Geopolitical tensions are causing disruptions in global markets as Iran’s IRGC Navy announced the closure of the Strait of Hormuz, prohibiting traffic to and from the ports of origin of allies of enemies. This move comes after China launched a probe into US trade measures and green products, sparking concerns over the impact on global trade. Meanwhile, crude prices are holding an upward bias as Iran targets US bases, with weekend risk elevated despite Trump’s comments. Global equities are under pressure, driven by China’s US probe and further energy upside. The DXY currency is firmer amidst geopolitical flare-ups, while the JPY reacts to jawboning. In fixed income, energy prices continue to drive markets, with Spanish CPI jumping but failing to move benchmarks. Looking ahead, highlights include the University of Michigan Consumer Sentiment Final (Mar), as well as speeches from Fed’s Barkin, Daly & Paulson, ECB’s Schnabel. Credit ratings are also in focus, with Fitch Ratings on Switzerland, Moody’s on Italy & Spain, and Scope Ratings on the EU.

Iran’s decision to close the Strait of Hormuz has raised concerns over the impact on global trade, particularly for countries that rely heavily on oil shipments through the strait. The move comes as tensions between Iran and the US continue to escalate, with both sides exchanging threats and warnings. China’s probe into US trade measures and green products has also sparked concerns over the impact on global trade, particularly as the US and China are two of the world’s largest economies.

Crude prices have been holding an upward bias in recent days, fueled by geopolitical tensions and concerns over supply disruptions. The weekend risk elevated despite Trump’s comments suggests that investors are bracing for potential escalation in the region. Global equities are under pressure, driven by China’s US probe and further energy upside. This comes as investors seek safe havens for their investments amidst geopolitical tensions.

The DXY currency is firmer amidst geopolitical flare-ups, while the JPY reacts to jawboning. This suggests that investors are seeking safe havens in currencies perceived as less risky, such as the US dollar and Japanese yen. In fixed income, energy prices continue to drive markets, with Spanish CPI jumping but failing to move benchmarks. This highlights the ongoing impact of geopolitical tensions on commodity prices and the broader economy.

Looking ahead, highlights include the University of Michigan Consumer Sentiment Final (Mar), as well as speeches from Fed’s Barkin, Daly & Paulson, ECB’s Schnabel. Credit ratings are also in focus, with Fitch Ratings on Switzerland, Moody’s on Italy & Spain, and Scope Ratings on the EU. These events will provide insights into the state of the global economy and the potential impact of geopolitical tensions on financial markets.