Oil Prices Off Opening Highs, US Equity Futures Lower, USD Slightly Higher

Oil prices spiked higher at the open. The front month Brent contract getting to $84.80/bbl, before coming off. We last tracked near $84.00/bbl, still +0.50% above Friday closing levels. WTI is up by a similar amount, last around $78.40/bbl (earlier highs were at $79.29/bbl).

• These moves follow both the late Friday Houti attack on a Russian linked carrier in The Red Sea. We have also had news of US soldiers under attack in Jordan, near the border with Syria, reportedly by Iranian backed militia (with 3 fatalities). US President Biden has stated "We shall respond" at a campaign event in the US on Sunday.
• Spill over elsewhere though has been fairly limited. US equity futures are trading with a risk averse tone, although the active Eminis and Nasdaq futures are only down 0.20% at this stage.
• US Tsy futures spiked higher at open but there was no follow through, last 111-07+, versus earlier highs of 111-10+. Cash US yields sit close to unchanged.
• In the FX space, the USD is modestly higher, with the BBDXY up nearly 0.10% to 1237.85. USD/JPY is back to 148.30, but remains within recent ranges. AUD and NZD are slightly outperforming, with both a touch above NY closing levels from Friday.