Key headlines from global financial media overnight and this morning include:
1. Trump Pledges Israel Will Not Attack Key Iranian Gas Field 2. Oil Prices Reverse Gains After Brent Briefly Tops $119; Israel Reported to Aid Strait Reopening 3. Qatar's LNG Supply Reportedly Cut by 17% Due to Iranian Strike; Asian Buyers Expected to Be Severely Impacted 4. JPMorgan and Goldman Sachs Provide Hedge Funds Tools to Short Private Credit 5. US Justice Department and White House Reportedly Back Prosecutors' Appeal to Advance Fed Chair Powell Probe 6. Inflation Fears Grip Global Markets; Gold and Silver Sell-Off Worsens
Trump Pledges Israel Will Not Attack Key Iranian Gas Field US President Donald Trump stated that Israel will no longer target Iran's natural gas infrastructure, following what was described as a "fierce strike" by Israel on a processing facility at the world's largest gas field. Media reports citing the US President indicated that Trump issued a warning on social media, suggesting Israel could launch further strikes if Iran retaliates again. Israel's attacks this week targeted the field Iran calls South Pars, which it shares with Qatar (where it is known as the North Field). In response, Iran called for the evacuation of some oil and gas facilities in neighboring countries and subsequently carried out retaliatory strikes, including targeting Ras Laffan, the liquefied natural gas hub of QatarEnergy. Qatar reported "extensive damage" to the facility. Concurrently, Saudi Arabia reported intercepting four ballistic missiles aimed at Riyadh. The United Arab Emirates stated it had suspended operations at a gas facility due to missile-related incidents and debris.
Oil Prices Reverse Gains After Brent Briefly Tops $119; Israel Reported to Aid Strait Reopening US oil prices turned lower on Thursday after Israel indicated it was assisting in efforts to reopen the critical Strait of Hormuz shipping lane. The international benchmark Brent crude futures for May delivery fell approximately 2% to $104.79 per barrel, after briefly climbing above $119 per barrel during the session before reversing. US West Texas Intermediate crude futures fell over 3% to $93.33 per barrel after gaining earlier in the day. The decline in US prices followed a report that Israeli Prime Minister Benjamin Netanyahu told media outlets that Israel was assisting the US in opening the Strait of Hormuz. Netanyahu also stated that Iran had lost its capability to enrich uranium and produce ballistic missiles. The Prime Minister added that the war might end sooner than people think.
Qatar's LNG Supply Reportally Cut by 17% Due to Iranian Strike; Asian Buyers Expected to Be Severely Impacted The CEO of QatarEnergy told Reuters that recent Iranian attacks damaged production facilities, impacting approximately 17% of the country's liquefied natural gas export capacity. CEO Saad al-Kaabi was quoted as saying repair work could take three to five years. The escalation in hostilities caused natural gas prices to surge. European natural gas futures contracts spiked as much as 35% during early Thursday trading, reaching levels more than double pre-conflict prices. The sharp increase also highlighted the long-term inflation risks stemming from the Middle East conflict, now in its third week. QatarEnergy stated that an Iranian missile caused significant damage to the Ras Laffan gas field, home to the world's largest LNG plant. The incident marks a further escalation in hostilities, following a series of attacks on oil and gas infrastructure across the Middle East in recent days.
JPMorgan and Goldman Sachs Provide Hedge Funds Tools to Short Private Credit Investment banks including Goldman Sachs and JPMorgan Chase are providing their hedge fund clients with ways to bet against the $1.8 trillion private credit market, according to people familiar with the matter. The firms have assembled baskets of publicly traded companies with exposure to the sector, the people said, requesting anonymity as the discussions involve customized products. Goldman's index offerings are distinct, including one focused on European financial institutions with private credit exposure; a basket covering Business Development Companies (BDCs); and a broader basket of alternative asset managers. JPMorgan's basket includes alternative asset managers and BDCs, the people said. Clients can also invest in these indices.
US Justice Department and White House Reportedly Back Prosecutors' Appeal to Advance Fed Chair Powell Probe Senior leadership at the US Justice Department supports federal prosecutors moving forward with an appeal to advance an investigation into Federal Reserve Chair Jerome Powell, and the White House has not opposed the action, according to sources. People familiar with the matter indicated that President Trump had initially been open to dropping the probe into Powell until a judge rejected a Justice Department subpoena issued to the central bank last Friday. Trump was angered by the ruling, the sources said, as he has long believed courts are biased against him. His aides and allies believe he will support prosecutors pursuing an appeal. Shortly after the subpoena was quashed, US Attorney Jeannie Rhee announced she would appeal the court's decision. Trump has not publicly commented on Rhee's move, though some of his aides were reportedly surprised by it.
Inflation Fears Grip Global Markets; Gold and Silver Sell-Off Worsens Gold and silver joined a broad sell-off across global assets on Thursday, with prices falling approximately 5% and 10% respectively, driven by fears surrounding the Iran conflict and inflation. Spot gold plunged over 3% to $4,654.29 per ounce, while the most active gold futures contract tumbled about 5% to around $4,648.20 per ounce. Spot silver dropped over 3% to $72.62 per ounce, and silver futures slumped more than 8% to settle at $71.25 per ounce.
