Clearing Event
US stocks are rallying so far this morning following President Trump’s announcement of a ceasefire agreement between Israel and Iran (though both sides appear to have violated the ceasefire already). Markets do not seem particularly worried that this will lead to an escalation of the conflict, however, and the early action appears to clearly be signaling the worst is in the rearview mirror.
Equities and Oil are both confirming this view. Crude oil sold off -8% yesterday along with Energy stocks (-2.5%). Oil is seeing additional weakness this morning, falling towards $66/bbl. The bottom line is that markets are signaling Iranian oil supply will not be disrupted.