Trump's Iran War Comments Spark Market Jitters

Energy and bond markets are on edge due to U.S. President Donald Trump's latest remarks on the Iran war, which he stated will not end until after November's midterm elections.

The conflict has led to intense attacks on Gulf shipping, with crude oil prices reaching their highest level since late May at $100 per barrel on Wednesday.

Additionally, 10-year Treasury yields have hit their highest in three years, fast approaching the 5% milestone, and six-month Brent crude futures are creeping closer to $90/bbl after Trump's comments.

The potential for further conflict has investors awaiting a likely European Central Bank interest rate rise on Thursday, with many expecting two more rate hikes over the next year.

Other key events this week include the release of U.S. producer price inflation data and an existing home sales report, as well as a planned $6 billion buyback of longer-dated bonds that has disappointed some investors.