Hello, my name is Leonie Kidd and I’m from London. Welcome to another edition of CNBC’s Daily Open.
US President Donald Trump continues to dominate the news cycle, with his latest round of talks with reporters in the Oval Office generating more headlines and market action this morning. It’s only Tuesday, but it’s already been a volatile week for oil, which remains the mainstay of the trade.
Not only market participants, but also journalists like us, need to stay abreast of trends.
What you need to know today
Oil prices soared more than 2% on Tuesday amid uncertainty over the U.S.-led coalition to protect ships transiting the Strait of Hormuz. President Donald Trump suggested on Monday that the coalition is not fully in place, while urging other countries to join.
He expressed frustration: “Some people are very enthusiastic, some people are not so keen… and some people just won’t do it.”
Meanwhile, the United States is considering postponing a meeting between President Trump and Chinese President Xi Jinping due to the conflict with Iran. “There are no tricks or anything. It’s very simple. There’s a war going on. I think it’s important that I’m here,” he said at a news conference in the Oval Office.
Returning to the Middle East, the United Arab Emirates reopened its airspace on Tuesday after a brief closure as Iran continues its missile and drone attacks. The UAE Ministry of Defense announced that its air defense forces have intercepted more than 300 ballistic missiles and more than 1,600 unmanned aerial vehicles.
High volatility prompted the Reserve Bank of Australia to raise interest rates. The central bank raised its benchmark policy interest rate for the second time in a row, citing concerns about inflation risks from the Iran war.
Stock markets on Tuesday saw gains in auto and tech stocks, with stocks in the Asia-Pacific region rising. Nvidia announced strong revenue forecasts for key chips and partnerships with automakers in the region. European and US futures are in early trading with little sense of direction.
— Leonie Kidd
And finally…
Why traders are nervous about Iran’s $200 oil price warning
Energy analysts and traders said Monday they would not be surprised if oil prices rose to $200 a barrel as the massive Middle East crisis drags on.
The move comes as the U.S.-Israel-led war against Iran has effectively halted traffic in the strategic Strait of Hormuz in recent weeks, disrupting oil production and shipping in the region.
— Sam Meredith
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