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Commerzbank Says Oil Prices Rise, Treasuries Lower Ahead of Warsh's Speech, US Dollar Stronger

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Brent climbs toward $90 a barrel as there were still few signs of progress to reopen the Strait of Hormuz, according to Commerzbank Research in a note.

President Donald Trump has abandoned efforts to revive a preliminary Iran deal, leaving mediators without a clear path forward, according to the WSJ. Separately, US Navy Adm. Brad Cooper said the Strait of Hormuz shipping lanes have been cleared of mines.

Venezuela is considering withdrawing from OPEC and is in talks to grant the US 100-year leases on several oil fields, according to Bloomberg sources.

Treasuries moved lower in late New York trading and into Asia on Friday, said Commerzbank.

Federal Reserve Chair Kevin Warsh is confirmed to give a speech later Friday at Jackson Hole.

Boston Fed President Susan Collins continues to view rates as "mildly restrictive," while Federal Reserve Bank of Kansas City President Jeffrey Schmid and Federal Reserve Bank of Cleveland President Beth Hammack disagree, arguing that policy isn't yet restrictive enough to bring inflation back to target, added Commerzbank.

US Secretary of Commerce Howard Lutnick blames Canadian Prime Minister Mark Carney for derailing the deal with last-minute demands.

The US dollar is strengthening, said the bank. US equity futures are little changed.

Japanese government bonds sold off, pushing five-year JGB yields to their highest level in 30 years.

Tokyo consumer price indices rose in line with expectations.

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