Good morning and welcome to Markets Desk, your midday read on what's moving markets and why.
Oil is at the center of the macro story right now. U.S. military strikes against Iran have clouded the path toward any durable peace deal, even as President Trump says negotiations are proceeding nicely. The caveat that military action could resume if talks collapse is keeping a floor under crude and a ceiling on risk appetite.
Pulling in the same direction, the Financial Times is making the case that Iran may be emerging from this confrontation in a stronger negotiating position than expected — more hardline, more confident, and potentially better resourced to rebuild its nuclear program. That framing matters for bond markets and energy traders alike, because it suggests any ceasefire could be fragile rather than structural.
Meanwhile, north of the border, Canadian equities are pointing to a firm open this morning. Bay Street is taking its cue from optimism around a potential U.S.-Iran agreement and a sharp pullback in oil prices, which traders there are reading as relief for inflation and growth concerns. The loonie and rate-sensitive sectors will be worth watching as that session gets underway.
That's the tape. Markets Desk, signing off the floor.
