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Commerzbank Says Oil Rises After End in Middle East Fighting Pause, Treasuries Pare Earlier Losses

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Brent crude rose on Iran-related news but remained below $88 a barrel on weakening sentiment as a return to military attacks between the US and Iran ends a brief lull in the fighting, according to Commerzbank Research in a note.

Treasuries opened lower in Asia on Iran strike news, then stabilised, said Commerzbank.

The US said it intercepted all missiles in what it described as a surprise Iranian attack on its bases in Jordan. The US and Saudi Arabia launched joint retaliatory strikes on Iran-backed targets in eastern Iraq, according to the bank.

Iran denied seeking talks with the US over the past 16-17 days, added the US naval blockade wouldn't force negotiations, and it rejected Oman's proposed Strait of Hormuz shipping route, while insisting on full control of inbound traffic.

US equity futures trade lower, while Asian equities were broadly weaker, led by Japan's Nikkei and South Korea's Kospi, said Commerzbank. The euro rises to $1.14.

In Europe, German Prime Minister Friedrich Merz rejects the EU budget proposal and calls for a compromise by year-end. Britain's new Prime Minister Andy Burnham faces a 24 billion pounds shortfall in spending plans due to inflation, wrote The Times.

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