Geopolitics Fuel Global Market Volatility Amid Iran-US Tensions

The global markets are experiencing volatility due to geopolitical tensions. The US Treasury announced it will buy back up to $6 billion in 10-20 year Treasuries on Thursday, exceeding previous guidance of at least $4 billion.

Brent crude prices surged after reports emerged that Iran launched an attack against US Navy ships, which the US military has yet to acknowledge. Saudi Energy Minister stated that a number of energy facilities and utilities were hit, leading to temporary halts in operations.

The news sent shockwaves through the market, causing Brent Nov 26 prices to rise by 1% and equities to fall by 0.3%. The USD/JPY also saw a significant increase, rising over 50 pips as the DXY strengthened.