The dollar has seen gains ease while US futures have swung back into positive territory now. The latest reported rumour comes from Al Arabiya, in citing their sources to say that incumbent Iran leader Mojtaba Khamenei has agreed to negotiate with the US on an agreement. So, that’s putting a little bit more of a positive spin on the mood currently.
S&P 500 futures have turned losses to flat, with gradual gains even before the headline. Meanwhile, the dollar has lost some ground with EUR/USD climbing back to 1.1600 on the day. Meanwhile, gold has also trimmed declines to be flat at $4,403 and silver is now up 0.4% to $69.45 from lows near $66 at the end of Asia trading.
In the oil market, we’re still seeing WTI crude be up over 2% to $90.81 and Brent crude also keeping near 3% gains at $102.83 on the day.
There’s still much to play for and we won’t get much clarity until we officially hear from Iran mostly.
But as mentioned earlier, all of this likely indicates that we’re moving on to a new phase in the war. It is one that likely sees peak military conflict already passed. We can only wait and see now but markets are slowly trying to lean towards being more cautiously optimistic.
The Trump playbook looks to be of a similar kind to what he has gone with when engaging with China on trade/tariffs. We’ve seen this all before.
The main issue now is whether or not things will change with regards to the Strait of Hormuz. That is the most important detail for markets.
This article was written by Justin Low at investinglive.com.
