From Marc Chandler at Bannockburn Global Forex:
The market has taken the increase in Middle East hostilities in stride. The response in the capital markets has been fairly restrained, though risk appetites have been pulled back, reflected in the losses in equities. The dollar is also firmer against most currencies, though the yen has recovered from the lowest level of the month. Crude oil is firmer, but the front month contracts for both WTI and Brent are within yesterday’s ranges.
It appears that many investors can recognize the fragility of the ceasefire while at the same time being hopeful that an end to the conflict may still be near. The latest reports suggest control of the Strait of Hormuz remains a key issue. Although neither Iran nor the United States have ratified the UN Law of the Seas, both seem to be claiming its authority. The strait is a natural waterway but at the same time, at the narrowest part (21 miles wide), it is within what the UN law regards as territories waters....
....MUCH MORE
