US president demands compensation for damage incurred by US, complicating standoff with Tehran
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Oi prices have risen slightly this morning to the highest levels in more than a week, as hopes receded of a deal between the US and Iran to end the war and reopen the strait of Hormuz, after Donald Trump demanded compensation for damage incurred by the US.
We’re going to ask for money for the damage they’ve done over a 50-year period. So if there’s damages to be paid, I think Iran should pay those damages.
This is going to be almost a war of attrition now. You probably can see the [oil] market sitting around the $75 to $95 range while we wait to see who blinks first.
We still retain the view that the Fed or the Bank of England will not hike rates, though the European Central Bank may be tempted to deliver another hike at the September meeting. Tomorrow’s inflation data would be key for setting the tome of markets for the coming weeks. Our view is that this month’s and next month’s inflation data would be benign and would offer some room for [Fed chair Kevin] Warsh not to hike rates.
1.15pm BST: US ADP employment change for last week
3pm BST: US Existing home sales for July
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