Public Markets 8-Hour Briefing
×Oil Market Turmoil
Oil futures fell in early Asian trade after Treasury Secretary Bessent unveiled a stopgap measure to ease pressure from what he calls Iran's attempt to "take global energy hostage." Brent crude could cross $100 if the Strait of Hormuz remains closed for several weeks, according to Goldman Sachs' Samantha Dart. The Strait of Hormuz closure has halted oil tanker transit, with the US lacking the firepower to provide $350 billion in coverage needed to revive shipping. Saudi Arabia raised oil prices to Asia by the most since August 2022 as the Middle East conflict roils markets.
Asian Market Response
Asian equities fell on Friday, putting markets on track for their worst week in six years as the protracted Middle East conflict drove a broad risk selloff. Most Asian currencies strengthened against the dollar in early Asian trade amid a possible technical recovery. Asia's $8 trillion in foreign-exchange reserves are giving central banks more firepower to defend their currencies as energy prices surge. China's yuan financing hit record levels of $200 billion as the country's currency internationalization efforts bear fruit.
US Market Impact
The Dow Jones Industrial Average turned negative for 2026 as the ongoing conflict roils the old-economy gauge. US stock futures steadied after Wall Street extended its selloff on the oil spike. Bond investors are scouring jobs data to gauge the Fed path amid the oil shock, with a surprise in the monthly US jobs report potentially upending expectations for Federal Reserve interest rates. The dollar is heading for its best week in more than a year after the US strike on Iran triggered a flight to safety.
Gold and Safe Havens
Gold was on track for its first weekly loss in more than a month, pressured by a stronger US dollar and inflationary risks tied to the ongoing war in the Middle East. Traditional safe havens — Treasuries, the yen, the Swiss franc, and gold — have offered investors no refuge this week. Gold edged higher in early Asian trade on a possible technical recovery after front-month futures fell 1.1% overnight. Gold holdings hit a 16-week high as risk-off sentiment grew despite the stronger dollar.
Energy Security Concerns
India's energy conundrum deepens as Middle East war hits supply, forcing the country to secure alternative oil and gas sources. The Philippines is looking at ways to save energy as tensions in the Middle East push global fuel costs higher, suggesting people use air conditioners less. Brazil's Petrobras surpassed profit expectations after robust oil production and record exports helped cushion the impact of weaker crude prices. The US Strategic Petroleum Reserve remains depleted, leaving the country exposed as Iran war pushes up prices.
Corporate Developments
Food & Life Companies fell the most in more than three months after Chinese authorities inspected one of its Sushiro outlets in Beijing over suspected food contamination. Nike will record a $300 million charge from cost-cutting efforts primarily associated with employee severance costs. Gap faces further pressure from declining Athleta sales, with same-store sales falling 10% in the fourth quarter. Marvell Technology raised its sales view as AI developers spend on data centers, now expecting full-year revenue to grow more than 30% to approach $11 billion.
Geopolitical Developments
President Trump called on Iranians to take back their country, saying any member of the military can give up and accept immunity. Iran's foreign minister said the country is not asking for a ceasefire despite Trump's claims that Iran wants to "make a deal" to end the war. China is pushing Iran for safe passage through the Strait of Hormuz as the conflict threatens global energy supplies. The Pentagon notified Anthropic it's deemed the firm a supply-chain risk amid growing AI security concerns.
Regulatory and Legal
The SEC ended its lawsuit against crypto billionaire Justin Sun, with a firm affiliated with him paying $10 million. The FDA is under fire from lawmakers for recent delays and rejections of new drugs for rare diseases. The FCC is floating rules requiring companies to offer US-based customer service representatives and cap overseas call volumes. US regulators said banks won't face extra capital charges on tokenized securities.