Marginally Higher, Market Awaits US Response To Jordan Attack

Brent is higher versus end Monday levels, although has largely tracked sideways in the first part of Tuesday trade. We were last around $82.65/bbl, around 0.30% firmer, but this follows Monday's 1.38% drop. WTI was last just above $77/bbl, showing a similar trajectory to Brent so far today.

• News flow has been reasonably light so far today, with markets waiting for the US response following the attack on its troops stationed in Jordan over the weekend. The most likely outcome is a strike on Iranian assets in the Middle East, but not within Iran itself (see this link).
• A number of US officials have stated that the US will respond but is not seeking to escalate the conflict.
• Elsewhere, the US administration may re-instate sanctions on Venezuela's energy sector if the country does not allow the opposition leader to run for President (see this BBG link).
• For Brent, recent lows rest near $82/bbl. Note the simple 200-day MA is near $81.70/bbl. On the topside, focus is likely to rest on whether we can test the $85/bbl.