President Trump Rejects Iran’s Response, but the Reaction Is Limited to Oil and Bonds

The American consumer, facing real wage contraction, leans heavily on credit cards to get by despite sky-high interest rates and delinquencies.

Key Takeaways

• Another Obstacle to Peace: The big news overnight (if you want to call it that) is that President Trump has deemed Iran’s reply to his one-page memorandum to be unworkable, with the implications being that the Strait of Hormuz will remain shuttered indefinitely. Brent crude has responded in kind, spiking +3% to $105 per barrel, and WTI is back making an approach to $100 per barrel.