Daily Financial Breakfast 9 November 2026: $87 in Sight for WTI as China Prolongs 24% Tariff Suspension

$87 WTI: Today's Market News Highlights

• WTI's losses deepened towards $87 a barrel. US-Iran diplomatic activity gathered pace, while President Donald Trump said further strikes were highly unlikely if negotiations advanced.
• From November 10, China's suspension of an additional 24% tariff on US imports will run for two more months, the country announced. The 10% tariffs will stay in force.
• At 0.7% year on year, China's October consumer inflation was below the 0.8% market consensus and down from September's 0.9%.
• The yen gained against the dollar as Bank of Japan meeting minutes showed policymakers' readiness to step up the pace of monetary tightening.

Market Moves in Focus

Currency Performance

Around 158.25 was the level reached by USD/JPY as it declined in early Asian trading on Monday; the pair later traded around 158.00 in European hours. A rise to near 1.3370 brought GBP/USD's two-day losing run to an end. EUR/USD also recovered after two days of falls, climbing to around 1.1150.

Energy Markets & Geopolitical Developments

$87 in Sight for WTI as US-Iran Diplomacy Gathers Pace

After trading around $89.60 in Asian hours on Monday, West Texas Intermediate crude fell further towards $87 a barrel. Efforts to avert renewed US-Iran hostilities through diplomacy intensified. According to MUFG's Lee Hardman, Brent's decline of around 16% last week had extended into the start of this week, reflecting renewed optimism about a possible agreement.

Progress in negotiations on Iran's nuclear programme and reopening the Strait of Hormuz would make further strikes on Iran “highly unlikely”, President Donald Trump told CNN. Whether he ordered them would depend on the parties signing “a very strong agreement”, he said.

A more guarded view came from the US secretary of state: “I wouldn’t say we’re on the verge of a breakthrough.” An agreement had not been announced.

Tariff Policy Developments

24% Additional Tariff on US Imports: China Prolongs Suspension

A two-month extension to the suspension of an additional 24% tariff on imports from the United States will take effect on November 10, China's Finance Ministry announced on Monday. According to the ministry, the 10% tariffs will continue to apply.

Next week's expected meeting between US President Donald Trump and Chinese President Xi Jinping at APEC in China provided the backdrop to the announcement.

Inflation Trends & Monetary Policy

0.7% October Inflation in China Falls Short of Forecasts

A 0.7% year-on-year increase in China's Consumer Price Index for October was reported by the National Bureau of Statistics on Monday. That marked a slowdown from September's annual inflation rate of 0.9% and was below the 0.8% market consensus.

Faster Tightening Remains an Option, Bank of Japan Minutes Show

A willingness to quicken monetary tightening emerged from the Bank of Japan's meeting minutes. Rather than announcing a policy adjustment, the minutes put the prospect of a December rate increase in focus. Despite strong US employment figures, the yen appreciated against the dollar on Monday.

Key Events Ahead

• Trump Meeting With Qatar's Prime Minister (9 November 2026, 17:00 GMT): A new ceasefire and the resumption of nuclear talks with Iran would be on the agenda when President Donald Trump met Qatar's prime minister at the White House, Reuters reported.
• October US Consumer Price Index Release (10 November 2026): The release of October consumer inflation is scheduled for this date. According to Deutsche Bank, year-on-year rates cannot be calculated because the government shutdown prevented the production of October 2025 index levels.
• October US Producer Price Index Release (13 November 2026): Following September's month-on-month rise of 0.32%, October's producer-price figures are due for release.