Ceased Ceasefire

The US-Iran ceasefire appears to be crumbling amid escalating military actions and stalled peace negotiations, driving a risk-off sentiment in global markets. Energy prices have spiked, while investors look ahead to key central bank meetings from the ECB and Bank of Canada.

Key Takeaways

• 1.US-Iran peace negotiations have stalled as a fragile ceasefire is increasingly threatened by resumed military hostilities and rhetoric.
• 2.Financial markets are reacting to heightened geopolitical tensions, with Brent crude futures rising nearly 5% and Asian equities experiencing a sell-off.
• 3.The upcoming week features central bank activity, including a Bank of Canada interest rate decision and an ECB meeting where a 25bp hike is expected.

Table of Contents

• Market comments
• Week ahead