Global markets opened the week on a mixed note amid rising geopolitical tensions following U.S. airstrikes on Iran’s nuclear facilities over the weekend, escalating the ongoing conflict and reviving fears of a broader regional war. The U.S. targeted Iran’s Fordo, Natanz, and Isfahan nuclear sites early Saturday, with President Donald Trump calling the strikes “very successful.” While Vice President JD Vance stressed Washington’s pursuit of a diplomatic solution, fears of a widening conflict and energy disruption have unsettled investors worldwide.
The possibility of Iran closing the Strait of Hormuz—a key oil and LNG transit route—intensified market concerns. Iranian lawmaker Esmaeil Kowsari revealed that parliament had decided on closing the strait, though the final decision rests with Iran’s Supreme National Security Council. Roughly one-third of the world’s seaborne oil and 20% of global LNG pass through this critical chokepoint, with Asian nations especially vulnerable to any blockage.
Market reactions reflected these risks. Brent crude rose 1.2% to $76.85 per barrel, while WTI climbed 1.54% to $75. Gold prices initially surged but dropped 0.3% to $3,358 an ounce after the U.S. reiterated its diplomatic intentions. In the U.S., stock futures fell, reflecting investor anxiety.
European markets opened cautiously lower due to fears of energy supply shocks, especially as economic growth remains fragile. Asian markets were broadly down, except China—where the Shanghai Composite gained 0.5%—on hopes Chinese tankers would be less affected by sanctions. Japan’s Nikkei 225 and South Korea’s Kospi both slipped 0.2%, while Hong Kong’s Hang Seng edged up 0.37%
