Morning Report

Morning Report PDF (PDF 255KB)

Key themes:

• Hopes for a TACO-style reversal continue to be dashed amid reports of intensifying strikes across the Middle East and cuts to crude oil production amid limited storage capacity, which continues to see crude prices lift higher with significant intraday volatility.
• Against this backdrop, equities fell across most major markets and yields rose on longer-dated government bonds across the globe. The USD continues to climb as well, with the DXY closing above the 100 mark for the first time since November 2025.
• Central banks from most major economies have policy decisions scheduled this week, which will offer key insights into reactions functions in the midst of the crisis.
• On Friday evening, the US conducted strikes on Kharg Island in the Persian Gulf, an island that is responsible for processing around 90% of Iran's crude oil exports, predominately to China, marking yet another significant escalation.