A new round of strikes has yet to be confirmed, but Middle Eastern stock markets have already fallen.
On Sunday, Egypt’s stock market plunged by around 5% at one point during trading, while Saudi stocks also fell sharply.
The conflict between Saudi Arabia and the Houthis is escalating. Saudi Arabia says it intercepted drones and missiles, while Trump has again not ruled out new action against Iran. Meanwhile, Iran’s military claims it shot down a US drone, and Iran’s foreign minister warned that the Strait of Hormuz will never be the same as it was.
These reports don’t necessarily mean the war will expand imminently, but markets have already started pricing in the risk of escalation.
What markets fear most is not a strike that has already happened, but that no one can be sure what will happen next.
On Monday, watch oil prices first.
If oil prices surge again, the impact won’t be limited to energy stocks—it will also affect inflation, interest-rate expectations, and the valuations of global risk assets.
#Oil #iran #MiddleEast
On Sunday, Egypt’s stock market plunged by around 5% at one point during trading, while Saudi stocks also fell sharply.
The conflict between Saudi Arabia and the Houthis is escalating. Saudi Arabia says it intercepted drones and missiles, while Trump has again not ruled out new action against Iran. Meanwhile, Iran’s military claims it shot down a US drone, and Iran’s foreign minister warned that the Strait of Hormuz will never be the same as it was.
These reports don’t necessarily mean the war will expand imminently, but markets have already started pricing in the risk of escalation.
What markets fear most is not a strike that has already happened, but that no one can be sure what will happen next.
On Monday, watch oil prices first.
If oil prices surge again, the impact won’t be limited to energy stocks—it will also affect inflation, interest-rate expectations, and the valuations of global risk assets.
#Oil #iran #MiddleEast