Market Brief, North America

Oil benchmarks and the dollar are extending yesterday’s gains after the Wall Street Journal said US president Donald Trump is preparing to maintain an indefinite blockade against Iranian shipping, rather than accepting Tehran’s peace proposal or resuming military attacks. Barrels of Brent crude are trading for more than $114, while West Texas Intermediate changes hands for $103, and the greenback is reversing last week’s losses as hopes for a diplomatic resolution to the conflict fade. Equity futures, by contrast, are climbing ahead of the open as investors anticipate strong earnings from a number of technology behemoths, including Alphabet, Amazon, Meta,...

Good morning. The dollar is advancing and Brent crude prices are back above $110 a barrel as the US and Iran fail to make meaningful progress toward a deal that might relieve strain on global energy markets. Over the weekend, Iranian Foreign Minister Abbas Araghchi reportedly proposed that Tehran and Washington end their blockades and maintain a regional ceasefire while postponing nuclear talks to a later date, but the White House response was cool: press secretary Karoline Leavitt said President Trump was reviewing the proposal, adding that his red lines on Iran had been made “very, very clear”. With oil...

Financial markets are back in risk-off mode as Middle East peace talks show signs of stalling, with both sides continuing to enforce blockades on shipping through the Strait of Hormuz. Brent crude is holding above $100 once again, equity futures are setting up for a pullback at the open, and the dollar is catching a bid as traders revert to safe-haven and terms-of-trade playbooks, selling the currencies most exposed to an energy price shock. The euro is trading sharply weaker after economic activity unexpectedly contracted in early April as stagflationary conditions took hold. The eurozone flash composite purchasing manager index...