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There are rumours that U.S. airstrikes are ready to start hitting Iranian targets in Syria.  

More to come…

Market implications:

This is not positive for risk and could counter some of the risk-on sentiment following the dovish rhetoric delivered in Powell’s testimony to Congress overnight.   Meanwhile,  Oil prices  have been on the rise.  “The latest rise in prices comes on the back of  reports that the US considering letting Venezuelan waivers expire for Chevron and other US companies, which would significantly hasten the deterioration in Venezuelan crude production, which is already some 1.6m bpd below its June 2015 levels,” analysts at TD Securities explained, adding, that further supporting prices are the “boiling tensions with Iran, which continue to rise as Rouhani considers ‘consequences’ for the UK’s decision to seize an Iranian  oil  tanker”.  

“We continue to suspect that the combination of continued OPEC+ supply discipline, lower US inventories, Libyan and Venezuelan production risks, along with boiling Iran-tensions  will all help to lift crude higher, even as demand expectations moderate somewhat. For momentum followers, trends are weak.”