supplies pass. The final decision rests with the Supreme National Security Council, according to Iranian state media. At its narrowest, the Strait of Hormuz measures just 21 miles wide and is one of the most important transit routes for global energy. Any disruption would have ramifications for supply and pricing. Deutsche Bank analysts warned that oil could surge to $120 a barrel if Iran follows through on the threat. 'The next steps for markets,' said Jim Reid, 'are really all about whether the Iranian regime weaponises oil.' Read more: Economics Nobel laureate calls for a 'working-class liberalism' Reid added that crude had been trading around $68 a barrel before concerns emerged over possible Israeli strikes on Iran. 'Around a third probability puts oil at around $85/bbl,' he said. 'So perhaps financial markets are pricing in a lower probability of a closure.' Polymarket showed the odds of a Strait closure before July had climbed to 32%, up from 10% on Friday. The probability had peaked at 52% on Sunday afternoon, shortly after the Iranian parliament endorsed the move. Gold prices dipped in early European trading as safe haven buyers moved into the dollar following US airstrikes on Iranian nuclear facilities, a sharp escalation in the Middle East that rattled global markets. Gold futures were down 0.5% at $3,369.70 an ounce at the time of writing, while the spot gold price fell 0.3% to $3,357.03 per ounce. The pullback in bullion came largely as a result of dollar strength. The US dollar index ( which tracks the greenback against a basket of six currencies, rose 0.3% to 99.03. Rising fears of Iranian retaliation helped push oil prices higher, stoking concerns that renewed energy shocks could fuel inflation and prolong the current high interest rate environment. The dollar gained on the back of these expectations, building on modest gains made last week after the Federal Reserve maintained a cautious stance on rate cuts. Read more: How to avoid finance scams on social media Despite short-term pressure, analysts at Bank of America said they expect gold to rise significantly in the coming months, forecasting prices could hit $4,000 an ounce, roughly 18% above current levels, by mid-2026. 'While the war between Israel and Iran can always escalate, conflicts are not usually a sustained bullish price driver,' they wrote. 'As such, the trajectory of the US budget negotiations will be critical, and if fiscal shortfalls don't decline, the fallout from that plus market volatility may end up attracting more buyers.' The pound was lower against the dollar, trading at $1.3441 at the time of writing, as surging oil prices provided a tailwind for the greenback. Oil, priced in US dollars, tends to increase demand for the currency when prices rise as the US remains the world's largest oil producer, positioning its economy to benefit from higher export values. 'The US dollar's strength is driven not just by oil, but by its position as the dominant currency in global trade,' said Humphrey Percy, an analyst at SGM Foreign Exchange. 'The demand for dollars tends to surge when oil prices rise, especially given the US' status as the world's top oil producer.' Additionally, the US dollar continues to serve as a safe-haven asset in times of geopolitical uncertainty. Investors often flock to the greenback during market turbulence, particularly when risks are heightened, as in the case of ongoing tensions in the Middle East. Stocks: Create your watchlist and portfolio 'For the twin prime reasons of ultra-high geopolitical uncertainty, and the lack of a credible alternative given that the US dollar accounts for 88% of one side of all currency transactions globally, USD remains a currency to buy rather than sell, at least for the next six months,' Percy explained. This combination of rising oil prices and geopolitical tensions has exerted downward pressure on the pound. In other currency moves, the pound was higher against the euro, up 0.1% to €1.1681 at the time of writing. In equities, the UK's FTSE 100 (^FTSE) lost 0.2% to 8,762 points at the time of in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Treasury yields inch higher after U.S. bombs Iran

CNBC

4 hours ago

CNBC

Treasury yields inch higher after U.S. bombs Iran

U.S. Treasury yields inched higher on Monday after the U.S. bombing of Iran and as investors awaited a batch of key economic data this week. At 5:25 a.m. ET, the 10-year yield was more than 1 basis point higher at 4.387%, and the 30-year yield moved over 1 basis point higher to 4.903%. The 2-year yield also added 1 basis point to reach 3.918%. One basis point is equal to 0.01%, and yields and prices move in opposite directions. Investors are on high alert after the U.S. entered the war between Israel and Iran on Saturday by attacking Iranian nuclear sites in Fordo, Natanz and Isfahan. "There will be either peace, or there will be tragedy for Iran far greater than we have witnessed over the last eight days. Remember, there are many targets left," Trump said from the White House after the strikes. Investors, who were formerly expecting diplomacy, are now bracing for Iran's retaliation. That could include targeting U.S. personnel in nearby bases or closing the Strait of Hormuz, which would disrupt global oil flows. Iran's Foreign Minister Abbas Araghchi said on social media that the U.S. attacks would have "everlasting consequences," and that "every member of the United Nations must be alarmed over this extremely dangerous, lawless and criminal behavior." Deutsche Bank analysts said in a note, "In terms of the economic impact, the US has turned into a net energy exporter in the last few years so any negative impact would be through deteriorating financial conditions or through higher for longer rates as the Fed have another reason to delay cuts." Investors will also await a series of economic data this week, including existing home sales data for May on Monday, gross domestic product growth rate on Thursday, and the personal consumption expenditures index on Friday.

Yahoo

4 hours ago

Yahoo

Oil jumps to 5-month high after Iran votes to close Strait of Hormuz

Oil prices surged to a five-month high on Monday after Iran signalled it may close the strategically critical Strait of Hormuz in retaliation for US strikes on its nuclear facilities. Brent crude rose 0.8% to $77.62 a barrel, while West Texas Intermediate climbed by the same margin to $74.42 in early trading. Prices spiked as high as $81 over the weekend before settling down. Tensions escalated after Iran's parliament on Sunday approved a motion to block the narrow waterway, through which roughly 20% of global oil and gas supplies pass. The final decision rests with the Supreme National Security Council, according to Iranian state media. At its narrowest, the Strait of Hormuz measures just 21 miles wide and is one of the most important transit routes for global energy. Any disruption would have ramifications for supply and pricing. Deutsche Bank analysts warned that oil could surge to $120 a barrel if Iran follows through on the threat. 'The next steps for markets,' said Jim Reid, 'are really all about whether the Iranian regime weaponises oil.' Read more: Economics Nobel laureate calls for a 'working-class liberalism' Reid added that crude had been trading around $68 a barrel before concerns emerged over possible Israeli strikes on Iran. 'Around a third probability puts oil at around $85/bbl,' he said. 'So perhaps financial markets are pricing in a lower probability of a closure.' Polymarket showed the odds of a Strait closure before July had climbed to 32%, up from 10% on Friday. The probability had peaked at 52% on Sunday afternoon, shortly after the Iranian parliament endorsed the move. Gold prices dipped in early European trading as safe haven buyers moved into the dollar following US airstrikes on Iranian nuclear facilities, a sharp escalation in the Middle East that rattled global markets. Gold futures were down 0.5% at $3,369.70 an ounce at the time of writing, while the spot gold price fell 0.3% to $3,357.03 per ounce. The pullback in bullion came largely as a result of dollar strength. The US dollar index ( which tracks the greenback against a basket of six currencies, rose 0.3% to 99.03. Rising fears of Iranian retaliation helped push oil prices higher, stoking concerns that renewed energy shocks could fuel inflation and prolong the current high interest rate environment. The dollar gained on the back of these expectations, building on modest gains made last week after the Federal Reserve maintained a cautious stance on rate cuts. Read more: How to avoid finance scams on social media Despite short-term pressure, analysts at Bank of America said they expect gold to rise significantly in the coming months, forecasting prices could hit $4,000 an ounce, roughly 18% above current levels, by mid-2026. 'While the war between Israel and Iran can always escalate, conflicts are not usually a sustained bullish price driver,' they wrote. 'As such, the trajectory of the US budget negotiations will be critical, and if fiscal shortfalls don't decline, the fallout from that plus market volatility may end up attracting more buyers.' The pound was lower against the dollar, trading at $1.3441 at the time of writing, as surging oil prices provided a tailwind for the greenback. Oil, priced in US dollars, tends to increase demand for the currency when prices rise as the US remains the world's largest oil producer, positioning its economy to benefit from higher export values. 'The US dollar's strength is driven not just by oil, but by its position as the dominant currency in global trade,' said Humphrey Percy, an analyst at SGM Foreign Exchange. 'The demand for dollars tends to surge when oil prices rise, especially given the US' status as the world's top oil producer.' Additionally, the US dollar continues to serve as a safe-haven asset in times of geopolitical uncertainty. Investors often flock to the greenback during market turbulence, particularly when risks are heightened, as in the case of ongoing tensions in the Middle East. Stocks: Create your watchlist and portfolio 'For the twin prime reasons of ultra-high geopolitical uncertainty, and the lack of a credible alternative given that the US dollar accounts for 88% of one side of all currency transactions globally, USD remains a currency to buy rather than sell, at least for the next six months,' Percy explained. This combination of rising oil prices and geopolitical tensions has exerted downward pressure on the pound. In other currency moves, the pound was higher against the euro, up 0.1% to €1.1681 at the time of writing. In equities, the UK's FTSE 100 (^FTSE) lost 0.2% to 8,762 points at the time of in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Wizz Air Holdings (WIZZ) Gets a Hold from Deutsche Bank

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Oil jumps to 5-month high after Iran votes to close Strait of Hormuz

Treasury yields inch higher after U.S. bombs Iran

Oil jumps to 5-month high after Iran votes to close Strait of Hormuz

Wizz Air Holdings (WIZZ) Gets a Hold from Deutsche Bank

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Oil jumps to 5-month high after Iran votes to close Strait of Hormuz

Treasury yields inch higher after U.S. bombs Iran

Oil jumps to 5-month high after Iran votes to close Strait of Hormuz

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