Markets pricing in longer US-Iran war following conflict escalation, says Kyle Rodda | The Business

A dramatic escalation in shipping attacks in the Middle East war has reverberated through global markets.

The latest tit-for-tat strikes on tankers have pushed the oil price above $US100 a barrel and wiped tens of billions of dollars off the value of the ASX on Thursday.

Capital.com's Kyle Rodda says the markets are pricing in a more protracted war, where there are going to be periodic flare-ups.

Investors hoping for an imminent exit ramp have been disappointed by President Donald Trump's latest timeline for the conflict, when he said he thinks "the war is going to end immediately after the election...because they can't hold out any longer."

Meanwhile, the bond market also continues to flash red. The yield on the US 10-year Treasury bond has risen to a three-year high of 4.86 per cent in protest over US Treasury Secretary Scott Bessent's attempt to push down rates, with a $US6 billion bond buyback.

Kyle Rodda joined The Business from London. He and host David Taylor also discuss the new Apple foldable phone - which has a a $3,499 price tag - and what that means for the company and its new boss, John Ternus' reputation.
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