Markets Waver on Iran Tensions

Global markets began the week on a mixed note following heightened tensions in the Middle East, as the US launched airstrikes on three Iranian nuclear facilities—Fordo, Natanz, and Isfahan—over the weekend. The escalation raised fears of a broader conflict between Iran and Israel, CE Report quotes Anadolu Agency

US President Donald Trump called the strikes “very successful,” while Vice President JD Vance emphasized Washington’s preference for diplomacy over continued confrontation.

Concerns over a potential closure of the Strait of Hormuz—critical for global oil and LNG transport—intensified after an Iranian lawmaker claimed parliament supports the move, though final authority rests with the country’s Supreme National Security Council. Around a third of global seaborne oil and 20% of LNG pass through this strategic waterway.

Market reaction reflected the geopolitical strain:

• Brent crude rose 1.2% to $76.85; WTI crude increased 1.54% to $75.

• Gold dropped 0.3% to $3,358 per ounce after early gains were erased by US diplomatic signals.

• US stock futures opened lower.

• European markets were cautious amid energy supply concerns.

• Asian indices were mixed: Japan’s Nikkei and South Korea’s Kospi fell 0.2%, while China’s Shanghai Composite rose 0.5% and Hong Kong’s Hang Seng gained 0.37%.

Investors remain focused on developments in the Middle East, especially any moves by Iran regarding the Strait of Hormuz.