Equity markets are moving higher to start the week, recouping Friday’s losses. The conflict in the Middle East continues to be front and center. Markets are responding positively to speculation that Iran is looking to de-escalate the situation and the fact that the impact to global energy markets has been minimal thus far. Over the weekend, Israel targeted energy infrastructure that primarily impacts domestic consumption and has not hit facilities in Kharg Island the primary site of Iranian production. In addition, the Strait of Hormuz, where ~20% of global oil and LNG passes, remains operational. ICE Brent is pulling back >2.5% to ~$73.00 after surging >5% on Friday. Israel has shut in production at its Leviathan gas field due to security concerns which is pushing natural gas prices ~3% in both the US and Europe. As we head to print major US indices are drifting off of session highs up around 1%.

Expand article