Global markets reacted to geopolitical flare-ups as US-Iran conflict escalated in the Strait of Hormuz, prompting an oil price surge and injecting fresh uncertainty into investor sentiment. Concerns over potential negative payrolls prints also weighed on the macro picture.
Oil prices jumped more than $4 a barrel, with crude topping $94, following US strikes on Iran in the Strait of Hormuz and reports of further attacks. European diesel margins hit record highs amid refinery issues, contributing to food inflation concerns.
The prospect of another negative US payrolls print and potential job creation rebound predictions kept investors cautious on the labor market outlook. Meanwhile, the Bank of Israel hinted at further rate cuts if inflation remains stable, contrasting with Bessent's call for the BOJ to maintain sound policy to avoid yen volatility.
Australia's dollar led major pairs in year-to-date performance. Upcoming earnings from Snowflake, Dell, and Palo Alto Networks are on watch. Markets now look to the full impact of geopolitical events and key economic data releases.