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Commerzbank Says Oil Prices Stick Close to Highs While Treasuries Edge Higher

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Brent oil prices hovered just below $92 a barrel on the latest aggressive comments from Trump against Iran and no signs of talks between the two countries, according to Commerzbank Research in a note.

President Donald Trump announced what he described as the "most crushing economic operation" against Iran and warning that countries providing Tehran with a lifeline would face consequences, said the bank.

Meanwhile, the US is reportedly preparing an operation to transport oil through the Strait of Hormuz via a southern route along Oman's coast, according to sources cited by Axios.

Treasuries gained following the Federal Reserve minutes, extending their advance into the New York close Wednesday and edged higher in Asian trading on Thursday.

President Trump said he would like to see interest rates come down and urged Americans not to be concerned about the bond market, said Commerzbank.

Total US public debt outstanding surpassed $40 trillion for the first time, added the bank.

President Trump said the US "probably" has a deal with Canada. The US is reportedly poised to lower tariffs on Canadian autos to 15%, according to Bloomberg.

US equity futures were little changed, while Asian equities were better supported.

In Asia, China's central bank left its one- and five-year loan prime rates unchanged. Japan's government is considering tax incentives to encourage retail investors to buy Japanese government bonds, according to the daily Nikkei.

The euro held firm around $1.1680, while the yen and Swiss franc weakened, accoridng to Commerzbank.

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