• Crude Oil jumps over 2% on Monday after the Biden administration verbally pushed back on targeting Iranian oil fields. 
• Markets are pricing in even more risk premium, with uncertainty ruling now over Israel’s next step in this escalation. 
• The US Dollar Index steadies near recent highs ahead of a Fed-packed Monday. 

Crude Oil is sprinting higher on Monday after Israel got a red light on its request to bomb Iranian oil fields. United States (US) President Joe Biden said on Friday that it was under consideration, suggesting that other targets should be looked for instead. With no headlines that the Biden administration has given the green light, it looks like Israel will revert to other actions, which adds to even more uncertainty. 

The US Dollar Index (DXY), which tracks the performance of the Greenback against six other currencies, is trading broadly flat on Monday. All eyes will be on the September’s US Consumer Price Index (CPI) release later this week. In the run-up to those numbers, markets will hear from no less than four Fed officials this Monday.