Global markets are reeling from a Middle East energy shock, with Brent crude surging toward $114 following production collapses in Iraq and Kuwait. This spike has reignited inflation fears, pushing the U.S. Dollar Index (DXY) above 99.40 and sending the Euro to a three-month low of 1.1560.

The death of Iran’s Supreme Leader, Ali Khamenei, has initiated a period of profound geopolitical ambiguity, with President Trump characterizing the event as a strategic breakthrough.

Markets remain cautious as renewed US–Iran tensions keep geopolitical risk premiums elevated, particularly in energy and safe-haven assets.

This week, the focus is on the shifting global financial dynamics, led by reports that Russia may pragmatically re-engage with dollar-based systems, despite its prior efforts to de-dollarize, underscoring the dollar’s continued dominance in energy trade and global liquidity.

This week highlights a cautious global backdrop as major central banks stay on hold and markets weigh slowing inflation against fragile growth.

Budget talks remain stuck over spending priorities, border policy, defense, and social programs. 

This week highlights rising geopolitical and policy-driven market risks. Denmark’s move away from U.S. Treasuries signals growing European unease over U.S. governance and dollar reliance.

Global sentiment is heavily influenced by intensifying trade and geopolitical risks. Gold climbed to $4,690 and Silver reached a record $94 following President Trump’s Greenland-related tariff threats against European nations.