Middle East geopolitical tensions and the breakdown of US-Iran peace talks are driving oil prices and bond yields higher. Markets remain cautious ahead of the Australian Budget and upcoming US inflation data.
Key Takeaways
- 1.Lack of progress in US-Iran peace negotiations is the primary driver of higher oil prices and bond yields.
- 2.Middle East tensions are threatening global energy supplies, with potential impacts on the Strait of Hormuz and natural gas storage in Europe.
- 3.US CPI data is expected to show accelerating inflation, potentially keeping Fed rate cuts off the table for 2026.
Table of Contents
- Highlights
- Today (AEST)
- Global markets overview
- Data/event pulse
- Key themes and views
- Market at 6:45am today
- Key data releases
- What's ahead today
- Commodities
- Important Notice
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Authors
Aaron LukBrian MartinDaniel Hynes
Securities
S&P 500AUDUSDUS 10Y Treasury NoteWTI CrudeXAU
Themes
Geopolitical Supply ShockStagflationary PressuresMonetary Policy Inertia
Regions
North AmericaAsia PacificMiddle EastAustraliaUnited StatesNew Zealand