Gulf Tensions Ignite Risk-Off Start to Week

Markets kicked off the week with a risk-off tone as tensions in the Gulf escalated over the weekend. The US and Iran exchanged fresh blows, heightening geopolitical uncertainty and prompting a flight to safe-haven assets.

Oil is front and centre as the geopolitical risk premium is being priced in. The ongoing confrontation adds a layer of uncertainty to energy markets, with traders closely watching for further developments that could disrupt supply.

The broader market sentiment reflects caution, with risk assets under pressure. Investors are recalibrating portfolios to account for the increased likelihood of further escalation in the region.