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Oil in the new age of volatility

High prices will undermine Trump’s plans to drive inflation lower and make it harder for the Federal Reserve to cut rates

In recent years, June Fridays have often been viewed by financiers as a good moment to work from home. Not now. 

As news spread about the Israeli air strikes on Iran, traders across Wall Street and London — not to mention Asia — rushed back to their offices to prepare for the inevitable storm.

It swiftly materialised: oil prices surged (initially by around 13 per cent), stock prices fell (initially by 1 per cent in the US), and the dollar reversed its recent downward slide. And while these moves were later partly erased, volatility is likely to stay high; particularly since US President Donald Trump has warned that without a deal the next “already planned attacks” by Israel will be “even more brutal”.

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