Morning Bid: Oil surges on US blockade of Iran

A look at the ‌day ahead ​in ​European and global markets from Tom Westbrook

Oil futures jumped back over $100 at the open in Asia ‌on Monday, the dollar fell and stocks were down ⁠as U.S.-Iran talks collapsed without making progress toward any durable peace. [MKTS/GLOB]

The U.S. ‌also announced a blockade ‌of Iranian ports nL6N40V09S, a measure aimed at ratcheting up pressure on Tehran, as well as on the recipients - ​mainly China - of Iranian crude.

The blockade, experts say nL1N40V06L, is an act of war that requires an open-ended commitment ⁠of a significant number of warships. The cut to global supply, if Iranian ​exports are removed, would be up to 2 million barrels per day.

Soft commodities also rose sharply on ​heightened concern about disruption to fuel ‌and fertiliser supplies, and bonds were sold on worries about the risks to inflation. [GRA/]

Hungary's forint ⁠shot higher nL1N40W01F after the defeat of Viktor Orban nL8N40V07J at Sunday's election nL1N40V01B paved the way for European Union funding to ⁠flow nL1N40Q0A6 to Hungary and perhaps Ukraine.

Other reactions in the Asia session ​to the breakdown of U.S.-Iran talks, however, were not extreme and sent most asset prices back to where they sat around the middle ‌of last week, before the U.S., Israel and Iran agreed a ceasefire.

That will leave markets ‌trading the headlines while U.S. earnings season begins in earnest ⁠nL6N40T177 with Goldman Sachs reporting ‌before the market ​opens.

Key developments that could influence markets on Monday:

- Hungarian election result

- U.S. earnings: Goldman Sachs

(Editing by Sonali ‌Paul)

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