Arkea AM flags Brent above $89 as US-Iran strikes lift oil risk premium
XLE•Central banks keep pressure on yields
Fed Chair Kevin Warsh struck a hawkish tone at Jackson Hole; markets priced a September hike at over 60% probability.
US Treasury yields ended at 4.35% (2-year), 4.72% (10-year), 5.21% (30-year), with a +37 bp 2s10s spread.
Euro zone inflation accelerated; markets expected a 25 bp ECB hike on Sept. 9, with the 10-year Bund at 3.28%.
Energy risk premium rises after US-Iran strikes
Arkea Asset Management flagged renewed geopolitical and trade tensions, lifting energy risk premiums while central banks kept pressure on yields.
Brent jumped above USD 89, closing at USD 89.31, following US strikes on Iranian rocket launchers and Iran’s retaliation.
