Lee Hardman at MUFG highlights that Oil has been one of the biggest movers, with prices rising back towards recent highs around USD110/barrel. The move reflects disappointment over limited progress on a US–Iran deal to reopen the Strait of Hormuz, while geopolitical tensions including attacks near Riyadh add to the risk backdrop and help sustain higher energy prices and global bond market sell-offs.

Geopolitics sustain elevated prices

"One of the biggest movers overnight has been the price of oil which has risen back up towards recent highs at around USD110/barrel."

"It reflects some disappointment over the lack of progress towards a deal to end the US-Iran conflict and re-open the Strait of Hormuz."

"US and Iranian negotiators have reportedly been exploring a deal that would see Tehran reopen the Strait and Washington lift the blockade of Iranian ports."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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