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Commerzbank Says Oil Prices Advance, Treasuries Ease, US Equity Futures Higher Despite Weaker Asian Stocks

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Brent crude rebounded, climbing back toward $85 per barrel as no advance in the standoff between the US and Iran appears imminent, according to Commerzbank in a note. Treasuries rallied into the New York close, then pared gains during the Asian session.

President Donald Trump said discussions with Iran are ongoing at Tehran's request, outlining a two-stage framework that would first reopen the Strait of Hormuz before moving to denuclearization. Trump described the negotiations as Iran's "last chance" before what he called "decapitation," said Commerzbank

Despite Trump's comments, CBS reported that no formal US-Iran talks are currently scheduled, added Commerzbank. Meanwhile, Iranian Supreme Leader adviser Mohsen Rezaee rejected the US proposal, insisting any Strait of Hormuz transit route must remain under Iranian control. He warned that US bases and naval assets remain vulnerable and said the US must change its approach before any progress can be made.

The US Treasury raised its quarterly borrowing estimate by $68 billion to $739 billion.

US equity futures advanced despite mixed trading across Asian equity markets, according to the bank.

In Asia, Finance Minister Satsuki Katayama said the US remains supportive of Japan's economic policy but declined to comment on potential foreign exchange intervention or coordinated action.

Growth Strategy Minister Minoru Kiuchi added that authorities are closely monitoring currency moves and their impact on the economy.

The yen weakened, said the bank. Japanese government bond yields rose after a weak 10-year bond auction.

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