Markets are swooning, with stocks down sharply after an attempted rally yesterday. Oil is spiking along with the US dollar, while Treasuries, gold, and silver are weaker. Bitcoin and other cryptocurrencies are also taking on water.
The conflict in the Middle East continues to intensify, and so do the market impacts. Israel is now striking Hezbollah targets in Lebanon on top of facilities in Iran. Meanwhile, Iranian counterattacks have expanded to include embassies and energy facilities in the Persian Gulf – including Saudi Arabia’s massive Ras Tanura energy complex.
Crude Oil, Dollar Index Futures (2-Day % Change)
Source: TradingView
Flights in and out of the region are being disrupted, with Emirates suspending Dubai traffic through at least March 4. Total cancellations have now topped 12,300 worldwide. Iran is also reportedly now threatening ship traffic, warning captains not to navigate through the Strait of Hormuz. That helped drive Brent crude oil futures above $85 a barrel today for the first time since 2024.
Meanwhile, Qatar’s Ras Laffan gas processing and export facility was shut down yesterday after drones targeted the site. Qatar supplies about 20% of global Liquefied Natural Gas (LNG), so the move exacerbated price spikes in gas markets worldwide.
As for non-energy markets, the US dollar has been a key beneficiary of the crisis – spiking after several months of languishing near multi-year lows. But US Treasuries have NOT benefitted from “flight to safety” buying. Prices are down and rates are up at the long end of the curve. Gold initially surged, but the rising dollar is now dampening demand for the metal, too.
Finally, on the corporate news front, Elliott Investment Management is targeting Pinterest Inc. (PINS). The activist fund firm will invest $1 billion in the social media platform, helping send its shares higher. Separately, recent Comcast Corp. (CMCSA) spinoff Versant Media Group Inc. (VSNT) said it would buy back $1 billion in stock now that the transaction is over with. Versant operates Comcast’s former media properties, including CNBC, USA, Fandango, and the Golf Channel.
