Jobs Report and Iran Tensions Spark Volatile Market Fluctuations

The past week has been marked by significant market fluctuations, driven by a combination of factors including a strong jobs report and escalating tensions between the US and Iran.

The US economy added 162,000 jobs in August, far exceeding expectations, which increased the likelihood of a September interest rate hike from the Federal Reserve to around 60%. This, in turn, has put upward pressure on bond yields and weighed on precious metals such as gold and silver, which closed the week slightly lower.

The situation in the Middle East remains volatile, with Iran firing ballistic missiles at a US aircraft carrier and destroyer over the weekend. The US responded by disabling two Iranian oil tankers and destroying a third, marking a significant escalation of tensions in the region.

Crude prices have been affected by these developments, surging more than 9% for the week to around $96 per barrel for Brent and $91 per barrel for WTI. Base metals such as aluminium and zinc also ended the week higher, driven by tightening physical fundamentals and supply chain disruptions.