CAD

Good morning. Risk appetite is deteriorating across the financial system as the Middle East conflict shows little sign of easing ahead of President Trump’s deadline for resuming military strikes against Iranian power plants and energy infrastructure tomorrow. Although there are clear signs of political exhaustion in Washington, Iran yesterday rejected the administration’s maximalist overtures, and Axios is reporting that the Pentagon is preparing options for a major escalation, possibly including the deployment of ground forces. Brent crude is back above $107 a barrel, West Texas Intermediate is climbing through $94, and European natural gas futures are pushing higher as prospects...

Energy prices are ratcheting higher once again as fighting in the Middle East rages unabated, suggesting that President Donald Trump’s efforts to find a diplomatic off-ramp have not met with success thus far. Brent crude is trading above $100 a barrel, West Texas Intermediate is clinging to the $90 threshold, and European gas benchmarks are climbing, reversing yesterday’s retreat* which came after the president claimed “productive discussions” were underway to end the conflict—only to be contradicted by Iranian officials later in the day**. This morning, Treasury yields are little changed, equity futures are pointing to modest gains at the North...