With the US/Iran conflict disrupting global oil and gas markets, Chris Cheverall, Head of UK, CMC Markets, comments on the broader geopolitical implications and effects on defence stocks.
“Brent crude climbed more than 9% to $77.57 a barrel, after weekend strikes on Iran and reported disruption in the Strait of Hormuz heightened supply concerns. The move reflects a rapid repricing of geopolitical risk across energy markets.
“Broader risk sentiment has been volatile. Bitcoin fell about 4% on the initial headlines before rebounding as reports surrounding Supreme Leader Khamenei’s death fuelled expectations of a potential shift in Iran’s leadership trajectory.
“In US pre-market trading, defence stocks outperformed. Lockheed Martin rose about 10%, while ExxonMobil, Chevron and ConocoPhillips each gained more than 5%.
