Market Commentary: Monday 2nd March

Stocks sold off and oil prices jumped as conflict in the Middle East jolted global markets, triggering a broad retreat from risk assets.

US–Israeli strikes on Iran resulted in the killing of Iran's Supreme Leader, Ayatollah Ali Khamenei. In addition to Khamenei, several other senior officials were killed, including Iran's army chief of staff, General Abdol Rahim Mousavi, and Defence Minister General Aziz Nasirzadeh.

US President Donald Trump said the bombing campaign against Iran will continue until its objectives are achieved. He called on the nation’s leaders to capitulate, even as reports indicated that at least one top official in Tehran sought to resume nuclear talks with the US. Trump said he has agreed to talk with Iran’s new leadership.

The USD gapped higher at the open, along with metals and oil, and has continued to trend in that direction as markets digest the news. Oil surged about 8% to over $78 a barrel, with traders remaining focused on the status of the Strait of Hormuz — which is now effectively closed — as the waterway is crucial for the global flow of oil.

Spot gold rose over 2% and is now trading around $5,410 an ounce. The Bloomberg Dollar Spot Index gained 0.5%.

**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.