Oil surges as US and Israel strike Iran

Chris Beauchamp IG

Oil surges to nine-month highs

“All eyes are now on the Straits of Hormuz and whether Iran attempts to close this vital waterway. This conflict has become existential for the current Iranian regime, pushing them towards drastic action in the hope they can create a global oil price spike that brings the US back to the negotiating table. So far OPEC's production increase is having little effect.”

Stock markets firmly on the back foot

“The long-predicted showdown between Donald Trump and Iran has seen stock markets and index futures engulfed by more selling. This conflict has no definable end point at present, providing the strongest catalyst for a risk-off move since the tariff announcements last April."

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Chris Beauchamp

EUR/USD remains on the back foot around 1.1700

EUR/USD is coming under heavy selling pressure, hovering around the 1.1700 region in the latter part of the NA session on Monday. The pair’s severe retracement comes as the US Dollar stages a marked bounce on the back of the prevailing flight to safety atmosphere, as investors react to the escalating conflict in the Middle East.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.