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Commerzbank Says Oil Prices Remain High, Treasuries Stabilize, US Equity Futures Flat

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Brent crude remains above $101 a barrel as the conflict between the US and Iran shows no signs of abating, according to Commerzbank Research in a note.

Iran says it is ready for a more intense conflict and will step up its attacks if the US continues its strikes, according to Commerzbank.

President Donald Trump says the war with Iran will end "immediately" after the mid-term election in November. However, senior officials have privately warned that the conflict could continue for the rest of his presidency, according to the WSJ.

Trump says the economy is "very strong," promises lower gasoline prices and predicts oil prices will "tumble" after the November election, the bank added. Trump also promises Americans a $5,000 dividend if Republicans keep control of both chambers of Congress.

Treasury yields moved higher at the long end after the buyback announcement on Wednesday, then settled down following a strong 10-year bond auction.

US Treasury Secretary Scott Bessent is urging the Senate to move forward with stablecoin legislation when it returns, warning that failing to do so would send a "bad signal," said Commerzbank.

Japanese government bond yields are higher, Asian stocks are weaker, and US equity stocks are mostly flat, according to the bank. Major currencies are little changed.

In Asia, Board member Kazuyuki Masu says the Bank of Japan will keep raising interest rates to make sure inflation stays around its 2% target.

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