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Commerzbank Says Oil Prices Rise on Hormuz Uncertainties, Asia Equities Mixed

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Brent rises to around $84 a barrel on uncertainties following the latest Strait of Hormuz headlines, according to Commerzbank Research in a note.

Iranian news agency Fars reported details of the Iran-Oman agreement on the Strait of Hormuz, claiming that it would prohibit passage for US and Israeli vessels, said the bank. Meanwhile, President Donald Trump said the Strait is "sort of open," adding that "things are moving along good" and expressing confidence that the conflict will end "pretty soon."

Asian equity markets were mixed Friday, while the euro traded within a narrow range, according to Commerzbank.

St. Louis Fed President Alberto Musalem reiterated that he would have preferred a rate hike in July, arguing that the balance of risks remains skewed toward higher inflation. He added that the labor market has stabilized and cautioned against easing monetary policy solely to boost gross domestic product growth.

China's trade surplus widened more than expected in US dollar terms, as exports exceeded expectations while import growth fell short of forecasts, added Commerzbank.

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