Asia Open
No Deal
And the U.S. begin Strait Blockade
EMERGING ASIA
The all important U.S.-Iran weekend talks in Pakistan ends with no deal. Moreover, Trump announced that U.S. navy will now be setting up blockade in the Strait of Hormuz. While he mentioned he will be targeting Iranian ports only, it is hard to see Iran not retaliating by targeting other tanks passing through. It looks like Trump's masterplan was never to reopen the Strait, but rather a global energy kidnap. Seizing Venezuela is just a fail safe to keep U.S. oil supply abundant and opening up more oil sales for the U.S..
Obviously, we are seeing oil price jumping above 100 USD/b and risk asset tanking on Monday open. The magnitude rest on the extent of U.S. blockade and Iranian retaliation.