Global equity traders braced for a volatile open after the US and Israel attacked Iran, with Middle East markets providing a weekend preview. Saudi Arabia’s Tadawul fell 2.2% and Egypt’s index dropped 2.5%, though oil giant Aramco limited losses. The immediate shift sees capital fleeing riskier assets like airlines and toward traditional havens.

Oil prices are projected to jump 10%-15% when trading resumes, making energy the dominant equity driver. Piper Sandler’s Michael Kantrowitz warned equities will remain under pressure until the oil spike ends. This triggers a broad rotation into defensive utilities and healthcare, while industrials and financials face selling pressure. BCA Research’s Matt Gertken expects global outperformance for energy and defensives.

Major energy producers from Exxon Mobil and Chevron to Shell and BP are set for gains, contingent on Strait of Hormuz disruptions. Defense primes like Lockheed Martin and Rheinmetall also rose on anticipated spending increases. Conversely, airlines from American to Lufthansa tumbled on fuel cost fears and airspace closures. Freight firms face longer routes, while gold miners benefit from safe-haven demand.