The war in the Middle East has entered its second month, intensifying fears of a broader escalation as the U.S. continues its troop buildup and Iran expands its attacks across the region. The sustained conflict has battered global markets, pushing U.S. equities into their fifth consecutive week of losses – the worst losing streak since the Russia-Ukraine war. Wall Street analysts and U.S. government officials are now beginning to seriously consider the prospect of crude oil hitting an unprecedented $200 per barrel. Brent crude is already up a staggering 58% in March, marking its biggest monthly gain on record.
Despite the prevailing economic headwinds from the energy shock, China’s BYD Co. is projecting robust growth, expecting its exports to surpass the 2026 target by more than 15%, highlighting the resilience of its electric vehicle business.
In another sector, French artificial intelligence startup Mistral AI has successfully raised $830 million. The significant funding is earmarked for building AI centers across Europe, underscoring the continent’s drive to enhance its AI infrastructure.
Geopolitically, the leader of Taiwan’s largest opposition party is slated to visit mainland China in April, a move that could potentially de-escalate cross-strait tensions.
Global equity markets reflected the divergent impacts of the ongoing crisis. European stocks traded flat. In Asia, Japan’s Nikkei 225 plummeted 3%, reflecting its significant vulnerability as one of the hardest-hit countries from the current energy shock. U.S. equity futures, however, pointed to modest gains at the open, fueled by a cautious hope for a swift resolution to the war. Brent crude climbed another 2%, reaching $115 a barrel, further tightening the global energy supply.
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