Global futures markets have risen as tensions between the US and Iran escalate, with investors reacting to potential disruptions in oil supplies and military posturing. The conflict has pushed crude oil prices to multi-month highs, while defense stocks gained traction. Meanwhile, focus remains on the upcoming US Non-Farm Payrolls (NFP) report, which will provide critical insights into labor market health and Fed policy trajectory. The geopolitical risk premium is driving volatility in energy markets, with Brent crude trading above /bbl. Traders are closely monitoring Iran's response to recent US sanctions and possible retaliatory measures. The NFP data, due later this week, could influence Fed rate decisions and USD dynamics, impacting emerging market currencies and commodities. For Gulf investors, the situation presents dual risks and opportunities. Energy sector exposure remains sensitive to regional instability, while the NFP report may affect dollar liquidity in the region. Key watchpoints include OPEC+ production decisions and potential Fed rate cuts. Market participants should prepare for heightened volatility in oil and defense sectors over the coming weeks.

Read full article from source ↗