It seems we’re a long way from Friday’s optimism, as stocks rallied and oil fell to as low as $86 a barrel.
While some way off last month’s highs of $120, brent crude is still around 30 per cent higher than its pre-conflict level.
Stock markets seem to have largely shrugged off the war – the S&P 500 reached a record high last week – even as a peace deal feels further away.
‘Friday’s euphoria has given way to confusion around the status of Hormuz. While Iran has declared it closed, markets seem to be, as ever during this crisis, looking on the bright side,’ says Chris Beauchamp, chief market analyst at IG.
‘US futures are down, and Europe is expected to open lower, but most of the gains are still intact. And oil futures aren’t back to where they were early Friday. If talks do get underway that will help support risk appetite, but this is far from a foregone conclusion that they will even begin right now.
‘A clear way out of the crisis is still impossible to foresee, and meanwhile the energy crisis continues to worsen by the day.’