Headlines:Dollar recoups some losses on the day, eyes stay on the Middle East ahead of the weekendUS stocks with their backs against the wall in the final stretch of the weekTrump reportedly mulls occupying Kharg Island to force Iran to reopen Strait of HormuzEU leaders make the rare choice of appointing ​Vujčić as next ECB vice presidentECB hawk says will need to consider April rate hike if inflation outlook sours furtherECB policymaker Villeroy: Potential rate hikes will be decided meeting by meetingMarkets:Brent crude oil up 0.5% to $108.17, WTI crude oil up 0.3% to $94.93CAD leads, JPY lags on the dayEuropean indices set to end the week lower, S&P 500 futures down 0.3%Gold up 0.3% to $4,662, Silver down 1% to $72.20US 10-year yields up 1.7 bps to 4.30%Bitcoin up 0.3% to $70,701The Middle East conflict drags on and we’re set to head into the weekend expecting the same to continue next week. Headline risks remain paramount but there wasn’t too much going on in the session.The only notable news was a report saying US president Trump might be considering a takeover of Iran’s Kharg Island to try and force a reopening of the Strait of Hormuz. It is a risky maneuver if the plan to occupy the island is carried out. So, we’ll have to wait and see.But if anything, it highlights the fact that this war will not really end – at least for markets – until Iran’s stranglehold over shipping through the strait is broken.Oil prices continue to hold higher still but are not acting up too much during the day so far. Brent crude oil is up 0.5% to just above $108 with WTI crude oil up 0.3% to near $95 on the day.The US dollar also bounced back slightly following the losses yesterday. USD/JPY jumped up to a high of 158.90 but is now settling around 158.55, still up 0.5% on the day. Meanwhile, EUR/USD is down 0.2% to 1.1570 even as ECB policymakers speak out about potential rate hikes to come. ECB hawk Nagel even underscored the potential for a rate hike in April, with markets now pricing in ~58% odds of that happening.In the equities space, investors continue to grow more nervous. But for a late rebound in Wall Street yesterday, things could’ve gotten really dicey. And we are starting to see the worries creep in again with US futures down 0.3% and just off lows earlier. The S&P 500 and Nasdaq are eyeing key technical breaks to the downside, so that will be one to watch before the end of the week.Elsewhere, bond yields continue to nudge higher amid ongoing fears about the inflation outlook. 10-year gilt yields are up to 4.93%, its highest since 2008, while 10-year Treasury yields are also nudging up again to 4.30% on the day.As for precious metals, the picture is a bit more mixed today with gold up 0.3% to $4,662 and silver down 1% to $72.20 currently. That follows a late rebound yesterday, which came after an intense selling round before that.It’s setting up to be a hectic end to the week, so keep your eyes and ears peeled for more volatility and headline risks abound. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The dollar’s recent recovery signals a potential shift in market sentiment, especially with geopolitical tensions rising in the Middle East. Traders should be closely monitoring how these developments impact risk assets and safe havens. The looming uncertainty around the Strait of Hormuz could lead to volatility in oil prices, which often correlates with dollar strength. If the dollar continues to gain traction, it might put pressure on commodities and emerging market currencies. Watch for key resistance levels in the dollar index; a break above those could signal further strength. Additionally, keep an eye on U.S. stock performance as they face downward pressure amid these geopolitical concerns. The flip side is that if tensions escalate, we could see a flight to safety, benefiting gold and the yen. Traders should prepare for potential whipsaws in the market as news unfolds, particularly over the weekend when geopolitical developments can shift sentiment rapidly. 📮 Takeaway Watch the dollar index closely; a breakout could signal further strength, impacting commodities and emerging markets as geopolitical tensions evolve.

EU urges halt to energy strikes as Middle East tensions threaten supply.Summary:EU leaders call for moratorium on strikes targeting energy and water facilitiesMove aimed at de-escalation amid Iran conflict and rising global risksLeaders stress protection of civilian infrastructure and international lawConcerns growing over impact on global energy supply and economyEU to reinforce naval missions Aspides and AtalantaStrait of Hormuz security remains a key focus for global oil flowsUS pressures allies to step up maritime security roleEnergy infrastructure risks driving market volatility and inflation (eg. Qatar LNG exports cut 17% after Iranian strikes on key gas facilities. Years to repair.)Supply disruptions could tighten global oil and gas marketsEuropean Union leaders have called for a moratorium on military strikes targeting energy and water infrastructure in the Middle East, as concerns grow over the economic fallout from the ongoing Iran conflict. The appeal came in written conclusions following a summit in Brussels, where leaders emphasised the need to de-escalate tensions and protect critical civilian infrastructure.“The European Council calls for de-escalation and maximum restraint, the protection of civilians and civilian infrastructure and full respect of international law by all parties,” the bloc’s 27 leaders said. They specifically urged a halt to attacks on energy and water facilities, highlighting the systemic risks such strikes pose to regional stability and global markets.The call comes as the conflict increasingly threatens key energy supply routes and infrastructure. The Middle East remains central to global oil and gas flows, and disruptions, particularly around the Strait of Hormuz, have already heightened volatility in energy markets. The water infrastructure angle also underscores the potential for broader humanitarian and economic consequences if escalation continues.EU leaders also signalled a stronger security posture, calling for reinforcement of existing naval missions. This includes boosting the Red Sea mission Aspides and the anti-piracy operation Atalanta in the Horn of Africa with additional assets, aimed at safeguarding shipping routes and maintaining freedom of navigation.The push comes amid pressure from U.S. President Donald Trump on allies to take a more active role in securing the Strait of Hormuz, a critical artery through which roughly a fifth of global oil supply passes. European leaders acknowledged ongoing coordination with regional partners and welcomed increased efforts by member states to support maritime security, though they stopped short of committing to a unified expanded role.From a market perspective, the EU’s call reflects rising concern that continued attacks on energy infrastructure could trigger a sustained supply shock. Any disruption to oil and gas facilities, or shipping routes, risks tightening global energy markets, lifting prices and reinforcing inflation pressures.More broadly, the situation highlights how geopolitical tensions in energy-producing regions are transmitted across global financial markets. Supply risks can drive commodity prices higher, influence inflation expectations, and push bond yields and currencies to adjust in response. This dynamic is already evident as markets react to the evolving conflict and its potential to disrupt critical supply chains.The EU’s intervention signals growing urgency among policymakers to contain the economic fallout, though the effectiveness of the proposed moratorium will depend on broader geopolitical alignment and developments on the ground. This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight The EU’s call for a moratorium on energy strikes is a critical signal for traders navigating volatile markets right now. With tensions in the Middle East escalating, particularly around Iran, any disruption to energy supplies could lead to significant price spikes in oil and gas. Traders should keep a close eye on crude oil futures, especially if prices approach key resistance levels. A failure to stabilize the situation could trigger a rush to safe-haven assets like gold, which has historically reacted strongly to geopolitical tensions. Moreover, the EU’s emphasis on protecting civilian infrastructure suggests that any further escalation could provoke swift market reactions, impacting not just energy stocks but also broader indices. It’s worth noting that while the EU’s stance aims for de-escalation, the underlying tensions remain unresolved. Traders should monitor the situation closely, especially any announcements from OPEC or related entities that could influence supply dynamics. Watch for crude oil prices around recent highs, as a breach could signal a bullish trend, while a failure to break through may lead to a pullback. 📮 Takeaway Keep an eye on crude oil prices; a breach of recent highs could signal a bullish trend amid rising Middle East tensions.