KEY TAKEAWAYS
- Global stocks are edging higher and oil prices are paring gains as investors bet that Middle East tensions won’t disrupt commodity flows significantly after the U.S. struck three Iranian nuclear facilities Saturday evening.
- Investors are watching for Iran’s next move, as its parliament reportedly approved the closing of the Strait of Hormuz.
- Analysts have said closing the Strait would hurt Iran, which needs to export oil to major customer China.
Global stocks are edging higher and oil prices are paring gains as investors bet that Middle East tensions won’t disrupt commodity flows significantly after the U.S. struck three Iranian nuclear facilities Saturday evening.
Investors are watching for Iran’s next move, as its parliament reportedly approved the closing of the Strait of Hormuz, through which about one-fifth of the world’s oil supply transits. Still, analysts have said closing the Strait would hurt Iran, which needs to export oil to its major customer China.
Oil prices are flat after surging earlier, with both Brent crude and West Texas Intermediate futures up around 0.4%.
Meanwhile, President Donald Trump suggested regime change in Iran. “It’s not politically correct to use the term, ‘Regime Change,’ but if the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn’t there be a Regime change??? MIGA!!!” Trump posted on his Truth Social platform Sunday.
Markets were muted despite the signs of escalation of tensions. U.S. stock futures are pointing slightly higher, with Dow Jones Industrial Average futures up 0.1% and Nasdaq and S&P 500 futures up 0.2%. The Stoxx Europe 600 index is down 0.2%. Japan’s Nikkei closed down 0.1%, while Hong Kong’s Hang Seng, where the biggest Chinese companies are listed, ended up 0.7%.
