[MARKET ANALYSIS] Stocks suffer a blood bath after Iran conflict entered a second week and oil surged by around 30%

APAC Stocks: Negative

• Asia-Pac stocks sold off heavily with global markets rattled after the Iran war entered into a second week with no signs of abating and as oil prices surged around 30% on continued disruption, with more producers forced to cut output.

ASX 200: -3.5%

• Slumped at the open with heavy losses across all sectors aside from energy due to the oil price surge.

Nikkei 225: -6.5%

• Suffered intraday losses of more than 4,000 points as manufacturers and exporters suffered from the rising energy costs and shipping disruption.

Hang Seng & Shanghai Comp: Hang Seng -2.5% / Shanghai Comp -1.1%

• Chinese markets conformed to the broad risk-off mood with sources tempering expectations for a breakthrough in the upcoming Trump/Xi summit, but with the downside in the mainland somewhat cushioned after firmer-than-expected Chinese inflation data.

US Equity Futures: Lower

• Extended on their post-NFP declines as the Iran conflict and surge in oil spooked markets.

European Equity Futures -3.1%

• Indicate a much lower cash market open with Euro Stoxx 50 futures down 3.1% after the cash market closed with losses of 1.1% on Friday.

The ongoing conflict in Iran is creating significant turmoil in the markets, with stocks across Asia suffering heavy losses as oil prices surge by around 30%. This geopolitical tension is contributing to rising costs for manufacturers and exporters, adding pressure to an already fragile economic outlook, and is likely to weigh on global sentiment as it unfolds further.