War rages on in the Middle East. US/Israeli forces expand attacks on key Iranian targets, while the Iranians retaliate, hitting military targets across the Middles East and as far afield as Cyprus. The war engulfs the region, with little sign of an early end, while the fog of war makes it hard to determine the extent of the damage. The US will be looking for a quick resolution, but Iran is looking to survive and inflict some serious cost on the US and Israel. Oil prices surged, blowing through USD$70/barrel, while global equities experienced understandable volatility. The US Dollar attracted safety flows, with the EUR falling below 1.1700, while the GBP crashed below 1.3400.The rising reserve impacted commodity currencies, with the AUD falling back to 0.7060, while the NZD slipped to 0.5930. The extent of market disruption will be determined by the longevity of the war.
