MARKET WRAPS
Stocks:
European shares fell as investors reacted to fresh U.S. and Iranian threats to energy assets in the Middle East.
The Europe-wide Stoxx 600 index fell as all sectors declined while Germany's DAX slid led by oil-sensitive industrial stocks falling sharply. The U.K.'s FTSE 100 and the French CAC 40 were also down.
Gold plunged more than 7% while oil prices rose as the U.S. and Iran threatened to widen their targets and escalate the war, with Trump giving Tehran a deadline to reopen the Strait of Hormuz.
"With production and exports heavily constrained, investors are sensitive to any threats to supply that could drag on the post-conflict recovery," BMI said.
Danske Bank said the energy price shock could become permanent if oil infrastructure is hit. However, if the U.S. can take control of the Strait, it would be positive for risk sentiment.
The European Central Bank kept interest rates unchanged at its March meeting but signaled a readiness to raise rates if high energy prices cause a jump in inflation.
Morgan Stanley now expects the ECB to raise rates by 50 basis points in 2026 , in June and September, but to unwind those hikes in 2027. Money markets currently price in three ECB rate increases this year, according to LSEG.
Economic Insight
Investors are awaiting provisional purchasing managers' surveys for March from France, Germany and the eurozone due on Tuesday, and several confidence surveys expected during the week.
"Whilst the February [eurozone PMI ] report pointed to signs of rising demand and improved optimism, developments in the Middle East threaten to undermine the pickup in activity," Investec said.
U.K. consumer-price inflation data for February is also expected on Wednesday.
Shares on the Move
London's miners fell in opening trade as inflation fears caused metal prices to tumble. Precious metal miners Hochschild Mining, Fresnillo and Endeavour Mining were all down.
U.S. Markets:
Stock futures were pointing to another day of steep declines, with war in the Middle East now in its fourth week and the prospect of further escalation hanging over markets.
Forex:
The dollar rose as the intensifying Middle East conflict boosts safe-haven assets and energy prices.
The greenback is likely to strengthen further if the energy price shock stemming from the Middle East conflict intensifies, MUFG Bank said.
The euro fell. The currency is at risk of falling further despite speculation that the European Central Bank could raise interest rates in April, ING said.
Sterling also declined. Market pricing for Bank of England interest-rate rises looks overdone and this poses a risk to sterling, Monex Europe said.
Bonds:
Eurozone government bond yields jumped , tracking Treasury yields, as the ever-lengthening war in the Middle East exacerbates investors' inflation concerns.
Eurozone inflation-linked government bonds have proved to be a "veritable bulwark" against the abrupt price slide that the outbreak of the Iran war triggered on the global bond markets, LBBW said.
Treasury yields rose across the board, with the 10-year yield rising to its highest level since July 2025, before slightly easing from that level, according to Tradeweb data.
Morgan Stanley strategists advocate a neutral position on Treasurys until there is better clarity on how the Middle East conflict impacts the economy as well as the Federal Reserve's rate path.
Energy:
Oil prices rose as the U.S. and Iran threatened to widen their targets and escalate the war, with Trump giving Tehran a deadline to reopen the Strait of Hormuz.
If oil prices rise to $120 a barrel, it could pose meaningful risks to Asia's growth, Morgan Stanley said.
Gas
European natural-gas prices rose as the war in the Middle East enters its fourth week, with the U.S. and Iran exchanging fresh threats over the Strait of Hormuz and energy infrastructure.
Prices have surged more than 90% so far this month, driven by halted shipping through the Strait of Hormuz and severe damage to the world's largest liquefied-natural-gas export facility in Qatar.
Metals:
Gold prices fell to their weakest level this year as the Middle East conflict escalates, raising concerns over inflation and prospects of higher interest rates.
The precious metal's huge weekly decline and its break below key support levels signal possible further weakness , based on technical analysis, UOB Global Economics & Markets Research said.
Gold's ongoing pullback may offer "staggered" long-term accumulation opportunities at lower levels, Phillip Nova said.
Copper
Copper fell in early trade. However, the base metal's lower prices could be short lived, as lower costs could boost stronger demand in China, ANZ said.
Iron
Iron ore rose in early trading. The current surge in prices is due to a structural inventory shortage, Nanhua Futures said.
EMEA HEADLINES
The Top Iranian Diplomat Who Says He's in No Mood to Talk
BERLIN-After strikes that decimated much of Iran's leadership, the country's top diplomat has become the chief messenger of a regime that says it won't negotiate.
Abbas Araghchi, 63 years old, has long been known in Western diplomatic circles as the lead negotiator, resisting pressure to accept strict limitations on Iran's nuclear program. Now, with much of Iran's leadership in hiding or dead, he is the most prominent voice of a government refusing to be cowed by the U.S. and Israeli military campaign.
Danone to Buy Nutrition Company Huel
Danone said it agreed to acquire nutrition company Huel, as the French food company seeks to ramp up its presence in the wellness segment.
The maker of Activia yogurt and Evian water said Monday that it entered into a definitive agreement to buy Huel, subject to closing conditions.
Polish Inflation Holding Near Target Despite Iran War, Gov. Glapinski Says
Earlier this month, Poland's central bank went against the grain.
As investors jettisoned expectations for rate cuts across major European economies following the outbreak of war in Iran, the National Bank of Poland lowered borrowing costs, underscoring its confidence that inflation will remain contained despite rising risks.
Poste Italiane Unveils $12.50 Billion Offer for Telecom Italia
State-controlled postal service Poste Italiane has made a $12.50 billion offer to acquire Telecom Italia.
The postal-services company said Sunday that it was offering a combination of cash and shares, with Telecom Italia shareholders to receive 16.7 euro cents in cash and 0.0218 newly issued Poste Italiane shares for each share held.
GLOBAL NEWS
Larry Fink's Warning: Invest or Risk Getting Left Behind by AI
Larry Fink said that investing is the best hedge Americans can make against the predicted economic disruption wrought by advances in artificial intelligence.
The 73-year-old BlackRock chief executive called AI "the most significant technology since, at least, the computer," while admitting its potential long-term effects on the nation's labor market is an "enormously important question." For everyday people, owning a piece of top companies through investment is crucial, Fink argued in his annual letter to shareholders.
Renewed Geopolitical Risk Puts Yen Back in Intervention Danger Zone
TOKYO-Foreign-exchange markets are back on yen intervention watch, as the worsening conflict in the Middle East stokes anxiety about Japan's energy-dependent economy.
President Trump's threat that the U.S. will attack Iran's power plants if the country doesn't fully reopen the Strait of Hormuz-a key energy shipping route-sparked safe-haven demand for the dollar over the weekend, renewing pressure on the yen.
The Housing Bargain Hiding in Plain Sight
Investors with a stomach for political risk can get 30% off the price of U.S. homes right now.
That is the discount on the portfolios of Wall Street landlords who are being threatened with eviction from parts of the housing market. Shares in Invitation Homes and American Homes 4 Rent, who together own around 140,000 single-family homes, are trading well below the value of their assets, according to real-estate research firm Green Street.
LaGuardia Airport Closed After Runway Collision That Killed Two Pilots
New York City's LaGuardia Airport was closed Monday after a passenger plane collided with an emergency vehicle on the runway, killing two pilots, authorities said.
An Air Canada Express plane arriving from Montreal collided with a firefighting vehicle late Sunday, according to the Port Authority of New York and New Jersey. The Federal Aviation Administration implemented a full ground stop at the airport until Monday afternoon.
The Iranian Prisons Where Bombs Are Threatening Dissidents and Americans
Lindsay Foreman was hunched over the landline in Ward 7 of Tehran's Evin prison, telling her son Joe that the U.S.-Israeli bombing campaign had started. Warplanes had been circling above the Iranian capital all morning and the rumble of explosions had sent prisoners scurrying beneath their metal-framed bunks.
"It's begun," said the British mother of two, arrested a year ago on a motorcycle trip with her husband for espionage charges she denies.
Lawmakers to Introduce Bipartisan Bill Banning Sports Bets on Prediction Markets
A bipartisan pair of U.S. senators are introducing legislation Monday to prohibit entities regulated by the Commodity Futures Trading Commission, including prediction-market exchanges Kalshi and Polymarket's U.S. platform, from listing contracts related to sporting events.
"The CFTC is greenlighting these markets and even promoting their growth, " Sen. Adam Schiff (D., Calif.) said. "It's time for Congress to step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty and offers no public revenue."
Trump, Tehran Exchange Threats
Iran said it would target critical infrastructure if President Trump follows through on his weekend threat to "obliterate" the nation's power plants if Tehran didn't reopen the Strait of Hormuz within days.
The escalating rhetoric set off alarm bells across the Middle East, with oil-exporting Gulf countries saying that Iranian reprisals could further endanger the world economy.
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(END) Dow Jones Newswires
March 23, 2026 06:59 ET (10:59 GMT)
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