Equities surge on renewed hops of de-escalation in the Gulf

• Global equities, including US majors, Nikkei, and Kospi, rallied on hopes of de-escalation in the US-Iran conflict.
• President Trump indicated US military forces could leave Iran in 2-3 weeks, even without a deal, but also criticized European allies.
• The UAE is reportedly willing to join efforts to force open the Strait of Hormuz, while other Gulf states have divided opinions on military action versus diplomacy.
• Analysts warn that prolonged closure of the Strait of Hormuz could push oil prices to $200/barrel and potentially erode the dollar's petrodollar dominance in favor of the petro-yuan.
• Gold experienced its worst month since 2013, while Bitcoin saw back-to-back quarterly losses, reflecting complex market dynamics amid inflation fears and shifting safe-haven perceptions.

Global equities surged on hopes of de-escalation in the Iran conflict, with US majors, Nikkei, and Kospi seeing significant gains. However, underlying geopolitical tensions, potential threats to the Strait of Hormuz, and the long-term stability of the petrodollar remain key concerns for analysts.