Australian Morning Focus

Global markets are roiling under the weight of heightened geopolitical tension in the Middle East following a US announcement to block Iranian shipping. Energy prices have surged, driving inflation concerns that are challenging central bank policy paths.

Key Takeaways

• 1.President Trump announced the US would reinstate a blockade on Iranian ships in the Strait of Hormuz and impose a 20% fee on all other cargo for passage.
• 2.Global markets reacted to geopolitical tension: equities declined, oil prices rallied by over 4%, and bond yields rose.
• 3.The escalation of Middle East conflict is creating upside inflation risks, leading the market to price in a 40-43% chance of a Fed rate hike in July.

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

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