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Morning bid Europe-Oil surges after US blockade on Iran
Tom Westbrook gives us a look at what the future holds for European and global markets. Oil futures rose?back to $100 in Asia on Monday morning, while the dollar fell and stocks were down as U.S. - Iran talks failed without any progress towards a lasting peace. The U.S. announced a blocking of Iranian ports as a way to increase pressure on Tehran and the countries that receive Iranian crude, mostly China. Experts?say that the blockade is an act?of war that requires a commitment open-ended?of significant numbers of warships. If Iranian exports are removed, the global supply could be cut by up to 2,000,000 barrels per day. Bonds were also sold due to concerns about inflation. After Viktor Orban's defeat in Sunday's election, the forint of Hungary soared after the result. This paved the way for European Union funds to be sent to Hungary and possibly Ukraine. The other reactions to the collapse of U.S. - Iran?talks in the 'Asia session, however, were not extreme. Most asset prices returned to their previous levels around the middle of last weekend, just before the 'U.S. Israel and Iran reached a ceasefire. The markets will be left trading headlines as the U.S. Earnings Season begins in earnest, with Goldman Sachs reporting before the opening of the market. Market developments on Monday that may have a significant impact - Hungarian election result Goldman Sachs: U.S. earnings
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As US-Iran talks fail, oil prices soar and the dollar rises. Stocks also fall.
The dollar rose, stocks and bonds fell in Asia as earnings season in the U.S. began later that day. The U.S. action, which is aimed at exerting pressure on Tehran leaves a fragile truce hanging in the air and there's no end to the chokehold on Middle East oil exports in sight - although the mood in trading floors leans towards hope for a solution. Brent crude futures rose 7.3% to $102 per barrel. S&P futures were down by 0.7% in the morning of Asia and European futures dropped 1.3%. U.S. Treasuries, bonds and other assets in Asia fell, with Japan's 10-year benchmark yield reaching a 29-year record of 2.49%. However, the moves were modest, and most assets returned to where they stood before last week's truce. Saul Kavonic, an analyst at MST Marquee, said that the market has returned to its pre-ceasefire conditions. However, the U.S. is also blocking the remaining Iranian-linked oil flows of up to 2 million barrels through the Strait of Hormuz. "The key question that remains is whether the U.S. will renew strikes against Iran. This could raise the risk of attacks on energy infrastructure in the region, which could have an even longer lasting impact than the duration of the war." The Wall Street Journal reported that Trump and his advisors were considering limited strikes against Iran, although there was no immediate report of an attack in Asia Day. Trump acknowledged on Sunday the possible political consequences of the war by saying that oil and gasoline prices may continue to be high until the November midterm elections. DOLLAR HIGHER The euro dropped about 0.3%, to $1.1687. Risk-sensitive currencies like the Australian dollar also slipped. MSCI's broadest Asian share index outside Japan dropped 1%. The market does not believe that Trump will strike any more military assets or seize the Strait of Hormuz, said Russel C. Chesler of VanEck's Sydney office. He added that inflation was a growing concern, and would only increase the longer oil prices remained high. He said that even if the Strait of Hormuz is reopened, the oil flow will be "pretty slow" and we would be stuck with high price for a while. Investors are bracing themselves for central banks to raise rates, a dramatic reversal of their pre-war predictions that they would cut rates or take a long pause. Hungarian forint surged to multi-year highs against the dollar and the euro in emerging markets after Hungary's veteran nationalism leader Viktor Orban was ousted from power by a centre-right coalition on Sunday. The election result will likely pave the road for European Union funding in Hungary and Ukraine.
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Iron ore rises after six-day decline
Iron ore futures edged higher on Monday, after a six-session decline to a one month low. By 0258 GMT, the most-traded September iron ore contract on China's Dalian Commmodity Exchange (DCE) had risen?0.4% to $757 yuan ($110.79). The benchmark iron ore for May on the Singapore Exchange rose 0.12% to $103.6 per ton. Steelhome data shows that iron ore inventories at major Chinese ports decreased by 0.16% in a week, according to the latest figures. According to Mysteel, the price of hot metals is'supported' by continued portside destocking. Mysteel data showed that iron ore imports at 47 Chinese ports fell by 536.100 tons due to disruptions in Australian supplies. Imports are expected improve this week, as supply disruptions have eased. Oil prices rose above $100 per barrel on Monday as the U.S. Navy prepared to block ships from reaching Iran through the Strait of Hormuz. This could limit Iranian oil exports after Washington and Tehran failed in their efforts to end the conflict. As shipping costs increase, it is expected that rising oil prices will support iron ore prices. The Brazilian mining company Vale announced on Friday that it will start building a waste rock and tailings processing plant for the state of Minas Gerais in the southeast this year. The plant will be able to produce 2 million tons per year of iron ore and is expected to start operations in the next few months. It's part of a company goal to reuse discarded raw materials. Coking coal and coke, which are both steelmaking ingredients, have gained?ground on the DCE. The Shanghai Futures Exchange steel benchmarks were mixed. Hot-rolled coils rose 0.15% and stainless steel increased 1.04%. ($1 = 6.8327 yuan) (Reporting by Ruth Chai; Editing by Subhranshu Sahu)
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Gold drops on stronger dollar and fading Fed rate-cut hope
Gold prices dropped to a one-week-low on Monday, despite a stronger dollar. A surge in oil prices following the failure of U.S. Iran peace talks fueled inflation fears and dampened expectations that Federal Reserve rates would be cut this year. As of 0222 GMT spot gold was down 0.6% to $4,718.98 an ounce after reaching its lowest level since the 7th of April earlier in session. U.S. Gold Futures for June delivery dropped 1% to $4742. Oil prices rose above $100 per barrel as the U.S. Navy prepared to blockade the Strait of Hormuz, which could limit Iranian oil shipments after the U.S. failed to reach an agreement to end the conflict with Iran. Iran's Revolutionary Guards responded with a stern warning that any military vessel approaching the Strait would be considered as a breach of ceasefire and dealt with harshly and decisively. Tim Waterer is the chief market analyst at KCM Trade. He said that the ceasefire optimism had been shattered by the failure of peace talks. The dollar and oil prices have risen as a result, and gold has fallen back on its heels. Since the U.S. and Israeli war against Iran began on 'February 28th,' spot gold has dropped by more than 11%. Waterer stated that "as soon as oil prices return above $100, attention will quickly turn to possible central bank rate increases to curb inflation. This interest rate outlook is what's undermining the gold's performance." The traders now see little chance of a U.S. interest rate cut in this year as the higher energy prices are likely to contribute to broader inflation, and thus limit the scope for monetary ease. Prior to the start of the Middle East war, two Fed rate reductions were expected this year. Gold's appeal is usually boosted by inflation, but high interest rates can make it less attractive. The stronger the dollar, the more expensive gold is for holders of other currencies. Silver spot fell by 2.2%, to $74.23 an ounce. Platinum lost 0.5%, to $2,034.95, and palladium rose 1%, to $1,535.77.
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Aluminum demand surges after US-Iran peace talks collapse
Aluminium prices range-bound Monday as investors weighed renewed concerns about inflation and a global economic recession after the collapse of U.S.-Iran peace talks against lingering'supply jitters. As of 0222 GMT, the most traded aluminium 'contract' on the Shanghai Futures Exchange fell 0.24% to 24,565 Yuan ($3,594.74) a metric tonne. The benchmark three-month aluminum on the London Metal Exchange increased 0.2% to $3.505.5 per ton. U.S. president Donald Trump announced 'on Sunday that the U.S. Navy will start blockingading Strait of Hormuz after marathon talks failed to reach an agreement to end the war. This could jeopardize a fragile 2-week ceasefire. Analysts said that the failed peace talks had a negative impact on the market, because they highlighted a prolonged drag on economic growth in general, which could 'dampen appetite for metals used in industrial applications. First Futures analysts said that the impact is more sentimental at the moment, as there has been no further reduction in production in the Gulf. Last month, the prolonged conflict in the Middle East forced some local aluminium smelters?to reduce their output. They also disrupted Gulf supplies by closing the Strait of Hormuz. A stronger dollar also affected the base metals sector, as commodities priced in dollars were less affordable to investors using other currencies. Shanghai copper rose 0.51% due to falling stocks. Nickel was little affected, while lead, tin, and zinc all declined. Copper fell?0.72% among other?LME-metals, while nickel fell 0.21% and lead dropped 0.39%. Tin also declined 2.3% and zinc slipped 0.6%.
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Oil tankers avoid Hormuz in advance of US blockade
Shipping data shows that oil tankers are avoiding the Strait of Hormuz in anticipation of a U.S. blockade on Monday, following the failure of?peace negotiations between the U.S. The President Donald Trump announced on Sunday that the U.S. Navy will begin blocking the Strait of Hormuz. This is a major step after the marathon talks between Iran and the U.S. failed to produce a peace agreement, putting a fragile ceasefire of two weeks in danger. The U.S. Central Command announced that U.S. Forces would begin to implement the blockade on all maritime traffic?entering or exiting Iranian port at 10 a.m. ET (1400 GMT), on Monday. In a press release on X, it stated that the ban would "be enforced impartially" against all vessels of any nation?entering and departing Iranian coastal areas and ports including all Iranian port on the Arabian Gulf or Gulf of Oman. It said that U.S. forces will not hinder the freedom of navigation of vessels transiting through the Strait of Hormuz between non-Iranian port and the Iranian ports. Additionally, additional information will be given to commercial mariners via a formal notification prior to the start of the blockade. The Iranian Revolutionary Guards warned on Sunday against any military vessel that attempted to approach the Strait of Hormuz. They said this would be considered as a breach of the ceasefire, and they will be dealt with harshly. Data from LSEG & Kpler shows that on Sunday, Pakistani flagged tankers Shalamar & Khairpur entered Gulf. Data showed that the Aframax tanker Shalamar will be heading to the United Arab Emirates to load Das crude, while the?Panamax sized Khairpur will be heading to Kuwait to fill refined products. Pakistan National Shipping (which manages Shalamar) did not respond immediately to a comment request outside office hours. Mombasa B (flagged Liberia) is a?very large oil carrier (VLCC), which transited also the strait on Sunday. The data shows that the VLCC Agios Fanourios I flying the flag of Malta, which attempted to cross the strait to enter the Gulf on Sunday in order to load Iraqi crude oil from Basra for Vietnam, turned around and is now anchoring near the Gulf?of Oman. The tanker is heading to Iraq. Eastern Mediterranean Maritime which manages Agios Fanourios 1, and CMB.TECH NV who is the manager of the Mombasa B did not'respond to any requests for comments outside of office hours. Shipping data revealed that despite the deadlock, three supertankers, fully loaded with oil, passed through the Strait of Hormuz Saturday. These vessels appeared to be among the first to leave the Gulf after the ceasefire agreement was reached last week. Reporting by Florence Tan, Editing by Muralikumar Anantharaman
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Viva Energy, Australia's largest energy company, faces an extra $17.5 million in costs after regulatory review
After a review by the Australian corporate regulator, Viva Energy has revised its testing of the value of its retail fuel and convenience sites for impairment. This will result in an additional A$25m ($17.55m) in impairment charges on 2025 accounts. The Australian Securities and Investments Commission questioned the fuel retailer’s previous approach to?grouping certain sites into a larger Shell Card cash-generating units, arguing that?individual outlets? should be assessed individually so their recoverable value could?be determined. The regulator said that Viva had adopted the revised method in its financial statements for its year-end?December 2025 and increased the total impairment charges on the convenience?retail networks to?A$558.8 millions. The company didn't immediately respond to our request for comment. The additional charge is only 4.5% of the total write down, but it signals a tightening of regulatory scrutiny on accounting decisions and highlights the pressures that Viva faces in valuing its retail network. ASIC stated that Australian accounting regulations'requires companies to test assets for impairment individually whenever possible and only use broader cash-generating units when standalone valuations are not possible. In its report for 2025,?Viva stated that applying the revised method retrospectively 'wouldn't have materially impacted prior-periods results. The company's shares rose as much as 7.2% on Monday to a new 14-month high, helped by higher oil prices and an increase of 3.8% in the energy sub-index.
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Analysts say that the shock of the Iran war will cause a market deficit by 2026.
Analysts say that the sharp drop in global oil production caused by the Iran War is set to turn the oil market this year into a'supply deficit. This will be a dramatic change from previous forecasts of a 'comfortable surplus. The conflict that began with U.S.-Israeli strikes against Iran on February 28, has effectively stalled oil flows through the Strait of Hormuz. This passageway accounts for a fifth of all global oil consumption. Attacks on energy infrastructure and production shutdowns have also severely reduced output. According to eight analysts surveyed by, the oil market will be oversupplied by 750,000 barrels a day this year. In a similar poll conducted in September, a 1,63 million bpd excess was predicted for 2026. This was largely due to OPEC+ unwinding some of their output cuts and the strong production by other producers such as the U.S. Brazil and Guyana. International Energy Agency estimated that 'the war' had reduced oil supply by 11 million bpd at the end of march, whereas ANZ Bank estimated that 9 million bpd had been removed from crude supply in a note dated April 9. According to the IEA, global oil supply in January was approximately 106.6 million bpd. Analysts in the poll said that these immediate shocks will translate into a production loss of 2.13 million bpd on average over the course of the year. Analysts expect the market will see its biggest deficit in the second quarter - around 3 million BPD - before tipping back into a surplus in the fourth. Analysts warn that the projected deficits may increase depending on how long the Strait of Hormuz remains blocked. The flow of goods through the Strait remains constrained. Traders have reported no signs that a sustained return to shipments has occurred since Tuesday's ceasefire announcement. Vikas Dwivedi is the global energy strategist for Macquarie Group. He estimates that 136 million barrels (of crude oil and other products) are still stuck in the Gulf as a result of the conflict. It will take some time to clear the backlog. Even though the ceasefire has been declared, many?shippers are still facing challenges. There have been reports that Iran plans to charge ships transiting through the Strait of Hormuz fees. Dwivedi stated that "issues include insurance, and the risk of transacting with Iran (by paying tolls) if sanctions are violated." RESTORING PRODUCTION IS EXPECTED BUMPY The war-related supply disruptions prompted the biggest annual price forecast rise in poll records last month. Analysts raised their 2026 Brent forecasts to $82.85 per barrel by about 30%. Oil prices have risen by around 50% due to the war. It will take several months to restore oil production levels prior to the conflict, depending on damage done at oilfields by attacks and shutdowns and how easily shipping can flow through Hormuz. Analysts at ANZ say that even under a 'constructive security scenario', output will only partially recover in the short term. Around 2 to 3 million bpd could return in the first months as export shipments resume. Another 2 to 3.5 millions bpd may be returned to the market in the second quarter. They said that despite the fact that recovery will not be easy, it is likely to be hampered by operational friction, damaged infrastructure, and export bottlenecks. ANZ also said that there is a possibility of around 1 to 2 million bpd capacity being permanently lost or restricted even after the war. This would lead to a tighter and more volatile market.
Analysis finds that the Patriot missile used in the Bahrain attack was likely US-owned.
According to an academic analysis, the Patriot air defense system operated by the United States likely fired the missile that caused the pre-dawn blast in Bahrain which injured dozens and destroyed homes 10 days after the start of the war against Iran. Both Bahrain and Washington blamed the March 9 explosion on an Iranian drone. The Gulf kingdom reported that 32 people were injured, including some children, in the blast. U.S. Central Command stated on X on the day after the attack that an Iranian drone had struck a residential area in Bahrain. Bahrain acknowledged on Saturday, in response to questions, that an Iranian Patriot missile was responsible for the explosion over the Mahazza neighbourhood on Sitra Island, off the coast of Manama, which is also home to a refinery. A Bahraini spokesperson stated that the missile intercepted a drone in mid-air and saved lives. The spokesperson stated that the damage and injuries were not caused by a direct impact of the Patriot interceptor on the ground or the Iranian drone. The incident at Mahazza was not linked to an Iranian drone, according to either Washington or Bahrain. It has been a hallmark of the war to use expensive, advanced weapons in order to defend against drone attacks. This incident highlights the limitations and risks of this strategy. The powerful Patriot's?blast,? whether or not it intercepted the drone, caused widespread damage and casualties. Bahrain's air defences were unable that night to prevent attacks on the nearby refinery which declared force majeure a few hours later. The Pentagon did not respond to any questions when asked about the incident. Instead, it referred them to Central Command. A senior U.S. Official responded to White House questions by saying that the United States is "crushing" Iran’s ability to produce or shoot drones and missiles. The official added that "we will continue to address this threat to our country and allies." He also said the U.S. Military "never targets civilians". An Iranian girls' school was directly hit on February 28, the day after U.S. attacks against Iran. Two U.S. officials told the news agency that investigators at the U.S. Defense Department believed U.S. troops were probably responsible for the first report, perhaps because of outdated target data. The video of the aftermath of Bahrain's Mahazza explosion, verified by, shows rubble in and around homes, a thick dust layer in the streets, as well as screaming residents. Bahrain and the United States both operate U.S. Patriot batteries in the Kingdom. The kingdom is a close U.S. ally located on the Persian Gulf, which hosts the U.S. Navy Fifth Fleet as well as the regional U.S. Naval Command. According to Bahraini oil company Bapco, on the night of the Mahazza explosion, Iran attacked the refinery in Sitra. Smoke was seen rising from the facility in videos taken on the morning of March 9. Bahrain did not explain in its statement why it hadn't mentioned that a Patriot was involved at the time. The Iranian mission at the United Nations didn't immediately respond to an inquiry about the incident. The Patriot, produced by Raytheon as part of RTX Corp. is the primary high-to medium-range interceptor system for the U.S. Army and is a key component of the air defenses of the United States and its allies. Raytheon did not respond to an inquiry about the incident. Bahrain's government refused to confirm whether the missile detonated March 9 was fired by Bahraini forces or the United States. The Middlebury Institute of International Studies in Monterey, Professor Jeffrey Lewis and research associates Sam Lair, Michael Duitsman concluded that they had a moderate to high level of confidence that the missile likely was launched by a U.S. Patriot Battery located approximately 4 miles (7km) southwest of the Mahazza neighbourhood. The conclusions reached by the three American researchers in open-source intelligence and munitions, which were reported for the first-time here, were based upon their analysis of commercial satellite images and visuals from open-source sources. Two target-analysis specialists and a Patriot system missile researcher were shown the Middlebury analysis, but they found no reason for them to disagree with its conclusions. Wes Bryant - a former senior policy analyst and targeting advisor at the Pentagon - said that Lair, Duitsman, and Lewis's conclusion was "pretty unquestionable". Bahrain, a small Gulf state plays a crucial role in the safety of the Strait of Hormuz. This chokepoint carries about one fifth of all the world's oil, and is now almost completely closed by Iran. The Middlebury analysis relied heavily on a video taken from an apartment and shared via social media. The video shows a Patriot suspect roaring through the night sky on a northeastern course at low altitude. The Patriot then turned downwards and disappeared from view. It was detonated 1.3 seconds after a flash of light appeared in the distance. Hany Farid is a professor at University of California at Berkeley who specializes in digital forensics. He reviewed the video to determine if the video was generated using artificial intelligence. He found that "there is no obvious evidence" that the video was fake. Lair, Duitsman, and Lewis geolocated it to a neighbourhood in Riffa. Geolocation was confirmed. The video was posted online as early as 2 am local time, on 9 March. The analysis concluded that "the Riffa site’s location and orientation is consistent with" the trajectory of the Patriot suspect. Multiple videos shared on social media in the morning of 9 March show damage to homes in Block 602 Mahazza. Researchers first geolocated visuals by using landmarks which appeared to match satellite imagery and street addresses. The geolocation was independently verified. Researchers then tracked the suspected missile's trajectory from Block 602 back to the U.S. Patriot Battery, which they determined based on satellite imagery. The battery is located less than half-a-mile from where the video footage of the missile was recorded in Riffa. The battery is made up of a radar, a control hub, and eight launchers. It can be used to track, detect and intercept missiles and aircraft. Researchers used commercial satellite imagery to determine that five launchers could be seen at the Riffa location two days prior to the incident on March 9. Satellite imagery indicates that the battery has been in place since at least 2009. According to a Lockheed Martin release, the Bahraini Defense Force didn't start operating their own Patriot systems until around 2024. Researchers said that the Riffa site had features that were both unique to U.S. Patriot battery sites in the region, and different from known Bahrain-operated Batteries, such as protective walls, unpaved streets, and a complete lack of permanent structures. The researchers concluded that based on these features, the battery was likely operated by the United States. Patriots are used to defend the naval sites of Bahrain. Researchers were unable with certainty to determine what caused the Patriot's explosion. They added that, based on available evidence including the pattern of damage and the spread on the ground, they believed it to have detonated in mid-flight. The analysis concluded that it is possible that the Patriot was aimed towards a drone that was flying low and that both the missile and the drone exploded together to cause the explosion. The analysis concluded that if this scenario was true, it was an irresponsible attempt to intercept the drone as the missile and drone were both blown up in the air. This is what Bahrain's spokesperson claimed happened. The analysis stated that the direction of the damage, and the absence of evidence of a nearby drone, suggested a different scenario. "The explosion was caused by the detonation" of the Patriot's warhead, and unexpended propellant. The researchers could not independently confirm the presence of an Iranian drone in the area during the incident. According to the analysis, videos and photos released by the?Bahrani government after the incident show that blast damage is concentrated on four streets in Mahazza. The analysis stated that a Bahrain television news broadcast from March 9 and a press release by the government showed an extensive damaged home located about 400 feet (120 metres) away from the main blast zone. Interior photos of the house revealed holes created by shrapnel. Robert Maher, a audio specialist who analyzed the video on request, confirmed that his analysis supported the approximate location of explosion. The video begins with a flash, which is visible for eight seconds. However, the explosion does not occur until 19 seconds after the clip ends. This is because light travels more quickly than sound. The explosion must have been more than four miles from the person who recorded the video based on the time it would take for the sound to reach him. The homes that were damaged were located about 4.6 miles away (7.4km), which is consistent with the timing. Middlebury's analysis found that when all of the damage was taken into account, it matched what would be expected if a Patriot rocket exploded over a neighborhood road intersection. The analysis stated that pieces of the missile flew 120 meters and struck another house. Maher claimed that he did not hear any drones or missiles in the audio of the video, even though their sounds would be faint or unaudible at distances greater than four miles from where the footage was shot. Maher, after reviewing Middlebury's analysis, said that he did not see anything inconsistent with his observations. Defense officials and industry experts say Patriot misfires happen. One example was a 2007 errant missile that struck a farm in Qatar. U.S. Central Command called the Iranian and Russian reports that the incident in Mahazza, was caused by a Patriot failure a "LIE" on March 9th. It claimed an Iranian drone had struck a residential area. Middlebury researchers and I were unable to get or examine any visual evidence of drone or missile fragments. We tried to reach witnesses in Bahrain but many people refused to talk, citing fears of reprisals. Human Rights Watch documented the arrests in Bahrain of people who posted videos of attacks on social media during the war. The researchers determined that the Patriot appeared to be passing a steeper smoke trail in the video of the suspected missile as it flew. This likely came from a previous interceptor. Patriots are sometimes fired in pairs, to increase the chance that one will hit the target. Researchers and could not determine what happened to first missile. Researchers said that the low trajectory and deviation of the second missile from the original launch route could indicate a problem. They could not, however, rule out that the missile was deliberately fired in this direction. Bahrain's spokesperson stated that any claim of misfiring or malfunction of Patriots in Bahrain was "factually incorrect." (Reporting and editing by Jonathan Landay). Pell and Travis Hartman, Additional reporting by Arthur Wei and Samia Nkhoul in Dubai; Andrew Mills and Idrees Al in Washington, Sarah Cahlan, and Frank Jack Daniel.
(source: Reuters)