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Commerzbank Says Oil Prices Remain Elevated as Hormuz Accord Stalls, Asian Stocks Lower

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Brent oil prices remain close to its highs, trading around $91.60 a barrel as hopes of an accord to open the Strait of Hormuz fade, according to Commerzbank Research. Treasuries were supported in late New York trading Tuesday and remain well bid in Asia early Wednesday.

President Donald Trump says no further talks with Iran are scheduled and rules out extending the ceasefire, according to the bank. FT sources report that Iran is considering US military targets in Europe if the conflict escalates.

The US condemns the "unnecessary escalation" following Israeli airstrikes on a Syrian airbase.

President Trump pauses the 50% tariffs on Canada due to come into effect on Wednesday for three days, citing a tentative agreement.

Asian stocks are lower, while Japanese government bonds rally, said Commerzbank. The euro is stable, while the yen strengthens.

China mobilizes a $1.6 trillion fund to support housing-related consumption, added the bank.

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