The Islamic Republic of Iran has rejected Donald Trump's call for a ceasefire and intensified its missile and drone attacks on the UAE and Saudi Arabia. Following an Iranian drone strike on a fuel tank at Dubai Airport, flights were suspended for several hours, and the key oil port of Fujairah was targeted for the second time in three days. With the Strait of Hormuz remaining effectively closed, Brent crude oil prices have surged past $105 per barrel, pushing the region closer to total chaos as tensions enter the seventeenth day of the war.

Ahead of key central bank meetings this week and with rising tensions in the Middle East, US stock futures edged higher while the dollar index slipped. Following US strikes on Iranian oil facilities on Kharg Island, Brent crude prices surged to $106.50 before stabilizing around $105. Gold fluctuated below $5,000.

Major New Zealand banks have warned that the Iran war will push the country's inflation to 3.6% in the second quarter, exceeding the central bank's 1-3% target range. As a result, investors are now pricing in a possible interest rate hike as early as May. This comes just weeks after the central bank had forecast inflation at 2.3% for the end of the year.

China's official data shows industrial production and investment grew strongly in the first two months of 2026, but this growth is now overshadowed by the escalating Iran war. While retail and infrastructure sectors performed better than expected, surging oil prices and disruptions to international trade have darkened the outlook for Chinese exports. Beijing is now cautiously delaying economic stimulus measures to assess the impact of the Middle East crisis.