US equities fell Monday as Middle East tensions escalated again after Trump signalled no ceasefire extension and Iran threatened action near the Strait of Hormuz. Treasury yields rose on inflation concerns while the US Dollar Index slipped. Oil surged on Gulf disruption fears, and gold gained on safe-haven demand. UK employment data is the main focus today.
📊 Equities
US equities came under renewed pressure on Monday as Middle East tensions escalated again, with Trump signalling he wouldn’t extend the ceasefire and Iran threatening to resume action around the Strait of Hormuz, while also warning of a potential strike on Oman. The Dow led the declines, with the S&P and Nasdaq also lower, though the Nasdaq outperformed the broader market.
🛢️ Oil
Oil was the standout mover as increasingly hostile rhetoric from both the US and Iran raised concerns over a prolonged disruption around the Strait of Hormuz, with Brent and WTI both climbing sharply.
🥇 Gold
Gold also gained on the heightened uncertainty, trading close to recent highs as traders rotated back toward safe-haven assets.
💵 FX & Bonds
Treasury yields pushed higher as traders weighed the potential inflationary impact of further disruption across the Gulf, while the US Dollar Index slipped as safe-haven demand competed against shifting Fed policy expectations.
| Market | Change | Close |
|---|---|---|
| Dow Jones | -0.51% | 53,459 |
| S&P 500 | -0.52% | 7,745 |
| Nasdaq | -0.32% | 26,644 |
| US Dollar Index (USD) | -0.09% | 99.58 |
| US Treasury 2Y | +0.6 bps | 4.175% |
| US Treasury 10Y | +3.0 bps | 4.722% |
| Brent Crude | +2.90% | $91.09 |
| WTI Crude | +2.55% | $84.50 |
| Gold | +0.90% | $4,415.19 |
📌 Today’s Focus
Middle East developments are set to dominate sentiment again today, with the calendar otherwise quiet aside from UK employment data during the European session.
🔹 UK – Claimant Count Change Data
🔹 UK – Unemployment Rate
🔹 UK – Average Earnings Index Data