On Monday, the already shaky ceasefire between the U.S. and Iran was on the verge of collapse, the UAE was attacked for the first time since the temporary U.S.-Iranian ceasefire, the U.S. launched a “Freedom Program” to help ships through the Strait of Hormuz, and Iran said two missiles hit a U.S. warship, but was later refuted by the U.S. Central Command. Investor panic increased, worried about the war on the global economy will further expand the impact.
Due to the escalation of U.S.-Iranian tensions pushed up risk aversion, the dollar index strengthened, and ultimately closed up 0.25% at 98.46; U.S. bond yields rose across the board, the benchmark 10-year U.S. bond yields closed at 4.442%, the Federal Reserve’s policy rate-sensitive 2-year U.S. yields closed at 3.962%, the 30-year U.S. bond yields for the first time since last year’s July, exceeding 5%.
Precious metals were pressured lower by rising interest rate pressures due to inflation concerns. Spot gold approached the $4,500 mark during the session and eventually closed down 1.97% at $4,523.88/oz; spot silver closed down 3.49% at $72.73/oz.
International oil prices rebounded strongly as Iran claimed to have hit a U.S. warship and news of the attack on the UAE caused oil prices to rally sharply during the session. wti crude oil finally closed up 2.24% at $106.23/barrel; brent crude oil finally closed up 4.38% at $112.28/barrel.