Tensions Spike: Brent Crude Surges Amid US-Iran Standoff
US equity indices rebounded on Friday, gaining between 0.5% and 1%, thanks in part to lower oil prices and a cooling US Treasury yield curve. However, this momentum was short-lived as Brent crude rose to $105 a barrel on Monday amid continued tensions between the US and Iran.
The Strait of Hormuz remains a point of contention, with Iranian Foreign Minister Abbas Araghchi stating that Iran is ready for a 'doomsday war' with the US. The Iranians have said they will only reopen the Strait after certain conditions are met, while US President Donald Trump claimed to have rejected an Iranian deal.
The escalating tensions between Washington and Tehran have had a ripple effect on global markets. In India, the Nifty has been in decline for seven consecutive weeks, falling nearly 6% over that period. Despite this, Friday saw a modest recovery with the index rising above 23,100.