Markets on edge as US-Iran tensions flare, oil prices under pressure

Global financial markets are experiencing heightened anxiety after the United States and Iran engaged in missile exchanges over the weekend. Adding to the tension, Iran has declared the Strait of Hormuz closed to shipping, a move that is expected to put upward pressure on oil prices.

The Strait of Hormuz is a critical chokepoint for global oil transportation, and any disruption to shipping in the area can have significant ripple effects on energy markets. The declaration by Iran has led to concerns about potential supply shortages and price volatility.

This week's economic calendar features key data releases that could influence market sentiment. In the US, consumer and producer inflation figures are due, which may impact the Federal Reserve's stance on interest rates. China will release its second-quarter GDP numbers, along with retail sales, industrial production, and infrastructure spending data. These figures will provide insights into the health of the world's second-largest economy, with a consensus view suggesting a noticeable slowdown in growth.

Australian markets are also bracing for a data-light week, with private sector surveys on business conditions and consumer sentiment expected. Recent readings have indicated a pessimistic outlook among both businesses and consumers, and this week's figures are unlikely to show significant improvement.

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Some traffic in Iran's lane, but it's very dead.