Public Markets 8-Hour Briefing

Energy & Commodities

Oil prices plummeted from $119 to $90 after President Trump signaled the Iran war could end "very soon," creating a stunning reversal in energy markets that has eased supply concerns. The sharp decline in crude futures came amid developments suggesting potential easing of supply disruptions from the Middle East, though experts warn prices will remain elevated above $100 until traffic through the Strait of Hormuz returns to normal. As a result, aluminum extended its retreat from a four-year high as de-escalation hopes reduced concerns about supply disruptions from the region, while China's Zhang Bo saw his fortune grow to $48 billion from the metal's earlier surge.

Precious Metals & Currencies

Gold held steady near $2,340 despite Middle East volatility, supported by a weakening dollar as the market digested conflicting signals about the Iran conflict's resolution. Asian currencies remained mixed against the dollar, with sentiment potentially supported by de-escalation hopes for the Mideast conflict, though the Indian rupee faced mounting pressure as crude oil surged above $100 a barrel, prompting the nation's central bank to step up support for both currency and bond markets to prevent a destabilizing capital outflow.

Fixed Income & Equity Markets

Japanese government bonds extended their rally tracking overnight gains in U.S. Treasurys as traders adjusted to shifting geopolitical dynamics. The debt markets were also roiled by soaring jet fuel costs that weakened airline bonds and prompted Air New Zealand to suspend earnings guidance as fuel price assumptions made less than two weeks ago became invalid