Volatility Surges as Israel Strikes Iran
The US dollar is surging against most of its major counterparts as Israel launches airstrikes on Iran, threatening to ignite a new war in the Middle East – still the origin of nearly a third of global oil production. With reports of explosions in Tehran crossing the wires, crude oil benchmarks are snapping higher as risk premia soar, Treasury yields are falling, and equity futures are bleeding. The “pre-emptive strike” – to use the words of Israeli defence minister Israel Katz – has been widely rumoured for a few days, but its magnitude and key objectives remain unknown. Unconfirmed reports...