Oil Prices Surge After U.S. Strike On Iranian Rocket Launchers

Filed 1h ago · Via HuffPost · The Buffoon Desk

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Kevin MacLeod · incompetech.com · CC BY 4.0

Photo: The White House · Public domain · via Wikimedia Commons

Global shares were mixed and U.S. futures slipped Monday as investors braced for a possible Federal Reserve rate hike, while oil jumped more than 3% after U.S. forces struck Iranian rocket launchers near the Strait of Hormuz, the first such action in a month.

Brent crude rose 3.8% to $91.40 a barrel and U.S. crude climbed to $86.58, undoing gains traders had made pricing out the region's war premium. The renewed strikes came just after the Trump administration had pivoted publicly toward economic pressure over military action.

Meanwhile Fed Chair Kevin Warsh's Jackson Hole remarks reinforced rate-hike expectations even as President Trump, who appointed him, continues to push for lower rates, and two-year Treasury yields jumped in response.

The full dispatch is available from the source below.

✒ FROM THE EDITORIAL DESK

Nothing says stable regional strategy like traders discovering, in real time, that a war doesn't end just because the White House says its attention has moved on to sanctions. The dissonance between an administration touting an economic-pressure pivot and rocket launchers getting struck the same week is the whole story here. Markets, unlike press releases, still have to price in reality.

Source: Read the original at HuffPost → Scored: Faster Does It · Kevin MacLeod · CC BY 4.0

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