Thick plumes of smoke rise above residential areas of the Iranian capital following airstrikes amid ongoing US and Israeli attacks as multiple explosions are heard in the city of Tehran, Iran, March 1, 2026.
Fatemeh Bahrami/ | Anadolu | Getty Images
We hear it all the time on CNBC: Markets hate uncertainty, and the events of the past 48 hours have changed the face of international politics in a way that will have investors around the world scrambling to understand the ramifications.
The coordinated strikes against Iran by US and Israeli forces – Operation Epic Fury – upended the world order in place since the end of World War II and sparked a new political era, not only in the Middle East, but also between international allies and adversaries.
Latest news on US-Israeli strikes on Iran:
How will markets and investors react? What are the knee-jerk reactions to the longer-term adjustments that will need to be made to investment strategies?
Here are some of the assets to watch for during the week.
Clearance in the Middle EastMiddle East stock markets came under pressure on Sunday, in the first stock trading session since the attack. Saudi Arabia’s Tadawul, Oman’s Muscat Index and Bahrain’s bourse all traded in the red, while many other markets in the region did not open. Dubai, Abu Dhabi and Israel indices are expected to resume trading on Monday. The impact is expected to ripple through global markets.
The oil tradeOil markets will be the epicenter of volatility following the attacks. Traders expect the price of Brent crude to exceed $80 per barrel, according to Verisk Maplecroft. This outlook comes despite OPEC’s recent decision to increase production earlier and more than expected.
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Oil prices expected to rise following Operation Epic Fury
Disruption of the Strait of HormuzOil price volatility will be exacerbated by the closure of the Strait of Hormuz. Global shipping companies, including Maersk, MSC, Hapag-Lloyd and others, have suspended all vessel transits on this route until further notice. Iran’s Revolutionary Guards claimed to have struck a number of oil tankers in the Gulf in retaliation. It was unclear when the strait would reopen. Some ships were diverted around Africa, increasing the time and costs of shipping.
Airline chaosAir travel has been heavily disrupted, with almost all airspace in the Middle East region closed since the strikes began. More than 1,500 flights were canceled across the region on Sunday, while flight tracking site FlightAware said more than 19,000 flights were delayed globally. Airlines are expected to remain under pressure as carriers work to reopen their routes and arrange repatriation flights.
AI and IranThe strikes also intersected with the market’s broader focus on artificial intelligence. Until recently, investors focused on AI’s potential to reshape industries around the world. Although this theme may seem far removed from events in Iran, there appears to be an overlap between the two. According to a report from Axios, the US military used Anthropic’s Claude AI technology to support its strikes against Iran, even as the company was blacklisted by the Pentagon on how its technology is used. Anthropic resisted Pentagon demands to allow unrestricted military use of Claude, and the Defense Department moved to label the company a “supply chain risk” over the dispute.
What comes nextWhat the rest of the week will bring remains unclear. President Donald Trump told CNBC Joe Coren that American military operations in Iran are “ahead of schedule”. In a market spooked by uncertainty, it will be the “known unknowns” that will keep investors on their toes.
