Global markets after Iran strikes: oil surges, airlines sink, bonds defy safe-haven playbook

Market Overview - Global markets opened lower due to heightened tensions in the Middle East following U.S. and Israeli strikes on Iran [1] - Asian markets experienced declines, although some losses were mitigated by gains in oil and gold mining stocks, particularly in Australia [2] Energy Sector - Energy prices surged as investors reacted to the risk of a broader Middle East conflict, with U.S. crude oil rising over 8% to $72.57 per barrel and Brent crude increasing about 9% to $79.41 [3] - Tanker traffic in the Strait of Hormuz has slowed significantly due to increased war-risk insurance premiums, with potential implications for oil supply if disruptions last beyond three weeks [4] - Australian energy stocks such as Woodside Energy and Santos saw gains over 6%, while gold miners also advanced over 4% [5] Airline Industry - Airline stocks were the largest losers, with over 50% of global flights to the Middle East cancelled, impacting major Asian airlines [6] - Qantas, ANA, and Japan Airlines all reported losses exceeding 5% despite some airlines not officially cancelling flights [7] Defense Sector - Defense stocks posted modest gains, with Japanese companies like Mitsubishi Heavy Industries and IHI rising over 3% [10] - Analysts favor sectors such as energy, shipping, insurance, and defense in the near term, while remaining cautious on airline stocks [10] Precious Metals - Gold prices increased due to geopolitical uncertainty, with spot gold rising 1.89% and gold futures jumping 1.77% [11] - The demand for gold reflects a shift towards stability amid geopolitical stress, contrasting with the performance of cryptocurrencies [12] Currency and Bond Markets - The U.S. dollar strengthened by about 0.61%, while the yen weakened by 0.57% against the dollar, attributed to Japan's status as a net oil importer [12][13] - U.S. Treasury yields rose, indicating a shift in trader sentiment, with concerns about inflation dominating the bond market [14][15]