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President Trump Suggests U.S. Attacks on Iran Will Be Short-Lived as Oil Prices Sink

President Trump suggested that the latest round of U.S. military strikes against Iran would likely be short-lived. This statement provided relief to global markets, helping most equities rise and easing pressure on bond yields. Prior to these comments, tensions between the U.S. and Iran escalated as the American military struck air defense and radar targets, prompting Iran to retaliate with missiles and drones. These exchanges fueled fears of elevated inflation and pressured central banks to hike interest rates. Crude oil prices, which had rallied as much as 10 percent, began to drop after the administration's comments. West Texas Intermediate and Brent crude both saw price decreases of more than one percent. The administration announced a set of massive oil deals with Venezuela. Additionally, the U.S. military escorted 40 commercial ships through the Strait of Hormuz, a wartime high. While global bond yields continued to march higher, the soft readings in August private jobs creation and job openings provided support for stocks. In a separate development, Canadian Prime Minister Mark Carney criticized the administration for its social media posts and executive order renaming Lake Ontario to Lake America.

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