Global markets came under pressure as escalating tensions in the Middle East unsettled investors. Stocks declined broadly, with Asian equities dropping sharply, though US futures showed tentative stabilisation and European futures trimmed earlier losses.
Oil prices surged amid fears of supply disruption, rising significantly this year, while metals such as aluminium also jumped following attacks on production sites. The entry of Iran-backed Houthi forces and an increased US military presence have heightened concerns that what was initially seen as a contained conflict could evolve into a prolonged war, shifting market sentiment toward caution.
Investors are increasingly focused on the economic fallout of sustained high energy prices and geopolitical uncertainty. Safe-haven assets such as government bonds, gold, and the yen gained, while credit risk indicators widened.
Strategists warn that markets may be underestimating the potential for a global slowdown, with some drawing parallels to past economic shocks if energy supply disruptions persist. At the same time, conflicting signals around US–Iran negotiations are adding to volatility, leaving markets sensitive to further developments as they reassess risks and prioritise capital preservation.
There are no major data releases this week, with many bank holidays surrounding Easter.
