Source:
Summary
Stock futures rallied on Sunday evening as the US and Iran appeared to step back from escalating violence in the Persian Gulf. Futures tied to the Dow Jones industrial average rose 101 points, or 0.19%, while S&P 500 futures were up 0.45% and Nasdaq futures jumped 0.64%. Energy markets remained spooked due to the threat of fighting around the Strait of Hormuz. US oil futures climbed 1.5% to $70.29 a barrel, and Brent crude rallied 1.1% to $72.80. According to sources, both sides agreed to halt attacks and meet in Qatar on Tuesday to resolve differences over the Strait of Hormuz.
Our Reading
The numbers tell one story.
Iran launching new attacks on Kuwait and Bahrain, while threatening a “complete halt” to peace talks, sounds familiar. The US Navy is making a point of showing that the alternate route through the Strait of Hormuz is still safe. Iran observers note the regime is forcing the US into an escalation trap over the Strait of Hormuz. For its part, Tehran isn’t budging from its position that control over the strait rests with Iran. The situation is a delicate balancing act between diplomacy and military action. The US and Iran are engaging in a high-stakes game of chicken over the Strait of Hormuz.
