Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
As tensions escalate between Israel and Iran, investors are bracing for potential U.S. military involvement and its economic ripple effects. Markets are watching closely as the Trump administration considers joining Israel’s bombing campaign amid ongoing missile exchanges. The recent deployment of B-2 bombers to Guam—capable of targeting Iran’s underground nuclear sites—has fueled speculation, although the move's direct link to the conflict remains unclear.
Energy markets have already reacted. West Texas Intermediate (WTI) crude prices are up 10% this week, while Brent crude hit a five-month high. Analysts warn that a strike disrupting Iranian oil output or closing the Strait of Hormuz could push oil to $130 per barrel, potentially driving U.S. inflation to 6% and eliminating chances for rate cuts in 2025.
Stock markets have remained relatively stable, with the S&P 500 largely unchanged since Israel's initial attacks. However, further escalation could trigger a risk-off sentiment, with potential equity selloffs and a temporary dollar rally due to safe-haven demand. Economists also highlight the risk to global growth already pressured by tariffs and inflation.
Historically, geopolitical shocks have led to short-term stock declines followed by recovery. The S&P 500 fell an average of 0.3% in the three weeks following past Middle East conflicts but rose 2.3% two months later. The dollar may strengthen initially but could weaken long-term if prolonged military engagement triggers nation-building efforts similar to those after 9/11.
As oil volatility surges and investor anxiety grows, markets are increasingly focused on whether—and when—the U.S. will act. A direct intervention could significantly shift global financial dynamics, impacting inflation, interest rates, and broader market sentiment.
