The global financial landscape faces a volatile Monday as U.S. airstrikes on three Iranian nuclear sites have reignited fears of a broader Middle East conflict, sending shockwaves through energy markets and investor sentiment.
đ„ Geopolitical Flashpoint
President Donald Trump confirmed the strikes as a âpressure tacticâ to bring Tehran back to the negotiating table, but analysts warn the move could escalate into a wider confrontation. The Strait of Hormuz, a critical oil transit chokepoint, has been flagged as a high-risk zone, with shipping insurers doubling tanker rates and rerouting vessels.
âThe risk premium on oil is back with a vengeance,â said Jorge Navarro, energy strategist at Saxon Markets. âIf the Strait is compromised, $120 oil isnât out of the questionâ.
đ Market Fallout
- Brent crude futures surged nearly 18%, briefly touching $79 per barrel before settling around $77
- West Texas Intermediate (WTI) hovered near $75
- S&P 500 and Nasdaq closed lower Friday amid fears of inflation and war escalation
- Investors rushed to safe havens like the U.S. dollar and gold, driving up prices
đŠ Economic Implications
The spike in oil prices threatens to derail central banksâ plans to cut interest rates, potentially reigniting global inflation just as economies attempt to stabilize.
âEquities are on a knifeâs edge,â warned Mona Kessler, portfolio manager at Trident Global.
đź What to Watch on Monday
- Oil price gaps at market open
- Iranâs potential retaliation and regional military responses
- Central bank reactions to inflationary pressures
- Investor sentiment in emerging markets and energy-dependent economies
Stay tuned for real-time updates as global markets react.
