The US strike on military targets on Kharg Island has raised concerns in oil markets, as the island handles roughly 90% of Iran’s crude oil exports. Trump said oil infrastructure was intentionally spared but warned that it could become a target if Iran disrupts shipping through the Strait of Hormuz. Analysts say any serious damage to the Kharg export terminal could disrupt Iran’s oil exports and push global oil prices even higher.

The conflict between the United States and Iran has prompted major global central banks, including the Federal Reserve, the European Central Bank, the Bank of Japan and the Bank of England, to approach monetary policy decisions more cautiously this week. Rising oil prices have increased concerns about a new inflation shock, weakening market expectations for interest-rate cuts, particularly in the US. Meanwhile, investors are now even pricing in the possibility of interest-rate hikes in Europe and the UK later this year.

US job openings, according to the BLS report, rose to 6.95 million in January from 6.55 million in December, while layoffs declined. However, hiring did not increase significantly, indicating continued signs of weakness in the labor market. The ratio of job openings to unemployed workers remained at 0.9, reinforcing the Federal Reserve’s view that the labor market is not currently generating strong inflationary pressure.

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.