Traders are bracing for the weekend amid escalating tensions between the U.S. and Iran, while concerns ripple through markets, particularly affecting listed private equity funds.
U.S.-Iran Tensions Rise
U.S. President Donald Trump has given Iran a deadline of 10 to 15 days to negotiate a deal regarding its nuclear weapons program, warning of “really bad things” if no agreement is reached. The U.S. has increased its military presence in the region with aircraft carriers, warships, and jets, preparing for a potential conflict, and traders anticipate increases in oil prices and the value of the dollar should conflict erupt. Iran has stated it will respond if attacked.
Market Impact and Economic Data
Brent crude futures have risen to over $72 a barrel, reaching a 6-1/2 month high. The dollar was firm during the Asia session. Walmart’s new CEO expressed caution regarding consumer spending on Thursday.
Private Equity Concerns
Private equity stocks experienced declines following Blue Owl’s announcement of a strategy to return capital from a debt fund. Blue Owl sold $1.4 billion in assets to return proceeds to investors and removed an option for quarterly redemptions at one fund, exacerbating existing concerns about valuations and liquidity within private equity funds.
Key developments expected to influence markets on Friday include the release of U.S. PCE and GDP data, global PMI surveys, and earnings reports from Danone, Air Liquide, and Anglo American.
Trump also discussed government files related to aliens and unidentified flying objects on social media, stating he would order Pentagon chief Pete Hegseth and other agencies to release them.
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