Symbolic US House resolution limits Trump’s Iran military authority as banks warn of potential $150 Brent crude amid Gulf tensions.
The US House of Representatives passed a resolution restricting President Donald Trump’s war powers against Iran by a 215-208 vote. The measure is largely symbolic and unlikely to alter military policy but reflects growing congressional unease over escalation risks in the Gulf region.
Major banks, including HSBC, have flagged rising concerns over oil supply disruptions, with $150 per barrel Brent crude no longer considered a tail risk. Analysts cite potential non-linear price spikes if the Strait of Hormuz faces closure, though this remains outside base-case scenarios.
Market sentiment remains cautious as traders monitor geopolitical developments, with the yen under pressure and Asia-Pacific FX volatility elevated. RBA officials, including Governor Michele Bullock, are set to deliver hawkish testimony in parliament today.