Overview
- Iranian missiles and drones hit Qatar’s Ras Laffan LNG hub and facilities in Saudi Arabia and Kuwait after an Israeli strike on Iran’s South Pars field, with tanker traffic through the Strait of Hormuz largely restricted.
- Brent crude spiked to $118–$119 before easing near $112–$115, European gas benchmarks jumped more than 30%, and the Brent–WTI spread widened to one of its largest gaps in years.
- The Federal Reserve kept rates unchanged and lifted its 2026 PCE inflation forecast to 2.7%, cautioning that the economic impact of the Middle East conflict remains uncertain as markets push back expectations for policy easing.
- Global equities sold off with sharp declines in Asia and Europe and U.S. indexes extending losses, while even gold and silver fell as rising energy costs tightened financial conditions.
- Bitcoin slid below $70,000 alongside risk assets, and crypto-linked shares weakened, while crypto exchange Kraken paused IPO plans citing difficult market conditions.