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Commerzbank Says Oil Prices Stable, Treasuries Recoup, Asian Stocks and US Equity Futures Higher

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Brent oil trades near $88.7 per barrel amid a lack of significant news in the US-Iran conflict, according to Commerzbank Research in a note. Treasuries weakened into Friday's close but stabilized during Asian trading.

A White House official says the situation in the conflict with Iran remains unchanged, with no extension of the ceasefire currently in sight, according to Politico sources.

President Donald Trump describes the US blockade as a "wall of steel" and "unstoppable," while saying the US can destroy Iran but doesn't want to do so, according to Commerzbank. Trump reiterates that Iran must not be allowed to obtain a nuclear weapon.

Israel strikes Hezbollah command centers in Lebanon following reported truce violations, as tensions continue to escalate despite the ceasefire, added the bank.

Japan's second-quarter gross domestic product grew 0.3% quarter over quarter, below the 0.5% consensus, as weak domestic demand weighed on growth.

Japanese government bond yields moved higher, while Asian equities rose, said Commerzbank.

The euro rose to around $1.16.

In Europe, Germany's ruling center-right CDU/CSU falls to around 20% in the latest INSA poll, its weakest result in nearly five years and trailing the far-right AfD, which leads at roughly 28%.

The Italian government is considering a further IRPEF income-tax cut for earners with incomes of up to 60,000 euros as part of the 2027 budget.

JPMorgan CEO Jamie Dimon warns British Finance Minister John Healey against raising taxes on banks, arguing that higher levies could drive financial-sector jobs and investment abroad.

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