The ongoing conflict involving the U.S. and Israel against Iran is sending shockwaves through Asian financial markets. Rising energy prices and inflation are threatening currency stability and bond yields in the region.
Disruptions to shipping through the strategic Strait of Hormuz are fueling concerns about a spike in crude oil prices. Analysts warn the instability extends beyond the immediate military engagement.
Prediction markets now show a 69.5% probability that the Federal Reserve will deliver zero rate cuts in 2026, up from 69% just 24 hours ago. The chances of WTI crude hitting $110 per barrel in May dropped to 36%, down from 59%, reflecting a volatile outlook.
Investors are watching for statements from Federal Reserve Chair Jerome Powell and former President Donald Trump, as any shift in diplomatic or military strategy could rapidly reset expectations.