US-Iran Conflict Continues as Oil Prices Hold Lower

The US-Iran conflict continues to dominate markets as the week begins, with oil prices holding lower despite Iran's refutation of US President Trump's claims that a deal to reopen the Strait of Hormuz is imminent.

Iranian Foreign Ministry Spokesperson said there are no plans for talks with the US in the coming days, echoing previous statements about the ongoing tensions between the two nations. This is not the first time this has happened, as we've seen a similar dance between the two countries before leading to a ceasefire deal back in June.

Oil prices are down 6% for WTI crude to $79.56 and 5% for Brent crude to $83.46 despite the ongoing tensions. Bond yields have also cooled, with US 10-year yields down 7 bps to 4.67%, keeping markets in check.

The dollar has held its own after a fall on Friday, with USD/JPY at 156.88 and marginal gains for the day. Equities are up 1% in Europe and S&P 500 futures seen up 0.6% as tech shares come under scrutiny.