UK housing market downturn eases but sentiment remains ‘fragile’, surveyors say – business live

Brent crude dips slightly below $78 a barrel; most Asian stock markets bounce back

Jefferies analyst Mohit Kumar says:

Geopolitical tensions were the main driver of the market yesterday. US and Iran traded fire with US reportedly striking 90 targets in Iran and Iran retaliating with strike on US air bases. Trump later stated that Iran has asked for a continuation of talks, though it is not clear whether the request actually originated from the Iran side. Oil prices have moved sharply higher with US crude close to $74 and Brent close to $79 a barrel.

The renewed tensions show the fragile nature of the truce between US and Iran. In our view, the latest escalation is Iran’s attempts to control the Strait by attacking ships that try to pass through the Oman side. Iran wants ships to pass through its designated route on the Iran side which would enable it to charge tolls. Any tolls or fee for passage through the Strait would be unacceptable to the West.

What a wonderful world.

The latest turn of events in the Middle East has reversed the short-term bearish outlook for oil prices. US crude has risen as much as 13% since last week’s dip and is now testing the $75 a barrel level to the upside, with an increasing possibility of the barrel reaching and breaching the $80 a barrel mark. Brent crude briefly traded above $80 a barrel yesterday. Both are slightly lower today, but the short-term risks remain tilted to the upside.