MONEY MASTER

Emerging-market assets came under pressure as escalating tensions involving Iran triggered a surge in oil prices and renewed demand for safe havens. A broad gauge of developing-nation currencies fell 0.5%, marking a second straight session of declines, while emerging-market equities dropped as much as 1%, the sharpest fall in over two weeks. Brent crude surged to its highest level in more than a year amid fears of supply disruption. What’s Driving the Move Key developments: Rising geopolitical tension in Iran Threat of disruption to the Strait of Hormuz Brent crude jumping above US$70, with upside risk US dollar and gold strengthening The Strait of Hormuz handles roughly 20% of global oil flows, making it a critical chokepoint for energy markets. According to Bloomberg Economics, oil could surge toward US$108 per barrel if the strait were effectively closed. Money Master Take This is an oil-driven macro shock — and EM is the first casualty. 1. Oil Importers Are Most Vulnerable Strategi...

  Oil prices inched higher during early trade on Monday, supported by concerns that ongoing conflict in the Middle East may disrupt supply from the key producing region, and expectations that the recent US interest rate cut will stimulate demand. Brent crude futures for November delivery rose by 20 cents (0.3%) to US$74.69 per barrel, while US crude futures for November gained 22 cents (0.3%) to US$71.22 per barrel as of 0045 GMT. Both contracts saw gains in the previous session, buoyed by the US rate cut and a dip in supply following Hurricane Francine . The US Federal Reserve’s half-point interest rate cut last Wednesday, larger than expected, has bolstered hopes for increased economic activity and energy demand . A weaker US dollar has also boosted investor sentiment. However, concerns linger over the possibility of a slowing job market , which could affect the broader economic outlook. Further elevating prices are geopolitical tensions in the Middle East, with figh...