This weekend marked the beginning of a foreseen but still shocking operation in Iran as US and Israeli forces aim to topple the Islamic Regime.
Killing the Ayatollah Ali Khamenei in the first strikes, the battle is still anticipated to last around four weeks, as declared by President Trump and Head of the Department of War Pete Hegseth. Strikes on IRGC facilities and missile launchers are numerous and continuous.
At the same time, the Islamic regime retaliates against US positions across the Middle East, but has also sent missiles and drones against several Arab nations.
This includes the United Arab Emirates, Bahrain, Jordan, Kuwait, and Oman.
Hezbollah, a terrorist organization affiliated with the current Iranian regime, has also joined the conflict by sending drones and ballistic missiles not only to Israel but also to Cyprus, where UK military bases are located. The organization’s leader has been reported to have been eliminated during the Middle Eastern afternoon.
A few themes concerning Markets: a prolonged war affecting risk sentiment amid already chaotic Market conditions, and what happens to the Strait of Hormuz.
This Strait, located between the Arabian Sea and the Persian Gulf, just below Iran, is where more than 90% of Oil flows to Asia. Its closure during the 1970s preceded a global Oil supply crisis, leading to severe price rises and disruptions to international trade; hence, anything happening there could have a severe impact.
Communications and announcements are to be closely tracked to monitor how the conflict advances. The longer it lasts, the more erratic things can become.
Check out our freshly released Podcast episode to learn more.
Let’s dive into the major movers of this tense weekly open.