Oil surged while stocks and bonds fell as a brief bout of market optimism unraveled after President Donald Trump ordered a blockade of the Strait of Hormuz, escalating tensions with Iran after weekend peace talks collapsed. Brent crude jumped 7.3% to just above $102 a barrel on concern a blockade will disrupt energy flows through the key waterway. Asian shares dropped 0.9%, while S&P 500 futures pared earlier losses to trade 0.8% lower as higher oil prices threatened to weigh on economic growth. Tech companies such as MediaTek Inc. showed resilience, supported by robust sales. The dollar, which has been the haven of choice since the Middle East conflict began, strengthened against all its Group-of-10 peers. Treasuries fell and Japan’s 10-year yield rose to 2.49%, the highest since 1997 on inflation concerns. Trump’s escalation curbed appetite to build on last week’s ceasefire-driven gains in equities, prompting a more cautious tone across markets. Even so, the relatively modest pullback in stocks following the weekend’s developments suggests investors retain some guarded optimism that a resolution may still be reached and limit the broader impact of the conflict. The US will begin implementing a blockade of all maritime traffic entering and leaving Iranian ports on Monday at 10 a.m. New York time, the US Central Command said, following up on Trump’s announcement. US forces won’t impede freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports. Iran said it “won’t allow” the blockade to go ahead. Trump said the US will interdict any vessel that has paid a toll to Iran for safe passage through Hormuz and will clear mines in the strait. A blockade would halt the nearly two million barrels a day of Iranian oil that’s been passing through the waterway, further squeezing global supply and cutting off a vital lifeline for the Islamic Republic. Elsewhere, Hungary’s currency gained versus the euro and the dollar after Prime Minister Viktor Orban was ousted in a landslide victory for the pro-European opposition in Sunday’s election. The result is seen as the most bullish outcome, as it would help unblock access to billions of euros in European Union financing. In other corners of the market, Bitcoin edged lower to about $71,200. European natural gas prices surged in early Asia trading on Monday. Dutch Title Transfer Facility futures jumped as much as 18% to €51.30 a megawatt-hour. Gold slipped 0.6% to about $4,720 an ounce as higher oil prices fueled expectations interest rates will stay elevated, weighing on non-yielding assets such as bullion. Gauging how markets will react to headlines from the Middle East has been a fraught process since the conflict erupted at the end of February. Big swings have been common as the US and Iran postured for negotiating advantage. Some analysts said the scale of market reaction may be limited if investors take the view that the talks represent a negotiating tactic that will eventually lead to a solution for the seven-week conflict. Adding to the potential for turbulence, first-quarter earnings season is about to start in the US, with analysts projecting S&P 500 profits will rise about 12% from a year earlier, the weakest since the second quarter of 2025. Goldman Sachs Group Inc. kicks off the US reporting season on Monday. Investors are eager to hear what corporate leaders have to say about the mounting risks, which include hotter inflation as a result of the surge in oil, and the threat that consumers start to pull back. Data on Friday showed US consumer prices jumped the most since 2022, although the core measure was relatively tame, while consumer sentiment slumped. Against that backdrop, higher bond yields are starting to look appealing to some investors. Two-year Treasury yields, most sensitive to Federal Reserve policy expectations, are around 3.85%, up nearly half a percentage point since the war began, while yield premiums on Asian investment-grade dollar notes widened by the most in over a week.
Nikkei -0.77% Hang Seng -1.08% CSI +0.29% Shanghai +0.06% Shenzen +0.53%
Eur$ 1.1687 CNH 6.8317 CNY 6.8331 JPY 159.73 GBP 1.3402 CHF 0.7919 RUB 76.9738 TRY 44.7045 WTI$ 104.40 +8.15% Gold 4,720 -0.62% BTC 70,947 -0.57% ETH 2,192 -0.97%
S&P -0.71% Nasdaq -0.84% EuroStoxx -1.51% FTSE -0.57% Dax -1.57% SMI -0.99%
Macro :
- Trump Says US to Sever Key Iran Lifeline With Blockade of Strait
- US, Iran Officials Hold Direct Talks in Pakistan on Ending War
- Two Supertankers U-Turn in Hormuz as US-Iran Talks Break Down
- If Labour is serious about growth, it must open up the North Sea
- Saudi Arabia Says East-West Pipeline Restored to Full Capacity
- NASA Recovering Artemis Moon Crew After ‘Bullseye’ Landing
- NASA Recovering Artemis Moon Crew After ‘Bullseye’ Landing
- Drone-Destroying Laser Doesn’t Pose Threat to Planes, FAA Says
- Anthropic AI Causing ‘Sense of Urgency’ at White House: Hassett
- Wrong-Way Bets on Oil Had a Star Trader Hundreds of Millions in the Hole -- WSJ
- Switzerland’s Zug becomes bolt-hole for Gulf-based wealth, Small Swiss town is welcoming individuals and companies seeking refuge from war in the Middle East - FT
- Kalshi Wins Reprieve From Arizona Criminal Case at CFTC’s Urging
Keep an eye on :
- ABBV US : Haisco Pharma Signs License Pact With AbbVie for Nav1.8 Project
- BABA US : Michael Burry Buys JD and Alibaba, Adds to Nvidia Puts
- AAL LN : Botswana’s President Courts Oman Amid De Beers’ Control Battle
- Anthropic IPO : Anthropic Offers Security Recommendations & Practical Tips
- AML LN : Aston Martin shares and bonds sink to record lows over cash crunch fears - FT
- BAMI LN : Banco BPM Says No Interest in MCC Unit Banca Del Mezzogiorno
- BNTX US : BioNTech, Duality Meet Mid-Stage Endometrial Cancer Trial Goal
- Colt CZ IPO : Gunmaker Colt CZ Announces Dual Listing on Amsterdam Exchange
- CSGP US : Third Point Gives Up Proxy Fight at CoStar, Sells Stake: Reuters
- CSGP US : Third Point Gives Up Proxy Fight at CoStar, Sells Stake: Reuters
- EWI LN : Edinburgh Worldwide’s Tender Offer Resolution Not Passed
- EQT SS : PolyPeptide Is Said to Attract Takeover Interest From EQT, KKR
- RACE IM : Ferrari Completes First Tranche of EUR3.5 Billion Share Buyback
- GAM SW : GAM Holding AG announces proposed Board of Directors for election at
- GF SW : Georg Fischer Gets Contract Worth ~CHF100m From Brazil’s Sabesp
- GFL CN : GFL Said to Near Deal to Buy Secure Waste for Over $4.3 Billion
- GVS IM : GVS Starts Offer for Up to 23.3 Million Own Shares at €4.30/Shr
- KID NO : Kid ASA Reports 1Q Revenue of NOK 800.5 Million, Compared With FactSet Consensus Estimates of NOK 793.1 Million
- LHA GY : Lufthansa Faces More Strikes With Pilots Set for Stoppage
- NIO US : Founder William Li expressed confidence in 40-50% growth for FY deliveries - Chinese press
- NVDA US : Michael Burry Buys JD and Alibaba, Adds to Nvidia Puts
- Open AI IPO : OpenAI Identified Security Issue Involving Axios
- Open AI IPO : OpenAI Set to Fall Under EU’s DSA, Face Stricter Regulation: HB
- PGHN SW : Partners Group Says Fundraising Strong Despite Market Stress
- PFE US : FDA Warns Pfizer Over Misleading Adcetris Ads
- PIRC IM : Italy to Limit Number of Sinochem Directors on Pirelli Board
- RIO LN : Rio Is Said to Draw Interest for US Critical Mineral Assets
- RSGN SW : R&S Group "FY25 results - confirmed pre-released indications..."
- SAN FP : Sanofi, Regeneron’s Dupixent Gets EU Approval for CSU for Kids
- Space X IPO : Boaz Weinstein Scores Win After UK Trust Backs SpaceX Proposal
- SUN SW : Sulzer 1Q Orders CHF853M Vs. CHF1.02B Y/y
- TGS NO : TGS 1Q Contract Seismic Allocation 26%
- TIT IM : EU Clears €700m Telecom Italia Sparkle Unit Sale
- TSLA US : Tesla Says FSD Supervised Has Been Approved in the Netherlands
- TSLA US : Tesla’s Auto Margin Ex-Credit to Fall to Lowest in a Year: MS
- UNI SM : Unicaja Mulls Consumer Credit Tie-Up With WiZink: Confidential
- UCG IM : UniCredit Has No Plan to Return Russia License, Liquidate Unit
- VAR NO : Var Energi Prelim 1Q Avg Production 406,000 BOE/D
- DG FP : Vinci Record Cash Flow, Leverage Support Bond Resilience in 2026
- WISE LN : Wise 4Q Volume Meets Estimates