Daily Financial Breakfast 9 November 2026: China Extends Suspension of 24% Tariff as WTI Approaches $87

Market News Today: Oil Falls as Diplomacy Advances and China Inflation Eases

• WTI's decline towards $87 a barrel continued as diplomatic engagement between the US and Iran increased. President Donald Trump said additional strikes were highly unlikely provided talks moved forward.
• An additional 24% tariff on US imports will remain suspended for another two months from November 10, China announced, with 10% tariffs staying in place.
• At 0.7% year on year, China's October consumer inflation slowed from September's 0.9% and fell short of the 0.8% market consensus.
• Readiness to tighten monetary policy more rapidly was evident in Bank of Japan meeting minutes, as the yen appreciated against the dollar.

Markets Reflect Policy and Diplomatic Developments

GBP/USD and EUR/USD Recover as USD/JPY Falls

After slipping to around 158.25 early in Monday's Asian session, USD/JPY changed hands around 158.00 during European trading. Two consecutive days of losses gave way to gains for GBP/USD, which reached near 1.3370, and EUR/USD, which advanced to around 1.1150.

Energy Markets Respond to & Geopolitics

WTI Extends Decline Towards $87 as US-Iran Talks Gather Momentum

From around $89.60 during Asian trading on Monday, West Texas Intermediate crude continued lower towards $87 a barrel as diplomatic activity aimed at avoiding fresh US-Iran hostilities increased. Renewed optimism about a possible agreement was behind Brent's drop of around 16% last week and its further decline early this week, according to MUFG's Lee Hardman.

Speaking to CNN, President Donald Trump said progress in talks over Iran's nuclear programme and the reopening of the Strait of Hormuz would make it “highly unlikely” that he would order additional strikes on Iran. Whether the parties signed “a very strong agreement” would determine his decision, he said.

No agreement was announced, and the US secretary of state's assessment was more restrained: “I wouldn’t say we’re on the verge of a breakthrough.”

China Maintains Tariff Relief

China Keeps Additional 24% Tariff on US Imports Suspended for Two More Months

Effective November 10, the suspension of an additional 24% tariff on imports from the United States will be prolonged by two months, China's Finance Ministry said on Monday. The ministry confirmed that 10% tariffs would still apply.

US President Donald Trump and Chinese President Xi Jinping are expected to meet at APEC in China next week, following the announcement.

Inflation Eases & Bank of Japan Signals Tightening Readiness

China's October Inflation Eases to 0.7% and Undershoots Forecasts

October brought a 0.7% annual rise in China's Consumer Price Index, according to Monday's release from the National Bureau of Statistics. This was below both September's 0.9% inflation rate and the market consensus of 0.8%.

Yen Strengthens as Bank of Japan Minutes Point to Faster Tightening

Even with strong US employment data, the yen gained against the dollar on Monday as Bank of Japan meeting minutes highlighted policymakers' willingness to increase the pace of monetary tightening. No policy change was announced in the minutes; instead, they brought a possible December rate increase into focus.

Diplomatic Talks and US Inflation Releases Lie Ahead

• Trump and Qatar's Prime Minister to Discuss Iran (9 November 2026, 17:00 GMT): A White House meeting between President Donald Trump and Qatar's prime minister would address a new ceasefire and the resumption of nuclear talks with Iran, Reuters reported.
• US to Publish October Consumer Price Index (10 November 2026): Consumer inflation data for October are due for publication. The absence of October 2025 index levels, which were not produced during the government shutdown, means year-on-year rates cannot be calculated, Deutsche Bank said.
• US October Producer Price Index Follows September Increase (13 November 2026): Producer-price data for October are due after a month-on-month increase of 0.32% in September.