Geopolitical Tensions Drive Oil Prices Near $90

The weekend's safety trades prompted by fears of Iran's retaliatory strike on Israel have partially reversed as markets remain jittery amid unfolding events. U.S. crude oil prices fell from their pre-weekend highs, and stock markets in Asia were mixed, with U.S. stock futures bouncing back on Monday. The central fear is that an escalating regional conflict could lead to another energy shock and further roil U.S. markets already concerned about inflation and possible Federal Reserve hesitation in cutting interest rates. Gold prices spiked but have largely unwound, and U.S. Treasuries received a safety bid despite inflation concerns. The uncertainty surrounding the Israel-Iran standoff could persist for several weeks, impacting sector rotation and currency movements.