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  • Gold climbs more than 2% as Middle East escalation fuels safe-haven buying

    Gold climbs more than 2% as Middle East escalation fuels safe-haven buying

    Gold prices rose sharply by more than 2% during Asian trading on Monday as investors turned to safe-haven assets following large-scale military strikes by the United States and Israel against Iran that resulted in the death of Supreme Leader Ayatollah Ali Khamenei.

    Spot gold gained 2% to $5,380.55 per ounce by 01:33 ET (06:33 GMT), after earlier touching an intraday peak of $5,393.34 — its highest level since late January.

    U.S. gold futures advanced 2.8% to $5,391.46.

    Middle East escalation drives haven demand

    Markets reacted strongly to the sharp increase in geopolitical tensions over the weekend. The killing of Iran’s most senior political and religious figure intensified fears of a broader regional confrontation and raised concerns about potential disruptions to oil shipments through the Strait of Hormuz, one of the world’s most important energy transit routes.

    Israeli forces launched a fresh round of attacks on Tehran on Sunday, deploying missiles and aircraft against command centres and air defence systems. Iran responded with additional missile strikes targeting Israeli territory as well as U.S. military installations across the Gulf region.

    The geopolitical shock prompted a widespread risk-off move, with global equities declining and oil prices surging, reinforcing gold’s appeal as a defensive asset during periods of uncertainty.

    “A regional spillover or disruption to energy supplies would materially boost gold through higher oil prices, increased inflation expectations and contained real yields,” ING analysts said in a note.

    Analysts point to key resistance levels

    Michael Brown, Senior Research Strategist at Pepperstone, highlighted $5,400 per ounce as an important near-term level to watch, followed by the late-January record high of $5,595 per ounce.

    “This weekend’s developments do reinforce the strong fundamental bull case for gold, which will remain the beneficiary of haven inflows in an increasingly uncertain world, with hefty retail and reserve demand both providing tailwinds too,” he said.

    Brown added that gold could potentially approach the $6,000 per ounce mark before the end of the year.

    Gold has gained nearly 25% since the start of the year, supported by geopolitical uncertainty, sustained central bank buying and expectations that the Federal Reserve may ease monetary policy.

    Among other precious metals, silver rose 1.3% to $95.15 per ounce, while platinum increased nearly 1% to $2,389.11 per ounce.

    Benchmark copper futures on the London Metal Exchange edged up 0.3% to $13,411 per tonne, while U.S. copper futures rose 0.2% to $6.07 per pound.

  • Silver market deficit expected to persist near term, analyst says

    Silver market deficit expected to persist near term, analyst says

    Silver is likely to remain in a structural supply shortfall over the coming year, supported by firm investment demand and historically tight inventories, according to RBC Capital Markets, although the firm continues to favour gold over a longer investment horizon.

    “Silver is entering its eighth deficit year with inventories at an all-time low and investment demand showing no signs of abating,” RBC analyst Marina Calero wrote in a research note, adding that conditions in the physical market are unlikely to normalise quickly.

    Calero pointed out that the silver market finished 2025 with a deficit of 242 million ounces (Moz) and is projected to stay undersupplied through 2026.

    While elevated prices could prompt some adjustment, she expects only modest relief. Higher secondary supply and softer demand from jewellery and silverware segments may narrow the deficit by roughly 50Moz, but this reduction would still leave the market in shortage.

    Mine output is also unlikely to increase meaningfully in the short term due to permitting constraints, aging mining assets and a limited pipeline of new discoveries, Calero said.

    She added that macroeconomic conditions remain supportive for investment flows, highlighting the presence of the “right macro ingredients” — including a weaker U.S. dollar, continued appetite for real assets and more accommodative monetary policy.

    Calero expects the gold-to-silver ratio to hold near 60–65x over the next several years as tight supply conditions persist. However, she adopts a more cautious medium-term stance on silver, citing growing risks of industrial demand erosion, particularly within the solar industry.

    Industrial demand “remains the biggest question mark,” Calero said. Industrial applications accounted for about 60% of total silver consumption in 2025, and silver now represents roughly 30% of average solar cell production costs, encouraging manufacturers to accelerate substitution and material efficiency efforts.

    Despite supportive near-term fundamentals, RBC ultimately prefers gold producers. Still, the firm said silver-related equities “remain attractively valued compared to the broader market,” even though many stocks already reflect optimistic assumptions for silver prices.

    “With solar accounting for 17% of the total demand (c.190Moz of demand in 2025) a silver-free solar technology could be the final cure to high prices,” the analyst wrote.

    In terms of stock selection, Calero identified Hochschild Mining and Coeur Mining among her top picks, while Wheaton Precious Metals and OR Royalties are favoured within the royalty segment.

    “Silver equities’ premium to gold producers is above the historical average, with producers in our coverage pricing in $100/oz, and royalties at $144/oz, above spot levels of $90/oz. Valuation, coupled with our higher expected upside in gold, leaves us favouring pure-gold producers,” she wrote.

    Even so, Calero noted that silver equities continue to screen attractively relative to the wider equity market despite recent underperformance compared with the underlying metal.

  • Futures sink and oil rallies as Middle East tensions escalate — key market drivers: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Futures sink and oil rallies as Middle East tensions escalate — key market drivers: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures signalled sharp declines after large-scale airstrikes by the United States and Israel against Iran heightened fears of a broader regional conflict. The escalation sent oil prices higher and prompted investors to shift away from risk assets toward traditional safe havens such as gold. Asian equities also moved lower, pressured by uncertainty surrounding artificial intelligence developments and their potential impact on the technology sector.

    Futures fall sharply

    U.S. stock futures dropped significantly on Monday as markets reacted to the joint U.S.-Israeli attacks on Iran and growing concerns that hostilities could spread across the wider Middle East.

    At 02:54 ET, Dow futures were down 733 points, or 1.5%, S&P 500 futures had fallen 104 points, also 1.5%, and Nasdaq 100 futures declined 463 points, or 1.9%.

    The coordinated strikes carried out on Saturday targeted multiple Iranian locations and reportedly killed several senior Iranian figures, including Supreme Leader Ayatollah Ali Khamenei. U.S. President Donald Trump urged Iranian opposition groups to challenge the country’s long-standing governing system, although many senior U.S. officials remain doubtful that regime change is imminent, according to Reuters.

    Uncertainty remains over how long Washington intends to stay militarily engaged. Trump told the New York Times that operations could continue for “four to five weeks.” He also declined to outline a detailed plan for political transition in Iran, saying he has “three very good choices” to lead the country but “won’t be revealing them now,” the New York Times reported.

    Iran responded with retaliatory strikes targeting locations across the Middle East, including energy-producing Gulf states. Media reports citing U.S. Central Command said three American service members were killed and five seriously injured, while Trump warned that additional casualties could follow.

    Indications that the conflict may be expanding emerged as Israel struck Hezbollah targets in Lebanon. The Wall Street Journal also reported that at least one U.S. aircraft had been downed in Kuwait.

    Oil surges on supply disruption fears

    Oil markets rallied strongly following the escalation, as traders weighed the possibility that Iran could attempt to block the Strait of Hormuz — a critical shipping route responsible for roughly one-fifth of global oil supply and about 20% of worldwide liquefied natural gas flows.

    By 03:24 ET, Brent crude futures had jumped 10% to $80.14 per barrel, while U.S. West Texas Intermediate crude futures climbed 9.3% to $73.26 per barrel.

    Although Tehran has not officially closed the strait, Reuters reported that maritime tracking data shows tankers beginning to accumulate on both sides as operators grow concerned about potential attacks or face difficulties securing insurance coverage.

    A sustained increase in oil prices could pose risks to the global economy by reigniting inflation pressures and weighing on consumer demand. If the conflict continues for an extended period, costs for fuel, electricity and other energy-related goods may rise further.

    “How sustained any spikes are depends on how long attacks persist,” analysts at ING said in a note to clients.

    “While it is still very early days and the situation is developing at a fast pace, it does not appear that this military action will be quick and short-lived,” like previous U.S.-Israeli attacks on Iran last year, they added.

    Some analysts cited by the New York Times noted that, despite the surge, oil prices remain within historical ranges. A prolonged global supply surplus could help cushion the impact, further supported by OPEC+ plans announced Sunday to modestly increase production next month.

    Gold gains as investors seek safety

    Gold prices rose as investors moved funds into safe-haven assets amid escalating geopolitical risk.

    Spot gold advanced 2.3% to $5,402.31 per ounce by 03:44 ET, while U.S. gold futures climbed 3.3% to $5,418.09.

    “A regional spillover or disruption to energy supplies would materially boost gold through higher oil prices, increased inflation expectations and contained real yields,” the ING analysts said.

    Beyond geopolitical developments, investors are also preparing for a busy week of economic data releases and corporate earnings. The February U.S. jobs report is due alongside results from Broadcom and Target during the first week of March.

    Asian markets decline

    Asian equities also fell, following a weaker close on Wall Street on Friday as concerns over artificial intelligence developments and interest rate expectations weighed on technology shares.

    Hong Kong’s Hang Seng index and Japan’s Nikkei 225 were among the region’s biggest decliners, dropping 2.1% and 1.4%, respectively.

    Alongside geopolitical concerns, technology stocks faced additional selling pressure amid uncertainty about how AI advancements may reshape competition within the sector. Software companies in particular experienced notable losses in February due to fears of increased competition from AI-driven tools.

    Berkshire Hathaway earnings fall

    Berkshire Hathaway (NYSE:BRK.B) reported on Saturday that fourth-quarter operating profit declined nearly 30% year over year, primarily due to weaker insurance underwriting performance.

    In Warren Buffett’s final quarter as chief executive officer, insurance underwriting earnings more than halved to $1.56 billion, while insurance investment income dropped nearly 25% to $3.07 billion.

    The conglomerate also recorded $4.5 billion in impairment charges linked to its investments in Kraft Heinz (NASDAQ:KHC) and Occidental Petroleum Corporation (NYSE:OXY).

    Operating earnings totaled $10.2 billion for the quarter ended December 31, compared with nearly $14.53 billion a year earlier.

    The results included the first shareholder letter written by Greg Abel, Buffett’s chosen successor, who acknowledged that Buffett was “obviously a hard act to follow.”

  • European stocks slide as Middle East tensions escalate; oil prices surge: DAX, CAC, FTSE100

    European stocks slide as Middle East tensions escalate; oil prices surge: DAX, CAC, FTSE100

    European equity markets declined sharply on Monday as global risk sentiment deteriorated following large-scale military strikes by the United States and Israel against Iran over the weekend.

    By 08:05 GMT, Germany’s DAX had fallen 2.5%, France’s CAC 40 was down 2.1%, and the UK’s FTSE 100 dropped 0.8%.

    Middle East conflict weighs on markets

    Stock markets across Asia and Europe traded lower, while U.S. futures signalled further weakness ahead of the Wall Street open after the weekend attacks, which reportedly killed several senior Iranian figures, including Supreme Leader Ayatollah Ali Khamenei.

    Iran responded with strikes targeting multiple locations across the Middle East, including U.S. military bases in the region.

    There were few indications that tensions would ease soon, with U.S. President Donald Trump stating overnight that joint U.S. and Israeli military operations would continue and could extend for several weeks.

    “We will not negotiate with the United States,” Iran’s top security official Ali Larijani said in a post on X on Monday, reinforcing Tehran’s tougher stance after earlier discussions last week about the possibility of a nuclear agreement with Washington.

    Rally momentum at risk

    The market decline followed a strong run for European equities, which had closed at record highs on Friday after eight consecutive months of gains supported by stronger-than-expected corporate results.

    The pan-European STOXX 600 had just recorded its longest monthly winning streak since the 2012–2013 period.

    Although the earnings season is nearing its end, several corporate updates remained in focus on Monday, even as the broader market tone shifted more cautious.

    Smith & Nephew (LSE:SN.) reported a 15.5% increase in annual profit, reflecting progress in its turnaround strategy, which has delivered cost efficiencies and supported growth across business segments.

    Bunzl (LSE:BNZL) posted a 9.8% decline in annual adjusted pretax profit, as weaker trading conditions in its key North American division were compounded by supply-chain disruptions linked to tariffs.

    Galp Energia (EU:GALP) highlighted solid operational performance in 2025, supported by strong cash generation and a resilient balance sheet despite softer oil prices.

    Economic data in focus

    On the macroeconomic front, German retail sales declined more sharply than expected in January, falling 0.9% month on month compared with forecasts for a 0.2% drop, according to data released Monday.

    In the UK, house prices rose 0.3% in February, leaving prices 1.0% higher than a year earlier, according to figures from mortgage lender Nationwide Building Society.

    Investors are also awaiting the final February reading of the Eurozone manufacturing PMI later in the day, which is expected to confirm that the sector returned to expansion last month.

    Oil prices jump

    Oil markets rallied strongly on Monday after Iranian retaliatory strikes disrupted shipping activity in the strategically important Strait of Hormuz.

    Brent crude futures surged 9.6% to $79.85 per barrel — their highest level since January 2025 — while U.S. West Texas Intermediate futures climbed 9.3% to $73.22 per barrel, the strongest level since June.

    The spike followed reports that three oil tankers were damaged while transiting the Strait of Hormuz, a key maritime route linking the Gulf with the Arabian Sea.

    On a typical day, shipments equivalent to roughly one-fifth of global oil demand pass through the strait, carrying crude exports from Saudi Arabia, the UAE, Iraq, Iran and Kuwait.

    A prolonged disruption or closure of the passage could push oil prices significantly higher and create supply shortages for major importing nations such as China and India.

  • FTSE 100 today: UK stocks fall and pound weakens amid rising geopolitical tensions

    FTSE 100 today: UK stocks fall and pound weakens amid rising geopolitical tensions

    UK equities opened lower on Monday while the British pound slipped to around $1.33, as escalating tensions involving Iran, the United States and Israel dampened investor sentiment. Market participants remain sceptical that the current geopolitical flare-up will ease in the near term.

    Recent developments showed U.S. President Donald Trump expressing willingness to engage with Iran’s new leadership, while senior Iranian official Ali Larijani indicated that Tehran is not ready to enter talks with Washington.

    Investors are heading into a busy week in which market direction is expected to be heavily influenced by geopolitical headlines and any indications that tensions could begin to de-escalate.

    “From a market perspective, we see further downside in the coming days. We had lowered our risk profile early last week as we thought that the market was being too complacent around geopolitical risks. We are still happy to remain in the low risk mode and keeping our powder dry. At some point we would be ready to buy the dip, but that some point seems far for now,” according to a Jefferies economist.

    As of 08:14 GMT, the FTSE 100 index was down 0.7%, while the pound weakened roughly 1% against the U.S. dollar to 1.3352. European markets also declined, with Germany’s DAX falling 2.3% and France’s CAC 40 dropping 1.7%.

    UK market roundup

    Smith+Nephew PLC (LSE:SN.) reported fourth-quarter revenue that exceeded consensus forecasts by 1.6%, while reiterating its full-year 2026 guidance despite ongoing market headwinds. The medical technology group delivered underlying revenue growth of 6.2% in the quarter, beating expectations by around 1.5 percentage points. Second-half EBIT margin exceeded consensus by 7 basis points, and earnings per share came in 2.6% ahead of forecasts.

    Bunzl (LSE:BNZL) released full-year results broadly in line with expectations, showing modest improvement in organic growth during the fourth quarter and a slower pace of margin compression in the second half. Revenue grew 3% excluding currency effects, at the top end of its 2%–3% guidance range, while organic growth reached 0.4% compared with flat guidance. Adjusted EBIT declined 7% to £910 million, slightly above the £896 million consensus estimate. Operating margin fell 60 basis points to 7.7%, though the rate of decline eased in the second half, driven by improved performance in North America.

    Oxford Nanopore Technologies PLC (LSE:ONT) issued 2026 revenue guidance below analyst expectations but projected tighter control over operating expenses. The company forecasts revenue growth of 21–25% at constant exchange rates, compared with consensus expectations of 27.5% on a reported basis. Currency movements are expected to create a headwind of around 1.5 percentage points. Operating expenses excluding depreciation and amortisation are expected to rise between 0% and 5%, below the company’s typical annual range of 3%–8%.

    Big Yellow Group (LSE:BYG) confirmed that Chief Executive Jim Gibson will retire on July 20 following the company’s Annual General Meeting, with Chief Operating Officer John Hunter set to succeed him. Gibson, who co-founded the company in September 1998 and has served as CEO since 2003, is widely credited with building Big Yellow into a market leader after launching the business from a small 600-square-foot office in Bagshot.

    Meanwhile, UK house prices edged higher in February, according to Nationwide data. The average property price rose by 0.3%, or £817, to £273,176 on a seasonally adjusted basis, matching January’s increase. On an annual basis, prices were up 1%, or £2,660, compared with February 2025 — a slight acceleration from the 0.99% yearly growth recorded the previous month. Housebuilders have indicated that prices have remained largely stable so far this year.

  • Smith+Nephew tops Q4 forecasts but 2026 outlook highlights acquisition impact and reimbursement pressures

    Smith+Nephew tops Q4 forecasts but 2026 outlook highlights acquisition impact and reimbursement pressures

    Smith+Nephew Plc (LSE:SN.) reported fourth-quarter revenue ahead of market expectations on Monday but cautioned that its 2026 trading profit outlook of roughly $1.3 billion will be affected by a recent acquisition and changes to U.S. reimbursement policies impacting its wound bioactives segment.

    Fourth-quarter revenue reached $1.70 billion, exceeding consensus forecasts by 1.6%, while underlying growth came in at 6.2% — around 150 basis points above expectations. Company-compiled consensus estimates had projected 2026 trading profit of $1.27 billion, compared with management guidance of about $1.3 billion.

    The medical technology group said its acquisition of Integrity Orthopaedics, completed on January 21, 2026, involved an initial payment of $225 million with up to an additional $225 million tied to performance milestones. The deal is expected to slightly dilute trading profit in 2026, be broadly neutral in 2027 and become earnings accretive by 2028.

    The Orthopaedics division delivered its strongest quarterly performance in more than two years, posting underlying growth of 7.9%, ahead of RBC Capital Markets’ 5% forecast. U.S. Knee Implants recorded underlying growth of 3.6%. Management indicated that the first quarter of 2026 could be softer as the company makes strategic adjustments ahead of the planned second-half launch of the LANDMARK Knee System.

    Advanced Wound Management reported underlying growth of 2.8%, falling short of RBC Capital Markets’ expectation of 5.5%. Within the segment, Advanced Wound Bioactives revenues declined 0.2% on an underlying basis against a strong comparison period. The company expects U.S. reimbursement changes affecting its skin substitutes portfolio to create an additional earnings headwind of between $20 million and $40 million in 2026.

    Sports Medicine and ENT delivered underlying growth of 5.2% during the quarter despite a 250-basis-point drag from China. ENT grew 2.3% underlying as the market prepared for the rollout of China’s Volume-Based Procurement programme, which alone reduced growth by 530 basis points. Excluding China, Sports Medicine and ENT expanded by 9.5%.

    For the full year, Smith+Nephew generated revenue of $6.16 billion, representing underlying growth of 5.3% compared with $5.81 billion in 2024. Trading profit increased 15.5% to $1.21 billion, lifting the trading margin by 160 basis points to 19.7%.

    Operating profit rose 20.7% to $794 million, while free cash flow improved to $840 million from $551 million in 2024, supported by a one-off $26 million benefit from a property transaction. Adjusted earnings per share climbed 21% to 102 cents.

    Revenue from China declined to $128 million in 2025 from $210 million the previous year, and tariffs are expected to create an additional headwind of roughly $60 million in 2026.

    Chief Executive Deepak Nath said the company had “transformed Smith+Nephew into a fundamentally stronger business” through its 12-Point Plan, adding that its new RISE strategy was “our roadmap to Reach more patients, unlock new categories through strategic investment, and Execute efficiently.”

    Looking ahead, Smith+Nephew expects underlying revenue growth of around 6% in 2026, with reported growth of approximately 7.8% based on exchange rates as of February 2026. Free cash flow is forecast at about $800 million, and the company reaffirmed its medium-term targets of 6–7% annual revenue growth and 9–10% compound annual trading profit growth through 2028.

    RBC Capital Markets, which maintains a “sector perform” rating and a 1,350 pence price target, said it did not consider the results sufficient to fully support the company’s 2026 outlook, warning of “a material risk of guidance downgrades through the year.”

    The board proposed a final dividend of 24.1 cents per share, bringing the total annual payout to 39.1 cents — an increase of 4.3%. Adjusted net debt to EBITDA stood at 1.7 times at the end of the year.

  • National Grid upgrades earnings growth target to 10% through 2031

    National Grid upgrades earnings growth target to 10% through 2031

    National Grid PLC (LSE:NG.) on Monday unveiled an updated five-year financial framework extending to fiscal 2031, increasing its forecast for underlying earnings per share growth to between 8% and 10% annually while confirming acceptance of the RIIO-T3 regulatory settlement for its UK electricity transmission operations.

    The utility group plans to invest at least £70 billion cumulatively by fiscal 2031, marking a roughly 70% rise compared with capital spending over the previous five-year period.

    The investment programme allocates around £31 billion to UK electricity transmission, £9 billion to UK electricity distribution, £17 billion to regulated activities in New York, £12 billion to regulated operations in New England, and £1 billion to National Grid Ventures. The company expects this spending to support average annual asset growth of about 10% across the group.

    Shares gained 1.6% following the update. National Grid said trading for fiscal 2026 remains aligned with expectations, with analyst consensus currently at 78.3p per share.

    For fiscal 2027, the company projected underlying EPS growth of 13–15%. At the midpoint of 89p, this represents roughly a 3% premium compared with market forecasts.

    “Building on National Grid’s strong track record of delivery, we are expanding our record levels of investment to at least £70 billion by FY31, driving around 10% asset growth and an upgraded underlying EPS CAGR of between 8 and 10%,” said Chief Executive Zoë Yujnovich.

    The revised earnings outlook represents an increase from the company’s previous framework, which targeted annual EPS growth of 6–8% through fiscal 2029. Based on the updated guidance, fiscal 2031 EPS is projected at 120.5p, around 10% above current analyst consensus estimates.

    National Grid also confirmed it has agreed to Ofgem’s RIIO-T3 price control framework, which will govern its UK electricity transmission business from April 2026 through March 2031.

    Over the regulatory period, the company expects to achieve an overall return on equity exceeding 9%.

  • Big Yellow shares edge lower as CEO Jim Gibson confirms retirement plans

    Big Yellow shares edge lower as CEO Jim Gibson confirms retirement plans

    Shares in Big Yellow Group PLC (LSE:BYG) slipped 1.1% on Monday after the self-storage operator revealed that Chief Executive Officer Jim Gibson intends to retire in July.

    Gibson, a co-founder of Big Yellow who has led the company as CEO since 2003, will step down from both his executive position and the board following the company’s Annual General Meeting on July 20, 2026, ending a 23-year tenure in the role.

    The company announced that current Chief Operating Officer John Hunter will succeed Gibson as chief executive. Hunter joined Big Yellow in April 2024 as COO and became a board member in July 2025. Before joining the group, he served as UK COO at HomeServe PLC and held senior leadership positions at Dixons Carphone PLC, bringing more than two decades of experience across the retail and consumer services sectors. He qualified as a Chartered Accountant with Arthur Andersen in 2001.

    Executive Chair Nicholas Vetch said succession planning for the leadership transition has been underway for nearly four years. Gibson co-founded Big Yellow in September 1998 and played a central role in developing the business into a leading UK self-storage company with a market capitalisation of around £2 billion.

  • European energy and defence stocks rise amid escalating Middle East tensions

    European energy and defence stocks rise amid escalating Middle East tensions

    European equity markets headed into a volatile, risk-averse start to the week after U.S. and Israeli forces carried out strikes on Iran, prompting investors to shift toward energy and defence shares while airline and consumer-focused sectors came under pressure.

    Major oil and gas companies recorded notable gains, with BP (LSE:BP.), Shell (LSE:SHEL), Var Energi, Equinor, Galp (EU:GALP), TTE (EU:TTE), and Repsol (TG:REP) advancing between roughly 3.5% and 7% by 08:52 GMT.

    Defence stocks also moved sharply higher. BAE Systems (LSE:BA.) rose more than 7%, Renk Group (TG:R3NK) gained 6.3%, and Hensoldt (TG:HAG) surged 7.5%. Rheinmetall (TG:RHM), Leonardo (BIT:LDO), and Thales (EU:HO) also posted solid increases, climbing between 4% and 6%.

    Monday should see “volatility and selling in tech and cyclicals, and the reason for that is that, because of the actions that we’ve seen, there will be a significant risk that rising energy prices penalizes growth,” said Matt Gertken, chief geopolitical and U.S. political strategist at BCA Research.

    “We should globally see defensives and energy outperform,” he added.

    The renewed escalation in the Middle East has added further upward pressure to oil and gas prices. Market strategists generally expect heightened geopolitical risks to drive investor flows into traditionally defensive sectors such as utilities and healthcare, which historically perform more resiliently during periods of economic uncertainty.

    Conversely, higher-beta growth stocks and economically sensitive sectors — including industrials and financials — may face renewed selling pressure as investors reassess risk exposure.

    Oil futures surged more than 8% on Monday, reaching multi-month highs following the military strikes and Iran’s response.

    Analysts noted that crude prices are likely to stay elevated in the near term as markets assess potential supply disruptions, particularly shipments passing through the Strait of Hormuz, a route responsible for more than one-fifth of global oil transport.

    Citi analysts said in a note they expect Brent crude to trade in an $80–$90 per barrel range in their base case over at least this week, while adding that prices could retreat toward $70 if tensions ease.

  • UK grants Leonardo £1 billion contract for new military helicopter fleet

    UK grants Leonardo £1 billion contract for new military helicopter fleet

    The UK government has awarded a £1 billion contract to Leonardo (BIT:LDO) for the production of a new generation of military helicopters, safeguarding around 3,300 jobs at the company’s manufacturing site in Yeovil, southwest England.

    Under the agreement, Leonardo will deliver 23 medium-lift helicopters for the UK Armed Forces, designed to operate in coordination with unmanned aerial systems, according to government officials.

    The contract is also expected to support future export opportunities, with more than 40% of manufacturing activity set to take place at the Yeovil facility. Officials said the programme positions the UK as a potential production hub for additional international orders.

    Leonardo had previously cautioned that failure to secure the deal could put the country’s last remaining military helicopter assembly plant at risk.

    Defence Secretary John Healey said the agreement would enhance military capability while protecting skilled employment and opening the door to significant export potential for the UK defence sector.