The standoff between the US and Iran shows little sign of abating, after President Trump dismissed Tehran’s response to peace overtures over the weekend.
Markets are starting to adapt. Oil prices remain high, but have eased lately due to a combination of demand destruction and increased production elsewhere. US stocks continue to print at fresh highs, as European equities lag, and the dollar appears to have resumed its gradual descent against most currencies. The key EUR/USD pair is now bumping against its pre-war levels, and some emerging market bellwethers like the Brazilian real are significantly higher over the period.