Oil Prices Ease Back Amid Ongoing US-Iran Tensions

The US-Iran tensions continue to dominate market focus as we head into the final stretch of the week, but for now, at least, there's a hint of relief. After four days of grappling with uncertainty, oil prices are coming off the boil, with WTI crude down by 3% today and below $90. The chart above shows price action being called back towards a test of the 100-day moving average, which could be a key technical level to watch.

Despite this dip, it's still been an impressive week for oil prices, with gains in excess of 9% poised to end the third straight week of increases. The retreat in oil prices is also seeing other asset classes find some reprieve, including bond yields, which are down 1.2 bps to 4.69%. In Europe, 10-year yields in Germany and France are also moving lower.

Equities are finding some relief too, with major indices in Europe posting slight gains while S&P 500 futures are up 0.3% on the day. However, it's still early in the day, and any negative headline risks could easily creep back in and stir up nerves.