Market Overview - US stock futures are trading muted, with Dow futures down by 21 points or 0.1%, while S&P 500 and Nasdaq 100 futures slipped 0.1% and 0.2% respectively, following a new low for the Dow Jones index in 2026 [1][2] Oil Market Impact - Oil prices surged nearly 8%, with Brent crude trading over $114 per barrel and US WTI around $97 per barrel, following Iranian missile strikes on Ras Laffan, which halted operations at a facility responsible for about 20% of global LNG supply [3][4] - The disruption in LNG supply led to a more than 35% increase in European gas prices, contributing to volatility in energy markets [4] Federal Reserve Actions - The Federal Reserve held interest rates steady on March 18, maintaining the benchmark federal funds rate in the 3.5%–3.75% range, with a 10-2 vote in favor of this decision [4][5] - The Fed revised its inflation outlook upward, projecting a preferred gauge at 2.7% by the end of 2026, and indicated only one rate cut for the year in the updated dot plot [5] Company-Specific Developments - Micron experienced a sharp sell-off, down over 6% in pre-market trading despite beating Wall Street estimates and posting record revenue, as the company announced an increase in its 2026 capital spending plan [7] - Alibaba reported a revenue of 284.8 billion yuan for the December quarter, missing estimates, with net income plunging 66% year-over-year, indicating significant investment in AI at the expense of near-term profitability [8] Global Market Sentiment - Investor sentiment turned negative globally, with European markets dropping more than 2% amid escalating conflict in Iran, and tech stocks in Asia, including SK Hynix and Samsung Electronics, also saw declines of 2.23% and 1.8% respectively [9]

Group 1: Market Impact of Conflict - The conflict is expected to have a "sharp but short-lived" impact on oil and gas prices, according to George Lagarias, chief economist at Forvis Mazars [2] - Oil prices have increased by 30% since last December, with Brent crude oil rising almost 10% to just under $80 a barrel and US WTI up 9% to just over $73 a barrel [3][6] - UK natural gas prices have surged by 25% to 98.5p per therm, nearing spikes seen in January, which were the highest in 10 months [7] Group 2: Stock Market Reactions - The FTSE 100 index dropped 82 points to 10,828 at the start of the week, driven down by airlines, hotels, banks, and retailers [10] - British Airways owner IAG experienced the largest decline, falling by 9.78%, followed by Informa down 6.7% and IHG down 5.3% [10][11] - Defence companies saw gains, with BAE Systems rising 6.9%, and oil and gas producers Shell and BP both increasing by over 5% [12] Group 3: Commodity Price Movements - Gold prices increased by 2.4% to above $5,400 an ounce, while silver rose by 1.7% to $95.4 per ounce [8] - Copper prices decreased by 0.7%, with coal and steel also down, and iron ore remaining flat [9] Group 4: Regulatory Developments - The Competition and Markets Authority has initiated an investigation into Intercontinental Hotels, Hilton, and Marriott for suspected sharing of sensitive commercial information [14]