Geopolitical uncertainty and inflation concerns drive defensive trading, lifting oil and Treasury yields while pressuring equities and currencies.
Global markets shifted to a defensive posture as the US-Iran conflict showed no signs of resolution, extending uncertainty for at least another week. WTI crude oil climbed nearly 2%, nearing $100, while 30-year Treasury yields approached 5%, reflecting persistent inflation worries.
US equity futures signaled weakness, with S&P 500 futures down 0.4% and Nasdaq futures declining 0.6%, led by tech sector losses. The dollar strengthened broadly, pushing EUR/USD to 1.1750 and GBP/USD to 1.3547, while USD/JPY rose to 157.45 after earlier volatility.
Precious metals retreated, with gold falling 0.8% to $4,696 and silver dropping 2.7% to $83.75. The risk-off mood dominated ahead of European trading, with no fresh progress reported in geopolitical or economic developments.