Public Markets 3d Briefing
×Market Turmoil
Oil futures wsj.com pulled back after Trump offered Navy protection for tankers, though the Strait of Hormuz remained near-stalled. Treasury yields bloomberg.com surged as the Iran war reignited inflation fears, with the 10-year yield climbing to its highest since January. Mortgage rates bloomberg.com jumped above 6% as Middle East tensions sparked fresh inflation concerns, ending a brief window of sub-6% borrowing costs.
Energy & Commodities
Jet fuel prices ft.com soared as the Iran war squeezed supply, with more flights resuming across the Middle East despite some refueling disruptions in Oman. Aluminium supply ft.com faced a crunch and shutdowns across the Middle East, threatening a "repricing across base metals" if outages continue. Wheat prices finance.yahoo.com remained mixed at midday as the conflict disrupted agricultural flows.
Aviation & Travel
Heathrow Airport bloomberg.com faced mounting cancellations and parked planes from the war, with the head of London Heathrow Airport calling the Mideast conflict an "operational challenge." Dubai's A380 fleet bloomberg.com scattered across the globe as airspace in the Middle East remained largely closed for civil aviation, highlighting the disruption to Emirates operations.
Corporate & M&A
Blackstone bloomberg.com slashed the value of a private loan to zero, just three months after assessing it at 100 cents on the dollar, marking the second sudden wipeout to recently hit its portfolio. Greg Abel ft.com initiated Berkshire Hathaway's first share buyback of the post-Buffett era as the company's cash holdings reached a record $373 billion. Rolls-Royce ft.com boss was in line for an increased £18 million annual pay package, already sitting on a paper gain of more than £100 million from shares received when joining the engine maker.
Technology & AI
OpenAI investing.com unveiled Symphony, which may shift AI beyond chat, according to UBS. Iranian strikes yahoo.com on Amazon data centers highlighted the industry's vulnerability to physical disasters. AI risks bloomberg.com were exposed by the Middle East war, with experts warning about the technology's potential vulnerabilities in conflict scenarios.
Financial Markets
Emerging markets bloomberg.com investors haven't lost faith despite the Middle East conflict roiling riskier assets, according to Bank of America strategists. Asian government bonds wsj.com sold off as the Middle East conflict stoked inflation fears, with investors bracing for faster interest-rate increases. JPMorgan's leveraged finance event bloomberg.com was jolted by the war reality check, as unease about the roughly $3 trillion leveraged finance market already existed before the conflict.
Geopolitics & Policy
European Central Bank President Christine Lagarde bloomberg.com urged global leaders to find a "basic code of conduct" to work together at a time when technological innovation needs cooperation. Germany secured a US sanctions exemption ft.com for a Rosneft refinery, sparing Berlin from the risk of major fuel supply disruptions. UK Chancellor Rachel Reeves bloomberg.com said the Office for Budget Responsibility forecast she would meet her key fiscal rule to cover day-to-day expenditure with tax revenues in 2029/30.
Supply Chain & Trade
Shipping companies ft.com struggled to reroute vessels as disruption from the Middle East war started to cause congestion at ports outside the Gulf. Traffic through the Strait of Hormuz bloomberg.com came to a near halt, with Aramco's shift to using the Red Sea route for shipments underscoring the risks associated with the critical chokepoint through which about 20% of global oil trade passes.
Regional Markets
Malaysia's central bank bloomberg.com will likely stand pat on borrowing costs, exercising caution as the Iran war unleashes a fresh wave of uncertainty on the global economy. India sought clarity bloomberg.com from the US on a proposed mechanism to provide insurance for oil tankers and other vessels transiting the Strait of Hormuz. Brazil's EDP bloomberg.com CEO said the energy shock from the war is fueling clean power demand as countries and businesses seek to diversify their energy sources.
Economic Indicators
US initial jobless claims investing.com stood at 213,000, providing a snapshot of the labor market amid the geopolitical turmoil. Japan's investors bloomberg.com sold the largest amount of overseas bonds since 2024 last month, as market watchers scrutinize flows for signs that higher domestic yields were triggering repatriation.
Legal & Regulatory
Trump administration debates ft.com allowing Tencent to keep its gaming investments, with the Chinese company's stakes in "Fortnite" creator Epic Games and other creators facing long-running US security review. Trump said he must be involved investing.com in selecting Iran's next leader, adding another layer to the complex geopolitical situation.