IRAN: Iran Warns of Response if Israel Does Not Stop Lebanon Attacks

Early London trade in the TYWK263 109.00 puts sees 6K sold down from 0-12 to 0-11. These expire on Wednesday, OI of ~8K as of Friday.

• "BANK OF ENGLAND'S GREENE SAYS: SOME OF GLOBAL ECONOMY RESILIENCE TO IRAN WAR IS DUE TO INVENTORIES" - Reuters
• "SECOND-ROUND EFFECTS OF ENERGY PRICE SHOCK WON'T SHOW UP FOR ANOTHER YEAR"

Greene speaking from an FT summit in Italy on the Luxury sector - no released speech here, just panel comments. She adds:

• "WE HAVE TO WORRY ABOUT WAGE AND PRICE-SETTING"

Her broader view on policy had already been particularly concerned with second round effects from the energy spike - stating in mid-April that successive supply shocks mean households are now more sensitive to inflation, and that the UK may see "mini-waves" of inflation ahead due to the Iran war.

A spokesperson for the Iranian Foreign Ministry notes that Iranian and Omani technical teams met last week to negotiate a mechanism for safe travel through the Strait of Hormuz, with the two countries in continuous contact (along with Iran being in contact “with all relevant parties”).

• These comments are taken as slightly dovish by the market, despite the ongoing U.S. blockade of the Strait, helping crude oil lower providing some spill over support for bonds.