ECB Hike Looms as Saudi Tensions Rise and Iran Conflict Continues
Thursday's market is expected to be highly volatile due to several key events. The European Central Bank (ECB) is set to hike interest rates by 25 basis points, which has already been priced in by the market. However, the question remains open about December's rate guidance.
The situation in Saudi Arabia continues to deteriorate as Houthi forces have launched a second energy front inside the country. Several Aramco production sites were hit, with fires reported and operations halted. The impact on oil prices is already being felt, with Brent crude firming up due to the ministry's statement.
The market is also watching the US-Iran conflict closely, as President Trump continues to make claims of victory without providing any clear end-state or ceasefire terms. This has led to concerns about another flare-up in tensions and its impact on oil prices.